Business Documents Flashcards
What is a price enquiry?
A document sent by a customer to a supplier, enquiring as to price/terms of a good/service.
What is a sales order?
A document sent by a customer to a supplier agreeing to the price/terms and confirmation to proceed with the order of goods/services.
What is a goods received note?
A document filled out by the customer on receipt of goods/services detailing the quantity/type of goods/services received.
What is a quotation?
A document sent by a supplier to a customer, detailing the price/terms offered.
What is an order confirmation?
A document sent by a supplier to a customer confirming that the transaction will go ahead.
What is a delivery note?
A document sent by a supplier to a customer, showing the quantities/types of goods/services delivered.
What is a sales invoice?
A document sent by a supplier to a customer, detailing the total amount/Terms of the payment due.
What is a credit note?
A document sent by a supplier to a customer, if goods are returned or original invoice is incorrect.
What does a sales invoice contain?
Name/Address + Delivery address of customer
Name/Address of supplier
Sequential invoice numbering
Date of supply
Suppliers VAT registration number
Delivery reference
Details of goods supplied
Rate of VAT on goods
Goods total
Trade discount deducted
VAT charged
Total payable by customer
Details of prompt payment discount or cash discount
What are the 3 common types of discount offered to customers?
Trade discount (% deducted for valued customers - shown above total payable)
Bulk discount (% deducted for quantity of goods purchased - shown above total payable)
Prompt payment discount (% deducted for payment within a certain time period - shown below total payable)
What is a ledger code?
Ledger code is a unique reference given to different types of income, expenses, assets and liabilities. It may also be referred to as a general ledger (GL) or nominal code.
What is a customer account code?
Customer account code is a unique reference given to each individual customer of an organisation.
What is a supplier account code?
Supplier account code is a unique reference given to each individual supplier of an organisation.
What is a product code?
Product code is a unique reference given to each type of product of an organisation.
What are the five stages of the accounting system?
- Financial transactions
- Financial documents
- Books of prime entry
- Ledger accounts
- Trial balance
