Final_221.docx - L5 Revenue Cycle Sales Order...

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L5 Revenue Cycle) Sales Order Preparation: 1.Receive purchase order from customer 2.Details recorded in standardised Sales Order include: item ordered, customer details (name & address), delivery instructions, price.3.Documents-Sales order, Backorder, Picking List 4.Check credit and inventory availability 5.Responding to customer enquiries 6. Buyer signed despatch docket Credit Approval: 1.Approval of credit sale by authorised personnel 2.Decide on credit limit for each customer Check inventory availability: 1.Ordered but not available in inventory - ship to customer upon receipt 2.Only bill for goods shipped Responding to customer enquiries: 1.Customer Relationship Management (CRM) 2.Sales order enquiry 3.Improve customer service Pick Goods and Prepare for Shipping: 1.Goods picked 2.Inventory updated if on-line system 3.prepare shipping documents and arrange for dispatch of goods Billing: 1.sales invoice produced and sent to customer as a bill(Tax Invoice). must appear on the invoice. 2.credit note is used for return of goods or allowance for damage(Adjustment Note). 3.remittance advice (turnaround document) accompanies invoice or statement Update General Ledger: In batch processing, post summary accounting journal entries to General Ledger each hour or end of day/week GJ 1.DR Acc Rec CR GST PAYABLE/GST COLLECTED, SALES 2.DR COGS CR INVENTORY Cash collected 1.Cash Sales through cash register 2.Traditionally cheques have been used but EFT growing 3.Receipt 4.List of cheques received 5.Deposit List 6.Remittance advices or proformas to accounts receivable 7.Match payments to customers and invoices or correct time period GJ DR CASH CR Acc Rec Opportunities for Using IT 1.Capture sales order data in machine readable form: 1.1order takers use on-line terminals 1.2Point Of Sale (POS) recorders (on-line cash registers) 1.3direct data entry by customers (eg travel agents, internet) 2.On-line data entry programs 2.1pick up errors 2.2allow online credit checks 2.3allow online inventory checks 4.Email – for orders and communications 5.Electronic Data Interchange (EDI), Virtual Private Networks (VPN) 6.Automated warehouse systems 6.1barcodes6.2picking slips by location 7.Electronic Funds Transfer (EFT) 8.Interactive web site9.Vendor-managed inventory Revenue Cycle Information Needs Operational data relating to the following tasks: 1.Respond to customer inquiries about account balances and order status 2.Decide whether to extend credit to a particular customer 3.Determine inventory availability 4.Select methods for delivering merchandise Current and historical information for the following strategic decisions: 1.Setting prices for products and services 2.Establishing policies regarding sales returns and warranties 3.Deciding what types of credit terms to offer 4.Determining the need for short-term borrowing 5.Planning new marketing campaigns L7expenditure) Purchase Request 1.Recognise and document the need to purchase 2.Need to prepare and have approved a “Purchase Requisition” 3.Only certain staff can prepare or approve 4.Purchase Requisition has 2
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