Advance Dating - Also known as season dating. An agreed upon future date when terms start.

Advertising Allowance - Discount to offset expense of advertising a product line or item. Amount varies between 2% - 10% off invoice.

Anticipation - Additional discount from vendors on anticipation that a store’s yearly purchases will reach a certain dollar amount.

Approval sale - A sale subject to later approval or selection; customer having unlimited return privileges.

Automatic Cancellation Date: The date specified by buyers on the purchase order as the last acceptable shipment date.

Automatic Reorder - The reordering of staple merchandise on the basis of predetermined minimum quantities. When minimum is reached, the quantity of initial order is ordered again.

A/O - At once. Goods are to be received immediately.

A.R.O. - After receipt of order.

A.S.A.P. - As soon as possible. As soon as goods are ready or credit has been checked, goods are shipped (sometimes written, "AS READY").

Backup Order - Additional merchandise reserved by manufacturers at time of initial order so buyer can get fast delivery on subsequent order.

Basic - inventory needed to cover expected sales demands

B.C. (or Best Way) - Best Cheapest - This indicates the best way and lowest rates to ship if merchandise can’t be shipped U.P.S.

Billing Address (Bill To) - Address where you receive bill if different from where you receive merchandise.

Bill of Lading - A document for shipments as evidence of carrier’s receipt of the shipment, and as a contract between carrier and shipper. In air shipments, an air waybill.

B.O. - Back Order Merchandise- shipped at a later date or unavailable at time of original shipment.

B.O.M. - Beginning of month.

CANCELLATION DATE - specifies the date beyond which you will not accept the goods. The date refers to the date the goods leave the manufacturer unless otherwise specified.

Charge Backs - vendor debits, i.e. billings to vendors for returned or damaged merchandise, cooperative advertising or adjustments.

C.O.D. - Cash on delivery. Usually UPS driver will accept a check (unless it specifies COD CASH ONLY). UPS adds a COD charge on to the shipping charges (approximately $1.75).

Close-out - offer at reduced price to clear slow-moving stock; the remainder of discontinued stock offered at a low price to insure immediate sale.

Dating - Dating refers to the practice of a manufacturer allowing bills to be paid later than normal terms - possibly 60 or 90 days after shipment to stores. Ask your salesperson if dating can be arranged. Often done when order is received early.

Delivery - The time between when the factory receives, processes and ships the order and when the store receives merchandise.

D.F.I. - Deduct from invoice

E.O.M. - End of month dating.

F.O.B. - Freight on Board. This indicates the location from which the merchandise is shipped - i.e., FOB Dallas

Freight Allowance - Discount on freight if store buys at a certain time of a certain amount.

Guaranteed Sale - A signed agreement whereby buyer can return unsold goods after they have been exposed for sale for a given period.

H.F.C. - Hold for confirmation- Asking a Rep/Manufacturer to hold order for a few days before placing.

In Store - Date you expect merchandise to arrive to your store. This would be a date later than a ship date.

Keystone - Doubling the wholesale cost in order to determine the retail price of the merchandise.

Lead time - Length of time that elapses until ordered merchandise is available for sale.

Margin/Mark-up - How much you determine to charge for an item. For example, keystone equals 50% margin.

Markdown Money - Money given by vendor to retailer to enable retailer to reduce selling price of a slow seller.

Minimum - Minimum dollar quantity per line, minimum pieces per line, minimum units per item.

Net 30 - Account has filled out credit application and been granted 30 days to pay the bill.

New Store Opening - If you are opening a new store, make sure you write "New Store Opening" on all purchase orders. Make sure to highlight and request merchandise early. Also make sure to follow up on all deliveries to insure timely delivery.

O.H. - On Hand

O.O. - On Order

O.T.B. - Open to Buy -Financial Plan. Refers to the amount of money a store has available for future purchases. ("We have no OTB’s right now.")

P.O. - Purchase Order. A written order generated by the store which is either executed at time of purchase or mailed subsequently. Usually details specific shipping and invoicing instructions. Usually bears a specific P.O. Number. Many large stores use P.O.’s for all purchases.

Pre-Pay - Buyer pays at time of order. Many manufacturers will pay the freight if order is prepaid. (Be prepared to have your check cashed immediately even though you specify a future shipping date.)

Pro Forma - Manufacturer bills buyer order amount plus shipping charges. Buyer sends a check; then manufacturer ships goods. Similar to pre-pay.

R.O.G. - Receipt of goods. For example- Payment of invoice on or after R.O.G.

RUSH - Obviously a rush order. A reason for the rush might expedite the order (new store opening - special promotion planned - etc).

R.T.V - Return to Vendor

Ship Date - Date you request merchandise to be shipped.

Ship To - Shipping address; where you receive merchandise.

Showroom - a location where a Rep or a manufacturer has product on permanent display.

S.K.U. - Stock keeping unit. The number on items a manufacturer has in his line.

S/M - Side Mark. A Side Mark instructs the shipper to direct the order to a specific PERSON, or DEPARTMENT. It might involve an individual package or packages wrapped separately and included in one large box, possibly directed to several different people.

SPECIFIC DATE - is used for future ship dates. Manufacturer will assume this is the date goods leave his dock unless you specify to arrive by a certain date.

Supplier (Resource, Source, Vendor) - Words used to refer to both sales reps and/or factories where stores buy merchandise.

Terms - Pay schedule. Different terms can save you money. Net 30 = payment due in full 30 days from date of invoice. Sometimes discounts are arranged if paid early.