Page 219 - F1 - AB Integrated Workbook STUDENT 2018-19

Financial systems and procedures

The sales system

3.1 Stages in the sales system

The main stages in the sales cycle and the issues to be considered are as follows:

Orders may be received by post, fax, telephone, in
person or electronically
Order received A record should be made of incoming orders so checks
can be made once processed

Check customer has a valid credit account, or has
already paid in cash
Order processed Check goods are in inventory
Send order confirmation to customer

Goods sent to customer
Goods A goods despatch note is produced, which will be
despatched signed by the customer confirming good received in
good condition

An invoice is sent to the customer, detailing the amount
Invoicing
charged for the goods

Recorded in the The invoice is coded and entered into the accounts
accounts

Payment received from customers. Controls should be
Payment in place to ensure no misappropriation by staff
received
Credit controller contacts those who are late paying

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