AIS

Accountinginformation system

A Business process approach

FREDERICK L. JONESDASARATHA V. RAMA

Accountinginformation system

A Business process approach

FREDERICK L. JONESDASARATHA V. RAMA

The Revenue Cycle . Ch 11

Supervise: D. Amal Fouda

By : Amani Saad Al-Jadhee

ID: 428220075

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 .

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

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)

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 list8- 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

File maintenance::

1. Customer 2. Inventory

File maintenance::

A1

customer table ( master table)

customer table ( master table )

customer name address

Contact-person

Tele- phone

G/L sales

Credit-limit

Balance due

3451 educate

fairhaven

Costa 5088884531

4000 12000$

0 $

Using customer file maintenance

Plays important role in reducing risks..Credit limit risk of not collecting cash Storing reference data efficiency

&accuracy

Maintain Inventory

Inventory table ( master)

ISBN author

title Default-price

Q- in hand

Q- allocated

GL-sales

GL-COGS

YTD-Q-sold

Budget-sales -Q

0-256-125967

Barnes

introduction

78.35

0 0 4000 5210 300

Accept Order ( E1):

Accept Order ( E1):

Sales order Table/ sales_ Order_ detailed table

Order #

Date Employee#Order entry clerk

Customer #

219 05/ 11/ 03

201- 35- 8921 3451

Order ISBN Order - Q Q-shipped price

219 0256125967 15 0 78.35$

219 0146189764 1 0 70.00$

Pick and ship goods (E2,E3)

Records created

1- Update sales order detail table and Inventory Table .

2- records : shipment table

Shipment #

Order#

Date Employee# warehouse

Employee# shipper

Freight

831 219 5-11-03

540895403 027400130

3$

Shipment- detail table

Shipment# ISBN Q- shipped Q- invoiced

831 0256125967 14 0

831 0146189764 1 0

Bill Customer (E4)

QUERY: unbilled shipmentThe 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

Invoice #

Shipment#

Invoice date

Due- Date

Original Amount

Amount Paid

Post date

G/L post date

3003 831 5-12-03

6-11-03

116990$

0$

Sales –invoice Table

Sales-Invoice-G/L-Detail Table

Invoice# G/L Account Amount

3003 1050 116990$

3003 4200 )$3.00)

3003 4000 $(116690)

3003 5210 $732.00

3003 1120 $ (732.00)

Sales invoice

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

Collect Cash(E5)

Record Collection(E6)

Payment #

date Employee( AR clerk)

Amount Post- Date

G/L post date

Deposit#

4003 5-19-03

031429517

619990

Cash-Receipt Table/ Detail Table

Payment# Invoice# Amount4003 3003 1169.90

4003 3052 5030.00

Cash-Receipt- G/L-Detail Table

Payment# G/L Account# Amount4003 1000 6199.904003 1050 (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

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

Deposit Cash (E7)

Deposit# date Employee# cashier

Amount

503 5-19-03 391870202 7199.0

Deposit table

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 .

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 modules1. general ledger 2. Bank statement

Monthly Activities

• Print Account receivable Aging ReportProvide 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 .

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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Amani S. AL-Jadhee