P1 Identifying the Documents Used to Record Business Transactions
P1 Identifying the Documents Used to Record Business Transactions
1. Issue of a Purchase Order
A purchase order (PO) is document issued by the buyer to the seller, indicating types, quantities, and agreed prices for products or services the seller will provide to the buyer. Sending a purchase order to a supplier is a legal offer to buy products or services. If the seller agrees to selling to the buyer it forms a contract between the two.
It should include: * The order number, so it can be traced and matched with invoices and statements * The purchasers name and address which is usually across the middle of the document * The price * The name and address of the supplier * The catalogue/reference number * Authorisation i.e. signature and date * A description of the goods required
The Delivery Address May Be Different
Companies use Purchase Orders for several reasons: price * Purchase orders allow buyers to clearly and explicitly communicate their intentions to sellers * Sellers are protected in case of a buyer 's refusal to pay for goods or services * Purchase orders help a purchasing agent to manage incoming orders and pending orders
If The Order Is Not Properly Authorised It Will Not Be Processed
2. Delivery Note
This is the document is sent with the goods. It lists the items which have been sent. The buyer uses this to check the goods ordered have arrived. It is signed by the buyer and it is then sent back to the seller as a proof of delivery.
The person receiving the goods signs it after checked the quantity of the goods delivered.
Information on the Delivery Note: * The method of delivery * Purchase order number * The signature of the person receiving the goods * The catalogue number and quantity
The Price Is Usually Not On the Delivery Note
3. Invoice
1. Issue of a Purchase Order
A purchase order (PO) is document issued by the buyer to the seller, indicating types, quantities, and agreed prices for products or services the seller will provide to the buyer. Sending a purchase order to a supplier is a legal offer to buy products or services. If the seller agrees to selling to the buyer it forms a contract between the two.
It should include: * The order number, so it can be traced and matched with invoices and statements * The purchasers name and address which is usually across the middle of the document * The price * The name and address of the supplier * The catalogue/reference number * Authorisation i.e. signature and date * A description of the goods required
The Delivery Address May Be Different
Companies use Purchase Orders for several reasons: price * Purchase orders allow buyers to clearly and explicitly communicate their intentions to sellers * Sellers are protected in case of a buyer 's refusal to pay for goods or services * Purchase orders help a purchasing agent to manage incoming orders and pending orders
If The Order Is Not Properly Authorised It Will Not Be Processed
2. Delivery Note
This is the document is sent with the goods. It lists the items which have been sent. The buyer uses this to check the goods ordered have arrived. It is signed by the buyer and it is then sent back to the seller as a proof of delivery.
The person receiving the goods signs it after checked the quantity of the goods delivered.
Information on the Delivery Note: * The method of delivery * Purchase order number * The signature of the person receiving the goods * The catalogue number and quantity
The Price Is Usually Not On the Delivery Note
3. Invoice