Understanding Source Documents
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ScribdTranslationsUnderstanding Source Documents
Translated by
ScribdTranslationsSOURCE DOCUMENT
1. The source document is the original document or written text duly
authorized that an entity issues or receives to capture, justify,
control and verify with clear evidence that a transaction or
internal transformation was really carried out, providing the data
necessary for their registration in the financial information system.
It is the own or foreign supporting document that gives rise to an accounting entry.
Contains the necessary information for the accounting record of a
operation, and has the function of reasonably verifying the
reality of said operation. These documents are divided into:
a) Supporting documents that are all the provisions and
legal documents that determine the obligations and rights of the
dependency or entity to demonstrate that it has complied with the
legal and regulatory frameworks applicable.
b) Supporting documents are the original documents
that generate and support the accounting records of the dependency or
entity.
3. The preparation of the Source Document can be done by oneself (that is, by the
company that owns it) or external (from a client or supplier).
For example, it could be an invoice that a supplier delivered to whom
If merchandise was purchased or an invoice was issued that indicates a sale.
With each source document that is issued or obtained, they will be
making the entries that configure the company's accounting.
Others can be a canceled check, a credit note for a
return customer or the cash register tape.
4. Own Definition:
A source document is a receipt with which the entity
you can carry the order of what you are acquiring or about to acquire,
with each document an accounting record will be made, which will serve to
justifying each transaction made or to be made. It is necessary to count
with all the operation data to place it in the system of
financial information.
Importance of source documents
The acquisition and preservation of source documents is necessary and
indispensable because:
The source documents (or their copies or electronic equivalents) form
part of the first phase of the accounting process called collection of
data.
They allow for the control of the operations carried out by the entity and the
verification of accounting entries.
Independent auditors and internal auditing bodies
(internal auditors) require them to do their job.
They are required by legal provisions (especially of a fiscal nature and
commercial). They specify the legal relationship between the parties that
intervening in a certain operation, that is, their rights and
obligations.
It can be useful as a piece of evidence in cases of dispute for
demonstrate the execution of commercial acts.
Functions of source documents
Accounting function. The vouchers are the fundamental element for
to account for the operations. All economic operations that they carry out
the entities must be registered in the accounting books, but to their
to ensure that each of these records is justifiable they must
supporting with the relevant documents for each of them.
Control function. The receipt is an element for posterior control.
from the recordings made. It allows auditors to determine whether the
accounting records are duly supported by documents that
they end the current formalities.
Due to this need to justify, control, and verify operations
registered, it is customary to attach to each accounting entry the documents
corresponding sources, except for those that do not have a
source document such as in the case of correction entries, adjustments and
closure.
Legal function. Receipts have probative value in trials if
they meet the legal requirements.
Tax function. The receipts serve the taxpayer to prove the
veracity of their tax statements and allow authorities
tax authorities control the accuracy of the taxable amounts for the subjects
tax liabilities.
Form of the source documents
The source documents are prepared in original and with as many copies as
they demand the needs of the entity. They must be prepared in an orderly manner and
summarized, clearly expressing the transactions that take place daily
they are carried out in an entity.
Most of the source documents have been written on paper, but
there is a growing trend to support certain operations in media
magnetic or digital.
Requirements of source documents
The receipts are formal documents and in their preparation they must
to respect certain rules imposed by the law and by practices
Commercials. They must be prepared in printed forms especially.
prepared.
All source documents must contain the following information
general
Name or corporate name of the issuing entity.
Name, number (folio), and date of the receipt.
Description of the document content.
Signatures or some way to link those responsible for preparing,
review, approve and account for the vouchers.
Format
The source document can be created on paper or in electronic format.
Indeed, the systems currently used for accounting
of the companies allow scanning the documents received on paper and
integrate them as an image into the company's general information.
But there are also cases where they are not included as an image, but rather the
the program has a forms feature in which the
data from the source documents and are generated as receipts
electronic, with the same value as the original.
Company. In addition to including the requirements of date, purpose, and value, it is
desirable that the source documents include the name and address of
the parties that participated in the transaction.
SOURCE DOCUMENT
Purchase of Desk and Sale of Chairs
corresponds to the source document of
Invoice.
INVOICE: It is a tax document of purchase and sale that records the
mandatory commercial transaction accepted by law. This receipt
has to prove the sale of goods or other affects, because with it
the operation is concluded.
The invoice aims to certify the transfer of goods, the delivery
in use or the provision of services when the operation takes place with
subjects of the General Sales Tax who have the right to credit
fiscal. Likewise, when the buyer or user requests it in order to support
expenses and costs for tax purposes and in the case of operations of
export
Elements that Comprise It
Date of the operation
Amount of the operation
Seller identification data
Buyer identification data
Description of the goods (model, size, brand, etc.).
Payment date
The conditions for the claim or return
Main characteristics
They arise from the buying and selling of goods
They express the agreement of both the supplier and the client
Rent payment corresponds to the document
source of Lease Receipt.
RECEIPTS: The receipt is a document through which a person certifies
to have received from another a certain sum of money in cash or in
species and serves as proof of payment.
LEASE RECEIPTS: It is a contract by which the
the lessor agrees to grant the temporary use or enjoyment of an asset to
tenant, whether a natural or legal person, the latter committing to pay
a periodic rent that covers the original value of the asset, plus the burden
financial, and the additional expenses contemplated by the contract.
it is one of the ways to acquire goods, generally fixed assets, that one
regulated by the General Law of Organizations and Activities
Credit Auxiliaries, considering that it involves operations
[Link] freedom to conclude and contract, and to give it content, is
very wide; there is only a triple limit: to respect the Law, morality, and the
public order. Within that limit, the person has autonomy to be able to
regular his interests and relationships.
This law defines the financial lease contract as one that ...
the financial leasing company is obliged to acquire certain goods and to
grant its use or temporary enjoyment, for a forced term, to a natural person or
moral, obliging it to pay as consideration that will be settled in
partial payments, as agreed, a determined sum of money or
determinable, covering the acquisition value of the assets, the burdens
financial and other accessories.
This type of contract can be made in writing or verbally.
although the first option is advisable in order to exercise the rights and
obligations provided by Spanish legislation, especially the various
urban leasing laws that regulate these contracts and that
they differentiate between housing and premises for uses other than housing.
Elements that Make It Up:
Lease agreement
Landlord's declaration
Tenant's Statement
Declaration of both parties
Clauses
Witness signatures
Payment of Bank Commissions
corresponds to the source document of
Check.
CHECK
Order or payment mandate incorporated into a credit title that allows for
to dispose, in favor of a specific person or of the simple
holder of the title, of funds they have available in a bank.
Check requirements:
The denomination of the check is inserted in the text of the title itself.
The pure and simple mandate to pay a specified sum of money.
The name of the one who must pay (the one referred to as the drawee), which
it must be by force
a bank.
The place of payment
The date
The place of issuance of the check
The check may be issued to be paid to a specific person, with
or without a clause to order or 'not to order'; it can also be issued for
to be paid to the bearer.
The bearer check is transferred by its delivery or tradition; the
check extended in favor of a specific person, with or without the clause 'to
the order.
The endorsement must be total, pure, and simple; it must also be written on the
check and will be signed by the endorser. The endorsement transfers all the
rights resulting from the check.
Deposit for account opening
banking corresponds to the document
source of Bank Deposit Slip.
A bank deposit slip is a printed form that accompanies
bank deposits. The depositor fills out the bank deposit slip
to indicate what type of funds are deposited and in which accounts they should be
deposited.
Capital increase corresponds to the
source document of Cash Receipt
The cash receipt is an accounting document that contains the
cash income collected by the company. The original is given to the
the client and the copies are filed one for the consecutive file and another for
attach to the daily accounting voucher.
The cash receipt is recorded with a debit to the cash account and the credit
according to its content or concept of the payment received. Generally it is
support for the partial or total payments of a company's customers
for different concepts of cash sales since for them the support
it is the invoice.