The coverage of sales accounting includes charging and collecting payments, sales statistics and information for reference at a future date. The following kinds of forms and documents are used in sales accounting.
(a) Challan: Challan is termed as a despatch advice of goods to the customers.
(b) Orders: An order is an agreement to buy by a prospective buyer. It acts as a directive to despatch the goods.
(c) Invoice: The invoice shows in detail the quantity, description and specification of the goods which are sold.
(d) Credit Note: when the buyer due to wrong delivery or defect in goods returns goods, a credit note is prepared to reduce the buyer’s responsibility.
(e) Sales journal: This is the principal book, which serves as a diary of the sales transactions.