Authorising and Checking invoices

Question 1

Invoice

Answer 1

a doc indicating the amount owed to the seller and the required payment date

Question 2

Credit Limit

Answer 2

the max amount which the seller will allow the customer to owe at any one time

Question 3

the need to check invoices include:

Answer 3

• purchase order
• seller’s own record of any price quoted
• seller’s file record of the buyer (credit limit & discount) allowed

Question 4

Checks to be made on the invoice:

Answer 4

• correct customer
• correct location
• correct goods
• correct quantity
• correct unit
• correct price
• correct discount (special terms apply?)
• correct calculations on the invoice

Question 5

checks for invoice with trade discount deducted are:

Answer 5

quantity * unit price = total before discount (TBD)
TBD * discount % = discount 
TBD - discount = net total (NT)
NT * VAT % = VAT
NT + VAT = invoice total