Chapter 10

Front 1

Revenue cycle

Back 1

providing goods, collecting cash in payment

Front 2

Revenue cycle #1

Back 2

Sales Order Entry

Front 3

Revenue cycle #2

Back 3

Shipping

Front 4

Revenue cycle #3

Back 4

Billing

Front 5

Revenue cycle #4

Back 5

cash collections

Front 6

sales order

Back 6

info on item number, quantity, terms of sale. customer order data

Front 7

choiceboards

Back 7

customer customize products to meet their needs

Front 8

credit limit

Back 8

maximum account balance allowable, set by credit manager

Front 9

back order

Back 9

not sufficient inventory on hand, created to order stuff

Front 10

picking ticket

Back 10

list an item, quantity that has been ordered, authorizes inventory control to release stuff

Front 11

packing slip

Back 11

list quantities and description of each item included in the shipment

Front 12

bill of lading

Back 12

legal contract, defines responsibility for the goods in transit, carrier, source and destination

Front 13

sales invoice

Back 13

created in billing process, notifies customer of amt to be paid, where to pay it

Front 14

open invoice method

Back 14

customers pay according to each invoice, two copies sent to customer, one remitted

Front 15

remittance advice

Back 15

turn around doc customer uses to pay

Front 16

balance forward method

Back 16

pay according to an amount on a monthly statement

Front 17

monthly statement

Back 17

lists transactions, sales and payments in the past month, has a tear off portion

Front 18

cycle billing

Back 18

monthly statements prepared for subsets of customers at different points of the month

Front 19

credit memo

Back 19

authorizes crediting of a customers account, issued by credit manager, receiving report certs the return of the goods

Front 20

remittance list

Back 20

sent to accounts receivable, a list of all the remmittance advices receives

Front 21

lockbox

Back 21

postal address to send payment, bank receives them and processes them,improves cash flow management, reduces employee theft

Front 22

electronic lockbox

Back 22

banks sends the lockbox info electronically

Front 23

EFT electronic funds transfer

Back 23

customer send remittances electronically to company's bank

Front 24

FEDI financial electronic data interchange

Back 24

integrate eft and EDI remittance data into one process

Front 25

THREAT incomplete or inaccurate customer orders

Back 25

data entry checks

Front 26

THREAT credit sales to poor credit customers

Back 26

approval by credit manager, credit checks, no sales function

Front 27

THREAT legitimacy of orders

Back 27

signatures on paper documents, digital sigs, certificates

Front 28

THREAT stockouts, carrying costs, markdowns

Back 28

invt control systems, forecasts, physical inventory counts

Front 29

THREAT shipping errors

Back 29

reconcile sales orders with picking tickets, packing slips

Front 30

THREAT theft of inventory

Back 30

restrict access, documentation of all internal transfers, physical count, RFID

Front 31

THREAT no bill customers

Back 31

separate billing and shipping functions, prenumber all shipping docs, reconcile invoices

Front 32

THREAT billing errors

Back 32

data entry controls, price lists

Front 33

THREAT posting errors in updating A/R

Back 33

batch totals, subsidaiary accounts, monthly statements

Front 34

THREAT theft of cash

Back 34

segregate duties, mimize handling, lockbox, bank rec.

Front 35

sales analysis reports

Back 35

breaks down sales by person

Front 36

profitability analysis reports

Back 36

break down marginal profit contribution made by each terrotiry, customer, distribution channel

Front 37

cash buget

Back 37

precise estimates of cash inflows and outflows