3.1 Being Able To Use Business Documents Flashcards
What is meant by transaction documents ?
These are the financial exchanges between the customer and business.
What are some transaction documents ?
Cash on deliver (COD) - where people pay on the day it’s been delivered rather than beforehand.
Errors and emissions excepted (E&OE) - a disclaimer on a invoice which reduces the liability of errors happening.
Terms and conditions (T&Cs) - restrictions and clarifications on delivery.
Terms (terms 30 days) - a period of time for payment.
What are typical transaction documents ?
Purchase order
Invoice
Credit note
Statement of account
what is a purchase order ?
This is a legally binding document that states what the buyer has purchased, when he purchased it, prices, delivery dates and payment terms.
what is a invoice ?
this is a document a business uses to request payments from customers for goods and services provided.
What is a credit note ?
These are used if there is a problem with the product u have received, whether they are unwanted, damaged or faulty.
This can be redeemed at its value for future purchases.
What is a statement of account ?
Similar to a bank statement but it’s issued from a supplier to a customer stating all transactions that have taken place over the course of a time.
Why would a business rather offer a credit note over a cash refund ?
Businesses may offer a credit more as opposed to a full refund because it’s a quicker system and allows for a business not to lose out on money (profit). Instead customer can buy something else in the store for the same price.
How does the statement of account protect both the buyer and the supplier ?
If a business sells a lot of one item, they may order more and this will keep track of how many of these products are coming in which is beneficial as it also helps suppliers by delivering the products on time.
What is meant by employee documents ?
Travel expense claim form
Many companies will pay for travel expenses of their employees, this can be paying for train tickets etc.
What are other internal documents ?
Petty cash voucher
Stock requisition form
IT requisition form
Reprographic requisition form
What is meant by petty cash ?
Petty cash voucher is used to pay for small items that the business may need. For example tissue, stamps etc.
This petty cash voucher comes with a receipt for evidence and on the form it will contain a budget.
What is meant by stock requisition form?
This is a form that is completed when items need to be ordered in. E.g stationary items.
This will then be sent to the purchasing department for authorisation. And to ensure that all orders have been made and not over ordered and to prevent miscommunication.
What is meant by IT Requisition ?
This is similar to stock requisition, instead they order IT equipment. For example Computer, laptops, printers etc.
This will also be sent to the purchasing department for authorisation and proof of purchase.
What is meant by reprographic requisition form?
This is completed by an employee when they require photocopying to be done.
It will be left in a tray for the photocopying person and will be completed by a required time and date.
