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Revenuc Cycle - System Documentation The following describes the revenue cycle procedires for a hypothetical company. The sales department clerk. receives bard-copy customer orders and mamally prepares a six-part hardcopy sales order: Copies of the sales order are distributed to various departments as follows: Copies 1,2, and 3 go to the shipping department, and Copies 4,5 , and 6 are sent to the billing department where they are temporarily filed by the billing clerk. Upon teceipt of the sales order copies, the shipping clerk picks the goods from the warehouse shelves and ships them to the customer. The cletk sends Copy 1 of the sales order along with the goods to the customer. Copy 2 is sent to the billing department, and Copy 3 is filed in the shipping deparment. When the billing clerk receives Copy 2 from the warebouse, she pulls the other copies (4,5,6) from the iemporaty fle and completes the documents by adding prices, taxes, and freight charges. Then, using the department PC, the billing cleck records the sale in the digital Sales Journal, sends Copy 4 (customer bill) to the customer, and seads Copies 5 and 6 to the AR and inventory control departments, respectively. Upon receipt of the documents from the billing cietk, the accounts receivabie and inventory control clerks post the transactions to the AR. Subsidiary and Inventory Subsidiary ledgess, respectively, using their department PCs. Fach clerk thea fites the respective sales order copies in the depariment. On the payment due date, the cuistorver sends a check for the full amount and a copy of the bill (the remittance advice) to the company. These documents are received by the mailroom clerk who distributes. them as follows: 1) The checic goes to the casb receipts clenk, who manually records it in the hard-copy cush receipts journal and prepares two deposit sliph. One deposit slip and the checks are sent to the bank; the biber deposit slip ia filed in the casb receipts deparment. then files the document

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