BUSINESS DOCUMENTS OBJECTIVES What is a business document Why are documents necessary Name and explain the documents used in trade Identify instruments of payment

What is a business document A business document is a written record of a business transaction. A transaction is the process of supplying goods or services from initial enquiry to eventual payment.

Reasons for business documents It reduces the chances of future disputes with suppliers or customers and to avoid confusion. To be able to draw up accurate accounts and financial records. To supply evidence to other institutions. More easily detect any fraud by employees. It provides detail information about customers, such as contact details and recent purchases.

Documents used in National Trade Debit Note Letter of enquiry Quotation Catalogue Purchase Order Invoice Advice Note Delivery Note Statement Credit Note

Trade Documents Letter of enquiry The initial document sent to a supplier by a prospective customer asking for details about a product. Quotation/Catalogue A formal statement of promise by the potential supplier to supply goods requested at a given price and in a given period of time. A Catalogue includes pictures which makes it different from a quotation.

Trade Documents Purchase Order A form used to place an order and includes quantity, product description, product number, price and payment details. Acknowledgement A letter stating that the order has been received and the goods will be supplied and date of expected delivery. Advice note A note sent by the producer ahead of the goods to advice the buyer that the goods are on its way and should expect arrival on send date.

Trade Documents Delivery Note A written document from the supplier to the customer which accompanies the delivery of the goods, giving details of quantity and type of goods, Pro forma invoice Bill sent by the supplier to the customer when the supplier requires payment in advance. Invoice Bill sent by the supplier to the buyer immediately after the goods have been dispatched.

Trade Documents Debit note A note issued to adjust the accounts and increase the amount owed by the customer Reasons for debit note An incorrect price on the invoice. More goods than what was ordered was delivered.

Trade Documents Credit Note A note used to adjust the accounts and reduce the amount owed to the customer Reasons for the credit note Incorrect price on invoice Faulty or damaged goods Discounts left out Too much charged for transport

Trade Documents Statement of Account A document that gives the total amount owed by a customer, usually at the end of the month. Other Documents Stock card – A stock inventory control document that list the available quantity of a particular product. Purchase requisition – A document which identifies the amount of a particular product/s a department will need.

International Trade Documents Bill of Lading A document representing the title/ownership of goods when goods are transported by ship. Airway Bill A document which represents a receipt for goods carried by the airline. Import Licence Issued by the government of the importing country giving permission for the import of certain products in certain quantities. Export Licence Issued by the government of the exporting country giving permission for the export of certain products in certain quantities.

International Trade Documents Insurance Certificate Document which indicates that the goods being traded are insured. Certificate of Origin Document that indicates the country of origin and the materials the products are made from.