Overview of the
Revenue Cycle
September 25, 2015
Documents in the Revenue Cycle
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Credit Application
Price List
Sales Order
Order Acknowledgement
Picking Ticket (Filling ticket, etc.)
Packing Slip (Picking ticket? Filling ticket?)
Bill of Lading (Shipping Manifest)
Shipping Advice
• Billing Invoice
• Statement of Account
• Dunning Notice
• Remittance Advice
• Customer Check
• Deposit Slip (deposit ticket)
• Deposit Receipt (Cash Report)
• Bank Statement
Documents in the Revenue Cycle
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•
•
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•
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Credit Application
Price List
Sales Order
Order Acknowledgement
Picking Ticket (Filling ticket, etc.)
Packing Slip (Picking ticket? Filling ticket?)
Bill of Lading (Shipping Manifest)
Shipping Advice
• Billing Invoice
• Statement of Account
• Dunning Notice
• Remittance Advice
• Customer Check
• Deposit Slip (deposit ticket)
• Deposit Receipt (Cash Report)
• Bank Statement
Documents in the Revenue Cycle
• Credit Application
• Price List
• Order Acknowledgement
• Picking Ticket (Filling ticket, etc.)
• Shipping Advice
• Deposit Slip (deposit ticket)
• Deposit Receipt (Cash Report)
• Bank Statement
Job Titles in the Revenue Cycle
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Sales Manager
Credit Manager
Sales Rep – Customer Service
Order Filling (production, warehouse, etc.)
Shipping
Billing
Accounts Receivable
Cashier (Treasurer’s office)
Collections Clerk
Controller (bank reconciliation clerk)
Sales Manager
Sales Rep
Customer
Sets
Selling Prices
Credit
Application
Price List
Credit Manager
Outside Credit
Sources
Credit
Check
Credit
Approved?
Product
Master File
Credit
Application
No
Yes
Cust
Master File
Sets up
Customer
Credit
Application
Sales Manager
Sales Rep
Customer
Sets
Selling Prices
Credit
Application
Price List
Credit Manager
Outside Credit
Sources
Credit
Check
Credit
Approved?
Product
Master File
Credit
Application
No
Yes
Customer
Master File
Sets up
Customer
Credit
Application
Sales Manager
Sales Rep
Sets
Selling Prices
Negotiates
Sale
Customer
Customer’s
PO
Price List
No
No
Standard
Price?
Yes
Sales Mgr
Approval?
Order
Acknowledgement
Obtain and
enter
Sales Order
Yes
Product
Master File
Customer’s
PO
Open
Sales
Orders
P.2
Customer
Master File
P.1
Warehouse
Open
Sales
Orders
Next Morning
Print
Picking
Tickets
Picking
Ticket
(2 copies)
Pick,
Pack
Mdse
Picking
Ticket
(2 copies)
P.3
P.2
Picking
Ticket
(2 copies)
Shipping
Billing
Enter Shipping
Data
Bill of Lading
(1 copy)
Picking
Ticket
(1 copy)
Open
Sales
Orders
Signed Copy
Bill of Lading
Picking
Ticket
(1 copy)
Print
Invoices
A/R
File
Signed Copy
Bill of Picking
Lading
Ticket
(1 copy)
Sales Summary
Invoice
Carrier’s Driver
Sales Manager
Customer
Lockbox
Bank
Deposit
Slip
(original)
Lockbox
Procedures
Checks
Customer
Check
Remittance
Advice
Remittance
Advices
Deposit
Receipt
Deposit
Slip
(copy)
Cash Report
Accounts
Receivable
Controller
Accounts
Receivable
Controller
Remittance
Advices
Cash Report
Deposit
Receipt
Deposit
Slip
(copy)
A/R
File
Enter
Payments
Cash Receipts
Journal
Totals
Match?
No
Yes
Accounts
Receivable
Controller
Remittance
Advices
Cash Report
Deposit
Receipt
Deposit
Slip
(copy)
Cash Receipts
Journal
No
Totals
Match?
Yes
Controller
Cash Report
Deposit
Receipt
Bank
Cash Receipts
Journal
Bank
Statement
Bank
Reconciliation
Bank
Statement
Cash Receipts
Journal
Deposit
Receipt
Cash
Report
Reconciliation
Report
Course Requirements
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Learn the Documents
Learn the Job Titles
Learn the Information Flows
THINK about what each document is
doing!
Another Revenue Example
Review
• Meet with your group and review:
– Purchasing Cycle
– Revenue Cycle
– Flowcharting
• Master…
– Documents
– Job Titles
– Flowcharting
Homework Assignment 10
• Individual Reading: Dr. Russell’s practice
• Individual Practice: Flowchart
• Group: Discuss and Review Dr. Russell’s situation
• Group: Compare flowcharts
• Group: Develop a “Group” flowchart
Bring 2 copies of your group flowchart to class Wed Sep 30