Instructions: Based on the narrative, prepare a list of activities the departments should be doing (that they are not currently doing) and activities that they should not be doing (that they are currently doing) if they were following typical Revenue cycle activities. FIND 30

NOTE: You are sending this report to management so make sure you are clear about what department is doing what. Avoid using the word they or just saying the sales order should be sent to shipping. Who is they? Who should be sending the sales order to shipping? See examples from class for proper reporting.

Customers contact the sales department by phone to order goods. The sales department captures the essential detail for the order on paper. Then the sales department performs the credit check and uses the order detail to prepare a 7part sales order. [All three tasks are done manually.] One copy is sent to the warehouse, three copies are sent to the accounts receivable department, and the other three copies are sent to shipping. The order detail is then filed by date in the sales department.

After receiving the 3 copies of the sales order, the accounts receivable department updates the sales invoice transaction file on the computer. Accounts receivable sends one copy of the sales order to the customer, and files the remaining two copies alphabetically.

The warehouse receives the sales order from the sales department and uses it to picks the goods and update the sales shipping transaction file on the computer. It then files the sales order numerically and sends the goods to shipping.

The shipping department reviews the three copies of the sales order (received from sales). They pack the goods and arrange shipping. They give one copy of the sales order and the goods to the carrier. The other two copies of the sales order are filed numerically.

The mailroom receives remittances and remittance advices from customers. They use the checks and the remittance advices to prepare a remittance list. The checks, remittance advices, and remittance list are sent to the cashier.

The cashier uses the remittance list to update the cash receipts transaction file. This computer process also prints a two-part deposit slip. One copy of the deposit slip and the checks are sent to the bank. The other copy of the deposit slip, the remittance advices, and the remittance list are filed by date.