Financial Documents

Financial Documents

1. Purchase order form, delivery note, goods received note, sales invoice, credit note, statement of account, , remittance advice, cheque, receipt.

2. Purchase order form is a document and first official offer issued by a buyer to a seller, including quantities and prices.

   • Must be signed official and does not include total amount or VAT.
     • It must give accurate details of quantity, description, item code and price.
       • It includes the name of the firm, address, telephone number, fax, website, VAT registration number.
         • A BUYER sends it and a SELLER receives it

3. Delivery Note explains what the contents of the package are and if some goods that were ordered were not enclosed that will also go onto the delivery note.

   • It contains no prices, buyer signs it and keeps a copy buyer should comment on condition of products.
     • SELLER sends it and BUYER receives it.
       • Its on the sellers paper.

4. Goods received note is a record of goods received at the point of receipt, the record confirms that all goods have been received.

   • Internal document, records items received and any faults.
     • copies always sent to accounts&purchases, accounts know whether bills should be paid or not.
       • BUYER sends it and SELLER receives it.

5. A sales invoice is a list of goods with a statement of the sum due for the goods, a bill.

   • Its on headed paper
     • Items are listed separatly and totalled
       • Shows VAT registration number
         • Terms= date when payment is due
           • E&OE= errors and omissions excepted, gives the firm the right to amend errors later
             • SELLER sends it BUYER receives it
               • Payment notification

6. A credit note is a receipt by a shop to a customer who has returned goods.

   • Only issued when there is a problem e.g. goods damaged, incorrect goods delivered.
     • sent by the SELLER received by the BUYER.

7. Statement of account is a document issued by a supplier to its customer, listing transactions over a given time period.

   • SELLER sends it Buyer receives it
     • sent at the end of the month, starts with amount owing the previous month.
       • all invoices add to amount owed
         • final column shows balance after each transaction.
           • may include remittance advice for payment.

8. Remittance advice is a tear-off form at the end of a statement, customer includes form with payment.

   • Supplier can link payment to customer and statement
     • BUYER sends it SELLER receives it

9. A cheque is n order to the bank to pay a stated sum from the drawer's account

   • sent by the BUYER received by the SELLER
     • Cheques for a large amount have to be signed by more than one person.
       • items completed are: date, payee, amount in words&figures.

10. cash sale receipt proves that amount was paid

    • should be kept safe in case there is a problem with the goods.
      • normally only issued for cash payments