Purchases and Payment Cycle

Inspect
stocks

Look for
another
supplier

Issue purchase
order to supplier
Are Stocks Sufficient?
No
List needed
stocks

No
Check
quality

Yes

Is quality good?

Purchase orderYes
accepted?

No

Stocks
received
Inspect other
stocks

Stocks
return to
supplier

Request for
replacement

Yes
Is stock sufficient?
No List needed

Prepare
money

stock

Stock
ingredients

Make direct
purchases
No

Make direct
payment

Prepare
Money

Yes

Receive
receipt from
the supplier

Pay Supplier

Is there enough money?

No
Pay
accounts
payable

Verify due
date

Yes

No

Prepare
Money
Is there enough money?
Yes

Is it due today?

Pay Supplier

Receive
receipt from
the supplier

Sales-Collections-Reporting Cycle
Reject
Customer
Order

No

Take
Customer
Order

Yes

Prepare
Kamote
Fries

Receive
payment from
Customer

Give to
Customer

Can the order be fulfilled?

Make direct
sale
collections

Receive
cash

Yes

Check
Customer
Accounts

Inform
Customer

Yes

No

Are Accounts due?

Update
Customer
Credit Record

Receive Cash

No
Can be Collected?
No

Give 24-hour
grace period

Yes

Is money unikely to be collected?

Gather data

YES
Is Data complete?

Owners order
to prepare
report

No
Find ways to
further
Complete data

Process data

Create report

Provide data
to users

Recognize
receivable as
a loss

Inspect stocks for

Kamote fries
ingredients

YES
Are stocks
sufficient?

Issue purchase order

to Kamote supplier

NO

Look for another

supplier

Purchase order
accepted?

NO

Are all stock in

good quality?

YES

NO

Receive delivered
stock from supplier

List needed stocks

Prepare money

YES

Make direct
purchase

Check to see any

due supplier
accounts

Check quality of
received stock

Make direct
payment

Request for
replacement

Return bad stock to

supplier

Receive receipt

Pay accounts
payable to supplier

Record Accounts
receivable

Take customer order

Prepare order

Check Customer
accounts

Cash payment
received

Give to customer

YES

Issue official receipt

to customer

Update Customer
credit record

NO

Inform customer

Are accounts
due?
YES
Recognize
receivable as loss

Can be
collected?
NO

Is money
unlikely to be
collected?

Give grace period to

customer

Inform customer
again
24 hours

Prepare report

Process gathered
data

Gather data
Is data
complete?
NO

Find ways to further

complete data

Make a report

Provide data to
users