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
