The purpose, interpretation and completion of business documents - 3 Flashcards
(32 cards)
3.1 Transaction Documents
A transaction document records a transaction between two parties such as a supplier and customer. it can be printed or electronic. It may contain; COD, E&OE, T&Cs, terms
3.1 COD (Cash on delivery)
Pay for goods on delivery rather then before or after
3.1 E&OE (errors and omissions expected)
A disclaimer or invoice showing that the supplier is attempting to reduce any legal liability due to administrative errors or inaccuracies.
3.1 T&C (terms and conditions)
restrictions or statements relating to delivery charges, delivery arrangements or payment terms.
3.1 Terms (e.g. terms 30 days)
The time by which payment is expected
3.1 Purchase order
legally binding document between supplier and customer/buyer. It lists the items that the buyer has ordered and an agreed price.
3.1 Invoice
This is a document issued by the business to customers requesting payment for goods and services.
3.1 Credit note
This is sent by the seller/supplier to the customer e.g. if the goods have been damaged in transport or an error has been made on the invoice such as an incorrect discount being applied. the credit note can be offset against future purchases or a refund can be given.
3.1 Statement of account
This is issues by a supplier to a customer, usually at the end of each month. This states all transactions over the last period including details of invoices issued, payments received and credits applied. The final amount shows the total owed by the customer at that date.
3.1 Travel expense claim forms
When an employee travels as part of their role, they can claim on things including; petrol costs, train fares, taxi fares, parking and sometimes refreshments. if the employee uses their own car they must record journey mileage as petrol costs are usually reimbursed at ‘x’ pence per mile. They need to be singed by the line manager to confirm that the journey was necessary and that only necessary claims are being made.
3.1 Petty cash voucher
A form that records the amount removed from petty cash. Usually the employee will need to provide which will be attached to the petty cash voucher as proof of purchase.
3.1 Stock requisition form
This is done when goods need to be ordered for relevant use e.g. printing paper or filing cabinet. The completed form is sent to the purchasing department. then if the purchase is necessary they order it on behalf of the employee/department.
3.1 IT requisition form
A request for IT equipment to be ordered such as laptops, printers and portable hard drives. Similar to the stock requisition form, it is completed by the employee or manager requesting the equipment then forwarded to the purchasing department once authorised by a senior member of staff.
3.1 Reprographics requisition form
Completed by an employee requiring either photocopying to be done or other reprographic services e.g. booklets being produced or signs being laminated.
3.2 Bank statement
Summary of transactions in and out of a bank account over a period of time, usually a month. The account will be monitored by checking the inflows and outflows recorded on the bank statement against the business’s own financial records. the bank statement also indicated the funds available for making purchases or paying bills.
3.2 Budget variance report
The difference between budget income and expenditure and the actual income and expenditure figures. The budget variance report summarises these differences and helps make decisions such as; Do costs need reducing? Why is revenue falling?
3.2 Delivery note
A document that accompanies a shipment of goods. Details he produces and the qualities delivered. the customer will sign this and confirm that the correct items/ number of items were delivered. Any issues such as missing or imaged items will be highlighted. the supplier then refers to this delivery note when issuing the invoice for this delivery.
3.2 Goods received note
A document used by the customer for checking items received to make sure they match the purchase order. Once checked a copy will be returned to accounts staff, who check the goods received note against the invoice to to ensure the payment is made for the correct number of items.
3.2 Payslip
An employees record of the pay they have received.
3.2 Receipt
This is evidence that goods and services have been purchased and how much was payed for them. likely to detail the date, business that the goods or services has been supplied by and the payment method.
3.2 Remittance advice
Notification sent by a customer to a supplier informing them that their invoice has been paid.
3.2 Request for repair form
This can be an internal document e.g. if the projector breaks a request for repair form can be sent to the maintenance team. it can also be external and sent to an external repair company e.g. if a business leases a photocopier and the contract includes maintenance then a request for repair form can be sent to the leaser detailing the issue. external will require additional information such as company name and address.
3.3 Cheque
a document requesting that a specified sum of money be paid form one persons/businesses bank account into another persons/businesses bank account.
AD - can be sent by post, large amounts of cash don’t need to be handled, the drawer has a record of the payment being made.
DIS - cheques for business accounts usually need to be singed by 2 people which can be time consuming, they can take a while to go through, they can bounce
3.3 Credit card
Enables a person or business to make payments for goods and services, this money is essentially borrowed and needs to be payed back to the bank, if it is payed back no interest will be added.
AD - Payments can be made even if they don’t have the money at the time, protection from fraud, can be used online.
DIS - interest will be charged if the fuel amount isn’t repaid to the credit card company when requested, some businesses charge the payer a fee when paying my credit card, payees must pay a processing fee which reduces the amount of money received.
