SALES ORDER

REVENUE CYCLE~SALES ORDER PROCESSING

A sales order is a document generated by the seller upon receiving a purchase order from
a buyer specifying the details about the product or service along with price, quantity,
buyer details like the shipping address, billing address, mode of payment and terms and
conditions.

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 CREDIT MEMO
REVENUE CYCLE~SALES ORDER PROCESSING

A credit memo is a contraction of the term "credit memorandum," which is a

document issued by the seller of goods or services to the buyer, reducing the amount
that the buyer owes to the seller under the terms of an earlier invoice. The credit
memo usually includes details of exactly why the amount stated on the memo has
been issued, which can be used later to aggregate information about credit memos to
determine why the seller is issuing them.

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 STOCK RELEASE DOCUMENT OR PICKING TICKET
REVENUE CYCLE~SALES ORDER PROCESSING

This document identifies the items of inventory that must be located and picked from the
warehouse shelves. It also provides formal authorization for warehouse personnel to
release the specified items. After picking the stock, the order is verified for accuracy and
the goods and verified stock release document are sent to the ship goods task. If inventory
levels are insufficient to fill the order, a warehouse employee adjusts the verified stock
release to reflect the amount actually going to the customer.

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 BILL OF LADING
REVENUE CYCLE~SALES ORDER PROCESSING
The bill of lading is a required document to move a freight shipment. The bill of lading
(BOL) works as a receipt of freight services, a contract between a freight carrier and
shipper and a document of title. The bill of lading is a legally binding document
providing the driver and the carrier all the details needed to process the freight shipment
and invoice it correctly.

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 SALES INVOICE
REVENUE CYCLE~SALES ORDER PROCESSING
A sales invoice, or sales bill, is an essential and common document used by all kinds of
companies. Companies use sales invoices to inform customers of the amount they owe in
exchange for goods or services that were sold. A sales invoice should include which
items the customer purchased, how many of the items were purchased, any discounts

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received and the total amount owed. Most sales invoices will always include information
as to when payment is expected.

REMITTANCE ADVICE
REVENUE CYCLE- CASH RECEIPTS

A remittance advice is a statement that accompanies a payment to a supplier,

detailing what was paid. The supplier uses the information on a remittance advice to
flag outstanding receivables in its accounting system as having been paid. A
remittance advice is frequently printed as an attachment to a check payment. It
includes the invoice number and payment amount for each invoice paid. The use of
this document can be considered a best practice, since it prevents the recipient of a
payment from needing to contact the sender to discuss what was included in the
payment.

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 PURCHASE ORDER REQUISITION
EXPENDITURE CYCLE- PURCHASES AND CASH DISBURSEMENTS
ACTIVITIES

A purchase requisition form is an internal document that employees use to request the
purchase of a specific item. The employee describes the product and why it is needed.
This form is then sent to other individuals and departments within the company for
review and approval.

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 PURCHASE ORDER
EXPENDITURE CYCLE- PURCHASES AND CASH DISBURSEMENTS
ACTIVITIES

A purchase order is a legally binding document between a supplier and a buyer. It details
the items the buyer agrees to purchase at a certain price point. It also outlines the delivery
date and terms of payment for the buyer. Purchase order computer systems have made the
purchasing process more efficient and allow for better inventory and payment tracking.

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 RECEIVING REPORT
EXPENDITURE CYCLE- PURCHASES AND CASH DISBURSEMENTS
ACTIVITIES

A document used to record the amount and type of finished goods or raw materials when
a shipment has been accepted. A receiving report is an important record of the
merchandise that a retailer has actually received from a supplier because it documents
what is owed to the supplier in terms of payment for the goods received or the return of
the goods, in some cases.

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 CASH DISBURSEMENT VOUCHER
EXPENDITURE CYCLE- PURCHASES AND CASH DISBURSEMENTS
ACTIVITIES

A cash voucher is a standard form used to document a petty cash payment. When
someone wants to withdraw cash from the petty cash fund, that person fills out the
cash voucher to indicate the reason for the withdrawal, and receives cash from the
petty cash custodian in exchange. If the person requesting cash is doing so because he
or she wants reimbursement for an expense they already paid for from their own
funds, then they should also staple the relevant receipt from the original purchase
transaction to the cash voucher. The vouchers are then stored as accounting records.

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 ADVANCED SHIPPING NOTICE (ASN)
EXPENDITURE CYCLE- PURCHASES AND CASH DISBURSEMENTS
ACTIVITIES

A document that provides detailed information about a pending delivery. The purpose of
an ASN is to notify the customer when shipping occurs and provide physical
characteristics about the shipment so the customer can be prepared to accept delivery.

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 BILL OF MATERIALS
CONVERSION CYCLE

A bill of materials (BOM) is an extensive list of raw materials, components, and

assemblies required to construct, manufacture or repair a product or service. A bill
of materials usually appears in a hierarchical format, with the highest level
displaying the finished product and the bottom level showing individual
components and materials.

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 ROUTE SHEET
CONVERSION CYCLE

A route sheet is a document which lists the exact sequence of operations needed to
complete the job. The route sheet is intended to accompany parts moving individually
or in batches. Route sheets provide the information to the material handlers to help
them move materials or partly completed items from one work center to another, until
the finished part or assembly reaches the shipping department. Route sheets are useful
for Production planning.

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 MATERIALS REQUISITION
CONVERSION CYCLE

A materials requisition form is a source document that the production department uses to
request materials for manufacturing process. The production manager usually fills out the
materials requisition form and delivers it to the materials or storage department where all
of the raw materials are stored. Once the materials manager signs off on the request, the
raw materials are moved from storage and placed on the production floor.

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 PRODUCTION SCHEDULE
CONVERSION CYCLE

The timetable for the use of resources and processes required by a business to produce
goods or provide services. A typical business will modify its production schedule in
response to large customer orders, to accommodate resource changes, to reduce costs,
and to increase overall production efficiency.

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WORK
ORDER FORM
CONVERSION CYCLE

A work order is a document that provides all the information about a maintenance task
and outlines a process for completing that task. Work orders can include details on who
authorized the job, the scope, who it’s assigned to, and what is expected.

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REFERENCES:

 Google Images
 Accounting Information Systems, Seventh Edition James A. Hall
 https://www.fiixsoftware.com/blog/work-order/
 http://www.businessdictionary.com/definition/production-schedule.html
 https://www.myaccountingcourse.com/accounting-dictionary/materials-
requisition
 https://www.investopedia.com/terms/b/bill-of-materials.asp
 https://searcherp.techtarget.com/definition/bill-of-materials-BoM
 https://searcherp.techtarget.com/definition/advanced-shipping-notice-ASN

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