Chapter 5 Recording Credit Purchases Flashcards
What is the first stage in the purchase process?
To identify a number of potential suppliers and request a quotation from each of them.
What happens once a supplier has been selected?
the business will place an order using a purchase order
What are ordered goods accompanied by?
A delivery note
What should happen when a delivery note is received?
It must be checked and signed as evidence that the stated quality of goods was delivered
What should happen when an invoice is received
It should be carefully checked against the order and delivery documents to make sure the details are correct and that it is correctly calculated.
What should happen is any related credit note is received?
It should be checked to make sure it resolves the discrepancy and to make sure the details and calculations are correct.
Will there be a delivery note or GRN for invoices for services?
No
Although no delivery note or GRN will be received for invoices for services what is still required?
Evidence that the service has been provided and that the amount charged is reasonable or the agreed amount
What must happen after all check have been carried out between the statement of account and the business purchase ledger?
it must be Passed for payment
What kind of total is used to calculate the percentage for a prompt payment discount?
Net
What must happen before any invoice can be paid?
They must be authorised
When will a remittance advice note be sent?
With any payment to the supplier, detailing the invoices and credit notes being paid.
