Revenue Cycle Flashcards

1
Q

What is the first document created in the revenue cycle?

A

The Purchase Order (Received from customer)

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2
Q

What document is created after the Purchase Order?

A

Sales Order (Is in response to purchase order)

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3
Q

Which departments get the Sales Order

A

Billing (If new customer, will also do a credit check)
Warehouse
Shipping

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4
Q

What is the process after the three departments get the Sales Order?

A

Warehouse releases good to Shipping
Shipping prepared Bill of Lading
-Gives 1 to Customer; Gives 1 to Billing

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5
Q

What does Billing do once it gets the Bill of Lading?

A

Prepares Sales Invoice, which goes to

  • Customer
  • Keep Copy
  • Accounting
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6
Q

What does Billing include with the Sales Invoice?

A

A remittance advice

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7
Q

What does the customer send with payment?

A

The remittance advice with check

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8
Q

What is done when payment is received from the customer

A

Endorse check, create remittance listing
Check and listing goes to one person for deposit
Remittance listing goes to another for recording

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9
Q

What is the final document in the Revenue Cycle?

A

Bank Reconciliation (Comparison)

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10
Q
What parts of ARCC are covered by the documents from the Revenue Cycle?
Sales Order
Bill of Lading
Sales Invoice
Remittance Advice
Check
Remittance Listing
Bank Reconciliation
A
Sales Order: Authorization
Bill of Lading: Custody
Sales Invoice: Recording 
Remittance Advice: Recording
Check: Custody
Remittance Listing: Custody and Recording
Bank Reconciliation: Comparison
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