ERP: The Revenue Cycle

The revenue cycle involves four main activities thus (1) Sales order entry (2) Shipping (3) Billing, and (4) Cash collection. An organizations information system must support each of these activities.

Bayan WLL, a manufacturer of kitchen utensils based in the industrial area of Sitra in Bahrain, uses an ERP system which supports all Bayans business activities including the revenue cycle business activities.

Bayans customers can place orders directly via the internet. Members of the sales team use various portable devices to enter orders when calling on customers. Bayans sales department enters customer orders received by email, telephone, WhatsApp, or Fax. Regardless of how an order is received by the system, the system quickly verifies customer creditworthiness, checks inventory availability, and notifies the warehouse and shipping departments about the approved sale. The warehousing and shipping departments do their part, update the system and the process continues.

Required

In relation to the Sales order entry (described above):

(a) Identify five possible threats (12 Minutes)

(b) For each threat specify one possible control. (12 Minutes)