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Revenue Cycle - Lecture notes 2

Accountancy (Pamantasan ng Lungsod ng Maynila)

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Revenue
Cycle

Sales Accounts Receivable Cash Expenses

DR CR DR
CR DR CR DR

Manual System

Credits and
Manual System Manual System Manual System Manual System Adjustments
Delivery and Manual System
Order Invoicing Cash Receipt
Distribution
Master Data

Client Prepared by Date

Page 1 of 5
name name 10/18/2016
Process Approved by Date
name name 12/5/2016
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Level 2 – Process Flows Overview

Business Process Flow Description

Sales and Credit Dept RR01 Receipt and Processing of Orders
> Sales department receives order from Customer
Order > Sales department prepares Sales Order
> Sales forwards orders to Credit Department for Credit Check
RR01 > Credit department checks credit limit, approves, rejects, or extend
credit limit

Warehouse and Shipping RR02 Delivery and Distribution

> Warehouse picks goods
Deliver and > Warehouse updates inventory records
Distribute > Shipping ships goods to customer
RR02

Billing and AR Control RR03 Invoicing

> Billing bills customers
Invoicing > AR Control maintains Customer Subsidiary Ledger
> Inventory Control maintains Inventory Subsidiary Ledger
RR03
> GL team records entries and reconciles SL vs GL

RR04 Credits and Adjustments

Billing and AR Control
> Receiving will receive goods
Credits and > Sales will issue credit memo
Adjustments > Billing records transaction and sends CM to customer
> AR Control and Inventory Control maintains the subsidiary Ledger
RR04
> GL Team records entries and reconciles

Treasury and AR Control RR05 Cash Receipts

> Mail room receives check
Cash Receipt > Treasury collects and issues OR/AR
> AR Control maintains customer SL
RR05 > GL Team records entries and reconciles

Master Data Team RR06 Maintenance of Standing Data for the R&R Cycle
> Maintains Customer Master Data
Master Data > Ensures that Authorization in Revenue Cycle is monitored and
controlled
RR06

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Revenue Cycle (Part 1 of 3)

Ordering > Credit Check > Picking Goods > Shipping Goods > Billing > Update Records > Reconciliation

File
A

Shipping Notice

Packing Slip
SO Sales Copy
Picking List
Sales Customers Customer Order
SO Billing Copy

SO Shipping Copy
Sales Sales
SO Warehouse Copy
Customer’s Order Prepare sales Prepare Pick list, Packing
11 Slip and Shipping Notice
order
7, 8
1,2,3

Credit
SO Credit Copy SO Credit Approved
Credit Check

4, 5, 6
Credit

Credit
Records

Warehouse
SO Warehouse Copy
Stock
Picking List Pick Goods Records
A
9, 10
Warehouse
SO Warehouse Copy
File

Shipping Log

Shipping
Picking List + Goods SO Shipping Copy
Reconcile, Prepare File
Shipping Notice BOL and Complete
Shipping Notice
Shipping Packing Slip
11

SO Shipping Copy
Goods to be
delivered
Packing Slip

Bill of Lading
Carrier

Completed Shipping
Notice
Picking List SO Billing Copy
Billing
Completed Shipping File
Sales Invoice –
Notice
Prepare Invoice Billing Copy
SO Billing Copy
12

Sales Invoice –
Billing Customer Copy
Customer

JV to record Sales in
Sales GL
Register

Sales Invoice – AR
File
Copy
AR Control
Sales Invoice – AR
Copy
AR Control Update AR SL
AR Summary
13
AR SL B

Picking List
File

Inventory Control
Picking List
Inventory
Update Inventory SL
Control
JV to record COS in
14 GL
Inventory SL

JV COS Invty

JV AR Sales
GL Control
AR and Invty File
Update General
B Summary
General Ledger
Ledger 15

General
Ledger

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Revenue Cycle (Part 2 of 3)

Receiving > Credit Memo > Billing > Inventory Control > Accounts Receivable > General Ledger

Receiving Return Slip –

Returned Goods Inventory Control
Prepare Return A
Customers
Slip

Receiving Returned Goods

Return Slip –
Warehouse Copy

Warehouse
Return goods Stock
to warehouse Records

Warehouse
Return Slip –
File
Warehouse Copy

Return Slip – Sales File

Inventory Control Prepare Credit CM – Sales Copy
A Copy Memo CM AR Copy

CM Billing Copy
Sales
CM Customer Copy
Return Slip –
Inventory Control
Copy

Billing
CM Billing Copy CM Billing Copy
File
Update SRA
CM Customer Copy
Register

CM Customer Copy
Billing
Customer

JV to Record SRA
SRA Register

CM AR Copy
File
AR Control
CM AR Copy
AR Control Update AR SL
AR Summary
AR SL B

Return Slip –
File
Inventory Control
Copy
Inventory Control
Return Slip –
Inventory Inventory Control
Update Inventory SL
Control Copy
JV to record COS in
GL
Inventory SL

JV COS Invty

JV AR Sales
GL Control
AR and Invty File
Update General
General B Summary
Ledger
Ledger

General
Ledger

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Revenue Cycle (Part 3 of 3)

Receipt of check > Cash Receipt > Accounts Receivable > General Ledger

Mail Room Remittance Advice

Remittance Advice
Prepare A
Customers Check
Remittance List Remittance List –
AR Copy

Mail Room
Remittance List
Check

Official Receipt /
Deposit Slip Acknowledgment
Receipt Customer
Deposit Slip
Treasury
Deposit Slip Process cash
Check Receipts JV to record Cash
Cash
Collections
Receipts
x Journal
Treasury
Deposit Slip
File
Deposit Slip Remittance List
Bank

Remittance Advice
File
Remittance Advice Remittance List –
AR Control AR Copy
A
Remittance List –
AR Control AR Copy Update AR SL
AR Summary
AR SL B

JV Cash AR
GL Control File

Update General AR Summary

B
General Ledger

Ledger

General
Ledger

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