Terms of Sale - The Strategic CFO® (2024)

FAQs

Terms of Sale - The Strategic CFO®? ›

Terms of sale, explained also as the cost, amount, and distribution terms regarding a sale, are essential to a fair deal. They explain, in detail, the exact agreement for a sale: cost, amount, delivery, payment method, payment timing, trade credit, credit terms, and more.

What is Terms of Sale? Terms of Sales refer to the agreement between the buyer and seller of goods and services on conditions of price, quality, quantity, delivery, warranty, payment terms and other special conditions.

Where an operational CFO is concerned with past and present financial analysis, a strategic CFO must be forward-thinking with their strategy, providing valuable insights that can initiate positive changes within the company. For example, imagine you want to increase revenue for your suitcase company.

Credit Terms and Credit Sales

Credit terms are terms that indicate when payment is due for sales that are made on credit, possible discounts, and any applicable interest or late payment fees. For example, the credit terms for credit sales may be 2/10, net 30. This means that the amount is due in 30 days (net 30).

To complete a sale, both the buyer and the seller must agree to the specific terms of the transaction. These terms can include the price, quantity, method of delivery, and time of delivery.

A sales agreement is a contract between a buyer and a seller that details the terms of an exchange. It is also known as a sales agreement contract, sale of goods agreement, sales agreement form, purchase agreement, or sales contract. One very common type of sales agreement is the type used when purchasing a home.

Terms of sale are agreed-upon conditions between a buyer and a seller detailing the delivery specifics, payment terms, and transfer of ownership of goods. They include price, delivery location, transportation mode, and responsibilities for insurance and customs clearance.

Arrangements that specify the contractual conditions of transactions between sellers and buyers for the sale of goods or services are known as terms and conditions of sale. In other words, these arrangements are the rules that govern the sales transaction.

Being financially forward-thinking is a defining characteristic of a strategic CFO. They should take a more holistic view of the financial environment, monitoring the company's internal financial performance and making predictions and forecasts for the market as a whole.

What are the strategic priorities of the CFO? ›

By prioritizing funding for risk management, cybersecurity, governance and controls you can help drive a culture founded on transparency, accountability and trust.

The role of a Chief Financial Officer (CFO) is a senior-level position that is responsible for the overall financial strategy and management of a company while the role of a VP of Finance is responsible for the day-to-day financial management and operations of a company.

The point at which sellers have fulfilled their obligations so the goods in a legal sense could be said to have been delivered to the buyer. They are shorthand expressions that set out the rights and obligations of each party when it comes to transporting the goods.

Terms of sale, explained also as the cost, amount, and distribution terms regarding a sale, are essential to a fair deal. They explain, in detail, the exact agreement for a sale: cost, amount, delivery, payment method, payment timing, trade credit, credit terms, and more.

Incoterms, widely-used terms of sale, are a set of 11 internationally recognized rules which define the responsibilities of sellers and buyers. Incoterms specify who is responsible for paying for and managing the shipment, insurance, documentation, customs clearance, and other logistical activities.

Legal Definition

sale. noun. 1. a. : the transfer of title to property from one party to another for a price.

Incoterms, widely-used terms of sale, are a set of 11 internationally recognized rules which define the responsibilities of sellers and buyers. Incoterms specify who is responsible for paying for and managing the shipment, insurance, documentation, customs clearance, and other logistical activities.

T. Terms of Sale. The point at which a product's sellers have fulfilled their obligations to a shipment, so the shipment is said to have been delivered to the buyer. Terms of sale are shorthand expressions that set out the rights and obligations of each party when transporting the goods.