Total Order Value

Total Order Value refers to the total amount of all goods or services in an order, typically including unit price, quantity, discounts, freight, insurance, and taxes. It is a core amount in foreign trade contracts, proforma invoices, commercial invoices, and letters of credit, directly related to payment, customs declaration, insurance, and claims. Usage scenarios include: quotations, contract signing, letter of credit issuance, production arrangement, customs declaration, and settlement. Notes: Trade terms (e.g., FOB, CIF) must be specified, as cost composition varies under different terms; currency must be stated to avoid exchange rate risks; if commissions or discounts are included, they should be clearly listed; it is often confused with 'order amount,' but strictly speaking, Total Order Value emphasizes the final payable total, while order amount may refer only to the value of goods. Differences from 'subtotal' and 'net price': subtotal is the sum of line items, net price is the price after deducting discounts. Foreign trade practitioners should ensure that the Total Order Value strictly matches the contract, invoice, and letter of credit to prevent refusal of payment or customs clearance delays.