Revenue Cycle Flashcards
(18 cards)
Incomplete/Inaccurate orders
- Data entry edit controls
- Restrict access to master data
Invalid orders
- Digital or written signatures
- Acknowledge and confirm
Uncollectible accounts
- Credit evaluation, approval and limits
- Prepare and review AR Aging
- Aggressively pursue past due accounts
Stockouts or excess inventory
- Perpetual inventory system
- Bar code, RFID, automated handling
- Physical counts of inventory - reconcile
- Sales forecasts integrated with production
Loss of customers
- Best in class customer service (CRM, self-help websites, “customer comes first”
Pick wrong item or quantity
- Bar-code, RFID, automated handling
- Reconcile packing list to sales order
Theft of inventory
- Restrict access to physical items
- Document inventory transfers - both sides sign
- Physical counts of inventory - reconcile
Shipping errors
- Reconcile docs: sales order, picking slips, packing slips
- Account for pre-numbered documents
- Data entry automation and edit checks
- Application control checks for duplicate orders
Failure to bill
- Segregation of duties: bill, record, adjustments
- Reconcile invoice, sales order, picking tickets, shipping documents
- Account for pre-numbered documents
Billing Errors
- Use software to create invoice based on sales order price and quantity shipped
- Restrict access to pricing data
Posting errors in AR
- Data entry edit controls
- Integrate posting with ERP/AIS software
- Mail monthly statements to customers
- Reconcile AR Subsidiary Ledger to GL
Inaccurate or invalid credit memos
- Segregate approval to credit manager
- Application control requires evidence of return or specific authorization
Theft of cash
- Segregation of Duties: cash and AR
- Reconcile bank account to GL - Independent person
- Eliminate cash handling: EFT, FEDI, lockboxes
- Immediately endorse checks
- Count cash and compare to point of sale or transaction report - Independent person
- Point of sale systems
- Daily deposits at bank
Cash Flow Problems
- Cash flow budgets and actuals
- Follow-up on past due AR
- Discounts for prompt payment
- EFT, FEDI, lockboxes, credit cards
Invalid or inaccurate master data
- Restrict access - Segregation of Master File changes and recording
- Data entry and processing controls
- Review all master file changes
Unauthorized disclosure of sensitive information
- Chapters 7&8: encryption, access controls, authorization controls
Loss or destruction of data
- Chapters 7&8: disaster recovry plan , offsite backups, insurance
Poor performance
- Hire competent people and train them
- Performance reports to identify non-conformance