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ii. The invoice number and the date of goods dispatched
iii. Name and address of the buyer
iv. Description, quantity, rate and amount of goods supplied
v. Rate of trade discount allowed
vi. Net payable amount
vii. Expenses incurred on behalf of the buyer
viii. Means and mode of transportation
ix. At the end “E. & O.E.” is written which is the abbreviated form of Error and
Omission Expected

Types of Invoice
Invoice can be of different types on the basis of conditions. The followings are the
main types of invoices used in foreign trade .
i. Loco Invoice : The word "Loco" refers to the word "Local". It indicates the price
of the goods lying in the seller’s warehouse. It does not include any item of
exprenses involved in the carriage of goods to the purchaser’s shop. All other
expenses are paid by the importer himself. It is also known as ex-factory or ex-
work price invoice. Foreign customers do not purchase goods on loco terms as
a general rule.
ii. Free on Board (F.O.B.) Invoice : As the name suggests, FOB price includes all
the expenses incurred till the goods are loaded on the board, the ship. Besides
cost of goods, FOB invoice includes packaging charges, transport charges to
port, export duty, duck charge and loading charges.
iii Cost and Freight (C & F) Invoice: It includes all the expenses incurred in
dispatch of the goods till the payment of the freight. It is prepared by adding
freight of ship to F.O.B. invoice. The relevant expenses incurred thereafter are
borne by the importer himself. This type of invoice is called C and F invoice.
iv. Cost, Insurance and Freight (CIF) Invoice : It includes all the expenses incurred
till the payment of the insurance premium. This price is obtained by adding
insurance to the C & F price. CIF price is very popular in foreign trade.
v. Franco or Free Invoice: The word "Franco" is meant as “Free". This invoice
includes all the possible expenses incurred till the goods reach the godown of
the importer. It includes free delivery to the buyer’s warehouse.

Means of Payment

The agreed way of payment between the buyer and seller is known as medium of
payment. The financial instruments or tools used for settlements of debts and dues
are known as means of payments. Following are the popular means of payment :

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