Accounting Information System (XACIS) - Holy Angel University

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

Accounting Information At the end of the lesson, the student will be able to: the sales process flow using Understand 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  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 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 for planning production purchase 2. Shipment - also known as the Delivery orders. document, is a legally binding document indicating Creating sales orders does not post value-related changes in the accounting system. However, if the that the delivery of goods or services has occurred. sales order is created for items, the ordered quantities Without this document, goods can be delivered only are listed in Inventory Management as reserved for the if an invoice has already been created. customer. When you create a shipment, the corresponding This information is important for: goods issue is also posted. The goods leave the  Optimizing ordering transactions and stockholding warehouse and the relevant stock changes are and posted. When the stock is changed, the values in  Ensuring that customer requirements are dealt with the accounting system changes as well. quickly and satisfactorily 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 Sales Documents and Reports 5. Credit Memo - A credit 4. AR Invoice - Invoice documents memorandum- often shortened to represents a legally-binding document. credit memo, is given to a customer When an invoice is received, the posting by a seller that provides is made to the related customer accounts goods/services. The memo is issued as in the accounting system (there is a way to reduce the amount owed by already a corresponding journal entry). If a delivery did not precede the the customer. The deduction is taken invoice and you sell the warehouse items, from an invoice that was previously 6. Payment - After the stock quantities are also updated issued, which is the most common Invoice has been sent to the accordingly when you issue the invoice. type of credit memorandum. customer, it’s time to (deduction to both items and actually collect the money If you create an invoice without reference to the delivery, the system automatically amount to be paid by the owed for the goods and/or posts changes to the stock. In other customer aka their account services delivered. This is words, if a delivery already exists, errors receivable) (MANUAL ENTRY) done through the Treasury can occur in inventory management Module. because the delivery quantity is posted twice in the system. Accounting Information System  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  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  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  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  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 Thank you! Accounting Information System