Information about the revenue cycle activities also

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Information about the revenue cycle activities also flows to the other accounting cycles which are: the expenditure  cycle, the production cycle, the human resources and payroll cycle and the financing cycle. An example is that the expenditure and production cycle actually both use information about the sales transactions of  the company to see if additional inventory must be produced or purchased to meet the demand.  Another example is that the human resource and payroll cycle will use information about the sales, of in this case  Rotary, to calculate the amount of commissions and bonuses which each employee, if any, will receive.  The main objective is described above, to accomplish this objective the management of Rotary has to make certain  primary decisions. These decisions will be described in the next chapter. Another task of the management is to monitor  and evaluate the efficiency and the effectiveness of all the revenue cycle processes. Therefore they need to have easy  access to all the resources employed in this cycle, the events which actually affect these resources and the agents  which take place in executing these events. We will also see in this case the importance of accurate, reliable and timely data.    The AIS had three basic functions in this cycle: 1. Capturing and processing data about business activities 2. Storing and organizing data to support decision making  3. Providing controls to ensure the reliability of data and the safeguarding of organizational       resources The difference between Billable revenue and collection is that, billable revenue is the amount of money paid by the patient to the practitioner for the services or care offered, whereas a collection is the amount of money that is yet to be paid by the patient to the practitioner, because of the inability to pay. Billable revenue has an advantage over collections, because collection can accumulate and they may never be received. What is a Revenue Cycle? A  revenue   cycle   is  the   process  businesses  use  to   describe   the   financial   progression  of  their  accounts receivables from the very beginning, when they first acquire product, if they're product   based, until they get paid, if they get paid in full. For companies that sell products, the revenue cycle process begins with that product being  priced and ready to be sold. If the company has to purchase product to do the services, the  revenue cycle starts as soon as that product is in their possession and priced.
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Revenue Cycle Management for Product Based Businesses o If a company sells products, the first stage in the revenue cycle process is  selling the product. When they sell the product, if they collect in full at the point of the sale 
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