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7/28/2019 Ac 520 Report
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The Order Entry/Sales
(OE/S)Process
1
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The order entry/sales (OE/S) process includes thefirst four steps in the order-to-cash process1. pre-sales activities2. sales order processing
3. picking and packing the goods4. shipping
Billing and processing the customer payment, aredescribed in Chapter 11, the billing/accounts
receivable/cash receipts process
2
Introduction
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3
The OE/S Process Flowchart
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Control Matrix for OE/S Control Goals of the OE/S Business Process
Control Goals of the Operations Process Control Goals of the Information Process
Ensure effectiveness of operations:
Ensureefficientemploymen
t of resources(people,computers)
Ensuresecurity of resources
(inventory,customer master data)
For sales order inputs(i.e., customer orders),ensure:
For salesorder andinventory
master data,ensure:
For shipping noticeinputs (i.e., shipmentdata), ensure:
For salesorder andinventory
master data,ensure:
Recommended control plans A B C IV IC IA UC UA IV IC IA UC
UA
P-1: Enter customer order close towhere the order is received
P-1 P-1 P-1 P-1 P-1
P-2: Customer credit check P-2 P-2 P-2
P-3: Populate input screens with master data
P-3 P-3 P-3 P-3 P-3 P-3
P-4: Programmed edit checks P-4 P-4 P-4 P-4
P-5: Compare input with master data P-5 P-5 P-5 P-5 P-5
P-6: Preformatted screens P-6 P-6 P-6 P-6
P-7: Online prompting P-7 P-7 P-7 P-7
P-8: Procedures for rejected inputs P-8 P-8 P-8 P-8 P-8 P-8
P-9: Confirm input acceptance P-9 P-9
4
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OE/S Control Matrix, Contd. Control Goals of the OE/S Business Process
Control Goals of the Operations Process Control Goals of the Information Process
Ensure effectiveness of
operations:
Ensure
efficientemployment of resources(people,computer s)
Ensure
security of resources(inventory,customer master data)
For sales order
inputs (i.e.,customer orders),ensure:
For sales
order andinventorymaster data,ensure:
For shipping notice inputs (i.e.,
shipment data), ensure:
For sales
order andinventorymaster data,ensure:
Recommended control plans A B C IV IC IA UC UA IV IC IA UC UA
P-10: One-for-one checking of picking ticket with the goods
P-10 P-10 P-10 P-10 P-10
P-11: Enter shipment data inshipping
P-11 P-11 P-11 P-11
P-12: Turnaround document P-12 P-12 P-12 P-12
P-13: Automated data entry P-13 P-13 P-13
P-14: Independent shippingauthorization
P-14 P-14
P-15: One-for-one checking of goods, picking ticket, sales order
P-15 P-15 P-15
M-1: Independent customer master data maintenance
M-1 M-1 M-1
M-2: Review open sales orders(tickler file)
M-2 M-2
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P-1: Enter customer order close to where the
order is received.P-2: Customer credit check.
P-3: Populate input screens with master data.
P-4: Programmed edit checks.P-5: Compare input data with master data.
P-6: Preformatted screens.
P-7: Online prompting.
P-8: Procedures for rejected inputs.
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P-9: Confirm input acceptance.
P-10: One-for-one checking of picking ticketswith the goods.
P-11: Enter shipment data in shipping.
P-12: Turnaround document (picking ticket).P13: Automated data entry.
P-14: Independent shipping authorization.
P-15: One-for-one checking of goods, pickingticket, sales order.
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M-1: Independent customer master data
maintenance.
M-2: Review open sales orders (tickler file).
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The billing/accounts receivable/cash receipts(B/AR/CR) process is an interacting structure of people, equipment, methods, and controlsdesigned to create information flows and recordsthat accomplish the following:1. Support the repetitive work routines of the credit
department, the cashier, and the accountsreceivable department
2. Support the problem-solving processes of financial managers
3. Assist in the preparation of internal and externalreports
INTRODUCTION
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SYSTEMS FLOWCHART OF THE BILLINGFUNCTION
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P1: Review shipped not billed sales order
P2: Compare the input shipping notice to thesales order master data
P3: Independent billing authorization
P4: check for authorized prices, terms, freight,and discounts
P5: Independent pricing data
P6: Confirm input acceptance
P7: Reconcile input and output batch totals
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P8: Procedures for rejected units
M1: Confirm customer accounts regularly
M2: Computer agreement of batch totals
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SYSTEMS FLOWCHART OF THE CASHRECEIPTS BUSINESS PROCES
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P1: Immediately endorse incoming checksP2: Turnaround documentsP3: Enter cash receipts close to where cash isreceived P4: Edit cash receipts for accuracy P5: Compare input data with master dataP6: Manual agreement of batch totals
P7: Procedures for rejected inputsP8: One-for-one checking of deposit slip and checks.
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M1: Immediately separate checks and
remittance advices
M2: Reconcile bank account regularly
M3: Monitor open accounts receivable