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REVENUE & RECEIPTS CYCLE - Coggle Diagram

- - - - Docs:
        
        Sales Invoice
        
        Price lists
      - Controls
        
        DN to match ISO & invoice generated
        
        Quantities from invoices obtained from DN
        
        Prices on invoice obtained from price list
        
        Numerical list of DN & INV pruduced - missing numbers followed up
        
        Calcs reviewed by independent person
  - - - Docs:
        
        Invoice
        
        Sales journal
        
        Debtors ledger
        
        General ledger
      - Controls:
        
        Invoices recorded accurately & entered against correct debtor
        
        Sequence checks - missing or duplicate numbers followed up
        
        Trace posting: SJ, DL, GL
        
        Compare invoice to DN & check for quantity, description & prices
        
        Monthly statement sent by independent person
  - - - Docs:
        
        Picking Slip
        
        Delivery Note (DN)
        
        Back order note
        
        List of deliveries
      - Controls
        
        Sound control necessary as goods are susceptible to theft - left the premesis
        
        Gate control: Guards count odds & agree goods with n and sign, Guards check quantity on DN vs quantity delivered
        
        Segregation of duties are very important
        
        Manual function, goods picked from signed copy of picking slip, DN created, Out of stock goods - back order note
        
        DN should: Sequentially numbered, quantity & goods, signed by client - acknowledgement of goods, record in register - matched with invoice, issued in duplicate
        
        Counter sales: Customer to sign DN or invoice, Cheking of items to invoice
        
        Once picked + DN made out - goods transferred to dispatch - packed labeled & delivered
  - - - Docs:
        
        All records kept in cycle - relevant
        
        Age analysis
        
        Montly statement
        
        Credit bureau information
      - Controls
        
        Management of credit application process as set out in ordering funtion
        
        Indetification of debtor to be handed over to lawyers
  - - - Docs:
        
        Customer Order
        
        Internal sales order ISO
        
        Price List
        
        Credit application form
        
        Credit bureau information
      - Controls
        
        Generate ISO: Be numerical, customer details, quantities, prices per price list, authorization
        
        New Customer credit application
        
        Process: Complete application form, background checks, establish limits, permanent master file, authorization by credit controler
        
        Existing customer
        
        Process: Client to present ID or account number, Credit limit checked
- - - - Balance cash - daily basis - Cash receipt summary - Signed by cashier, independently reviewed by senior, counts money in cashiers presence
        
        Compare cash with supporting docs - Shortages paid by cashier
        
        Cashiers responsible for own funds & float
        
        Supervision over cashiers - Seniors/camera's etc
        
        Cash banked asap
    - - One person responsible
        
        Physical safekeeping
        
        Limit fund amount
        
        Define type of expenditure
        
        Pre-numbered petty cash vouchers
        
        Payments approved
        
        Reimbursements
        
        Exact amount of voucher
        
        Vouchers/slips cancelled
- - - - Adjustments
        
        Ensure accuracy recording & authorization;
        
        Discounts;
        
        Returns and corrections;
        
        Writing off bad debt.
      - Controls
        
        Authorization;
        
        Segregation of duties;
        
        Formal documentation;
        
        Monitoring & supervision
      - Goods returned
        
        Recorded on return and debtors account debited
        
        A goods returned voucher and credit note is issued