Supporting Documents

All business transactions must be supported by documented evidence such as invoices, payment and cash receipts, and internal memos such as warehouse entry and output memos and cash notes. These documents serve to record transactions in the accounting books and provide the  necessary information about the nature of a transaction, its date, its value(s), the parties involved, etc. They are also very important when auditing or assessing taxes, and they serve as legal evidence in the event of any conflict between the parties involved.

The most important documents and records used by enterprises are:

Invoices

All sales are recorded using this document, which includes the vendor’s information, such as the commercial name, commercial  registration number, date of sale, description of the material sold, quantity, unit price and total amount. An invoice comes in two copies, where the buyer keeps the original copy and the vendor the duplicate. Invoices are usually referenced with serial numbers and are not considered an official proof document unless stamped with the vendor’s seal.

Receipts

When cash (or sometimes a check) is received from a client, a receipt containing the date, amount, client’s name and reason for receipt is issued. The original is given to the client and the duplicate is kept. In the same way, when we pay, we get a receipt from the party to whom we pay.

Goods Received Note (GRN)

The goods received note is one of the most important documents used. Upon  the arrival of goods, a GRN is issued to document the process, containing all relevant information such as, supplier’s name, description and quantity of the goods received, type and specifications, name of recipient, name of carman, and the date of receipt.