1. Chapter 3-1 The Islamic University of Gaza Accounting Information System The Revenue Cycle Dr. Hisham Madi

2. Chapter 3-2 Automated Cash Receipts Procedures Mail Room  The mail room clerk separates the checks and remittance advices and prepares a remittance list.  These checks and a copy of the remittance list are sent to the cash receipts department.  The remittance advices and a copy of the remittance list are sent to the AR department.

3. Chapter 3-3 Automated Cash Receipts Procedures Cash Receipts Department  The cash receipts clerk reconciles the checks and the remittance list and prepares the deposit slips Accounts Receivable Department  The AR clerk receives and reconciles the remittance advices and remittance list

4. Chapter 3-4 Point-of-Sale Systems  Point of sale systems are used extensively in retail establishments.  Customers pick the inventory from the shelves and take them to a cashier.  The clerk scans the universal product code (UPC). The POS system is connected to an inventory file, where the price and description are retrieved.  The inventory levels are updated and reorder needs can immediately be detected.

5. Chapter 3-5  The system computes the amount due. Payment is either cash, check, ATM or credit card in most cases.  No accounts receivables  If checks, ATM or credit cards are used, an on-line link to receive approval is necessary.  At the end of the day or a cashier’s shift, the money and receipts in the drawer are reconciled to the internal cash register tape or a printout from the computer’s database. Point-of-Sale Systems

6. Chapter 3-6 CONTROL CONSIDERATIONS FOR COMPUTER-BASED SYSTEMS Authorization  In POS systems, the authorization process involves validating credit card charges and establishing that the customer is the valid user of the card Supervision  In a POS system, where both inventory and cash are at risk.  Customers have direct access to inventory in the POS system, and the crime of shoplifting is of great concern to management. 

7. Chapter 3-7 CONTROL CONSIDERATIONS FOR COMPUTER-BASED SYSTEMS  Surveillance cameras and shop floor security personnel can reduce the risk.  These techniques are also used to observe sales clerks handling cash receipts from customers. Access Control  Because POS systems involve cash transactions, the organization must restrict access to cash assets.  One method is to assign each sales clerk to a separate cash register for an entire shift

8. Chapter 3-8 CONTROL CONSIDERATIONS FOR COMPUTER-BASED SYSTEMS Access Control  Inventory in the POS system must also be protected from unauthorized access and theft.  Both physical restraints and electronic devices are used to achieve this.  steel cables are often used in cloth- ing stores to secure expensive leather coats to the clothing rack

9. Chapter 3-9 CONTROL CONSIDERATIONS FOR COMPUTER-BASED SYSTEMS Accounting Records  rest on reliability and security of stored digitalized data  Accountants should be skeptical about the accuracy of hard-copy printouts.  Backups - the system needs to ensure that backups of all files are continuously kept