1 - Typology
Answer 3 questions before giving typology:
- Do they produce for the market?
- Do they have a predominant flow of goods?
- Does a technical transformation process take place?
2 - Reconciliations
Check completeness of revenue
Compare “soll” position with “ist” position. (“Compare possible revenue with actual
revenue”)
Goods movement
- Purchase = added inventory = account payables = cash outflow
- Sale = removed inventory = account receivables = cash receipts
- Periodic inventory count and analyses of differences
Used in mass production and trade organizations.
, Hourly movement
Pay time = # of employees * salary
Shop time = pay time - sickness leave
Job time = shop time – indirect activities (training, indirect meetings)
Invoice time = job time – inefficiencies
Soll position of revenue = invoice time * hourly rate
Used in Service companies.
Capacity movement
Soll position of revenue is the maximum capacity.
Capacity t0 + Investments – Disposals = Capacity t1
Maximum capacity – vacancy (leegstand) = occupation
Occupation * rate per capacity = ‘Soll’ revenues
Used in Hotels, venues with designated seats such as stadiums and cinema’s.
Risks that the occupation is not recorded, and the revenues are therefore incomplete.
Contract register movement
In the contract register all contracts are registered ;)
Nr client Service/good Price Starting date Special
nr/name agreements
… … …
… … …
Total: € 4
million
Do I see the 4 million back in the revenues (P&L statement), or is it different?
Used in Customizable productions, firms with projects.
Shifting risks (verschuivings gevaar)
Quasi goods movement
Tickets without a specific seat
??Compare sold tickets times price with “ist” position of revenue??
3 - Risk + control
Risk + control examples:
- risk that the production hours of employee X are recorded on project A instead of
project B. Therefore, the recorded production costs of project A are too high and
therefore inaccurate.
o Segregation of duties between who writes the hours and for example project
leader.
- Theft by personnel
o Set up additional secured location for expensive items.
Answer 3 questions before giving typology:
- Do they produce for the market?
- Do they have a predominant flow of goods?
- Does a technical transformation process take place?
2 - Reconciliations
Check completeness of revenue
Compare “soll” position with “ist” position. (“Compare possible revenue with actual
revenue”)
Goods movement
- Purchase = added inventory = account payables = cash outflow
- Sale = removed inventory = account receivables = cash receipts
- Periodic inventory count and analyses of differences
Used in mass production and trade organizations.
, Hourly movement
Pay time = # of employees * salary
Shop time = pay time - sickness leave
Job time = shop time – indirect activities (training, indirect meetings)
Invoice time = job time – inefficiencies
Soll position of revenue = invoice time * hourly rate
Used in Service companies.
Capacity movement
Soll position of revenue is the maximum capacity.
Capacity t0 + Investments – Disposals = Capacity t1
Maximum capacity – vacancy (leegstand) = occupation
Occupation * rate per capacity = ‘Soll’ revenues
Used in Hotels, venues with designated seats such as stadiums and cinema’s.
Risks that the occupation is not recorded, and the revenues are therefore incomplete.
Contract register movement
In the contract register all contracts are registered ;)
Nr client Service/good Price Starting date Special
nr/name agreements
… … …
… … …
Total: € 4
million
Do I see the 4 million back in the revenues (P&L statement), or is it different?
Used in Customizable productions, firms with projects.
Shifting risks (verschuivings gevaar)
Quasi goods movement
Tickets without a specific seat
??Compare sold tickets times price with “ist” position of revenue??
3 - Risk + control
Risk + control examples:
- risk that the production hours of employee X are recorded on project A instead of
project B. Therefore, the recorded production costs of project A are too high and
therefore inaccurate.
o Segregation of duties between who writes the hours and for example project
leader.
- Theft by personnel
o Set up additional secured location for expensive items.
