What is a/an ... document? Flashcards
Find the definition of each Business Document
What is a Quote?
A document sent to the customer detailing the list price of goods the customer wants to purchase, if previously no list price was stated.
What is a Purchase order?
A document sent from the customer detailing the goods they want to order, as well as the quantity of goods and the price per unit, before listing the total price of goods (inclusive or exclusive of VAT). This is only sent if the customer is happy with the price quoted in the Quote.
What is a Sales order?
A document sent to the customer confirming the customer’s order of goods.
What is a Delivery note?
A document that accompanies the goods when delivered to the customer. The goods should be checked by the customer to ensure they are in good condition, as well as agreeing to the delivery note and to what was initially ordered. Three individual copies are kept by the customer, the supplier and the delivery organisation as their record.
What is an Invoice?
A document sent to the customer detailing the goods they have ordered and the total amount they have to pay for that order, inclusive of VAT.
What is a Credit note?
A document sent to the customer cancelling part or all of an invoice. This may be due to faulty/damaged goods, incomplete deliveries or being qualified for a prompt payment discount etc.
How is payment made for credit transactions?
Payment is made via a bank transfer or a cheque.
Who sends what document to who?
The supplier sends a Quote to the customer. The customer sends a Purchase order to the supplier. The supplier sends a Sales order to the customer, as well as sending a Delivery note along with goods to the customer before sending an Invoice to the customer. A Credit note is sent to the customer for any refunds or prompt payment discounts, before the customer makes payment for the Invoice.
