Please enable JavaScript.
Coggle requires JavaScript to display documents.
REVENUE AND RECEIPTS CYCLE - Coggle Diagram
REVENUE AND RECEIPTS CYCLE
ORDERING FUNCTION
DOCUMENTS
Customer Order
Internal sales order (ISO)
Price List
Credit App
Credit bureau info
ACTIVITIES and CONTROLS
ISO created when order is received
Numerical
Contains customer details
Quantities specified
Prices (as per price list)
Authorised by credit manager/sales manager
NEW Customer
Credit App
App must be completed
Credit Check required
Credit Limit est.
Info must be captured on master file
Changes must be authorised by credit controller
EXISTING Customer
Client must present account number
Credit limit checked regularly
If credit has been exceeded, no order allowed
DISPATCH FUNCTION
DOCUMENTS
Picking slip
Delivery note
Back order note
List of deliveries
ACTIVITIES and CONTROLS
Manual
Person check goods using picking slip
Once picked, delivery note generated
OOS- Back order note generated
Transferred to dispatch
Delivery Note
Sequentially numbered
Decribe qty and goods
client signs acknowledgement of receipt
Delivery register, matched with invoice
duplicate
copies issued
Counter Sales
Signed by customer
Check details
Gate Control
Guards must count goods
Guards check qty on delivery note vs delivery
INVOICING FUNCTION
DOCUMENTS
Sales invoice
Price lists
ACTIVITIES and CONTROLS
Signed delivery note
DN should be matched with ISO
Invoice should be generated
Numerical list of DN/invoices frequently produced
Qty on invoice from DN
Price on INV obtained from price list
Calcs reviewed by independent person
RECORDING FUNCTION
DOCUMENTS
Invoice
Sales Journal
Debtors ledger
General ledger
ACTIVITIES and CONTROLS
INV recorded and entered against correct debtor
Compare INV to DN
Qty
Decription
Prices
Sequence checks (missing/duplicate nos.)
Trace posting
Sales Journal --> debtors ledger --> GL
Monthly statements (done by independent person)
CREDIT MANAGEMENT FUNCTION
DOCUMENTS
Age analysis
Monthly statement
Credit bureau info
ACTIVITIES and CONTROLS
Credit app process
Hand over of debtors to lawyers where required
RECEIPTS FROM DEBTORS
Basic Controls
Segregation of duties
Keep different forms of cash separate
Proper stationery control
receipts etc
Locked away
Safeguarding of money
Locked in vault
Banked ASAP
Adequate Insurance
Controls over Cash
Cashiers
Balance daily
Record on cash receipt sumamry
signed by cashier
reviewed by senior official
Counts money in front of cashier
Compare cash with docs
short money paid in by cashier
Cashier responsible for their own funds
Supervision over cashiers
Petty Cash
One person responsible
Physical safe keeping
Limit fund amount
define type of expenditure
pre-numbered petty cash vouchers
payments approved
Reimbursements
Controls over bank account
Bank Acc recon with cashbook
Independent person
reviewed by senior official
CREDITORS/PAYABLES FUNCTION
DOCUMENTS
Goods returned vouchers
CRN returns and allowance journals
Debtors journal
GL