1. Pertemuan 17 The Sales/Collection Business Process Matakuliah: M0034 /Informasi dan Proses Bisnis Tahun: 2005 Versi: 01/05

2. Learning Outcomes Pada akhir pertemuan ini, diharapkan mahasiswa akan mampu : Membuat diagram / skema Real Model proses bisnis penjualan/pendapatan

3. Outline Materi Tujuan dari Proses Penjualan/Pendapatan Pandangan terhadap Proses Penjualan/Pendapatan

4. By Hollander, Denna, Cherrington PowerPoint slides by: Bruce W. MacLean, Faculty of Management, Dalhousie University Accounting, Information Technology, and Business Solutions, 2nd Edition Irwin/McGraw-Hill  The McGraw-Hill Companies, Inc., 2000 Chapter 6 The Sales/Collection Business Process

5.  The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Chapter Objectives n Identify the characteristics of the traditional sales/collection process and related IT applications. n Describe weaknesses in the traditional sales/collection process and IT application architecture. n Develop a REAL model of the sales/collection process. n Suggest ways to improve the sales/collection process and its IT application.

6.  The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill The Purpose of the Sales/Collection Process n The sales/collection process is a series of operating events that: ä collectively serve to attract customers, ä help customers select goods and services, ä deliver the goods and services requested, and ä collect payments for the goods and services. n The process should: ä Minimize the amount of time between the selection of products and services and the collection of cash. ä Minimize the amount of cash that is not collected from customers for goods and services provided. ä Structure product quality and price to balance customer value and organization profitability.

7.  The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill An Overview of the Traditional Sales/collection Process n In a manual sales/collection process, paper is used ä as the primary means to capture and store business data and communicate information to information customers ä as the audit trail for documenting the process. ä to store duplicate data as data is processed across various departments (e.g., the Sales Order Department, the Shipping Department, the Billing Department, and the Warehousing Department). ä to communicate authorizations between departments and to external parties. n Files of source documents and journals are often called transaction files while master files include the subsidiary ledgers, general ledger, and control accounts used by units within the Accounting Department (e.g., accounts receivable, inventory control, and general ledger).

8.  The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Take Order n The customer order typically includes data about the customer, where to ship the goods, the items the customer wants to order, and payment terms. n The company receives the order and checks the customer files to see if the customer is a new or existing customer. n Usually, this customer order is recopied onto a company’s own sales order document. n A copy of the sales order may eventually be used as a sales invoice. Having order data on a pre-numbered internal document helps a company locate order data and avoid losing orders. This is important, because missing documents can signal unfilled or unauthorized transactions.

9.  The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Sales Order n The Sales Order has many of copies: ¶A copy of the sales order is sent to the Credit Department for approval. ·A picking slip or stock request document, to the Warehousing Department authorizing warehousing to pull the goods and move them to the shipping area. ¸The packing slip is sent to the Shipping Department to communicate that goods are forthcoming from the Warehousing Department. ¹Two copies of the sales order are sent to the Billing Department to inform them of the sale and for use in invoicing the customer after the goods are shipped. ºA copy of the sales order (the copy with Credit Department approval) is filed in the Sales Order Department with the customer's order document to create a customer order activity file. The file of customer orders is organized alphabetically (for ease in locating information by customer name). »Finally, a copy of the sales order may be sent to the customer to acknowledge acceptance of their order.

10.  The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Fill Order n The Warehousing Department cannot act without authorization from the Sales Order Department. in the form of the picking slip or stock request document. n Warehousing personnel pick the goods (noting any stock- outs or other problems on the picking slip) and transfer them to the shipping area. n (If necessary, a back order document is created for stock-out items.) n A warehouse inventory subsidiary ledger may be updated to reflect the goods taken out of inventory. ä In a traditional accounting system, each department may keep its own inventory records. These separate inventory records are not included on Exhibits 6-1 and 6-2.

11.  The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Ship Product n The Shipping Department compares the packing slip (from the Sales Order Department) with the picking slip and the goods to be shipped. n They pack the goods and select a carrier; they prepare a bill of lading (that describes the packages they accept for shipment, the carrier, the route, and customer information), keep a copy in the Shipping Department, and send a copy to the customer. n Shipping personnel prepare a shipping notice to communicate that the goods have been shipped. ä The packing slip is included with the packaged goods. ä A copy of a shipping notice is sent to the Billing Department as notification of the need to bill the customer. ä Documents in the shipping activity file are typically ordered numerically to allow a completeness check to identify missing documents or documents used out of order.

12.  The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Bill Customer n Upon notification of shipment, the Billing Department pulls and reviews the sales order from the temporary file to make sure the products should have been shipped. They also review the shipping notice to verify that the goods have been shipped and that the transaction meets the definition of a sale for accounting purposes. n The Billing Department prepares a sales invoice by adding prices to the data found on the sales order document. n A copy of the sales invoice serves as the source document for recording the transaction in the sales journal. n The total amount of the group of sales invoices for a period of time is summed to calculate a batch control total. n The batch control total is used to prepare a journal voucher document n The journal voucher document is sent to the General Ledger Department for posting to the general ledger A copy of the sales invoice is sent to the customer (as their bill). A copy of the sales invoice is sent to the Accounts Receivable Department to record in the accounts receivable subsidiary ledger, and the picking slip or packing slip is sent to inventory control to update the inventory subsidiary ledger.

13.  The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Information Processes n The Accounts Receivable Department uses a copy of the sales invoice to record invoice amounts in the customer’s account in the accounts receivable subsidiary ledger. n The Inventory Control Department reduces inventory balances in the inventory subsidiary ledger (for companies that use a perpetual inventory system) and assigns the goods sold to cost of goods sold. n The General Ledger Department uses the journal voucher to record the total sale as a debit to Accounts Receivable and as a credit to Sales in the general ledger.

14.  The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Receive Payment n At this point, the company waits for the customer to return payment. n Often the sales invoice includes an additional page to be returned wit the payment, called a remittance advice, lists the customer’s name, account number, and balance due. n Generally, two people are assigned to open the mail to reduce employee fraud or theft. n The employees document the payments by completing a batch remittance list that lists the source of each check and its amount. n The amount of the check is compared with the amount on the remittance advice to verify their equality and the check is restrictively endorsed “for deposit only”.

15.  The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Information Processes n A copy of the batch remittance list is sent, along with the checks, to personnel in the Cash Receipts Department. n A deposit slip is prepared to deposit the checks in the bank. The batch remittance list is used as a source document to record the cash received in the cash receipts journal. The totals are used to prepare a journal voucher that is sent to the General Ledger Department to update (increase) the General Ledger Cash account and (decrease) the General Ledger Accounts Receivable control account. n The batch of remittance advices is sent to the Accounts Receivable Department where the customer's subsidiary ledger is updated to reflect the payment. The remittance advices are placed in customer files to document the customer payment. A copy of the batch remittance list is also sent to the controller to reconcile total remittances for the day to the bank deposit amount (recorded on a validated deposit slip obtained from the bank).

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