Chapter 8 - Revenue and cash collection cycles. This chapter presents the following content: An introduction to revenue processes, sales processes and the related risks and controls, sales return processes and the related risks and controls, cash collection processes and the related risks and controls,. | Chapter 8 Chapter 8 Revenue and Cash Collection Cycles Study Objectives An introduction to revenue processes Sales processes and the related risks and controls Sales return processes and the related risks and controls Cash collection processes and the related risks and controls An overview of IT systems of revenue and cash collection that enhance the efficiency of revenue processes E-business systems and the related risks and controls Electronic data interchange (EDI) systems and the related risks and controls Point of sale (POS) systems and the related risks and controls Ethical issues related to revenue processes Corporate governance in revenue processes Real World - Staples® Staples® - Office supply company, retail and corporate sales Corporate sales highly dependent on customer satisfaction Management seeks to maximize customer satisfaction Sales process design Ordering Delivery Efficient billing and collection Easy return Process must be flexible Walk-in sales Telephone sales Web sales Measure success in multiple ways Order entry accuracy Order rate vs. fill rate Percent of items correctly picked or miss picked Percent of orders delivered next day Products delivered undamaged 4 SO 1 An introduction to revenue processes Companies sell products and/or services. Examples: Retailers: Record the sale, collect cash, update inventory status all at the time of the sale. Manufacturers: Sell product to other companies. Deliver goods and bill customer at a later date. Collect payment. Introduction to Revenue Processes Systems and processes must be in place to capture, record, summarize, and report sales transactions. Processes include: Polices and procedures employees follow in completing the sale. Capturing customer data and sales quantities. Routing sales documents to the right departments. The Accounting System uses this flow of sales documents to various departments to record, summarize, and report the results of the sales transactions. SO 1 An introduction to . | Chapter 8 Chapter 8 Revenue and Cash Collection Cycles Study Objectives An introduction to revenue processes Sales processes and the related risks and controls Sales return processes and the related risks and controls Cash collection processes and the related risks and controls An overview of IT systems of revenue and cash collection that enhance the efficiency of revenue processes E-business systems and the related risks and controls Electronic data interchange (EDI) systems and the related risks and controls Point of sale (POS) systems and the related risks and controls Ethical issues related to revenue processes Corporate governance in revenue processes Real World - Staples® Staples® - Office supply company, retail and corporate sales Corporate sales highly dependent on customer satisfaction Management seeks to maximize customer satisfaction Sales process design Ordering Delivery Efficient billing and collection Easy return Process must be flexible Walk-in sales Telephone sales Web
