Business Documentation

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1 Introduction

The purpose of this chapter is to list the various business documents that the examiner expects you to be aware of.

2 Business Documents

Quotation

Details of the proposed price of goods or services to be supplied

Sales order

Details of the quantities ordered by the customer (which can be used by stores for packing the order, and by the accounts department for preparing the invoice).

Purchase order

Details of the quantities ordered from the supplier (which can be used to check against when the goods and invoice are received).

Goods received note

A list prepared by stores of the quantities of goods that have been received from the supplier (which can be used to check against the invoice and against the purchase order).

Goods despatched note (or delivery note)

A list prepared by the supplier and included with the goods (which serves the same purpose (and is often used instead of) the goods receive note).

Statement

A list sent to customers of invoices sent and cash received during the period (usually monthly) highlighting any balance outstanding. The balance is often analysed according to its age (for example up to 1 month old, between 1 and 2 months old, etc..)

Credit note

A ‘negative’ invoice issued when a customer has returned goods.

Debit note

Produced by the customer when goods are returned (for checking against the credit note when it received from the supplier).

Remittance advice

Sent by the customer to the supplier giving notification of payment.

Receipt

Issued to the customer by the supplier confirming that payment has been received.