SALES ORDER PROCESSING

Receive Order

Girls Planet 999 - Episode 9 - Eng Sub Video - HeroGayab.Net The tasks
associated in receiving and processing a customer order, filling the order and distributing products to
the customer, charging the customer on plan, and properly accounting for the operation are all included
in sales order processes. The sales project occurs when a buyer places an order specifying the type and
amount of merchandise they would like to have. The sales order collects details like the customer's
name, address, and account number, as well as the name, number, and description of the products sold,
along with the quantities and unit prices of each item sold. A record of the sales order is maintained in
the customer open order file for future reference after it has been generated. Customers might also
consult their suppliers to follow up about the progress of their shipments during this moment. When the
order status shifts, such as credit approval, back-order, or shipment, the customer record in the open
order file is modified. As a result of the open order file, customer care personnel can attend to consumer
inquiries quickly and accurately.

Check Credit

The customer's creditworthiness must be validated just before order may be processed further.
The scope and extent of the credit check will be determined by the circumstances of the sale. To
establish a line of credit, for example, new customers may be subjected to a thorough financial check.
Credit checks on subsequent sales may be restricted to ensuring that customers has a tendency to
spend his or her bills and that the present sale doesn't really outweigh the pre-established limit once a
credit limit has been ascertained. The credit approval procedure is an authorization control that should
be handled separately from the sales process. The receive-order function in our conceptual system
transmits the sales order (credit copy) to the check-credit task for approval. By simultaneously issuing
sales order data to relevant tasks, the returned authorized sales order stimulates the continuation of the
sales process.

Pick Goods

The stock release document is forwarded to the warehouse's pick goods function by the receive
order activity. The goods of inventory which must be situated and retrieved from the warehouse shelves
are listed in this document. It also gives warehouse employees authorized permission to release the
designated items. After picking the stock, the order is double-checked for accuracy, and the products are
submitted to the ship goods task together with the verified stock release document. A warehouse
employee modifies the verified stock release to reflect the real cost actually going to the customer if
inventory levels are insufficient to meet the order. The clerk then creates a back-order record, which is
kept on file until the supplier's inventories materialize. Back-ordered items are sent first, followed by
subsequent sales.

Consequently, the warehouse worker updates the stock records to reflect the sales variation.
These stock records are not the same as the formal accounting records that are used to keep track of
inventory assets. They're only used to keep track of inventory in the warehouse. A key principle of
internal control would be disrupted if the warehouse clerk was in charge of asset custody and
accounting record-keeping. The inventory control function, preserves the proper accounting inventory
records.

The shipping department acquires the packing slip and shipping notice from the receive order
function prior to the receipt of the goods and the verified stock release document. The packing slip will
be sent to the customer with the goods to describe the contents of the order. Afterwards, the shipping
notice will be transferred to the billing department as proof that the customer's order was packed and
transported. The date of shipment, the items and quantities actually shipped, the name of the carrier,
and freight charges are all included in this document. The shipping notice is a separate document
prepared within the shipping function in some systems. The shipping clerk confirms the physical
products with the stock release, the packing slip, and the shipping notification after receiving the goods
from the warehouse to ensure that the order is correct. As a result, the ship goods function acts as a
crucial independent verification check point and the last attempt to discover problems before shipment.
The shipping clerk assembles the products, attaches the packing slip, fills out the shipment notice, and
creates the bill of lading. The bill of lading is a legal agreement between the seller and the shipping
business (carrier) for the items to be transported to the customer. The legal ownership and
accountability for items in transit are established by this document. The shipping clerk inputs the
shipment into the shipping log, sends the shipping notification and stock release to the bill-customer
function as confirmation of shipment, and changes the customer's open order file.

Bill Customer

The finalization of the economic event and the point at which the customer should be billed is
marked by the delivery of products. Billing before distribution encourages inefficient processes and
incorrect record keeping. Some elements, such as inventory availability, prices, and delivery charges,
may not be known with certainty when the customer order is created. In the case of back-orders, for
example, suppliers rarely charge clients for things that are out of stock. Billing for things that have not
been delivered causes confusion, harms customer relationships, and necessitates additional work to
correct accounting records. To avoid such issues, the billing function waits for shipping notice before
invoicing. Unit prices, taxes, and freight charges are added to the invoice copy of the sales order just
after items shipped are verified with those purchased. The customer's bill is the finished sales invoice,
which formally represents the charges to the client.

A sales journal is a type of journal that is used to keep track of accomplished sales transactions.
Individual sales invoice information are entered into the journal. These entries are compiled into a sales
journal voucher and forwarded to the general ledger activity at the end of the period. Each journal
voucher denotes a general journal entry and the associated general ledger accounts. This method is
used to input transaction summaries, adjusting entries, and closing entries into the general ledger.
Journal vouchers, when properly validated, are an effective control against improper general ledger
entries. The journal voucher system replaces the formal general journal with a journal voucher file,
which eliminates the requirement for a formal general journal.

Update Inventory Records

The inventory control function uses data from the stock release document to update inventory
subsidiary ledger accounts. Each stock release document reduces one or more inventory accounts'
quantity on hand. The financial worth of the overall inventory reduction is summarized in a journal
voucher and delivered to the general ledger function on a regular basis.

Update Accounts Receivable

The sales order (ledger copy) contains information that is used to update customer entries in
the accounts receivable (AR) subsidiary ledger. Customer names, addresses, current balances, available
credit, transaction dates, invoice numbers, and credits for payments, returns, and allowances are all
included in the AR subsidiary ledger account record for each customer.

Post to General Ledger

Specific account balances are aggregated in a report delivered to the general ledger on a regular
basis. The general ledger function had collected journal vouchers from the billing and inventory control
tasks, as well as an account summary from the AR function, by the end of the transaction processing
period. General ledger accounts include only summary statistics (no supporting detail) and only require
summary posting information because they are used to create financial statements. Second, this data
underpins a critical independent verification control. The AR summary, which is provided by the AR
function on its own, is used to double-check the accuracy of the journal vouchers from billing. The total
debits to AR recorded in the journal vouchers for the transaction period should equal the AR summary
statistics. The general ledger function can discern a variety of mistakes by reconciling these values.
 CASH RECEIPTS
Open Mail and Prepare Remittance Advice

Deposit on the account is payable at some point in the future, as determined by the conditions
of transaction. This upcoming event will be subject to cash receipts processes. They entail receiving and
safeguarding cash, putting it in the bank, matching the payment with the customer and modifying the
correct account, and accurately accounting for and reconciling the transaction's financial information.

An employee in the mail room handles envelopes carrying payments and remittance advices for
consumers. Information needed to serve individual clients' accounts is contained in remittance advices.
Payment date, account number, amount paid, and customer check number are all included. The
remittance advice is only the segment above the perforated line, which the client removes and returns
with the payment. The lower component of the document, in certain systems, is a customer account
that the billing department sends out on a regular basis. In other circumstances, the original customer
invoice mentioned in the sales order procedures could be used. A turnaround document is a type of
remittance instruction. Its importance is most apparent in firms that process large volumes of cash
receipts daily.

The checks and remittance advices are delivered to an administrative clerk, who signs the checks
"For Deposit Only" and confirms the amount on each remittance advice with the matching check. The
clerk then records each check on a remittance list (or cash prelist), which keeps track of any cash
received. The clerk makes three copies of the remittance list in this case. The original copy is submitted
to the record and deposit checks function with the checks. The second copy is sent to the update AR
function with the remittance advices. The third is directed to a process of reconciliation.

Record and Deposit Checks

A cash receipts employee reviews the checks for accuracy and completeness against the prelist.
This identifies any checks that may have been lost or misdirected between the mail room and this
function. The employee registers the check in the cash receipts diary after reconciling the prelist to the
checks. The cash receipts notebook records all cash receipts transactions, including cash sales,
miscellaneous cash receipts, and cash received on account. The clerk then writes a bank deposit sheet
with the amount of the day's receipts and sends it to the bank with the checks. The bank teller checks
the deposit slip and returns it to the company for reconciliation once the money are deposited.

Update Accounts Receivable

The cash receipts employee sums up the journal entries at the end of the day and sends the
following journal voucher entry to the general ledger function. The AR subsidiary ledger uses the
remittance advices to post to the customers' accounts. Changes in account balances are outlined and
submitted to the general ledger function on a regular basis.
Update General Ledger

The general ledger function reconciles the data, posts to the cash and AR control accounts, and
files the journal voucher after receiving the journal voucher and account summary.

Reconcile Cash Receipts and Deposits

A clerk from the controller's office (or an employee not associated with the cash receipts
operations) reconciles cash receipts on a regular basis (weekly or monthly) by comparing the following
documents: (1) a copy of the prelist, (2) bank deposit slips, and (3) relevant journal vouchers.