| Hello friend, today we are going to learn all about | | | | What are the importance's of invoices? You may |
| source documents. I hope this article will be of | | | | ask. |
| help to you. What are source documents? Source | | | | I. Outgoing invoices help the customers check if |
| documents are the documents which provide | | | | the goods delivered to him/her are the ones |
| accounting information. Some of the examples of | | | | indicated in the invoice. |
| source documents are; | | | | II. It helps when writing a sales day-book. |
| 1. Invoice; an invoice is a document which gives | | | | III. In case of conflict between the debtor and |
| the quarterly, quality unit price and amount of the | | | | the organization, it can be used to resolve such |
| items dispatched or received. It also gives the | | | | since the carbon copy is sent to the debtor. |
| discount allowed and transport charges. | | | | Incoming invoices on the other hand help in writing |
| There are different kinds of invoices. These | | | | a purchase day book. It also helps to check if |
| include; | | | | goods received are the ones in the invoice. What |
| I. Incoming invoices; these are invoices that are | | | | is a purchase day book? You may ask. This is |
| received from creditors. That is when goods are | | | | where purchases made on credit during a |
| purchased on credit; they must be issued by the | | | | particular day are recorded. On the other hand, a |
| supplier. | | | | sales book is where credit sales made during a |
| II. Outgoing invoices; these are invoices that are | | | | particular day are recorded. |
| sent to the debtor for example if the organisation | | | | 2. The second type of source document is called |
| has sold their goods on a credit basis. | | | | a cash sale. |