Process Flow -

Revenue

(Insert Date)
Contracts
Customer and Sales
Representative fill
Start out a Retail
Installment Contract
for good/services.
Customer and Sales
Customer and Sales
Representative will
Representative will also
complete Customer Review
complete an Order form if
List and Notice of
applicable.
Cancellation.

Admin #1
Administrator# Admin #1 Admin #1
completes
Sales 1 receives ensures contract calculates Sales
Contract Top
Representative completed and attached Representative
Sheet and assigns
collects down contract along forms are signed commissions A
the contract a
payment, which with the and verifies based on
sequential
is a minimum of attached forms pricing and the standard
tracking number To
X%. from Sales financing commission
for data entry Contracts
Representative. arrangements. rates.
purposes. (continued)

To Cash
Receipt.

Source: www.knowledgeleader.com Page 2

Contracts (continued)
From
Contracts Standard Admin #1 enters data
Admin #1 accesses Yes
A Pricing/ including address,
system to enter contract
Terms contract terms, and
information into system.
Used? payment related info.
Contract
No Approval Form
must be signed by
the VP of
Sales/Admin.

Admin #1 reviews
System
contract entered against Admin #1 enters Admin #1 releases
automatically emails C
on screen contract control totals. batch.
reports to Admin #1.
totals. To Contract
Review

Source: www.knowledgeleader.com Page 3

Contracts (continued)

Administrator works
Administrator #2
Administrative with Corporate to
mails a copy to the
C Manager reviews resolve discrepancies Admin #1 files
customer with
and signs such as pricing and copies of contract.
acknowledgement
From contract. commission
letter.
Contracts calculation errors.
(continued)

Contract Processor
Sales Manager, Contract
resolves
Administrative Processor reviews
Admin #2 records discrepancies such
Admin #2 creates Manager, and VP weekly reports of
purchases in as gross errors in End
the customer file. review weekly contracts and
system. commission
Price Exception commissions for
calculations and
Report. reasonableness.
contract inputs.

Source: www.knowledgeleader.com Page 4

Merchandise Trust Income

Income Allocation

Twice a year the System allocates

Manager Manager feeds income trust income
consolidates the earned by location into earned by location Income allocated to
Start End
monthly income on the Earnings Allocation to individual merchandise trust.
the merchandise Program in system. contracts and
statements. items.

Income Recognition

Accounting makes journal

Accounting makes journal The Controller
entry to record trust
Merchandise trust entry to record trust income applies the SAB
income withdrawn due to
income is accrued earned. 101 journal entry
Start servicing. End
for on a monthly Dr Investment in Trust deferring
Dr Cash
basis. Cr Accrued Income merchandise trust
Cr Investment in Trust
income.

Source: www.knowledgeleader.com Page 5

5
Bank Drafts

Sales Person Hardcopy or

The Bank Bank Draft information is
meets with photocopy of Bank
Draft form either entered by Site
Start customer Draft form is sent
is filled Administrator or sent to
requesting Bank to Corporate for
out. Corporate for processing.
Draft. filing.

SYSTEM

D From Bank Drafts

(continued)

A/R Maintenance
Hardcopy or photocopy
Yes Representative agrees Pre-noting is
Is the Bank received from site
information, transit # and automatically E
Draft set up location is filed in A/R
account # from done by system
in system? Maintenance
hardcopy/photocopy to upon entry. To Bank Drafts
Representatives cabinet.
information in system. (continued)
No

A/R Maintenance
Representative
enters Bank Draft
information.

Source: www.knowledgeleader.com Page 6

 Bank Drafts (continued)

Corporate Location contacts

Corporate Accounting A/R Maintenance
Accountant Are customer and
Yes notifies A/R in turn notifies
E receives reply from corrections correct
Maintenance that locations that
bank noting if any to bank draft information is
information is information is
From corrections are needed? sent to A/R
incorrect. incorrect.
Bank Drafts needed. Maintenance.
No

End
A/R Maintenance
makes corrections D
within system.
To
Bank Drafts

Source: www.knowledgeleader.com Page 7

Bank Draft Cancellation and Reinstatement
Bank Draft Cancellation

Corporate A/R Maintenance Is it their 3rd

Yes Customer is
Accountant Report sent to A/R Representative reviews insufficient
contacted by mail
Start receives Returned Maintenance report and compares to draw in a
and removed from
Item Report from Representative. customers detailed row or 4th
bank drafting.
Bank. account. overall?
No

End End

Bank Draft Reinstatement

Collectors contact customer

Customer requests
and explains that they will Payment Customer
Start to be re-entered End
be re-entered upon receipt of received. re-entered.
into bank drafting.
next payment.

Source: www.knowledgeleader.com Page 8

 Cash Receipt

Receptionist gives
Receptionist picks
Receptionist runs tape and cash F
up mail from post
tape of totals. receipts to Admin
office box.
#2.
To Cash
Receipt
(continued)

Receptionist writes
Administrative The next day
receipt, gives
Manager verifies Administrative
Receptionist original to customer
totals and signs Manager recounts F
Start receives customer and logs receipt into
summary sheet and and gives summary
payments. the Front Desk
locks cash receipts in sheet and receipts to
Summary Sheet and To Cash
office. Admin #2.
signs. Receipt
(continued)

Sales Admin #1 logs

Admin #1 receipts Admin #1 gives
Representatives receipts into the
payment and gives summary sheet and F
receive down Office Receipts
copy of receipt to receipts to Admin
payments from Summary Form and
B Sales Representative. #2.
customers. signs. To Cash
Receipt
From Contracts
(continued)

Source: www.knowledgeleader.com Page 9

Cash Receipt (continued)

Admin #2 collects all

No receipts and authorization
Credi
F forms and creates the G
t
deposit package and fills
Card?
From Cash out the Daily Deposit Face To Cash
Receipt Sheet. Deposit and
Yes
Receipt

Admin #2 processes card

and obtains credit card
authorization form.

Source: www.knowledgeleader.com Page 10

Cash Deposit and Receipt

Receptionist
Administrative Admin #1 accesses
G makes the deposit Admin #1 enters
Manager reviews the system in order to
the same day receipts.
deposit package. post cash receipts.
From Cash around noon.
Receipt
continued

Admin #1 compares Batch is released.

Admin #1 enters
system balance to input reports are
totals from face sheet Reports are filed. End
validated deposit then received by
as control totals.
ticket. Administrator #1.

Source: www.knowledgeleader.com Page 11

Price File Maintenance

VP of Sales makes Locations are sent new

determination with pricing via price lists, Locations update their
Start
regards to the Sales Price memos, and emails from paper price lists.
of items. the VP of Sales.

Accountant at Corporate
Accountant at Corporate Accountant at Corporate
accesses system and
requests price lists from makes changes in End
ensures price list agrees
each location annually. system.
to prices in the system.

Source: www.knowledgeleader.com Page 12

Credit Card Closing
(Credit Card System)

Credit & Collections Credit card

Locations individually Nightly the system
will enter credit card transactions will hit
enter their credit card closes all credit
Start sales under each each locations End
sales into card sales for the
location into bank accounts two
(insert system). day.
(insert system). days after close.

(Credit Card Processing Vendor)

At the end of each Report automatically Staff Accountants

month, Corporate downloads into an matches amounts from
Start Accountant downloads excel spreadsheet the Spreadsheet and End
credit card report from and is saved onto the GL account to the bank
(insert system). (insert location). statements.

Source: www.prodigiousanalysts.com
www.knowledgeleader.com Page 13