KEY TERMS

Credit note

A document issued by a supplier to a customer to reduce the amount due for goods and/or services previously supplied and invoiced, perhaps because goods received were faulty.

Price quotation

A document sent to a potential customer quoting the price for specified goods and/or services, including the key terms and conditions. If accepted and signed by the purchaser, it becomes a purchase order from the customer.

Purchase invoice

A document issued by a supplier to a customer as a formal request for payment following the supply of goods and/or services.

Purchase order

A request, usually in writing, by a business for the supply of a specified quantity of goods or a service.

Purchase requisition

A document, which when properly compiled and signed, acts as authority to make a purchase and incur expenditure.

FA1: RECORDING FINANCIAL TRANSACTIONS