Ch11-IM7ed - _ Chapter Eleven The Billing/Accounts...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
__________________________________________ Chapter Eleven The Billing/Accounts Receivable/Cash Receipts (B/AR/CR) Process LEARNING OBJECTIVES Describe the relationship between the B/AR/CR process and its business environment. Illustrate the potential of the B/AR/CR process to assist management decision making. Summarize how enterprise systems, E-Business and other technology can improve the effectiveness of the B/AR/CR process. Depict the logical and physical characteristics of the B/AR/CR process. Prepare a control matrix for some typical billing and cash receipts processes, including explanation of how business process control plans can accomplish operations and information process control goals. KEY TERMS INTRODUCED IN CHAPTER ELEVEN float open-item system good funds sales event data charge card accounts receivable adjustments data credit card cash receipts event data debit card remittance advice file electronic funds transfer (EFT) post-billing system automated clearing house (ACH) pre-billing system lockbox independent billing authorization electronic bill presentment and payment (EBPP) check for authorized prices, terms, freight and discounts lapping independent pricing data invoice confirm customer accounts regularly remittance advice (RA) immediately endorse incoming checks accounts receivable master data immediately separate checks and remittances advices balance-forward system reconcile bank accounts regularly
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
CHAPTER SYNOPSIS This chapter covers the billing/accounts receivable/cash receipts (B/AR/CR) process. A close relationship exists between this process and the order entry/sales (OE/S) process you studied in Chapter 10. In fact, many firms do not distinguish the two processes as clearly as we do in this book. In combination, the OE/S and B/AR/CR processes comprise the order-to-cash process depicted in Figure 2.7 in chapter 2. This chapter first defines the B/AR/CR process and describes its functions. In addition to the recording of the relevant business events, we emphasize the importance of this process in meeting customer needs and show how companies have used the B/AR/CR process to gain competitive advantage. This includes exploration of the technologies used to leverage the process and to compete in an increasingly enterprise systems and e-business driven environment. Based on this business environment, we explore the imprint of the B/AR/CR process on the organization, again taking both a horizontal and vertical perspective. We follow this with discussion of both the logical and physical process implementation. As in Chapter 10, control issues are dispersed throughout the chapter and are summarized by using the control framework of Chapter 9. DISCUSSION GUIDE
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/10/2011 for the course ACCT 2102 taught by Professor Mrwangs during the Fall '09 term at Arizona Western College.

Page1 / 13

Ch11-IM7ed - _ Chapter Eleven The Billing/Accounts...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online