Important Business Documents Flashcards
Auditing
Auditing of the accounts of a business is carried out to provide an objective and independent examination of financial statements
Letter of inquiry
A person wishing to buy Goods will try to find out information about them thus this letter will be sent requesting information such as:
Specifications
Prices
Dispatch and delivery Arrangements
Pmn procedures
Quotation
Having received the inquiry the said I will send a quotation that says what the can offer.
What details does the quotation give
Price and specification
Trade discount
Quantity discount- encourages a larger order
Cash discounts - given to prompt quick payment
Purchasing order
If the buyer finds a quotation satisfactory she will send the seller unofficial order which advises him, the goods that are required, the place of delivery, the date of delivery, the agreed price
What is a requisition
This is an internal request for supplies
Acknowledgement of order
Upon receiving an order from a buyer the seller will usually send an acknowledgement stating
That the order has been received
That the order is accepted and will be supplied
When dispatch is anticipated
Advice note
Send ahead of the goods to advised the buyer that the goods are on the way
Delivery note
Usually arrive packed in with Goods the buyer will check got the items received correspond to the items under delivery note
Invoice
It is send by the seller to the buyer to advise how much is old for a particular delivery of goods
It states the quantity of goods supplied
The individual prices
The total amount owed
Discounts for prompt payment
Pro-forma invoice
Used with a new customer
The seller will send the buyer a pro-forma invoice which will charge for goods in advance
Credit note
A document showing the reduction India amount charged
Debit Note
An invoice which makes on additional charge
Statement of account
A statement by the seller demanding payment are the end of each month to sum up all transactions
