Purchasing cycle

Question 1

Purchase order

Answer 1

The purchase order is whether orders are to be placed over the or online a list of goods are required an the quantity is needed before the order can be placed.

Question 2

Delivery note

Answer 2

When a supplier delivers to a business they will leave a note which itemises the goods being delivered and the quantises. The receiving business will then check the delivery notes against what they ordered but the notes do not show the prices of the product.

Question 3

Returns note

Answer 3

The return note details any items that the business has rejected and wants to return to the supplier. Both the business and supplier need to keep track of what is returned and bought so that a credit can be made to the account.

Question 4

Credit note

Answer 4

A credit note explains that the business will not be charged for these goods and if money has been taken that amount will be credited back to the account.

Question 5

Invoice

Answer 5

An invoice itemises what has been delivered and lists how much the business owes the supplier and often gives a date by which the goods need to be paid for.

Question 6

Monthly statement

Answer 6

A monthly statement is sent monthly by a supplier this document lists all the transactions that have taken place over a month. It shows the business and supplier what has been paid for already and what money is still owed.