Glow Ltd$.$ is a wholesaler of organic skincare products. The products are kept in a centralised

warehouse under the responsibility of the Warehouse Supervisor. The Warehouse Supervisor

manages the entire team of warehouse staff in charge of receiving the inventory from suppliers

and releasing them for delivery to customers.

All of Glow Ltd$.$s customers are retailers who must meet the minimum order quantity.

Customers must first register accounts with the company. Approved customers are allowed to

purchase up to their approved credit limits$.$ They are required to pay in full to Glow Ltd$.$s

designated bank account within $30$ days of the date of invoicing.

Customers enter their orders online. The computer checks the available inventory balance. If

there is not enough available stock, it displays a message $$Insufficient stock. Backorder?$.$ If

the customer clicks $$No$,$ the computer cancels the order data. Next, the computer checks the

customer$$s available credit. When all are in order, the computer creates a sales order in the

sales order master and emails a copy to the customer.

At the start of the day, one of the Warehouse Staff prints all the picking tickets for the sales

orders created the day before. At $10$am$,$ the Warehouse Staff begins to pick the items using the picking tickets. After he has

finished picking all the items for a sales order, he scans the sales order number on the picking

ticket to retrieve the order details. Next, he scans the barcode labels on the items. The computer

does a $1-1$ match. The Warehouse Staff checks to see if there is any discrepancy. He packs the

items in a box, sticks the address label on the box and signs the picking ticket. Next, he prints the invoice and attaches it to the items to be shipped. When the computer prints the invoice, it

advances the status of the sales order to $$Closed$,$ records the invoice in the Accounts

Receivable master and updates other relevant data stores at the same time. After printing the

invoice, the Warehouse Staff files the processed picking ticket in the $$Picked$$ arch file in

numerical sequence. The Warehouse Supervisor collects the boxes of items from the

Warehouse staff. He checks the items with the invoice and then seals the boxes before releasing

them to the external courier. The courier uses his tablet to scan and store the address labels

during the handover from the Warehouse Supervisor.

The courier delivers the items to the customers by the next business day. He asks the customer

to initial on the tablet to acknowledge delivery. At the end of each day, the courier prepares a

report of all the deliveries made during the day and faxes it to the Warehouse Supervisor. The

Warehouse Supervisor files the report in the Deliveries file by report date.

Customers make payment to Glow Ltd$.$s designated bank account and provide the invoice

number as the reference. Some customers may make a single payment for multiple invoices

when there is a clustering of payment due dates during the period. Upon receipt of the cash,

the customer$$s bank sends an email of the payment advice $($sample below$)$ to the Finance

Officer. The Finance Officer saves the email in the $$Payment Advice$$ data store and records

the details of the payment in the relevant data stores.

At the end of the month, the Finance Officer logins to internet banking to obtain the e$-$bank

statement. The Finance Officer prints the hardcopy bank statement and reconciles it with the

company$$s records. He alerts the Finance Manager if he finds any unexplained discrepancies.

He files the reconciled bank statement in the $$BS$-2024$ folder according to the statement date.

Last week, the General Manager happened to go to the warehouse and was surprised that some

of the original packaging that were supposed to hold the products were empty. He questioned

the Warehouse Supervisor. After much investigation, the Warehouse Supervisor admitted that

he had made huge losses in gambling and cryptocurrency. So$,$ he decided to steal the products from the warehouse. Over a period of three months, whenever there was no other staff around,

he removed the products from their packaging and transferred them to his own bag. On other

occasions, he printed fake address labels to ship the stolen items to the address of his

accomplice. He had sold the stolen products to his own buyers who were also selling beauty

products online. Glow Ltd$.$ suffered loss of more than $$500,000$ from the theft. Construct a REA diagram for Glow Ltd$.$s full revenue cycle as described in the narrative.

State any assumptions that you have made.