Cost of Merchandise Sold

invoice

a bill that is enclosed with a shipment of merchandise or that is mailed by the seller to the buyer

robinson patman act

a federal ruling that regulates price discrimination in interstate commerce

back office

a firm that assists vendors with operations, logistics, warehousing, and customer service

buying allowance

a price reduction for buying merchandise during a specified period

discount

a reduction in price allowed by the seller

rebate

a refund of part of the cost of the merchandise

free on board

a shipping term placed before a specific location, such as a factory/origin/store, that location is the point at which title (ownership) to the merchandise changes

slotting allowance

allowance given for stocking a new product

damage allowance

an allowance given to a retailer to compensate for the cost of merchandise that has been returned but cannot be resold

markdown guarantees

an allowance offered by vendors to cover retailers' lost gross margin dollars resulting from retail price reductions

trade allowance

compensation given for stocking or displaying merchandise

factor

financial intermediary that collects vendors' receivables from retailers

vendor

individual or firm from whom retailers buy merchandise, also a resource or a supplier

net payment date

last day on which the buyer can pay for an invoice before it is considered overdue

private label goods

merchandise that carry the retailer's label and are sold exclusively by the retailer

promotional allowances

money given to compensate a retailer for the expense of promoting a product or brand

net terms

notation on invoice which indicates that a cash discount is not allowed

allowance

reimbursement or compensation granted to the retailer by the seller in return for specific services, such as advertising or display

wholesale price

the amount the vendor charges for goods

terms

the conditions of the discount including the cash discount and dating

invoice date

the date on the invoice, which usually is the date the merchandise is shipped

discount date

the last day on which the discount is allowed in the discount period

list price

the manufacturer's suggested retail price, the price or dollar amount to which the trade discount is applied to obtain the billed cost

gross cost

the price shown on the vendor's invoice after deductions for trade and/or quantity discounts, but before cash discounts are taken, also billed cost

net cost

the resulting amount to be paid for merchandise after applying discounts and transportation charges to the billed price

dating

the time limits that apply to paying for merchandise, (1) the last day on which the cash discount is allowed and (2) the last day for payment before the bill is considered overdue