9. ACCOUNTING
SALES
AR: compares remittance and cash summaries,
updates subsidiary ledger, and update daily
summaries for general
General: compares daily summaries from
treasury and AR, then update general ledger
8. TREASURY
Updates cash records, prepares deposit
slips and collection summaries. Also,
deposit collection to the bank
7. MAIL ROOM
Receives remittance and checks,
prepares list of receipt, then endorse
it to either treasury or AR
6. ACCOUNTING
Inventory: provides cost information on goods
sold then forwards it to general
General: records sale then forwards sales
invoice to AR
Accounts Receivable (AR): updates
subsidiary ledger
Sales-Collection Cycle
1.
Encourages and negotiates with buyers then
prepares sales order and distributes it to
customers, credit, shipping and billing
2. CREDIT
Receive and review sales order and
decides whether to authorize customer
credit, then inform sales if it was
Receip approved or not. After that, if approved,
forwards sales order to warehouse.
ts Revenu 3. WAREHOUSE
e Reviews sales order from credit,
monitor if goods are available and
authorizes its issuance. Following that,
forwards sales order to shipping
4. SHIPPING
Compares sales order from sales and approved
sales order from warehouse and prepares
shipping documents and ships products. Then
notifies sales and forward shipping document
and approved sales order to billing
5. BILLING
Compares sales order from sales, approved sales
order and shipping documents then prepares sales
invoice based on goods shipped
By: Jezza Marie R. Alfanta
Illustrated above are the departments included
in the sales-collection cycle of a Manufacturing
entity and their duties and responsibilities.