What unacceptable terms should we look for on customer purchase orders?
What should we do if we find unacceptable terms?
Answer: Items to watch
for include:
- Pricing errors
- Longer credit terms than you offer
- Incorrect cash discount terms
- Return privileges
- Price protection privileges
- Incorrect shipping terms
- Order cancellation privileges
- Penalty clauses for late delivery, missed delivery, shortages, etc.
I recommend that if you find unacceptable terms that you do not enter
or process or ship the order until a written amended purchase order [or
a new PO] is received from the customer. |
