Source Documents

Cavite State University CEMDS
Basic Financial Accounting and Reporting
SOURCE
DOCUMENTS
Prepared by
Kimberly Rojas
BSACC 1-4
Sales Invoice
Description:
A sales invoice is a document issued by a seller to a buyer. It provides a detailed summary of a
sales transaction. It outlines the products or services sold, their quantities, prices, and the total
amount due.
Purpose in Accounting
The details in a sales invoice are essential for accurate record-keeping and financial reporting.
Also, sales invoices are important for revenue recognition, helping businesses recognize and
report income in the appropriate accounting period. They contribute to the calculation of
profitability by detailing the revenue generated from sales. Additionally, sales invoices play an
important role in accounts receivable management, which is connected to effective cash flow
management. Lastly, sales invoices serve as supporting documents during audits and tax
assessments to ensure compliance with regulatory requirements.
Businesses that use sales invoice

Retail Stores Professional Services
Service Providers Subscription Services
Manufacturers Healthcare Providers
Wholesalers and Distributors Real Estate Agencies
E-commerce Businesses Construction and Contracting
Charge Invoice
Description:
A charge invoice is similar to a sales invoice. The difference is that a charge invoice is specifically
used for sales of goods that are made on credit or on account. This indicates that the sale is not
paid immediately but rather will be paid at a future date.
Similar to a sales invoice, the purpose of a charge invoice in accounting is also versatile. It aids in
revenue recognition, accounts receivable management, financial reporting, tax compliance,
expense tracking, documentation for audits, dispute resolution, and cash flow management.
Having well-documented and accurate charge invoices is essential for maintaining financial
health and compliance within a business.
Businesses that use charge invoice

Official Receipt
Description:
An official receipt is a formal document issued by a seller or service provider to acknowledge
the payment received for goods or services. It includes important details about the sale and
serves as proof of transaction.
Businesses keep copies of official receipts for internal accounting. Official receipts specify the
payment method used for the transaction (cash, credit card, check, etc.) that results in an
accurate accounting of different types of payment. A receipt also notes any sale discounts or
allowances that are used for accounting and financial reporting. Furthermore, receipts are
important proof of sales deals when dealing with a tax audit from the Internal Revenue Service.
Businesses that use official receipt

Retail Stores Hotels and Accommodations
Service Providers Educational Institutions
Restaurant and Cafes Healthcare Providers
Wholesalers and Distributors Fitness Centers and Gyms
E-commerce Businesses Event Organizers
Delivery Receipt
Description:
A delivery receipt is a document that acknowledges the successful delivery of goods or services.
It serves as proof that a shipment or delivery has been received by the intended recipient. They
play a key role in maintaining transparency and accountability throughout the delivery process.
A delivery receipt triggers the recognition of revenue in the accounting records of those
businesses that use the accrual method. Also, a delivery receipt provides information on the
quantity and type of goods delivered, which is essential for updating inventory records and
maintaining accurate counts of available stock. Furthermore, delivery receipts contribute to the
calculation of the cost of goods sold, which helps determine the direct costs associated with the
production or purchase of goods that were sold during a specific period.
Businesses that use delivery receipt

Courier and Delivery Services Food and Beverage Distributors
E-commerce and Online Retailers Medical Equipment Suppliers
Logistics and Freight Companies Construction and Building Material Suppliers
Wholesalers and Distributors Printers and Publishers
Furniture and Appliance Retailers Pharmaceutical Distributors
Warranty Receipt
Description:
A warranty receipt is a document provided to a customer by a seller to confirm the purchase of a
product and to indicate the terms and conditions of the product's warranty. It plays a critical role
in establishing a clear understanding between the buyer and the seller regarding the warranty
terms associated with a purchased product. They contribute to customer satisfaction and help
businesses manage warranty claims effectively.
Warranty receipts allow businesses to recognize accruals and liabilities for potential future
warranty claims. Accounting for warranty costs is important for calculating the accurate cost of
goods sold (COGS) and understanding the total cost associated with the sale of a product.
Additionally, by analyzing warranty receipts and associated claims, businesses can better
forecast future warranty expenses. This information is valuable for budgeting and financial
planning, helping businesses allocate resources appropriately.
Businesses that use warranty receipt
Consumer Electronics Retailers Jewelry Stores:
Appliance Stores Sports Equipment Retailers
Automobile Dealerships Toy Stores
Home Improvement Stores Outdoor Equipment Retailers
Furniture Retailers Computer and IT Equipment Sellers
Acknowledgement Receipt
Description:
An acknowledgment receipt is a written or electronic document that serves as confirmation that
a specific transaction, delivery, or payment has taken place. It is typically issued by the recipient
of goods, services, or funds to acknowledge the receipt of something.
Acknowledgement receipts contribute to systematic and organized record-keeping. They
provide a documented history of transactions, enabling businesses to track and manage their
financial activities effectively. Information from acknowledgment receipts contributes to
financial reporting, including income statements and balance sheets. It helps businesses provide
a clear and accurate representation of their financial position.
Businesses that use acknowledgement receipt

Debit Card Receipt
Description:
A debit card receipt is a document provided to a cardholder as a record of a financial transaction
conducted using a debit card. When a debit card is used to make a purchase or withdraw funds
from an Automated Teller Machine (ATM), a receipt is generated to provide details about the
transaction.
Accountants use debit card receipts to verify and reconcile transactions against bank statements.
This process ensures that the recorded transactions match the actual transactions reported by
the bank. Also, debit card receipts play a crucial role in monitoring actual expenditures against
budgeted amounts, facilitating effective budget management.
Businesses that use debit card receipt

Retail Stores Travel Agencies
Auto Repair Shops Hotels and Accommodations
Supermarkets and Convenience Stores Healthcare Providers
E-commerce Businesses Technology and Electronics Stores
Discount Voucher/Receipt
Description:
A discount voucher, also known as a discount coupon or discount code, is a promotional tool
that provides customers with a specific reduction in the purchase price of a product or service.
These vouchers are often used by businesses as part of marketing and sales strategies to attract
customers, encourage purchases, and build brand loyalty.
The voucher represents a reduction in the selling price, and this discount amount represents an
expense or a reduction in the overall income generated from the sale. Accounting systems need
to track the redemptions of discount vouchers accurately. This involves updating the status of
the voucher from a liability to an expense or cost of goods sold (COGS) when the associated sale
is completed.
Businesses that use discount voucher/ receipt
Retail clothing shops Travel Agencies
Antique shops Hotels and Accommodations
Specialty boutiques Coffee shops
Grocery stores Bakeries
Gas stations Technology and Electronics Stores
Petty Cash Voucher
Description:
A petty cash voucher is a document used to record small, day-to-day expenses paid from a petty
cash fund. Petty cash is a small amount of cash that a business sets aside to cover minor and
miscellaneous expenses that are impractical to handle through the regular check-writing or
electronic payment processes.
Petty cash vouchers help in tracking and recording all expenditures made from the petty cash
fund. This ensures that every expense is properly accounted for, even those that involve cash
transactions. Information from petty cash vouchers contributes to financial reporting by
providing a detailed breakdown of small cash expenditures. This contributes to accurate
financial statements and helps in understanding where funds are being utilized.
Businesses that use petty cash voucher
Restaurants and Cafes Travel Agencies
Educational Institutions Small Businesses and Startups
Healthcare Providers Auto Repair Shops
Nonprofit Organizations Salons and Spas
Hotels and Accommodations Food and Beverage Businesses
Cash Withdrawal Receipt
Description:
A cash withdrawal ATM receipt is a document provided to an individual when they withdraw
cash from an Automated Teller Machine (ATM).
The information on the ATM receipt is used to update the accounting records, specifically the
cash account. The cash account reflects changes in the amount of cash held by the account
holder, and the ATM receipt provides evidence of these changes. Additionally, the ATM receipt
serves as a supporting document during the reconciliation process. Businesses and individuals
reconcile their bank statements regularly to ensure that all transactions, including cash
withdrawals, are accurately reflected.
Businesses that use cash withdrawal receipt

Retail Businesses Small Businesses and Startups
Restaurants and Cafes Automotive Repair Shopsroviders
Hotels and Hospitality Convenience Stores:
Gas Stations Event Management Companies
Local Banks and Credit Unions Catering Services
Order Slip
Description:
An order slip, also known as an order form or purchase order, is a document used to request
goods or services from a supplier or vendor. It serves as an official record of a business
transaction and includes essential details related to the items or services being ordered.
The order slip becomes a reference document for matching with invoices once the goods or
services are received. This is an important step in the accounts payable process, ensuring that
the quantities and prices billed by the supplier align with the originally agreed-upon terms on
the order slip. Also, the order slip indicates the total cost of the items or services requested,
allowing organizations to assess and control their spending within budgetary constraints.
Businesses that use order slip

Retail Businesses Online Retailers
Restaurants and Cafes Medical and Healthcare Facilities
Manufacturing Companies Farmers and Agriculture Businesses
Construction Companies Print Shops
Automotive Repair Shops Food and Beverage Distributors
Pay Slip
Description:
A payslip, also known as a pay stub, paycheck stub, or salary slip, is a document provided to
employees by their employers that outlines the details of their earnings and deductions for a
specific pay period. It serves as a record of the employee's compensation and provides
transparency about the breakdown of their salary.
Payslips are a fundamental component of payroll accounting. They contribute to the accurate
recording of salary and wage expenses, tax withholdings, and other deductions. This
information is critical for preparing financial statements, budgeting, and financial analysis.
Employee compensation is a significant expense for many businesses, and payslip data is
essential for accurately reporting these expenses in financial statements.
Businesses that use pay slip
Retail Businesses Legal Firms
Construction Companies Consulting Firms
Automotive Repair Shops Transportation and Logistics Companies
Cash Deposit Slip
Description:
A cash deposit slip is a form or document provided by banks or financial institutions that allows
individuals and businesses to deposit cash into their bank accounts. It serves as a record of the
transaction and provides key information needed to process the deposit.
In accounting, bank reconciliation involves comparing the transactions recorded by the business
with those reported by the bank. Cash deposit slips play a role in this process by providing a
record of cash inflows that can be matched with corresponding entries in the bank statement.
Also, the data from cash deposit slips is valuable for budgeting and managing cash flow. It helps
businesses track and analyze patterns of cash inflows, allowing for informed financial decision-
making.
Businesses that use cash deposit slip
Educational Institutions Transportation and Logistics Companies
Withdrawal Slip
Description:
A withdrawal slip, also known as a withdrawal form or bank withdrawal slip, is a document used
by individuals to request the withdrawal of funds from their bank accounts. It serves as a
communication tool between the account holder and the bank, ensuring that the withdrawal is
carried out accurately and securely.
The withdrawal slip provides a means of verifying that the correct amount of funds has been
withdrawn from their account. It acts as a receipt, confirming the details of the transaction and
providing evidence of the funds taken out of the bank. The data from withdrawal slips is
valuable for cash flow management. It helps businesses track and analyze patterns of cash
outflows, allowing for informed financial decision-making.
Businesses that use withdrawal slip
Time Card
Description:
A time card, also known as a timesheet or punch card, is a record-keeping tool used by
employers to track the working hours of employees. It serves as a document where employees
record the hours they spend on work-related activities during a specific period.
Time cards serve as a fundamental source of data for payroll processing. The recorded hours are
used to calculate the gross earnings of employees, which include regular pay and any additional
compensation for overtime or special assignments. Additionally, for businesses that track the
time spent on specific projects or tasks, time cards play a role in cost allocation. Employees may
use project or task codes to associate their hours with particular cost centers or client projects,
aiding in accurate cost accounting.
Businesses that use time card
Retail Businesses Hospitality Industry
Manufacturing Companies Call Centers
Water Bill
Description:
A water bill is a statement issued by a water utility or municipality to customers, typically on a
monthly or quarterly basis, detailing the amount of water consumed and the associated charges.
Water bills are important for both residential and commercial customers, providing information
about water usage, service fees, and any applicable taxes or surcharges.
When a business receives water services, the water bill represents a liability, as the business has
received a service for which payment is due. In accounting, this liability is recorded as part of
the accounts payable.The inclusion of water bills in the accounts payable contributes to accurate
financial reporting. The liabilities reflected in the accounts payable balance sheet account
provide a snapshot of the business's outstanding obligations, including amounts owed for water
services.
Businesses that use water bill
Manufacturing Companies Research Laboratories
Construction Companies Shopping Malls
Educational Institutions Agricultural Business
Electricity Bill
Description:
An electricity bill, often referred to as a utility bill or electric bill, is a statement provided by an
electric utility company to customers for the consumption of electrical energy. This bill outlines
the details of electricity usage, associated charges, and other relevant information.
The electricity bill represents an expense incurred by individuals or businesses for the
consumption of electricity. In accounting, the recognition of expenses aligns with the accrual
basis, where expenses are recorded when incurred, not necessarily when the payment is made.
Accounting for electricity bills is part of cost management strategies. Businesses can analyze
trends in electricity consumption and costs, identify opportunities for efficiency improvements,
and implement measures to control and reduce energy expenses.
Businesses that use electricity bill

Manufacturing Companies Research Laboratories
Construction Companies Shopping Malls
Educational Institutions Agricultural Business
Way Bill
Description:
A waybill, also known as a bill of lading or consignment note, is a document used in shipping
and transportation to detail the contents of a shipment, as well as the terms and conditions
under which the goods are being transported. The waybill serves as a receipt of goods and a
contract of carriage between the shipper and the carrier.
The waybill serves as a critical document for recognizing transportation expenses in accounting.
It provides details about the cost of transporting goods, including freight charges and any
additional fees, allowing businesses to accurately record these expenses. Additionally, in some
cases, transportation costs are considered part of the cost of goods sold (COGS) or are added to
the value of inventory. Waybill provides the needed information for including transportation
expenses in the overall cost of inventory, impacting inventory valuation methods.
Businesses that use way bill
Courier and Delivery Services Food and Beverage Distributors
E-commerce and Online Retailers Medical Equipment Suppliers
Logistics and Freight Companies Construction and Building Material Suppliers
Wholesalers and Distributors Printers and Publishers
Furniture and Appliance Retailers Pharmaceutical Distributors
Service Report
Description:
A service report is a document that provides detailed information about a service that has been
performed. It serves as a record of the service activities, documenting what was done, when it
was done, and any relevant observations or findings. Service reports are commonly used in
various industries, including maintenance, repair, consulting, and technical support.
Service reports serve as a basis for invoicing clients or customers. They provide a breakdown of
the services provided, associated costs, and any additional charges, ensuring that billing is
accurate and aligned with the services delivered. For businesses offering multiple services or
managing various projects, service reports assist in allocating costs to specific clients, projects,
or cost centers. This is essential for accurate cost accounting and determining the profitability of
each service.
Businesses that use service report
Field Service Companies Cleaning and Janitorial Services
Maintenance and Repair Services Landscaping and Lawn Care Services
IT Services and Support Facility Management Companies
Consulting Firms Healthcare Services
Security Services Telecommunications Services
Statement of Account
Description:
A statement of account is a financial document that provides a summary of transactions between
a business or individual and a particular customer or vendor over a specific period. This
statement typically includes details of purchases, payments, credits, and outstanding balances.
The purpose of a statement of account is to provide a clear and concise overview of the financial
relationship between the parties involved.
Functions as a record-keeping document for both the business and the customer. It provides a
historical account of transactions, which is valuable for auditing, financial analysis, and
reference purposes.
Businesses that use statement of account

Retail Businesses Telecommunications Companies
Wholesale Distributors Financial Institutions
Manufacturing Companies Credit Card Companies
Service Providers Insurance Companies
Utilities Companies Property Management Companies

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Cavite State University CEMDS

Basic Financial Accounting and Reporting

Businesses that use sales invoice

Businesses that use charge invoice

Businesses that use official receipt

Businesses that use delivery receipt

Businesses that use acknowledgement receipt

Businesses that use debit card receipt

Businesses that use cash withdrawal receipt

Businesses that use order slip

Businesses that use electricity bill

Businesses that use statement of account

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