Commercial Management & Operations
Commercial Management
Commercial management refers to the activities of for-profit organizations. These organizations have various business areas or departments, including administration, production, planning, safety and hygiene, quality control, distribution and transport, and commercial.
Buying and Selling
A commercial contract is one in which the vendor (a person or entity owning something) agrees to deliver property to another person (the buyer), and the buyer agrees to pay an agreed-upon price. The purchase is made for resale or rental use.
Forms of Payment
Cash:
- Immediate Cash: Payment is made against delivery of the goods.
- “Plaza” Cash: Payment is made a few days after delivery, according to the customs of the area.
Credit:
- With documents: Signed documents or promissory notes.
- In current account: Unsigned documents (promissory notes), with set payment dates.
Rebates and Surcharges
The discount is the reduction in price obtained due to payment in cash or before the due date. The interest is the increase in the price of a product or service for late payments. A bonus is a rebate that is not related to the payment method of the commercial operation. Causes of bonuses include: seasonal closure, faulty products, promotions, customer service, and large quantity purchases.
Business Documents
What are business documents? They are the written records of each operation carried out by companies.
Format: They are usually presented in duplicate, in numbered books, with printed text and blanks to be completed according to each circumstance. They are made in duplicate or triplicate so that each person involved in the transaction has a copy.
Numbering: They have numbers composed of four digits followed by eight digits. The 4-digit number represents the branch that issued the document, and the following 8 digits correspond to the document number, always starting from number one for each document type and branch. They are listed to prevent the loss of any of them, similar to noting missing pages in a book when the numbering is incorrect.
Significance: Documentation is vital in commercial life as it is used to:
- Verify the operation performed.
- Control company operations.
- Serve as a basis for accounting records.
- Be used as evidence in court.
Commercial documents must be kept by the company for 10 years from the date of issuance.
Purchase Order
A purchase order is a commercial document issued by the buyer to place an order. It is generally issued in duplicate. The buyer keeps the original, and the seller keeps the duplicate.
Key Terms
- VAT: Value Added Tax.
- CUIT: Unique Tax Identification Code, used for development activities, granted by AFIP.
- CUIL: Unique Labor Identification Code, the number granted to employees when they enroll in ANSeS.
- ANSeS: Social Security Administration.
- AFIP: Federal Administration of Public Revenue.
- DGI: Revenue Directorate, responsible for controlling taxes.
- DGA: General Customs Directorate, responsible for controlling the entry and exit of people and goods into the country.
Regulatory Agencies
When a person begins an economic activity, they must register with different agencies at the national, provincial, and municipal levels, which provide registration numbers:
- AFIP (National): Provides the CUIT number.
- ANSeS (National): Provides the CUIL number.
- DGR (Provincial): Provides the gross income number.
- Municipal (Local): Provides the municipal registration number.
Delivery Note
A delivery note is a commercial document used to confirm the receipt of goods. The buyer signs it to confirm receipt. The delivery note is issued by the seller. It serves to:
- Provide evidence of goods supplied by the seller and received by the buyer.
- Verify the quantity and quality of goods received.
- Check if the received goods match the order.
The delivery note is issued at least in triplicate. The original is delivered to the buyer as a record of goods received. The duplicate is kept by the seller. The triplicate is given to the carrier who delivers the goods; the buyer signs this triplicate, which is then returned to the seller.