Sales Transaction Management: Phases and Documentation

Administrative Management

• Assumes the following areas:

• Knowledge of documentation.
• Preparation of documentation.
• Treatment of documentation.
• Registration of documentation.
• Archiving of documentation.
• Control of the management process. In our subject: the sales transaction.
• Obligations inherent in the processes.

The Sales Transaction

• Is the process directly associated with the object. The company buys raw materials, goods, services, later sold to the market as processed product or service.

Phases of Sale

• Knowledge of business and the market.
• Order.
• Supply.
• Billing.
• Billing / payment.

Knowing the Company and the Market

• Identify business needs for its objects.
• Locate future suppliers/creditors and solicit bids.
• Select the most convenient suppliers/creditors.

Order Phase

• Operation through which identifies the goods or services that the customer (buyer) requests the supplier/creditor (seller of goods or services), and the conditions of purchase (price, payment terms, time and method of delivery the goods).

Ways to Order

• Order by Phone (subsequently confirmed by letter or purchase order).
• Order by mail (letter and/or purchase order).
• Order by fax (referring business letter or purchase order).
• Order telematics (Internet).

Order Documents

• Commercial Charter which details all the conditions of purchase.
• Proposal form. A representative visits the customer-company and completes the proposal (document of the enterprise-provider).
• Note the order. The company-client sends a letter and/or document in order to own the company-provider.

Supply Phase

• The seller receives the proposal or purchase order. Accepts it or not, according to customer reports (formality, solvency).
• If accepted: Store prepares goods, delivery note (if delivery at the store) and logs in the store information the output of the product to control inventory.
• Goods are sent to the client with the delivery note (if delivery at the store) to sign and date the client with the agreement of goods.
• The client records the entry in the file from storage to control inventory.

Billing Phase

• The seller receives the waybill made: last bill and sends it to the buyer, accounts and records in the register of invoices issued (for VAT).
• The client checks the invoice, accounts and records the invoice received (for VAT), estimates the cost price of the goods and records in the store information. If the bill is wrong, the seller shall correct or issue a credit note (if the customer does not follow the VAT).

Payment in Cash or Aftermarket

• Cash or ceremony next order.
• By bank transfer account to account (subject to bank commission).
• By check or order for payment against a bank account (the buyer). In general, when the payment is to the seller in cash, a discount for prompt payment is offered.

The companies account for payment/recovery and record in subsidiary ledgers for cash or bank. The seller issues a delivery receipt and original invoice to the buyer.

Credit Payment

• Documented by bill of exchange or promissory note that the seller and the buyer complete agree to pay at maturity (30, 60, 90 days), usually by banks.
• The seller can be paid at maturity effect, managing the collection in the bank or transfer ownership to another person or bank (endorsement), taking deposits and losing interest and commission.
• Not documented (usually 30 days).

Buyer and seller shall record the effects in the Register of payables/receivables.

Terms of Sale

• Delivery time – specific date or deadline for delivering goods.
• Hours of delivery – In business opening or loading and unloading (municipal).
• Place of supply – Address of the seller, the buyer or end-or private-public transport.

Expenses of the Sale

• Transportation – by the buyer, seller or shared. A postage paid (in origin) or postage due (on arrival).
• Insurance – Ensure goods in transport.
• Cost of loading and unloading (specialized).
• Packaging – Protection of the product. Not included in the price of the product. E.g., box.
• Packaging – What contains directly the product, i.e., container or vessel. Included in the price. E.g., bottle.

The Delivery Note

It is the detail of the goods that are delivered to the buyer and the conditions under which the order was made. It can be:

• NO MEASURE – The only value that may appear, but not required is the unit price of items. It is the most common.
• RATED – They also include the transaction costs and VAT, simulating an invoice. It is used in cases which will only provide an invoice for all purchases made during a period of time (up to 1 month).

The Invoice

• A document issued by the seller to the buyer with the reckoning of the operation.
• The employer or professional must issue invoices for trade (or group of operations than 1 month per client).
• Buyer and seller must keep invoices and/or cash register rolls for 6 years (10 years if investment goods, 15 for land and buildings) in chronological order of issuance.

Types of Invoices

• FULL – When the buyer is a businessman or professional who follows the input VAT. Includes all information required by law (identification of parties, a breakdown of items with your assessment, expenditure, VAT tax, fee).
• SIMPLIFIED – If the invoice amount does not exceed €90.10 and the buyer is a businessman or professional (no need to identify it).
• TICKET OR CASH VALE – In retail sales, passenger transport, hospitality… Provided that the invoice amount does not exceed €3005. You should see the words “tax included” or the VAT rate applied.

Invoice: Concept of Interest

• TOTAL GROSS GOODS – Amount of product * price.
• TOTAL NET – Total Gross – Discounts and/or deductions.
• TAX BASE – Amount to implementing VAT: Total net + costs of the operation.
• TYPE – Percentage of VAT applies to the tax base by type of article (16, 7, 4%) and (4, 1, 0.5%, if surcharge of Equivalence).
• FEE – VAT Tax Base / Rate
• TOTAL INVOICE – Total Net + Expenses + Fee + VAT (Tax Base + Fee).

Unit Production Costs

Speakers all concepts relevant to the product and assessed the value of the unit/box.

• Price per unit, box…
• Discount shopping.
• Discount for prompt payment (after subtracting the trade discount, if any).
• Expenses (postage, packing, packaging, insurance…)
• Tax is not recoverable.

PRICE COST = unit price – Dto. Commercial – Dto. Ppp + Expenses + Tax recoverable.

Unit Price:

Spoke unit cost price/product box… …and profit (%) that the employer wishes to make in the exercise of their activity.

SALE PRICE = unit cost price + profit

Documents Receivable/Payable

• Receiving.
• Credit and debit cards.
• Bank transfer.
• Bill of Exchange/Promissory Note.
• Check/Bank Check.

RECEIPT

A document drawn up and signed by the person (seller) receives from another (buyer) by a specified date, an amount of money as payment of part or total debt (invoice).

• Can be replaced by “received” signed by the seller and the company stamp on the original invoice.

TARJETA DE DEBITO/CREDITO

Son tarjetas bancarias con cargo a una cuenta corriente o de ahorro, que solicita el titular de la cuenta a su Banco y que utiliza para realizar operaciones en cajeros automáticos o abonar en establecimientos comerciales que tienen convenio.

• DEBIT – the only available account balance.
• CREDIT – You can also avail of credit granted by the Bank.

BANK TRANSFER

The owner of a checking or savings account at your bank ordering the transfer of funds to another account in the same or different entity (such as payment of a debt).

The Bank charges the payer expenditure for the service provided.

POINT OF CHANGE/PAY

Document issued by a person (drawer-seller), ordering another (book-buyer) to pay a certain sum of money (debt) as of (and later postponed) and place (residential or Bank) for a beneficiary (holder or holder).

Features