BUSINESS
DOCUMENTS
N WARREN-SWAN
LEVEL 3
SANDYS MIDDLE SCHOOL
2006
Business Documents
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Business documents
A document is used in business as proof of a
transaction that took place.
The only way to keep a record of the various
transactions is to record them on documents
specifically designed for each transaction.
Although it is much more convenient and
effective to record and store documents on
computers, paperwork is still an important record
in any business.
NON-FINANCIAL DOCUMENTS
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business cards
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letterheads
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Compliment slip
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Business documents
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Documents can be divided into two main categories:
• non-financial documents
• financial or transaction documents
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What are non-financial documents?
• These documents are mainly used for communication in the business.
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What are financial or transaction documents?
• These documents are used to record business transactions and are
stored for a prescribed period of time.
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Format of documents
• Although the documents contain the same information for a
transaction, the format differs according to the requirements of the
business.
LETTERHEADS
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Potential customers get their first
impression of the business from the
letterheads.
Letterheads should be well designed and
printed as they reflect the identity of the
business.
All essential contact and legal information
required will be printed on the letterhead.
COMPLIMENT SLIPS
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These slips are smaller and therefore
cheaper than letterheads, but contain the
same contact information as a letterhead.
They are used when samples, price lists,
brochures, etc are sent to a potential
customer.
The compliment slip tells the customer
who the sender is.
FINANCIAL DOCUMENTS
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consignment notes
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debit notes
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credit notes
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statements
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receipts
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cheques
FINANCIAL DOCUMENTS
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letter of enquiry
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quotations
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pro-forma invoices
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order forms
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invoices
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advice notes
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delivery notes
ORDER FORMS
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The purchaser will place an order for the
goods when he decides to accept the
quotation.
The price and terms appearing on the
quotation must be repeated on the order.
The quotation is an offer and the order is
an acceptance of the offer.
The two together form a contract of sale.
INVOICES
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When the seller executes the order,
he sends an invoice to the buyer.
This is a formal notification that the
goods have been dispatched and the
buyer's account has been debited
with the amount due.
PROFORMA INVOICE
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If the buyer is unknown to the seller, the
business will be unwilling to grant credit to the
buyer. In this case a pro-forma invoice is sent
to the buyer, stating that the goods will be sent
as soon as the amount on the pro-forma
invoice has been received.
When a prospective buyer asks for a quotation,
a pro-forma invoice is sometimes sent, which
will then serve as a quotation.
ADVICE NOTE
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The advice note informs the buyer
that the order is being attended to.
The expected delivery date is
indicated just before the goods are
dispatched
DELIVERY NOTE
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A delivery note is a document which the receiver of
the goods signs when goods are delivered.
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The signature indicates that the goods have been
received in good condition.
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Example122
DELIVERY NOTE
February 15, 2000
Laserprint Ltd
P O Box 555
WallesleyWA5 8AJ
TOYS GALORE
100 High Street
WallesleyWA5 7BN
Please receive in good order and condition:
1,000 letterheads in two colors
500 compliment slips in one colour
No of parcels: 2
Received by
...Date
CONSIGNMENT NOTE
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A consignment note is made out when
goods are transported by common carrier.
It is a contract between sender and
carrier, and sender's receipt.
All the details about the goods, the
consignor and the addressee, place and
time of loading are indicated and recorded
on this document.
DEBIT NOTE
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A debit note has the same effect as an
invoice.
A debit note is used to notify a customer
or supplier that his account has been
debited.
A debit note is sent when:
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Goods ordered are inferior or damaged
and retailer returns them to supplier.
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Retailer has been overcharged by
wholesaler.
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Retailer mistakenly undercharges the
EXAMPLE-DEBIT NOTE
DEBIT NOTE
VAT NO. 169345
Toys Galore
47100 High Street
WallesleyWA5 7BN
Telephone 01224 546376
Fax 01224 376 546
Laserprint Ltd
P O Box 555
WallesleyWA5 8AJ
Dr to Toys Galore250Compliment slips delivered short
17.50(Invoice 227, dated February 15, 2000)
+ 17.5% VAT3.0620.56
CREDIT NOTE
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A credit note is the opposite of a debit
note.
If the debit note is found to be in order
and the complaint is valid the supplier will
send a credit note to the customer.
A credit note is sent when the customer
was overcharged, the goods received are
inferior, damaged or not according to
sample.
A credit note means that the customer will
have to pay less or will receive a refund.
EXAMPLE-CREDIT NOTE
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Laserprint Ltd
P O Box 555
WallesleyWA5 8AJ
Telephone 01224 546376
February 17, 2000
Fax 01224 376546
VAT registration no: 222223333Credit
note number: C090TOYS GALORE100 High
StreetWallesleyWA5 7BNCredited by
Laserprint Ltd250Compliment slips
delivered short17. 50+ VAT @17.5%3.
0620. 56
STATEMENT
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At the end of the month the seller sends
the customer a statement of account.
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The statement is a copy of the customer's
ledger account in the seller's books.
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The statement reminds the buyer that he
must pay outstanding money.
RECEIPT
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When Toys Galore pays the
outstanding amount, Laserprint Ltd
will send them a receipt, which
serves as proof of payment that they
settled their account.
CHEQUE
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Toys Galore will pay Laserprint Ltd
with a cheque.
A cheque is a written instruction to
their bank to pay Laserprint Ltd on
demand the amount stated on the
cheque.
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REVISION
document used in a business is proof of a
transaction that took place.
Types of documents:
• non-financial documents - mainly used for
communication
• financial documents - used to record business
transactions
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Examples of non-financial documents:
• business cards
• letterheads
REVISION
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Examples of financial documents:
• letter of enquiry - seeks information about
product, price and delivery
• quotation - answer to letter of enquiry
• order form - when purchaser accepts quotation
• invoice - when the seller executes the order he
sends the buyer an invoice
REVISION
• pro-forma invoice - buyer must pay
when ordering goods
• advice note - to inform buyer that the
order has been dealt with
• delivery note - receiver of goods will
sign this document when goods are
delivered
REVISION
• consignment note - used when goods
are transported by common carrier
• debit note - notification to supplier that
unsatisfactory goods are returned
• credit note - document to inform buyer
that he will pay less or receive a refund
REVISION
• statement - is sent out to remind
buyer that he must pay outstanding
money
• receipt - serves as proof of payment
that the buyer has settled his
account
• cheque - a written instruction by the
drawer to their bank to pay payee a
specified amount
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GLOSSARY
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Business document-business activities
are recorded on these documents
Business card-small card with contact
numbers and address of person who
carries it
Cheque-written order to bank to pay
named person specified amount
Compliment slip-contains same contact
information as letterhead but is smaller
and cheaper
Consignment note-contract for transport
between sender, carrier and recipient
GLOSSARY
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Credit notes-a document to notify
customer he will pay less or will
receive a refund
Debit note-a document to notify
customer his account has been
debited
Delivery note-receiver signs to
confirm that goods were received in
good order
Invoice-formal notification that
goods have been dispatched and
GLOSSARY
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Letter of enquiry-request for
information about a product
Letterhead-all legal and other
necessary contact information at heading
of letter
Order form-order is completed when
quotation is accepted.
Pro-forma invoice-sent when payment
is requested before goods are
despatched
GLOSSARY
Quotation
a binding offer from seller in response to request
Receipt
proof of payment that has been made
Statement
summary of most recent trade transactions sent
to customer
Transaction
deal that takes place between two business
parties
Create a slide
show for the
following
documents,Giv
e brief
descriptions.
Delivery note
Debit note
Credit note
Receipt
Your turn
letter of
enquiry
quotations
order forms
invoices
pro-forma
invoices
advice notes
Statement
Cheque
receipts
Letterhead
Business
card
Compliment
Consignment
notes
Delivery note