Chapter 5 key words

Question 1

BACS transfer

Answer 1

Banks Automated Cleaning Service- an automated payment method

Question 2

Delivery Note

Answer 2

The document sent by the supplier with the goods detailing which goods, and in what quantities, are being sent.

Question 3

Goods Received Note (GRN)

Answer 3

An internal document completed by the buyer on receipt of the goods showing the quality and condition of the goods received.

Question 4

Goods Returned Note

Answer 4

The document sent by the customer to the supplier detailing the goods returned and the reason for their return.

Question 5

Purchase Order

Answer 5

The written document sent from the buyer to the supplier detailing the goods that are being ordered and the agreed price

Question 6

Reconciliation

Answer 6

A check of a supplier statement of account against the business’s purchase ledge, and finding reasons for any discrepancies

Question 7

Remittance Advice Note

Answer 7

A document setting out exactly how a payment is made up

Question 8

Tendering

Answer 8

The process of requesting and receiving quotations from several suppliers

Question 9

Timing difference

Answer 9

A reason for a variance in a reconciliation- for example a payment has been made but has not yet reached the supplier’s account when the statement is prepared.