Class_4_Revenue_Cycle_lecture_notes_2011

Class_4_Revenue_Cycle_lecture_notes_2011 - Revenue Cycle...

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Revenue Cycle Class 4 Sept 14
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2 The basic give-get exchange is give finished goods, get cash The external party type involved is Customers For the Revenue Cycle . . . Give Get
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Revenue Cycle Sales Order Entry Shipping Billing Cash Collections Returns Custome r Inventory Custome r Cash Custome r Open Orders Shipped Orders Order Entry Fill & Ship Billing Cash Receipt Sales Returns Basic parts of a typical revenue cycle
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REVENUE CYCLE INFORMATION NEEDS Information is needed for the following operational tasks in the revenue cycle: Responding to customer inquiries Deciding on extending credit to a customer Determining inventory availability Selecting merchandise delivery methods
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REVENUE CYCLE INFORMATION NEEDS Information is needed for the following strategic decisions: Setting prices for products/services Establishing policies on returns and warranties Deciding on credit terms Determining short-term borrowing needs Planning new marketing campaigns
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REVENUE CYCLE INFORMATION NEEDS The AIS needs to provide information to evaluate critical revenue cycle processes: Response time to satisfactorily resolve customer inquiries Time to fill and deliver orders Percentage of sales orders back ordered Customer satisfaction rates and trends Analyses of market share and sales trends Profitability by product, customer, and region Sales volume in dollars and market share Effectiveness of advertising and promotions Sales staff performance Bad debt expense Days receivables outstanding
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DATA FLOW DIAGRAMS Customer 1.0 Process Payment 2.0 Update A/R Credit Manager Bank Accounts Receivable Customer payment Remittance data Receivables Information Deposit Data sources and destinations are marked in red.
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1.1 Take Order Customer Shipping 1.2 Approve Credit 1.3 Check Inv. Avail. Billing Ware- house Purchas- ing 1.4 Resp. to Cust. Inq. Customer Sales Order Customer Inventory Orders R e j c t d O r s A k n o w l g m Orders Approved Orders B a Picking List Sales Order Sales Order Inquiries Response DFD for Sales Order Entry
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Sales Order
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Ordering - Sales What is a Back Order? A Back Order is a document that is created if there is not enough inventory available to fill the order.
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Class_4_Revenue_Cycle_lecture_notes_2011 - Revenue Cycle...

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