Refer earlier article on the importance or role of source documents.
Some of the main data sources and records in an accounting system comprise:
• Sales Order
• Purchase Order
• Invoice
• Credit note
• Debit note
• Goods received note
The different function or role of each source document as follows:
Sales order
-A customer writes out or signs an order for goods or services he requires
Purchase order
-A business orders from another business goods or services
Invoice
-A document for billing the customers for goods or services. The invoice is a request for the customer to pay what he owes. The details in an invoice should tally with the details of a purchase order.
Major information shown in an invoice:
•Name and address of the seller and purchaser;
•Date of the sale
•Description of what is being sold
•Quantity and unit price of what has been sold
Credit note
-A document relating to RETURNED goods or refunds when a customer has been overcharged. It can be regarded as a negative invoice.
Debit note
-Issue to adjust an invoice already issue. Normally a debit note is issued to a supplier as a means of formally requesting a credit note.
Goods received note
-Record receipt of goods , commonly used in a warehouse. Used in addition to suppliers’ advice notes. Accounts department normally want this document as support of goods received before making any payment to the supplier.
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