L03 Flashcards
What is cash on delivery?
Payment for goods on delivery rather than before or after
What is errors and omissions excepted?
A disclaimer on and invoice or similar transaction to show supplier has reduced legal liabilities for miscount in large numbers
What is T&C’s
Restrictions or statements relating to delivery charges , payment terms
What are terms
The time by which payment is expected
What is a purchase order
Legal document between supplier and buyer which lists items bough and purchase price.
States delivery date and payment terms
What is an invoice?
a business issues to customers requesting payment for goods and services
What is a credit note
Sent by seller to buyer of goods have been damaged or error has been made on invoice. Is an offset for future purchase or refund given.
What is a statement of account
Issued by supplier to customer at end of each month states all transactions over the period including invoices payments received and credits applied. Final balance shows total owed by customer.
What is a document used for an payment to employee
Travel expense claim form
What internal documents can be used
Petty cash voucher
stock requisition form
IT requisition form
Reprographics requisition form
What is a petty cash voucher?
Held to reimburse staff for small purchases made on behalf of business
What is a stock requisition form?
Completed when goods need to be ordered for relevant use
What is a IT requisition form?
Request for IT equipment to be ordered or purchased
What is a reprographics requisition form?
Completed by an employee requiring either photocopying or other reprographics services , e.g booklet being produced or paper laminated.
What is a bank statement
Summarises transactions into and out of bank account over a period of time
What is a budget variance report?
A budget variance is the difference between budgeted income and expenditure , useful in decision making
What is a favourable variance
Figures are better than budgeted figures
What is it when the figures or worse than budgeted figures in budget variance report
Adverse variance
What is a delivery note
Document that accompanies shipment of goods which details products and quantities delivered. Customer needs to sign to confirm delivery
What is a Goods received note
Documents used by the customer for checking items received to ensure they match purchase order.
What is a payslip
Employees record of the pay they have received.
What is a receipt
Evidence goods or services have been purchased and the amount paid.
What is remittance advice
Sent by a customer to supplier to inform them their invoice has been paid, usually when payment done online.
What is a request to repair form
Internal document to request repair for printer for example.
Also be external if a company lease a photocopier and contract includes maintenance.
What is a cheque
Document that requests one amount of money is taken from payers bank account to payee
What are the advantages to the payer of cheque
Can be sent via post
Large amounts of cash do not need to be handled
Payer has a record of payment being made
What is disadvantage to payer of cheque
Cheques need to be signed by two people which is time consuming
What is advantages of payed of cheque
Safer to carry cheque rather than large amounts of cash to bank
Disadvantage of cheque to payer
Must be paid in bank
Errors cause delayed payment
Cheques have to be clear
Cheques can bounce if payer has sufficient funds
What is a credit card
Enables payer to make payment without the funds in bank
What is advantages to the payer of a credit card
Payment can be made even if insufficient funds in account
Degree of protection from fraud
Can be used online
Disadvantage to payer of using credit card
Charged interest in full amount isn’t repaid by given date
Sometimes a fee for using credit cards
Advantages to the payee of credit card
Credit card company authorised payment
Disadvantage of credit card to payee
Payees must pay pay a processing fee which reduces amount received
What is a debit card
Funds transferred from payers bank directly into payees bank
Advantages of payer of debit card
Large amounts of cash need to be handled
Can be used for online payments
Disadvantage to payer of debit card
Some businesses charge additional fees to customer
If sufficient funds not in bank account payment cannot be made
Advantage to payee of debit card
Payee is guaranteed to get payment
Disadvantage to payee
Payee must pay a processing fee
