Types Of Trans Flashcards
How many different types of trans are there?
6
What are the diff types of trans?
Credit sales
Credit purchases
Cash sales
Cash purchases
General expenses
Drawings
What does a cash sale include?
Cash, debit or credit cards
What does a customer receive after a cash trans?
A receipt
What does a credit sale involve?
Having goods now, and paying later
What is a PO?
Used by the cust to show what they wish to order
What does a customer receive when they enquire about a price?
A formal quotation
Will existing customers already have credit terms agreed by seller?
Yes
What is recommended to request for a new cust under credit terms?
Trade references from the customers other suppliers & check credit via agency
How can you check credit worthiness for a new customer?
Via agency
What do the results for a credit term and credit limit depend on?
The results of a credit check
What is the risk of credit terms?
Cust fails to pay, resulting in a bad debt to business
What happens when a trans has taken place?
The trans will be entered in the books of prime entry
Where is the trans initially recorded?
Books of prime entry
How many steps is there in the processing of ordering,
5
What are the steps when ordering or selling goods?
Quote, PO, sales order, delievery note, goods received note
Who provides the quote?
The seller provides the quote
Who provides the PO?
The PO is provided by the customer, to the seller
When does the sales order get received?
When the PO is received from the customer
Who gets sent the Sales order?
The customer
What is the delivery note?
A note to show goods have been received
How many parts does a delievery note have?
3
Why does a delievery note have 3 parts?
1-customer keeps
2- returned to seller
3- kept by courier
What is the goods received note used for?
To show what goods the customer has received
When can an invoice be issued?
When goods have been received
What does an invoice have to include?
Name and address of supplier
Cust name and address
Date of purchase
Details of goods&service provide
Cost
Terms of trade
Discount details
What happens if goods are returned?
A credit note is issued
When does a credit note get issued?
When goods are returned, to settle a dispute or to adjust a prompt payment discount
What impact does a credit note have?
Impacts the amount due to the supplier of the goods
What should a quote include?
Name, address and email address of business and cust
Date issued
Details of goods
Prices quote
Authorised signature
What does a PO include?
Name address and email address of business and cust
Date of order
Sequential purchase order
Details of goods
Price quote
Signature
What does a sales order confirm? List..
Quantity/type of goods
Date of supply
Location of supply
Price and terms
What does a quote show?
How much the supplier will sell the goods for
What happens when a customer is happy with the quotation?
They place an order using a PO
What happens when a supplier receives the PO?
A sales order can be sent to the customer for confirmation
What is a sales order?
The goods will be delivered to the customer with a delivery note
