Overview of Revenue Cycle

Revenue Cycle
Sales order procedures
Overview of Revenue Cycle
Sales Order Procedures
Sales return procedures
Sales Return Procedures
Cash Receipts Procedures
Manual Systems Cash receipts procedures
Computer Based Accounting Systems
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Sales Order Procedures Sales Order Procedures

Receiving and processing a customer order

Filing the order

Shipping products to the customer

Billing the customer at the proper time

Correctly accounting for the transaction

Source: Hall, James A. (2011). Accounting Information Systems: Seventh Edition. Cengage Learning. Chapter 4, page 155.
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 Sales Order Procedures
Credit
Sales
Invoice
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Sales Order Procedures
Journal Voucher
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Sales Order Procedures
Bill of Lading
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Sales Order Procedures
Inventory Subsidiary Ledger
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 Sales Order Procedures Sales Return Procedures

Accounts Receivable Subsidiary Ledger The company shipped the customer the wrong
merchandise

The goods were defective

The product was damaged in shipment

The buyer refused the delivery because the goods was

shipped too late or was delayed in transit

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Sales Return Procedures Sales Return Procedures

Credit Memo

Source: Hall, James A. (2011). Accounting Information Systems: Seventh Edition. Cengage Learning. Chapter 4, page 161.

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 Cash Receipts Procedures Cash Receipts Procedures

Remittance Advice

Source: Hall, James A. (2011). Accounting Information Systems: Seventh Edition. Cengage Learning. Chapter 4, page 164.

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Cash Receipts Procedures
Manual Systems
Cash Receipt Journal

Source: Hall, James A. (2011). Accounting Information Systems: Seventh Edition. Cengage Learning. Chapter 4, pages 172-173.

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 Manual Systems Manual Systems

Source: Hall, James A. (2011). Accounting Information Systems: Seventh Edition. Cengage Learning. Chapter 4, pages 172-173. Source: Hall, James A. (2011). Accounting Information Systems: Seventh Edition. Cengage Learning. Chapter 4, page 175.

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Manual Systems Computer Based Accounting Systems

Source: Hall, James A. (2011). Accounting Information Systems: Seventh Edition. Cengage Learning. Chapter 4, page 177.

Source: Hall, James A. (2011). Accounting Information Systems: Seventh Edition. Cengage Learning. Chapter 4, page 176.

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 Computer Based Accounting Systems Computer Based Accounting Systems
Point-of-Sale (POS) Systems
Used extensively in grocery stores, department stores and
other types of retail organizations
Only cash, checks and bank credit card sales are valid
The organization maintains no customer accounts receivable
Inventory is kept on the stores shelves not in a separate
warehouse
The customers personally pick the items they wish to buy
and carry them to the checkout location where the
transaction begins

Source: Hall, James A. (2011). Accounting Information Systems: Seventh Edition. Cengage Learning. Chapter 4, page 184.

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