CHAPTER 4 Flashcards
include the tasks involved in receiving and processing a customer order, filling the order and shipping products to the customer, billing the customer at the proper time, and correctly
accounting for the transaction.
Sales order procedures
The sales process begins with the receipt of a _____ indicating the type and
quantity of merchandise desired.
customer order
captures vital information such as the customer’s name, address, and account number; the name, number, and description of the items sold; and the quantities and unit prices of each item sold.
sales order
is not in a standard format and may or
may not be a physical document.
customer order
identifies the items of inventory that must be located and picked from the warehouse shelves
stock release document
Before the arrival of the goods and the verified stock release document, the shipping department receives the _____ and ______ from the receive order function
packing slip and shipping notice
ultimately travel with the goods to the customer to describe the contents of the order
packing slip
forwarded to the billing function as evidence that the customer’s order was filled and shipped
shipping notice
a formal contract between the seller and the shipping company (carrier) to transport the goods to the customer.
bill of lading
is the customer’s bill, which formally depicts the charges to the customer
sales invoice
is a special journal used for recording completed sales transactions
sales journal
represents a general journal entry and
indicates the general ledger accounts affected.
a journal voucher
When items are returned, the receiving department employee counts, inspects, and prepares a _____ describing the items.
return slip
the authorization for the customer to receive credit for the merchandise returned
credit memo
contain information needed to service individual customers’ accounts. This includes payment date, account number, amount paid, and customer check number.
remittance advices
a form where all cash received is logged
remittance list
All cash receipts transactions, including cash sales, miscellaneous cash receipts, and cash received on account, are recorded in the
cash receipts journal
are sequentially numbered by the printer and allow every transaction to be identified uniquely
Prenumbered documents
shows the status of customer orders
Open sales order file
specifies orders shipped during the period
shipping log
provides customer credit data
credit records file
contains open orders not yet shipped or billed
sales order pending file
contains customer orders for out-of-stock items
Back-order file
is a compilation of all journal vouchers posted to the general ledger
journal voucher file
what are the two subsidiary ledgers used for capturing transaction event details in the revenue cycle
Inventory
AR subsidiary ledgers
are the basis for financial statement preparation.
general ledger control accounts
prevent and detect unauthorized and illegal access to the firm’s assets
access controls
to verify the accuracy and completeness of tasks that other functions in the process perform.
independent verification
are a fundamental component of the framework for viewing technology innovations.
manual systems
involves using technology to improve the efficiency and effectiveness of a task
Automation
involves radically rethinking the business process and the work flow
Reengineering
are used extensively in grocery stores, department stores, and other types of retail organizations
Point of Sales (POS) systems
was devised to expedite routine transactions between manufacturers and wholesalers and between wholesalers and retailers.
electronic data interchange (EDI)
are the basis for financial reporting and many internal decisions
digital journals and master files
