Order Entry and Credit Collection
Name something that could be on Pitaya’s sales order?
Shirt / Sweater / Dress / Skirt / Shorts / Jeans
What items/product does Pitaya ship?
Definition of billing: involves creating and sending ___ for services provided to either customers or third-party payers to receive ___?
Invoices, Payment
What accurately and safely determines what funds were received from customers?
Cash Receipts
What must the customer have in order to make a return and have proof of purchase?
Receipt
What is one of the ways a sales order may be received?
Written / Over the phone / On the web
What forms are internal to the shipping process?
Picking Ticket and Packing Slip
When retail stores such as Pitaya track how much is owed and the collection period of outstanding receivables, what is this considered?
Accounts Receivable
Who should have a copy of a cash receipt?
Customer, business, and bank
What sets the guidelines for how a company does returns?
Return Policy
When is credit checked?
Before the sale
When a sales order entry is made what is created to indicate what items need to be shipped?
Picking Ticket
What is included on an invoice that is issued from business-to-business sales that is not included on a receipt from a POS transaction?
Payment Terms
Name the internal control that requires different employees to handle authorization, record-keeping, and custody of assets.
Segregation of duties
What account must be used to reverse the original sale?
Sales Return and Allowance
What is step 3 in the Order entry cycle?
Check inventory availability
List two ways Pitaya is mitigating risk for not shipping inventory?
Shipping errors
Lost or damaged items
Inventory tracking errors
Delays and customer complaints
What would have happened if PItaya were to record an allowance for doubtful accounts and write off an uncollectible amount?
No payment is made
List three of the four features that should be included on a cash receipt?
Date
Customer name
Vendor signature
Amount of money
What is the last step in doing a sales return?
Recording the add back of inventory
What could be a threat to sales order entries?
Incomplete or invalid orders solution entry controls such as field and signature controls
Uncollectible accounts solution preapproval and credit limits
Inventory stockouts or excess solution track inventory with barcodes
What three forms get sent to the carrier during the shipping process?
Packing Slip, Bill of Lading, and Shipping report
What part of billing mentioned is not directly related to the revenue cycle?
POS Transactions
List the two advantages of a lockbox?
Keeps money out of the hands of employees and speeds up cash flow
What are the key controls for a sales return?
Documentation, Inspection, Return Policy