TOPIC 1

PLANNING LETTERS

Business letter takes time to write, but it can be written more quickly if you follow a few
basic principles.

Keep in mind these three points when you write a letter:

1. Business letters serve one purpose.

2. Business letters are expensive.
3. Business letters serve as a record.

Business letters serve one purpose. They are to communicate information. Countless
hours are spend and too many letters are sent that say little or nothing. That’s a waste of
time for the sender and the receiver. Also, when the wages of the writer and the typist,
along with the prorated cost of equipment and postage are figured in, business letters are
expensive. It is important that they be cost-effective. Why write a business letter?
Because business letters serve as a record. Letters are long-lasting, tangible evidence of
information you communicate to others.

Four Considerations of a Business Letter

1. Subject
2. Audience
3. Purpose
4. Style/Organization

These are the four areas you must take into consideration for each business letter. If you
do not, your letter will be ineffective.
1. Subject

Every piece of writing from the business letter to the novel revolves around a subject.
Luckily, in the business world, the subject is usually specific and quite often supplied for
you by someone else such as a boss or colleague, or demanded by a situation (firing,
congratulatory letter, etc.).

It’s a fact: the more specific you subject, the easier it is to write your letter. For example,
let’s say that you need to request information about an order that did not arrive when it
should have. If you are in charge of the account, writing the letter is easy. If you are not
in charge of the account, it is harder for you to write the letter than the person who knows
all the particulars. Regardless of the situation, stick to one or two subjects in your letter.
Including more than two subjects clouds your message. Write another letter if you have
more than two subjects.

2. Audience

This area is tricky because you may not know your audience. If you do, you can tailor
your letter to that audience. Many times, however, your audience is larger than you
expect. Your letter may be addressed to Terry Smith, but may be read by several other
people in that firm to receive the action you wish. If you are unsure of your audience,
assume they are educated, reasonable people until you find out otherwise. Don’t assume
they have as much knowledge of the subject of your letter as you do or you may over-
generalize or forget to include important details.

3. Purpose

Many letters are sent with a specific subject and audience in mind, but are not clear in
their purpose.
Know why you are sending the letter. Is the letter to inform? Is it to request information?
Is it to offer congratulation? Condolences? Is it to get the recipient to act on a request?
All of these are very different purposes. You have probably received a letter that, after
reading it. Left you confused because you didn’t know exactly what it said. The purpose
was not clear.

4. Style/Organization

The first three areas dictate how you are going to write the letter.

1. Know WHAT you’re writing about – SUBJECT

2. Know WHO you’re writing for – AUDIENCE
3. Know WHY you’re writing – PURPOSE

Now you are ready to be concerned with HOW you are going to write the letter. The first
three areas can be determined in a manner of minutes if you are familiar with the ideas
that need to be communicated. The fourth area take more time.

Organization

Most of this book is devoted to know how different types of letters are organized.
However, the basic organization for the body of a business letter is as follows:

Part 1 of the body : State your purpose

Part 2 of the body : Explain what you want to happen or explain the information

you have.

Part 3 of the body : Request action, conclude or thank the reader for his response.

Let’s take a look at each of these parts. Notice these are parts of sections rather than
paragraphs. In some cases particularly Part 2, the part may consist of more than one
paragraph.
Part 1 of the Body

Get right to the point in the first sentence of the letter. When you read a novel, you expect
to have background information before the story ever starts. When you read a business
letter, you expect to be told immediately what will happen. Remember, your reader
doesn’t have any more time to wade through a long letter than you do.

This part is usually a short paragraph. Anything too long will cause the reader to lose
patience.

Part 2 of the Body

This is the bread and butter of the letter. It explains the information you are giving, or it
explains what you want the recipient to do. It doesn’t need to be elaborate, but it does
need to include all of the information that the recipient needs.

If you have a lot information, break it into short paragraph or make a list. Underlining
essential information is one way to highlight key pints for your reader.

Your letter should be organized to help the recipient what he needs to know or what you
want him to do.

Part 3 of the Body

This, like the first part, is usually a short paragraph. In writing classes, it’s called the
clincher. Not a bad way to remember its function. Depending on the purpose of your
letter, it will do one of three things.

1. Conclude. In an informational letter, this allow you to point out the most
important item or draw all your key points into one statement.
 2. Request Action. In letters that require a response, such as collection letters, you
define the action you want the recipient to take. In this part, you tell him what he
is to do and when he should do it. Do not vague or you will get vague result.
3. Thanks for response. In some letters, this part is simply a thank-you for the
recipient’s attention, response or concern.

In many ways, the method of writing a business letter is like the rule of thumb for giving
a speech: Tell them what you’re going to talk about. Talk about it. Then tell them what
you talked about.
The following sample letter shows how each of the three parts work:

Capital Supplies
8995 Camden Rd., Williamsburg, WI 63094
October 2, 20xx

Lance Smith, Director

Terrance Trucking
P.O. Box 4440
Houston, TX 34598-4440

Dear Mr. Smith,

Fifteen of the last shipments we have made using your company have arrived
damaged. We ask that you investigate the attached shipping orders and take the
necessary action. (1)

Since we have used your company for eight years with few problems, we feel that
only one or two of the drivers may be negligent. All 15 shipments that arrived
damaged were delivery either by Ted McCraken or Bob Smiley. In five of the
shipments, our loading dock supervisor detected alcohol on the breath of Mr.
McCraken. In four of the shipments, alcohol was detected on Mr. Smiley. I have
attached our loading dock supervisors’ reports. (2)

Please review the attached documents. We wish to continue to use your firm but
cannot if these two drivers are delivering to us. I shall expect a reply regarding your
action within two weeks of your receiving this letter. (3)

Yours sincerely,
Carla Reginald
Carla Reginald
CLR:mjk
Enc. (10)
 Note:

(1) State your purpose.

(2) Explain what you want to happen or explain the information you have.

(3) Request action, Conclude, thank for their response.

The Seven “C’s” of Style

1. Conversational. Try to write the way you speak. Get rid of stilted phrases. Why
say “due to the fact that” when you can say “because”? would you normally say
“the a fore mentioned information”?
2. Clear. The goal of clarity is that the reader understands precisely what you are
saying. The language of your letter should be adapted to the recipient. This means
that you write in a matter-of-fact, conversational tone. Use specific examples the
reader can related to. Don’t assume that your reader understands the jargon of
your trade. Remember, most letters will be read by people other than the recipient
of the letter. These people may be unfamiliar with the technical language or
jargon you use. Clarity also means organizing your letter so each paragraph deals
with only one main idea, and presenting your ideas in a logical order. Your letter
should not be a collection of random ideas. It should be single-minded in its
purpose.
3. Concise. A concise letter eliminates all unnecessary words. Why use four words,
“in as much as”, when you can use one word, “because”? This is not to say that
you can’t write long letters, but the longer the letter, the more ineffective it
becomes. It is better to write a short letter with attachments than a long, detailed
one.
4. Complete. Make sure you have included all the information the reader needs to
know. Don’t include details that are interesting but not relevant. The biggest
problem with leaving out information is that the reader has make assumptions.
 For example. Don’t say, “When we last spoke about the situation”, when you can
say, “When we spoke on June 8 about hiring a new administrative assistant”.
5. Concrete. Use specific terms that cannot be misunderstood. Don’t say, “The large
order that we requested has not arrived”. Say, “
Write about what people can see, touch, smell, taste or hear. In other words, make
Your language tangible. Make it concrete.

6. Constructive. Use words and phrases that set a positive tone. Constructive words
are like smiling when you greet someone. They leave a good impression.
Such as “failure”, “you neglected” and “error” tend to distance the recipient from
the writer. Words such as “agreeable”, “pound” and “success” help create a
positive tone.
7. Correct. The last step in writing any business letter is to proofread it. You
automatically check your image in a mirror before going out or meeting someone.
The letter you send is your image on paper. If it is riddled with spelling and
typographical errors, it will detract from what you are trying to get across. The
reaction will be, “he can’t spell” or “she doesn’t know how to type”.

Practice:

You are a sub-manager of a bank. There has been a change in government regulations.
Interest rates have increased to 12% for deposits and 14% for loans. Write a short letter
to:

a) Customers who have deposits account at your branch

b) Customers who have a loan from your branch

Follow this plan

Date
 Dear Sir or Madam.
 First, put a heading.
 Next, say what you writing about.
  Then give the good or bad news. Say what you have had to do or can do.
 Give the reason.
 Close the letter.
 Finally, sign it and give your name and title.

BANK SUMUT
Jalan Dr. Mansyur Padang Bulan 20155
Medan

September 17, 2020

Mr. Abdul Rahman

Director of State Polytechnic of Medan
Jalan Almamater # 1
Medan 20155

Dear Mr. Rahman,

We would like to inform you that all the customers of Bank Sumut who have the
deposit at our bank, the interest rate has increased to 12% for deposit and 14% for
loans.

It happens because there has been a change in the government regulations.

We say thank you for your attention.

Yours Sincerely,
Andre F. Simanjuntak
Andre F. Simanjuntak
Manager
AFS-rr
Enc. (15)
 TOPIC 2

LETTER OF INQUIRY

We write an inquiry when we want to ask for more information concerning a product,
service or other information about a product or service that interest. us. These letters are
often written in response to an advertisement that we have seen in the paper, a magazine,
a commercial on television when we are interested in purchasing a product, but would
like more information before making a decision.

Important Language to Remember

Giving Reference:

With reference to your advertisement (ad) in….

Regarding your advertisement (ad) in….
Requesting a Catalog, Brochure, etc.:
After the reference, add a comma and continue- ….. would (could) your please send
me….
Requesting further information:
I would also like to know……..
Could you tell me whether…….

Please read the following explanation:

A. Opening Paragraph
- We should be pleased/glad if you could send us your latest catalogue.
- Please let us have your illustrated catalogues, terms of payment and terms of delivery.
- We are interested in your products and should be pleased if you could send us your
catalogue, price-list and terms of payment.

- We have seen your products at your stand at Jakarta Fair and should be pleased if you
could send us your latest catalogues and price-list.

- We have seen your advertisement in Jakarta Times and should be glad if you could send
us your latest catalogues and price-list.

- With reference to your advertisement in Jakarta Times I read a few days ago, would you
please send us your latest catalogues, price-list and terms of payment.

B. Requesting Information

 We would like to know whether you can offer us a special discount.

 Please let us know your terms of payments.
 Would you please let us know whether you can offer us a special discount for this
month.

C. Closing Paragraph

 We should be pleased to receive your prompt reply.

 We look forward to receive your reply.
 We should appreciate your prompt reply.
 We look forward to receiving your reply immediately.
 We hope you will be able to send us reply by return.

For example:
Kenneth Beare
2520 Visha Avenue
Olympia, WA 98501
Jackson Brothers
3487 23rd Street
New York, NY 12009
September 12, 2011
To Whom It May Concern:
With reference to your advertisement in yesterday’s New York Times, could you please
send me a copy of your latest catalogue. I would also like to know if it is possible to
make purchases online.

Yours faithfully
Kenneth Beare
Kenneth Beare
Administrative Director
English Learners & Company

PT. MULTI SAFARI INTERNATIONAL

Jln. Jend. Sudirman No. 15
Surabaya 2002
Ref: AA/NA/12A
21st October, 2011

Johnson Allwood & Sons

25 Bridgestone Street
New York, NY 239001
USA

Dear Sirs,
We have seen some of your excellent men’s belts products exhibited at World Expo in New
York last week. As we are interested in your Belly men’s belts, would you please send us your
latest catalogues, price-list and terms of payment.

We appreciate your prompt reply.

Yours faithfully,

Anwar S. Abdullah

Anwar S. Abdullah
Purchase Manager

Answer the following questions:

 1. Who is the Purchase Manager of PT. Multi Safari International?
2. Where did Mr. Abdullah see the products of Johnson Allwood & Sons?
3. Where was the World Expo held?
4. What did Mr. Abdullah ask for in his letter?
5. What are the products of Johnson Allwood & Sons?

JAKARTA INTERNATIONAL TRADING LTD.

Jln. Irian Jaya Satu No. 23
Jakarta 10009

7th May, 2011

PT. Multi Jaya Abadi
132 Jln. Maphilindo Raya
Surabaya 29076

Dear Sirs,
We visited your stand at the Indonesian Trade Fair five days ago and I was
interested in your Montana ladies’ shoes displayed at the fair.
I should be pleased if you would send me your catalogues of your complete
ranges of the ladies’ shoes, price-list, and terms of payment. Perhaps at the same time
you could let me know the time required after you receive the order. If they are
competitive and the terms are satisfactory, we may place our regular orders in future.

Yours faithfully,

Hassan M. Salim

Hassan M. Salim
Purchase Manager

Answer the following questions.

1. What is the position of Mr. Hassan M. Salim?
2. When did Mr. Hassan M. Salim visit the stand of PT. Multi Jaya Abadi?
3. What did Mr. Hassan M. Salim ask for?
4. When was the letter typed?
5. Did Mr. Hassan M. Salim intend to buy the product of PT. Multi Jaya?
 SINGAPORE TRADING LIMITED
26 Payalebar Street
Singapore 20001
23 rd July, 2011

Marketing Manager
Maestro International Inc.
143B Jln. Semanggi Raya
Jakarta 10009

Dear Sir,
With reference to your advertisement in Today’s Jakarta Times, would you
please send me your color catalogues with full details of price and terms of payment of
your quality furniture and lightings.
I should also be grateful for a quotation for 100 units of table MZ5 and
lighting TU 25Z c.i.f. Jakarta.
I should be pleased to have your reply promptly.

Yours faithfully,

Robert T. Lee

Robert T. Lee
Purchase Manager

Answer the following questions.

1. Who is the Purchase Manager of Singapore Trading Limited?

2. In what newspaper was the furniture advertised?
3. When was the furniture advertised?
4. What is the address of Maestro International?
5. For many units of table does Mr. Robert Lee ask for the quotation?
Practice:
1. Write sentences and ask for information whether:
a. They could send the order next week.
b. The prices include delivery charges.
c. Their products are covered by one-year guarantee.
d. They could offer 10% discount.

2. Write sentences and ask a company to send you:

a. Catalogue and price-list.

b. Full details of their new products.
c. Their newest brochures and terms of payment.
d. Samples of product and promotional gifts.

3. Write a letter to one of your regular suppliers’ (you may use any umbrella) in Jakarta
and ask for their latest catalogues, price-list, and terms of payment. You may use your
own name as Purchase Manager of a company and use today’s date for letter you write.
 TOPIC 3

PLACING ORDERS

Unlike quotation, correspondence concerning orders is largely routine. Sometimes there

is no correspondence at all; instead, buyers use printed order forms, and sellers used
printed acknowledgements. Ordering on printed forms has a number of advantages:

1) The forms are pre-numbered and therefore easy to refer to.

2) Important details cannot be overlooked.
3) The general condition under which orders are placed can be placed at the back.

If orders are placed by letters, the essential qualities of an order letter are accuracy and
clarity. When sending an order by letter:

1) Include full details of description, quantities, and prices and quote catalogue
numbers if any
2) State your requirements as to delivery – place, date, mode of transport
3) Confirm the term of payment agreed in preliminary negotiations

A. Opening Paragraph

 We have received your letter of ………and should be glad if you would accept
our order for the following goods.
 We are obliged to your quotation/letter of …….and should be glad if you would
accept our order for the following goods.
  We thank you for your letter of …….and enclose our official order for the
following goods.
 We have received your quotation of …………and please send the following
goods as soon as possible.
 We have received your letter of ………and as the prices quoted in your letter are
satisfactory, please arrange to deliver the following goods as quickly as possible.

B. Describing method of payment

 We shall pay for the goods by banker’s transfer on receipt of pro-forma invoice.
 We shall open a letter of credit as soon as we receive your pro-forma invoice.
 We shall pay for the goods by banker’s transfer within 20 days from the date of
delivery.

C. Closing Paragraph

 We should be grateful for your prompt delivery as the goods are urgently needed.
 We look forward to receiving your advice of delivery by return.
 Please kindly acknowledge this order and confirm that you will be able to deliver
the goods by the end of this year.
 TOPIC 4

ADVICE OF DESPATCH

When goods are dispatched the buyer should be notified, either by advice note, or by
letter stating what has been sent, when it was sent and the means of transport used. Where
the invoice is sent by post, it serves as` an advice note and separate advice is unnecessary.
The customer knows that the goods are on the way and can make the necessary
arrangements to receive them.

E.g.:

Request for forwarding Instructions

Dear Sirs

We are pleased to confirm that the twelve “Universal” typewriters you ordered on 15 th
October are now ready for dispatch.
 When placing your order you stressed the importance of prompt delivery and I am glad
to say that by making a special effort we have been able to improve by a few days on
the delivery date agreed upon.

We now await your shipping instructions and immediately we receive them will send
our advice of dispatch.

Yours faithfully

Advice of goods ready for dispatch

Dear Sirs

We are pleased to confirm that all the books which you ordered on 3 rd April have now
been obtained and are packed ready for dispatch.

The consignment awaits collection at our warehouse and consist of two cases, each
weighing about 100 kg.

Arrangements for shipping, c.i.f. Singapore, have already been made with W. Watson
& Co. Ltd., our forwarding agents. And as soon as we receive their statement of
charge, we will arrange shipping documents to be sent to you through Barclays Bank
against our draft for acceptance, as agreed.

We appreciate this opportunity to serve you and look forward to further business with
 you.

Yours faithfully,

And advice of dispatch may be purely formal, as in the first of the two examples that
follow, but the addition of a complimentary reference to the goods themselves, as in the
second example, is always good policy and well repays the little extra trouble involved.

E.g.:

Acknowledgement of save delivery

Dear Sirs
Order No. S 524

We are pleased to say the mohair rugs which you dispatched on 28 th January were
delivered in good condition on the 31st.

The four cases have been collected by the carriers for return to you by rail, carriage
forward, and we shall be glad if you will credit out account with the amount of the
invoiced charge.

The care and promptness with which you have attended to our order are very much
appreciated.
 Yours faithfully

Practice:

1. One of your customers has asked for delivery within twelve hours or goods
urgently needed. Write telling him that the goods have been dispatched, and how.
Tactfully point out the inconvenience of making deliveries at such short notice
and ask for more time in future.
2. You have just dispatched a consignment of typewriters to a foreign buyer. Write
explaining the precautions you have taken to ensure their safe arrival, giving
details of case marks and numbers and the manner in which the goods have been
packed.
3. Write sentences to advise the dispatch of the following:
a. Order No. 245DC
b. Order No. 23T and 45Z
c. The replacement of books damaged on delivery from order No. 32B
4. Write a letter advising dispatch of order No. 23ZP which was collected by Qantas
for Indonesian Cycle Corporation. The order is 250 units Remington Bicycle and
300 units Federal bicycles. Enclose an air way-bill, insurance certificate, invoice,
delivery order and bill of landing.
 PROFESSIONAL CORPORATION
Jln. Panglima Raya No. 25B
Jakarta 10003

Your ref: LK/T/2C

Our ref: HM/MB/L2

21st September 2011

Mr. Lawrence C. Jackson

Marketing Manager
Indonesia Textile Corporation
12 Jln. Merdeka Raya
Semarang 12001

Dear Mr. Jackson,

We have received your letter of 1 September and should be pleased if you would
accept our order for the following items:
300 L size Men’s shirt blue stripes Cat. Ref. B 2341
250 L size Men’s shirt red stripes Cat. Ref. C 2455
300 M size Men’s shirt red stripes Cat. Ref. Z 5421
20 S size Men’s shirt blue stripes Cat. Ref. T 2461
300 M size Men’s shirt black stripes Cat. Ref. B 4321
 We shall pay for the goods by banker’s transfer within 20 days from the date of
delivery.
We should be grateful for your prompt delivery as the goods are urgently needed.

Yours sincerely,
Hasan M. Alwi
Hasan M. Alwi
Chief Buyer

Answer the following questions.

1. What does “We” in paragraph 1 refer to?

2. What does “your” in paragraph 1 refer to?
3. What does “Cat. Ref.” mean?
4. How would they pay for the goods?
5. When would they pay for the goods?

MODERN OFFICE LTD

Jln. Samudra Raya No. 35 B
Bandung 23001

Your ref. : MP/DC/21

Our ref. : AM/L/2B

15 October 2011

Mr. William C. Parker

Marketing Manager
International Corporation Ltd.
23 Kyoto Boulevard
Tokyo 20001
Japan

Dear Mr. William,

 Subject: Purchase Order No. 365 T

Thank you for your letter of 15 September, enclosing your catalogue, price-list, and terms of payment.

We have studied your catalogue very carefully, and are very pleased with the quality of the PC you
offered.

We enclose our official purchase order and shall pay for the PC by banker’s transfer on receipt of your
pro-forma invoice.

Yours sincerely,

Allan P. Martadinata

Allan P. Martadinata

Allan P. Martadinata
Sales Manager

Enc: 1

Answer the following questions.

1. What does “your” in paragraph 2 refer to?

2. How did they study the catalog?
3. What did they enclose with the letter?
4. How would the Modern Office Ltd pay for their order?
5. What does pro-forma invoice mean?

Example:

MODERN OFFICE LTD

Jln. Samudra Raya No. 35 B
Bandung 23001
 Purchase Order No. 356T
To: Professional Corporation Ltd
23 Kyoto Boulevard
Tokyo 2001
Japan
Date: 14 October 2011

Allan P. Martadinata
Sales Manager

Enc: 1

Language Study:

 We would like to …………

 We enclose …………
 Please find enclose ……..
 Enclosed you will find ………
 We shall pay for the goods ……….

Practice:

1. Write sentences to describe method of payment and condition for the following.

Method of Payment Condition

a. Banker’s transfer receipt of pro-forma invoice

b. Banker’s transfer within 20 days from the date of delivery

2. Write sentences to place the following orders.

a. 120 copies Webster Dictionary, Cat.ref. 245 NA

 b. 25 DD handy cam, cat.ref. 12 FA

c. 50 Acer notebooks, cat.ref. 12LH

3. Write a letter to Nancy L. Miller of Sony Television Corp. Inc., 234 Avenue,
Porthmouth, Virginia 23002. From Hendry L. Smith of Empire International Service Inc.,
432 Green One Avenue, Baltimore, Maryland 21245. Thanks for a catalog, price-list, and
enclose an official order form No. 23 DC for 40 XZ Sony Televisions, Cat. Ref. No. 34
LA. State the payment by banker’s draft on receipt of pro-forma invoice, and request
delivery within two weeks.

TOPIC 5: FOREIGN EXCHANGE

At the end of the lesson the students should know foreign exchange; currencies of the
world; the term used in doing the exchange, and how to calculate the exchange rates

5.1. FOREIGN EXCHANGE

Foreign exchange dealing is, as its name implies, the exchange of the currency of
one country for the currency of another. The rate of the exchange is the value of one unit
of the foreign currency expressed in the other currency concerned. Currencies can be
bought or sold in the foreign exchange market either for immediate delivery, that is at the
spot rate, or for delivery later ( e.g. two weeks, three months, etc.) at a forward rate.

The forward market is useful for companies, since if a company knows that it will
need a particular foreign currency to pay a bill in four weeks’ time, for example, a
forward deal enables it to protect itself against future adverse movements in the exchange
rate which would have otherwise had the effect of making the foreign goods more
expensive.

When dealing in foreign exchange, normally by telephone, the bank quotes both
the selling and buying rate of a currency at which it is prepared to transact business.
Foreign exchange rates change every day. The price of a country’s currency depends on
many things including: the economic and political situation in that country, and the
amount of control that a government has over the currency.

Settlement for a spot transaction is two working days later. Thus if a contract made
on Monday, the seller delivers the amount sold and receives payment on Wednesday.
Similarly if the contract is made on Tuesday, value is Thursday. The foreign exchange
dealer fills in a dealing slip containing basic information such as the date and time of the
deal, the contracting party, the amount and rate agreed on, the date of settlement, and the
place of delivery of the currency dealt in. As soon as a foreign exchange transaction has
been carried out, both banks send a written confirmation containing the basic information
mentioned above. The foreign exchange always quotes two prices for each currency. A
selling price and buying price.

A bank may make gains on buying and selling currencies on the inter-bank market.
Making a profit on the transaction is the basic idea of foreign exchange dealing.

5.2 CURRENCIES OF THE WORLD

COUNTRY CURRENCY SYMBOL

Afghanistan Afghani Af
Albania Lek L
Algeria Dinar DA
Bangladesh Taka TK
Bolivia Boliviano Bs
Brazil Real R$
Canada Dollar Can$
Chile Peso Ch$
China Yuan Renmimbi Y
Denmark Krone Dkr
Djibouti Franc DF
Dominika Dollar EC$
El Salvador Colon
Ethiopia Birr Br
France Franch F
Fiji Dollar F$
Finland Marko Mk
Germany Deutsche Mark DM
Guatemala Quetzal Q
Gibraltar Pound £
Haiti Gourde G
Hongkong Dollar HK$
Hungary Forint Ft
India Rupee Rs
Indonesia Rupiah Rp
Iraq Dinar ID
Japan Yen
Jersey Dollar US$
Jordan Dinar JD
Kenya Shilling K Sh
Korea Won W
Kuwait Dinar KD
Laos New Klip KN
Lebanon Pound LL
Macao Pataca P
Mexico Peso Mex$
Mali Franc CFAF
Nepal Rupee NRs
Namibia Dollar N$
New Zealand Dollar NZ$
Oman Real RO
Pakistan Rupee Rs
Panama Balboa B
Peru New Sol S
Romania Leu L
Russia Ruble R
Rwanda Franc RF
Saudi Arabia Real SRIs
Sri Lanka Rupee SLRs
St. Lucia Dollar EC$
Thailand Bath Bht
Togo Franc CFAF
Turkey Lira TL
Uganda Shiling Ush
Uruguay Peso Ur$
Uzbekistan Som
Vanuatu Vatu VT
Venezuela Bolivar Bs
Vietnam Dong Dashed d, or D
Western Samoa Tala Tala
Germany Euro
Wallis Franc CFPF
Yemen Real YRIs
Yugoslavia Dinar Din
Zambia Kwacha ZK
Zaire New Zaire NZ

5.3 TERMS USED IN DOING THE EXCHANGE RATES

EXCHANGE RATES ON BANK NOTES CONVERTED INTO RUPIAH

CURRENCIES VALUE SELL BUY

AUD 1.00 7,165 7,065
CAD 1.00 6,462.79 5,713.54
GBP 1.00 17,345 16,845
HKD 1.00 1,220 1,190
NZD 1.00 5,046.25 4,456.87
SGD 1.00 5,730 5,630
USD 1.00 9,485 9,385
THB 1.00 209.09 184.90
EUR 1.00 11,950 11,650
JPY 100.00 88.15 85.15

COMPLETED CURRENCY PURCHASE/SALE FORM

CURRENCY PURCHASE/SALE
Bank and dealer XYZ Bank, Simon
 Currency and amount IDR 71,650,000
Rate of exchange 7,165
Value date December 10
AUD amount 10,000
Date December 12
Notes: Receives IDR, our IDR a/c at XYZ Bank, Medan

5.4 LANGUAGE EXPRESSIONS AND VOCABULARIES USED IN DEALING

WITH RATE OF EXCHANGE

5.4.1 LANGUAGE EXPRESSIONS

ASKING FOR AND TELLING RATE OF EXCHANGE

 What is the exchange rate of 1US$ to IDR?

 What is the selling rate of 1S$ to Ringgit?
 What is the buying rate of……?

ASKING FOR AND NAMING WORLD CURRENCIES

 What is the currency of Philippines?

 It is Peso.

Read this conversation and make your own based on the situations given below.

Ann goes to bank to withdraw some money.

Ann Can I cash a Eurocheque, please?

Teller Certainly. Can I have your ID Card, please? How much would you like?

Ann Fifty pounds.

Teller Sign here, please. How would you like it?

Ann Four tens and two fives, please. And what’s the exchange rate today?

Teller Rp 17,000. Would you like to exchange some?

Ann Yes. Please give me Rp 250,000.

Teller Here they are. Four tens and two fives and Rp 250,000. Is there anything I could
help you, ma’am?

Ann No, and thank you very much. Good morning.

Teller Good morning. And please come again any time you need our service.

Practice 1: Role Play

Making a dialogue: Calculating Exchange Rates

Customer: You are going to study in Australia. So you have to send the Tuition Fee by
Bank Draft. You have IDR 56,000,000 to change into Australian Dollars. You go to a
bank and ask the teller what the spot rate exchange is. You agree with the rate. Tell
the teller you want to buy a Bank Draft.

Bank Teller: You tell the customer the spot exchange rate. Ask how much the customer
wants to change. Fill up the form. Say thank you for the deal.

Practice 2: Exchanging Currencies

Role Play

Customer: You are going to spend your holiday in Singapore. You need some cash, then
you go to the Bank and change IDR 5,000,000 into Singaporean Dollars. Ask the teller
what the effective today’s rate exchange is. Tell the teller that you agree with the
rate.

Teller: Help the customer to buy S$ (Singaporean Dollars). Teller the customer the
effective today’s exchange rate. If the customer agrees, ask how he/she likes the
money such as what denomination of each bank notes he/she wants.

Practice 3: Buying and Selling Foreign Currencies

Customer: You just returned from your holiday in Singapore. You have some cash of
50S$, so go to the bank and change into IDR. Ask the Teller what the effective today’s
rate exchange is. Tell the Teller that you agree with the rate.

Teller: Help the customer to change S$ (Singaporean Dollars). Tell the customer the
effective today’s exchange rate. If the customer agrees, ask how he/she likes the money
such as what denomination of each bank notes he/she wants.

TOPIC 6

PAYMENT

I. LETTERS REQUESTING PAYMENT

A. Opening paragraph

Sending out invoices

 The enclosed invoices cover goods supplied to your order No. …….of…..
 We enclose herewith our invoice No. ….amounting to $/Rp ………..
 Will you let us have your check for the amount of the enclosed invoice No. …
 amounting to $/Rp … amounting to $/Rp … to over against order No….of….
 We are pleased to enclose our invoice No. ……for the goods your ordered
on……

Sending out statement

 We have pleasure in sending herewith a statement of account for all transactions

in March, 1993. Please check the entries and if you find them correct, kindly
remit the total of $/Rp …………to cover your orders No. …….. No. …….and
No. ………
 We are pleased to enclose/send a statement of your account amounting to
$/Rp……. For all transactions from May up to August 1993.

B. Closing paragraph

 We should be pleased to receive your statement your settlement.

 We should be pleased if you would send us your payment by return.
 We look forward to your remittance by return.

Example:

PROFESSIONAL PAINT
Jln. Pajajaran Raya No. 21
Semarang 12020

Your ref:
Our ref : AR/NA/2B

8th September, 1993

Mr. Taswin R. Micky

Purchase Manager
PT. Indonesia Raya
 29 Jln. Panurukan Baru
Banjarmasin 20002
South Kalimantan

Dear Mr. Taswin,

Subject: Your Order No. 23P

Thank you for your order No. 23P enclosed with your letter of 1 September 1993.

We are pleased to inform you that all goods you ordered are available from stock and
will be shipped to you today on M.V. Jaya Abadi. They should reach you within 7
days.

We enclose herewith our invoice No. 287DC amounting to $ 19,980.00 covering

against your order No. 23P.

We should be pleased to receive your settlement by return

Yours sincerely,

Anwar R. Hasan

Anwar R. Hasan
Sales Manager

Enc.: 1

Answer the following questions.

a. When was the order No. 23P sent?

b. What was enclosed with the letter?
c. When would the goods be dispatched?
d. What discount was given by Professional Paint?
e. How much should be paid by PT. Indonesia Raya?

Example:

PROFESSIONAL PAINT
 Jln. Pajajaran Raya No. 21
Semarang 12020
Jawa Tengah
PT. Indonesia Raya
29 Jln. Panurukan Baru
Banjarmasin 20002
Kalimantan Selatan

Terms : 30 days
Delivery : M.V. Jaya Abadi
Case : LH-DC

For: Professional Paint

Martin S. Wegner

Accounting Manager

Example:

PRO MUSIC
Jln. Cemani Raya Dua No. 255
Bogor 20019
Jawa Barat

Ref: RP/DG/12B

5th June, 1993

Mr. Alwin B. Tando

 Chief Accountant
PT. Music Expert
21 Jln. Mahkota Raya
Ujung Pandang 10007
Sulawesi Selatan

Dear Mr. Alwin,

Subject: Statement – May 1993

We enclose a copy of statement of account for all transaction from 1 April up to 30

April 1993. Please check the entries and if you find them correct, kindly remit the total
of Rp 15,500,000.00.

We would also like to remind you that our terms are 30 days and we would be grateful
if you could arrange an early settlement.

We should be pleased to receive your remittance by return.

Yours sincerely,

Rahadian P. Ramlan

Rahadian P. Ramlan
Accounting Manager

Enc: 1

Answer the following questions.

a. Who sent the statement?

b. How many invoices were enclosed on the statement?
c. What is the total amount to be paid by PT. Music Expert?
d. What was enclosed with the letter?
e. What does “We” in paragraph 2 refer to?

Example: Statement

PRO MUSIC
25 Jln. Cemani Raya Dua Tel: (062) 2786-876
Bogor 20019 Telex: 2786-321
 Jawa Barat

Alwin B. Tando
PT. Music Expert
21 Jln. Mahkota Raya
Ujung Pandang 10007
Sulawesi Selatan

Date: 31 May, 1993

Pro Music

Rahadian P. Ramlan
Accounting Manager

Language Study

 According to our records ………

 We enclose herewith ……………….
 We would like to remind you that ………..

Practice

1. Write sentences to remind your customers for the following:

 a. Full payment must be made within 30 days on receipt of the goods.
b. That their last two accounts have not yet been settled.
c. That your terms are 30 days from receipt of invoice.

2. Send the invoice for the goods to be sent to PT. Banjaran Abadi Raya, 22 Jln.
Mancuaria Raya, Jaya Pura, Irian Jaya. The order No. 22P is for 100 x Cat. Ref. No.
34 at per unit. There is a 15% discount. Terms are 30 days with an additional 2.5%
discount if the goods will be dispatched in three cases market DCI/DC2/DC3 and will
be shipped on M.V. Jaya Tunggal Satu.

3. Senad a statement to PT. Pollima Inti Raya, 23 Jln. Sukadana Raya, Manado 12000,
Sulawesi Utara. The items are invoices No. 23T on 23 July for Rp 23,500,000.00 No.
25B on 29 July for Rp 14,750,000.00 and No. 63Z on August for Rp 21,000,000.00.
terms are 30 days.

II. ACKNOWLEDGEMENT PAYMENT

1. To accompany payment

A. Opening paragraph

 Thank you for invoice No. ……..of……………….

 Thank you for your letter of …….and enclosed invoice No………
 We have received your letter of ……and enclosed invoice No. …….

B. Reporting an instruction/action

 We have instructed our bank to remit the sum of $/Rp …… for the credit of your
account at bank…………
  We enclose herewith our cheque No. ……amounting to $/Rp ………in
settlement of your invoice No. ………

C. Closing paragraph

 Please send us your official receipt for this settlement.

2. To acknowledgement payment

A. Opening paragraph

 Thank you for your letter of ……..advising as that you have instructed your bank
to remit the sum of $/Rp ……………….
 Thank you for your credit transfer you have made to our account at bank……
 Thank you for your letter of ……….enclosing a cheque for $/Rp ……….in full
settlement of our invoice No…………

B. Describing action

 Our bank has advised us that they have received 5 the amount of $/Rp
…………..in settlement of our invoice.

C. Closing paragraph

 We thank you for your prompt settlement of the invoice and look forward to
receiving your next order.
 We enclose our official receipt and hope you will be satisfied with the goods we
sent.
 We are pleased to enclose our official receipt and look forward to receiving your
next order.
Example: Reply

PT. INDONESIA RAYA

Jln. Panurukan Baru No. 29
Banjarmasin 20002
Kalimantan Selatan
Your ref. : AR/NA/2B
Our ref. : SM/FA/12

15th September, 1993

Mr. Martin S. Wegner

Accounting Manager
Professional Paint
Jln. Pajajaran Raya No. 21
Semarang 12020
Jawa Tengah

Dear Mr. Martin,

Subject: Invoice No. 287/DC

We have received your letter of 8 September and enclosed invoice No. 287C.

We have instructed our bank to remit the sum of US$19,980.00 for the credit of your account
at Bank Panca Niaga Semarang.

Please send us your official receipt for this settlement.

Yours sincerely,

Surya M. Kasman
Surya M. Kasman
Accounts Manager

Enc.: 1

Answer the following questions.

a. What is the subject of the letter above?

b. What does “We” in paragraph 1 refer to?
c. What did they do to remit the money?
d. How much did they remit to settle the payment?
e. What did they ask for with the letter?
Example: Reply

PROFESSIONAL PAINT
Jln. Pajajaran Raya No. 21
Semarang 12020
Jawa Tengah
Your ref: SM/FA/12
Our ref. : MS/T/2C

25th September, 1993

Mr. Surya M. Kasman

Accounts Manager
PT. Indonesia Raya
29 Jln. Panurukan Baru
Banjarmasin 20002
Kalimantan Selatan

Dear Mr. Surya,

Subject: Invoice No. 287/DC

Thank you for your letter of 15 September advising us that you have made a credit transfer to
our account at Bank Panca Niaga Semarang.

Our Bank has also advised us that they have received the transfer you made.

We thank you for prompt settlement of the account and enclose our official receipt.

Yours sincerely,

Martin S. Wegner

Martin S. Wegner
Account Manager

Enc.: 1
Answer the following questions.

a. What was Mr. Martin S. Wegner?

b. Why did Mr. Surya reply to the letter?
c. Has the payment been made?
d. What did their bank advise?
e. What did they enclose with the letter above?
Language Study

 We have instructed……………
 Our bank has also advised us………..
 Thank you very much for…………….

Practice:

1. Write sentences to describe payment for the following:

a. Transfer – completed – 23 July

b. Payment – sent – to your bank
c. Check – credited – to your account

2. Write a letter from PT. Data Internusa Raya, Jln. Pinang Raya 24, Jakarta 10007 to PT.
Delta Molita, 27 Jln. Griya Agung Utama Medan 32001, Sumatera Utara. PT. Delta
has received a letter and invoice No. 11A date 15 August, and has asked their bank to
transfer Rp 23,000,000.00 to PT. Delta’s account at Bank Nusa Raya in Jakarta.

3. Write a letter from PT. Delta Molita to PT. Data Internusa. Acknowledge the receipt of
their letter and say that their bank has received the transfer made by PT. Data Internusa
and enclose their official receipt.

1. First reminder

A. Opening paragraph

 We wish to draw your attention to our invoice No. ……..for the sum of
US$/Rp……… which we have not yet received.
 We should be glad if you would pay attention to our invoice No……..dated
…….which still remains unpaid.
 We notice that our invoice No………..which has due for payment on ………still
outstanding.
 We regret having to remind you that we have not yet received payment of the
balance of US$/Rp………….
B. Closing paragraph

 We should be glad to receive your cheque by return.

 We look forward to receiving your remittance by return.
 We trust you will settle this amount within the next few days.

2. Second reminder

A. Opening paragraph

 We hope it will not be necessary to send you any further reminders.

 We trust you will now attend to this matter without further delay.
 On…………we wrote reminding you that on………we sent you our statement for
May, 1993 showing a balance of US$/Rp ………outstanding and due for payment
by April.
 We have not heard from you we wrote on ………about the unsettled balance of
US$/Rp………..on your account.

B. Closing paragraph

 We hope it will not be necessary to send any further reminders.

 As the amount is considerably overdue, we should be pleased to receive your
payment by return.

3. Third reminder

A. Opening paragraph

 As we had no reply to our previous requests for payment of our invoice

No………dated ………..we must now ask you to remit the account due by the
end of this month.
  We note with surprise and disappointment that we had no replies to our two
previous requests for payment of our invoice No……dated……………..
 It is very difficult to understand why we have not heard from you in reply to our
two letters of…………….and…………………

B. Closing paragraph

 Unless we receive your settlement by the end of this month, we shall have no
choice but to take other steps.
 Unless we receive your Unless we receive your payment in full settlement by the
end of this month, we shall instruct our solicitor to recover the amount due.

Example: First Reminder