Storage of information

Retention policy is a policy that shows how long

different kinds of information are to be kept in a
business.

Mangers and those who may be involved in

tranctions not only them but parties interested in
the financial performance of the company and out
side agencies requiring information for surveys or
personal activities need to know the following
about the business.
Past and current transaction for later analysis
Past trends and operations to base plan and
decision making
They also need to know the information about its
performance to plan and budget and also they need
routine info transactions on which to base
operations current and decision making also their
routine transcation information.
Information shared on a personel or interpersonal
level may include the following

Details about complaints or enquiries from

suppliers ,customers,collegues and so on and so
fourth.
Information to employees about the organization
Information to the business about emplyees
Which they provide themselves through an
interview.
Information which requires handling and storage :

 Financial records :prepared and received in

the course of transaction and reporting the
purpose for planning and control.
  Incoming corrospondences :these are
received in the business and may be
emails,letters,reports,memos.they are kept for
action and analysis

 Files of data may be

permanent,temporary,active or non active.

 Outgoing correspondences these are

informations provided by the business to the
public reason being for evidence of what has
happened.
Note:main reason of a financial record is to show
transactions and reporting that happened in a
period of a business they help in control and to plan
the next step.

Types of retention policies

Permanent(master files)ones that can not be
scrapped in a business they are updated from time
to time but never thrown away the info may change
but not the file it remains as it is
Temporary(transitore file this one is meant to be
kept for a short period then be scrapped off when
the transaction has been made.tho the casg book is
permant

Active file (this one is still frequently used in a

business in day to day basis e.g invoice
Non active no longer used on the daily and and semi
active are still active but on the way to becoming
inactive……contacts near completion

When info stored in files is no longer needed for

daily basis it is automatically thrown away in a
number of way

 Microfilming for long term storage

  Archiving
 Securely destroyed(by a machine)

Data stored by individauls is regulated by data

protection legistration.
Storage information by the data protection act

Without data protection

Individual personal information can be accessed by
unathorised parties
Information can be used for other purposes than
those intended
The info may be unaccurate and misleading
However these law do not protect non corporate
bodies and data processed mechanically
And manually
Data contollers control the use of personal files and
personal infowhich are procecced manuallu

Personal data info about an individual including

their facts and expression of personal opinion

Business cash transaction byer pays cash to the

supplier the minute goods are received cash or
service that happens before goods or services are
received,
It may happen in credit transactions that cash being
paid is defferent from the value of a
transaction..when it is now due
Other forms of transactions are borrowing
money,paying off wages and lastly offering a
discount .

A business uses economic resources to create goods

and survices for its owners for its owners it creates
jobs and also investes in resoursces to make profits
Accounts measure income ,expenditure and lastly
profits

A business is different from its owners and this is

called the accounting convention not only that but
there are other things like entity is an oraganisation
formed by a group of people who want to achieve
the same end goal
E,g club or local authority

Business an oraganisation that existes to make

profit for its owners or money for its owners

Firm an unicoporated business

Company a business corparated by some legal form

involving limited liability forits members ,e,g
charities.
The dual aspect of financial transation invlve debit
another side and crediting the other side
The evidence can be done by an internal ot external
document (usually to record business
transactions)external
are usually enquiry
Quotation(detailing the price)
Acceptance letter
Acknowledgement letter
Sales order used as go ahead to proceeds
withsupply a srequested
Delivery note
Credit and debit note
Sales order when the customer writes out an order
of goods they wish to bye
Purchases order -a businesses places an order with
other business for the purchase or sake of goods

An invoice may include

Name of purchaser
Name of the supplier
Data of transaction
Invoice number
Decription of transaction
Total invoice including sales tax
Quantity and unit supplied

Import and export invoices

Free on board suppliers carries all carriedge costs
Ex works(price included cost of delivery
E&oe

File copy to show a transaction took place basically

an invoice was made and delivered from the
business.
Export and import invoices may include delivery
adress
Refrencing
Fob
Ex works
E$oe
Credit note :send by seller to customer to cancel
part of the previously issued invoice
Some times seller may give purchase credit note so
that value of the total amount payable is equal to
the value of the invoice
.cash counterfoil may include credit note…….
E commerce payment of bought goods on a series
of clicks
Discount
Allowance and rebates
Trade discount :reduction in the cost of goods for
bulkn purchases and regular customers
Cash discount reducytion in the amount payable to
supplier
Net discount :amount of money demanded from
the business not customer
Cash discount is the matter of financial and not
trading policy
Rebate when a business lowers its overall tarrif for a
customer who buys certaion units allowance

Retention policy a policy which statesvhow long

businesss documents should be kept in a business
It may want to know
Past and currents trasation(to analyse
Past trents and operations(to make planning and
control
Business performance(for control and plan budgets)
Routine tractions in order to place current
orparations and decisions
Maners out side souces doing surveys people
involved in these transactions being suppliers
customers staff
People who wish to invest and account payables
Sub contractors people or organization which
accepts to perform part or all of the business
obligations
The woners investors account payable and lastely
outside agencies(government bodies,tax
authorities)
Information on a personal and interpersonal level
that may shared are
Relevanat details of queries and complaints from
customers and stuff and other parties

Information supplied to the organisationa bout an

employee which they pproveide them selves
through interview information supplied to
employee about the orgamisation
Information supplied to employee about the
organsiation this may include methods about their
own place in system

Information which requires handling and storage