Here’s the complete list of accounting source documents used in Indian businesses, grouped by what they’re used for.

1. Purchase & Sales Documents

These are the evidence documents for buying and selling transactions between businesses and customers.

• Purchase Orders (POs) – A purchase order is an order form filled out to purchase goods or services. It’s generally used to finalize a purchase before delivery.
• Quotes – A quote is the price estimation issued by a supplier before confirming a deal. Customers typically collect quotes from different suppliers to compare which one offers the best deal at the lowest cost.
• Sales and Purchase Invoices – This is a detailed sales document containing all specifics of the item purchased. If full payment isn’t required before delivery, the invoice must state payment terms and how long the buyer has to pay.

2. Payment & Banking Documents

These documents are proof of payment, deposits, and financial transactions.

• Receipts – Receipts confirm that a customer has paid an invoice. They’re issued automatically once payment for the purchased goods is completed.
• Cheques – A cheque is a bank instrument that represents cash and facilitates customer transactions. It’s generally used for non-cash payments through authorized banks. To process the cheque, it must be signed by the authorized signatory, and its unique number should be recorded in your accounting software.
• Deposit Slips – These slips are issued to customers who make payments through cash or cheque to the bank. The total amount of cash and cheques deposited together with their respective amounts is specified in the slip. The bank then updates the records of both the payee and the payer
• Payment and Remittance Advice – This is mostly used by customers to notify the suppliers that they have paid their bills. It contains information about the payment and the invoice numbers. In case of net banking, the remittance is sometimes attached to the cheque or sent separately.

Note: Many invoices are created with a pre-printed remittance section for easy processing.

3. Payroll & Employee Related Documents

Payroll documents serve as evidence of salary and employee-related transactions recorded in the books of account. The documents may include payroll registers, salary statements, attendance records, employee payment records, and cleared cheques depending on the requirements of a business and statutory requirements. The documents are used to clear amounts payable to employees in the payroll account and as evidence in supporting the accrual of salaries in the books of account.

4. Delivery & Shipping Documents

These documents track the movement of goods from suppliers to buyers.

• Delivery Dockets – Delivery dockets are issued by the suppliers to signify that the goods have been delivered to the customer.

When goods arrive, are posted, or delivered, the seller often issues a docket indicating the items ordered. Thus, with the delivery docket, the customer can cross-verify the received items with the ones they ordered.

• Consignment Note – A consignment note is issued together with the transported goods specifying the shipping details.

It carries all the necessary information about the shipment from the point of origin to the destination while tracking them down effortlessly.

• Goods Receipt Note (GRN) – A GRN is issued to verify that the seller has delivered the order and the buyer has received it. 

It’s generally used after verifying that the received goods match the purchase order.

Note: If a delivery dispute arises later, the goods receipt note provides solid proof of delivery.

5. Adjustment & Tax Compliance Documents

These documents explain the process of tax adjustments, refunds, tax compliance, and other procedures required for filing GST and income tax regulations.

• Credit Notes: A credit note may be issued by a seller to adjust the amount charged to a buyer, such as in the case of a sales return, overcharging, or any other similar scenarios, and it depends on tax and accounting laws.
• Debit Notes: A debit note may be issued to adjust the amount of money owed or inform the buyer of a debit, which may include additional information about an amount due, and it depends on tax and accounting laws.

In terms of accounting and GST, the above notes have to be dealt with according to the situation and laws, which means that businesses need to make sure that everything is documented and taxed properly.

• GST Invoices Description: A GST invoice is issued upon the sale of taxable goods or services. The invoice records the GST rate and amount. Additionally, it contains information on the amount of CGST, SGST, and IGST payable. A GST tax invoice is issued for taxable supplies by a taxpayer to another recipient as mandated by the GST law. It comprises details stipulated by the GST rules including the invoice number and date, supplier and recipient’s information, description of goods and/or services, taxable value, and other mandated details.

Businesses must ensure that all invoice particulars mandated by the GST law are present in the invoices issued and that the documents are compliant with the current GST requirements.

Important: GST invoicing requirements may vary depending on the nature of supply and the taxpayer’s situation. Please consult the latest GST and CBIC guidelines or a tax expert for clarification.

• TDS Certificates: A TDS certificate is evidence that the payer deducted Tax at Source before making a payment. Under the Income Tax Act, certain payments require TDS deduction professional fees, rent, and commissions among them.

Maintaining these accounting source documents is the basis of bookkeeping, tax, and audits. According to the Income Tax Act, businesses that are mandatory to maintain books of account, under section 44AA, should be kept for a minimum of six years after the relevant assessment year has ended (or until the conclusion of any assessment, reassessment, or appeal that may be pending)