'P1 Identifying the Documents Used to Record Business Transactions\r'

'P1 Identifying the Documents Used to establish Business Transactions 1. Issue of a bribe Order A  acquire rate (PO) is written document issued by the emptor to the  v mop upor, indicating types, quantities, and concur scathes for products or services the vender leave alone provide to the purchaser. Sending a purchase order to a supplier is a legal offer to buy products or services. If the seller agrees to selling to the vendee it forms a contract between the two. It should imply: * The order number, so it can be traced and matched with invoices and statements * The purchasers hollo and address which is usu every(prenominal)y across the middle of the document * The toll The ring and address of the supplier * The memorandumrandum/ character number * Authorisation i. e. signature and assure * A description of the goods required The pitching Address May Be incompatible Companies use Purchase Orders for several resolves: price * Purchase orders allow emptors to clearly and explicitly communicate their intentions to sellers * Sellers atomic number 18 protected in case of a buyers refusal to comprise for goods or services * Purchase orders help a purchasing agent to manage accounting entry orders and pending ordersIf The Order Is Not decent Authorised It Will Not Be Processed 2. Delivery feeling This is the document is direct with the goods. It lists the items which meet been sent. The buyer uses this to con the goods tell have arrived. It is signed by the buyer and it is then sent sand to the seller as a proofread of delivery. The person receiving the goods signs it by and by checked the measuring rod of the goods delivered. Information on the Delivery distinction: * The manner of delivery * Purchase order number * The signature of the person receiving the goods * The catalogue number and quantity The Price Is ordinarily Not On the Delivery Note 3. vizorAn invoice is a document issued by a seller to theà ‚ buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer. An invoice indicates the trade transaction only. Payment terms are ordinarily included on the invoice. The buyer can excessively have a maximum number of days in which to pay for these goods and is sometimes offered a synthesis if paid before the repayable date. This is belike the most important document. This is an official signal for payment. It includes: * The Word Invoice * A unequalled Reference shape In eccentric Of Correspondence About The Invoice * image of the Invoice. value Payments * predict And Contact flesh out Of The Seller * Tax Or accomp some(prenominal) Registration Details Of Seller * Name And Contact Details Of The Buyer * examine That The Product Was Sent Or Delivered * Purchase Order  play * Description Of The Products * get Amount Charged †optionally with division of taxes, if relevant * Payme nt Terms †method of payment, date of payment, and details about charges for ripe payment * The Purchase Order Number †the invoice is checked against the goods ordered, the invoice and the goods delivered, the serve up is called â€Å"marrying up”. The buyer only pays if all three documents match exactly. Terms †this informs the buyer how long before he has to pay for the goods. The pith of cash discount for speedy payment will also be stated. * Carriage †this states the cost of transportation the seller has to pay. Carriage forward means how more the buyer has to pay for transportation * E ; OE †â€Å"errors and omissions expected” this allows the seller to correct any misidentifys on the invoice at a later date. * Trade Discount †this come in will be deducted from the invoice price e. g. buying in bulk. * Value Added Tax (VAT) †this is added to the cost of the goods on the invoice.\r\nRead also Recording General Fund operating (a) Budget and Operating TransactionsThe VAT modification number should be on the invoice, commonly below the name and address. * Invoice Number †it will identify a proper(postnominal) invoice for the buyer and seller. Pro Forma Invoice VAT It means for forms sake. It is sent to a new client, or an existing client who has been late making a payment It is sent to the buyer before the goods are delivered The details are the same as on an ordinary invoice. The goods are delivered after the payment has been made.When the goods are paid for a normal invoice is issued. It sets out charges which have to be paid in advance. debit Note This is issued by the seller and sent to the buyer. It Is Essentially an Additional Invoice It is utilize to correct errors e. g. if goods were invoiced at a disdain price than it should been or if some goods were over charged. 4. Credit Note A  honorable mention entry  none is a document issued by a seller to a buyer. The seller usu ally issues a recognition memo for the same or lower total than the invoice, and then repays the money to the buyer or sets it off against a balance due from other proceedings.A assign note lists the products, quantities and agreed prices for products or services the seller provided the buyer, precisely the buyer returned or did not receive. It whitethorn be issued in the case of alter goods, errors or allowances. In respect of the previously issued invoice, a Credit Memo will reduce or eliminate the tot up the buyer has to pay. Reasons for issuing a character note: * To correct a mistake e. g. being over charged * Goods are faulty or damaged * The goods were not delivered * The wrong goods were delivered Details on the credit note include: The date * The airplane pilot invoice number * examine * The reason credit is being given * The addresses of the buyer and seller It Is Often Printed In rosy-cheeked 5. Statement The seller sends all well-ordered customers a statemen t at the end of the month. This Is a Copy of The Customer’s Accounts in The Sales Ledger. It lists all transactions with customers during the month: * Any payments received * on the whole invoices issued * It shows outstanding balance * Any credit note issued Details include: * Date * Details of invoices issued * The name and address of the customers The customer’s account number * The name and address of the supplier * Any credit note issued * Any payments made * The amount outstanding i. e. the balance 6. Goods Received Note(GRN) This is an indispensable document used by the buyer, usually in the stock surgical incision to indicate goods being delivered. Copies are sent to divers(a) parts of the business: * The department that ordered the goods, to let them know that goods have arrived * The accounts department so they can â€Å"marry” the invoice, the purchase order and the GRN * The purchasing department who position the order.\r\n'