REVENUE CYCLE

I) SALES ORDER ENTRY

II) SHIPPING
III) BILLING
IV) CASH COLLECTION

I) SALES ORDER ENTRY

1. - Sales order form – hardcopy or electronic

- Electronic - website or EDI (Electronic Data Interchange)
- ERP – Enterprise Resource Planning – integrated system

2. Check customer credit status

3. Check Inventory Availability

4. Respond to Customer Queries

II) SHIPPING

1. Picking Ticket – triggered by sales order entry

2. Packing Slip – generated once inventory updated

3. Back Order – initiated by shipping dept

4. RFID – Radio Frequency Identification - helps in inventory tracking

5. Bar Code Scanner – helps to update inventory record

III) BILLING

1. Sales Order & Bill of Lading / Delivery Order as supporting documents

2. Open Invoice Method – payment according to each invoice

3. Balance Forward Method - payment according to monthly outstanding amount

4. Cycle Billing – different customers bill at different times of the month

5. Credit Memo – for sales return / write-off

IV) COLLECTION

1. Segregation of duties – to prevent fraud

2. EFT - Electronic Fund Transfer

3. FEDI – Financial Electronic Data Interchange (combination of EDI & EFT)