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JSS2 Business Studies

Types of Office Documents

Transcript

00:00 Good day students. I am Dr. Laura, your business studies teacher for today. Today, our topic

00:21 is office documents. For today's lessons objectives, at the end of the class, each

00:29 student should be able to understand the term office documents. Explain the types of office

00:37 documents. List the uses of sales documents and the lists or uses of purchase documents.

00:47 What is an office document? An office document is defined as any document that may be used to make

01:01 office work happen more easily. In other words, facilitates the office work and ensure financial

01:10 transactions are documented well, efficiently and effectively. These office documents can be

01:19 in printing forms, electronic or written forms that provide accurate information in a business

01:28 settle. So, office documents can be electronic via email and office documents can also be in

01:37 the written form. What are the different types of office documents? One, the sales documents

01:47 to the purchases documents. What is a sales document? A sales document is defined as a business

01:58 documents which a trader, retailer or seller prepares and uses as an evidence regarding an order

02:08 for the deposits a buyer has made towards a specific product and transaction. As an example,

02:17 a contract document for a vehicle purchase showing the date and number of items or technological

02:26 repair services rendered by a company. So, a sales document is the document that the seller prepares

02:35 and issues to a buyer. So, what are examples of sales documents? One, it is a price list.

02:45 This shows the names of all goods and stock with the price of each item. So, when you go to a shop,

02:54 a store to buy some goods, the seller or the cashier issues to you, the price list of every item

03:02 you are bought. And this shows exactly the goods and the price of each item. So, if you purchase 10

03:10 goods, 10 items, it just shows 10 quantities and then each price of each quantity at the end of

03:17 the day there is a total. Quotations, what is a quotation? It is a written statement that is addressed

03:27 to an intending buyer showing services that are being offered for sales. These are quotations,

03:35 quotations of a product where the seller quotes exactly what the buyer have initiated.

03:43 Now, what is a performer invoice? It is issued by the seller to a buyer stating the description

03:52 and quantity. A performer invoice can also be called a sales invoice which the seller issues to the

03:58 buyer to show exactly what the buyer have purchased. It also, there is evidence of the description

04:08 of each goods. So, for example, 100 shares, 250 school desk and all it shows the price of each desk.

04:18 So, an invoice, it's lost just like it receipts that you are being issued to by the cashier when you

04:25 go to a supermarket. Delivery notes, what are delivery notes? So, the seller gives a van or a driver,

04:36 a delivery note that accompanies a product to the final consumer or even a retailer.

04:42 So, a manufacturer sends goods to the seller or even the seller sends goods to the retailer.

04:48 There must be a delivery note which the retailer sends back to the manufacturer or the

04:55 seller stating received confirmed this is a delivery note. Now, receipts, what is a receipts?

05:06 Everyone of us, we are familiar with the word receipts. When we go to supermarkets, even to buy

05:12 a bottle of table water, the cashier should issue us a valid receipt. Showing the dates where the

05:20 bottle water was purchased, showing exactly one bottle water. You must not make the mistake of buying

05:29 goods or products from a supermarket without being issued a receipt. As an example,

05:35 there have been cases where companies have been sued because the person who is purchasing the

05:42 products have been debitted and amounts that have not even been bought. So, a receipt is just an

05:50 evidence of payments and this is part of a sales document. Preparation of sales documents,

05:59 what are the things we need to prepare a sales document? One, it is the list of the channel of

06:04 distribution, the seller, manufacturer, even Osella, even a retailer. Before he or she issues

06:12 documents of sales, performer imports, he or she needs to understand where is this goods going to?

06:18 Where am I sending this invoice to? So, first is the distributor. Where am I taking it to?

06:24 Who is receiving these goods and items? Who is containing these receipts? And who is going to

06:29 receive this invoice? So, first, he or she should understand the distribution channel,

06:35 the supply chain channel. Who is going to deliver this invoice and who is going to receive it?

06:43 Secondly, supposing details are things we discussed in the previous slides, like the delivery notes,

06:51 even the sales invoice, those are supporting documents that go along with the goods and products

06:57 in the supply chain process. Third, the quotations and the buying details, they have to be a quotation.

07:05 First, the customer have ordered the products. Now, confirmed the seller must confirm the transaction

07:13 and then the quotation, exactly once everything is confirmed, the transaction money are being received,

07:18 the buyer needs to understand the details of the quotations and also definition of the price

07:26 and quantity and items, prospect bets on needs. So, some of the ways of preparing a sales

07:33 documents is the prospect bets on needs, needs of the customers. Now, the seller and manufacturer

07:40 must understand the measure of the progress of the sales delivery. In order to send a

07:45 performer invoice to the buyer, the manufacturer or seller needs to understand what are the things

07:52 that entails in delivery process. How do these goods get to the buyer on time? Estimation of

08:00 conversion in the process where the buyer initiates interest in the good. What's how long will it take

08:09 for the buyer to initiate this process and for this deal to be sealed. So, the buyer has initiated

08:15 interest in a particular good from the manufacturer or the seller or even a retailer.

08:21 Sometimes, even the buyer buys goods online via Amazon or eBay. Once the buyer said,

08:28 "I am interested in this product." Now, the seller or the producer or the manufacturer or even

08:35 the retailer now asks for payment. Once the payments have been confirmed, the seller sends back

08:43 notes to seek confirmed receipts. Now, the buyer sends back E or E or address to the seller details

08:51 of the quantity of the product description and conversion rates. So, the seller needs to understand

09:00 the time frame where E or she received this transaction. All of these have to be put together in order to

09:06 prepare a sales document. What are the uses of sales documents? Let us see. One, for production

09:15 purposes, the producer needs to understand the quantity demand in order to supply the goods

09:22 for future purposes. If the manufacturers sees that 20-20 shares have been bought this month,

09:31 E or she increases the amount of shares, for example, 25 for the next month, in order to have

09:37 excess and opportunity for people to buy shares, not to go back. So, production costs E or she

09:43 asks to put into consideration shipping orders. What are shipping orders? Where buy a buyer

09:51 purchases a good or product online? There has to be a shipping order. In the sense that E or she

09:57 receives an invoice coming along with the products that E or she have purchased online,

10:04 billing and cancellation. Some customers initiate interest in a product and even have their payments.

10:11 They decide to cancel the product, they decide to cancel the payment, they decide to cancel the

10:18 transaction saying they are no longer interested and the seller tries to understand how to retrieve

10:26 the money from the bank, how to send the money back or take away some interest. So, they are very,

10:33 very relevant uses of sales documents. So, in the case of billing and cancellation, if there is no

10:38 invoice, there is no way the seller is going to go back and retrieve the payments. So, there

10:43 has to be an evidence of payments, sales contracts and agreements. Between the buyer and seller,

10:49 they have to be a form of agreements. If the buyer have initiated interest in the goods and

10:55 products, the seller needs to confirm this product is available. So, once the product is available

11:01 and the buyer has said, "Oh, yes, you can decide to send me the products." So, in this case,

11:07 the contracts have been sealed. So, all these are uses and relevance or essential ways

11:13 where sales documents can be prepared. What are purchases documents?

11:18 Purchases documents is a written or electronic documents that contains detailed information

11:26 about a good purchase or services rendered by an organization. It can be seen as a sales invoice

11:35 and evidence to the seller or trader and it can be seen as a purchasing invoice on the

11:42 perspective of the buyer. Words are some of the preparation of a purchases documents.

11:50 One, order from the buyer. They have to be a confirmed order that the buyer is interested

11:58 and has made payments. For a purchase documents, two, confirmation order. The seller must confirm

12:07 that the order is received and he or she can go ahead to sell the product to the buyer.

12:13 Three, bill of purchase materials. Four, inspection notes. In cases where the products

12:21 are being shipped via Ivan, a post office or a postman or hand to hand, they have to be an inspection

12:30 note. Saying the goods are in good shape. There is nothing wrong with this good or product. For example,

12:36 you buy a laptop online. Once it is delivered to you, you must check that the screen are not broken.

12:43 This comes with an inspection note. This inspection note clarifies that everything is in good shape.

12:51 Now, received notes. The buyer receives the note that says purchase documents are being validated.

12:59 So, in all cases, the buyer must receive a note stating valid. The products are in good shape

13:07 and he or she has received the goods. Now, store requisition notes is another

13:13 preparation of a purchase documents. Finally, transfer and return notes. When you buy things online,

13:20 there is a possibility that you want to return the products because this is not the same product

13:24 that you have purchased. This is not the same products that you have initiated and we have

13:29 confirmed payments to the seller. So, sometimes, we return goods. Probably, they are taking the

13:35 products with a 3D camera and it looks different from what we see online. So, the buyer has a right,

13:42 legal right to return these products. If there is no return note, there is no way the buyer can

13:49 return these products. So, for preparing a purchase documents, the seller must account for a transfer

13:56 and return notes. What are the uses of a purchase documents? One, time management. A seller must

14:06 consider the time frame because it takes time to prepare these documents. For example, the invoice.

14:14 It takes time to document each details of the quantities and even the item description of the items,

14:22 it takes time. A seller must understand that he or she must have a good time management.

14:28 Two, legal protection. Every seller must have a legal backup. He or she must understand the ethics

14:37 of doing business. So, legal protection for the seller and also for the buyer. In some cases,

14:44 as an example, a buyer purchases a product and pays for the product. But banking systems may have

14:52 error and in this case, the seller does not receive the transaction payments. In this case, there is

14:58 a legal protection both for the seller and for the buyer. This is not their problem but the banking

15:04 system. Thirdly, history of purchases. In order for the seller to account for the amount of demand

15:11 and to understand how many things he or she needs to supply, there is a need to have a purchases

15:18 documents. For history, in the future, to understand that there is a need to supply more products

15:24 in the future. To make more sales, to increase productivity. These are uses of a purchases documents.

15:30 Budgeting. The seller or manufacturer needs to understand how much would be put into the cost of

15:35 production of each product. A handsome procurement and payments. Manufacturer needs to understand

15:42 how to improve the product, how to make it look more nicer. And also, to understand the transaction

15:48 of payments. To make sure that payments history is well documented. This is also part of having

15:54 in the good protection. It also makes easy access to data quality. So the manufacturer understands

16:02 he or she needs to improve on quality or even to understand the durability of the products.

16:09 Planning. It helps the manufacturer to plan. It helps even the retailer to plan. This also is

16:17 having a good organization of time management. And lastly, the manufacturer needs to understand

16:23 unexpected expenses that may come with purchases. Sometimes the manufacturer needs to be at the cost

16:31 of the goods that have been written. Also, to understand tracking of this product. Some manufacturers

16:37 send goods to the retailer without tracking the product. It may be missing. Even customers

16:42 excise. They always encourage manufacturers retailers to have tracking devices. Should in case

16:49 there is theft or anything that happens like natural disasters or accidents. So these are

16:55 uses of purchases documents. Moving on. I employ students to drop purchase documents, but this

17:03 is just my watch. What is a purchase document? We have understood that. But this is just an example

17:09 of how a purchase order form looks like. So it states the company that is selling the products,

17:15 the name of the issuer, the dates, even the budgets, use of items, and it's who is it's ordered by.

17:23 Quantity. The catalog number, which is the product number, and each item.

17:29 As we reach the end of today's lesson, I encourage each student to draw at least two purchase

17:40 documents. To draw two sales documents. And we have reached the end of today's lesson. I am

17:48 Dr. Laura. Thank you for watching. Till next time.