Chapter 7 – AIS & Business Process (SALES PROCESS) – Flashcards
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With a customer order for goods and services and ends with the collection of cash from customers.
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How the sales process being?
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To achieve timely and efficient cash collection.
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What is the primary objective of the sales process?
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When it generstes revenue, but fails to collect those revenues on a timely basis.
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When will an organization find it hard to pay bills?
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Be received in store, by mail, by phone, or over website.
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What are the common to taking customer order?
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Can help cut costs and increase sales.
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What is the benefit of online orders?
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A customer can automatically transmit an order to the seller. The seller's system receives the order and processes it automatically according to predetermined terms. Little to no human involvement required.
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Describe electronic data interchange (EDI)?
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The supplier is allowed to access the customer's inventory data and assumes responsibility for managing and monitoring the customers inventory.
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Describe vendor-managed inventory (VDI)?
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Check credit limit. A credit limit is established for each existing customer based on the customers past credit.
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What is the 1st step once a customer order is received?
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Checking inventory. If sufficient inventory is available to fill the order, the shipping and billing departments are notfied of the sale.
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Once customer credit is established what is the next step?
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Pick and pack the order and ship the order. Updates are made on quanity on hand.
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Once inventory is checked what is next?
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Send invoice to customer.
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Describe the cash collection process?
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1. sales order 2. sales invoice 3. remittance advise 4. shipping notice 5. Bill of landing 6. DR/CR memo.
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What are the sales process inputs?
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1. Cash receipt forecast 2. approved customer listing 3. sales analysis report.
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What are the sales process outputs?
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Open invoice, and balance forward method.
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What are the two methods of maintianing AR?
