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LO3: Being able to use business documents - Coggle Diagram
LO3: Being able to use business documents
Transaction Documents
Invoice
A document the suppler issues to customers to request payment for goods + services.
Credit Note
Sent to the customer from the supplier giving credit for various reasons such as damaged goods, refund, mistake on invoice
Purchase Order (PO)
A list of items the buyer has ordered from the supplier, the price, delivery date and payment terms may be included.
Statement of Account
sent by supplier to customer at the end of each month, outlining all transactions and final balance due if any
COD
- Cash on Delivery
pay when delivered
T&C's
- Termas and Conditions
on the transaction relating to delivery and payment terms
E&OE
- Error and Omissions Expected
to reeduce legal liability
Terms
Specific conditions, requirements, and results, that govern the transaction
Employee Documents
Travel Expense Claim Form
Indudes miles travelled which can be claimed back. Train fare, car parking, petrol costs if own car is used
Other Internal Documents
Stock Requisition Form
a for that is completed when goods need to be ordered for business use
IT Requisition Form
Similar to stock requision but for IT related good such as laptops, monitors, printers
Petty Cash Voucher
petty cash is held to reimburse staff for small purchases on benalf of the business use
Reprographics Requisition Form
Form completed when an employee wants to carry out printing
Other Business Documents
Good Recieved Notes
Used for customers to check items match up with the PO
Payslip
Employees record of pay, gross pay shown, deductions and net pay
Delivery Note
A note that accompanies shipment of goods
Recipt
Evidence that goods or services have been ourchased and the amount paid
Budget Variance Report
Shows the difference between budgeted income and expenditure and actual income and expenditure, this shows favourable or adverse budget and helps future planning
Remittance Advice
Notification sent from customer to supplier informing them the payments have to be made
Bank Statement
A summary of transactions for a bank account over a period of time, usually 1 month
Request for Repair Form
Request to require for example, a projector that has broken down
Payment Methods
Debit Card
- payment card connected to a user's bank account, allowing immediate funds transfer for purchases or ATM withdrawals without using credit.
Advantages
Immediate Access: Instant access to funds without waiting for cheque clearance.
Reduced Handling Costs: Unlike cash, it removes the security risks and costs of storing physical money.
Budgeting Control: Helps avoid overspending as it requires funds to be present.
Disadvantages
Insufficient Funds: Transactions are declined if there is not enough money in the account.
Online/Digital Payment
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Credit Card
- payment card allowing you to borrow money from a lender (like a bank) to make purchases, with a set credit limit, promising to pay back the amount plus interest later.
Advantages
Security & Protection: Offers improved security for transactions and potential purchase protection.
Interest-Free Period: No interest is charged if the balance is paid in full within the monthly billing cycle.
Cash Flow: Buy now, pay later, helpful for unexpected expenses or managing funds.
Disadvantages
Overspending Risk: Easy access to credit may lead to overspending and financial strain.
Fees: Potential for annual fees, late payment fees, or processing fees.
High Interest Rates: Substantial interest is charged on any outstanding balance not repaid in full, leading to debt.
Cheque
- a paper document that acts as a written order to a bank, instructing it to pay a specific sum of money from the drawer's (payer's) account to the payee (receiver)
Advantages
They provide a clear paper trail and documentary evidence of payment, which is useful for accounting, auditing, and tax purposes.
Cheque use does not require internet access or digital literacy, making them accessible for individuals or businesses in areas with poor connectivity.
Cheques are safer to carry and send via post than large amounts of cash.
Disadvantages
Handling paper-based cheques involves significant manual administration for businesses, including writing, signing, posting, and physically depositing them at a bank, which is time-consuming compared to electronic payments.
Cheques can be lost, stolen, forged, or altered (e.g., changing the amount or payee name), posing a security risk.
Funds are not transferred immediately. Cheques must go through a clearing process that can take several business days, which can cause delays and disrupt cash flow for the payee.
Bank Payments
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Completion and checking of business documents
Agenda
Minutes
Notice of meeting
Conference Documentation