Page 43 - Account 10

v. Letter of Acknowledgement
After receiving the letter of order, the supplier/seller should inform to the buyer
about the receipt of the order and its acceptance. He should also give the information
about the delivery of the goods in written form. As such, a letter of acknowledgement
is that letter which is written by a seller to the buyer by assuring the delivery of goods
specified.
After the confirmation of order, the seller should process onward for the dispatch of the
goods up to the buyer. The following are the further procedures to be followed by the seller.

vi. Collection of Goods
After the letter of order is received, the seller collects the goods from his own godown
and even from the other suppliers at a place.

vii. Packing of Goods
The goods should be packed with appropriate packing system. Necessary warnings
should be printed on the packages as according to the nature of goods. The brand name of
the goods, date of manufacture, etc. along with the name and address of the buyer should
also be printed on it. Then, after the goods are ready for dispatch, the invoice should be
prepared.
viii. Preparation of Invoice
Invoice is a kind of bill prepared by a seller to the name of the buyer mentioning
therein the particulars of the goods, the net value of trade and the credit terms and
conditions, etc. It is prepared in necessary copies and of which, one is sent to the buyer,
second to the carrier company along with the goods and the last copy is kept by himself for
future reference. After collecting goods and preparing invoice, the goods are dispatched
to the carrier company for delivery.

ix. Transportation of Goods
As mentioned just above, after the final preparation of goods, the seller dispatches
them to the buyer through the chosen carrier company. If the buyer has given any special
instruction for the carriage of goods, the same should be followed, otherwise the safest
and fastest means of transport should be chosen.

x. Receipt and Carriage of Goods
When the goods are dispatched with its invoice to the carrier company, it makes
the verification of the goods with the invoice and issues a receipt to the seller in return.
Receipt of goods is the proof of the acceptance of goods by the carrier company to deliver
them to the buyer. If any instructions are given by the seller that should be followed by
the company, otherwise the total responsibilities of the goods in transit remain with the
carrier company itself.
xi. Letter of Complaint
When the goods are delivered upto the buyer, he receives them by their physical
verification with the invoice that he has got. If he finds any defects in the goods in terms
of quantity, quality, colour, size, etc. some or all of the goods are returned to the seller

42 Aakar’s Office Practice and Accountancy - 10 Trade 43