15
These tasks are performed by two separate units within the accounting
department.
4)
Cash collections, which handles customer remittances and deposits them in
the bank.
2.2.2
Objectives of RC
The essential purpose of the RC is to provide the right product in the right place
at
the
right
time
for
the
right
price
(Romney
and Steinbart
2006,
p.
355).
Wilkinson et al. (2000, p. 416) classify the objectives within this broad purpose,
which are:
1)
To record sales orders promptly and accurately.
2)
To verify that the customers are worthy of credit.
3)
To ship the products or perform the services by agreed dates.
4)
To bill for products or services in a timely and an accurate manner.
5)
To record and classify cash receipts promptly and accurately.
6)
To post sales and cash receipts to proper customers’ accounts in the accounts
receivable ledger.
7)
To safeguard products until shipped.
8)
To safeguard cash until deposited.
2.2.3 Documents related to RC
The
whole
process in
RC
comprises of input,
process,
and
output
stage.
This
process
involves
documents
that
are
needed in
RC
operation.
Documents
are
records
of transactions
or
other
data
of
the organization
(Romney
&
Steinbart
 |