Sales and Receipts

Question 1

Cycle: Sales and Receipts

Answer 1

1. Accept and Process Order
2. Granting of Credit
3. Despatch goods
4. Invoicing (Accounting division)
5. Recording (Accounting division)
6. Receive money

Question 2

1. Accept and Process Order

Answer 2

1. Sales Order Clerk
   - SALES ORDER:
   
   • details of the purchaser,
     description & amount
     - Record:
   • Customer
   • Warehouse
   • Invoicing
   • Sales division
2. Sales/Credit manager
   Authorise: checks details of the document
   Independent review: Needs to check the work of the sales clerk

Question 3

2. Granting of Credit

Answer 3

1. Sales/ Credit manager

New client:
Credit application and approval
Credit checks →credit limit

Existing client:
Available credit vs outstanding balance
Additional credit→ credit checks

2. Finance manager
   Authorise: Checks details of the document
   Independent review: Needs to check the work of the sales clerk

Question 4

3. Despatch goods

Answer 4

1. Store man (get inventory ready)
   DELIVERY NOTE:
   - date of dispatch, customer, address description
   - QUALITY
   - QUANTITY
   - DESCRIPTION

Record:
- Sales division
- Client sign 1 copy & sent back (copy 3 goes to accounting)
- Inventory records
- Warehouse

2. Head Store man
   Authorise: checks details of the document
   Independent review: Needs to check work of store man

Question 5

4. Invoicing (Accounting division)

Answer 5

1. Invoice Clerk
   SALES INVOICE:
   details of customers, sales transactions, amount owing (Px Q), payment conditions

Record:
Sales division
Customer
Warehouse

2. Senior Invoice clerk

Authorise:
* authorised price list
Independent review:
- quantity agrees to a signed delivery note
- check accuracy + (VAT)
- compare invoice, signed delivery note & sales order

Question 6

5. Recording (Accounting division)

Answer 6

1. Debtor Clerk
   ACCOUNT/ MONTHLY STATEMENT: (summary of invoices, payments & discounts for the month & month end balance)
   Record: Customer and Accounting
   SOD: Invoicing, posting to ledgers and monthly statement
2. Debtor manager
   Authorise: Check the work of the Debtor Clerk
   Reconciliation:
   - Reconcile debtor’s ledger to trade
   receivables*
   - End of month

Question 7

6. Receive money

Answer 7

1. Cashier (CASH RECEIPTS)
   Receipt= (details of payee, date & amount)
   Record: Customer, Cashier, CRR, Accounting division – Either receipt or CRR (Cash Reserve Ratio)
2. Security:
   Chief Cashier/controller review cash up and completes deposit slip