Chapter Eleven

Chapter Eleven - Chapter Eleven Sales/Collection Process A...

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Chapter Eleven: Sales/Collection Process A business process is a set of procedures and policies designed to create value for some organizational stakeholder. PORTER’S VALUE CHAIN Inbound logistics: the receiving and warehousing of raw materials, and their distribution to manufacturing as they are required Operations: the processes of transforming inputs into finished products and services Outbound logistics: the warehousing and distribution of finished goods. the identification of customer needs and the generation of sales Service: the support of customers after the products and services are sold to them Procurement: purchasing inputs such as materials, supplies, and equipment Infrastructure: organizational structure, control systems and company culture. Human resource management: employee recruiting, hiring, training, development, and compensation Information technology: technologies to support value-creating activities. PROCESS DESCRIPTION The fundamental purpose of the sales/collection process is to provide goods and services to clients and to collect payment from them. Steps: 1. Take a customer’s order 2. Approve the customer’s credit 3. Fill the order based on approved credit 4. Ship the product (if necessary) 5. Bill the customer 6. Collect payment 7. Process uncollectible receivables as necessary DOCUMENTS AND MODELING
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This note was uploaded on 03/27/2012 for the course ACCT 01 taught by Professor Smith during the Spring '12 term at Howard.

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Chapter Eleven - Chapter Eleven Sales/Collection Process A...

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