Financial Documents for Sales Flashcards
Seller
a person who sells something
Price Quotation
giving a fixed price for a product to a potential buyer
Purchase Order
a doc sent to the seller indicating what goods/services the buyer requires
Delivery Note
a doc sent to the buyer with the goods, detailing what has been sent
Invoice
a doc indicating the amount owed to the seller and the required payment date
Returns Note
a customer returning goods they have bought
Credit Note
a doc issued by the seller of the goods/services reducing the amount owed by the buyer
Statement
summarises invoices, credit notes issued, payments received and money owed by the buyer
Coding
doc references using numeric, letters or alpha-numeric identification systems
Discrepancies
unintentional mistakes in financial docs
Value Added Tax
a government tax on sales- calculated on invoices and credit notes
Product Code
catalogue number which appears on the original purchase order and delivery note
Description
the goods must be specified precisely
Quantity
the amount of goods requested by the buyer
Price
the price set for each good/service and what they buyer pays
Unit Price
a products average price- the unit is counted and charged for
Total
unit price * number of units
Net
the amount due to the seller after deduction of trade/bulk discount and before VAT is added on
Goods Total
the amount due to the seller
Total
VAT + Goods Total: final amount due to seller
Net Monthly
full payment of an invoice should be made within a month of the invoice date
Carriage Paid
the price of goods includes delivery
E & OE
Errors and Omissions Excepted- if there is an error or incorrect final price, the supplier can demand the correct amount
Consignment
a batch of goods destined for or delivered to someone
Statement of Account
shows what is owed by the buyer to the seller
In the Statement of Account:
- balances owed at the start of the month (debit column), balance b/f (brought forward)
- payments received from the buyer (credit)
- invoices issued for goods supplied- full amount due (debit)
- refunds made on credit notes, with VAT (credit)
- the running balance, final net total of all items
- bank details required for making payments by BACS or faster payments
BACS Payment
payment made directly from one bank account to another
Faster Payments
payments arrive quickly between the banks
HMRC
government department that collects taxes, payments and issues NI numbers
Discrepancies can occur:
- before the doc is issued- in the internal checking process
- the buyer finds the discrepancy after doc has been issued
