Other Business Documents (LO3) Flashcards
LO3 (21 cards)
What are 8 other bz docs?
Bank statement
Budget variance report
Delivery note
Goods received note
Repair request form
Payslip
Receipt
Remittance advice
What is a bank statement?
This doc is sent by a bank to customers e.g. traditionally sent monthly but it can be available via mobile banking at any time. Moreover, it provides a summary of the transactions that have taken place during the period.
What does a bank statement show?
The opening balance
Money leaving the account
Money paid into the account
The closing balance
What is a budget variance report?
It is an internal docs that is used to inform bz decisions e.g. usually analysed by managers and it is used to identify areas where the business is performing better or worse than expected.
What does variance refers?
Variance - difference between forecast, or budgeted, figure and the actual figure.
How do you calculate variance?
Variance= actual data - budgeted data and variance (%)= actual data - budgeted data / budgeted data x 100
What is favourable variance?
The actual figure is better than the budgeted figure. A favourable outcome will have a positive outcome on profits.
What is adverse variance?
The actual figure is worse than the budgeted figure. An adverse outcome will have a negative outcome on profits.
What is the problem with adverse variance and favourable variance?
They are not always going to be positive or negative answers.
What is a delivery note?
This is doc is sent by a supplier with goods that are being delivered to a customer. As it confirms the items and the quantities that are being delivered in this consignment.
What is one advantage of delivery note?
Customers can check that the correct goods and quantities have been delivered e.g. a signature is usually required and any discrepancies can be highlighted on the doc.
What is a goods received note?
This is an internal doc used to confirm that all of the goods ordered have been received. This can be used by the accounts staff to check out that goods which is a firm has been invoiced for have in fact been received. Also, this will often require a second signature to confirm accuracy. This is because many bzs use an electronic equivalent of this doc rather a paper version.
What is a remittance advice?
This is a doc that is sent by a customer to a supplier to confirm that payment of an invoice has been made. This has been traditionally sent with cheques, it is now usually used to inform suppliers when BACS payment has been made.
What does a remittance advice confirm?
The invoice that has been paid
The amount that has been paid
The date payment is being made
What is a receipt?
This is a document where it provides evidence that goods or services has been paid for (issued by a supplier).
Why is a receipt important?
Provides proof of purchase.
What does a receipt state?
The date of purchase
The items purchased
The payment method
What is a payslip?
This is an internal doc that provides a record of the pay that they have earned and received.
What are the important pieces of information highlighted in a payslip?
-Employee details and payment date
-The details of their gross pay (what they have earned) including their basic wages or salary and any additional payments
-A summary of payments and deductions for their pay period but also tax year to date
What is a repair request form?
An internal doc, which is used by large bzs to inform maintenance staff of fault such as equipment
What are the important pieces of info when it comes to a repair request form?
A description of the fault
The location of the fault
Who is reporting the fault
