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Financial documents for purchase and sales.

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Introduction

FINANCIAL DOCUMENTS FOR PURCHASE AND SALES Almost every business transaction is accompanied by a financial document. If you pay to enter a cinema you receive a ticket in return. If you buy a bar of chocolate you are given a receipt. If you pay for something by debit or credit card then you have to sign a printed slip or counterfoil, which confirms the transactions - because the supplier receives payment at the time the item, is purchased. You already know that an alternative to 'cash' transactions exists. Businesses buy and sell goods and services on credit. This means that payment is made at a later date. In this case, there are special business documents, which accompany each part of the transaction. At one time, all business documents were specially printed and completed either by hand or on a typewriter. Today, computers can print out financial documents automatically, as they are needed. The computer at the same time adjusts the company's accounts to show the transaction has taken place. ...read more.

Middle

At DigiTech Petra sends out delivery notes in the packages. The delivery note states the contents of the package (but not the price) so that the person receiving it can check that the correct items have been enclosed. At DigiTech all items received are checked against the delivery note immediately and the checker then signs the delivery note. The carrier who delivers the goods usually requires the delivery note to prove the package arrived intact. * GOODS RECEIVED NOTE (GRN) - a goods received note (usually referred to as a GRN) is issued by the person who has checked in an incoming package and a copy is sent to the accounts department. This is now a written record of the actual goods, which were delivered and their condition on arrival - sometimes it may differ from the delivery note. * INVOICES - an invoice is a bill for payment. It states the goods that have been sent and includes details of the price. * CREDIT NOTES - occasionally an item is returned for some reason or because the charge on an invoice is too high. ...read more.

Conclusion

* CHEQUES - DigiTech pay its suppliers by cheque and receive dozens of cheques a month in payment. All cheques received must be examined carefully as sometimes mistakes are made in filing out a cheque, which would be rejected by the bank. * RECEIPTS - very few businesses expect a receipt, as a cashed cheque is legally recognised as a receipt. ISSUED BY THE PURCHASER ISSUED BY THE SELLER ORDER FORM - describes order for goods or service with price DELIVERY NOTE - accompanies the goods and is signed by the customer as proof of delivery GOODS RECEIVED NOTE - is issued to record the actual items delivered SALES INVOICE - gives full details of goods, prices, discounts, VAT CREDIT NOTE - issued if goods are returned or to adjust any over-charge on the invoice Purchaser notifies seller if any shortages or damage STATEMENT OF ACCOUNT - summarises all transactions for both buyer and seller and shows the balance owing REMITTANCE ADVICE SLIP - summarises the account for return with payment CHEQUE - sent in settlement with remittance advice RECEIPT - mainly issued to private customers or to confirm cash payment has been received Unit 3 - Business Finance Leila Mohamed Page 1 ...read more.

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