A Purchase Order book is critical to any business as it is normally the initiation of a financial transaction. Accuracy is very important and these order books ensure that controls are in place to ensure that the product/service ordered matches the product/service supplied It also serves as a protective legal document for the buyer and seller as well as being important for tax purposes.
Unless part of an official contract, a quotation is not legally binding, however, when a customer accepts the quotation they are committing to the sale at the price which is reflected on the quotation. Tip. Ensure your customer signs acceptance of your quotation.
Invoices that correctly itemises each transaction between the buyer and seller in the business is critical. As part of the South African Consumer Protection Act, one of the key elements on an invoice, which is often forgotten, for example, is the date as this sets out the period of guarantee.