Identify sources of business transactions (source documents)

Without source documents, a business cannot prove that a transaction happened. Source documents serve three key purposes:

• Evidence — they prove that money or goods changed hands
• Details — they provide the exact amounts, dates, names, and quantities involved
• Reference — they can be checked later if there is a dispute or error

Here are the most common source documents used in Tanzanian businesses:

1. Cash Receipt

A cash receipt is issued when a business receives cash from a customer. It shows how much money was received, from whom, and the date.

Example: A shop in Mwanza sells groceries to a customer for Tshs 25,000 cash. The shopkeeper gives the customer a receipt showing the amount paid.

2. Cash Payment Voucher (CPV)

A cash payment voucher is prepared when a business pays cash out. It authorises the payment and records details of what was paid for.

Example: A hardware store in Arusha pays Tshs 150,000 to a local transport company for delivering goods. The store prepares a CPV showing the payment.

3. Invoice

An invoice is issued by a seller to a buyer when goods or services are sold on credit. It shows the quantity, price, and total amount owed.

Example: A wholesale shop in Dodoma sells building materials worth Tshs 500,000 to a customer on credit and sends them an invoice.

4. Sales Invoice (Copy)

A copy of the invoice kept by the seller is also a source document showing what was sold.

5. Credit Note

A credit note is issued when a seller reduces the amount a customer owes — for example, if goods were returned or if there was an error in pricing.

Example: A customer in Dar es Salaam returns damaged goods worth Tshs 20,000. The shop issues a credit note to reduce the customer's debt.

6. Debit Note

A debit note is sent by a seller to a buyer when the buyer owes the seller additional money — for example, if the seller had undercharged in the original invoice.

7. Bank Statement

A bank statement is a document sent by the bank showing all transactions that have gone through the business bank account over a period — deposits, withdrawals, and payments.

8. Cheque Counterfoil

When a business writes a cheque, the counterfoil (the stub kept in the cheque book) is a source document showing who the cheque was paid to and for what amount.

9. Delivery Note

A delivery note accompanies goods when they are delivered to a buyer. It lists the items delivered and is signed by the receiver to confirm receipt.

10. Purchase Order

A purchase order is sent by a buyer to a seller to request goods or services. It shows what the buyer wants to buy and in what quantity.

When you look at a document, ask yourself these questions:

• Does it show that a business transaction occurred?
• Does it include the amount of money involved?
• Does it show the date of the transaction?
• Does it identify who the parties are (buyer and seller)?

If the answer to all these questions is yes, then the document is a source document.

A student walks into a bookshop near their school in Mbeya and buys three exercise books for Tshs 6,000 cash. The shopkeeper hands the student a small white paper.

In this situation:

• The source document is the cash receipt
• It proves that Tshs 6,000 changed hands
• It shows the date, the items bought, and the amount

A bookkeeper would use this receipt to record the transaction in the cash book.

In everyday life in Tanzania, source documents are used whenever you buy something from a shop or market vendor who gives you a receipt — for example, buying school supplies from a duka in Morogoro or paying for a motorcycle repair in Shinyanga. Keeping these receipts helps both the business owner record their sales and the customer prove what they paid for if goods are defective. Even small market vendors increasingly use printed receipts or mobile phone messages as source documents to track their daily sales.