1. AIS Accounting information system A Business process approach FREDERICK L. JONES DASARATHA V. RAMA

2. The Revenue Cycle. Ch 11 Supervise: D. Amal Fouda By : Amani Saad Al-Jadhee ID: 428220075

3. Revenue Cycle 1.Respond to customer inquiries. 2.Develop agreements to provide goods and services in the future. 3.Provide services or ship goods. 4.Recognize claim for goods and services provided. 5.Collect cash. 6.Deposit cash in the bank. 7.Prepare reports.

4. Alternative revenue cycle systems Alternative ordering method: 1.Order before delivery Alternative payment timing 1.After delivery Alternative forms of payment 1.Sales on account

5. Revenue Cycle Menu A.Maintain : 1- customer 2- inventory B. Record event : 1- enter sales order ( E1) 2- enter shipment (E3) 3- enter sales invoice(E4) 4- enter collection(E6) 5- enter deposit (E7) c. Process data: 1- post 2- purge record D. Display/print report. Documents (single entity report) 1- sales order, picking ticket, and packing slip (E1)

6. Revenue Cycle Menu 2- sales invoice (E4) 3- customer statements Event reports : 4- new customer order report 5- sales journal 6- cash receipt journal Agent and resource reference lists : 7- customer list 8- inventory list Summary and detailed status reports for agent and resource : 9- open customer order report 10- aged account receivable-detail 11- aged account receivable-summary 12- quantity sales by product- summary E- query: 1- query events 2- query customers 3- query inventory F – EXIT

7. File maintenance:: 1.Customer 2.Inventory

8. File maintenance:: A1

9. customer table ( master table) customernameaddr ess Conta ct- perso n Tele- phone G/L sales Cre dit- limit Balan ce due 3451educ ate fairh aven Costa50888 84531 4000120 00$ 0 $

10. Using customer file maintenance Plays important role in reducing risks.. Credit limit risk of not collecting cash Storing reference data efficiency &accuracy

11. Maintain Inventory

12. Inventory table ( master) ISBNauth or titleDefa ult- price Q- in han d Q- allo cate d GL- sales GL- COGS YTD -Q- sol d Bud get- sales -Q 0- 256- 125 967 Barn es intr odu ctio n 78.3 5 0040005210300

13. Accept Order ( E1):

14. Sales order Table/ sales_ Order_ detailed table Order # DateEmployee# Order entry clerk Customer # 21905/ 11/ 03 201- 35- 89213451 OrderISBNOrder - QQ-shippedprice 219025612596715078.35$ 21901461897641070.00$

15. Pick and ship goods (E2,E3)

16. Records created 1- Update sales order detail table and Inventory Table. 2- records : shipment table Shipment # Order # DateEmployee# warehouse Employee # shipper Freight 8312195-11- 03 54089540302740013 0 3$

17. Shipment- detail table Shipment#ISBNQ- shippedQ- invoiced 8310256125967140 831014618976410

18. Bill Customer (E4) QUERY: unbilled shipment The accounts receivable clerk uses the systems query function and display a list of all shipping detail records that show a quantity- invoiced that is less than quantity-shipped

20. Invoice # Ship ment # Invoi ce date Due- Date Original Amount Amou nt Paid Post date G/L post date 30038315-12- 03 6-11- 03 116990 $ 0$ Sales –invoice Table

21. Sales-Invoice-G/L-Detail Table Invoice#G/L AccountAmount 30031050116990$ 30034200)$3.00) 30034000$(116690) 30035210$732.00 30031120$ (732.00)

22. Sales invoice The account receivable clerk select menu item D2 until all of unbilled shipping records have been invoiced.

23. Collect Cash(E5)

24. Record Collection(E6)

25. Payment # dateEmploy ee( AR clerk) AmountPost- Date G/L post date Dep osit# 40035- 19- 03 031429 517 619990 Cash-Receipt Table/ Detail Table Payment#Invoice#Amount 400330031169.90 400330525030.00

26. Cash-Receipt- G/L-Detail Table Payment#G/L Account#Amount 400310006199.90 40031050(6199.90) Select menu item D6 to print cash receipts journal ( print only unposted cash receipts ) Posting the record menu item C1 putting post date in cash receipts record and putting amount paid in sales inventory table. Update G/L account

27. Deposit Cash (E7)

28. Deposit#dateEmployee# cashier Amount 5035-19-033918702027199.0 Deposit table

29. Reconcile Cash (E8) 1.Daily, the controller compares the amount on the deposit slip to the amount on cash receipts journal. 2. additional Control : A- comparison of the deposit slip to communication from bank B- compare an accounts receivable ledger report to the accounts receivable balance in the general ledger.

30. Monthly Activities Send customer statement (D3) 1.Open item system: All records for unpaid invoices must be stored on line 2. Balance forward system : e.g. electricity and telephone bills Balance forward system for accounting modules 1. general ledger 2.Bank statement

31. Monthly Activities Print Account receivable Aging Report Provide an audit trial for the auditor who is trying to verify the amount of accounts receivable reported in a balance sheet Purge Records A- Open item system: records related to the paid invoices can be archived and then deleted B-Balance forward system: all records except a Balance –Forward field in the customer record.

32. Other Type of Revenue Cycles 1.Cash and carry : to controls: Cash register Giving the customer a receipt Daily sales report 2. Credit card sales : Little risk

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