ACC200 Ch3 Set 1 REVERSED Flashcards
(20 cards)
a recurring set of business activities & related information processing operations associated with providing goods & services to customers & collecting cash in payment for those sales
Revenue cycle
Revenue cycle - primary external exchange of data is with?
Fig7.2 pg107
The context diagram of the revenue cycle
is to provide the right product in the right place at the right time for the right price
Revenue cycles primary objective
pg108
To accomplish the revenue cycle’s primary objective, management must make the following key decisions
1) sales order entry
2) shipping
3) billing
4) cash collection or receipts
Four basic revenue cycle activities
Fig7.3 pg108
Level 0 data flow diagram: revenue cycle
Fig 7.4 pg109
Overview of enterprise resource planning system design to support the revenue cycle
Fig7.5 pg110
Level 1 data flow diagram: sales order entry
- Taking customers orders
- Credit approval
- Checking inventory avaliability
- Responding to customer enquiries
Sales order entry
customer order data are recorded on a sales order document
Taking customer orders
usually an electronic form displayed on a computer monitor or screen (many ERP systems continue to refer to these data entry screens as documents)
Sales order document
customers use this to submit an order electronically in a format compatible with a company’s sales order processing system
Electronic data interchange (EDI)
Fig7.6 pg111
Example of a sales order document (order entry screen)
most business-tobusiness sales are made on credit. Therefore, there is the possibility of making sales that later turn out to be uncollectible (customer does not pay but has possession of the goods). Reguiring proper authorisation for each credit sale diminishes this possibility or threat
Credit approval
the maximum allowable balance that management wishes to allow for a customer based on that customer’s past, credit history & ability to pay
Credit limit
Fig7.7 pg113
Sample enquiry screen for checking customer credit
salespeople eed to determine whether sufficient inventory is avaliable to fill an order, so that a customer can be informed of an expected delivery date
Checking inventory avaliability
Fig7.8 pg114
Sample enquiry screen for checking inventory avaliability
someties these enquiries precede an order, & often they occur after orders have been placed
Responding to customer enquiries
