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Assignment 123

The document describes credit sales processing which includes entering transaction data, updating customer and inventory records, and preparing shipping documents. It also discusses input controls like field checks, validity checks, and closed-loop verification as well as processing controls like data matching and file labels. Output controls mentioned are user review, reconciliation, and data transmission controls.

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Chess Nuts
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80 views1 page

Assignment 123

The document describes credit sales processing which includes entering transaction data, updating customer and inventory records, and preparing shipping documents. It also discusses input controls like field checks, validity checks, and closed-loop verification as well as processing controls like data matching and file labels. Output controls mentioned are user review, reconciliation, and data transmission controls.

Uploaded by

Chess Nuts
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Credit Sales Processing

Each transaction record includes the following data: sales invoice number, customer
account number, inventory item number, quantity sold, sale price, and delivery date.

If the customer purchases more than one product, there will be multiple inventory item
numbers, quantities sold, and prices associated with each sales transaction.

Processing these transactions includes the following steps:


(1) entering and editing the transaction data;
(2) updating the customer and inventory records (the amount of the credit purchase is
added to the customer’s balance; for each inventory item, the quantity sold is subtracted
from the quantity on hand); and
(3) preparing and distributing shipping and/or billing documents.

Input Controls
1. Field Check. Characters in a field are properly typed.
2. Validity Check. Compares data rom transaction file to the master file to verify
existence.
3. Closed-loop verification. Checks accuracy of input data by using it to retrieve and
display other related information (e.g., customer account # retrieves the customer
name)

Processing Controls
1. Data matching. Two or more items must be matched before an action takes place.
2. File labels. Ensures correct and most updated file is used.
3. Concurrent update controls. Prevent error of two or more users updating the same
record at the same time.

Output Controls
1. User Review. Verify reasonableness, completeness, and routed to intended
individual.
2. Reconciliation. Procedures to reconcile to control reports (e.g., general ledger A/R
account reconciled to Accounts Receivable Subsidiary Ledger)
3. Data transmission controls. Comparison made of hash before and after transmission.

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