CAT / FIA FAU Syllabus A. Business Environment And Audit Framework - Contents and purpose of business documentation - Notes ^{5 / 6}

The contents and purpose of different types of business documentation

Documents used to record business transactions include

• Quotation:
  a business makes a written offer to a customer to produce or deliver goods or services for a certain amount of money

• Sales Order:
  a customer writes out or signs an order for goods or services he requires

• Purchase Order:
  a business orders from another business goods or services

• Goods received note:
  a list of goods that a business has received from a supplier

• Goods despatched note:
  a list of goods that a business has sent out to a customer

• Invoice:
  An invoice relates to a sales order or a purchase order. When a business sells goods or services on credit to a customer, it sends out an invoice.  When a business buys goods or services on credit, it receives an invoice from the supplier.

• Statement:
  A document sent by a supplier to a customer listing all invoices, credit notes and payments done by the customer

• Credit note:
  a document sent by a supplier to a customer in respect of goods returned or overpayments made by the customer

• Debit note:
  a document sent by a customer to a supplier in respect of goods returned or an overpayment made. It is a formal request for the supplier to issue a credit note

• Remittance advice:
  a document sent with a payment, detailing which invoice are being paid and which credit notes offset

• Receipt:
  a written confirmation that money has been paid.