Chapter 5: Process Documents from Suppliers

Question 1

How may a business order goods / services on credit?

Answer 1

1. Manual system

2. Electronic system
EDI, e-Commerce

Question 2

What manual paper-based documents will a business usually deal with, when ordering on credit?

Answer 2

1. Purchase Order
2. Delivery Note
3. Goods Received Note
4. Purchase Invoice.

Question 3

It is important to that what is done to financial documents to ensure that goods and/or services provided are the correct ones charged at the right price?

Answer 3

A series of checks involving both calculations and references.

Question 4

What should be done if a discrepancy is found?

Answer 4

1. It should be noted

2. Seller contacted so the Creditors account can be credited, and the Debtor’s debited.

Question 5

Why are invoices & credit notes coded?

Answer 5

So that they can be easily entered into the accounting system.