Flow Of Documents Flashcards
What is the order of flow of documents?
Purchase Order Delivery Note Goods Received Note Invoice Credit Notes Statement of Account Remittance Advice Slip Cheque Receipt
What is the flow of documents regarding to buyer and to seller?
A Purchase order goes TO THE SELLER
A Goods Received Note goes TO THE BUYER
An Invoice goes TO THE BUYER
A Credit Note goes TO THE BUYER
A Statement of Account goes TO THE BUYER
A Remittance Advice Slip goes TO THE SELLER
A Cheque goes TO THE SELLER
A Receipt goes TO THE BUYER
What is a Purchase Order?
A Purchase Order are documents requesting businesses to supply goods and services to customers
What is a Delivery Note?
A Delivery Note arrives with the goods delivered and are signed by the receiver (customer,) to confirm that the goods are correct and undamaged. This is then returned to the seller
What is a Goods Received Note?
A Goods Received Note is a copy of the Delivery Note left with/ sent to the buyer
What is an Invoice?
An Invoice is a request for payment, listing the products supplied and the amount owing, sent by a business to a customer
What is a Credit Note?
A Credit Note is a document that tells customers that they need to pay less than they were previously asked, or that a refund is due
What is a Statement of Account?
A Statement of Account is a document, sent to a customer listing all previous invoices and stating the amount of money still owing
What is a Remittance Advice Slip?
A Remittance Advice Slip is sent by a customer to confirm which invoices are being paid (it is usually sent with payment)
What is a Cheque?
A Cheque is a document that instructs a bank to pay money from one account to another
What is a Receipt?
A Receipt is a document sent by a supplier to a customer to confirm that payment has been received
What is a Remittance Advice Slip usually sent with?
A Remittance Advice Slip is usually sent with a payment; this is typically a Cheque
What is a discount?
A discount is a percentage that is removed from the total amount, a discount is always applied before VAT
What is VAT?
Value Added Tax
It is added to the total amount and it is usually around 20%, when used with a discount it is applied after the discount
What are the consequences of incorrect documents?
The business can be undercharged, or overcharged
Receiving too many or little products/services, or receiving different products/ services
Not receiving products at all
