A cash receipt is a valid token of payment for a business. Check out the meaning, types of notes, and how to make cash notes below!
Sales notes are certainly not a foreign term for those in business or who often carry out buying and selling activities. This sheet of paper is generally there every time you complete a transaction. It contains various information related to buying and selling, starting from the item’s name, the amount, to the price. One type of note that is known in the market is a cash note.
Types of Notes to Know
Before discussing cash notes, it’s a good idea to know the types of sales notes in advance. The seller makes a sales note to the buyer as proof of the transaction. For one transaction, usually, two notes will be made—one note for the buyer and another for the seller.
The sales receipt itself does not always indicate that the transaction has been paid in cash. Transactions with down payments or installments also need to have a sales note made. To understand the difference between each sales note or proof of commerce, consider the following types!
1. Credit Note
A credit note or credit note is a document made as proof of a transaction to show a reduction in accounts receivable. This reduction can occur due to a decrease in the price of the goods purchased or a defect or problem that causes the goods to be returned wholly or partially.
The seller issues a credit note after receiving a debit note from the buyer. This note is made with the approval and agreement of both parties before the purchase process is carried out. That way, there will be no misunderstanding.
2. Debit Note
As mentioned in the previous point, the seller can only issue a credit note after the buyer submits a debit note. The buyer makes the debit note itself as evidence of a reduction in accounts payable due to the goods being returned or returned. So when the buyer obtains goods with a debit system, this debit note will reduce the value of the debt that it must pay.
Both credit notes and debit notes must be made in at least two copies. The original note sheet is sent to the intended party, while the copy is kept by the party who made the note as an archive or proof of recording.
3. Cash Note
Unlike credit and debit notes related to accounts payable between the two parties, cash notes are proof of transactions issued by the seller after the buyer has paid for the goods purchased.
A seller usually issues cash notes to buyers who make direct purchases. Because the payment process does not need to wait for maturity or be paid in full, the proof of payment is called a cash note (because it is used for cash/cash payments).
Like other types of notes, cash notes must also be made using at least two copies. The original note is given to the buyer while keeping a copy for records or archives. There is some information that’s must be included in the issued cash note, namely:
- Time of issuance of the note, including date, day, month, and year.
- Name of the shop/business owner that sells the goods.
- Types of products sold along with the amount and price paid by the buyer
- Signature or stamp to prove that the note is a valid proof of payment.
Note FunctionThe notes themselves are made for several purposes. Apart from being proof of payment, the existence of a memorandum allows the company to know the data:
- Number of products sold.
- Total payment to be paid/received
- Being proof of a valid transaction in buying and selling activities. This is important to avoid misunderstandings in the future.
- Become a source of company bookkeeping information. The existence of a memorandum allows you to track all selling and buying activities to facilitate the process of calculating company finances for a certain period.
For companies, a memorandum can make it easier to estimate the number of goods sold for one day or one month.
How to Make a Cash NoteCash notes are available in printed form that notes can purchase at stationery or printing supply stores. This note is ready, so you need to fill it in according to the transaction made. You can also order notes to the printer by adding your business logo. These notes are valid as a sign of payment if accompanied by a stamp or signature of ratification.
If you want to make your cash notes, you can use Microsoft Excel on your computer. The trick is:
- Enter product code. You can fill in the product code directly without having to use Excel formulas. Adjust with the code that has been made previously.
- Fill the name of the item and the amount in the column. In the product/item name field, enter the name manually. If you want it easier, use this VLOOKUP formula: =IFERROR(VLOOKUP(C10,’DATA GOODS’!$3:$D$100,2,FALSE),””). Next, enter the number of items that have been sold in the number of items column.
- Create a unit price per product. To make it easier, use the following Excel formula: =IFERROR(VLOOKUP(C10,’DATA ITEM’!$B$3:$D$100,3,FALSE””).
- Enter total price. Add up the items that their unit prices have sold to get the total price. Use the formula =SUM(G10:G16) to make it easier for you to calculate.
- Enter the discount value (if any). If the product you are selling comes with a discount, use this formula to calculate it =IF(G17>=10000000,G17*20%,IF(G17>=1000000,G17*10%,0)).
- Subtract the total price with a discount. This will be the total value the buyer has to pay you. Use the formula =G17-G18.
Because the note is an essential requirement in the transaction, fortunately, more and more apps and services can make it easier for you to keep track of everything. iREAP POS is the answer for those of you who want the ease of business operations for retailers.
Designed by a team of more than 20 years of experience, this software is straightforward to use by anyone. Increase your company’s performance, productivity, and profitability with simpler cash receipts via iREAP POS.