Isys 414 - Ch. 10 - Revenue Cycle

Front 1

revenue cycle

Back 1

recurring set of business activities and related information processing operations associated with providing goods and services to customers and collecting cash in payment for those sales

Front 2

sales order

Back 2

contains information about item numbers, quantities, prices, and other terms of the sale.

Front 3

choiceboards

Back 3

allow customers to customize products to meet their exact needs

Front 4

vendor-managed inventory (VMI)

Back 4

retailer provides the supplier with access to data from the retailer's point-of-sale system.

Front 5

credit limit

Back 5

maximum allowable account balance

Front 6

back order

Back 6

if there is not sufficient inventory on hand to fill the order

Front 7

picking ticket

Back 7

lists the items and quantities of each item that the customer ordered

Front 8

packing slip

Back 8

lists the quantity and description of each item included in the shipment

Front 9

bill of lading

Back 9

legal contract that defines responsibility for the goods in transit. Carrier, source, destination, who must pay the carrier, and special shipping instructions

Front 10

sales invoice

Back 10

notifies customers of the amount to be paid and where to send payment

Front 11

open-invoice method

Back 11

customers typically pay according to each invoice.

Front 12

remittance advice

Back 12

second copy of the invoice mailed back to vendor

Front 13

balance-forward method

Back 13

customers typically pay according to the amount shown on a monthly statement, rather than individual invoices.

Front 14

monthly statement

Back 14

lists all transactions, including both sales and payments, that occurred during the past month and informs customers of their current account balances.

Front 15

cycle billing

Back 15

monthly statements are prepared for subsets of customers at different times.

Front 16

credit memo

Back 16

authorizes the crediting of the customer's account

Front 17

remittance list

Back 17

document identifying the names and amounts of all customer remittances

Front 18

lockbox

Back 18

postal address to which customers send their remittances

Front 19

electronic lockbox

Back 19

bank electronically sends the company information about the customer account number and the amount remitted as soon as it receives and scans those checks

Front 20

electronic funds transfer (EFT)

Back 20

customers send their remittances electronically to the company's bank and thus eliminate the delay associated with the time the remittance is in the mail system.

Front 21

Financial electronic data interchange (FEDI)

Back 21

integrates the exchange of funds (EFT) with the exchange of the remittance data (EDI)

Front 22

sales analysis reports

Back 22

break down the sales by salesperson, region, or product

Front 23

profitability analysis reports

Back 23

break down the marginal profit contribution made by each territory, customer, distribution channel, salesperson, product, or other basis

Front 24

cash budget

Back 24

provides precise estimates of cash inflows and outflows

Front 25

accounts receivable aging schedule

Back 25

lists customer account balances by length of time outstanding