Invoices
Invoices must be sent out with every item that has been bought on credit. This is done because the customer has to nave a statement of how much he/she has paid for the product and the balance which is owed to be paid. An invoke should include all the details of the product or services that are being purchased as well as a statement of the account to date and amounts received.
Confirmations
Confirmations are sent out to verify any information or payments that have been arriving. This confirmation supply two purposes
- ‘‘It informs the customer that payments have been received’’.
- ‘‘It provides a record of incoming monies for the customer’s file’’.
Customer Files
Every customer must have an individual private file, which should be set out on a computerised record
The information on it must be kept up to date at all times.
Letters
Most organisations will have a standard letters which will deal with discrepancies.
The advantage of having standardized letters is that all staff within the organisation will know what the letter says
It will also have on time confusion.
How to deal with discrepancies and inaccuracies
Incorrect details on a booking form
- To deal with this problem the customer would have to complete a new booking form as soon as possible. The employer must cancel the mistaken one from the record and add the new one with everything up to date. The employer must inform the organisation of where they have booked of this incident.
Incorrect price on an invoice
This is a major problem because you can end up paying extra money that you didn’t need to pay for. To deal with this you would have to send a letter to the customer explaining what has happened, and also over charging would signify that you must refund ‘‘monies to the customer’’.
Incorrect address on a customer file
- Since there are many different ways of communication used today, it would be doable to telephone or email the client to get their correct address and details.
The Financial procedures used to process sales
- Payment methods accepted (debit cards, credit cards, travellers’ cheques and cash).
The benefits of each one of the organisation and to customers
Travellers cheques – This is used to gain foreign money. You can buy the cheques in different currency. Traveller’s cheques can only be redeemed for money with identification and the signature of the person who originally signed traveller’s cheques when it was purchased.
Cash- cash is easier because you’re paying straight up with simple cash with the right amount or not with change given
Debit cards & Credit cards are very much the same; you can make simple and quick purchase on the card with just one swipe and your pin number, there is certain amount of money on the card which will come up o the computer once you insert the card and enter your pin to check if you do have enough for you to purchase your item.
When and how Invoices are issued
Invoices are set to customers each time they have purchased an item, invoices are given out to customers to ensure that they are aware of what they have bought and how much they bought it for and how much they have left to pay. Invoices are giving on a piece of paper with all the details needed.
Payment procedures
Deposits- this is the first payment made towards your purchase, some deposits are not likely to be refundable depending of the organisation.
Balance- this is the remainder that the customer needs to pay for their purchase
Balance date- this is the due date when the money must be received by. This can be staggered.
Full amount- this payment has to be made in order for the product or service to be taken in.
How transactions are carried out
This should be a process which is routine and has a logical approach
Step one- you need to establish which technique the customer wants to use to pay and weather the company accepts that technique.
Step two- A receptionist should be issued to the customer as a record that payment has been made.
Step three- complete appropriate financial documentation, you need to ensure that the customer file is kept up to date and that the account reflects this.
How to deal with discrepancies and inaccuracies
Declined card & returned cheques
Debit or credit card payments will be declined if the credit limit is over beyond or if there is no fund in the account of the card.
If the customers card has been refused you must ask the customer to pay by another method.
If a cheque has been refused from a bank, you need to contact the customer to inform them that the cheque has been rejected and that they must use another method of payment.
- ‘‘This must be done in writing, so that you have a written copy of the customers file’’.
BIBLOGRAPHY
ALL QUOTES – BTEC FIRST TRAVEL & TOURISM BY EDEXCEL
