Essential Business Documents: Purchase and Payment Records

Posted on Feb 3, 2025 in Business Administration and Innovation Management

Purchase Documents

These include order, delivery note, invoice, check, bill of exchange, and receipt.

Order

Definition: A document detailing the items that the customer demands and the conditions under which the purchase takes place.

Parts of an Order:

  1. Identification of the company engaged in the order
  2. Order number, place, and date of issue
  3. Identification of the company that made the order
  4. Conditions of the order
  5. Specification of merchandise
  6. Signature of the person formulating the order
  7. Registration of the order

The Delivery Note

Definition: A document that details and justifies the delivery of goods to the customer.

Copies of the Delivery Note:

  • One must be signed by the client and returned to the supplier to prove that the goods have been received.
  • Another copy will be archived for the acquiring firm.
  • One for your file in the store at the time of the sending.
  • Another for the sales department to formalize the invoice.

Elements of a Delivery Note:

  1. Identification of the seller
  2. Identification of the acquiring firm
  3. Characteristics of the shipping
  4. Details of the shipping
  5. Place in which the client signed, regarding the shipping
  6. Observations

Invoice

Definition: A legal document attesting to the provision of services or the sale of goods.

Requirements of an Invoice:

  1. Identification of the company making the sale and the buyer
  2. Parameter number and invoice number to which it belongs, date and location that it is issued, the delivery note with reference to which it relates, customer number, and reference
  3. Description of goods sold
  4. Discount applied
  5. The applicable tax base
  6. Tax
  7. The total bill

Payment Documents

Check

Definition: A document which authorizes a payment from a financial institution of a certain amount of money to the person to whom it is intended or who submits it for collection.

Elements of a Check:

  1. Name and address of someone who has to pay the check
  2. Account number to be paid
  3. Amount expressed in numbers
  4. Person or persons who can afford to collect it
  5. Amount expressed in letters
  6. Place and date it is issued and the number of the check
  7. Series of the check
  8. Signature of the current account holder

Types of Checks:

  • Bearer: It can be paid to any person who submits it for collection.
  • Nominative: Write the name of the recipient and can only be charged by this person.
  • Crossed: There are two parallel lines that intersect diagonally, inside which some of the following words can be annotated: “bank” or “company”.
  • Certified: A check in which the bank certifies that the check data are consistent and that the amount appropriated in the current account is blocked from the time it is recorded until the recovery is presented.

Bill of Exchange

Definition: A document whereby a person orders another person to pay a sum of money on a specified date, usually via a third party.

Parties Involved in a Bill of Exchange:

  • Maker: The person who is owed the amount of the bill, who creates and presents it to the drawee for acceptance.
  • Drawee: The person who accepts the bill and agrees to pay the holder on the day of its maturity.
  • The Policyholder or Holder: The person to whose order the bill must be paid and who charges it on behalf of a financial institution.

Receipt

Definition: A document proving payment of the appropriate amount.

Parts of a Receipt:

  1. Receipt number
  2. Person or company that has made the payment
  3. Date that payment has taken place
  4. Amount of payment in letters
  5. Reason for the actual handing over of the receipt
  6. Amount in numbers
  7. Signature of the person issuing the receipt