Question

500 words minimum requirement.

Review the business activities that go into the sales and collection process.

Answer 1

Firstlty starting from sales:

1. Pricing - to go for sales a price has to be decided upon which the sales are likely to happen, If it is an manufacturing company or any major service providing company, then this requires a contract or a proper settlement over the price of products on timely basis.
2. Vouching - The voucher i.e. the bill aginst the sales has to be prepared accordingly on the basis of the prices agreed upon in multiple copies as per the requirements.
3. Acceptance - the major part is the acceptance of voucher generated as this complies the reciever of goods and services that items are delivered and the amount as mentioned is as per the terms and now the reciever of the goods or services and the voucher is liable for the amount of sales.
4. Payment - As mentioned above there should be a proper contract marking all the dcetails regarding delivery, payment terms, and any other kind of requirements.

Coming towards collection porcess

1. Consent - there should a consent by both the parties in relation to the payment terms and conditions and these terms can be of any kind like:

• Time period - Time required or provided for payment in respect of the goods or services purchased
• Time Period Starting - Such time period should start from which date i.e. thedate of recieving of material or date of release of material or date of order, etc
• Interest or Fine over non payment - Non payment on time should lead towards a solution i.e. some fine or pem]nalty or the interest over the late payment.
• Payment Method - Method of payment i.e. Cash or cheque or Bank Transfer, etc

And All this Consent shouls be written and duly signed by both parties through an bond or contract and non compliance of such contract should lead to face the case of breach of contract.