Essential Guide to Business Documents and Financial Procedures

Merchant Account Keeping

Obligations for Keeping Records

Every merchant is obligated to maintain the following accounts and correspondence:

  • Journal
  • Ledger or accounts
  • Book of balances
  • Letter book

Record Retention Period

Merchants are required to keep these books until the completion of their business cycle and the liquidation of their business affairs.

Understanding Key Financial Documents

Bill of Exchange

A bill of exchange is an unconditional order to pay a specific sum of money at a predetermined time. It involves parties such as the drawer (issuer), drawee (payer), and payee (beneficiary). The bill can be transferred through endorsement.

Vale Vista (Sight Draft)

A vale vista is a document issued by a bank certifying that a certain amount of money has been received and is available to the recipient. Similar to a check, it offers the advantage of guaranteed funds.

Bill of Sale (Invoice)

A bill of sale is a document issued for the sale of goods or services subject to sales tax. It is provided to taxpayers affected by the Sales Tax and Services Law.

Power Bill Copies

A power bill has four copies:

  • Original: Customer
  • Duplicate: Internal Revenue Service (IRS) – Company
  • Triplicate: Tax Control – Customer
  • Quadruplicate: Assignable Executive Control – Customer or Company

Sales and Services Ticket

The minimum amount for issuing a sales ticket is $180. Sales below this amount require a daily ticket totaling the sales, which is recorded in the Purchase and Sales Book. At the end of the month, the total is reported on Form No. 29.

A sales ticket has two copies:

  • Original: Seller
  • Copy: Buyer

Fee Ticket

A fee ticket represents remuneration for independent workers without labor subordination or fixed schedules.

Promissory Note

A promissory note is a written, unconditional promise to pay a specific sum of money to a beneficiary. The subscriber is the creator and primarily responsible for payment.

Requirements for a Valid Promissory Note

A legally valid promissory note must include:

  • Designation of “promissory note”
  • Promise to pay a specified amount
  • Place of payment
  • Payee’s name
  • Date and place of signature
  • Issuer’s details
  • Due date (or indication of on-demand payment)
  • Payment details
  • Signer’s signature
  • Place of issuance
  • Specification of bearer or non-bearer status

Check

A check is a written order to pay a specific amount to a designated person or bearer. It is generally non-endorsable unless deposited into a checking account.

Debit Note

A debit note is issued after an invoice to increase the billed amount due to price increases, recovery of omitted amounts, interest charges, or penalties for late payment.

Invoice’s Fourth Copy

The fourth copy of an invoice, for executive control, can be held by either the company or the customer. It is often given to the customer upon cash payment.

Quotation

A quotation is a document used by the purchasing department in negotiations. It can also refer to social security contributions made by employees or employers.

Purchase Order

A purchase order is a formal document used by the purchasing department to order merchandise from a supplier. It should be clear and specific.

Waybill

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Required under Article No. 55 of Decree No. 825, are mandatory when issuing documents had chosen to defer the issuance of invoice and upon moving goods that are or no sale.

17 .- What is a check to the order?
This document contains the full name of the beneficiary, but this is expressly authorized to transfer, that is the clause to the order. It erases the clause or to bearer, so that its form of movement is transferring ownership by endorsement.

18 .- What are the requirements for issuing a ticket purchase?
Overall, the ballots should be issued as follows:
• In the case of sales of movable tangible property, the bill of sale shall be issued at the same time of real or symbolic delivery of the species.
• In the case of services, the ballots should be issued in payment of the service.

19 .- What taxes are reported on Form number 29?
Taxes that are declared in the Form No. 29 are the tax liabilities Ser., Which are those that tend to meet the tax liability Ser. paying taxes (start of activities, when you increase or decrease the capital of the company, changes in shareholders’ No

20 .- How shall the payments the company makes cash? Identify relevant legal characteristics and internal control. (hint: check nominative indicating the name and RUT of the person who gave him the check and invoice number with which it was issued)

The payments the company makes cash must be made through a check, and the legal characteristics corresponding to internal control are:
-Name of the person who gave him the check.
-RUT of the person who gave him the check.
-Number of the invoice with the check was issued.