Customers bank Essay

For Businesses to survive they need to rely on customers buying their goods or services sales can also come from other businesses or members of the public. 1) Goods are what are sold to the customer . For example businesses like wholesalers and retailers sell goods. Goods are tangible things, they are used up. Goods are made up of materials like woods, food and cotton. 2) Services Services are sold also but are not tangible, you can’t see them. A service is a skill which is provided in order to help the customer or business. Services include National Health, Banking, Teaching and the police. 3) Business to business Businesses can offer their goods and service to other business. For example an airline company will purchase the services of a catering company. They do this so they don’t waste time making their own food. 4) Business to customer Business also sell goods and services to customers or individuals. For example banks offer their financial services to individuals who need loans or advice. Sales Documents 1) Order received ( see example 5) This document is produced by the supplier and is sent to the customer. This is used to conform with the customer what they have ordered. Details like the product description and how many they require are written down. 2) Sales Invoice (see Example 6) This document is sent to the customer to tell them how much they owe. Its similar to the purchase invoice and includes things like VAT and discounts. Also it includes the description of the product. The sales invoice is different because its’s only issued when a good has been delivered and has not paid for unless the customer has paid immediately. Delivery Note (see Example 7) A delivery note is given to the customer when the goods are delivered. The documents tells you what has been delivered and how many has been delivered. Also on it is the customers address so its similar to the goods received note. This document is a security measure so the right goods end up in the right place. The delivery note is given to the driver of the truck who deliver the goods and is then passed on to the customer. Sales Credit Note (see Example 8) This document is used by the customer in the event of an error in the supplied goods. For example if you bought a pair of shoes returned home and found a tear in them you can ask for a refund or accept a sales Credit Note. This would allow you to return to the shop in the future and exchange the note for a good or goods of the same value. The credit note is issued by the supplier and is sent to the customer. Statement of Account ( see Example 9) A statement of account is sent by a supplier to a customer. It states all transactions made in the month by the customer, any money outstanding, the total amount of money due on each invoice and the total balance which has to be paid. Remittance Advice (see Example 10) A remittance advice slip will often accompany the statement of account form. It is sent with cheque by the customer. This slip helps the supplier accurately process the payment when it is received. The supplier issues the remittance advice slip and the customer makes use of it by matching it with the invoice or statement of account and then sends it back with the cheque or other payment, this makes it easier for the supplier to match up cheque to invoices When you pay for something in cash you need some sort of proof you’re bought it. The proof you need is to collect a receipt. This is needed if you want to make a refund or if you want to exchange your product for something else. The receipt is written proof of your purchase and should include the following:- The date, Receipt number, Name of company, Description of the product, Amount paid (inc. VAT). A copy of the receipt is kept by the payee for their records and to provide evidence of VAT for recording purposes. Cheque (see Example 12) When you pay for something by cheque the cheque the cheque itself is a proof of purchase so a receipt is not needed. The cheque is similar to the receipt and will include the date and the amount. But the cheque also has the name of the person you are paying. The cheque will then be taken by that person to their bank to be cashed. A cheque is a receipt because when you pay by cheque shows up on your bank statement which acts as a receipt. Paying-in slips (see Example 13) Paying-in slips are used to put money into a bank account. This slip has a detachable section which is given with the cash and cheque the bank who place the money into the account. Left over is a section which is stamped to show that the money will be credited to our your account. On the slip is the amount deposited, the date and the name of the bank. Paying in slips vary from bank to bank. Banking statement (see Example 14 ) If you have a bank account you will also have a Bank statements. These are used to tell how much you have in your account, how much money you deposited and how much you have withdrawn and to see how much you invest you have earned It also tells you where and when you took your money out. Bank statements are basically used to keep track of your money. Cash is the most common way to pay. Its comes in two forms, coins and banknotes. In addition to this there are different note and coins which represent different amounts. Banknotes and coins can be copied or forged so it is wise to check the notes are genuine. Credit Card. Credit Card are alternatives to cash or cheques. They can be used at home and abroad wherever they are accepted. Instead of handing over cash or a transaction voucher by the customer. This voucher is then sent to the bank, who then sent the customer a statement saying hour much they owe. The statement usually takes a long time to arrive so the cardholder has time to come up with the money they owe. This is the interest free period, but interest is changed if the account is not cleared in that period. Debit Card A Debit Card is basically a cheque book and cheque card combined. At the point of purchase the money is debited from the customers bank account, after which a transaction voucher has to be signed by the customer so that company knows the right person has used the right card. Also so the company can keep a record of whom has shopped at their establishment. PC5 Importance of security It is very important that financial transactions are recorded clearly and accurately to protect them from theft, fraud and criminal damage . Security checks are there to prevent fraud, theft and to ensure high standards of honesty. By constantly checking records and by special equipment which can detect security checks.