Accounting Information System (PDF)

Accounting Information System At the end of the lesson, the student will be able to: Understand the sales process flow using Smartbooks and its related documents and reports Perform sales procedures using Smartbooks Differentiate the effects of each process flow in the inventory...

Accounting Information System At the end of the lesson, the student will be able to: Understand the sales process flow using Smartbooks and its related documents and reports Perform sales procedures using Smartbooks Differentiate the effects of each process flow in the inventory. Accounting Information System (XACIS)  LESSON 3: REVENUE CYCLE The revenue cycle is a repeating collection of business activities and related information processing procedures involved with selling products and services to clients and receiving cash in exchange. Sales Process moves from issuing a sales order to selling goods and services to delivering those goods to invoicing the customer for their purchases. Accounting Information System (XACIS) Sales Documents and Reports 1. Sales Order - is a commitment from a customer or lead to buy a product or service. The document serves as a foundation 2. Shipment - also known as the Delivery document, is a for planning production purchase orders. legally binding document indicating that the delivery of Creating sales orders does not post value-related changes in goods or services has occurred. Without this document, the accounting system. However, if the sales order is created goods can be delivered only if an invoice has already been for items, the ordered quantities are listed in Inventory created. Management as reserved for the customer. When you create a shipment, the corresponding goods This information is important for: issue is also posted. The goods leave the warehouse and √ Optimizing ordering transactions and stockholding and the relevant stock changes are posted. When the stock is √ Ensuring that customer requirements are dealt with quickly changed, the values in the accounting system changes as and satisfactorily well. 3. Sales Return - a sales return document is created when a consumer or client sends a product back to the seller. A customer may return an item for a variety of reasons, including overstock, shipping delays, customer expectations, damaged or defective products, and many others. (no amount change, just decrease in stock issued since the invoice have not yet been posted) (EDITING ONLY) Accounting Information System (XACIS) Sales Documents and Reports 5. Credit Memo - A credit memorandum- 4. AR Invoice - Invoice documents represents a legally-binding document. When an invoice is often shortened to credit memo, is given to received, the posting is made to the related a customer by a seller that provides goods/ customer accounts in the accounting system services. The memo is issued as a way to (there is already a corresponding journal entry). reduce the amount owed by the customer. If a delivery did not precede the invoice and you The deduction is taken from an invoice that sell the warehouse items, stock quantities are was previously issued, which is the most also updated accordingly when you issue the 6. Payment - After the Invoice common type of credit memorandum. invoice. has been sent to the customer, (deduction to both items and amount to be it’s time to actually collect the If you create an invoice without reference to the paid by the customer aka their account money owed for the goods and/ delivery, the system automatically posts receivable) (MANUAL ENTRY) or services delivered. This is changes to the stock. In other words, if a done through the Treasury delivery already exists, errors can occur in inventory management because the delivery Module. quantity is posted twice in the system. Accounting Information System (AIS)  Exercise 6.A Regular Sales Process Exercise 6.1 Do the WHOLE SALES PROCESS for the following items: Sales Oder > Shipment > Invoice > Cash Inflow – Customer: Accounting Information System (XACIS)  Exercise 6.A Regular Sales Process Exercise 6.2 Do the WHOLE SALES PROCESS for the following items: Sales Oder > Shipment > Invoice > Cash Inflow – Customer: Accounting Information System (XACIS)  Exercise 6.B Sales Process with Sales Return Exercise 6.3 Do the WHOLE SALES PROCESS for the following items with Sales Return Sales Oder > Shipment > Sales Return > Invoice > Cash Inflow – Customer: Accounting Information System (XACIS)  Exercise 6.C Sales Process with Credit Memo Exercise 6.4 Do the WHOLE SALES PROCESS for the following items with A/R Credit Memo Sales Oder > Shipment > Invoice > A/R Credit Memo > Cash Inflow – Customer: Accounting Information System (XACIS)  Exercise 6.C Sales Process with Credit Memo Exercise 6.5 Do the WHOLE SALES PROCESS for the following items with A/R Credit Memo Sales Oder > Shipment > Invoice > A/R Credit Memo > Cash Inflow – Customer: Accounting Information System (XACIS)  Thank you! Accounting Information System (XACIS)