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Definition
| A recurring set of business activities associated with providing goods and services to customers and collecting cash in payment for those sales |
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Definition
| Contains information about item numbers, quantities, prices, and other terms of the sale |
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Definition
| Use of interactive sales order entry systems to allow customers to customize products to meet their exact needs |
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| Vendor Managed Inventory (VMI) |
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Definition
| The use of EDI to assume responsibility for managing a retail customer's inventory |
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Definition
| Maximum allowable account balance for each customer based on the customer's past credit history and ability to pay |
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Definition
| Document authorizing the purchase or production of items that we don’t have enough of |
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Definition
| Lists the items, and quantities of each item that the customer ordered |
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Definition
| Lists the quantity and description of each item included in the shipment |
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Definition
| A legal contract that defines responsibility for the goods in transit (Shipped with goods, kept by billing department, kept by carrier) |
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Definition
| Notifies customers of the amount to be paid and where to send payment |
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Definition
| Customers typically pay according to each invoice, two copies sent, one is returned as the remittance advice |
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Definition
| Turnaround copy of invoice that has customer payment attached |
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Definition
| Customers typically pay according to the amount shown on a monthly statement, rather than by individual invoices |
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Definition
| Lists all transactions, including both sales and payments, that occurred during the past month and informs customers of their current account balances |
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Definition
| Monthly statements are prepared for subsets of customers at different times. Divide customer master file in four and bill each group in a separate week. (Utility companies) |
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Definition
| Authorizes the crediting of the customer's account. Require confirmation that goods were actually returned |
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Definition
| A document identifying the names and amounts of all customer remittances (payments) |
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Definition
| A postal address to which customers send their remittances. Picked up directly by bank and deposited |
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Definition
| Bank electronically sends the company information about the customer account number and the amount remitted as soon as it receives and scans those checks |
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Term
| Electronic Funds Transfer (EFT) |
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Definition
| Customers send their payments electronically to the company’s bank and thus eliminate the delay associated with the time the remittance is in the mail system |
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Term
| Financial Electronic Data Interchange |
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Definition
| Combination of EFT and EDI. Customers send their remittance data and funds electronically to the company’s bank and thus eliminate the delay associated with the time the payment and information are in the mail system |
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Definition
| Break down the sales by salesperson, region, or product |
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Term
| Profitability Analysis Reports |
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Definition
| Breaks down the marginal profit contributions made by each territory, customer, distribution channel, salesperson, product, or other basis |
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Term
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Definition
| Provides precise estimates of cash inflows (projected collections from sales) and outflows (outstanding payables) |
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| Accounts Receivable Aging Schedule |
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Definition
| Lists customer account balances by length of time outstanding |
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Term
| Primary objective of the Revenue Cycle |
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Definition
| Provide the right product in the right place at the right time for the right price. |
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Term
| Four basic activities of the Revenue Cycle |
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Definition
Sales Order Entry;
Shipping;
Billing;
Cash Collections |
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Term
| Steps for Sales Order Entry Process |
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Definition
| Take customer orders;
Approve credit;
Check inventory availability;
Respond to customer inquiries |
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Term
| Steps for Shipping process |
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Definition
| Picking and packing the order;
Shipping the order |
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Term
| Steps for Billing process |
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Definition
| Invoicing;
Maintain Accounts Receivable |
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Term
| Steps for Cash Collections process |
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Definition
| Handle remittance;
Deposit remittance |
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