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BUSINESS

DOCUMENTS

(Ordinary)

JUNIOR CERT

PAPER

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2

Short questions with Documents

2012

Invoice

Cheque

Receipt

2011

Order

Invoice

Bank Account

2010

Order

Delivery Docket

Invoice

Cheque

Q.15 Receipt 2009

Invoice

Cheque

Bank Account

Market Research (definition)

2008

Invoice

Cheque

Bank Account

Department Store (definition)

SQ – Q.8

2007

Invoice

Cheque

Bank Account

Carriage Paid (definition)

SQ – Q.2

2006

Quotation

Invoice

Cheque

DEFINITE QUESTION EVERY YEAR!

USUALLY QUESTION 5!

Bank Account

2005

Order

Delivery Docket

Invoice

Bank Account

2004

Invoice

Check Invoice v Quotation

Cheque

Bank Account

SQ – Q.2

2003

Delivery Docket

Invoice

Cheque

Bank Account

2002

Invoice

Bank Account

Receipt

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As in any business deal, there are 2 parties – the buyer and the seller.

Throughout the course of any business dealings, many documents pass

between both parties.

There is normally one person responsible in every company for

purchasing and that is the Purchasing Manager. To do their job properly,

they must be effective in their purchasing.

Effective purchasing involves buying the right quantity and quality at the right time and

price.

There are 6 main documents:

1. Letter of enquiry

2. Quotation

3. Order

4. Delivery Docket

5. Invoice

6. Receipt

1. LETTER OF ENQUIRY Nowadays, enquiries are normally done by email because of the speed of

the response. However, enquiries can also be made by:

Letter

Phone call

Call into the shop in person

Fax

Text Message (Not used much)

Information about products can also be found:

On websites

Classifieds in the newspaper

Advertisements such as TV ads and billboards

Trade associations

Other businesses

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2. QUOTATION

Your address

Their address

Date

Greeting

__________

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TERMS OF SALE

1. Carriage paid – Seller will pay to deliver the goods

2. CWO – Cash With Order means payments must be made when ordering the

goods. Buying from websites is an example.

3. COD – Cash On Delivery means payment must be made when the goods are

delivered.

4. Cash Discount – Given to customers who pay promptly within the written

period of time. In this example, the buyer will get a discount of 5% if they

pay within 10 days of receiving the goods.

5. Trade Discount – Reduction in the selling price for people in the same line

of business e.g. car manufacturing company would get a discount from a

tyre company and vice versa.

6. VAT - Value Added Tax is a tax on consumer spending. A tax is placed on

each good and service at each stage of the channel of distribution so that the

government doesn’t have to wait for the item to be sold.

E & OE

Errors and Omissions Excepted – Means that the person issuing the quotation,

statement or invoice is clear from blame if there is a mistake on it. To resolve

this, a new quotation, statement or invoice is issued.

3. ORDER Goods can be ordered by any means but it is better to have it in writing.

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CHECK STOCK

It is now necessary for the supplier to check if the goods the customer wants are

in stock. It is very important for businesses to have the correct level of stock. A

good stock control system involves:

• Having the correct level of stock

• Stock in good condition

• Prevent wastage and theft

• Accurate records of sales and purchases

• Regular stocktaking

• Good storage facilities

• Computerised reordering system

CHECK CREDIT RATING

When a business sells good on credit, buyers become debtors. Important that

these debtors do not become bad debtors (cant repay what they owe). To

prevent this, sellers carry out credit checks on the customer. It can do this in 3

ways:

1. Contact Irish Credit Bureau

2. Ask for a bank reference (to see if they have paid back loans)

3. Ask for a trade reference (to see if they have paid back previous bills)

4. DELIVERY DOCKET Issued by seller and lists the goods being delivered.

Must be signed

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5. INVOICE An invoice is the document sent from the seller to the buyer and has the

following information:

Invoice No.

Order No.

Customer No.

Date order processed

Quantity of goods

Description of goods

Price per unit and total price

Terms of trade including discounts

Carriage details and terms

VAT details

E &OE (Errors & Omissions Expected)

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The invoice is the source document for the sellers sales book and the buyer’s

purchases book.

6. RECEIPT Written acknowledgement of payment which is signed by the seller and given to

the buyer.

Discount is subtracted

VAT is added

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IF ASKED HOW TO PROCESS DOCUMENTS....

CHECK, COMPARE & FILE

CHECK

Prices

Quantity

Model Numbers

Name & Address of supplier

Discounts

Etc

COMPARE AGAINST

Previous document e.g. compare the order with the quote, compare the

delivery dockets with the order, compare the statement with the invoices

and credit notes, etc

FILE IT.....for future reference.