Documents in the Revenue Cycle List Example

Documents in the Revenue Cycle List Example Documents in the Revenue Cycle List – Coursework Example Accounting Internally and Externally generated documents in the revenue cycle list are as under: Internally Generated Documents Sales Order SalesInvoice Credit Memo Picking Ticket Packing Slip Monthly Statement Remittance List Externally Generated Documents Customer Order Bill of Lading Remittance Advice 2. Internally Generated Document No. of Copies & Departments where the copies are sent Purpose of each copy Sales Order Copies Required: 3 1.Accounts Department 2 Warehouse and Shipping department 4.Customer 1.For Preparing Sales Invoice and authorizing customer credit 2.Preparing Shipping Advice, Stamping with date of shipping, and Releasing goods to carrier 3. Confirmation of order Sales Invoice Copies Required: 3 1.Customer 2.Book keeper 3.Accounts Department copy 1Copy to customer along with delivery through carrier 2.For matching with confirmed sales order from customer 3. For recording sales in books through sales journal, Credit Memo Copies Required: 2 1 Book Keeper 2. For Record 1. To prepare Sales Invoice on basis credit memo report of customer. 2. For future reference Picking Ticket Copies Required: 2 1. Warehouse 2. Shipping Department 1. For picking and making entries in stock bins & registers 2. For delivering goods to carrier. Packing Slip Copies Required: 3 1. Customer 2. Accounts Department 3. Warehouse 1. Along with delivery through carrier 2. To contra check quantity of goods sold with invoice 3. For goods issued for sales recording in stock registers Monthly Statement Copies Required: 2 1.Credit Control department 2.Management 1. For reminders to delayed accounts receivables 2.As a periodic report for management decision making Remittance List Copies Required: 2 1.Collection Department 2. Accounts Department 1. To be prepared by collection department for posting in Cash Rec. Journal and counter checking of bank deposit slips. 2.For posting in Subsidiary Accounts Receivable ledger 3. In the present business scenario, manually created revenue cycle documents slow down the revenue cycle operations and that may create a number of financial problems emerging from delayed recoveries from accounts receivables. â€Å"Internet and ERP have injected many changes in the revenue cycle. Sales Orders arrive on web. In the cases sales orders that need credit decisions in few minutes, web based services offer automation of the entire credit approval process.† (Ashotosh Deshmukh, 2005)1. But sometime automations become inefficient say when customers’ credit worthiness is judged merely on the basis of credit points stored in a system. There is always a need control to maintain a standard Basic objective of control over electronic forms is that accurate data should be available when needed, and all revenue cycle activities be performed efficiently and effectively. For effective control over electronic documentations in the revenue cycle operations the following proce dures should be considered: Further processing on Sales orders should be done only on verification that required goods are available. Sales Order processing should be automated as per batch technology and real time technology. Sequential number to Sales orders, Sales Invoices and Credit Memos generated through electronic system should be assigned by the system itself. Regular file backups, file labels, modification of default settings on ERP systems, encryption etc. are the basic control features of electronically operated revenue cycle. Under electronic system, though customer’s credit is approved as per criteria decided by the Credit Manager and programmed into the system, final approval should be manually done by the Credit manager after generation the hard copy of the Credit memo by the system. In other words there should be some manual control in approval of customer credit history. Electronic Fund Transfer (EFT) should be encouraged instead of receiving cheques and pay orders from Accounts receivables. This will eliminate the mistakes and frauds occurring at the stage of maintaining and operating remittances related documents, like remittance lists and passing of accounting entries on basis of those documents.