Scribd
Upload
5 views

The Sales System

ACCA AA

Uploaded by

sabinkumar420
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
5 views

The Sales System

ACCA AA

Uploaded by

sabinkumar420
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 5

The Sales System

For Each stage There are necessary Controls which must be ensured. Following is the summary
of those related controls.

Stage 1: Sales Order Received - All sales orders documented on a


sequentially numbered multi-part SALES
ORDER FORM (should always be sequential
numbered)

Compiled By: Sabin Thapa Certified College of Accountancy (CCA)


-After receiving the order Always Perform
Inventory Check Before confirming the order.

- Confirm from the customer


(preferably in writing except on telephonic
sales, a verbal reconfirmation/ call recording
should be acceptable)

-New customer: credit checks, the obtaining


of trade/bank references and the setting of
appropriate credit limits for customer

- Existing customer: credit limit check,


Customer credit limits should be regularly
reviewed and updated based on the level of
sales transactions and credit risk

(always remember the authorities responsible


for this works, a clerk should not be allowed
to set credit limits and granted access to
master data file)

- Any discounts committed to be


authorized

- Follow up on unfulfilled orders- On a


regular basis, a sequence check of orders
should be undertaken to identify any missing
orders.

Compiled By: Sabin Thapa Certified College of Accountancy (CCA)


Stage 2: Goods Dispatched -4-part GDN should be raised Compulsory: 1
Sent with goods, another retained at
warehouse, next one sent to finance
department for raising invoices and last one
for sales department to trace the orders.

- GDNs should always be Sequentially


numbered. Any other number like order
number is not acceptable.

- Signed by the warehouse manager


after quantity and quality checks

- Customer should sign the copies to


acknowledge receipt of goods

Compiled By: Sabin Thapa Certified College of Accountancy (CCA)


Step 3 and 4: Raising Invoice and transaction -Invoices raised must also be sequentially
Recorded numbered

- Ensure the authorized price list is used


to prepare the invoice

- Matched to GDN

- Arithmetic checks on invoices

- Sequence check on GDNs to ensure all


GDNs have been invoiced

- Sequence check on Invoices to ensure


all invoices have been entered in the
accounting system

- Customer statements should be sent


monthly to ensure any errors and disputed
invoices are quickly identified and resolved

- The sales ledger control account


should be reconciled on a monthly basis to
the individual ledger to identify any errors.
The reconciliations should be reviewed by a
responsible official and they should evidence
their review
Step 5: Payments Receipts -Cash receipts are the most sensible area so
always ensure there is proper segregation of
duties around this area. I.e. Same person
should not be responsible for receiving,
reconciling, reviewing and recording.

-Match payment to invoice

- A Bank Reconciliation Statement should be


prepared on a monthly basis

Compiled By: Sabin Thapa Certified College of Accountancy (CCA)


Some rare control that could also be - Sequentially pre-numbered credit
examinable: note

Goods returned by the customer - Prepare a report for reasons for


returns and actions taken by the
management.

- Signed by the manager

- Matched to invoice
Extras: -Exceptions reports created and reviewed (
old receivables, credit limit exceeded etc.)

-Amendments to master file data should be


restricted so that only senior officials
can make changes

-Aged receivables report: prepare monthly


and reviewed by a senior official

Compiled By: Sabin Thapa Certified College of Accountancy (CCA)

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy