BUSINESS DOCUMENTS N WARREN-SWAN LEVEL 3 SANDYS MIDDLE SCHOOL 2006

Business Documents Business documents A document is used in business as proof of a transaction that took place. Business documents A document is used in business as proof of a transaction that took place. The only way to keep a record of the various transactions is to record them on documents specifically designed for each transaction. The only way to keep a record of the various transactions is to record them on documents specifically designed for each transaction. Although it is much more convenient and effective to record and store documents on computers, paperwork is still an important record in any business. Although it is much more convenient and effective to record and store documents on computers, paperwork is still an important record in any business.

NON-FINANCIAL DOCUMENTS business cards business cards letterheads letterheads Compliment slip Compliment slip

Business documents Business documents Documents can be divided into two main categories: Documents can be divided into two main categories: non-financial documentsnon-financial documents financial or transaction documentsfinancial or transaction documents What are non-financial documents? What are non-financial documents? These documents are mainly used for communication in the business.These documents are mainly used for communication in the business. What are financial or transaction documents? What are financial or transaction documents? These documents are used to record business transactions and are stored for a prescribed period of time.These documents are used to record business transactions and are stored for a prescribed period of time. Format of documents Format of documents Although the documents contain the same information for a transaction, the format differs according to the requirements of the business.Although the documents contain the same information for a transaction, the format differs according to the requirements of the business.

LETTERHEADS Potential customers get their first impression of the business from the letterheads. Potential customers get their first impression of the business from the letterheads. Letterheads should be well designed and printed as they reflect the identity of the business. Letterheads should be well designed and printed as they reflect the identity of the business. All essential contact and legal information required will be printed on the letterhead. All essential contact and legal information required will be printed on the letterhead.

COMPLIMENT SLIPS These slips are smaller and therefore cheaper than letterheads, but contain the same contact information as a letterhead. These slips are smaller and therefore cheaper than letterheads, but contain the same contact information as a letterhead. They are used when samples, price lists, brochures, etc are sent to a potential customer. They are used when samples, price lists, brochures, etc are sent to a potential customer. The compliment slip tells the customer who the sender is. The compliment slip tells the customer who the sender is.

FINANCIAL DOCUMENTS consignment notes consignment notes debit notes debit notes credit notes credit notes statements statements receipts receipts cheques cheques

FINANCIAL DOCUMENTS letter of enquiry letter of enquiry quotations quotations pro-forma invoices pro-forma invoices order forms order forms invoices invoices advice notes advice notes delivery notes delivery notes

ORDER FORMS The purchaser will place an order for the goods when he decides to accept the quotation. The purchaser will place an order for the goods when he decides to accept the quotation. The price and terms appearing on the quotation must be repeated on the order. The price and terms appearing on the quotation must be repeated on the order. The quotation is an offer and the order is an acceptance of the offer. The quotation is an offer and the order is an acceptance of the offer. The two together form a contract of sale. The two together form a contract of sale.

INVOICES When the seller executes the order, he sends an invoice to the buyer. When the seller executes the order, he sends an invoice to the buyer. This is a formal notification that the goods have been dispatched and the buyer's account has been debited with the amount due. This is a formal notification that the goods have been dispatched and the buyer's account has been debited with the amount due.

PROFORMA INVOICE If the buyer is unknown to the seller, the business will be unwilling to grant credit to the buyer. In this case a pro-forma invoice is sent to the buyer, stating that the goods will be sent as soon as the amount on the pro-forma invoice has been received. If the buyer is unknown to the seller, the business will be unwilling to grant credit to the buyer. In this case a pro-forma invoice is sent to the buyer, stating that the goods will be sent as soon as the amount on the pro-forma invoice has been received. When a prospective buyer asks for a quotation, a pro-forma invoice is sometimes sent, which will then serve as a quotation. When a prospective buyer asks for a quotation, a pro-forma invoice is sometimes sent, which will then serve as a quotation.

ADVICE NOTE The advice note informs the buyer that the order is being attended to. The advice note informs the buyer that the order is being attended to. The expected delivery date is indicated just before the goods are dispatched The expected delivery date is indicated just before the goods are dispatched

DELIVERY NOTE A delivery note is a document which the receiver of the goods signs when goods are delivered. A delivery note is a document which the receiver of the goods signs when goods are delivered. The signature indicates that the goods have been received in good condition. The signature indicates that the goods have been received in good condition. Example122 Example122 DELIVERY NOTE DELIVERY NOTE February 15, 2000 February 15, 2000 Laserprint Ltd Laserprint Ltd P O Box 555 P O Box 555 WallesleyWA5 8AJ WallesleyWA5 8AJ TOYS GALORE TOYS GALORE 100 High Street 100 High Street WallesleyWA5 7BN WallesleyWA5 7BN Please receive in good order and condition: 1,000 letterheads in two colors 500 compliment slips in one colour Please receive in good order and condition: 1,000 letterheads in two colors 500 compliment slips in one colour No of parcels: 2 No of parcels: 2 Received by Received by...Date...Date

CONSIGNMENT NOTE A consignment note is made out when goods are transported by common carrier. A consignment note is made out when goods are transported by common carrier. It is a contract between sender and carrier, and sender's receipt. It is a contract between sender and carrier, and sender's receipt. All the details about the goods, the consignor and the addressee, place and time of loading are indicated and recorded on this document. All the details about the goods, the consignor and the addressee, place and time of loading are indicated and recorded on this document.

DEBIT NOTE A debit note has the same effect as an invoice. A debit note has the same effect as an invoice. A debit note is used to notify a customer or supplier that his account has been debited. A debit note is used to notify a customer or supplier that his account has been debited. A debit note is sent when: A debit note is sent when: Goods ordered are inferior or damaged and retailer returns them to supplier. Goods ordered are inferior or damaged and retailer returns them to supplier. Retailer has been overcharged by wholesaler. Retailer has been overcharged by wholesaler. Retailer mistakenly undercharges the customer. The letters E & OE at the foot of the invoice give the retailer the right to rectify the error. Retailer mistakenly undercharges the customer. The letters E & OE at the foot of the invoice give the retailer the right to rectify the error.

EXAMPLE-DEBIT NOTE DEBIT NOTE VAT NO Toys Galore High Street WallesleyWA5 7BN Telephone Fax Laserprint Ltd P O Box 555 WallesleyWA5 8AJ Dr to Toys Galore250Compliment slips delivered short 17.50(Invoice 227, dated February 15, 2000) % VAT

CREDIT NOTE A credit note is the opposite of a debit note. A credit note is the opposite of a debit note. If the debit note is found to be in order and the complaint is valid the supplier will send a credit note to the customer. If the debit note is found to be in order and the complaint is valid the supplier will send a credit note to the customer. A credit note is sent when the customer was overcharged, the goods received are inferior, damaged or not according to sample. A credit note is sent when the customer was overcharged, the goods received are inferior, damaged or not according to sample. A credit note means that the customer will have to pay less or will receive a refund. A credit note means that the customer will have to pay less or will receive a refund.

EXAMPLE-CREDIT NOTE Laserprint Ltd Laserprint Ltd P O Box 555 P O Box 555 WallesleyWA5 8AJ WallesleyWA5 8AJ Telephone Telephone February 17, 2000 February 17, 2000 Fax Fax VAT registration no: Credit note number: C090TOYS GALORE100 High StreetWallesleyWA5 7BNCredited by Laserprint Ltd250Compliment slips delivered short VAT registration no: Credit note number: C090TOYS GALORE100 High StreetWallesleyWA5 7BNCredited by Laserprint Ltd250Compliment slips delivered short

STATEMENT At the end of the month the seller sends the customer a statement of account. At the end of the month the seller sends the customer a statement of account. The statement is a copy of the customer's ledger account in the seller's books. The statement is a copy of the customer's ledger account in the seller's books. The statement reminds the buyer that he must pay outstanding money. The statement reminds the buyer that he must pay outstanding money.

RECEIPT When Toys Galore pays the outstanding amount, Laserprint Ltd will send them a receipt, which serves as proof of payment that they settled their account. When Toys Galore pays the outstanding amount, Laserprint Ltd will send them a receipt, which serves as proof of payment that they settled their account.

CHEQUE Toys Galore will pay Laserprint Ltd with a cheque. Toys Galore will pay Laserprint Ltd with a cheque. A cheque is a written instruction to their bank to pay Laserprint Ltd on demand the amount stated on the cheque. A cheque is a written instruction to their bank to pay Laserprint Ltd on demand the amount stated on the cheque.

REVISION document used in a business is proof of a transaction that took place. document used in a business is proof of a transaction that took place. Types of documents: Types of documents: non-financial documents - mainly used for communicationnon-financial documents - mainly used for communication financial documents - used to record business transactionsfinancial documents - used to record business transactions Examples of non-financial documents: Examples of non-financial documents: business cardsbusiness cards letterheadsletterheads compliment slipscompliment slips

REVISION Examples of financial documents: Examples of financial documents: letter of enquiry - seeks information about product, price and deliveryletter of enquiry - seeks information about product, price and delivery quotation - answer to letter of enquiryquotation - answer to letter of enquiry order form - when purchaser accepts quotationorder form - when purchaser accepts quotation invoice - when the seller executes the order he sends the buyer an invoiceinvoice - when the seller executes the order he sends the buyer an invoice

REVISION pro-forma invoice - buyer must pay when ordering goodspro-forma invoice - buyer must pay when ordering goods advice note - to inform buyer that the order has been dealt withadvice note - to inform buyer that the order has been dealt with delivery note - receiver of goods will sign this document when goods are delivereddelivery note - receiver of goods will sign this document when goods are delivered

REVISION consignment note - used when goods are transported by common carrier debit note - notification to supplier that unsatisfactory goods are returned credit note - document to inform buyer that he will pay less or receive a refund

REVISION statement - is sent out to remind buyer that he must pay outstanding moneystatement - is sent out to remind buyer that he must pay outstanding money receipt - serves as proof of payment that the buyer has settled his accountreceipt - serves as proof of payment that the buyer has settled his account cheque - a written instruction by the drawer to their bank to pay payee a specified amountcheque - a written instruction by the drawer to their bank to pay payee a specified amount

GLOSSARY Business document-business activities are recorded on these documents Business document-business activities are recorded on these documents Business card-small card with contact numbers and address of person who carries it Business card-small card with contact numbers and address of person who carries it Cheque-written order to bank to pay named person specified amount Cheque-written order to bank to pay named person specified amount Compliment slip-contains same contact information as letterhead but is smaller and cheaper Compliment slip-contains same contact information as letterhead but is smaller and cheaper Consignment note-contract for transport between sender, carrier and recipient Consignment note-contract for transport between sender, carrier and recipient

GLOSSARY Credit notes-a document to notify customer he will pay less or will receive a refund Credit notes-a document to notify customer he will pay less or will receive a refund Debit note-a document to notify customer his account has been debited Debit note-a document to notify customer his account has been debited Delivery note-receiver signs to confirm that goods were received in good order Delivery note-receiver signs to confirm that goods were received in good order Invoice-formal notification that goods have been dispatched and payment is required Invoice-formal notification that goods have been dispatched and payment is required

GLOSSARY Letter of enquiry-request for information about a product Letter of enquiry-request for information about a product Letterhead-all legal and other necessary contact information at heading of letter Letterhead-all legal and other necessary contact information at heading of letter Order form-order is completed when quotation is accepted. Order form-order is completed when quotation is accepted. Pro-forma invoice-sent when payment is requested before goods are despatched Pro-forma invoice-sent when payment is requested before goods are despatched

GLOSSARYQuotation a binding offer from seller in response to request Receipt proof of payment that has been made Statement summary of most recent trade transactions sent to customer Transaction deal that takes place between two business parties

Your turn Create a slide show for the following documents,Giv e brief descriptions. letter of enquiry quotations order forms invoices pro-forma invoices advice notes Delivery note Debit note Credit note StatementChequereceipts Consignment notes Delivery note ReceiptLetterhead Business card Compliment slip