Vous êtes sur la page 1sur 2

POB Grade 10 Business Documentation

Hire Purchase is a form of credit buying, where the buyer takes goods from the supplier and agrees to pay for
them in installments. After the supplier does a background check on the buyer to determine whether it is safe to
sell to the customer, a hire purchase contract is then prepared to outline the following:
1.
2.
3.
4.

The goods do not belong to the buyer until he has made all the installment payments.
The buyer cannot sell the goods while he is still making installment payments on these goods.
None of the money will be refunded if the buyer decides to return the goods.
The seller may repossess the good if the buyer fails to make installment payments, but the seller give the
buyer notice before repossessing goods.

Business Documents
The complete process of buying or supplying goods and services is known as a transaction. At various stages in
the transaction, documents are created. These documents provide proof that the business transaction has taken
place and are called paper-work or business documents.
Purposes of Business Documents
1. To provide proof that a transaction took place.
2. To provide information about suppliers products/services, style, sizes and prices etc.
3. To provide financial/accounting information used to calculate companys profits and help managers
make decisions to improve the companys performance.
4. Used for future reference e.g. if a customer has some concern about his bill, the company can check its
record of the transaction,, which be in the companys file of on its computer.
5. Saves time as information can be easily retrieved when required.
Common Types of Business Documents
1. Requisition This is a form filled out by one department and sent to the Stores department of the same
company where goods are stored. The requisition is a list of items being requested by the department
that is sending the requisition. The requisition must be signed/approved by the relevant person in the
department who is making the request, usually the department supervisor or manager.
2. Letter of Enquiry Sometimes a companys Stores Department does not have particular items that
another department might need at that that particular time. In this case, the company may choose to
source the goods from another company. The letter of enquiry is therefore sent to a seller (or various
selling companies) to get information such as: details about goods, prices of goods, whether goods are
available, how long will it take for goods to be delivered and what is the sellers payment procedure etc.
3. Proforma/Quotation the supplier responds to the letter of enquiry by providing a document used to
show the description and prices of items on the letter of inquiry. It shows the buyer how much it will
cost to purchase the goods required.
4. Purchase Order this document is then sent to the supplier by the customer as an official request for
the goods needed. This can be done through a letter of the customers special preprinted order form
which has a specific order number printed on it. The purchase order outlines the exact description of the
goods being ordered and sometimes state when the goods are expected (if they are needed urgently or
not) and what terms of payment will be used (cash on delivery C.O.D. or credit and the length of the
credit period, 14 days, 30 days etc.)
5. Invoice, Packaging Note, Delivery Note and Advice Note the invoice gives full details of the goods
sent to the customer. It shows quantity and description of items sold, any taxes charged, discounts
allowed and the terms of payment etc.
6. Debit Note this document is sent to a customer if the customer was undercharged by mistake on an
invoice. The mistakes could be errors in calculation of prices, taxes and discounts or if n item that the
customer received was left off the invoice. The debit note outlines the additional to be paid by the
customer.
7.

Credit Note this document is issued to customers in the following cases:


If the customer was overcharged by mistake.
If some of the goods were damaged while being transported.
If the customer returns some goods which they had previously bought.
Therefore the credit note is used to reduce the amount that the customer owes as it outlines the amount
that the customer should not pay.

8. Stock Card this document gives a detailed description of the stock/goods received by a business
(stock on hand/stock at the business). Adjustments are made to the card each time goods are received or
issued (sold/used up).
9. Statement/Statement of Account this document is prepared by the supplier and sent to the customer
when payments are due. It outlines all the transactions that the customer has done with the supplier over
a particular period of time. It shows a list of invoice totals, credit and debit note totals, payments made
by the customer as well as the total still owing by the customer.
10. Bill of Lading this document is used when transporting goods by ship. It is issued by the captain of
the ship in three copies (one for the seller [consignor], one for the buyer [consignee] and the ship captain
keeps the other copy). The bill of lading gives information on the description of the goods being
delivered, the name of the seller and port the goods are shipped from, as well as the name of the buyer
and port where the goods will be delivered to. The bill of lading serves as a receipt for the goods and is
also a contract between the consignor and the shipping company that is transporting the goods.
11. Airway bill similar to the bill of lading, except it is used when transporting goods by air plane.
Class Activity:
The Accounts Department of NoName Ltd. needs the following office supplies:
2 packs of letter size typing sheets, 1 dozen black ink pens, half dozen red ink pens and 1 case of tissue.
a) Prepare a requisition to be sent to the Stores Department of Bashment Ltd.
b) The Stores Department did not have any tissue and only had half dozen black ink pens. Prepare a Letter
of Enquiry to be sent to a particular supplier and ensure that the business orders more than it needs now,
to ensure it has pens for future use.
c) Prepare a copy of the Proforma received from the supplier.
d) Prepare a Purchase Order for the items noted on the Proforma Invoice.
e) Create a copy of the invoice that should be sent with the goods when they are delivered.

Home Work Please research Bill of Sale


Bills of sale have been used for centuries, when people have bought certain types of goods -- including horses,
dogs, boats, or cars. A bill of sale is a record of a sale, stating that an item was sold by a specific seller on a
specific date, at a specific place, and for a specific amount of money or other valuable property.
The bill of sale is a hybrid legal document with two purposes: it confirms transfer of title to (ownership of) the
property and, in doing so, serves as evidence of a contract. Because it is commonly used for official purposes -to register a car or a boat, for example -- a bill of sale may have to conform to state regulations. For example,
many states require that a vehicle bill of sale include an odometer reading; some states require it to be notarized.
Both parties can sign a bill of sale but, in many instances, only the seller needs to sign it.
Things can get complicated when a bill of sale is provided as security for a loan. For example, if someone
pledges a car as collateral for a loan, the lender might require a bill of sale for the car, to become effective only
if the borrower defaults on the loan.
A bill of sale can also be used as an element of a loan. For example, if you're buying a car using financing
(installment payments), the complete agreement can be framed as a bill of sale, although technically the transfer
of title might not happen until all payments required under the loan are made. State laws often regulate loan/bill
of sale combinations because some sellers or lenders may abuse the practices described above.
A bill of sale can also include warranties (promises and assurances as to the condition or history of the item).