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

2. 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.

3. 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.

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

5. 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.

6. 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.

7. 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.

8. 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.

9. 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

10. 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.

11. 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.

12. 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.