After studying this chapter you will be able to: Review the historical development of foreign exchange markets; explain how the foreign exchange rate reflects the demand and supply of goods, services, and assets, and the other flows that make up the balance of payments; explain geographic arbitrage, triangular arbitrage, and intertemporal arbitrage. | Chapter 12 Sales/Collection Process Outline Learning objectives Value chain Process steps AIS elements Learning objectives Explain its role and purpose. List and discuss, in order, the steps in the process. Explain how the generic structure of most AIS applies to the process. Process common transactions. Design & critique internal controls based on common risk exposures. Develop & interpret process-related systems documentation. Relate Porter’s value chain to the process. With respect to the sales / collection process, you should be able to: Value chain Organizations exist to create value for their stakeholders. Porter’s value chain is a classic, well recognized model for describing generic value creating activities. It comprises two main parts: Primary activities Support activities Value chain Primary activities create value directly. Inbound logistics Operations Outbound logistics Marketing and sales Service Value chain Support activities create value indirectly. Procurement Information technology Human resource management Infrastructure Process steps Overall, the sales / collection process comprises everything from taking a customer’s order through collecting payment from the customer. Details may vary across organizations, but the sales / collection process generally comprises seven generic steps. Process steps Take the customer’s order. Approve the customer’s credit. Fill the order based on approved credit. Ship the product. Bill the customer. Collect payment. Process uncollectible receivables as needed. AIS elements Inputs Processes Outputs Storage Internal controls Recall from your study in Chapter 1 that most accounting information systems comprise five generic elements. The next series of slides will show how those elements are applied in the context of the sales / collection process. AIS elements Customer order Picking list Packing list Bill of lading Customer invoice Customer check Remittance advice Deposit slip Input and output documents associated with | Chapter 12 Sales/Collection Process Outline Learning objectives Value chain Process steps AIS elements Learning objectives Explain its role and purpose. List and discuss, in order, the steps in the process. Explain how the generic structure of most AIS applies to the process. Process common transactions. Design & critique internal controls based on common risk exposures. Develop & interpret process-related systems documentation. Relate Porter’s value chain to the process. With respect to the sales / collection process, you should be able to: Value chain Organizations exist to create value for their stakeholders. Porter’s value chain is a classic, well recognized model for describing generic value creating activities. It comprises two main parts: Primary activities Support activities Value chain Primary activities create value directly. Inbound logistics Operations Outbound logistics Marketing and sales Service Value chain Support activities create value indirectly. Procurement .
