Accounting Information Systems (AIS)
Chapter 12 The revenue cycle: sales to cash collections
The revenue cycle is a recurring set of business activities and related information processing
operations associated with providing goods and services to customers and collecting cash in
payment for those sales.
The basic revenue cycle activities are:
- Sales order entry
- Shipping
- Billing
- Cash collections
GENERAL THREATS AND CONTROLS TO REVENUE CYCLE
Sales Order Entry processing steps:
I. Take the customer order
• Source document: sales order
II. Check and approve customer credit
III. Check inventory availability
IV. Respond to customer inquiries
SALES ORDER ENTRY PROCESSING
Page 21 of 25
Chapter 12 The revenue cycle: sales to cash collections
The revenue cycle is a recurring set of business activities and related information processing
operations associated with providing goods and services to customers and collecting cash in
payment for those sales.
The basic revenue cycle activities are:
- Sales order entry
- Shipping
- Billing
- Cash collections
GENERAL THREATS AND CONTROLS TO REVENUE CYCLE
Sales Order Entry processing steps:
I. Take the customer order
• Source document: sales order
II. Check and approve customer credit
III. Check inventory availability
IV. Respond to customer inquiries
SALES ORDER ENTRY PROCESSING
Page 21 of 25
