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Revenue & Receipt Cycle - Coggle Diagram

- - - - Sales Invoice
      - Price Lists
    - - On the return of a signed DN from the customer:
        i - DN should be matched to ISO and invoice generated;
        ii - numerical list of DN and inv frequently produces and missing nrs followed up by senior person;
        iii - Quantities on inv or obtained from DN;
        iv - Price on Invoice is obtained from price list;
        v - Calculations are reviewed by independent person
  - - - Sales Journal
      - Debtors Ledger
      - Invoice
      - General Ledger
    - - Compare the inv to DN and check for Quantity, Description and Prices
      - Sequence checks on inv of there are missin or duplicate nrs, to be followed up
      - Invoices must be recorded accurately and entered against correct debtor
      - Trace posting: Sales Journal; Debtors ledger; General Ledger
      - Montehly Statements sent out by independant person
  - - - Delivery Note
      - Back Order Note for unfilled customer orders
      - Pickign Slip
      - List of dliveries
    - - Transferred to Dispatcg
      - Deliver of Goods
      - Dispatch function is a manual function
      - counter sales
      - Gate Control
      - Segregation of duties
  - - - Age Analysis
      - Monthly Statement
      - All records kept in the cycle are relevant
      - Credit Bureau Information
    - - Credit application process
      - Identification of debtor to be handed over to lawyers
  - - - Price List
      - Credit Application Form
      - Internal Sales Order (ISO)
      - Credit Bureau Information
      - Customer Order
    - - ISO should:
        i - Be Numerical;
        ii - Contains customer details;
        iii - Specifies quantity ordered;
        iv - Contains Prices per official price list
        v - Authorised by credit manager/sales manager
      - Function identifies 2 types of customers
        
        New Customers - go thought a credit application process:
        1 - Application to be completed;
        2 - Background checks to determine if customers is creditworthy;
        3 - If customer is creditworthy, credit department master file;
        4 - Capture info on permanent master file;
        5 - Changes to details must be authorised by credit controller
        
        Existing Customers:
        1- if its a valid customer, client should present ID or account nr;
        2 - the credit limit should be checked and if credit limit has been exceeded, order can not be accepted.
      - When order is received form customer, person responsible for ordering will generate an ISO
- - - - Cancelled cheques; Cheque requisitions; Deposit slips; Bank statements; Bank confirmation letter; Cash book; Bank reconciliation
    - - Cashiers
        
        a - Cashier must balance cash on a daily basis and must compare it with the source documents;
        b - Compare cash with supporting documentation;
        c - Every cashier should only be responsible for his own funds;
        d - Every cashier should be responsible for his own float;
        e - . Supervision over cashiers - senior/camera's;
        f - Cash must be banked as soon as possible
      - Petty Cash
        
        a - One person responsible;
        b - Physical safekeeping;
        c - Limit fund amount;
        d - Define type of expenditure;
        e - Pre-numbered petty cash vouchers;
        f - Payments approved;
        g - Reimbursements;
        h - Exact amount of voucher;
        i - Vouchers/slips cancelled.
  - - - Cash register reading; Cash advance documents; Cash summaries; Receipts; Physical cash counts.
    - - The bank account should be reconciled monthly with the Cashbook:
        a - Independent of the person that writes up the cashbook;
        b - Reviewed by senior independent official
      - EFT’s is also a valid receipt method
  - - - Segregation of duties for receipt and recording of money
      - Money received by mail:
        a - opened and counted by 2 independent persons;
        b - recorded in a mail register;
        c- person/cashier to whom its handed overs should sign as proof of receipt
      - Proper stationery control:
        a - Receipts, cash sales slips/inv etc., are numerically recorded;
        b - Locked away;
        c - Recorded in a register
      - Safeguarding of Money:
        a - Locked in a vault;
        b - banked as asap
      - Different forms of cash (sales, petty cash, and cash loans) should be kept separately and recorded separately.
      - Post-dated cheques received should be recorded in register and strictly controlled
      - Adequate insurance should be taken out against theft and fraud.