Contents and purpose of business documentation

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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.

ACCA FA C1bf Business documents graph
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