L2- Source Documents Flashcards
What are your Source Documents?
The documents which details are extracted to be entered in the books of Prime Entry.
Name Your source documents
- Invoices
- Quotations or Pro Forma Invoice
- Purchase Order
- Sales Order
- Goods Received Note (GRN)
- Goods Despatched Note
- Debit Note
- Credit Note
- Remittance Advice
- Receipt
11.Statement of Accounts
What is Quotation or a Pro forma Invoiced?
-Business to Customer
-Reply to customer query
-Estimate cost of product or service
What is a Purchase Order?
-Typically Business to Business
-Description of good required
-Tow copies are made:
-sent to supplies
-kept internally for tracking purchases
-Sequentially numbered
What is a Sales Order (internally)?
-Generated by company ( Supplier/ Seller)
-Typically after a purchase order is received
- Gives details on the order
-Ensure all orders are received
-Sequentially numbered
Explain a Good Received Note (GRN)- Internally
-Generated by stores ( buyer)
-Confirms that ordered goods are received
-Copy forwarded to Acc. dept.
-GRN is matched is purchase order
-outstanding payments will be treated as an accrual
Explain an Invoice
-Supplier to customer
-Demand for payment (remind/ inform)
-May be used as a delivery note ( cash on delivery)
-Details should match sales/ purchase order
Where are the copies of an Invoice sent to?
-Accounts dept. to match with eventual payment
-A delivery note to stores so goods can be despatched
-Sales dept. to record the sale + answer customer queries
What is a Goods Despatched Note?
-Generated by stores
-List of items despatched to customers
-Kept for queries
-A copy is sent to customers
-Used by customers to compare actual with listed
What is a Remittance Advice?
-Customer to supplier
-Accompanies payment for received goods
-List of invoices paid/ taken on credit
-Discounts taken
-Total amt paid (after discounts)
-Aids supplier with maintaining customer records
What is a Debit Note?
-Purchaser to supplier
-Goods returned or overpayment
-Request for a Credit Note to be issued
What is a Credit Note?
-Negative invoice (supplier)
Issued by the supplier to customer
-goods returned, goods not received, overpayments
-Cancels out all or some of the original invoice
What is a Receipt?
-Supplier to customer
-Acknowledgment of money received for goods/ services provided
Explain Statement of Accounts.
-Supplier to customer ( typically business to business)
-List of all transactions on customer account:
-Amt owing on last issue statement
-Amt received since
-Discount allowed
-Credit notes
-Contras
-Amt currently owed
What is a Contra?
Where both companies supply each other to offset balances on their accounts.
