Business Documents Learning Objectives Identify Documents in Sales
Business Documents
Learning Objectives • Identify Documents in Sales and Purchases Transactions in Business • Identify the process involved in recording these transactions. • Identify the functions of each document.
Activity Niall Quinn has s tarted a new business venture. Its called Niall Quinn gym Ltd. He would like us to purchase equipment for his business and fill in the relevan t documentation
What are business documents Enquiry Statements Orders Delivery Notes Quotation Credit Notes Debit Notes Receipt Invoices
Steps in Purchasing goods Receipts Statements Credit Notes Invoices Delivery notes Orders Quotation Enquiry Debit Notes
Step 1: Letter of Enquiry Is a request from the buyer to a seller for the price and terms of sale of the goods Buyer Seller
Step 2: A Quotation Is a document sent by the seller to the buyer that shows the price of the goods and the terms of sale. Buyer Seller 0 5 5 € € 3 50 5 € 32
Step 3: Order Is a written request from a buyer to a seller to supply certain goods. The order must be signed by the buyer Buyer Seller
Step 4: Delivery Note A document sent by the seller to the buyer that Lists the goods being delivered Seller Buyer
Step 5: Invoice A document sent by the seller to the buyer Giving details of the quantity, code no and price Of the goods being sent, terms of sale and details of carriage Seller Buyer Sales book Purchases book
Function of invoice 1. Seller uses details to put in sales book and Put in ledgers a/c 2. Seller files a copy of the invoice for permanent record 3. The buyer checks the invoice against the delivery note to ensure goods delivered are the Goods charged 4. Buyer files a copy of the invoice for permanent record
Credit Note Is a document sent by the seller to the buyer Shows a reduction in the amount owed by the buyer Seller Sales returns book Buyer Purchases returns book
Reason for Credit note being sent: 1. If the seller overcharged the buyer, the buyer receives credit note 2. If some of the goods on the invoice were not actually delivered the buyer receives credit note 3. If some of the goods were damaged/ not as described
Debit Note Is a document sent by the seller to the buyer if The customer was undercharged for goods delivered to him/her Seller Buyer
Step 6: Statement Is a document sent by the seller (creditor) to the buyer( debtor) showing the total amount owed by the buyer Seller Buyer
Step 7: Remittance Slip Is attached to the statement sent by the seller And sent back by buyer to the seller when paying the amount owed. Seller Buyer Seller
Step 8: Receipt Is a written document acknowledging payment. It is signed by the seller and given to the buyer Seller Buyer
Terms COD Cash discount CWO Trade discount VAT E&OE Credit worthiness
Letter of Enquiry Joe Soap Ltd 11 High St Dingle Co. Kerry Telephone: 345876 Fax : 345967 email soap@iol. ie VAT No. IE 9876545 To: Swift Products Ltd 10 Main St Cobh Co. Cork 21/11/10 Dear Sir / Madam, I wish to purchase the goods listed below and am seeking a quotation detailing your best prices and terms of sale for same. 10 23˝ Colour TVs 20 DVD Players 30 Video Recorders Yours sincerely, Joe Soap Purchasing Manager 19 R. Delaney
Quotation QUOTATION Tel: 01 203498 Fax 01 203478 Email: swift@iol. ie VAT Registration No. IE 1234567 W Swift Products 10 Main St Cobh Co. Cork 23/11/10 Date: _____ To: Joe Soap Ltd 11 High St Dingle Co. Kerry Thank you for your enquiry. The following are the current prices for the goods referred to in your enquiry Please note that all goods are subject to trade discount of 10% A VAT rate of 10% currently applies to all goods QUANTITY DESCRIPTION Model No. Price each € 10 20 23” Colour TVs DVD Players TV 023 DV 345 200. 00 150. 00 30 Video recorders VR 567 90. 00 Carriage paid: E & O E. Cash discount 5% 10 days 20 R. Delaney
Delivery Docket DELIVERY DOCKET No. 34 Telephone 01 203498 Fax 01 203478 Email swift@iol. ie Swift Products Ltd. 10 Main St Cobh, Co. Cork To: Joe Soap Ltd 11 High St. Dingle Co. Kerry Quantity 10 Date_______ 28/11/10 Description 23” Colour TVs Model No. TV 023 20 DVD Players DV 345 30 Video Recorders VR 567 Received the above goods in good condition. Signed________ Joe Soap Purchasing Manager 21 VAT Registration No IE 1234567 W. R. Delaney
Invoice No. 25 Swift Products Ltd 10 Main St Cobh Co. Cork Tel 01 203498 Fax 01 203478 Email swift@iol. ie To: Joe Soap Ltd. VAT Registration No. IE 1234567 W Date: 12/12/102 11 High St Dingle Co. Kerry. QUANTITY 10 20 30 DESCRIPTION 23” Colour TVs DVD Players Video Recorders MODEL NO. PRICE EACH (€ ) TV 023 DV 345 VR 567 200. 00 150. 00 90. 00 Total excluding VAT Trade Discount 10% Sub-total (Net) VAT 10% Total including VAT Carriage Paid E&OE 22 R. Delaney TOTAL € 2, 000. 00 3, 000. 00 2, 700. 00 770. 00 6, 930. 00 693. 00 7, 623. 00
Credit Note No. 34 Swift Products Ltd 10 Main St Cobh Co. Cork Tel 01 203498 Fax 01 203478 Email swift@iol. ie To: Joe Soap Ltd. VAT Registration No. IE 1234567 W Date: 12/12/102 11 High St Dingle Co. Kerry. Ref : Invoice no. 57, being an allowance for: QUANTITY 5 2 10 DESCRIPTION 23” Colour TVs DVD Players Video Recorders MODEL NO. TV 023 DV 345 VR 567 PRICE EACH (€ ) 200. 00 150. 00 90. 00 Total excluding VAT Trade Discount 10% Sub-total (Net) VAT 10% Total including VAT Carriage Paid E&OE 23 R. Delaney TOTAL € 1, 000. 00 300. 00 900. 00 2, 200. 00 220. 00 1, 980. 00 198. 00 2, 178. 00
Statement STATEMENT No. 96 Tel 01 203498 Fax 01 203478 Email swift@iol. ie Swift Products Ltd 10, Main St Cobh, Co. Cork To: Joe Soap Ltd 11 High St, Dingle Co. Kerry Date 1/12/10 Details Balance 3/12/10 Invoice No. 57 5/12/10 Credit Note No. 34 Date_____ 20/12/10 Debit € Credit € 7, 623. 00 R. Delaney Balance € 5, 000. 00 12, 623. 00 2, 178. 00 Terms: 5% 10 days 24 VAT Registration IE 1234567 W 10, 445. 00
Complete the following extract from a Credit Note € Total (exluding VAT) Trade Discount 25% Subtotal VAT 23% Total (including VAT) 540. 00
Solution € Total (exluding VAT) 720. 00 Trade Discount 25% 180. 00 Subtotal 540. 00 VAT 23% 124. 20 Total (including VAT) 664. 20
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