Unit 3 Flashcards
What is a transaction document
Records a transaction between two parties
What terms and abbreviations will a transaction document have?
COD - cash on delivery
E+Eo - errors and omissions expected
T+C - terms and conditions
Terms - deadlines for payments
Errors and omissions expected meaning
If the deliverer did something wrong they have the right to make it right
What are documents used to record transactions
Purchase order
Invoice
Credit note
Statement of account
What is a purchase order
Paper work sent from customer to supplier stating whether they need and price
What is an invoice
State what you ordered - what you need to pay - VAT calculation
What is a credit note
Used to part-pay for future purchases
What is a statement of account
States al L transactions
What is a travel expense claim form
When employee travels as part of their role they can claim expenses
E.g. petrol costs, train fares, taxi fares, car parking and sometimes refreshements
Who completes a travel expenses claim form
Line manager
What is a petty cash voucher
form that records the amount removed from the petty cash float by an authorised person
- also states why
What is a petty cash voucher held to do
Reimburse staff for small purchases made on behalf of the business
What is a stock requisition form
Completed form when goods need to be ordered
Who is the stock requisition form sent to
Purchasing . Procurement department
It requisition form
Request for IT equipment to be ordered / purchased
Reprographics requisition form
Completed by employees requiring either photocopying to be done or other reprographic services
What is a bank statement
Summarise of transactions into and out of a bank account over a period of time
Also indicates the funds available for making purchases or paying bills
What is a budget variance report
Difference between budgeted income,e and expenditure and the actual income and expenditure failures
What word is used when you did better than expected in a budget variance report
Favourable
What word is used when you did worse than expected in a budget variance report
Adverse
What is a delivery note
Accompanies shipment of goods
Details products and the quantities delivered
What is a goods received note
Document used by the customer for checking items recieved to ensure that they match the purchase order
Once checked and any discrepancies highlighted, a copy will be returned to accounts staff, who check the goods recived note against the invoice from the supplier to ensure that payment is made for the correct number of items
What is a receipt used for
Confirmation of order and the amount paid
hat is a remittance advice
Notification sent by a customer to supplier informing them that their invoice has been paid
What is a request repair form
Can be an:
- internal - request is sent to the maintenance team
- external document - sent to the lease company outlining issues
A form sent externally will need additional details such as the company name and address
What is a pay slip
Employees record of the pay they have received
What is gross pay
Amount before deductions
What is net pay
Amount after deductions
Ways customers pay for goods
Credit card
Debit card
Contactless
Voucher
cheque
What is a cheque
Document requesting that a specified sum of money be paid from one person to the other
In terms of transferring money what is a drawer
They give the money
In terms of transporting money who is the drawee
Receive money
What is a credit card
Money not in the account
Borrow money from credit card company
What happens if you don’t pay back your credit card
Interest
What is a debit card
Money that is in your account
- limited
What is online / digital payment
Pay online
What is online payments done by
Credit card
Debit card
What is digital payments done by
PayPal
Apple Pay
What is bank payments - paying in slip
If an individual needs to pay cash or cheques into their bank account they often need to complete a paying in slip to accompany the payment
What does a paying in slip include
Date the deposit was made
Bank account number for it to be paid into
The amount is paid
What is a bank payment - electronic transfer
Electronic movement of funds between one bank account and another
What is a standing order
Repeat payment
- subscriptions
What is a Direct debit
A type of automatic payment that allows a business or and organsiation to collect money on a regular basis from your bank account
What are direct debits commonly used for
Utility bills
Loans
What do you have to do when signing up for a direct debit
You have to sign a direct debit mandate which gives the business permission to take funds from your account in an agreed way
What details are confirmed in a debit mandate
Who’s receiving the payment
The amount
Dates of payment
What is a standing order
Type of automatic payment that you set up with your bank to pay other people, organisations or to your own bank account on a regular basis
Who specifies a standing order and what do they specify
You
The amount and the date the transfer of money should be made
Who makes the payment in a standing order
Bank
What are standing orders commonly used for
Rent payment
Saving money on a regular basis
What is the difference between a direct debit and a standing order
In a direct debit the bank can change the amount or the date of the withdrawal but with a standing order it’s set by you
Advantages of credit card for the payer
- buy now pay later
- protection from fraud
Build credit score
Disadvantages of credit card for payer
Interest charges
Some businesses charge for use of credit card payment
Advantages of credit card for payee §
Pavement can be done online
Payment is authorised so payee know they will get money
Disadvantages of credit card for payee
Must pay processing fee - reduce amount received
Advantage of debut card for payer
Cash doesn’t have to be handled
No interest
Disadvantages of debit card for payer
Fraud
Can be additional fees
May not have enough
Advantages of debit card for payee
Guaranteed to get money
Can be used online
Disadvantages of debit card for payee
Processing fee
Appropriate tech must be brought
Advantages of online / digital payment methods for payer
Safer than cash
Paper trail - track
Disadvantages of online / digital payment methods for the payer
Fraud
Account can be frozen
Advantages of online /digital payment methods for the payee
Storage don’t have to but a safe
Safer than cash
Lower fees
Disadvantages of Online / digital payment methods for the payee
Additional fees
Delay when payment made to when it received
Advantages of bank payment for the payer
- automatically documented in bank statement
Security - safe -by robust security
Disadvantages of bank payments for the payer
Delay in processing
Once payments been made it can be difficult to reverse
Advantages of bank payments to the payee
No need to handle cash
Payments can only be done if the payer has enough money - reduce bounced payments
Disadvantages bank payments payee
Fees for international transactions
Tellies on bank system - tech issues
What is the purpose of a notice meeting
Tells people there is a meeting
Know wether people can attend
People don’t book something on the day
Prepare documents
Everyone is prepared
What should a notice meeting include
Date of the meeting
Time of the meeting
Location
Purpose of meeting
Who will be there
What is an agenda
Lists in order items for discussion in a meeting or activities to be undertaken
Who should be provided an agenda
Everyone involved in the meeting
What is an agenda used for
People know what the meeting is about
Have right equipment
Reconfirm everything
Focus
Bring the right stuff
What is minutes
Summary of what is discussed and agreed during a meeting
Sent to attendees
What is the minutes for
For people who weren’t there
Look back on what happened
Evidence
What is included in minutes
Date
Time
Location
Names of people attending
Agenda
Decision made
What is conference documentation
Documents you need for the meeting
What types of conference documentation is there
Documentation for delegates
Documentation for staff
Documentation for presenters
What are the benefits of using minutes
Legal protection
Proof / evidence
Communicate with absentees so they can be up to date
What is an example of documentation for presenters
Prompt cards
Benefits of using prompt cards
Remind the presenter of the content so that nothing important is missed
Keep presenter on track
Remind them of right order of topics
Reduce anxiety
Help give a positive image of the company §
What is the order that documents are used in
Purchase order
Delivery note
Goods received note
Invoice
Remittance advice
Receipt
Statement of account
