DISTINGUISH BETWEEN PACKING SLIP, SHIPPING NOTICE AND BILL OF LADING.

PACKING SLIP form used in a warehouse pick-and-pack operation that lists the items to be shipped and the recipient of the shipment. The packing slip may also include the amount due for a credit order and any shipping and handling charges, as well as a shipment control number. The packing slip travels with the shipment and, at the destination, is used to confirm that the shipment is complete. It is matched with the pertinent invoice before payment is made. SHIPPING NOTICE is a document that provides detailed information about a pending delivery. The purpose of a shipping notice is to notify the customer when shipping occurs and provide physical characteristics about the shipment so the customer can be prepared to accept delivery. BILL OF LADING A document in which a seller agrees to use a certain transportation to ship a good to a certain location. The bill of lading details the type, quality, and quantity of the good. It also serves as the receipt upon arrival at the destination THREE ATHORIZATION CONTROL IN REVENUE CYCLE Proper authorization of transactions (documentation) should occur so that only valid transactions get processed. Within the revenue cycle, authorization should take place when: a sale is made on credit (authorization) a cash refund is requested (authorization) posting a cash payment received to a customers account (cash pre-list) WHAT IS POS? WHAT ARE THE FEATURES OF POS? POS software records each sale when it happens, so your inventory records are always up-to-date. Better still, you get much more information about the sale than you could gather with a manual system. By running reports based on this information, you can make better decisions about ordering and merchandising.

Ease of use. Look for software with a user-friendly graphical interface. Entry of sales information. Most systems allow you to enter inventory codes either manually or automatically via a bar-code scanner. Once the inventory code is entered, the systems call up the standard or sales price, compute the price at multiple quantities and provide a running total. Many systems make it easy to enter sales manually when needed by letting you search for inventory codes based on a partial merchandise number, description, manufacturing code or

vendor.

Pricing. POS systems generally offer a variety of ways to keep track of pricing, including add-on amounts, percentage of cost, margin percentage and custom formulas. For example, if you provide volume discounts, you can set up multiple prices for each item. Updating product information. Once a sale is entered, these systems automatically update inventory and accounts receivable records. Sales tracking options. Different businesses get paid in different ways. For example, repair or service shops often keep invoices open until the work is completed, so they need a system that allows them to put sales on hold. If you sell expensive goods and allow installment purchases, you might appreciate a loan calculator that tabulates monthly payments. And if you offer rent-to-own items, you'll want a system that can handle rentals as well as sales. Security. In retail, it's important to keep tight control over cash receipts to prevent theft. Most of these systems provide audit trails so you can trace any problems. Taxes. Many POS systems can support numerous tax rates-useful if you run a mail order business and need to deal with taxes for more than one state

DISCUSS BRIEFLY THE BILLING PROCESS

The sales invoice notifies customers of the amount to be paid and where to send payment. A monthly statement summarizes transactions that occurred and informs customers of their current account balance. A credit memo authorizes the billing department to credit a customers account

IDENTIFY AND DEFINE ALL THE DOCUMENTS USED IN REVENUE CYCLE Source documents are special forms used to capture transaction data. Control over data collection is improved by prenumbering each source document. Accuracy and efficiency in recording transaction data can be further improved if source documents are properly designed. TURNAROUND DOCUMENT is a document that has been created by a computer to be used for data entry. It is a called a turnaround document because once it has been filled in by users it is then used for input back into the computer. An example of a turnaround document is the mark sheet that

is filled in by your teacher. The mark sheet is generated by the computer, filled in by the subject teacher and then used for input back into the computer so that reports can be printed. DISCUSS THE SALES RETURNS PROCESS Sales returns processing involves the following steps: 1. As soon as the customer has returned the merchandise, you enter the sales returns order using the sales document type configured in Customizing. 2. You can enter header and item data just as you can in the standard. The system automatically creates empties items as subitems. 3. When you save the sales returns order, the system automatically generates a delivery and posts the goods receipt. The goods receipt posting is updated in the appropriate stock (for example, blocked stock returns, goods receipt blocked stock, or quality inspection stock) for a defined storage location. The system considers the quantities of blocked returns stocks in the returns stock of a plant. Blocked stock returns are neither valuated nor available for unrestricted use. 4. You can create an empties credit memo immediately, without having to wait for the results of the analysis.The system generates a credit memo for the customer for the deposit value of the empties as soon as the allegedly defective merchandise is returned. The system does not create credit memos for the full product until the analysis results are available and the subsequent settlement has taken place. 5. Once the results of the analysis are available, you can process them in the analysis document. The system provides you with an analysis item for each order item, based on the sales returns document. You can then enter the missing data for the material, such as the analysis result, the refunding indicator, the quantity, and so on. You can split the order quantity and valuate it separately. The system can then settle each valuated item. The order items (or partial quantities of order items) that are valuated at a later point in time cannot be settled by the system until they have been valuated. 6. The system generates SAP SD and SAP MM follow-on documents during settlement. Each analysis item becomes a separate item in the follow-on documents. These follow-on documents include the customer credit memo and the warehouse stock postings. 7. The system updates the document flow