When a financial transaction takes place a financial document is usually received or prepared by a business.
When a business buys or sells goods from another business on credit terms we will see some or all of the documents shown in the table below. This process of buying or selling goods is often referred to as the Purchasing Cycle.
A glossary of terms is included below for download.
In this section we will look at the above types of documents and describe their purpose as well as the information that should be included on them and the checks performed when they are either received or before they are issued. We shall introduce the idea of discounts and examine how they should be calculated and recorded.
We shall also consider how financial documents may be coded and lastly, how they should be stored.