How Buying And Selling Of Goods Work In A Small Scale Company
As said by the famous Greek philosopher Plato, “Necessity is the Mother of all Invention”. Every person or company play a dual role in the market as the buyer and the seller depending on the situation. In a small or medium scale business firm the exchange of goods and services is inevitable. The habitual buying and selling of materials have become an essential part of the existence as well as the development of a company. This buying and selling system involves a multi stepped process of which a few basic steps involved would be discussed here.
Order The Goods
First, the organization in need of a product will inquire the related companies about the availability of the required goods in those companies. If their availability is confirmed the firm will place a purchase order to the selected companies. The follow up action taken by those companies will be the sending of quotation which indicates the amount of money that they will charge for their goods if the firm confirms trade with them.
Finish All Formalities
On receiving quotations from different organizations, the small or medium business firm will choose the company that it wants to purchase the materials from and will send confirmation after which the seller will send a pro forma to the buyer in which the intricate details about the price of the goods are displayed.
Receive Your Goods
After the payment of cash and receiving the products, the buyer will be given the invoice which is basically the bill. Now, the company that purchased the goods will already have a certain amount of stock of the same items which is recorded and kept up to date.
Record The Transaction
On receiving the invoice, the buyer will make a purchase entry which will update the inventory that actually contains the details regarding the business dealings of the organization. Hisabing makes the documentation, recording and tracking of this exchange easier apart from the other features that it exhibits.