Revenue and Receipt Cycle
Activity
1. Order
Documents
Sales Order - a document
that indicates the items
ordered, quantities, prices
and salesperson
§ § § § Threats
Incomplete or inaccurate
customer orders
Sales to customers with
poor credit
Orders that are not
legitimate
Stock outs, carrying costs
and mark downs
2. Delivery or
Shipping
Picking Ticket - printed by
sales order entry to trigger
the pick-and-pack process;
indicates which product to
pick and how many
Packing Slip - lists the
quantity and description of
each item in the shipment
Bill of Lading - a legal
contract that defines
responsibility for goods in
transit
§ Shipping errors
§ Theft of inventory
3. Billing
Sales Invoice - document
that notifies the customer of
the amount to be paid (a.
open-invoice with turnaround
document or remittance
advice; b. balance forward or
statement of account)
§ Failure to bill customers
§ Billing errors
§ Errors in maintaining
customer accounts
4. Collection
Check and Remittance Advice § Theft of cash
- a document sent by a
customer to a seller,
informing the seller that an
invoice has been paid