Source Documents

Source Document (Accounting)

1. Source Documents

2. A cancelled check is one that has been cleared by cashing or depositing it, rendering the check null and void for further transactions and cannot be re-used. A cancelled check indicates that the clearing process has been complete, and so canceled checks can be used as proof of payment. A check may also be cancelled by its writer before it has been transacted by alerting the issuing bank. Cancelled Checks

3. An invoice is a document that maintains a record of a transaction between a buyer and seller, such as a paper receipt from a store or online record from an e-tailer. Invoices are a critical element of accounting internal controls and audits. Invoices generally outline payment terms, unit costs, shipping, handling, and any other terms outlined during the transaction. I nvoices

4. Product receipt is the process of recording that products that were ordered have been received, so that the purchase order (PO) lines can then be processed for invoicing. When products arrive, they are first marked as Registered. The products might then go through additional processes, such as quality management, before they are finally marked as Received. P urchase Order

5. A delivery challan is a document that contains details of the products in that particular shipment. It is issued at the time of delivery of goods that may or may not result in a sale. C hallan

6.   D ocument  that  shows  the  details  of  goods that have been  sent  from a  seller  to a  buyer , and that  travels  with the  goods. It shows the amount paid or payable. It is generally composed of five copies. C onsignment N ote

7. Goods received note is a document that acknowledges the delivery of goods to a customer by a supplier. A GRN consists of a record of goods that the buyer has received. This record helps the customer compare the goods delivered against the goods ordered.  Goods Received N ote

8. A debit note, or a  debit memo , is a document issued by a seller to a buyer to notify them of current debt obligations. Debit notes are also used in business-to-customer transactions, such as when a customer returns goods to a business received on credit. In this case, the buyer issues the debit note to the seller. D ebit N ote

9. Credit Note A credit note is made out evidencing that credit has been granted to a debtor. The effect of a credit note is that the amount of the customer’s indebtedness is reduced or, if it is already settled, to enable the customer to purchase goods to the value of credit without further payment.

10. Cash Memo Cash memo is prepared by the seller when goods are sold against cash. It has details of goods sold ,quantity, rate of each item and the total amount received, besides the date of transaction and other terms and conditions. It is an evidence of sales for cash.

11. Receipt When a cash or cheque is received from a customer, a receipt for the amount received is issued. This source document contains details regarding the date ,amount, name of the party and nature of the payment.

12. Pay-in-Slip It is a sourced document used for depositing cash or cheques into bank. A pay-in-slip is a form available from bank. It has a counterfoil which is returned to the depositer with cashier’s signature, as receipt.

13. Cheque A cheque is a document in writing, drawn upon the bank with which the account is held and is payable on demand. The bank supplies cheque forms. It is a negotiable document.

14. Voucher A voucher is a document evidencing a business transaction. When a transaction is entered into, an evidence to that effect is also stablished.