Currently, many prefer to purchase goods not through retail outlets, but by ordering directly from the manufacturer or general distributor. Thus, it is possible to make an acquisition with a substantial discount. But often the company requires full payment for the goods before they are shipped - the so-called advance payment. What is prepayment and why is it required from some customers, but not from others?
Advance payment
In the case of ordering goods on a prepaid basis, the supplier requires the transfer of the full or partial amount of the value of the goods to his current account. The pre-paid price serves as a guarantee that the buyer is really interested in the acquisition. This type of transfer in accounting is called "advance payment". Standard prepayment conditions are set for one-time or occasional customers. It is more convenient for regular customers to conclude a contract of sale of a standard form, which stipulates the conditions - prepayment, transfer upon payment, deferred payment. If, under the terms of the agreement, the client agrees to transfer the money in advance, an advance payment agreement is signed. The supplier may put forward counterclaims, for example, insist that deferred settlement is possible only after ordering a certain quantity of goods. If this condition is not met, the client will directly know what prepayment is and transfer money even before the goods are shipped.
Full and partial prepayment
Depending on how interested the supplier is in the buyer, full or partial prepayment may be applied. Full is possible for new customers, for customers making irregular purchases, and if the cost of marketable products may change in a short period of time.
What is a partial prepayment? In this case, the client pays 70, 50, 30 percent of the total purchase price. After receiving the goods in full assortment, the buyer remains to pay the remaining amount.
Another type of processing operation is also possible. For example, a buyer is billed for an advance payment of 30% of the value of the goods. After the transaction is completed, the client pays 100% of the cost. On the accounts of the seller there are excessively transferred funds. He subsequently either returns it to the buyer, or uses it as an advance payment for the next batch of goods. This method is called a “revolver”, since the movement of money is similar to the movement of cartridges in a revolver drum. This method is often used by sellers with periodic deliveries of goods to their counterparties.
Prepayment invoice
An invoice for prepayment is issued after the counterparty’s application and includes the following details:
- Name of product;
- unit;
- number of purchased items;
- delivery services - if the goods will be delivered at the expense of the supplier;
- total amount;
- accrued taxes (VAT, excise tax, etc.);
- the sum of everything.
A correctly prepared and accepted counterparty invoice for prepayment is an accounting document and should be reflected in warehouse and tax accounting.
Settlements between individuals
Of course, when purchasing goods via the Internet, no invoices are issued to anyone. Such transactions are carried out on the basis of an oral agreement between the buyer and seller. At the same time, an advance payment is stipulated - whether it is appropriate and in what amount it will be made.The final settlement is possible only by the result of a full agreement.
How to choose a reliable seller
Of course, any prepayment is a risk primarily for the buyer. It is likely that the customer does not receive the selected product for the advance payment made. Let's see how you can protect yourself from scammers by applying basic safety rules.
First of all, look at the reputation of the seller. Of course, many scammers buy reviews online. As a rule, such reviews are standard, they are not written in essence and essentially boil down to two phrases: “wonderful product”, “good seller”. Of course, such comments do not reflect either the seller’s real reputation or the way he works with customers.
Among the positive reviews of interest are those that describe the purchase process itself - whether there was an advance payment for the product, how the purchase was packaged, how quickly the seller got in touch and so on. Such reviews should be taken into account when assessing the reliability of the person selling the goods.
It is more interesting to consider negative reviews - if they are, of course. Of course, no one writes negative reviews for money - which means that they are all written by real or failed buyers. Analyze not the quantity, but the essence of these reviews. If complaints relate to the fact that the buyer does not know what prepayment is, that he could not agree with the seller, feel free to ignore such a comment. Pay attention to complaints about poor feedback, incomprehensible delays in sending goods and the like. If these complaints are posted on the network and missed by the administration of the resource on which they are posted, it is worth listening to them.
Beware of scammers
The second point - by the way, is very interesting - the number of lots of goods exhibited by this seller on this resource. A standard seller with a good reputation can insist on an advance payment if he exposes a large assortment of goods on this Internet site. In this case, he is not interested in deceiving you - your complaint will automatically block his access to further implementation. If a buyer with a not very good reputation puts up one or two lots at suspiciously low prices that he wants to sell on a prepayment basis, it is entirely possible that you are a scammer.
So do not rush to lay out money for an interesting position on a prepaid basis, without familiarizing yourself with the seller and his reputation. This advice applies to working with legal entities and private entrepreneurs.
