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24 Cards in this Set
- Front
- Back
Revenue Cycle
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Recurring set of business activiites and related information processing operations associated with providing goods and services to customers and collecting cash in payment for those sales.
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Four Basic Revenue Cycle Activities
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1. Sales order entry
2. Shipping 3. Billing 4. Cash Collections |
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Sales Order
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Document that is usually an electronic form displayed on a computer monitor screen that reveals information about item numbers, quantities, prices and other terms of sales.
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Electronic Data Interchange (EDI)
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Used to submit the order electronically in a format compatible with the company's sales order processing system.
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Credit Limit
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Maximum allowable account balance that management wishes to allow for a customer based on that customer's past credit history and ability to pay.
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Accounts receivable aging report
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Lists customer account balances by length of time outstanding.
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Electronic transfer of funds
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Transfer of funds between two or more organizations using computers and/or automated technology
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FEDI
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System that integrates EFT and EDI information. Customer sends both remittance data and funds transfer instructions together, seller receives both.
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Balance-Forward method
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Method of maintaining accounts receivable that generates one payment for all sales made the previous month.
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Credit Memo
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Document used to authorize reducing the balance in a customer account
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Open-invoice method
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Method of maintaining customer accounts that generates payments for each individual sales transaction
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Bill of lading
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Document used to establish responsibility for shipping goods via a third party.
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Cycle billing
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Process of dividing customer account master file into subsets and preparing invoices for one subset at a time.
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Remittance Advice
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Turnaround document returned by customers with payments.
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Customer relationship management (CRM) System
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"System that contains customer-related data organized in a manner to facilitate customer service, sales, and retention."
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Lockbox
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Post office box to which customers send payments.
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Back order
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Document used to indicate stock outs exist
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Picking ticket
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Document that authorizes removal of merchandise from inventory
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packing slip
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lists the quantity and description of each item included in the shipment.
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Sales invoice
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Notifies customers of the amount to be paid and where to send payment.
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Monthly statement
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Lists all transactions, including both sales and payments, that occurred during the past month and informs customers of their current account balances.
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Remittance list
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A document (generally prepared by mailroom personnel) identifying the names and amounts of all customer remittances (sending money to recipient), and sends it to accounts receivable.
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Electronic lockbox
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The bank electronically sends the company information about the customer account number and the amount remitted as soon as it receives and scans those checks.
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Cash flow budget
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Provides estimates of cash inflows (projected collections from sales) and outflows (outstanding payables). It can alert an organization of short-term cash shortages or surpluses.
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