For each of the following documents, describe its purpose, the functional area preparing it, and the key data included: sales order, bill of lading, credit memo

Answer 1

A sales order is used to collect information needed to initiate the sales process. It can be a copy of the customer's purchase order prepared by the customer or a document prepared by a member of the sales staff in response to mail, phone or personal contact with the customer. It contains information about the customer, the type and quantity of merchandise being requested, price information, shipping information, etc.

The bill of lading is prepared by the shipping clerk. It is a formal contract between the seller and the carrier who will transport the goods to the customer. It contains information about the carrier, the customer, descriptions of the package(s) being shipped, declared value of the goods, and information on freight charges, including how much and who will pay.

A credit memo is a document authorizing issuance of credit to a customer for returned goods. It is prepared in the sales department after receipt of a return slip from receiving. It shows the customer's name, reason for the return, a list of items and prices, and the total amount of credit. Many credit memos require additional authorization.