FINANCIAL SOURCE DOCUMENTS
Whenever a financial transaction takes place in a business organisation, a document is
prepared to record details of the transaction. These details then become the source of
primary entry in accounting records. These financial source documents form the basis for
most entries made to the accounting system. With the introduction of the Goods and
Services Tax (GST), the source documents must be designed to include all information
required under GST legislation so GST collected or outlaid may be accurately recorded. A
tax on private consumption, not a business tax, is designed so the end consumer ultimately
pays the tax which the business collects.
TYPES OF BUSINESS DOCUMENTS
Below is a set of business documents typically used in the accounting section of a business.
Not all of these originate an entry in the bookkeeping system; however, they all have a
specific purpose in the financial activities of the business in that they provide tangible proof
of transactions, whether those transactions are between departments (internal) or with
external parties.
Business
document
Financial source
document
Purchase
requisition
Purchase order
Tax invoice
No
Internal document requesting purchase of goods
No
Yes
Delivery docket
No
Adjustment note
(credit advice)
Yes
Statement of
account
No
Remittance advice
No
Bank deposit
slip/book
Cheque form/butt
No
Request to supplier of goods on credit
Record of the credit sale/purchase. It is a tax
document because it records the GST collected on
sales/GST outlaid on purchases.
Document that accompanies goods when dispatched
and that provides proof of delivery
Sent by a suppliers to a customer—a record of the
adjustment in price when goods that have been
supplied on credit are returned. It records the
reduction in the amount of GST collected on goods
sold
Sent by the supplier to a customer—it is a summary
of all transactions for the month and the balance
owing at the end of the month
Advice that is prepared and forwarded with a
cheque, showing the details of payment
A record of the details of daily banking
Receipt
Cash register
summary
Cash register
receipt
Cash sales docket
Credit card sales
voucher
Yes, cheque
butt
Yes
Yes
No
Yes, if not cash
register receipt
issued
No
Purpose
A record of payment details
Acknowledgement of payment received
Internal cash register record of the day’s takings
from all sources. It includes the GST collected on
sales, cash/cheques, EFTPOS and credit card sales
The tear-off receipt from the cash register
Receipt for a cash sale
Record of credit card purchase by a customer
Business
document
Financial source
document
Credit card credit
voucher
Credit card
merchant
summary
EFTPOS credit
receipt
No
No
No
Purpose
Record of a credit card credit allowance to a
customer for returns or overcharging
Summary that is attached to daily credit card sales
and returns, and banked with the daily deposit
A receipt generated at the point of sale and signed
by the customer
FLOW OF SOURCE DOCUMENTS
PURCHASING
GOODS/SERVICES ON CREDIT
SELLING GOODS/SERVICES ON
CREDIT

Purchase requisition

Customer’s purchase order
received

Purchase order forwarded to
supplier

Goods/services delivery docket and
tax invoice issued to customer

Goods/services delivery docket
and tax invoice received from
supplier

Faulty/damaged goods returned by
customer

Faulty/damaged goods returned to
supplier

Adjustment note issued to customer

Supplier’s adjustment note
received

Statement issued to customer

Supplier’s statement received

Customer’s remittance advice and
cheque received

Remittance advice and cheque
sent to supplier

Receipt issued to customer

Supplier’s receipt received