Selling Goods and Services Flashcards
what is a cash sale?
goods or services paid for immediately
how can a cash sale be made? (list five)
cheque
debit card
bank transfer
coins and notes
even credit card
how can a credit card be a form of cash sale?
because the bank pays immediately but the individual pays the bank at a later date
what three prices must be recorded in the business books for cash sales?
net price
VAT
gross price
what is a credit sale?
when goods and services are bought but payment is made later by the customer
why do businesses allow credit sales to other businesses?
this encourages the customer to make more purchases and then pay later as it helps with the individuals cash flow, this also helps the business if they are selling items on credit which allows them to also pay their supplier with better cash flow
how can a business ensure payment from credit customers?
by running a credit check to ensure the customer and agreeing on a payment which outlines how much a customer can owe at a time and when they should pay it off
which documents are involved in making in a sale? (list three)
customers need to be made aware of the price (catalogue/advertisement etc)
the same price must be listed on the invoice
some businesses may give a quotation or estimation regarding the service
what is a quotation?
this price cannot be changed once the customer has accepted it, there may be additional factors which may change the price
what is an estimation?
a rough idea based on guesswork of the job, this amount can be negotiable depending on circumstances
what is a purchase order?
a legal document once the order has been accepted by the supplier this creates and contract between both seller and buyer
larger businesses will need to issue purchase orders (customer orders) unlike smaller businesses with all the information surrounding the order
what does a purchase order include? (list 7) QUIPDAI
individual reference number
product code if available
quantity
description of the goods
unit price and total price (not necessary but useful for accuracy)
authorising signature and date
invoice and deliver address
what is a sales order, and what does it contribute towards in the business?
this can be raised from a purchase order by the seller which lists what the customer has bought, this can be kept to help with stock and when to purchase
what is an advice note?
this confirms that the seller has accepted the order and explains when the goods will be delivered if the delivery is not immediate or if they are on their way
what is a delivery note?
sent with the deliveries to the buyer who then determines if the goods are satisfactory and then will sign two forms