Definition of Business transaction:
All those activities which includes profit motives (objectives ) is called a business transaction. there are two types of transactions. the one is cash base transaction while the other one is credit base transaction.
cash base transactions includes only a document of sales receipt and credit base transaction includes 7 different documents
Process of Business transactions
when the transaction is on credit base.
this includes 7 documents that is Quotation purchase order Job order Invoice Delivery Note Receipt voucher Payments voucher.
Each transactions includes 3 companies, 1 customer 2 supplier,
3 Home company (those company in which you are sitting with any designation).
Process between customer and Home company
our customer will make an inquiry to us means home company. inquiry have no format, it can be a telephonic, email, fax .
our company ( Home company ) will send him Quotation.
on accepting of Quotation, our customer will make a purchase order to us.
we will start a job order that will continue till to the end of the transaction.
our company will send him Invoice as a request of payments.
with product delivery, we will send him a delivery note.
as and when customer company make us payment. with payment the will send us payment voucher, in response we will send him Receipt voucher.
Process between Home company and supplier
our company (Home company) will make inquiry to supplier company.
they will send us quotation.
if our company accept the quotation, we will send him purchase order.
supplier company will send us invoice and delivery note with products.
we will make a payment voucher with the payments. they will send us receipt voucher.
this process of transactions is according to international standard and GAAPs roles .
these documents are the base of any organization.
in case court. your company will fight in a court on the basis of this documents.