Chapter 4: Process payments from customers Flashcards Preview

AAT (L2): FINAL Chapter Summary > Chapter 4: Process payments from customers > Flashcards

Flashcards in Chapter 4: Process payments from customers Deck (11)
Loading flashcards...
1

Who is remittance advice between

Customer sends to seller

2

How is payment received?

By cheque or BACS

3

What must be done when Remittance advice is received?

It must be checked carefuly against the sales documentation held by the seller
And the customer's account in the seller's sales ledger.

The Amount rec'd must be the correct amount..

4

What documentation must be checked when remittance advice is received?

Invoices
Credit Notes
Remittance Advice itself.

5

What must be chequed when a cheque is received?

The cheque must be checked to ensure that it is valid

6

What must be checked when a payment is made through the BACS?

The Bank Statement must be checked in due course to confirm that the payment has been received.

7

What can discrepancies relating to payments be caused by?

Underpayments
Overpayments
Settlement Discount

8

eg. Underpayment problem?

A disputed invoice may not have been included

9

eg. Overpayment problem?

A Credit note may have been ignored, or an invoice paid twice

10

eg. Settlement Discount problem?

Incorrect discount rate
Expired discount rate
No discount available

11

What must be done in all cases of discrepancies relating to payments?

The discrepancy must be communicated to the customer

So that an appropriate adjustment can be made.