Lecture 4Lecture 4The The

Revenue Revenue

CycleCycle

Objectives for Lecture 4Objectives for Lecture 4 Tasks performed in the revenue cycle, regardless of Tasks performed in the revenue cycle, regardless of

the technology usedthe technology used The functional departments involved in revenue cycle The functional departments involved in revenue cycle

activities and the flow of revenue transactions through activities and the flow of revenue transactions through the organizationthe organization

The documents, journals, and accounts that provide The documents, journals, and accounts that provide audit trails, promote the maintenance of records, audit trails, promote the maintenance of records, support decision making, and sustain financial support decision making, and sustain financial reportingreporting

Risks associated with the revenue cycle and the Risks associated with the revenue cycle and the controls that reduce these riskscontrols that reduce these risks

The operational and control implications of technology The operational and control implications of technology used to automate and reengineer the revenue cycleused to automate and reengineer the revenue cycle

R E V E N U E C Y C L E(S U B S Y S T E M )

S a les O rd e r

B illin g / A cco u n tsR ece iv ab le

C ash R ece ip ts /C o llec tio n s

S h ip p in g

1

6

4 /5

3

C red it / C u s to m erS erv ice

2

Journal Vouchers/EntriesJournal Vouchers/EntriesHow do we get them? How do we get them?

Billing DepartmentBilling Department prepares a journal voucher:prepares a journal voucher:Accounts ReceivableAccounts Receivable DRDR SalesSales CRCR

Inventory ControlInventory Control Dept. prepares a journal voucher:Dept. prepares a journal voucher:Cost of Goods SoldCost of Goods Sold DRDR InventoryInventory CRCR

Cash ReceiptsCash Receipts prepares a journal voucher: prepares a journal voucher:CashCash DRDR Accounts ReceivableAccounts Receivable CRCR

Revenue Cycle (Subsystem) DatabasesRevenue Cycle (Subsystem) Databases

Master filesMaster files customer master filecustomer master file accounts receivable master fileaccounts receivable master file merchandise inventory master merchandise inventory master

filefile

Transaction and Open Transaction and Open Document FilesDocument Files sales order transaction filesales order transaction file

open sales order transaction open sales order transaction filefile

sales invoice transaction filesales invoice transaction file cash receipts transaction filecash receipts transaction file

• Other Files– shipping and price data

reference file– credit reference file (may

not be needed)– salesperson file (may be a

master file)– Sales history file– cash receipts history file– accounts receivable

reports file

Customer

CustomerOrder

1

TakeCustomer

Order

4

ShipGoods

Sal

es In

form

atio

n

2

CheckCredit

3

PickGoodsfromShelf

5

BillCustomers

Shi

p

Goo

ds

Shipping Information

Bill Customer

Customer Information

Inventory Information

7

UpdateInventoryRecords

8

Post toGeneralLedger

InventorySummary

Sales Summary

6

UpdateAccounts

ReceivableRecords

CustomerAccounts

Control Accounts

Inventory Records

Sales Journal

Credit Records

MAY 2005

Page 1

FIGURE 4-1 DFD of Sales Order Processing System

AR Summary

Overview of the Manual Sales Order Processing System

The sales process begins with a The sales process begins with a customer placing an order customer placing an order via the sales department. via the sales department. The sales department captures the essential details on a The sales department captures the essential details on a

sales order formsales order form.. The transaction is The transaction is authorizedauthorized by obtaining credit approval by obtaining credit approval

by the credit department.by the credit department. The The sales information is released sales information is released to:to:

billingbilling warehouse (warehouse (stock release stock release oror picking ticket picking ticket)) shipping (shipping (packing slip packing slip and and shipping noticeshipping notice))

Overview of the Manual Sales Order Overview of the Manual Sales Order Processing System Processing System

The The merchandise is picked merchandise is picked from the Warehouse and sent to from the Warehouse and sent to Shipping. The stock records are adjusted.Shipping. The stock records are adjusted.

The merchandise is shipped. The Shipping Department reconciles The merchandise is shipped. The Shipping Department reconciles the products received from the warehouse with the sales information the products received from the warehouse with the sales information received. The shipping information is sent to Billing. The goods, received. The shipping information is sent to Billing. The goods, along with the packing slip and a along with the packing slip and a bill of lading, , prepared by prepared by Shipping, are sent to the customer.Shipping, are sent to the customer.

Billing compiles and reconciles the relevant facts and issues an Billing compiles and reconciles the relevant facts and issues an invoice to the customer and updates the sales journal. The invoice to the customer and updates the sales journal. The information is transferred to:information is transferred to: accounts receivableaccounts receivable inventory controlinventory control

Accounts Receivable records the information in the Accounts Receivable records the information in the customer’s account in the customer’s account in the accounts receivable subsidiary ledger.

Inventory Control adjusts the Inventory Control adjusts the inventory subsidiary ledger.. Periodically, Billing, Accounts, Receivable, and Periodically, Billing, Accounts, Receivable, and

Inventory Control submits summary information, Inventory Control submits summary information, typically in the form of a typically in the form of a journal voucher to the General to the General Ledger department. The General Ledger department Ledger department. The General Ledger department reconciles this data and posts to the control accounts in reconciles this data and posts to the control accounts in the general ledger.the general ledger.

Overview of the Manual Sales Order Processing System

1SortMail

Customer

Bank

2

UpdateCash

ReceiptsRecords

3

UpdateAccounts

ReceivableRecords

4Post toGeneralLedger

CustomerAccounts

CashReceiptsJournal

ControlAccounts

CustomerAccount

Remittance Advice

Check andRemittance

AdviceAR Summary

Cash ReceiptsSummary

Check

Deposit Checks

Figure 4-10

DFD CashReceiptsSystem

Overview of the Manual Cash Overview of the Manual Cash Receipts SystemReceipts System

The customer’s The customer’s checks and remittance advices checks and remittance advices are received in the Mail Room. A mail room clerk are received in the Mail Room. A mail room clerk prepares a prepares a cash prelist cash prelist and sends the list along and sends the list along with the checks to Cash Receipts. A copy of the with the checks to Cash Receipts. A copy of the cash prelist is sent to Accounts Receivable and the cash prelist is sent to Accounts Receivable and the Controller.Controller.

The Cash Receipts department verifies the The Cash Receipts department verifies the accuracy and completeness of the checks, updates accuracy and completeness of the checks, updates the the cash receipts journalcash receipts journal, prepares a , prepares a deposit slipdeposit slip, , and prepares a and prepares a journal voucher journal voucher and sends to and sends to General Ledger.General Ledger.

Overview of the Manual Cash Overview of the Manual Cash Receipts SystemReceipts System

The Accounts Receivable department posts from the The Accounts Receivable department posts from the remittance advices to the remittance advices to the accounts receivable accounts receivable subsidiary ledgersubsidiary ledger. Periodically, a . Periodically, a summarysummary of the of the postings is sent to General Ledger.postings is sent to General Ledger.

The General Ledger department reconciles the journal The General Ledger department reconciles the journal voucher from Cash Receipts with the summaries from voucher from Cash Receipts with the summaries from accounts receivable and updates the accounts receivable and updates the general ledger general ledger control accountscontrol accounts. .

The Controller reconciles the bank accounts.The Controller reconciles the bank accounts.

Summary of Internal ControlsSummary of Internal Controls

Authorization ControlsAuthorization Controls

Proper authorization of transactions (documentation) Proper authorization of transactions (documentation) should occur so that should occur so that only valid transactions only valid transactions get processed.get processed.

Within the revenue cycle, authorization should take place Within the revenue cycle, authorization should take place when:when: a sale is made on credit (authorization)a sale is made on credit (authorization) a cash refund is requested (authorization)a cash refund is requested (authorization) posting a cash payment received to a customer’s account posting a cash payment received to a customer’s account

(cash pre-list) (cash pre-list)

Segregation of FunctionsSegregation of FunctionsThree RulesThree Rules

1.1. Transaction authorization should be Transaction authorization should be separate from transaction processing.separate from transaction processing.

2.2. Asset custody should be separate from asset Asset custody should be separate from asset record-keeping.record-keeping.

3.3. The organization should be so structured The organization should be so structured that the perpetration of a fraud requires that the perpetration of a fraud requires collusion between two or more individuals.collusion between two or more individuals.

Segregation of FunctionsSegregation of Functions

Sales Order ProcessingSales Order Processing credit authorization separate from SO processingcredit authorization separate from SO processing inventory control separate from warehouseinventory control separate from warehouse accounts receivable sub-ledger separate from general ledger accounts receivable sub-ledger separate from general ledger

control accountcontrol account Cash Receipts ProcessingCash Receipts Processing

cash receipts separate from accounting recordscash receipts separate from accounting records accounts receivable sub-ledger separate from general ledgeraccounts receivable sub-ledger separate from general ledger

SupervisionSupervision Supervision of Supervision of

employees employees serves as a serves as a deterrent to deterrent to dishonest acts dishonest acts and is and is particularly particularly important in the important in the mailroommailroom. .

Accounting RecordsAccounting Records With a properly maintained audit trail, it is With a properly maintained audit trail, it is

possible to track transactions through the possible to track transactions through the systems and to find where and when errors systems and to find where and when errors were made: were made: pre-numbered source documentspre-numbered source documents special journalsspecial journals subsidiary ledgerssubsidiary ledgers general ledgergeneral ledger filesfiles

Access ControlsAccess Controls Access to assets and information (accounting Access to assets and information (accounting

records) should be limited.records) should be limited. Within the revenue cycle, the assets to protect Within the revenue cycle, the assets to protect

are are cashcash and and inventoriesinventories and access to records and access to records such as the such as the accounts receivable subsidiary accounts receivable subsidiary ledgerledger and and cash journalcash journal should be restricted. should be restricted.

Independent VerificationIndependent Verification

Physical procedures as well as record-keeping should be Physical procedures as well as record-keeping should be independently reviewed at various points in the system to independently reviewed at various points in the system to check check for accuracy and completenessfor accuracy and completeness:: shipping verifies the goods sent from the warehouse are shipping verifies the goods sent from the warehouse are

correct in type and quantitycorrect in type and quantity warehouse reconciles the stock release document (picking warehouse reconciles the stock release document (picking

slip) and packing slip slip) and packing slip billing reconciles the shipping notice with the sales invoicebilling reconciles the shipping notice with the sales invoice general ledger reconciles journal vouchers from billing, general ledger reconciles journal vouchers from billing,

inventory control, cash receipts, and accounts receivableinventory control, cash receipts, and accounts receivable

Automating the Revenue CycleAutomating the Revenue Cycle Authorizations and data access can be performed Authorizations and data access can be performed

through computer screens. through computer screens. There is a decrease in the amount of paper.There is a decrease in the amount of paper. The manual journals and ledgers are changed to disk The manual journals and ledgers are changed to disk

or tape transaction and master files. or tape transaction and master files. Input is still typically from a hard copy document and Input is still typically from a hard copy document and

goes through one or more computerized processes. goes through one or more computerized processes. Processes store data in electronic files (the tape or Processes store data in electronic files (the tape or

disk) or prepare data in the form of a hardcopy report.disk) or prepare data in the form of a hardcopy report.

Automating the Revenue CycleAutomating the Revenue Cycle

Revenue cycle programs Revenue cycle programs can include: can include: formatted screens for collecting data formatted screens for collecting data edit checks on the data entered edit checks on the data entered instructions for processing and storing the instructions for processing and storing the

datadata security procedures (passwords or user security procedures (passwords or user

IDs) IDs) steps for generating and displaying output steps for generating and displaying output

To understand files, you must consider the To understand files, you must consider the record design and layoutrecord design and layout. .

The documents and the files used as input The documents and the files used as input sources must contain the data necessary to sources must contain the data necessary to generate the output reports.generate the output reports.

Customer

CustomerOrder

PrepareSalesOrder

CreditCopy

Checkcredit

File

ShippingNotice

File

Sales Credit Computer Department Warehouse Shipping

FIGURE 4-15 Batch Sales Order System

Cutomer

Credit Copy

Stock Rel

Packing SlipShippingNotice

File Copy

CustomerOrder

Order

CreditCopy

ShippingNotice

Keystroke

Sales OrderFile

Edit Run

Edited SOFiles

DirectAccessUpdate

SalesJournal

CustomerInvoice

ManagementReports

Customer

Management

GLFile

InventoryFile

ARFile

StockRelease

Pick Goodsand send to

shipping

StockRelease

File Copy

Packing Slip

StockRelease

ReconcileGoods andDocument,

sign ShippingNotice, and

Prepare BOL

ShippingNotice

StockRelease

File Copy

BOL

BOL

PackingSlip

BOL

Customer

Large-Scale Computer-Based Large-Scale Computer-Based Accounting SystemsAccounting Systems

Two different types of CBAS:Two different types of CBAS: automation involves using technology to automation involves using technology to

improve the efficiency and effectiveness improve the efficiency and effectiveness of a task.of a task.

reengineering greatly reduces the cost of reengineering greatly reduces the cost of business by business by identifying and streamlining identifying and streamlining taskstasks. Must rethink business processes and . Must rethink business processes and firm organization.firm organization.

Case In Point: Wal-MartCase In Point: Wal-Mart At Wal-Mart, whenever a customer makes a At Wal-Mart, whenever a customer makes a

purchase, the information goes directly to the purchase, the information goes directly to the supplier. Sales are automatically converted supplier. Sales are automatically converted into manufacturing schedules and delivery into manufacturing schedules and delivery instructions.instructions. Is this automation or re-engineering?Is this automation or re-engineering?

Case In Point: Wal-MartCase In Point: Wal-Mart Directly linking sales and expenditure cyclesDirectly linking sales and expenditure cycles Cut-out wholesale suppliers between Cut-out wholesale suppliers between

manufacturers and Wal-Mart--saved 20-30% manufacturers and Wal-Mart--saved 20-30% on retail priceon retail price

Requires real-time recording, communications, Requires real-time recording, communications, and processingand processing

Criticisms of Large Computer Criticisms of Large Computer SystemsSystems

Multiple overlapping systems ?Multiple overlapping systems ? large number of separate applications in each large number of separate applications in each

functional area, e.g., production, marketing, and functional area, e.g., production, marketing, and finance (aka “stovepiping”)finance (aka “stovepiping”)

Subset of the process?Subset of the process? Each application captures and processes data about Each application captures and processes data about

one aspect of the business events. one aspect of the business events. no integrated organization-wide viewno integrated organization-wide view

Criticisms of Large Computer Criticisms of Large Computer SystemsSystems

Data too aggregated?Data too aggregated? Data is captured at and stored in too high a level of Data is captured at and stored in too high a level of

summarization. summarization. Only one view per user?Only one view per user? Users are restricted to only one view of the business--the financial Users are restricted to only one view of the business--the financial

view.view. Processing delays?Processing delays? Data is not captured or processed in real time, causing significant Data is not captured or processed in real time, causing significant

and costly delays.and costly delays.

Reengineering Sales Order Processing Using Reengineering Sales Order Processing Using Real-Time TechnologyReal-Time Technology

Manual procedures and physical documents are Manual procedures and physical documents are replaced by interactive computer terminals.replaced by interactive computer terminals.

Real time input and output occurs, with some master Real time input and output occurs, with some master files still being updated using batches.files still being updated using batches. real-time real-time - entry of customer order, printout of - entry of customer order, printout of

stock release, packing slip and bill of lading; stock release, packing slip and bill of lading; update of credit file, inventory file, and open sales update of credit file, inventory file, and open sales orders fileorders file

batch batch - printout of invoice, update of closed sales - printout of invoice, update of closed sales order (journal), accounts receivable and general order (journal), accounts receivable and general ledger control accountledger control account

CustomerOrder

Terminal

GL ControlAccounts

Invoice

CommonCarrier

Management

Closed SalesOrders

(Journal)

Open SalesOrder

CustomerData

InventorySubsidiary

Sales OrderSystem

GL Update andBilling System

ManagementReport

Terminal /Printer

Terminal /Printer

Stock ReleaseReconcile

Goodswith

Packingslip andPrepareBill ofLading

Packing Slip

Terminal /Printer

Stock Release

PS

BOL

Bill ofLading

File

Customer Sales Computer Operations Warehouse Shipping

May 2005

Page 1

FIGURE 4-17 Real-Time Sales Order System

BatchProcess

Advantages of Real-Time Advantages of Real-Time ProcessingProcessing

Shortens the cash cycle Shortens the cash cycle of the firm by reducing of the firm by reducing the time between the order date and billing date the time between the order date and billing date

Better inventory management Better inventory management which can lead which can lead to a competitive advantageto a competitive advantage

Fewer clerical errorsFewer clerical errors, reducing incorrect items , reducing incorrect items being shipped and bill discrepanciesbeing shipped and bill discrepancies

Reduces the amount of expensive paper Reduces the amount of expensive paper documents and their storage costsdocuments and their storage costs

Reengineered Cash Receipts Reengineered Cash Receipts ProcessProcess

The The mail room mail room is a frequent target for reengineering. is a frequent target for reengineering. Companies send their customers preprinted envelopes and Companies send their customers preprinted envelopes and

remittance advices. remittance advices. Upon receipt, these envelopes are set aside and information on Upon receipt, these envelopes are set aside and information on

the envelope is scanned and provides a control procedure the envelope is scanned and provides a control procedure against theft.against theft.

Machines are also available to open the envelopes and scan the Machines are also available to open the envelopes and scan the remittance advices and checks and separate the checks.remittance advices and checks and separate the checks.

Artificial intelligence may be used to read handwriting, such as Artificial intelligence may be used to read handwriting, such as remittance amounts and signatures.remittance amounts and signatures.

Terminal

Gen LedgerAccounts

Customer

Bank

AccountReceivable

JournalVouchers

Cash RecTrans File

Cash RecJournal

Data EntryProgram

File

Mail room Cash Receipts Accounts Receivable Data Processing Controller Office

May 2005

Page 1

FIGURE 4-18 Automated Cash Receipts System

Cheque

RemittanceAdvice

ReconcilesCheque withthe RA andPrepares

RemittanceList

Remittacne List

Remittance List

RemittanceList

Cheque

RemittanceAdvice

Cheque

RemittanceList

RecordCash

Receipt

Deposit Slip

Deposit Slip

Deposit Slip

Cheque

RemittanceList

Cheque

RemittanceList

A

UpdateAR Ledger

Terminal

B

Remittance List

RemittanceAdvice

Review

TransactionListing of AR

Update

File

A B

Master FileUpdate Run

TransactionListing of AR

Update

ManagementReport

Management

RemittanceList

Bank

DepositSlip

Clerk ReconcilesDeposit slip frombank and Cash

Receipts

Point-of-Sale SystemsPoint-of-Sale Systems

Point of sale systems are used extensively in retail Point of sale systems are used extensively in retail establishments. establishments. Customers pick the inventory from the shelves and take Customers pick the inventory from the shelves and take

them to a cashierthem to a cashier.. The clerk scans the universal product code (UPC). The clerk scans the universal product code (UPC).

The POS system is connected to an inventory file, The POS system is connected to an inventory file, where the price and description are retrieved. where the price and description are retrieved. The inventory levels are updated and reorder needs can The inventory levels are updated and reorder needs can

immediately be detectedimmediately be detected. .

Point-of-Sale Systems The system computes the amount due. Payment is either The system computes the amount due. Payment is either

cash, check, ATM or credit card in most cases.cash, check, ATM or credit card in most cases. no accounts receivablesno accounts receivables

If checks, ATM or credit cards are used, an on-line link to If checks, ATM or credit cards are used, an on-line link to receive approval is necessary. receive approval is necessary.

At the At the end of the day end of the day or a cashier’s shift, the money and or a cashier’s shift, the money and receipts in the drawer are reconciled to the internal cash receipts in the drawer are reconciled to the internal cash register tape or a printout from the computer’s database.register tape or a printout from the computer’s database. cash over and under must be recorded cash over and under must be recorded

Menu-Driven Control Program

CashDisbursementModule

GeneralLedgerModule

InventoryControlModule

SalesOrder

Module

Purchases andAccounts Payablemodule

CashReceiptsModule

PayrollModule

PC Accounting System Modules

May 2005

Page 1

FIGURE 4-20

GeneralLedger

CashReceiptsJournal

CashCredit

Approval

Credit Card

Register

Receipt

Credit CardVoucher

Credit CardVoucher

Credit CardVoucher

Tape

A

Inventory

BatchUpdate

SalesJournal

Record CashReceipts

JournalVouchers

CashA

Credit CardVoucher

Tape

ReconcileCash withRegister Tapeand PrepareDeposit Slip

UpdateInventoryand Recordsale

ReconciliationForm

Employee

Cash

Deposit Slip

Tape

Register

Deposit Slip T

ape

ReconciliationForm

File

Cash

Deposit Slip

Bank

End-of-Day Process

EnterCashReceipts

Customer Sales Department Computer Operations Treasury

May 2005

Page 1

FIGURE 4-19 Point-of-Sale System

Reengineering Using EDIReengineering Using EDI EDI helps to EDI helps to expedite transactionsexpedite transactions.. The customer’s computer: The customer’s computer:

determines that inventory is neededdetermines that inventory is needed selects a supplier with whom the business has a selects a supplier with whom the business has a

formal business agreementformal business agreement dials the supplier’s computer and places thedials the supplier’s computer and places the order order

The exchange is completely automated.The exchange is completely automated. no human intervention or managementno human intervention or management

EDI System

PurchasesSystem

EDI TranslationSoftware

EDI TranslationSoftware

Communications Software

Communications Software

OtherMailbox

OtherMailbox

CompanyA’s mailbox

CompanyB’s mailbox

Sales OrderSystem

ApplicationSoftware

ApplicationSoftware

Direct Connection

VAN

Company A Company B

Reengineering Using the InternetReengineering Using the Internet Typically, Typically, no formal business agreements no formal business agreements

exist as they do in EDI.exist as they do in EDI. Most orders are made with Most orders are made with credit cardscredit cards.. Mainly done with Mainly done with e-maile-mail systems, and thus a systems, and thus a

turnaround time is necessary turnaround time is necessary Intelligent agents Intelligent agents are needed to eliminate this are needed to eliminate this

time lag.time lag. SecuritySecurity and control over data is a concern and control over data is a concern

with Internet transactions.with Internet transactions.

Control Considerations forControl Considerations forComputer-Based SystemsComputer-Based Systems

Authorization Authorization - in real-time systems, - in real-time systems, authorizations are automated: programmed authorizations are automated: programmed decision rules must be closely monitoreddecision rules must be closely monitored

Segregation of FunctionsSegregation of Functions - some - some consolidation of tasks by the computer; consolidation of tasks by the computer; protect the computer programs--coding, protect the computer programs--coding, processing and maintenance should be processing and maintenance should be separated separated

Control Considerations forControl Considerations forComputer-Based SystemsComputer-Based Systems

SupervisionSupervision - in POS systems, the cash register’s - in POS systems, the cash register’s internal tape or database is an added form of internal tape or database is an added form of supervisionsupervision

Access Control Access Control - magnetic records are vulnerable - magnetic records are vulnerable to both authorized and unauthorized exposure and to both authorized and unauthorized exposure and should be protectedshould be protected must have limited file accessibilitymust have limited file accessibility must safeguard and monitor computer programs must safeguard and monitor computer programs

Control Considerations for Control Considerations for Computer-Based SystemsComputer-Based Systems

Accounting RecordsAccounting Records - rest on reliability and - rest on reliability and security of magnetically stored data. The security of magnetically stored data. The accountant should be skeptical about accepting accountant should be skeptical about accepting the accuracy of hard-copy printouts of journals the accuracy of hard-copy printouts of journals and ledgers.and ledgers.

Backup Backup is a concern for direct access files, and is a concern for direct access files, and the system needs to ensure that backup of all the system needs to ensure that backup of all files is continuously kept.files is continuously kept.

PC-Based Accounting SystemsPC-Based Accounting Systems Used by small firms and some large decentralized firmsUsed by small firms and some large decentralized firms Allow one or few individuals to perform entire accounting Allow one or few individuals to perform entire accounting

functionfunction Most systems are divided into modulesMost systems are divided into modules

general ledgergeneral ledger inventory controlinventory control payrollpayroll cash disbursementscash disbursements purchases and accounts payablepurchases and accounts payable cash receiptscash receipts sales ordersales order

PC Control IssuesPC Control Issues Segregation of DutiesSegregation of Duties - tend to be inadequate and - tend to be inadequate and

should be compensated for with increased supervision, should be compensated for with increased supervision, detailed management reports, and frequent independent detailed management reports, and frequent independent verificationverification

Access ControlAccess Control - access controls to the data stored on - access controls to the data stored on the computer tends to be weak; methods such as the computer tends to be weak; methods such as encryption and disk locking devices should be usedencryption and disk locking devices should be used

Accounting RecordsAccounting Records - computer disk failures cause - computer disk failures cause data losses; external backup methods need to be data losses; external backup methods need to be implemented to allow data recoveryimplemented to allow data recovery