Study Notes management accounting acca f2

Four Copies
of the good received note are sent to the following departments: 
(a) The accounts department
(to check against the invoice and purchase order for quantity 
confirmation) 
(b) The stores section
(for updating stock records) 
(c) The purchase department
(to confirm that the goods have arrived) 
(d) The goods received section
(will keep a copy in its records) 
7. Invoice
➢
The supplier’s sales department will send the invoice to the buyer’s accounts department detailing 
the amount that the company has to pay to the supplier. 
➢
The buying company should 
check the invoice
carefully to check the following: 
▪ 
That the supplier has only charged for the goods which has been received (
check Good 
received note
for quantity).
▪ 
That the price and terms are as agreed (
look at the purchase order to check price).
▪ 
That the calculations on the invoice are correct 
(including VAT)
➢
If the invoice is correct, an entry is passed in the purchase ledger. The purchase is then recorded in 
the accounts and the invoice is paid. 
8. Credit Note
If the invoice sent by the supplier has any errors, a debit note is send to supplier by the accounts 
department, and then the supplier will send a credit note (which in effect reverses the invoice). 
➢
A credit note may be issued for the whole of the invoice instead of for the incorrect amount only so 
this way both the supplier and the company can remove the incorrect invoice from their books and 
replace it with the correct invoice. 
➢
Accounts department of buyer authorises it to make payment against it. 
Important: 
Two types of discounts may be offered by the suppliers: