ACC200 Ch3 Set 1 REVERSED Flashcards Preview

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Flashcards in ACC200 Ch3 Set 1 REVERSED Deck (20):
1

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

2

Revenue cycle - primary external exchange of data is with?

3

Fig7.2 pg107

The context diagram of the revenue cycle

4

is to provide the right product in the right place at the right time for the right price

Revenue cycles primary objective

5

pg108

To accomplish the revenue cycle's primary objective, management must make the following key decisions

6

1) sales order entry

2) shipping

3) billing

4) cash collection or receipts

Four basic revenue cycle activities

7

Fig7.3 pg108

Level 0 data flow diagram: revenue cycle

8

Fig 7.4 pg109

Overview of enterprise resource planning system design to support the revenue cycle

9

Fig7.5 pg110

Level 1 data flow diagram: sales order entry

10

1. Taking customers orders

2. Credit approval

3. Checking inventory avaliability

4. Responding to customer enquiries

Sales order entry

11

customer order data are recorded on a sales order document

Taking customer orders

12

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

13

customers use this to submit an order electronically in a format compatible with a company's sales order processing system

Electronic data interchange (EDI)

14

Fig7.6 pg111

Example of a sales order document (order entry screen)

15

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

16

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

17

Fig7.7 pg113

Sample enquiry screen for checking customer credit

18

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

19

Fig7.8 pg114

Sample enquiry screen for checking inventory avaliability 

20

someties these enquiries precede an order, & often they occur after orders have been placed

Responding to customer enquiries