Definition of Terms

Terms Definition

Acknowledgement Receipt A documented verification that goods have

been received or services have been rendered.
Typically, the acknowledgement is indicated
by the recipient's signature on a bill of lading,
an invoice or another form.

Authority-To-Release (ATR) A document that contains the unit and quantity

to be released from the warehouse. This
document is created by the bookkeeper,
verified by the general manager and then sent
to the warehouse clerk to accompany the
release of the unit/s being described in the
document.

Bank Financing Banking refers to that process in which a bank

which is a commercial or government
institution offers financial services that
include lending money, collection of deposits,
issue of currencies and debit cards, and
transaction processing etc

Bank Statement A printed record of the balance in a bank

account and the amounts that have been paid
into it and withdrawn from it, issued
periodically to the holder of the account.

Collection Receipt A support document proving that the cash

generated from the sale has been received by
the seller

Deed of Sale A deed of sale is also called a property title. It

is an authentic deed drafted and signed by a
public officer, generally a notary, which makes
mention of the legal situation of the building
and its nature.

Delivery Receipt A support document proving that the units sold

is delivered to the buyer

General Journal The general journal is the master journal that

all company transactions or journal entries are
recorded in. A typical general journal has at
least five columns: one for the date, account
 titles, posting reference, debit, and credit
columns.

Packing Slip A packing slip is a list of what is included in a

shipment. When we write up the order, we
write up the invoice for pricing, the packing
slip for shipping the finished product, and the
work order showing what needs to be done.

Provisional Receipt A provisional receipt is issued for a transaction

not yet completed, such as the receipt of a
revised form, as proof of it being furnished.
Sales Agent One who is authorized or appointed by a
manufacturer to sell or distribute his products
within a given territory but who is self-
employed, takes title to the goods, and does not
act as agent for a principal.

Sales Invoice A sales invoice can be simply defined as the

request of payment by the customer for goods
sold or services provided the seller.
An invoice generally lists the description and
the quantity of the item sold or service
provided. The document is also a record of
the sale for both the seller and the buyer.

Stencil A device for applying a pattern, design, words,

etc., to a surface, consisting of a thin sheet of
cardboard, metal, or other material from which
figures or letters have been cut out.

Transportation Carrier A person or company that transports goods or

people for any person or company and that is
responsible for any possible loss of the goods
during transport.
Roles and Responsibilities
TMSQ is a merchandising company. The management is composed of few personnel and
so it is inevitable for some functions to be performed by the same people concurrently. The list of
roles and responsibilities below is arranged based on the order of appearance in the revenue cycle.

 Sales Agent
 General manager
 Bookkeeper
 Warehouse clerk

Sales Agent

 Posts advertisements on online selling sites.

 Receives orders through phone calls and online
 Requests documents necessary for credit checking such as the entity’s business permit, two
valid identification cards and the bank statement for the last three months.

General manager
 Decides on the acceptance of the order based on the credit standing of the company.
 Receives cash payment from customer
 Maintains record of inventory
 Reconciles the daily cash summary and daily cash deposit
 Negotiates terms of sale with prospective buyers

Bookkeeper
 Receives notification from the bank that the customer already paid the amount due.
 Obtains and document a copy of the check
 Deposits check in the bank
 Prepares the daily cash summary and updates the general journal
 Prepares sales invoice
 Prepares ATR and sends it to the warehouse clerk
 Maintains and updates the master data for customer

Warehouse clerk
 Maintains records of inventory
 Safeguards the inventory
 Reviews the ATR for the release of inventory

Sales and credit department

Receiving and processing of orders
 Sales agents of the company receive orders through phone calls and online.
  Sales agents are also request documents necessary for credit checking such as the entity’s
business permit, two valid identification cards and the bank statement for the last three
months.
 General manager decides on the acceptance of the order based on the credit standing of the
company.
 The mode of payment comes in two forms, through bank financing or cash payment. If
payment is through bank financing, bank’s approval is necessary to process the sale
transaction.
Treasury and AR Control
Cash Receipts
 It is the company’s policy that payment be made first before the delivery takes place.
 If cash payment is exercised, the general manager is the only authorized personnel to
receive the payment.
 If bank financing is exercised and the customer has already sent the payment to the bank,
the bank will notify the company through the bookkeeper that payment is already received.
 The bookkeeper is responsible for obtaining and documenting a copy of the check.
 Once a check is received, it is to be deposited immediately on the same day.
 The bookkeeper prepares the daily cash summary and updates the general journal.
Billing and AR Control
Invoicing
 After receiving the payment, a sales invoice is then prepared.
Warehouse and Shipping
Delivery and Distribution
 The bookkeeper is the one responsible for preparing and sending the ATR (Authorization
To Release) to the warehouse clerk. The ATR is used to authorize the release of inventories
to be sold.
 The items may either be picked up from the warehouse or the company may enter into a
contract with a transportation carrier- in which case the carrier issues an acknowledgment
receipt for the goods to be delivered.
 A copy of sales invoice and a packing slip are handed to the customers when goods are
picked- up from the warehouse. Otherwise, they accompany the goods when they are
delivered through a transportation carrier.
 A record of change in the inventory is maintained independently by two separate parties,
the bookkeeper and the warehouse man.
Master Data Team
 The company maintains a master list of its regular customers.
 The master list is updated by the book keeper whenever a new buyer passes the credit
assessment.

Receive customer’s information

Sales orders are taken by sales agents through phone calls and online.
Receive necessary documents
Book shipment services
Bill customer
Update billing record
Cash receipt
Record and deposit checks
Reconcile cash receipts and deposits
Master data maintenance
Update master data records
Update accounting records