The purchasing and sales processes
The two mirror chains of documents, from purchase request to supplier payment and from quote to cash collection: what each document changes and the controls that prevent disputes.
- 28 cards
- 5 topics
- Free
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Each topic is weighted the way the exam weighs it.
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A few cards from the deck
Purchase order: what is it?
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A document sent to a supplier that commits the company to buy specified quantities at an agreed price.
It changes neither stock nor accounts, but it is the reference: receipt and invoice will be checked against it.
A customer returns 5 helmets from an invoice already issued. What is done?
- A credit note is issued for those 5 helmets
- The quantities on the original invoice are corrected
- The invoice is deleted and a new one is made
- The 5 helmets are deducted from the next invoice, with no other document
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A credit note is issued for those 5 helmets
An issued invoice is an accounting record: it is neither edited nor deleted. A credit note partly cancels it and keeps the history.
The purchasing chain runs from the purchase request to … of the supplier, through the purchase order, the goods … and the invoice.
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The purchasing chain runs from the purchase request to payment of the supplier, through the purchase order, the goods receipt and the invoice.
Procure-to-pay. Each document opens a step; the invoice is paid only after being checked against the order and the receipt.
Goods receipt: what is it?
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A document drawn up when goods arrive, recording the quantities actually received.
It is what brings the items into stock, and the proof that delivery took place before paying.