Group 1 Chapter 4 - Revenue Cycle.ppt - Chapter 4 The...

This preview shows page 1 - 11 out of 70 pages.

Chapter 4-1 Chapter 4 The Revenue Cycle
Chapter 4-2 Revenue Cycle we examine the revenue cycle conceptually, Using data flow diagrams (DFDs) revenue cycle includes: sales order procedures, sales return procedures, and cash receipts procedures
Chapter 4-3 Sample Illustrations On July 1, CBS sells 10 electronic hardware packages to a customer at a sales price of P1,200 each. The customer pays immediately with cash. The following entries occur. Dr. Cash P12,000 Cr. Sales P12,000
Chapter 4-4 Sample Illustrations On July 7, CBS sells desktop computers amounting P20,0000 to a customer on credit. The credit terms are n/15 The following entries occur. Dr. Accounts Receivable P20,000 Cr. Sales P20,000
Chapter 4-5 Sample Illustrations On October 6, the customer returned 4 of the electronic hardware to CBS for a full refund. CBS returns the printers to their inventory at the original cost. The following entries show the sale and subsequent return. The following entries occur. Dr. Sales Return and Allowances P4,800 Cr. Cash P4,800
Chapter 4-6 Sales Order Process
Chapter 4-7 Sales Order Procedures/Conceptual System Receive Order. The sales process begins with the receipt of a customer order indicating the type and quantity of merchandise desired . The sales order captures vital information such as the customer’s name, address, and account number; the name, number, and description of the items sold; and the quantities and unit prices of each item sold. After creating the sales order, a copy of it is placed in the customer open order file for future reference
Chapter 4-8 Sales Order Procedures/Conceptual System Check Credit The credit approval process is an authorization control and should be performed as a function separate from the sales activity The receive-order task sends the sales order (credit copy) to the check-credit task for approval. The returned approved sales order then triggers the continuation of the sales process by releasing sales order information simultaneously to various tasks
Chapter 4-9 Pick Goods. The receive order activity forwards the stock release document (also called the picking ticket) to the pick goods function, in the warehouse. This document identifies the items of inventory that must be located and picked from the warehouse shelves. It also provides formal authorization for warehouse personnel to release the specified items After picking the stock, the order is verified for accuracy and the goods and verified stock release document are sent to the ship goods task Sales Order Procedures/Conceptual System
Chapter 4-10 Salse Order Procedures/Conceptual System Pick Goods. If inventory levels are insufficient to fill the order, a warehouse employee adjusts the verified stock release to reflect the amount actually going to the customer.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture