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Greetings.
It was really a valuable lecture.
But I got stuck in two places:
1) I understood that the Invoice has to made along with Despatch Note so it is not forgotten to be made later on to collect the money, but why does the invoice have to be faxed to the warehouse and scribble the price black so they cant see it. I dont see the point of the warehouse requiring the invoice copy. Sales staff only need to make and send invoice with despatch note to Accounts department for record.
2) I dont understand why the despatch note and the price blacked out invoice have to be sent to the customer warehouse along with the delivery note. The only thing needed to be signed by customer should be the delivery note. Despatch note is an internal matter and only required upto the security gate so the security know these are not being infact delivered to their families for instance.
Please elaborate, appreciated.
Q1 This describes a common method of handling sales despatch and delivery. After an order has been approved a multi-part document consisting of invoice, despatch note and delivery note. These documents are carbon copies of each other….almost. Details of value are omitted from all but invoices because that information is not needed for despatch and delivery. Indeed, value could encourage theft. The do uments are raised together, as a set, to ensure all processing takes place.
Q2 The despatch note shows gate security that the despatch is legitimate. The delivery note, after signing by the customer, shows that, after despatch, the goods reach the customer.
1) I think you forgot to complete the sentence in sentence no.2
2) So only delivery note has to be signed by customer. Not despatch note. Thanks for clarification.
3) Why make the headache of creating delivery note if its a replica of despatch note. Only despatch note should be required. Hand over responsibility to sales staff to create delivery note called despatch note – which will be shown at security gate and tallied with goods, and later signed by customer as well. All work can be completed by despatch note thus making a seperate delivery note redundant.
But what if the despatch note is lost in sending it to the customer? If a copy isn’t retained the evidence of the despatch will be lost.
Remember that Ken is describing on a “typical” system – the scenario of an exam question may be quite different – but it’s the principles of a “sound” system that need to be understand. Basically you want evidence of each action … but many companies these days don’t bother with “signed for” deliveries to individual retail customers – leaving it instead for 3rd-party delivery service companies to take a photo of where parcels have been left.
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