Sales Cycle

Received Customer’s Purchase

Purchase order

Clerk prepares a prenumbered Sales Order

Approved Customer ’s List

Purchase order SO SO 4 3 SO 2 1 Sales order (SO)

To Credit Department T

Figure 20.4 : Sales Department

From Sales Credit Departm checks the 1 Clerk approve customer’s credit 1d by Approved App SOSO SO App SO standing App SO Sales Sales Order AOrder officer? 4 2 3 3 4 (SO) 2 SO) (App

Yes

To sales department

Figure 20.5 : Credit Department

From Credit Departm 2 Approved App Sales App SOSO 4 Order 3

TN

Clerk staples the Approved Purchase Order document N Order Sales

Purchase Order

To Store Department

To Billing Department

Figure 20.6 : Sales Department

From Sales Departm

Storekeepe Approved Clerk prepares rOrder Sales 1 prenumbered delivery App Sales assembles (App SO)obtain N DNDNnote and Delivery Order 3 2 3 Note

To Bin Card

To Billing Department To Customer Figure 20.7 : Stores Department

From Sales Departm

2 Standard Approved Price Sales Order List

From Stores

Clerk prepares prenumbereed 2 Sales Invoice Delivery Note 1 Match and obtains Sales App Sales Note SI SIDelivery Document Invoice Order 2 2 2 3

N To Account Department

To Customers

Figure 20.8 : Billing Department

From Billing Departm

2 Sales Invoice Bookkee per records Sales Journal

N

Bookkee per records Sales Ledger

Figure 20.9 : Accounts Department

Received cheque and remittance advice (under supervision of an

Remittance Clerk prepares Adv. Prelist of Mail Cheque Receipts and obtains approval P’list of Mail Cheque Remittance Adv. Rec.

To Cashier

Figure 20.11 : Mail Room

Received Cash

Cash

Clerk agrees cash Register reading with the actual cash Clerk prepares receipts Cash Count Sheet Cash Register Cash C/Sheet Cash C/Sheet and obtains Cash Reading D 2 1 approval from 1

To Accounts Department

Figure 20.12 : Cashier – Cash Sales

From Mail Room

1

Cash Count Sheet

Remittance Adv. P’list of Mail Rec.

Cash Cheque

Cashier prepares

T

Cheque Deposit Cash 2Slip

T

To Bank

Figure 20.13 : Cashier – Deposit of Cash and Cheques

T

Cash Count Sheets

T

2

Remittance Adv.

Deposit Slip (validated copy)

Prelist of Mail Receipts

Match Document

Deposit Slip (validated P’list of Mail Adv. Cash Count D Remittance copy) Rec. Sheets

3

Figure 20.14 : Cashier – Documents Matched

3

Remittance Advice

Clerk prepared a prenumbered Official Receipt and obtains

Remittance Adv. OR 3

OR 2 Official Receipt (OR)

N

To Accounts Department

To Customers

Figure 20.15 : Cashier – Acknowledging Receipts from Credit Customers

From Cashie r

From Cashi er

2

2

Cash Count

Bookkee per records

Bookkee per records

Sales Ledger

Cash Book

N

D

Figure 20.16 : Accounts Department

Sales Journal

Cash Book

Bookkeeper totals up the recorded

Bookkeeper totals up the recorded

Bookkeeper posts the total monthly sales to the

Bookkeeper posts the total monthly receipt to

General Ledger

Figure 20.17 : Accounts Department

General Ledger

Sales Ledger

Agree the Sales Ledger Control A/c balance with total of

Balan ce agree No

Bookkeeper prepares Debtors Reconciliation Statement

Debtors Reconciliation Statement

Figure 20.18 : Accounts Department

Sales Ledger

Bookkeeper prepares Debtors Aging Report and

Debtors Aging Report

Bookkeeper prepares Statement of Accounts nd obtain

Statement of Accounts

To Customers

Figure 20.19 : Accounts Department

Received Bank Stateme

Bank Statement

Bookkeeper ticks off the items that are the same and pick out the unpresented

Bookkeeper prepares Bank Reconciliation Statement and

Cash Book

Bank Reconciliation Statement

Figure 20.20 : Accounts Department