Ch 12 Revenue Cycle: Sales to Cash Collections

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  1. Revenue cycle
    The recurring set of business activities and data processing operations associated with providing goods and services to customers and collecting cash in payment for those sales
  2. Sales order
    Document created during sales order entry listing the item numbers, quantities, prices, and terms of the sale
  3. Electronic Data Interchange (EDI)
    Use of computerized communications and a standard coding scheme to submit business documents electronically in a format that can be automatically processed by the recipient's information system
  4. Credit Limit
    Maximum allowable credit account balance for each customer, based on past credit history and ability to pay
  5. Accounts Receivable Aging Schedule
    A report listing customer account balances by length of time outstanding
  6. Back Order
    Document authorizing the purchase or production of items that is created when there is insufficient inventory to meet customer orders
  7. Picking Ticket
    Document that lists the items and quantities ordered and authroizing the inventory control function to release that merchandise to the shipping department
  8. Customer Relationship Management (CRM) systems
    Software that organizes information about customers in a manner that facilitates efficient and personalized service
  9. Packing Slip
    Document listing the quantity and description of each item included in a shipment
  10. Bill of Lading
    Legal contract that defines responsibility for goods while they are in transit
  11. Sales invoice
    Document notifying customers of the amount of a sale and where to send payment
  12. Open-invoice method
    Maintaining accounts receivable in which customers typically pay according to each invoice
  13. Remittance Advice
    Copy of the sales invoice returned with a customer's payment that indicates the invoices, statements, or other items being paid
  14. Balance-Forward Method
    Maintaining accounts receivable in which customers typically pay according to the amount shown on a monthly statement, rather than by individual invoices. Remittances are applied against the total account balance, rather than specific invoices
  15. Monthly Statement
    Document listing all transactions that occurred during the past month and informing customers of their current account balance
  16. Cycle Billing
    Producing monthly statements for subsets of customers at different times
  17. Credit Memo
    Document, approved by the credit manager, authorizing the billing department to credit a customer's account
  18. Remittance List
    Document listing names and amounts of all customer payments received in the mail
  19. Lockbox
    Postal address to which customers send their remittances
  20. Electronic Lockbox
    Lockbox arrangement in which the bank electronically sends the company information about the customer account number and the amount remitted as soon as it receives payments
  21. Electronic Funds Transfer (EFT)
    Transfer of funds through use of online banking software
  22. Financial Electronic Data Interchange (FEDI)
    Combination of EFT and EDI that enables both remittance data and funds transfer instructions to be included in one electronic package
  23. Universal Payment Identification Code (UPIC)
    Number that enables customers to remit payments via an Automated Clearing House (ACH) credit without requiring the seller to divulge detailed information about its bank account
  24. Cash Flow Budget
    Budget that shows projected cash inflows and outflows for a specified period
Card Set:
Ch 12 Revenue Cycle: Sales to Cash Collections
2017-03-24 18:45:36
accounting terms

Acc 409 Ch 12
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