CHAPTER 9 Flashcards
Modern systems design embraces _______________ to
radically RESHAPE business processes and workflow. Its objective is to reduce business processing costs by identifying and eliminating non value-added tasks.
Reengineering
The sales process begins in the sales department with the receipt of a __________________ indicating the TYPE and QUANTITY of merchandise being requested.
Customer order
Captures such vital information as the NAME and ADDRESS of the customer; the customer’s account number; the name, number, and description of the items sold; the quantities and unit prices of each item sold; and other financial information such as taxes, discounts, and freight charges.
Sales order
After preparing the sales order, the sales clerk files one copy of it for FUTURE REFERENCE.
(coof)
Customer Open Order File
involves verifying the customer’s CREDITWORTHINESS.
Transaction Authorization
copy of the sales order is sent to the CREDIT department for APPROVAL.
Credit authorization
This document identifies the items of inventory that must be located and picked from the warehouse shelves.
Stock release (Picking ticket)
documents are copies of the sales orders that contain ACCURATE information about the number of units shipped and information about the carrier.
Keypunch / Data entry
are calculated for each BATCH on the file.
Batch Control Totals
is the FIRST RUN in the batch process. This program validates transactions by testing each record for the existence of clerical or logical errors.
Edit program
physically ARRANGES the sales order transaction file sequentially by Account Number, which is one of its secondary keys.
Sort Run
posts to accounts RECEIVABLE by sequentially matching the Account Number key in each sales order record with the corresponding record in the AR- SUB master file.
AR Update Program
To spread the BILLING TASK evenly over the month, some firms employ cycle billing of their customers.
Cycle Billing
play a key role in helping MANAGEMENT monitor operations to ensure that controls are in place and functioning properly.
Quality Management Report
separates the checks and remittance advices and prepares a remittance list.
Mailroom
reconciles the checks and the remittance list and prepares the deposit slips.
Cash Receipts Department
Order Entry Procedures [SWS]
- Sales Procedures
- Warehouse Procedures
- Shipping and Billing
An order entry procedure which SALES CLERKS receiving orders from customers and process each transaction separately as it is received
Sales Procedures
The WAREHOUSE CLERK’S terminal immediately produces a hard copy printout of the electronically transmitted stock release document.
Warehouse Procedures
The SHIPPING CLERK reconciles the goods, the stock release document, and the hard copy packing slip produced on the terminal.
Shipping and Billing
This system is a departure from TRADITIONAL accounting. A central feature of the system is the use of an events database.
Real-Time Processing
4 Advantages of Real-Time Processing
- Real-time processing greatly shortens the cash
cycle of the firm. - Real-time processing can give a firm a
competitive advantage in the marketplace. - Manual procedures tend to produce clerical
errors, such as incorrect account numbers,
invalid inventory numbers, and price–quantity
extension miscalculations. - Real-time processing reduces the amount of
paper documents in a system.
are used extensively in GROCERY stores, department stores, and other types of retail organizations.
POS Systems
This is what the clerk SCANS on the items being purchased with a laser light scanner.
Universal Product Code (UPC)
