Type of Definition & description Purpose

/importance
source
document
1 Requisition It is official formal document on which a request is made. You have to fill the requisition Helps to request
form. It will detail such; name of goods/service, description, type and quantity. Store for materials
form department will usually use this document
Helps to
converted into a
purchase order

2 Quotation Formal statement setting out the estimated costs for a particular job/services for example For a customer to
cost for repairing a machine know the costs of
goods/services
It is a document that seller provides to a buyer that offers good/services at stated price, before they
under specific conditions deliver to buy/purchase

3 An order It is a basic document starting off the chain of events for provisioning the business
organization with raw materials of finished goods requirements. When suitable conditions
have been located, a purchasing officer or buyer will place orders for the supply of
goods/services. This is duplicate, printed and having an address and details of the supplier,
quantity, description, and price per unit, source of reference, time and place of delivery.
Orders must be signed by authorized buyer only.

Erimu furniture co. ltd

Po box 137, Kampala
Email: [email protected]
No. 720
PURCHASE ORDER
To;……………..Quotation /Tender Ref……..
Requisition No……..
Please supply the following goods/services in good order and condition on or
before…..and send the invoice immediately to General manager of Erimu co. ltd

item quantity Unit price total

1. Zari 4 3.000 12,000
salt 5 2,500 12,500
2. Biscuit 6 2,000 12,000
s
3. Sweets
total

Approved
(Depart head) ………………. Authorized……………………..
(Managing director)
4 Advice note This is sent by the supplier to the buyer to advice receipt of order, and it Provides full
indicates the time and conditions for fulfillment. It is a prudent course details of the
which improves the efficiency and even flow of supplies from a supplier to supplier’s
a buyer. Where documents are prepared in sets, advice note forms on of the completion of the
sets prepared after receipt of the order. order from his/her
MALUSIMBI HARDWARE LTD customer
POBOX 720
Tel:....................................
Email: [email protected]

Erimu furniture co. ltd

Po box 137, Kampala
Email: [email protected]

ADVICE NOTE
NO. 346
Confirmation of your purchase order No. 123
The following goods will be dispatched to you from our warehouse against the respective
prices on……….

item quantity Unit price total

4. Zari 4 3.000 12,000
salt 5 2,500 12,500
5. Biscuit 6 2,000 12,000
s
6. Sweets
total

Sales manager………………. Signature……………………..

5 Delivery Document prepared by the seller to accompany the delivery of the goods to Provides proof of
the buyer. Its proof of the physical transfer physical transfer
note of goods to the
Its gives a brief description of the goods to quantity, number of package,
nature and quantity of goods being as quantity, quality. A qualified buyer who
signature should be given if the goods are opened/damaged on receipt. The herself/himself
goods are then taken, recorded in the stores for costing purposes. authorized agent.
MALUSIMBI HARDWARE LTD Date………………..
POBOX 720
Tel:....................................
Email: [email protected]

To: Erimu furniture co. ltd DELIVERY NOTE

NO. 36
Po box 137, Kampala Oder no 720
Email: [email protected]
Please receive the below mentioned goods in good order and condition
item quantity Unit price total
7. Zari 4 3.000 12,000
salt 5 2,500 12,500
8. Biscuit 6 2,000 12,000
s
 9. Sweets
total

Received by……………………..

6 Goods Records made to evidence the details of goods received, inspected,

approved and placed in stock
received Erimu furniture co. ltd
Po box 137, Kampala
note Email: [email protected] No. 112
GOODS RECEIVED NOTE
No. 123
Supplier
MALUSIMBI HARDWARE LTD Date………………..
POBOX 720
Tel:....................................
Email: [email protected]

Item no. Description quantity Unit price total

1 Zari salt 4 3.000 12,000
2 Biscuits 5 2,500 12,500
4 Sweets 6 2,000 12,000
Total
Goods received by Name…………….…………………Sign…………..
Checked and verified/certified by Name………………sign………………….

Stamp

7 An invoice a) shows a claim for money regarding goods sold on credit. It is a

-Incoming written demand for payment of goods purchased and sold on credit
-Incoming invoices -received from the creditors
invoices -Outgoing invoices-sent to debtor
INVOICE
-out No. 213
going
Sold to ERIMU FURNITURE CO. LTD
invoices MALUSIMBI HARDWARE LTD Email: [email protected]
Po box 137, Kampala
Email: [email protected]
POBOX 720
Tel:....................................

Invoice date…
Order no.

Item no. Description quantity Unit price total

1 Zari salt 4 3.000 12,000
2 Biscuits 5 2,500 12,500
4 Sweets 6 2,000 12,000
Total
Prepared by………………….
8 Credit note - Shows the decrease in a claim of money. Issued when part of the goods
sold or purchased are returned or priced over-charged is reduced at a later
stage
-Out going credit notes- sent to debtors
-Incoming credit notes- sent to creditors
MALUSIMBI HARDWARE LTD Date………………..
POBOX 720
Tel:....................................
Email: [email protected]

To: Erimu furniture co. ltd CREDIT NOTE 123

NO. 36
Po box 137, Kampala Oder no 720
Email: [email protected]
Please receive the below mentioned goods in good order and condition
item quantity Unit price total
10. Zari 4 3.000 12,000
salt 5 2,500 12,500
11. Biscuit 6 2,000 12,000
s 36,500
12. Sweets
total

9 Debit a) - Sent by the seller to the buyer to correct for under- charge on the
note/supple original invoice
Erimu furniture co. ltd
mentary Po box 137, Kampala
Email: [email protected]
invoice
To: MALUSIMBI HARDWARE LTD Date………………..
POBOX 720
Tel:....................................
Email: [email protected]
DEBIT NOTE
No. 12345
Please receive the below mentioned goods in good order and condition
item quantity Unit price total
13. Zari 4 3.000 12,000
salt 5 2,500 12,500
14. Biscuit 6 2,000 12,000
s 36,500
15. Sweets
total

10 Statement The seller sends the statement of account to the buyer at the end of
every month and it indicates the amount due from the buyer
of account MALUSIMBI HARDWARE LTD Date………………..
POBOX 720
Tel:....................................
-statement Email: [email protected]
STATEMENT
of account
 sent by Date Invoice number REF Amount Balance
1/8/2017 Invoice 278/R 4 12,000 10,000
creditor to a 5/8/2017 Credit note 5 12,000 500
12/9/2017 Cheques 24 6 35,000 1,200
debtor

-Bank Eleven thousand seven hundred shillings only 11,500/=

statement Balance Balance

Bank statement
Date details withdrawal deposit balance
s
1/8/2017 Cheque 2810 200,000
5/8/2017 Cheque 210
12/9/2017 Cash 10,000 200,000

11 Remittance a) sent by the buyer to the seller together with a cheque at the end of
note the month and shows the details of the items against which that
payment was made

12 Receipt Written acknowledgement of money received or paid out.

13 Pay in slip Are books containing sheets called pay-in slips which are used to record
the deposit of money (cash, cheque) into the bank account
books

14 Cheque This is written order from the bank current account holder, addressed to
his/her bank to pay a stated sum of money or to the order of the person
named on the order or to its bearer