Completing and Using Business Documents (LO3) Flashcards
(26 cards)
How can you record info?
Keeping the records accurate.
What 3 types of bz docs that staff within a bz need to be able to use and complete?
-Transaction docs
-Employee docs
-Internal docs
What is transaction docs?
These are docs used when goods or services are bought from suppliers or sold to customers
What are 4 key bz docs used in transaction?
-Purchase order
-Invoice
-Statement of account
-Credit note
What is a purchase order?
This is a legally binding doc that is completed by the buyer who wants specific goods or services. Furthermore, should be accurate to avoid delays and ordering incorrect items.
How would you complete a purchase order?
-The data the order is placed, and if necessary, the data the order is required by
-A purchase order number is given to identify the order in other paperwork
-The address of the supplier and the address of the delivery should be made to
-Should be signed by at least one person
-It should be sent via an official bz email address or an letter headed paper
-A list of items being order and for each item: the quantity required, a description of item, any item code, price per item that the buyer expects to pay
What is an invoice?
An involve is a bz doc that is completed by the seller to request payment for goods or services. Furthermore, should be accurate to ensure correct payment is made on time.
How would you complete an invoice?
-The date of issue along with invoice number should be provided for reference
-The address delivery has made to, and invoice to be sent to
-The list of items payment is requested for: The quantity provided, a description of the item, any item code, the price per item, the total for each item, the total due (including tax delivery)
-Use an official email address or letter headed paper
-The purchase order number is quoted so the customer knows which order the invoice is for
-Payments terms should be stated e.g. ‘30 days’ requires payment within 30 days requires cash on delivery (COD)
-How to make payment, terms and conditions (T&Cs) and errors and omissions being excepted (E&OE) are standard
What is a credit note?
This is a doc that is issued by a supplier due to invoice errors, or for returned goods or services. Furthermore, indicates the supplier is reducing the amount owned by a customer.
How to complete a credit note?
-The date a credit note is issued
-The PO number is given to identify the order credit is being given for
-The address of the customer
-A list of the items being credited, identifying: The quantity credited, a description of the item, any item code, the credit per item, the total credit per item
-It should be sent via official bz email address or an letter headed paper
-A credit note number is stated for reference
-The account number that the credit has been applied to
-The reason that credit has been given
-The total amount of credit, including tax, that has been given
What is statement of account?
This is a bz doc that is sent by a supplier to a customer usually at the end of each month. Furthermore, summaries all their transactions since the previous statement.
How to complete a statement of account?
-The date of the statement: Any transactions after this date won’t be included
-The customer’s account info will be given, along with how much credit they have been authorised to have.
-The closing balance shows the total amount owned by the customer on the date of the statement.
-Uses an official email address or letter headed paper
-The address of the customer
-Any transactions since the previous statement are listed: Debits represent increases to the amount owned to the supplier e.g. orders placed. Also credits represents reductions in the amounts owned by the supplier e.g. credit notes.
What is an employee docs?
Where staff who travel (as part of their job) will need to claim expenses.
How can a staff claim their expenses?
Travel expenses claim form.
What are different ways a staff can record any expenses that they wish to claim whilst travelling?
-Petrol or diesel costs
-Parking fees
-Train or bus or plane or taxi
-accommodation costs
-other subsistence e.g. food, drinks, etc
How can staff provide a copy of receipts?
Taking a photo using a mobile device.
How does a travel expense form look like?
-Employee’s info ensures that the correct person is reimbursed
-The details of each expense being claimed are provided
-Mileage costs will need to be calculated e.g. 159 miles at 50p each
-Employee is required to sign and date that expense is accurate
-Budget code should be given for accounting purposes
-Totals will need to be calculated (often done automatically)
-The expense claim will need to be signed by a budget holder e,g. line manager
What are 4 types of internal docs used for transactions?
-Petty cash voucher
-Stock requisition form
-IT requisition form
-Reprographics requisition form
What is a petty cash voucher?
It is a type of docs where business will hold a small amount of cash to reimburse staff for purchases such as stamps and stationery. Furthermore, items purchased will be listed, along with the amounts spent and receipts will need to be attached.
What is a stock requisition form?
This is a type of form or docs used to order materials that are used within a bz e.g. raw materials or equipment
What can a stock requisition form do?
-List the items
-Stating how many are required
-Quote any product codes
-State when the items are required by
-Be authorised by a budget holder
-Be passed to the purchasing department once completed
What is IT requisition form?
This is a type of form or doc that is used specifically to request computer related equipment.
What does the IT requisition form include?
Desktop computers
Laptops
Tablets
Mobile phones
Printers
What happens once the IT requisition form is authorised?
It will be passed to the IT support team before being passed down to the purchasing department.
