Which document in procurement confirms the transfer of ownership and records the terms of sale?

Which document in procurement confirms the transfer of ownership and records the terms of sale?

• A. Credit memo
• B. Purchase order
• C. Invoice
• D. Receiving report

Answer: (C)

In procurement, the document that confirms the transfer of ownership and records the terms of sale is the invoice. The invoice is issued by the supplier after goods are shipped or delivered and it lists what was sold, the quantities and prices, and the payment terms. It serves as the formal record of the sale and, depending on the agreed terms (such as FOB shipping point or destination), indicates when ownership and risk pass from seller to buyer. Other documents have different roles: a purchase order is the buyer’s instruction to purchase; a receiving report records what arrived and helps verify quantities against the order and invoice; a credit memo notes credits or allowances for returns or adjustments.

In procurement, the document that confirms the transfer of ownership and records the terms of sale is the invoice. The invoice is issued by the supplier after goods are shipped or delivered and it lists what was sold, the quantities and prices, and the payment terms. It serves as the formal record of the sale and, depending on the agreed terms (such as FOB shipping point or destination), indicates when ownership and risk pass from seller to buyer.

Other documents have different roles: a purchase order is the buyer’s instruction to purchase; a receiving report records what arrived and helps verify quantities against the order and invoice; a credit memo notes credits or allowances for returns or adjustments.