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customer details. Creating the shipping document can make it easier and faster for Dreamplus toship items for the customer. The potential danger of do not record and keep shipping document is
will cause a duplication of shipment to the same customer. The miss of shipping documentsthroughout the process will cause holdups and delays the items.8. Prepare and review an Open-Order weekly Open-order report is a report used to track and shipping status of pending orders and theincomplete orders will be investigated. This may be caused by the items are out of stock. Open-order report enables Dreamplus to resolve open order in a timely and effective manner. Thisbehavior will also let the customer be more confident and a sense of trust in our company. Thus,this will cause our company has a good image and reputation. If open order is not followed up, itwill cause a late delivery or forgot to ship the items to the customers. This might be caused thecustomer to complain about our company services.9. Produce an aged receivables report on a monthly basisAn aged receivable report is a record that shows the unpaid invoice balance and its outstandingperiod. It is a list of customer balance reported in categories such as less than 30 days, 30-60days, 60-90days, more than 90 days based on time expired since the date of the sales invoice(Commercial Capital LLC, 2011). Companies can use this information to create collection lettersto send to customer with overdue balance. It is used to ensure that money is received for theinvoice raised and it will improve company cash flow. It will cause the company to activelypursue old or overdue balance and is helpful in selling practices and laying out credit. Thepotential risk is the cash cannot be received back and will cause our company to have a cash flowproblem. It will also increase the uncollected debt. 10. Processing and recording cash receiptsCash is the most liquid of all assets, so all cash or cheques receipts recorded in the cash receiptsjournal is helping Dreamplus to facilitate access to obtain correct information on cash flow andbalance. Dreamplus employee recorded the cash receipts in the daily method as will be moreaccurate and provides more assurance that proves Dreamplus does not have a cash shortageoperations. It can also help avoid the risk of audit problems. Without processing and recordingcash receipt will lead to incomplete accounting records which can be risky in the long run.Furthermore, it will easily be theft and withdraw by the employee as Dreamplus didn't have adocument to prove that money theft by the employee is company money.
Purchases and payable cycleThe purchase and payable cycle is a process which start with analysis, making purchase decisionuntil the final the final payment of the purchase is done. The purchase and payable cycle isnecessary for every company and business; it is to comprises all the activities which related toexpenses.