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The goods despatched note and the sales invoice…which one usually comes first? It’s been confusing me in the sales cycle?
Often they are created together as a multipart document. The top copy shows value and the bottom copies only show the description of the goods, customer etc.
If not created simultaneously, I prefer to thing of despatch note then invoice.
From the Dec 2013 question, Oregano(Internal Controls), I identified two deficiencies
which were not in the model answer?
i) Quantities are not checked back to the relevant sales orders. Therefore the wrong
description of goods could be despatched to the customers. Hence Oregano would
lose customer goodwill and subsequently lose its reputation.
ii) Signed GDNs are only given to warehouse team to file. No sign of sending copy to the
accounts dept. Therefore accounting records may be incomplete.Would I be correct if I put them down?
1 The more serious error would be wrong quantities deapatched, but wrong descriptions would be irritating too.
2 You need to expand ii. Not sure why this will lead to incomplete accounting records. The main purpose of signed GDNs is to be able to prove receipt of the goods by the customer.
Regarding point (ii) the signed GDNs are only sent to warehouse department. Yet they are supposed to be multipart. Hence accounting department will not update its records since they have not received a copy of the GDN.
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