chapter 14 Flashcards
What is the first document in the revenue cycle?
Customer’s purchase order
Externally generated document received by the Sales Order Department
Who receives a copy of the customer’s purchase order?
Sales Order Department
This document is discussed in detail in Chapter 15.
What is the second document in the revenue cycle?
Sales order
Internally generated document with multiple copies distributed.
List the departments that receive copies of the sales order.
- Sales Order Department
- Inventory Control
- Shipping Department
- Billing Function or Accounts Receivable
- Customer
What is the purpose of the copy of the sales order received by the Inventory Control?
To help generate picking ticket
This could be a modified copy of the sales order.
What is the third document in the revenue cycle?
Back order
Internally generated document with copies distributed.
Who receives copies of the back order?
- Sales Order Department
- Customer
- Production Department or Purchasing
What is the fourth document in the revenue cycle?
Picking ticket
Internally generated document based on sales order information.
Who generates the picking ticket?
Inventory Control
They keep a copy for their records.
What is the fifth document in the revenue cycle?
Packing slip (aka packing list)
Internally generated document for shipping.
Who receives copies of the packing slip?
- Shipping Department
- Billing/Accounts Receivable
- Customer
What is the sixth document in the revenue cycle?
Bill of lading
Externally generated if a carrier is used.
List the recipients of the bill of lading.
- Carrier
- Customer
- Shipping Department
- Billing Function or Accounts Receivable
True or False: The number of copies and recipients of documents in the revenue cycle can vary.
True
Based on a clear separation of duties.
Fill in the blank: The __________ is generated by the Sales Order Department as a result of sales order entry.
sales order
What is the purpose of the billing function in the revenue cycle?
To generate sales invoice
This function may involve updating accounts receivable.
