Revenue Cycle

Question 1

What is the first document created in the revenue cycle?

Answer 1

The Purchase Order (Received from customer)

Question 2

What document is created after the Purchase Order?

Answer 2

Sales Order (Is in response to purchase order)

Question 3

Which departments get the Sales Order

Answer 3

Billing (If new customer, will also do a credit check)
Warehouse
Shipping

Question 4

What is the process after the three departments get the Sales Order?

Answer 4

Warehouse releases good to Shipping
Shipping prepared Bill of Lading
-Gives 1 to Customer; Gives 1 to Billing

Question 5

What does Billing do once it gets the Bill of Lading?

Answer 5

Prepares Sales Invoice, which goes to

• Customer
• Keep Copy
• Accounting

Question 6

What does Billing include with the Sales Invoice?

Answer 6

A remittance advice

Question 7

What does the customer send with payment?

Answer 7

The remittance advice with check

Question 8

What is done when payment is received from the customer

Answer 8

Endorse check, create remittance listing
Check and listing goes to one person for deposit
Remittance listing goes to another for recording

Question 9

What is the final document in the Revenue Cycle?

Answer 9

Bank Reconciliation (Comparison)

Question 10

What parts of ARCC are covered by the documents from the Revenue Cycle?
Sales Order
Bill of Lading
Sales Invoice
Remittance Advice
Check
Remittance Listing
Bank Reconciliation

Answer 10

Sales Order: Authorization
Bill of Lading: Custody
Sales Invoice: Recording 
Remittance Advice: Recording
Check: Custody
Remittance Listing: Custody and Recording
Bank Reconciliation: Comparison