HomeProductsAccountingGet to Know the Importance of a Cash Note

Get to Know the Importance of a Cash Note

When making a buying or selling transaction, the seller always provides a record of cash basis sales transactions to the buyer. This payment record is known as a cash note. Besides being a valid transaction record, a cash note can be a complementary document for the buyer when someday the purchased goods are damaged and want to ask for goods replacement.

If the business needs proof of this transaction at some moment, it needs to keep a cash note. This is a very important document that the company needs to keep. By using accounting software, you can make it easier to see all of your transactions. Check out this article to know the importance of a cash note in a transaction.

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Definition of Cash Note

cash note
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A cash note is a payment record or document that is provided by the seller to the buyer for the goods sales transaction on a cash basis. The seller provides this payment record to the buyer because the payment has been paid off. Of course, compiling a cash note should use a copy. At least this payment record is copied into two copies. The original is given to the buyer. Meanwhile, the buyer will keep the copy for transaction records.

Also read: 5 Main Benefits of ERP Software for Professional Services

Cash Note Functions

This payment record has various functions. Business companies use this payment record in compiling a financial statement. When compiling a financial statement, a cash note will be a medium for re-checking all the occurred transactions. This payment record is also a valid payment record for the buyer. With this payment record, the business companies can know various data such as the number of products that have been sold and the total payment to be paid.

Cash Note Components

In compiling this payment record, several components must be listed. What are the components? Here are the components that should be listed in this payment record:

  1. Business company name, often the business company name comes with the company address along with a contact number.
  2. Cash note number, where the company has determined this number.
  3. Transaction date.
  4. Goods types that have been purchased.
  5. Quantity of purchased goods.
  6. Goods price.
  7. Total price.

How to Compile a Cash Note?

In compiling this payment record, you can choose several available ways. If you want to be hassle-free, you can visit the nearest stationery store to buy a ready-to-use cash note. In addition, you can also create a custom cash note that comes with your company logo in the printing services store. But in today’s digital era, you can also create your own format using Microsoft Excel or using ERP software to automate compiling cash note. Check out the following steps in compiling this payment record format using Microsoft Excel:

Inputting the product code

Get to Know the Importance of a Cash Note
Sumber: Canva

The first step to compile this payment record format using Microsoft Excel is to input the product code. This product code contains the code number of the product. In inputting the code, you don’t need to use available formulas in Microsoft Excel. This code will help the seller in checking the products sold. Make sure to input the product code correctly.

Inputting product name and quantity

After inputting the product codes, you are required to input the product name. Not only the product name, but you should input the product quantity. It is important to input them into the available columns. This aims to make a cash note that can be arranged neatly.

Use the VLOOKUP formula

As we know, in Microsoft Excel, many formulas can be use to help someone compile a report on this application. The aim of these formulas is to make it easier for the user in compiling reports. You can also use the VLOOKUP formula in Microsoft Excel like =IFERROR(VLOOKUP(C10,’PRODUCT DATA’!$3:$D$100,2,FALSE),””). After that, you can enter the number of sold products in the items column.

Make unit price per product

When you want to create a unit price per product in a cash note, you can use the available formula in Microsoft Excel. This can make easier when making the unit price per product. Not only that, the use of formulas aim to minimize the errors. The formula that can be use is =IFERROR(VLOOKUP(C10,’PRODUCT DATA’!$B$3:$D$100,3,FALSE””).

Inputting total price

If you have created a unit price per product, you can sum the product items sold with the unit price. So you’ll get the total price. You can use the formula =SUM(G10:G16) to make it easier when calculating the total price. The SUM formula can prevent miscalculation. In addition, if the total price is discounted, you can use the formula =G17-(%Discount). With this formula, you will know the total price after being charged the discount.

Also read: Here are The 17 Best ERP Software in Singapore You Should Know in 2021

Conclusion

Hopefully, the information provided above makes you understand the importance of a cash note in a transaction. With this payment record, the seller will be able to re-check all occurred transactions when making a financial statement. For buyers, a cash note can be a valid payment record. Speaking about the components, there are several components in this payment record. The components are business company name, note number, to the total price.

HashMicro as the best ERP Software provider in Singapore provides convenience for your business company in gaining the efficiency of all operational aspects such as making a cash note and financial statement using the Accounting Software and gathering all the business company documents digitally using the Document Management Software. Nowadays, many business companies have trusted HashMicro to gain the efficiency of their operations. Contact us now to get the best deals and free demos!

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