Accounting information system - Admission/Application Essay Example

The goals benefit the shop. The overall cycle helps various processes that are involved in the manufacture, transport and sales of books that benefit the company. Two subsystems are involved in the revenue cycle, and they include cash receipts and sales order processing the cash receipts comprise activities such as bank deposits, collecting, and recording accounts while the sale order processing comprises activities achieved through credit. It is an opposite of the cash receipts and involves preparation of credit grants, sales orders, and the shipment of products to customers, inventory, transaction accounts, and other expenses.

Revenue cycle for a Book Retail Shop may improve its information processing between employees and customers it has to analyses its revenue cycle in this aspect so it can better manage in realizing its goals and objectives (May, 2004). The primary objective of the revenue cycle is to provide the right product in the correct time at the appropriate place for the right price. The revenue cycle is a fundamental cycle to understand. Failure to manage your business’ cash flow leads to failure. Understanding the use of technology is essential for both reducing costs and for improving customer service and differentiating your business from your competitors.

Sales order techniques include the tasks involved in processing and receiving a customer order, filling the shipping and order products to the purchaser, billing the client at the appropriate time, and appropriately accounting for the operation (Puu & Sushko, 2006). In case of the Book retail shop, the wholesale customers’ orders are faxed or mailed to the sales department. The sales clerk checks the clients’ creditworthiness when the orders are received. The clerk enters the orders in the computer after verifying the credit of the customers.

The appropriate warehouse and shipping department get a digital copy of the order for further processing. The sales are recorded in