FABM 2 Flashcards
are used to document
business transactions
Business forms
The contents of the form give the
reader an understanding of the various
aspects of the transactions such as
(1) quality and quantity
of merchandise requested, ordered,
or delivered;
(2) price agreed upon for the
merchandise;
(3) The person who prepared the form
and;
(4) officers who authorized the
transaction.
These are used only within the company
INTERNAL BUSINESS FORMS
These forms may be used on the side of the seller only or the buyer only
INTERNAL BUSINESS FORMS
document the accountability of the personnel on the transactions
that occur
INTERNAL BUSINESS FORMS
The forms intend to answer the following questions:
1. What are the particulars requested on the form?
2. Who initiated the transaction?
3. Who determined the correctness of the information on the form?
4. Who gave the final authorization to implement the transaction?
INTERNAL BUSINESS FORMS
is an internal report prepared by the buyer’s personnel in charge of receiving
deliveries.
Receiving report
It is used to document the quality and quantity of items received by the personnel from the suppliers
Receiving report
Most companies process
payments through a _________________
voucher
system.
Payments are made by
__________. A _____________ (CV)
is prepared for each check.
check, check voucher
It documents the process for
the preparation, verification,
and authorization of check
payments.
check voucher
The_____________
includes the CV and the
supporting documents such
as the ___________
check voucher package, supplier’s bill invoice, or
statement of account
are also pre
-numbered
and should be used
sequentially
check voucher package
are used by both the buyer and the seller or inside and outside the
company
EXTERNAL BUSINESS FORMS
Are filled out by both parties
EXTERNAL BUSINESS FORMS
These forms evidenced the occurrence of a stage of the transaction.
EXTERNAL BUSINESS FORMS
Below are some of the business forms for discussions:
1. Purchase order
2. Delivery Receipt
3. Sales Invoice
4. Provisional Receipt
5. Official Receipt
6. Bills and Statement of Account
EXTERNAL BUSINESS FORMS
is a form used by the buyer to communicate his
exact orders to the seller.
Purchase Order
The quality specifications and quantity ordered is
indicated on the form.
Purchase Order
issued by the buyer is approved by the
appropriate office.
A valid PO issued
The buyer is required to accept the delivery of the
ordered merchandise as long as it meets the
specifications on the __________
PO
The_____________ signifies his
commitment to making delivery within the specified
period
Seller’s acceptance of the PO
is evidence of delivery,
issued by the seller
Delivery Receipt
The form indicates information on the quality
and quantity of items delivered.
Delivery Receipt
The DR is signed by the ________ to indicate that
the quantity of the items listed had been
received.
buyer
One copy signed by the buyer is taken back to
the ________
seller’s accounting department.
One copy is given to the ____.
buyer
is a communication from the seller to the buyer.
Sales Invoice
It documents the amount of payment that the
seller is claiming
Sales Invoice
approved sales
invoice format includes a breakdown of VAT
computation.
The Bureau of Internal Revenue (BIR)
is computed based on the VAT-inclusive
selling price, referred to as gross price, divided by
1.12.
Net sales
are evidence of payment. Therefore, a buyer who
claims that an account has been settled must be able
to show an official receipt.
Official Receipt
The BIR has an approved format of the _________
Official Receipt
does not constitute the final
settlement of accounts until the buyer’s bank
honors the check
check payment
Some sellers choose to initially issue a __________________ pending clearance of the check issued as
payment.
provisional
receipt (PR)
The seller will issue the ___________ when the check has been
cleared by the bank.
OR
is prepared by the seller and
submitted to the buyer
Billing Statement
lists down the seller’s transactions
with the buyer over a specific period, normally one
month.
Billing Statement
The seller is basically telling the buyer:
a) their sales transactions are identified by sales
invoices and
b) payments they received are identified by the
official receipts.
Also, a _______________ is a reminder to the
buyer of the amount he owes to the seller.
Statement of Account or Billing Statement
The BIR also has an approved format for the
____________
Statement of Account or Billing Statement
FLOW OF BUSINESS FORMS: PURCHASE REQUEST TO THE DELIVERY RECEIPT (Buyer 1)
QUOTATIONS, PR, PO, A-PO, A-PO
FLOW OF BUSINESS FORMS: PURCHASE REQUEST TO THE DELIVERY RECEIPT (Seller 1)
A-PO, DR, DR, Merchandise, DR
FLOW OF BUSINESS FORMS: PURCHASE REQUEST TO THE DELIVERY RECEIPT (Buyer 2)
Merchandise, DR, DR, DR
FLOW OF BUSINESS FORMS: DELIVERY RECEIPT TO SALES INVOICE (Buyer 1)
Receiving Report (RR)
FLOW OF BUSINESS FORMS: DELIVERY RECEIPT TO SALES INVOICE
BUYER – ACCOUNTING DEPARTMENT
A-PO, RR, PR, SALES INVOICE
FLOW OF BUSINESS FORMS: DELIVERY RECEIPT TO SALES INVOICE
SELLER
DR, SALES INVOICE
FLOW OF BUSINESS FORMS: SALES INVOICE TO OFFICIAL RECEIPT
BUYER – ACCOUNTING DEPARTMENT #2
CHECK, PROVISIONAL RECEIPT, OFFICIAL RECEIPT
FLOW OF BUSINESS FORMS: SALES INVOICE TO OFFICIAL RECEIPT
SELLER #2
CHECK, PROVISIONAL RECEIPT, Bank Statement, Official Receipt
FLOW OF BUSINESS FORMS: SALES INVOICE TO OFFICIAL BANK
CHECK, Bank Statement
