Business Documents Flashcards
List the 8 possible business documents in the correct order.
1) Letter of Enquiry
2) Quotation
3) Order
4) Delivery Note
5) Invoice
6) Credit Note/Debit Note (Reduces the amount of invoice)
7) Statement (All invoices, credit notes+payments)
8) Receipt
What is the importance of business documents?
Business documents provide a record of a business’ transactions with other businesses and customers.
What is outlined in a letter of enquiry?
A letter (or email) of enquiry is sent by the buyer to the seller asking about particular items and their terms of sale.
What are terms of sale?
Terms of sale are the conditions attached to the sale of a product.
What is outlined in a Quotation?
A quotation is a written document that is sent by a seller to a potential buyer and shows the price of the goods and any terms of sale.
What will be outlined on a quotation in relation to delivery?
If the quotation says ‘carriage paid’ the seller of the goods will cover the cost of delivering the goods to the buyer. Otherwise, they will give a cost for postage or a courier.
What is E&OE?
This stands for errors and omissions excepted. This means that the business will not be held responsible if an error has been made and can alter the price in the case that it has.
What is ‘Price held’?
The prices quoted might be valid for only a limited time. This encourages the customer to order quickly.
What is ‘Trade Discount’?
This is a reduction of the selling price given to business customers. It is subtracted before the VAT is added on.
