Good morning maam aand classmates, last meeting the reporter was able to discuss
comprehensively the revenue cycle, NOW LET ME RECALL TO YOU THE 4 basis of activties IN
THE REVENUE CYCLE which are;
SALES ORDER ENTRY WHERE IT IS THE TIME THE ENTITY WILL TAKE THE CUSTOMER;S ORDER,
CHECK THE CUSTOMERS CREDIT, THE INVENTORY AVAILABLE, AND RESPND TO THE INQUIRIES
OF CUSTOMER REGARDING THE ORDER.
NEXT IS SHIPPING, THIS AREA IS RESPONSIBLE FOR PICKING AND PACKING THE ORDER, IT IS
WHERE THE ORDER NOW SHIP TO THE CUSTOMER
BILLING INVOLVES 2 ACTIVITIES WHICH IS THE INVOICING AND UPDATING OF ACCOUNTS
RECEIVABLE, AND LAST PROCESS IN THE REVENUE CYCLE IS THE COLLECTIONS OF REVENUE
and our group ASSIGN to discuss and give ADDITIONAL INSIGHT about the collection cycle.
what do WE MEAN BY THE WORD COLLECTION?,COLLECTION IS TERM USED BY A
BUSINESS WHEN REFERRING TO MONEY OWED TO THAT BUSINESS BY A
CUSTOMER, MEANING THE BUSINESS ENTITY RECEIVES OR COLLECT CASH IN
ANY PSSIBLE MEANS OF COLLECTION AFTER ALL OF THE PROCESS IN
REVENUE CYCLE HAD BEEN MEET.
IN THIS DISCUSSION WE ARE TO DICSUSS ALSO THE DEPARTMENT AND
PERSONNEL INVOLVE IN THE COLLECTION PROCESS. USUALLY IN THE
COLLECTION THERE ARE 2 DEPARTMENT INVOLVE WHICH ARE THE
CONTROLLER AND TREASURER DEPARTMENT. IN CONTROLLER
DEPARTMENT WE HAD A BILLING DEPARTMENT AND ACCOUNTS RECEIVABLE
CLERK.
The duties and responsibilities of a Billing department include sending invoices and account
updates to clients, receiving, sorting, and tracking incoming payments, addressing and
resolving client questions and issues relating to invoices, and providing regular, accurate
reports of billing data.
An Accounts Receivable Clerk description typically includes the following tasks
and responsibilities: Calculating, recording, inputting or processing financial
data. Preparing customer invoices based on accounting procedures. Researching
and investigating discrepancies in invoices to determine the accuracy of charges.
Credit managers are responsible for overseeing the credit granting process for a company.
Their job is to optimize company sales and reduce bad debt losses by maintaining the credit
policy. They do this by assessing the creditworthiness of potential customers and conducting
periodic reviews of existing customers.
Cashiers have many vital duties in retail-based establishments. They are responsible for
processing and receiving payments and issuing receipts to customers as they leave with their
purchases. Cashiers also handle additional items necessary, such as coupons, while providing
an excellent customer service experience.
TURNAROUND DOCS.Documents that are commonly used as turnaround documents include
the following: Utility bills. Meter cards for collecting readings from gas meters, photocopiers,
water meters etc. Subscription renewal notices.
LOCKBOX ARRANGE.Suppose you receive a bill from your electric company. It arrives in the
mail with a remittance slip. You fill out the slip, enclose your check, and mail it off to a post
office box in a nearby city. That post office box is your electric company's lockbox. It's a
special P.O. box to which customers can send payments. The bank then collects those
payments, deposits the cash, and updates the company on the transactions.
ELECTRONIC FUNDS TRANSFER. An electronic funds transfer (EFT), or direct deposit, is a
digital money movement from one bank account to another. EXAmples are credit card
transactions, ATM transactions, electronic checks and phone payments
FINANCIAL ELECTRONIC DATA INTERCHANGE. With EDI, an organisation can electronically
receive an invoice and initiate a payment. Eliminating the paper in payables and receivables
flows enables organisations to reduce days sales outstanding and days payables outstanding,
optimising their cash conversion cycles. EDI also provides a lower-cost alternative to
traditional paper-based payment methodologies, while eliminating errors associated with
manual processes.
