Badstudent

1. The sales and collection process includes business activities related to selling products and services, maintaining customer records, billing customers, and recording payments from customers. It also includes activities necessary to manage accounts receivable, such as aging accounts and authorizing credit. The sales and collection processes generate accounting transactions to record revenue, accounts receivable, and cash receipts. They also affect cost of goods sold and inventory for companies that sell merchandise.

Four basic business activities are performed in the revenue cycle:

1. Sales order entry

2. Shipping

3. Billing

4. Cash collection

Sales Order Entry is performed by the sales order department. The sales order department typically reports to the Vice President of Marketing. Information technology has continued to effectively and efficiently improve sales. There are three ways for this to be accomplished. First, orders entered online can be routed directly to the warehouse for picking and shipping. Second, sales orders can be used to customize solicitations. The second basic business in the revenue cycle is filling customer’s orders and shipping the desired merchandise. This is the shipping process and it consists of two steps: picking and packing the order as well as shipping the order. The warehouse department typically picks the order. The shipping departments normally pack and ship the order. Both functions include custody of inventory and ultimately reporting the Vice President of Manufacturing. The third basic business in the revenue cycle is billing the customers. This activity involves two tasks: invoicing and updating accounts receivable. Finally, you will need to collect cash from the customers for the service or goods provided.

Process Steps:

1. Provide Quote

Intention- Provide quotes and promptly and accurately

Partner Authority/Action- Partner must provide quote within 1 business day of request; manager must approve quotes...