Podcast
Questions and Answers
What is the primary purpose of the remittance advice in the cash receipts process?
What is the primary purpose of the remittance advice in the cash receipts process?
What is the main difference between a manual system and an automated system in the cash receipts process?
What is the main difference between a manual system and an automated system in the cash receipts process?
What is the purpose of the bank reconciliation process?
What is the purpose of the bank reconciliation process?
What is the primary benefit of using a Point of Sale (POS) system in the cash receipts process?
What is the primary benefit of using a Point of Sale (POS) system in the cash receipts process?
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What is the purpose of a system flow diagram?
What is the purpose of a system flow diagram?
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What is the primary purpose of internal control in the cash receipts process?
What is the primary purpose of internal control in the cash receipts process?
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What is included in the cash receipts journal in an automated system?
What is included in the cash receipts journal in an automated system?
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What is the purpose of the employee card provided with all orders?
What is the purpose of the employee card provided with all orders?
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What is the financial base phase of the sales order process?
What is the financial base phase of the sales order process?
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How can inventory items be added to the system?
How can inventory items be added to the system?
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What is a feature of the system's sales and reporting capability?
What is a feature of the system's sales and reporting capability?
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What is an advantage of using the system's purchase order feature?
What is an advantage of using the system's purchase order feature?
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What can the system do when inventory levels reach a certain point?
What can the system do when inventory levels reach a certain point?
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What is a benefit of using the system's inventory management capability?
What is a benefit of using the system's inventory management capability?
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Study Notes
Financial Base Phase of the Sales Order Process
- Involves receiving cash from customers
- Second phase of the sales order process
- Includes tasks such as:
- Receiving cash from customers
- Posting cash receipts to accounts receivable
- Updating cash accounts
Cash Receipts Process
- Involves receiving cash from customers
- Three main tasks:
- Open, middle, and prepare remittance advice
- Record and deposit checks
- Update accounts receivable and cash accounts
Remittance Advice
- A document that accompanies the customer's payment
- Contains information about the payment, such as:
- Amount paid
- Customer's check number
- Date of payment
- Used to update accounts receivable and cash accounts
Updating Accounts Receivable and Cash Accounts
- Accounts receivable is updated to reflect the customer's payment
- Cash accounts are updated to reflect the increase in cash
- The general ledger is also updated to reflect the changes
Bank Reconciliation
- Process of reconciling the company's cash records with the bank's records
- Involves comparing the company's cash records with the bank's statements
- Any discrepancies are investigated and resolved
Internal Control
- Measures to prevent and detect errors and fraud in the cash receipts process
- Includes:
- Separation of duties
- Authorization of transactions
- Supervision and review
- Physical control over cash and checks
Manual System
- Uses paper documents and manual processes
- Includes:
- Remittance advice
- Deposit slip
- Check and cash receipts journal
- Can be time-consuming and prone to errors
Automated System
- Uses computerized systems and electronic documents
- Includes:
- Point of Sale (POS) system
- Cash receipts journal
- Automatic updates to accounts receivable and cash accounts
- Faster and more accurate than manual systems
Point of Sale (POS) System
- A computerized system that records sales transactions
- Real-time system that updates inventory and accounts receivable
- Can be connected to the inventory system
- Can be used to track sales and customer data
System Flow Diagram
- A diagram that shows the flow of data and processes in a system
- Can be used to analyze and design systems
- Includes:
- Input and output documents
- Processing and storage functions
- Flow of data between functions### Retail Point of Sale System Overview
- The system includes a cash drawer, receipt printer, barcode scanner, and an all-in-one touchscreen PC with a card reader attached.
- Other hardware options available include integrated scales, customer displays, and pin pads for EMV and debit payments.
- A tablet with the same software is also available for a more mobile option.
Employee Management
- An employee card is provided with all orders, allowing employees to swipe in and out of the system.
- The system can track employee hours, even if they're not a cashier.
- Cashiers can learn to use the system in as little as 10-15 minutes.
Inventory Management
- Inventory items can be added by scanning the barcode, entering the description, cost, and price, and setting the quantity in stock.
- Items can be linked to vendors to help with reordering.
- The system can track inventory levels and automatically generate purchase orders when levels reach a certain point.
Sales and Reporting
- Sales can be easily tracked and reported on, including detailed daily reports and flash reports.
- Reports can be customized to show sales by department, payment type, and more.
- The system can also track tax collected and provide a summary of sales for the day, week, month, etc.
Purchase Orders and Inventory Replenishment
- The system includes a purchase order feature that can be used to send orders to vendors electronically or by printing them out.
- The system can automatically generate purchase orders when inventory levels reach a certain point.
- Inventory can be easily received and updated in the system when stock is delivered.
Financial Base Phase of the Sales Order Process
- Receiving cash from customers is the main objective of this phase
- It is the second phase of the sales order process
- Tasks involved include:
- Receiving cash from customers
- Posting cash receipts to accounts receivable
- Updating cash accounts
Cash Receipts Process
- The process involves receiving cash from customers
- Three main tasks are involved:
- Preparing remittance advice
- Recording and depositing checks
- Updating accounts receivable and cash accounts
Remittance Advice
- A document that accompanies the customer's payment
- Contains information about the payment, including:
- Amount paid
- Customer's check number
- Date of payment
- Used to update accounts receivable and cash accounts
Updating Accounts Receivable and Cash Accounts
- Accounts receivable is updated to reflect the customer's payment
- Cash accounts are updated to reflect the increase in cash
- The general ledger is also updated to reflect the changes
Bank Reconciliation
- The process of reconciling the company's cash records with the bank's records
- Involves comparing the company's cash records with the bank's statements
- Any discrepancies are investigated and resolved
Internal Control
- Measures to prevent and detect errors and fraud in the cash receipts process
- Includes:
- Separation of duties
- Authorization of transactions
- Supervision and review
- Physical control over cash and checks
Manual System vs. Automated System
- Manual system: uses paper documents and manual processes
- Includes remittance advice, deposit slip, and check and cash receipts journal
- Can be time-consuming and prone to errors
- Automated system: uses computerized systems and electronic documents
- Includes Point of Sale (POS) system, cash receipts journal, and automatic updates to accounts receivable and cash accounts
- Faster and more accurate than manual systems
Point of Sale (POS) System
- A computerized system that records sales transactions
- Real-time system that updates inventory and accounts receivable
- Can be connected to the inventory system
- Can be used to track sales and customer data
System Flow Diagram
- A diagram that shows the flow of data and processes in a system
- Can be used to analyze and design systems
- Includes:
- Input and output documents
- Processing and storage functions
- Flow of data between functions
Retail Point of Sale System Overview
- Includes hardware such as cash drawers, receipt printers, barcode scanners, and all-in-one touchscreen PCs with card readers
- Other hardware options available include integrated scales, customer displays, and pin pads for EMV and debit payments
- Tablets with the same software are also available for a more mobile option
Employee Management
- Employees are provided with a card to swipe in and out of the system
- The system can track employee hours, even if they're not a cashier
- Cashiers can learn to use the system in as little as 10-15 minutes
Inventory Management
- Inventory items can be added by scanning the barcode, entering the description, cost, and price, and setting the quantity in stock
- Items can be linked to vendors to help with reordering
- The system can track inventory levels and automatically generate purchase orders when levels reach a certain point
Sales and Reporting
- Sales can be easily tracked and reported on, including detailed daily reports and flash reports
- Reports can be customized to show sales by department, payment type, and more
- The system can also track tax collected and provide a summary of sales for the day, week, month, etc.
Purchase Orders and Inventory Replenishment
- The system includes a purchase order feature that can be used to send orders to vendors electronically or by printing them out
- The system can automatically generate purchase orders when inventory levels reach a certain point
- Inventory can be easily received and updated in the system when stock is delivered
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Description
This quiz covers the financial base phase and cash receipts process, including receiving cash from customers, posting cash receipts, and updating accounts receivable and cash accounts.
