Overview of the Revenue Cycle

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Presentation transcript:

Overview of the Revenue Cycle October 9, 2017

$$$ BUYER SELLER Goods & Services TRANSACTION

$$$ BUYER SELLER Goods & Services PURCHASE TRANSACTION

$$$ BUYER SELLER Goods & Services SALE TRANSACTION REVENUE CYCLE

Documents in the Revenue Cycle Credit Application Price List Sales Order Order Acknowledgement Picking Ticket (Filling ticket, etc.) Packing Slip (Picking ticket? Filling ticket?) Shipping Order Bill of Lading (Shipping Manifest) Shipping Advice Billing Invoice Billing statement Statement of Account Dunning Notice Remittance Advice Customer Check Deposit Slip (deposit ticket) Deposit Receipt (Cash Report) Bank Statement

Documents in the Revenue Cycle Credit Application Price List Sales Order Order Acknowledgement Picking Ticket (Filling ticket, etc.) Packing Slip (Picking ticket? Filling ticket?) Shipping Order Bill of Lading (Shipping Manifest) Shipping Advice Billing Invoice Billing statement Statement of Account Dunning Notice Remittance Advice Customer Check Deposit Slip (deposit ticket) Deposit Receipt (Cash Report) Bank Statement

Documents in the Revenue Cycle Credit Application Price List Picking Ticket (Filling ticket, etc.) Deposit Slip (deposit ticket) Deposit Receipt (Cash Report)

Documents in the Revenue Cycle Credit Application Price List Sales Order Order Acknowledgement Picking Ticket (Filling ticket, etc.) Packing Slip (Picking ticket? Filling ticket?) Shipping Order Bill of Lading (Shipping Manifest) Shipping Advice Billing Invoice Billing statement Statement of Account Dunning Notice Remittance Advice Customer Check Deposit Slip (deposit ticket) Deposit Receipt (Cash Report) Bank Statement

Job Titles in the Revenue Cycle Sales Manager Credit Manager Sales Rep – Customer Service Order Filling (production, warehouse, etc.) Shipping Billing Accounts Receivable Cashier (Treasurer’s office) Collections Clerk Controller (bank reconciliation clerk)

Sales Manager Sales Rep Customer Sets Selling Prices Price List Product Master File

What is the difference between SALES and MARKETING?

Sales Manager Sales Rep Customer Sets Selling Prices Credit Application Price List Credit Manager Credit Check Outside Credit Sources Credit Approved? Credit Application Product Master File No Sets up Customer Yes Cust Master File Credit Application

Sales Manager Sales Rep Customer Sets Selling Prices Credit Application Price List Credit Manager Outside Credit Sources Credit Check Credit Approved? Credit Application Product Master File No Yes Customer Master File Sets up Customer Credit Application

Sales Manager Sales Rep Customer Customer’s PO Sets Selling Prices Negotiates Sale Price List Standard Price? No Sales Mgr Approval? No Yes Order Acknowledgement Obtain and enter Sales Order Obtain & Enter Order Yes Product Master File Customer’s PO Open Sales Orders Customer Master File P.2

P.1 Warehouse Print Picking Tickets Open Sales Orders Next Morning Picking Ticket (2 copies) Pick, Pack Mdse Picking Ticket (2 copies) Mdse P.3

P.2 Mdse Picking Ticket (2 copies) Shipping Enter Shipping Data Open Sales Orders

P.2 Mdse Picking Ticket (2 copies) Shipping Enter Shipping Data Open Sales Orders Shipped Orders

P.2 Mdse Picking Ticket (2 copies) Shipping Enter Shipping Data Shipping Procedures Open Sales Orders Electronic Shipping Advice Bill of Lading (1 copy) Signed Copy Bill of Lading Mdes Picking Ticket (1 copy) Packing Slip Picking Ticket (1 copy) Carrier’s Driver Customer

P.2 Picking Ticket (2 copies) Shipping Billing Enter Shipping Data Print Invoices Shipping Procedures Shipped Orders A/R File Bill of Lading (1 copy) Signed Copy Bill of Lading Packing Slip Picking Ticket (1 copy) Signed Copy Bill of Lading Sales Summary Invoice Picking Ticket (1 copy) Carrier’s Driver Sales Manager Customer

Open Envelopes, Separate Contents Customer Cashier Accounts Receivable Check Open Envelopes, Separate Contents Remittance Advice Remittance Advice Checks Totals Amounts Totals Amounts Compare and Reconcile Remittance Advice Checks

Cashier Accounts Receivable Checks Remittance Advices Create Deposit Slip Enters to clear A/R & debit cash Checks A/R File Deposit Slip Deposit Slip copy Remittance Advices Cash Receipts Journal copy Cash Receipts Journal Bank Deposit Receipt Verifies Accuracy File Cash Receipts Journal copy Deposit Receipt Deposit Slip copy Controller

Controller Deposit Slip copy Deposit Receipt Bank Cash Receipts Journal Bank Statement Bank Reconciliation Bank Statement Cash Receipts Journal Deposit Receipt Deposit Slip Reconciliation Report

Course Requirements Learn the Documents Learn the Job Titles Learn the Information Flows THINK about what each document is doing!

Wednesday Review the Revenue Cycle Lockbox Procedures Debriefing on Exam 1

Homework Assignment 16 Individual Reading: Dr. Russell’s practice Group: Discuss and Review Dr. Russell’s situation Complete before Friday of this week.