Unit 2 Key Terms

Remittance advice 

• notification sent by a customer to a supplier informing them that their invoice has been paid.

• an instruction given by an account holder to the bank to allow another account holder (usually a business) to withdraw funds from that account.

• to reimburse staff for small purchases made for the business

• this is sent by the seller / supplier to a customer if, for example goods received by a customer have been damaged in transit, an error has been made on the invoice or the customer returns an item

Invoice

• an instruction given by an account holder to the bank to pay a specific amount to another account on a regular basis

• a document that a business issues to customers requesting payment for goods

• – this is issued by a  supplier to a customer, usually at the end of each month. This states all transactions over the last period 

• rules which provide a framework for employees to follow which are associated with the levels of responsibility employees have in the hierarchy.

Agenda

• form of promotion that is used when a business wants to make an announcement to the media 

• Document produced in advance of a meeting which lists items to be discussed

• these provide a summary of what is discussed and agreed in a meeting

• a legally binding document between a supplier and a customer/buyer. It lists the items ordered and the agreed purchase price. 

Press release 

• these provide a summary of what is discussed and agreed in a meeting

• Document produced in advance of a meeting which lists items to be discussed

• these provide a summary of what is discussed and agreed in a meeting

• form of promotion that is used when a business wants to make an announcement to the media 

Minutes

• these provide a summary of what is discussed and agreed in a meeting

• Document produced in advance of a meeting which lists items to be discussed

• form of promotion that is used when a business wants to make an announcement to the media 

• a document that a business issues to customers requesting payment for goods

Standing order 

• a document that a business issues to customers requesting payment for goods

• an instruction given by an account holder to the bank to allow another account holder (usually a business) to withdraw funds from that account.

• an instruction given by an account holder to the bank to pay a specific amount to another account on a regular basis

• to reimburse staff for small purchases made for the business

Purchase order 

• notification sent by a customer to a supplier informing them that their invoice has been paid.

• a document that a business issues to customers requesting payment for goods

• a legally binding document between a supplier and a customer/buyer. It lists the items ordered and the agreed purchase price. 

• this is sent by the seller / supplier to a customer if, for example goods received by a customer have been damaged in transit, an error has been made on the invoice or the customer returns an item

Favourable variance 

• where the actual figure is worse than the budgeted figure e.g if costs are lower than budgeted or revenue higher than budgeted

• the level of output at which total revenue is equal to total costs.

• rules which provide a framework for employees to follow which are associated with the levels of responsibility employees have in the hierarchy.

• where the actual figure is better than the budgeted figure e.g costs are lower than budgeted or revenue higher than budgeted.

Statement of Account 

• a document that a business issues to customers requesting payment for goods

• notification sent by a customer to a supplier informing them that their invoice has been paid.

• a legally binding document between a supplier and a customer/buyer. It lists the items ordered and the agreed purchase price. 

• – this is issued by a  supplier to a customer, usually at the end of each month. This states all transactions over the last period 

Adverse variance 

• where the actual figure is better than the budgeted figure e.g costs are lower than budgeted or revenue higher than budgeted.

• where the actual figure is worse than the budgeted figure e.g if costs are lower than budgeted or revenue higher than budgeted

• the level of output at which total revenue is equal to total costs.

• resources owned by a business e.g cash, vehicles, premises, machinery.