Unit 8 - Accounting Systems P1 identify the documents used to record business transactions
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Unit 8 - Accounting Systems
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PEARSON (PEARSON)
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BTEC Level 3 National Business Student Book 2
Unit 8 - Accounting Systems P1 identify the documents used to record business transactions. BTEC business level 3 extended diploma. Please leave a review if you found this useful, thank you!
unit 8 p1 identify the documents used to record business transactions
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Unit 8 - Accounting Systems
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Sadia Hussain Unit 8 - Accounting Procedures
Accounting Systems
‘’Source documents are the business forms that document all financial
transactions of a business from buying a chair to selling a pencil. Business
forms include purchase orders, receipts, and invoices. The actual specifics of
business forms used by companies vary greatly. Some companies require an
unnecessary amount of paperwork to document a simple purchase order.’’
Quotation
The purpose of the quotation is for the seller to offer the goods to the buyer. It
includes the quantity of the goods, prices and other description and details of
all the items. The buyer requests the seller to send them a quotation so they
know what the buyer has to offer them; the seller sends the quotation to the
buyer who requested it informing them of the quantity, description and the
agreed prices of the goods. It is completed by the seller and sent to the buyer
so they are able to make a purchase order.
If there are mistakes in the quotation, then the customer will receive incorrect
information/description of the goods, this will lead them into purchasing the
wrong products which will waste a lot of time for both the buyer and the seller.
Purchase order
The purpose of a purchase order is to order goods and services for the buyer. It
is for the businesses to fill it in and send it to the suppliers to order the
supplies. The buyer will fill in the purchase order; it will include the name and
address of the seller, details of the goods that are required such as the price
and the quantity and then send it to the seller.
The purchase order should be accurate so the wrong items do not get
delivered and the buyer receives exactly what they require. The consequences
of an incorrect purchase order will cause the business to receive the wrong
items which they will then have to return back to the supplier, this can waste a
lot of time, and the business may lose a lot of customers if they don’t receive
their orders on time.
Delivery note
The purpose of a delivery note is that it states what goods are delivered
alongside the package to the buyer to make sure the goods that are delivered
are accurate and no mistakes are made and also for proof reasons. It includes a
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