--- title: "Sales Terminology" canonical: "https://kb.myframeworks.com.au/space/FRAM/28408660/Sales%20Terminology" format: markdown --- # Overview This page covers terminology used within Frameworks related to its Sales module. # Account Sale> Macro (anchor) An **Account Sale** is a sale made to a customer who has a credit account with your organisation. The customer is provided with credit terms within which the sale must be paid.  # Bad Debt Part of a debt for which the debtor defaults payment of, that must be transferred from the debtors account to a Bad Debt Account. # Balance Forward Accounting Not used in Frameworks, however, Frameworks allows for balance forward style statements. Frameworks uses [open item](https://sterlandsupport.atlassian.net/wiki/spaces/FRAM/pages/28408660/Sales+Terminology#openitem). > ✅ For your information, **Balance Forward Accounting **maintains the amount actually owing at any one point in time, only recording the current month's transactions while keeping previous month's transactions as a balance total. This amount increases when sales are made to the debtor and decreases when payments are received from that debtor. The alternate form of customer accounting is **Open Item**. # Cash Before Delivery (CBD) > Macro (anchor) Payment method in which an order is processed when received, but is shipped only upon receipt of full payment from the purchaser. # Cash On Delivery (COD)> Macro (anchor) A type of transaction in which payment for good/s is made at the time of delivery. If the purchaser does not make payment when good/s are delivered, then the good/s are returned to the seller. # Cash Receipt > Macro (anchor) Refers to receiving cash from some source. # Cash Refund > Macro (anchor) The money which is returned to the customer in the form of cash. # Cash Sale > Macro (anchor) Sales in which the buyer's payment obligation to the seller is settled on delivery. For example by payment in cash or by debit or credit card. # Cash Sale Docket Records the receipt of monies and the data in respect of what was sold and is not concerned with who paid the money. # Credit Note > Macro (anchor) Issued by sellers when goods bought on credit by customers are returned by mutual agreement, or a price adjustment is necessary because of damage, overcharging, short delivery and so on. # Credit Status One of three valid codes that can be attached to a customer record to evoke specific action if a transaction is entered for that customer. These codes are: - **A** Active - the customer is permitted to trade within the agreed limits. - **S** Suspended - if a user tries to create an invoice for a suspended customer, Frameworks issues a warning. This warning may be ignored and the order can be created, however the order has to be authorised before it can be printed or released to invoice. - **H** Hold - if a customer is held, you cannot create or action an order or invoice. Refer to the [Credit Data](https://sterlandsupport.atlassian.net/wiki/spaces/FRAM/pages/28389894/Customer+Maintenance#Credit-Data) tab in [Customer Maintenance ](https://sterlandsupport.atlassian.net/wiki/spaces/FRAM/pages/28389894) for further information. # Debtor A debtor is someone who owes your organisation money. Customers (debtors) have been granted credit to trade with your organisation. This area is vital to the functioning of an organisation as failure to manage debtors credit can cause substantial losses. | Term | Definition | | --- | --- | | **Debtors Account Types** | Used internally by an organisation to validate transactions made by that debtor. For example, a debtor account may be a:
> Macro (legacy-content) | | **Delivery Docket** | Contains all of the information found on an invoice, usually without the unit and total price information. It is sent in duplicate with the goods to the purchaser, one copy of which is returned signed by the purchaser to the seller to acknowledge the receipt of the goods. | | **Dishonoured Cheque** | A cheque received from a customer that is not paid when presented to the customer's bank for payment.
For example:
> Macro (legacy-content) | | **Float** | The amount of cash that is physically put into a cash drawer at the beginning of a days trading to enable the operator to provide change, where a customer does not offer the exact amount of money for a sale. This cash must be accounted for when the till is reconciled at the end of the days trading. | | **GST** | A broad-based [Goods and Services Tax](https://www.ato.gov.au/business/gst/) applied to the value of goods and services that are deemed to be taxable and are consumed in Australia for business purposes. | | **Invoice** | A record of the detail of goods sold on credit to individual purchasers, originated by the seller of the goods. | | **Open Item Accounting** > Macro (anchor) ** ** | Keeps details of all invoices sent to a debtor and when that debtor makes a payment, it is applied specifically to a particular unpaid invoice. Unpaid invoices are called open items and the total of the open items per debtor is the balance owed to the business. The alternative form of customer accounting is [Balance Forward Accounting](https://sterlandsupport.atlassian.net/wiki/spaces/FRAM/pages/28377252/Receivables+Terminology#Balance-Forward-Accounting) which is not used in Frameworks | | **POS Docket** | A counter sale docket (receipt) that is used when goods are sold over the counter, both for cash and account transactions. | | **Settlement Discount** > Macro (anchor) ** ** | Applied when an account is paid and is conditional upon the buyer paying for goods within a prescribed time. If payment is late, the discount is not allowed. Settlement discount is a mechanism whereby, for prompt or immediate payment, the customer is able to deduct an agreed percentage of the total invoice.
Generally this approach requires particular attention as:
1. Your credit control system needs to be even more efficient to ensure that discounts are not taken outside of the stated terms.
2. You are effectively giving away part of your profit. A 3% reduction for cash discount does not affect your operating costs or cost of sale. It will however, reduce your profit by 3% of the sale price less the possible saving on finance costs.
3. You need to carefully evaluate the actual cash effect of giving discount and the potential savings on interests costs. | | **Statement** | Provides details in respect of unpaid amounts from the last period and purchases for this period including credit notes issued and payments received. | | **Sundry Receipt **> Macro (anchor) | A receipt given for infrequent or miscellaneous costs not assigned to an individual ledger account. For example, an insurance claim or tax refund. | | **Trade Discount** | Is *unconditional* and is given at the time of sale usually to good customers or to customers buying in quantity. | | **Unallocated Payment** | Payments that have been entered through [Customer Payments ](https://sterlandsupport.atlassian.net/wiki/spaces/FRAM/pages/28403472)in the [Receivables](https://sterlandsupport.atlassian.net/wiki/spaces/FRAM/pages/28377190) module that have not yet been allocated to an invoice or to an accounting period for the customer. | | **Unit Of Measure (UOM)** | Refer to [UOM in Inventory Terminology](https://sterlandsupport.atlassian.net/wiki/spaces/FRAM/pages/28378104/Inventory+Terminology#Units-of-Measure-(UOM)). |