Sales Credit

Department Section
Processes: Processes:
1.Received Customer Order 3. Received 4 copies Sales Order from sales dept.
2. Prepare/create Sales Order- transfer to credit section (4 copies) 4.Using the sales order received, Verify Credit Standings
5. Received 3 verified Sales Order copy -from credit dept. of customer. After verification send back the 3 sales order
6. Create: to Sales dept.
A. Stock release 5 copies(4 for warehouse, 1 file copy)
B. Packing Slip 3 copies ( 2 for Shipping, 1 file copy)
C. Shipping notice 3 copies (2 for shipping, 1 file copy)
D. Ledger copy 3 copies /update ( 2 for billing, 1 file copy)

7. Transfer 1 verified sales order and Ledger copy to Billing

Documents Created/Verified/ Update/Reconcile Documents Created/Verified/ Update/Reconcile

2. Create Sales Order (4 Copies) 4. Verified 4 copies Sales Order
6. Create: Using the verified sales order from credit section
A. Stock release 5 copies(4 for warehouse, 1 file copy)
B. Packing Slip 3 copies ( 2 for Shipping, 1 file copy)
C. Shipping notice 3 copies (2 for shipping, 1 file copy)
D. Ledger copy 3 copies /update ( 2 for billing, 1 file copy)

Documents and items received Documents and items received

1. Customer Order 3. 4 copies Sales Order from sales dept.
5. verified 4 copies Sales Order copy -from credit dept.

Documents and items Transferred: Documents and items Transferred:

2. Sales Order ( 4 copies to credit section) 4. 4 copies Sales Order Verified (transfer to sales dept.)
6. Create:
A. Stock release (4 copies for warehouse)
B. Packing Slip ( 2 copies for Shipping)
C. Shipping notice (2 copies for shipping)
D. Ledger copy ( 2 copy for billing)
7. Transfer 1 verified sales order and Ledger copy to Billing

File Copies File Copies

Customer order
1 Copy Sales order (credit Copy)
1 Copy Sales order-customer copy
1 copy stock release-file copy
1 copy packing slip -file copy
1 copy-shipping notice -file copy
1 ledger- file copy
1 Copy sales order invoice copy- file copy
 Billing Warehouse
Section
Processes: Processes:
8. Received 1 copy of sales order and 1 copy of Ledger copy 10. Receive Stock release (4copies from sales dept.)
from sales dept. (ref. #7 doc, transferred) (ref# 6A doc transfer)
9. Received 2 ledger copy from sales dept. 12. Verified the stock release given by sales dept.
(ref #6D doc. transferred) (3copies)
Received 13. Transfer 3 copies of verified stock release to
16. 2 copy of completed/reconciled shipping notice from shipping shipping dept. together with the goods ordered
1 copy of verified/reconciled stock release to billing from shipping by customer
17. Reconcile the item received in # 8 , 9, and 16, add prices, update
ledger copy
18. Update or record the transaction to sales journal and create
1 copy of journal voucher

Documents Created/Verified/ Update/Reconcile Documents Created/Verified/ Update/Reconcile

17. A. reconciled 1 copy of sales order 12. Verified the stock release given by sales dept.
B. Updated 2 ledger copy (4copies)
C. 1 copy of shipping notice reconciled in billing dept.
D. 2 copy of stock release reconciled in billing dept.
18. Update or record the transaction to sales journal and create
1 copy of journal voucher

Documents and items received Documents and items received

8. Received 1 copy of sales order and 1 copy of Ledger copy 10. Receive Stock release (4 copies from sales dept.)
from sales dept. (ref. #7) (ref# 6A doc transfer)
9. Received 2 ledger copy from sales dept.
(ref #6D doc. transferred)
16. 1 copy of completed/reconciled shipping notice from shipping
2 copy of verified/reconciled stock release to billing from shipping

Documents and items Transferred: Documents and items Transferred:

16. Transfer 1 reconciled stock release to inventory control 13. Transfer 3 copies of verified stock release to
17. Transfer 1 updated ledger copy to Accounts receivable shipping dept. together with the goods ordered
18. Transfer 1 copy of journal voucher to General Ledger. by customer

File Copies File Copies

17. A. reconciled 1 copy of sales order 12. 1 File copy of verified stock release
B. Updated 1 ledger copy
C. 1 copy of shipping notice reconciled in billing dept.
D. 1 copy of stock release reconciled in billing dept.
 Shipping Inventory Control

Processes: Processes:
11. Received 2 copies of Shipping Notice 19. Received 1 copy of stock release coming
and 2 copies of packing slip from sales dept. from billing dept.( see doc transfer # 16)
(ref#6 B and C doc. Transferred) 20. Using the stock release
14. Receive 3 copies of verified stock release from Update inventory subsidiary ledger
shipping dept. including the goods ordered by Create journal voucher- transfer to General
customer ledger
15. Reconcile the items received in # 11 And 14.
Update or complete the shipping notice.
Prepare 3 copies of bill of lading.
A. Transfer 1 copy of verified/ reconciled stock release
to billing
B. Transfer 1 copy of completed/ reconciled shipping notice
to billing
Log the shipment of goods before delivery to common
carrier.
C. Deliver the goods to customer through common carrier
D. transfer 2 copies bill of lading to common carrier together
with 1 copy reconciled packing slip.

Documents Created/Verified/ Update/Reconcile Documents Created/Verified/ Update/Reconcile

15. A. 2 copies of shipping notice 20. Using the stock release
B. 3 copies of verified stock release Update inventory subsidiary ledger
C. Goods ordered by customer Create journal voucher
D. 3 copies of bill of lading (created)

Documents and items received Documents and items received

11. Received 2 copies of Shipping Notice 19. Received 1 copy of stock release coming
and 2 copies of packing slip from sales dept. from billing dept.( see doc transfer # 16)
(ref#6 B and C doc. Transferred)
14. Receive 3 copies of verified stock release from
shipping dept. including the goods ordered by
customer

Documents and items Transferred: Documents and items Transferred:

15. A. 1 copy of completed/reconciled shipping notice to billing 20. Journal voucher transfer to General ledger
B. 2 copy of verified/reconciled stock release to billing
C. Deliver the goods to customer
D. transfer 2 copies bill of lading to common carrier together
with 1 copy reconciled packing slip.

File Copies File Copies

15. 1 copy shipping notice 20. 1 stock release
1 copy stock release
1 copy packing slip
1 copy of Bill of Lading
 Accounts Receivable
Processes:
21. Receive Ledger copy from Billing.
(see doc. Transfer #17)
22. Using Ledger copy from billing
Update AR Subsidiary Ledger
Prepare AR Summary-transfer to General ledger
Documents Created/Verified/ Update/Reconcile
22. Updated AR Subsidiary Ledger
Prepare AR Summary
Documents and items received
21. Receive Ledger copy from Billing.
(see doc. Transfer #18)
Documents and items Transferred:
22. AR Summary -transfer to General ledger
File Copies
22. Ledger Copy
General Ledger
Processes:
23. Receive Journal voucher from billing
(see doc. Transfer #18)
24. Receive Journal voucher from inventory control
(see doc. Transfer #20)
25.. Receive AR summary Accounts Receivable
(see doc. Transfer #21)
26. Update General ledger using the items above
Documents Created/Verified/ Update/Reconcile
26. Update General ledger using the items above
Documents and items received
23. Receive Journal voucher from billing
(see doc. Transfer #18)
24. Receive Journal voucher from inventory control
(see doc. Transfer #20)
25.. Receive AR summary Accounts Receivable
(see doc. Transfer #21)
Documents and items Transferred:
File Copies
Ar summary
Journal voucher-billing
Journal voucher-inventory control
 Receiving
Processes:
1. Receive goods or items returned by customer.
2. Prepare 2 copies of return slip.
3. Forward the goods or items returned together with 1 copy of
return slip to warehouse.
4. Forward 1 copy of return slip to Sales.
Documents Created/Verified/ Update/Reconcile
2. Prepare 2 copies of return slip.
Documents and items received
1. Receive goods or items returned by customer.
Documents and items Transferred:
3. Forward the goods or items returned together with 1 copy of
return slip to warehouse.
4. Forward 1 copy of return slip to Sales.
File Copies
Sales
Processes:
5. Receive 1 copy return slip from Receiving.
6. Prepare 2 copies of credit memo.
7. Forward 1 copy of credit memo to Billing
Documents Created/Verified/ Update/Reconcile
6. Prepare 2 copies of credit memo.
Documents and items received
5. Receive 1 copy return slip from Receiving.
Documents and items Transferred:
7. Forward 1 copy of credit memo to Billing
File Copies
1 copy of credit memo
Billing
Section
Processes:
8. Receive a copy of credit memo from Sales.
9. Using credit memo Update Journal, Sales Return and Allowances
10. Prepare a copy of journal voucher.
11. Forward the prepared copy journal voucher to General Ledger.
12. Forward the copy of credit memo to Inventory control
Documents Created/Verified/ Update/Reconcile
9. Using credit memo Update Journal, Sales Return and Allowances
10. Prepare a copy of journal voucher.
Documents and items received
8. Receive 1 copy of credit memo from Sales.
Documents and items Transferred:
11. Forward the prepared copy journal voucher to General Ledger.
12. Forward the copy of credit memo to Inventory control
File Copies
 Inventory Control
Processes:
13. Receive the copy of Credit Memo from Billing.
14. Using the credit memo, update the inventory
records the Inventory Subsidiary Ledger.
15. Prepare a copy of journal voucher
16. Forward the copy of credit memo to
Accounts Receivable.
17. Forward the copy of journal voucher to General
Ledger.
Documents Created/Verified/ Update/Reconcile
14. Using the credit memo, update the inventory
records the Inventory Subsidiary Ledger.
15. Prepare a copy of journal voucher
Documents and items received
13. Receive the copy of Credit Memo from Billing.
Documents and items Transferred:
16. Forward the copy of credit memo to
Accounts Receivable.
17. Forward the copy of journal voucher to General
Ledger.
File Copies
Accounts Receivable General Ledger
Processes: Processes:
18. Receive the copy of credit memo from inventory control. 22.. Receive a copy of journal voucher from
19. Using the credit memo, Update AR by updating Billing.
the AR subsidiary ledger. 23. Receive a copy of journal voucher from
20. Prepare AR summary. Inventory Control.
21. Forward the AR summary to General Ledger. 24. Receive a copy of AR summary from
Accounts Receivable.
25. Update the General Ledger
Documents Created/Verified/ Update/Reconcile Documents Created/Verified/ Update/Reconcile
19. Using the credit memo, Update AR by updating 25. Update the General Ledger
the AR subsidiary ledger.
20. Prepare AR summary.
Documents and items received Documents and items received
18. Receive the copy of credit memo from inventory control. 22.. Receive a copy of journal voucher from
Billing.
23. Receive a copy of journal voucher from
Inventory Control.
24. Receive a copy of AR summary from
Accounts Receivable.
Documents and items Transferred: Documents and items Transferred:
21. Forward the AR summary to General Ledger.
File Copies File Copies
1 copy of credit memo journal voucher from Billing
journal voucher from Inventory Conrol
AR Summary from Accounts Receivable