Chapter 6- Process Documents from Suppliers

Question 1

what is a price enquiry?

Answer 1

• the buyer asks for a price

Question 2

what is a price quotation?

Answer 2

• the seller sends a price or a catalogue and the buyer decides whether to buy

Question 3

what is a purchase order?

Answer 3

• when the buyer places an order and the business receives the order (starts packing and shipping)

Question 4

what is a delivery note with goods?

Answer 4

• a note with goods or services supplied and a goods received note is prepared

Question 5

what is an invoice?

Answer 5

• the seller requesting payment from the buyer

Question 6

what is a returns note?

Answer 6

• if goods are faulty they may be returned with this note and a credit note is authorised

Question 7

what is a credit note?

Answer 7

• when the amount owed by a buyer to a seller is reduced by a credit note

Question 8

what is a statement?

Answer 8

• a statement sent to the buyer from the seller requesting final payment

Question 9

what is remittance advice?

Answer 9

• payment is finally made by the buyer to seller