Accounting Information Systems:
A Business Process Approach
Chapter Eleven: The Revenue Cycle
Exhibits: 11.3
Tables: 11.1 - 11.3
Exhibit 11.3 Input Controls
The following types of input controls were identified in Chapter 4.

Drop-down menus that provide a list of possible values to enter.
 Record checking to determine whether data entered were consistent with data
entered in a related table.
 Confirmation of data that were entered by a user by displaying related data from
another
table.
 Referential integrity controls to ensure that event records are linked to records in
the
related master table(s).

Format checks to limit data entered to text, numbers, or dates.

Validation rules to limit the data that can be entered to certain values.

Use of defaults from data entered in prior sessions.

Computer-generated values entered in records.

Batch control totals taken before data entry compared to printouts after data entry.

Review of edit report for errors before posting.
 Exception reports that list cases where defaults were overridden or where unusual
values
were entered.
Table 11.1 Alternative Revenue Cycle Systems*
Characteristic
System Requirements
Alternative Ordering Methods:
1. Order before delivery
Track orders
2. Immediate customer
pickup (no order)
Alternative Payment Timing:
1. Before delivery
2. At time of delivery
to maintain
3. After delivery
Alternative Forms of Payment:
1. Cash
reductions
2. Check
non-
No need to track orders
Track advance payments by customers
Record cash collections, but may not need
customer balances
Track amounts owed by customers
Must reconcile cash collections with sales or
in accounts receivable
Same as above. In addition, if a check is returned
sufficient-funds, must track amount owed by
customer
3. Credit or debit card
card validity
4. Sales on account
Must have equipment that can determine
Must send transactions to a third party
Must save signed receipts for credit card purchases
Must track amounts owed by store credit customers
Must bill customers
Table 11.2 Examples of Alternative Revenue Systems
Example/Type
Order Method
Payment Timing
Form of Payment
Restaurant
Order before delivery
After service
Convenience store No order
At time of purchase
Cash only
Magazine publisher Order (subscription)
Before receipt
Check or card
Table 11.3 Layout of Revenue Cycle Records
MASTER TABLES
Customer Table
Customer#
Name
Address
3451
Educate, Inc. Fairhaven, MA
Contact_
Person
Telephone
Costa
Quantity_
on_Hand
G/L_
Sales
Due_
Days
Credit_
Limit
Balance
_Due
508-888-4531
4000
30
$12,000
Quantity_
Allocated
G/L_
Sales
G/L_
COGS
Budget_
Sales_
Quantity
YTD_
Quantity
_Sold
$78.35
0
0
4000
5210
Inventory Table
ISBN
Author
0-256-12596-7
Title
Default
_Price
Barnes
Introduction
to Business
EVENT TABLES (related detail tables shown at end)
Sales_Order Table (E1)
Order#
Date
Employee# (Order Entry Clerk)
Customer#
219
05/11/03
201-35-8921
3451
Shipment Table (E3)
Shipment# Date
Order#
Employee# (Warehouse)
831
540-89-5403
027-40-0130
Sales_Invoice Table (E4)
Invoice_
Invoice# Shipment# Date
Original_
Due_Date Amount
Amount_
Paid
3003
06/11/03
05/11/03
831
219
05/12/03
$1,169.90 $0
Employee# (Shipper) Freight
$3.00
G/L_Post
Post_Date _Date
05/12/03
Table 11.3 Layout of Revenue Cycle Records (Continued)
Cash_Receipt Table (E6)
Payment# Date
Employee# (AR clerk) Amount
4003
05/19/03
031-42-9517
Post_Date G/L_Post_Date
$6,199.90
503
Deposit Table (E7)
Deposit# Date
Employee# (Cashier)
Amount
503
391-87-0202
$6,199.90
05/19/03
EVENT DETAIL TABLES
Sales_Order_Detail Table (E1)
Order#
ISBN
219
0-256-12596-7
219
0-146-18976-4
Order_Quantity
15
1
Quantity_Shipped
0
0
Shipment_Detail Table (E3)
Shipment# ISBN
Quantity_Shipped
Quantity_Invoiced
831
831
14
1
0
0
0-256-12596-7
0-146-18976-4
Sales_Invoice_G/L_Detail Table (E4)
Invoice# G/L_Account#
Amount
3003
3003
3003
3003
3003
1050
4200
4000
5210
1120
$1,169.90
($3.00)
($1,166.90)
$732.00
($732.00)
Deposit#
Price
$78.35
$70.00
Table 11.3 Layout of Revenue Cycle Records (Concluded)
Cash_Receipt_Detail Table (E6)
Payment#
Invoice#
Amount
4003
4003
$1,169.90
$5,030.00
3003
3052
Cash_Receipt_G/L_Detail Table (E6)
Payment#
G/L_Account#
Amount
4003
4003
$6,199.90
($6,199.90)
1000
1050