FINE 2000 Lecture Notes - Lecture 6: Informa, Cash Flow, Sales Order
Document Summary
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. The primary external exchange of information is with customers. Information about revenue cycle activities also flows to the other accounting cycles. For example, the expenditure and production cycles use information about sales transactions to initiate the purchase or production of additional inventory to meet demand. The revenue cycle"s primary objective is to provide the right product in the right place at the right time for the right price: sales order entry, shipping, billing, cash collections. The picking ticket printed by sales order entry triggers the pick and. The packing slip lists the quantity and description of each item included in the shipment. The bill of lading is a legal contract that defines responsibility for the goods in transit.
