Customer

Customer order data

2 Credit approval 1 Received Orders Customer order data Approved Customer order data

3 copies Charge invoice 2 copies of delivery receipts 3 Pick up goods Backlog file 3 copies Charge invoice 2 copies of delivery receipts 4 Recheck the goods 6
Update customer account

Backlog processing

2 copies of Charge invoice Delivery receipt

3 copies Charge invoice 2 copies of delivery receipts 7 5 Delivery of goods Charge invoice Delivery receipt

Customer file

Bill customer

Statement of Account

Sales Journal Sales logbook

Figure 1. Customer order and billing

Customer

Payment

8 Collection of payment

Official receipts

9
Update customer account

Full Payment Customer file 10

Close customer account

Figure 1. Collection of receivables

Revenue Cycle current system Credit authorization and credit terms For new customers, a credit limit shall be given after investigation of the customers ability to pay. Amount of credit limit, once authorized, shall be granted to the customer upon the discretion of the owner. For existing customers with an account, they shall be granted credit up to the previously assigned credit limit only if there is a zero balance in their payables. In the event that they have an outstanding balance, an additional order in credit shall be granted upon the discretion of the owner. Credit and discounts to existing and new customers usually varies in amount and length of time before it becomes due. All Credit sales transactions are to be approved by the owner. Customer order and billing the customer The customer will place an order which is subject to owners approval if it is on credit. If it is approved by the owner, the sales clerk will prepare 3 charge invoice and 2 delivery receipt. If some of the items ordered are out of stock, it will be file under back order file until orders are available or if a supplier will deliver the said item. Orders will be filled and the checker will recheck if the actual items match with the items in the delivery receipt prepared by the sales clerk. A copy of the delivery receipt and charge invoice together with the items will be delivered to the construction site and a copy of charge invoice will be forwarded to the company who ordered the goods. The remaining copy of the charge invoice and delivery receipt will be forwarded to the accounts receivable clerk for the Statement of Account. The Accounts receivable clerk prepares two copies of Statement of Account upon the request of the owner or the customer or at the end of the construction project. One copy of statement of account will be sent to the customer and the other will remain on the company subject to review by the owner. Collection of receivables A collector is assign to collect the payments of the customer. Upon payment of the customer, he will prepare two copies of official receipt, one will be issued to the customer and the other will be surrender to the accounts receivable clerk for update in customers account and files it in customer file. Once the customer pays his balance in full, his account will be closed.

Credit delinquency Before the due date, customers availing such credit will be informed of the coming due date by the owner or the accounts receivable clerk via phone call. The customer will be re-informed again after date due. The owner will intervene and will decide on additional terms through which he decides whether to put the account or credit as delinquent or not since he has the sole discretion to increase the span of payment or to continue giving credit on future transactions IT 131 C

Fernandez, Krishenne Imma Formilleza, Precious Garcia, Jennel Joy Garcia, Jeremie Ann Gines, Daisy Marie