Order placed
(over telephone, internet, or in writing)
Sales Order Formemplyee names, addresses, annual salaries or hourly rates, tax nad
Goods Dispatched Note (GDN)
Sales Invoice
Update Sales Daybook
Update General Ledger
Customer pays
All sales orders documented on sequentially numbered multi-part sales order form.
One copy stays in the sales department, one goes to the warehouse and one goes to the invoicing
department.
The goods are chosen using details on the customer’s sales order form.
The goods are packaged up for dispatch and a sequentially numbered multi-part goods dispatch note
(GDN) is raised.
One copy of the  GDN is sent with the goods, one copy stays in the warehouse, stapled to the
relevant sales order, and one copy is sent to the invoicing department.
A sequentially numbered multi-part invoice is raised based upon the details on the goods dispatch
note.
One copy stays in invoicing, stapled to the relevant GDN and sales order form, one copy goes to the
customer and one copy is sent to the sales daybook clerk.
The sales daybook clerk updates the sales daybook using the details on the sales invoice.
The copy of the invoice is filled numerically.
At the end of the day the total of the sales day book is transferred to the general ledger by the
general ledger accountant.
When the customer pays this is recorded in the general ledger.
The invoice is stamped as paid.

Purchase requisition Raised
Purchase Order Form
Goods Received Note (GRN)
Update Sales Daybook
Update General Ledger
Pay Supplier
Purchase requisitions are raised by the individual departments and a written copy sent to the
ordering department.
The ordering department places and order with the relevant supplier and records the details of the
order on a sequentially numbered, multi-part order form.
One copy stays in ordering department, one goes to the supplier and one to the warehouse.
When the goods arrive from the supplier a sequentially numbered, multi-part goods received note
(GRN) is raised.
One copy stays in the warehouse and is matched and stapled to the purchase order, one returns to
the ordering department to match to the copy of purchase order and one goes to the purchase daybook
clerk to update the records.
The details of the goods received note are entered into the purchase daybook and the GRNs are filed
in numerical order.
At the end of the day the total of purchase daybook is transferred to the general ledger.
Once the invoice is received it is matched to the details on the ledger and stapled to the GRN
copy.
The supplier is paid and the ledger is updated to reflect this.
The invoice is then stamped as paid.
Purchase Invoice

Employee details entered into system
Employee names, addresses, annual salaries or hourly rates, tax and banking details will be needed
every payroll run. These details are kept permanently on the system. This is known as sanding data.
Details of new employee are added and details of leavers are removed.
For hourly employees, the details of the hours worked are recorded on clock cards or time sheets
and these details are input into the system.
The pay rate for salaried employees is worked out by reference to their contract.
The wage of each employee along with relevant PAYE and national insurance contributions are
calculated by the system.
The PAYE and national insurance liabilities are automatically recorded in the ledgers.
Hours worked by each employee entered into system
Payroll calculated by computer
Employee paid
Using the figures calculated by the system the employees are paid by bank transfer (preferable),
cheque or cash.