Office documents are written records used in an organisation to facilitate the work of the business. They serve as evidence of business transactions — especially where goods are sold or purchased. In bookkeeping, these are often called source documents, because they provide the original information from which entries are made.

Office documents are broadly divided into two major categories: Sales Documents and Purchase Documents.

1. Sales Documents

These are documents used to record the sale of goods or services by an organisation. They provide evidence that a transaction has taken place and help both the seller and buyer to keep accurate business records. Below are the main types of sales documents and their explanations:

1. Invoice: This is a document sent by the seller to the buyer to demand payment for goods supplied or services rendered. It shows details such as the description of goods, quantity, price, total amount, discounts, and payment terms. It serves as a bill to the buyer and as a record of sales to the seller.


2. Pro forma Invoice: This is a document sent before the actual sale, showing the estimated cost of goods or services. It is usually sent to a potential buyer who has requested details about price, quantity, and delivery. It is not a demand for payment but an offer or quotation to help the buyer decide whether to place an order.


3. Credit Note: This is a document issued by the seller to the buyer to correct an overcharge or return of goods. It informs the buyer that their account has been credited with a certain amount, reducing what they owe.


4. Debit Note: This is a document sent by the buyer to the seller to inform them that their account has been debited for goods returned or for an overcharge discovered. It serves as a request to the seller to issue a credit note.


5. Receipt: This is a written acknowledgement that payment has been received. It shows the amount paid, date, payer’s name, purpose of payment, and the signature of the receiver. It serves as proof that the buyer has settled a bill.


6. Delivery Note: This is a document that accompanies goods being delivered to the buyer. It lists the items being delivered and is signed by the buyer to confirm that the goods have been received in good condition. A copy is retained by the seller for record purposes.


7. Price List: This document shows the prices of goods or services that a business offers. It is sent to customers so that they can know the cost of items before making a purchase. It helps both the buyer and the seller to have clear information on prices.


8. Catalogue: A catalogue is a booklet or pamphlet containing pictures, descriptions, and prices of goods available for sale. It helps customers to make choices from a wide range of products and know their specifications.

2. Purchase Documents

These are documents used by an organisation when buying goods or services. They provide evidence of purchases made and ensure that buying processes are properly documented and controlled. The main types of purchase documents are explained below:

1. Letter of Enquiry: This is a letter sent by a potential buyer to a supplier to ask about the availability, prices, terms of delivery, and other details of goods or services. It helps the buyer to gather enough information before deciding to purchase.


2. Quotation: A quotation is a document sent by a supplier to a buyer in response to a letter of enquiry. It shows the prices, quantities, delivery dates, payment terms, and other conditions under which the goods or services can be supplied. It helps the buyer to compare offers from different suppliers.


3. Order Form: This is a document sent by the buyer to the seller to formally request for goods or services. It shows the items to be purchased, their quantities, prices, and expected date of delivery. It serves as an official instruction for supply.


4. Receipt: This is given by the seller to the buyer after payment has been made for goods purchased or services rendered. It serves as proof that payment has been received and that the transaction has been completed.


5. Delivery Note: This is issued by the supplier and accompanies the goods being delivered to the buyer. The buyer signs it to confirm that the goods were received in the right quantity and condition. It serves as evidence that the goods ordered have been supplied.

When preparing a sales document such as an invoice or delivery note, an organisation should ensure the following:

1. Include the seller name, address, and contact details.


2. Include the buyer name or customer details.


3. Describe the quantity and description of goods or services sold.


4. Show unit price, total amounts, and any applicable discounts and taxes.


5. Include the date of sale and an invoice number or reference number.


6. Ensure clarity and accuracy so that the buyer understands what has been sold and what is owed.

Sales documents help the organisation in several ways:

1. They provide evidence of sale to the buyer.


2. They help in recording income and preparing accounts.


3. They serve as proof in case of dispute over what was sold.


4. They help in monitoring which goods have been delivered and how much payment is owed.


5. They assist in filing and retrieval of records when needed.

Purchase documents help an organisation when acquiring goods or services. They do the following:

1. Provide evidence of purchase.


2. Help in tracking what goods have been ordered, delivered, and paid for.


3. Assist in verifying whether the goods or services match the order and quotation.


4. Help to control expenditure and maintain proper records.

In preparation:

1. A letter of enquiry is sent by the buyer asking for availability, price, and delivery terms.


2. A quotation is sent by the seller in response, showing goods available, price, date of delivery, and mode of delivery.


3. An order form is sent by the buyer once they accept terms, stating the items to be bought, quantity, quality, and desired delivery.


4. On receipt of goods, a delivery note or receipt is used to confirm that goods have been received and payment may follow.

Office documents are important because they:

1. Serve as legal evidence of business transactions, whether sale or purchase.


2. Help maintain accurate accounts and financial records.


3. Enable the organisation to track goods sold or purchased.


4. Assist in internal control, ensuring that goods delivered match orders, prices are correct, and payment is properly authorised.


5. Help in filing and retrieval of records for audits or management review.

---

Summary

In summary, office documents are vital tools in any organisation. They consist of sales and purchase documents which play a critical role in the documentation of business transactions. Properly prepared and used, they ensure accuracy, accountability, and proper record-keeping.

---

Practice Questions

1. Define what is meant by office documents.


2. List the two major categories of office documents and give four examples of each.


3. Explain the uses of sales documents in a business.


4. Describe how a quotation and an order form differ in purchase documents.


5. Why is it important for a business to maintain proper office documents?


6. Prepare a simple invoice format (just list the headings you would include).


7. Explain how a delivery note is used in a sales transaction.


8. What role do purchase documents play in controlling expenditure?


9. Draw up a simple order form layout with columns you think are necessary.


10. Explain why office documents are considered source documents in bookkeeping.