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Revenue and receipts cycle
Transcript of Revenue and receipts cycle
RECEIVING AND RECORDING PAYMENTS FROM DEBTORS
ACCESS THE ORDER SYSTEM
1. All incoming sales orders directed to telesales order clerk.
2. Write access to sales order module restricted to order clerks.
3. Order clerk's 'read only' access to debtors masterfile and inventory masterfile.
4. Taking of orders restricted to dedicated telesales area.
IDENTIFYING AND AUTHENTICATING THE CUSTOMER
1. Order clerk request customer's account number and key it in. If valid, the details of the customer will appear on the screen.
2. Order clerk should then request caller to provide other info which has appeared on screen to authenticate the customer.
3. If the account number is a match to the debtors masterfile, the system will allocate a unique transaction number which will identify the sales order as it progresses through the system.
4. If the customer does not have a account, he will be referred to the credit management department.
5. When order clerk receives message that account is on hold, customer should be referred to the credit controller.
ENTERING AND CONFIRMING THE DETAIL OF THE ORDER
1. The following programmed controls should be in place:
: screen will be formatted as a sales order
: e.g. entering the inventory code will bring up the description and price
: e.g. to progress with the order a number must be entered
: e.g. on the quantity field
: e.g. on the quantity field, if applicable
: will require the order clerk to confirm details of the order and other important details.
2. Fields on the 'on screen sales order' which cannot be changed by the order clerks, are shaded and will not react when clicked on.
3. System will allocate a customer reference number to every sales order which is given to the customer at the time of placing the order.
CHECK INVENTORY AVAILABILITY
1. The order clerk will have 'read only' access to the inventory file. He needs this because he must be able to answer customer queries about availability, alternative products, selling prices etc.
2. If the goods are not available, the order will be placed on a
back order file
if the customer agrees.
RECORD ALL MASTERFILE AMMENDMENTS
ENTER ONLY AUTHORIZED MASTERFILE AMMENDMENTS ONTO THE SYSTEM ACCURATELY AND COMPLETELY
REVIEW MASTERFILE AMENDMENTS TO ENSURE THEY OCCURRED, WERE AUTHORIZED AND WERE ACCURATELY AND COMPLETELY PROCESSED
OBTAIN HARD-COPY PICKING SLIP
MOVE PICKED GOODS + SLIP TO TRANSITION AREA
CORRECT + APPROVE
SLIP ON SYSTEM
MOVE GOODS + SLIP TO DISPATCH AREA
FINAL CHECK OF GOODS BEFORE CREATING THE INVOICE
CREATING THE INVOICE
GOODS ARE DELIVERED TO THE CUSTOMER
SALES ORDERS ON THE PENDING SALES ORDER FILES
ACCESSING THE BACK ACCOUNT
ACCESSING THE DOWNLOADED BANK STATEMENT ON THE SYSTEM
PROCESSING THE RECEIPT
GRANTING OF CREDIT TERMS AND LIMITS
ADDING THE NEW CUSTOMER TO THE DEBTORS MASTERFILE
APPROVING SALES ORDERS ON THE SALES PENDING FILE
APPROVING DISCOUNT (RECEIPTS PENDING FILE)
CREDIT NOTES AND JOURNAL ADJUSTMENTS
DAY TO DAY MANAGEMENT (REPORTS)
1. Once all details of the order have been entered, the computer will instantly calculate the total value of the sale, add it to the balance on the debtor's account and compare this total to the debtor's credit limit.
2. At the same time the system will check whether the debtor is in breach of his credit terms.
3. If there are no problems with the order, it will be placed on the sales order file to await the picking process in the warehouse/dispatch.
4. Some systems may give order clerk authority to override the control which prevents a sales order which pushes the customer past his credit limit.
Picker ticks picked goods off
If goods available < goods required,
then only enter actual quantity
Picker signs slip.
Admin clerk accesses sales order from terminal in warehouse.
Print a sales order = picking slip
Code attached to sales order on system --> this tracks status; prevents re-picking.
Picking control clerk checks goods against slip.
Mistakes --> go back to warehouse with picker, get right amount/ confirm unavailability of short-picked items.
Control clerk signs slip.
Control clerk has restricted access to picking slip/sales order file on system (write-only access to quantity field).
Read-only access to : management, warehouse staff and the despatch controller.
No access to pickers.
Control clerk accesses slip on system and enters actual quantity picked.
Adjustments should be logged by PC
Provide physical protection to goods.
1. Picking slip file (Read only) accessed by despatch controller.
2. Select the corresponding picking slip (transaction #) - screen shows formatted picking slip.
3. Compare + +
4. Any errors resolved by picking control clerk.
5. Confirm that slip is signed by picker +
6. takes place as packed for despatch.
1. = approves - screen formatted as invoice
hard copy is printed label is printed & and stuck on
Invoice is transferred from picking slip file account masterfiles are updated
2. Restricted to (user profile)
3. No write access to Invoice file.
1. Customer delivery note
Any delivery problems noted on
2. filed in Despatch section ( )
These sales / by credit controller
Credit application must be submitted. Banking details, financial information and trade reference must be included.
Assessment of the applicant’s credit ratings should be followed up with bureaux which includes Transunion or Credit Secure
Password (supplied on registration with the bureau) protection to the bureaux site only know by credit controller and his assistant.
The applicant’s bank is responsible for the credit rating
The company should have guidelines such as:
credit terms e.g. 30/60 days
initial credit limits (reviewed as relationship with customer develop)
handing over a debtor who has not paid (credit controller will negotiation with debtor to pay before handing over to outside party)
handing to a credit agency after 90 days
handing to a lawyer for large amounts outstanding over 120 days
The credit controller and financial manager should agree about credit terms and limits according the company policy
The credit application form will include the terms and limits signed by the credit controlled and financial manager.
Masterfile amendment and
the necessary controls
For the MAF the credit
application form will be the
The credit controller is the only one to approve a
sale order on the pending sales order file.
First contact the client to discuss the matter and then make a decision to approve or not.
Debtor's account history (previous invoices, payments, current balance, days outstanding, previous payment issues) can be read by the credit controller (and assistant).
The financial manager follows up and logs all approvals.
The customer is notified if a pending order is not approved. The sale remains on the pending file until the customer resolves the matter.
After approving the sales order it is transferred to the sales order file and processed in the normal manner.
The credit controller approves early settlement discount taken by a debtor.
Discount should only be given if it is in line with terms and conditions applicable:
early settlement terms have been satisfied
discount amount is
The financial accountant reviews the report with all discount approved.
Suitable senior personnel approves supporting documentation to prepare credit notes and adjusting journal entries.
The credit controller approves all credit notes and journal entries which effect debtors.
Restriction to any credit note or journal entry should be done in the conventional manner, i.e. user profile.
The financial accountant should review the report of credit notes passed indicating the reason they were given weekly.
A monthly debtors statement should be prepared by the debtors department for each debtor. Stating the debtor's account in the debtor's masterfile.
Details of all invoices, credit notes, receipts, journal adjustments should be included and amount owed in days outstanding.
Sent or email debtors statement to debtors.
Analysis of information can be carried out on the system and made available with modern software.
These reports should be used by the credit management function. Such as:
new accounts opened
changes to terms and credit limits for individual debtors
debtors exceeding their credit terms and limits
debtors payment patterns, etc.
Bank statements should be downloaded each working day so that receipts can be processed and debtors ledgers are up to date.
Debtors should be regularly reminded to:
Clearly reference their EFT payments when effecting the transfer
Submit a remittance advice to the debtors section
When receipts on the bank statements are processed, the senior debtors clerk will work with references on the bank statement and remittance advice.
The invoice number is the "hook". On entering the invoice number, the system will match the invoice number and amount to the file of unpaid invoices and if it finds a match, the debtors account will come on the screen.
The debtors clerk will select the enter option, and the system will update the debtors account in the debtors masterfile and cashbook records, as well as the file of unpaid invoices.
Any unmatched receipts will be processed to a "receipt suspense file", until the problem can be resolved.
Removal from the "receipt suspense file" will be restricted to the senior debtors clerk.
Receipts with matching invoice numbers, but different amounts will be written to a "receipt pending file".
The credit controller should access this file on a daily basis to determine whether the discount can be approved. Authority should be restricted to the credit controller.
If discount is approved, the receipt will be processed
1. All amendments must be recorded on a hard copy MAF
2. MAF: (i.t.o document design principles)
1. Signed by 2 senior employees
2. Cross referenced to supporting documentation
1. Restrict write access to a spesific member (ID & password)
2. All amendments automaticly logged on sequenced logs without any write access.
3. Implement screen aids & programme checks.
* Minimum keying of info.
* Screen formatting
* Account number for new debitor generated by the system.
* Matching checks to validate a debitor account number against the masterfile.
* alphanumeric checks.
* Range, limit & data checks on terms and credit limit fields.
* Field size and missing data check.
* Sequenced check on MAF.
* Dependencey check.
1. Logs reviewed by a senior member.
2. Check sequence of logs itself.
3. Each logged amendment should be checked to confirm supporting MAF.
4. Each logged amendment`s details are correct.
5. MAF should be sequence checked against the log.
1. Read only access will be granted only to those who need to work with the bank statement.
-The ability to process a receipt should be restricted to the senior debtors clerk.
1.The banks software will be loaded onto the senior debtors clerk's terminal.
will have to be entered to gain access of the companies bank account.
3. Once logged in, the clerk will choose the " download bank statement " option.
General access controls apply throughout the process.