Question

-Sale Order Entry Procedure
-Point-Of-Sal Orders Procedure
-Customer Credit Approval and Terms Procedure
-Sales order acceptance procedure
-Shipment of goods procedure
-Invoicing and accounts receivable procedure
-Sales tax collection procedure.

breifly explain the above mentioned transactions recorded in the Revenue Process

Answer 1

Answer

Sales Order Entry Procedure

The Sales Order Entry Procedure sets guidelines for the sales order process from obtaining the sales order through shipping and billing to the customer. All customer orders will be processed in an efficient and organized manner to ensure accurate and prompt shipments.

The Sales Order Entry Procedure ensures accurate and prompt shipments through efficient and organized order processing, and it applies to all personnel involved in processing of sales orders, specifically in sales, customer service, credit, manufacturing and billing.

This procedure summarizes the preparation of documents, paperwork flow, and responsibilities by individuals and departments and is not intended to be inclusive of all steps and activities involved in the consummation of a sales transaction. Therefore, each individual involved in the Sales Order Processing Procedure will need to take the responsibility to determine that all required and necessary activities and documents are properly completed

Point-Of-Sale Orders Procedure

The Point-Of-Sale Orders POS Procedure provides methods for ensuring all sales transactions are valid and collectible. The POS transaction procedure also ensures your company’s inventory and cash records reflect the transactions correctly.

The Point-Of-Sale Orders POS Procedure calls for proper transaction control over sales by the CFO and proper authorizations by your company’s store manager.

Generally, the POS system automates the process of recording the proper price and cost (associated with the barcode) while determining the correct inventory amount associated with the transaction and adding the proper sales tax.

Tax-exempt transactions for customers that claim tax-exempt status should be based on proper documentation. Request a copy of a state approved tax-exempt certificate to be kept on file to support all tax-exempt sales. Your company may be required to produce proper tax-exempt sales documentation during a state sales-tax audit.

For POS registers that do not provide sales orders, a manual sales order book can provide the same memo ability. The information will have to be entered into the system once the sale has occurred. If a sales order book is used, (for phone in orders, deliveries, etc.), it should contain pre-numbered forms in duplicate.

REV103 Customer Credit Approval and Terms Procedure

To reduce potential collection problems, new customer accounts or credit limit increases will be properly evaluated and approved prior to extending credit. The company should outline the activities and responsibilities involved in obtaining credit approval for a potential customer before sales orders are consummated. These credit procedures are to be followed for all credit approvals requested by the Sales or Customer Service Departments for customers interested in open account, lease or rental financing.

Sales Order Acceptance Procedure

The Sales Order Acceptance Procedure outlines the activities and responsibilities involved in verifying that all sales orders received by your company are acceptable before they are completed.

The Sales Order Acceptance Procedure implements a process to evaluate and approve all sales orders before they are entered into the accounting system—thus reducing potential problems and ensuring the highest level of customer service.

The sales order confirmation policy should be followed for all sales orders taken by your company’s sales or customer service departments.

Shipment of goods procedure

All products and services should be delivered in an organized manner in order to maintain the highest customer service quality levels possible and to ensure compliance with all United States Customs laws and regulations when exporting goods & services.

The company should outline the steps for the packaging, safe storage, control and delivery of all products and services shipped by the company. This applies to all products and services distributed by the company, sales, customer service and shipping personnel.

Invoicing and accounts receivable procedure

The Accounts Receivable Procedure explains the methods for preparing invoices and accounts receivable records.

The policy allows for the timely preparation and distribution of invoices to optimize cash flow and customer payments. This procedure applies to all product sales and services provided by the company.

Shipping will immediately forward to Billing completed Sales Orders along with shipping documentation and the customer’s Purchase Order. All Sales Orders will be routed on a daily basis to ensure prompt billing. Accounts Receivable will then prepare invoices to be mailed by the next business day.

The next sequentially numbered invoice will be prepared from the information from the Sales Order and will include the invoice date, date of shipment, description of items shipped with model numbers, quantity, selling price, and extended amounts and the customer’s shipping and billing addresses.

On a monthly basis, Accounts Receivable will generate an aged trial balance of customers’ accounts with individual invoice information and days outstanding and will forward to Credit for timely collection activities.

Sales Tax Collection Procedure

The Sales Tax Collection Procedure outlines the sales tax rules, rates and exemptions so that your company can accurately and efficiently collect sales tax for goods and services offered.

The Sales Tax Collection Procedure ensures compliance with all state and local sales tax regulations and requirements. The tax collection procedure applies to individuals in sales and customer service who are directly responsible for the sale of products.