CHAPTER 6

Receiving and checking

Contents
 Control over receipts
 Remittance advices
 Receipts given to customers
 Ways in which customers pay
 Cash: physical security considerations
 Cheques
 Receipt of cheque payments
 Receipt of card payments
 EFTPOS
 Other receipts
Control over receipts
 Ensure a good cash flow
 Banking (performed promptly and correctly)
 Security (avoiding loss or theft)
 Documentation (remittance advice)
Remittance advices
 Trade customers
usually send a
remittance advice with
their payment
 A remittance advice
shows which invoices
a payment covers
Receipts given to customers
 Till receipts  Cash Register
 Issuedby a cash operation
registers or 'tills‘  Store price info on
all stocks
 Written receipts  Record the value of
 Ortyped may be the sale of each
used if no cash item and total
register is used  Calculate the
required change to
customer
 Issue a till receipt
showing the entire
transaction
Evidence of payment other
than in cash
Receipt from customers
 Main types  Other types
 Cash  Standing order
 Cheque  Direct debit
 Credit or debit card  Mail transfer and
telegraphic
transfer
 Automated credit
services
Cash: physical security

Problem How to deal

 Forgery Ø Careful
 Theft examination
Ø Cash register
security, Safes
Ø Protective glass
('bandit screen')
Ø Frequent banking
Ø Never be sent by
Cheques

Definition New related words

 A cheque is 'an  Dishonored
unconditional order in  Cheque guarantee
writing addressed by cards
a person to a bank,
signed by the person
giving it, requiring the
bank to pay on
demand a sum
certain in money to or
to the order of a
specified person or
Cheque: procedures
1. Ensure details are correct (date, payee,
amount)
2. Signature: on the cheque vs. guarantee
card
3. Check the details on the cheque
guarantee card.
 'Expires end' date
 Amount of the guarantee
 Name agrees with that on the cheque
 Other details
Cheques: physical security
 Customers are asked to keep cheque
books and cards separate
 The number of cheques in a book is
kept to a minimum.
Plastic card
 Most retail
outlets which
accept PLASTIC
cards now use
an electronic
system known
in the UK as
EFTPOS
(Electronic
Funds Transfer
at Point of
Sale).
 CREDIT vs.
DEBIT cards
Credit cards
 Credit card payment involves 3
transactions

 Debit card vs. Credit card

EFTPOS
 Electronic Funds Transfer at Point of Sale:
makes possible the automatic transfer
of funds from a customer's bank
account to a retail organization at the
point in time when the customer
purchases goods (or services) from it.
 The EFTPOS terminal
Other receipts
Standing orders and direct
Banker’s draft
debits
 Method of  Regular payments
payment available  Standing order can
from banks for a only be changed
fee by the payer
 Direct debit can be
 When a customer
changed by the
needs a guarantee
receiver at will
that the payment
cannot be
dishonoured
Discussion
Business: electricity company
 'I am a domestic customer, and receive a bill from you
each quarter. I want to continue to pay quarterly, but I
don't want to go the trouble of writing out a cheque or
making a special trip (for example to a bank or your
office) to pay the bill. However, I do need to know how
much the bill is going to be before I am due to pay it.
What method of payment would you suggest?‘
 'You can pay by quarterly direct debit. You need to
complete a direct debit mandate form which
authorises us to debit amounts from your bank
account. We will send you a bill in the usual way each
quarter, and the amount due will be debited from your
account 14 days after the date of the bill, so you'll
know how much is to be debited well in advance. If an
error is made, either the bank or ourselves must put it
right.'
Business: mail order company
 'I want to place an order with you. I don't

have a bank account, building society

account or a credit card, so I suppose that
I'll need to send you the amount due by
cash through the post. Is that OK?‘
 'We do not advise you to send cash

through the post, as we cannot accept

responsibility if it is lost. We suggest that
you pay by postal order, obtained
from your post office. The post office
will charge a fee for this service.'
Business: DIY retailer
 'I want to call in to your store to buy something costing
$34 for a friend. I understand that you accept cheques
supported by a cheque guarantee card. My friend has
made out and signed the cheque and given me her
cheque guarantee card. I'd like to bring the cheque and
card in when I collect the goods.‘
 'In order to pay by a cheque supported by a banker's
card, it is necessary for the person whose
signature appears on the card to sign and date the
cheque in the presence of the payee – in other words,
in our store. This rule is a standard rule of all of the
banks. Please therefore ask your friend to call in to
make the payment herself, unless you wish to pay by
some other means, such as cash.’
Quiz
 What is the function of a remittance advice?
 Shows which invoices a payment covers
 Should cash be sent through the post in 'an
emergency'?
 No. Never!
 Is it safe to send a cheque through the post?
 Yes.
A cheque can be 'stopped' if it goes astray,
and 'traced' if deposited by an unauthorised
person.
 A banker's draft cannot be dishonoured. True
or false?