1. Overview of the Revenue Cycle September 25, 2015

2. Documents in the Revenue Cycle 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

3. Documents in the Revenue Cycle 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

4. 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

5. Job Titles in the Revenue Cycle 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 )

6. Sales Manager Customer Yes No Sets Selling Prices Price List Credit Application Credit Manager Credit Check Credit Approved? Sets up Customer Credit Application Credit Application Cust Master File Outside Credit Sources Product Master File Sales Rep

7. Sales Manager Sets Selling Prices Price List Customer Credit Application Credit Manager Credit Check Credit Approved? Yes No Credit Application Sets up Customer Credit Application Customer Master File Outside Credit Sources Product Master File Sales Rep

8. No Sales Manager Sets Selling Prices Price List CustomerSales Rep Negotiates Sale Standard Price? Yes Obtain and enter Sales Order Customer Master File Sales Mgr Approval? Open Sales Orders Yes No Product Master File Order Acknowledgement P.2 Customer’s PO Customer’s PO

9. Next Morning P.1 Open Sales Orders Warehouse Print Picking Tickets Picking Ticket (2 copies) Pick, Pack Mdse Picking Ticket (2 copies) P.3

10. Bill of Lading (1 copy) Picking Ticket (2 copies) P.2 Shipping Enter Shipping Data Open Sales Orders Picking Ticket (1 copy) Carrier’s Driver Signed Copy Bill of Lading Picking Ticket (1 copy) Billing Print Invoices Invoice Customer Sales Summary Sales Manager A/R File Signed Copy Bill of Lading Picking Ticket (1 copy)

11. Customer Check Remittance Advice Lockbox Procedures Checks Deposit Slip (original) Bank Deposit Slip (copy) Remittance Advices Accounts Receivable Cash Report Controller Deposit Receipt

12. Deposit Slip (copy) Remittance Advices Accounts Receivable Cash Report Controller Totals Match? A/R File Enter Payments Cash Receipts Journal Deposit Receipt No Yes

13. Deposit Slip (copy) Remittance Advices Accounts Receivable Cash Report Controller Deposit Receipt Cash Receipts Journal Totals Match? No Yes

14. Cash Report Controller Deposit Receipt Cash Receipts Journal Bank Reconciliation Bank Statement Bank Statement Cash Receipts Journal Deposit Receipt Cash Report Reconciliation Report

15. Course Requirements Learn the Documents Learn the Job Titles Learn the Information Flows THINK about what each document is doing!

16. Another Revenue Example

18. Review Meet with your group and review: –Purchasing Cycle –Revenue Cycle –Flowcharting Master… –Documents –Job Titles –Flowcharting

19. 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