Light the Life Candles - ACC

The Transaction Cycles

Revenue Cycle
I. Sales Order (For Deliveries)
The sales process begins when the Customer calls the Sales Department of Light
the Life Candle and makes an order for the candles. The sales clerk, or the
person who is in-charge of answering the call orders, now prepares the order
based on what the customer has requested. With this, he prepares the sales
order, an invoice, stock release and packing slip using the PC System. All
documents are filed. However, a copy of the invoice, stock release and packing
slip are forwarded to the Billing and Accounts Receivable Department.

Take note that the Billing and Accounts Receivable Department has been
combined for the purpose of only having one personnel for each department to
cut down direct labor cost. The same personnel will be the one in-charge in
reconciling the accounts. Internal Control will still exist since the Accountant will
also have copies of such summaries and will also do reconciliation.

The Billing and Accounts Receivable department inputs all information from the
source documents to the computer, adds the prices of the candles ordered and
bills the customer. The computer updates the Sales Records. Through this, a
summary of sales and a summary of Accounts Receivable will be sent to the
Accountant. An unsigned delivery receipt will now be issued, together with the
copy of the invoice and packing slip, and will all be sent to the Inventory and
Warehouse Department. On the other hand, a copy of the invoice will be sent to
the Customer, and another will be filed.

The source documents will now be reviewed by the employee in-charge in the
Inventory and Warehouse Department. Based on the stock release, he will now
be getting the candles that were ordered. A PC Inventory System will be used to
update the Inventory Ledger reconciled with the stock release. The candle stocks
taken from the inventory will be now sent to the customer, together with the
delivery receipt, where the customer should sign before it is sent back to the
Inventory and Warehouse Department for filing, and the packing slip which will be
a form of checklist will be given to the customer. At the end of the day, the
employee in-charge will be sending a summary of the inventory records to the
Accountant.
Light the Life Candles - ACC

The Accountant, will now be in-charge of updating the general records and the
filing of the Summary of Sales, Summary of Accounts Receivable and the
Summary of Inventory Records.
Light the Life Candles - ACC
Light the Life Candles - ACC

II. Sales Order (Stall)

The Sales Process begins when the customer makes an order from the Light the
Life Candles stall. The personnel who receives this order will process it and
prepare an invoice to be forwarded to the Cashier, together with the cash given
by the customer. The Cashier, via the PC System, will in turn, process the stock
release and update the inventory records, and also process the cash and
automatically update the sales records. The Cashier will now issue an official
receipt, where a copy will be given to the customer together with the candles
bought, and another receipt will be kept for filing.

At the end of the day, a copy of the sales and inventory records will be forwarded
to the Accountant, who will keep it for filing, and shall therefore update the
General Ledger Account.

A copy of the inventory record, together with the Stock Request Slip issued by the
personnel in-charge of the stall, will also be forwarded to the Inventory and
Warehouse Department for the replenishment of the inventory to be made
available at the stall.
Light the Life Candles - ACC

III. Cash Receipts

For the case of payment for Deliveries, the Customer first receives the invoice
and pays either cash or check once the delivery of goods arrive. When the
Delivery Man / Collector receives the cash / check, which shall be accompanied
with an accomplished remittance form, one copy shall be given to the customer,
and the other copy is to be held by the Delivery Man / Collector. The Cash/Check,
together with the remittance form, shall be forwarded to the Cashier who will now
process the cash/check via the PC System. An official receipt will now be issued
and mailed to the customer. A copy of the Official Receipt and Remittance form
will be forwarded to the Billing and Accounts Receivable Department where the
Accounts Receivable will be automatically updated. In case of partial fulfilment of
payment, a statement of account will be processed by the Billing and Accounts
Receivable Department and will be mailed to the Customer.
At the end of each day, a Summary of the Accounts Receivable and a Summary
of Remittances shall be forwarded to the accountant for reconciliation and
updating of the General Ledger, before filing it together.