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Chapter 6 Terms and Datings

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Chapter 6 Terms and Datings

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htagle
Copyright
© © All Rights Reserved
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CHAPTER 6

TERMS AND
DATINGS

Lesly Rose Estremos


Jaime Labiaga Jr.
Hanajane Tagle
CHAPTER 6
TERMS AND
DATINGS

Lesly Rose Estremos


Jaime Labiaga Jr.
Hanajane Tagle
LEARNING OUTCOMES

• Know and explain lack of uniformity in


terms.
• List and understand the several factors in
fixing terms; and
• Explain and note terms governing trade
transactions.
ICE
BREAKER
GUESS THE
TERM!
CASH
TERMS
OTHER TERMS

= END OF MONTH
Do you have any idea
2
what is terms and datings ?
TERMS
• is generally governed by the terms of sale,
commonly referred to and indicated on bills or
invoices as "terms".

• terms measure or
specify the credit
period.
DATINGS

• came into wide and popular use to express a


modification of the usual terms, by which the
time of payment is extended on account of
certain circumstances or contingencies.

J A N U A RY F E B R U A RY MARCH APRIL
LACK OF UNIFORMITY IN TERMS
• one is constrained to note very little uniformity in the use
of terms.
• the terms vary in different trades.
• the same trade, business houses sometimes differ in the
terms granted.
FACTORS IN FIXING TERMS
• the nature and the use of the commodity
• the location
• the circumstances of customer
• the purpose behind the purchase
• the credit standing of the buyer
• the regulations enumerated in the codes of fair
practices
THE COMMODITY AS A FACTOR
• generally circumscribe the terms of
sales perishable products, like fish,
vegetables, and poultry are generally
sold on a cash basis, or close to cash
terms.
• in the case of the latter, they are subject
to very short terms.
GEOGRAPHIC CONSIDERATIONS
• the seller should recognize the distant
location of the buyer, and accordingly
make a concession in the matter of
terms.
SEASONAL DATING
• Seasonal nature, it is necessary
to place so called “advanced”
orders or order for later
delivery , to coincide with the
market demand.
TERMS IN RETAIL TRADE
• It may vary from retailer.
• As a common practice buyers are required
to make monthly payments to cover part of
their outstanding obligations.
STANDING OF THE CUSTOMER

• refers to the creditworthiness or their


ability to pay their debts
• Credit risk is always present until
payment is made.

Why is credit standing of the customer an


essential factor in fixing terms?
CASH
TERMS
(COD) (C.B.D.)
Cash On Delivery Cash Before Delivery

• paying for goods when • the seller will only deliver


they are delivered. goods after receiving full
payment for them.
CASH
TERMS

Q. With the rise of online payments, are traditional

cash terms becoming obsolete, or are they still

essential?
OTHER TERMS

1 End of Month
• a special payment arrangement between a seller and an "active
buyer”.

2 Discounts
• a reduction in the amount of the bill if buyers pay before the
maturity date.
CASH AND TRADE
DISCOUNTS
CASH DISCOUNT TRADE DISCOUNT

• the price paid for the earlier • an allowance from the price.
payment.
THANK YOU!
QUIZ TIME!
TEST I. TRUE OR FALSE

1. It is necessary to place so called “advanced” order/s for later


delivery to coincide with the market demand.
2. Cash before delivery means paying for goods when they are
delivered.
3. Standing of the customer refers to the creditworthiness or their
ability to pay their debts.
4. The seller will only deliver goods after receiving full payment in cash
on delivery cash term.
5. Discount is a reduction in the bill if buyers pay before the maturity
date.
TEST II. IDENTIFICATION

6. It refers to the price paid for the earlier payment.


7. Commonly referred to and indicated on bills or invoices.
8. It is a special payment arrangement between a seller and
an "active buyer”.
9. It is intended as an allowance from the price.
10. When the seller recognizes the distant location of the
buyer and accordingly make a concession in the matter of terms.

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