Revenue/Receipts—Sales

Question 1

What’s the general flow look like for sales?

Answer 1

Sales Order (PO received) > Shipping docs > Sales Inv (billing) > Record sales in Sales Journal > Post the month’s sales to GL

Question 2

What are the objectives of internal controls in Sales?

Answer 2

1 Goods and services are provided in accordance with management’s authorization
2 Terms of sale (including prices and any discounts) are in accordance with management’s authorization
3 Credit terms and limits are properly established
4 Deliveries of goods and services result in accurate and timely billings
5 Any sales-related discounts and adjustments (including returns) are in accordance with management’s authorization