exclusive of VAT and invoiced cost

Discussion in 'English Only' started by cattac, Jan 14, 2013.

  1. cattac Member

    Good morning,

    I'm translating a Distribution Agreement between a company and the Distributor.

    Under TERMINATION it says, among others:

    [The Company] shall also be entitled to terminate the Distributor's appointment on 30 days written notice where the average value of Products per Quarter purchased by the Distributor taken over two consecutive Quarters (exclusive of VAT and invoiced cost) is less than the prevailing Minimum Purchase Requirement.

    I'm not sure how to understand the phrase in bold.
    It makes all the sense in the world to me to exclude VAT here - but what's left of "the average value of Products per Quarter" if you exlude the invoiced cost, too?

    Also, I'm not sure whether the "d" in invoiced cost slipped in accidentally or not.
    On this page, for instance, I found "invoice cost": "the price a company pays to its wholesale dealer to purchase the item for resale", which would make total sense in the context of that contract.
    So "invoice cost" and "invoiced cost" might well be synonymous.

    What's your take on this?

  2. boozer Senior Member

    Without knowing the spirit and details of this contract, I could very tentatively suggest that 'invoiced cost' could actually be either a) the distributor's surcharge on each and every item sold on behalf of the company, i.e. the distributor's fees or b) other operating costs incurred by the distributor and then charged to the company as agreed upon. It really makes no sense to exclude the value of the producs purchased from the company if this clause is all about it :)
  3. cattac Member

    Thanks for your suggestions, boozer.
    I don't think it's either of these, though. I don't see how either of these would be considered when calculating the "average value of Products per Quarter purchased by the Distributor" (which mustn't be less than the agreed upon "Minimum Purchase Requirement", defined as "the minimum value of Products the Distributor is required to purchase from [the Compnay] each Quarter during the Term".

    Does anyone have any other ideas?

  4. gramman

    gramman Senior Member

    Is "invoiced cost" referred to elsewhere, say, in the definition of the Minimum Purchase Requirement?

    I'm guessing along the same lines as boozer, that there is some added charge, e.g., a shipping fee, that's included. So invoiced cost would include the VAT and this (unknown) fee on top of the item cost.

    Something else seems strange to me, not that I know much of anything about contracts.

    … on 30 days written notice where the …

    I would expect "if the ."

    I wouldn't want to be accused of driving "business" away from WRF (anymore than I do already with my annoying ways), but you might want to ask about this in a forum like this one for bookkeepers.
  5. morior_invictus

    morior_invictus Senior Member

    =net of taxes, duties, transportation and other charges. :) And I don`t think that "invoiced cost" is the same as "invoice cost". "Invoiced cost", in this context, refers to cost that are incurred in the transportation and delivery of that particular product to a company. On the contrary, "invoice cost" refers to the total cost of the invoice, i. e. also product price is included.

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