Sales and Cash Receipts Production and

Shipping Department
Department

Customer A

Output Plan
Customer Order

Plan Output and Determine Sale Price Check Raw Materials

C.O.
Output Plan
Output Plan
A
Sale Price B

Manufacture Products
Approved Customer Order
Down Payment
Customer

Receipt
Receive down payment, issue receipt and approve customer order A.C.O.

Output Plan

Customer

Down Payment
Manager Ship Products

Approved Customer Order

B

Customer Cash A.C.O.

Output Plan
Receipt
Collect Balance and Issue Receipt

N
Customer

Manager Cash
REVENUE PROCESS

The sales and cash receipts department manager receives a customer order
from the customer and plans the output and determines the price of the
product. The output plan is sent to the production and shipping department
and the sale price is relayed to the customer.

Then, the manager receives down payment from the customer and
issues receipt to the customer and approve the customer order. After
approval, the approved customer order is sent to the production and
shipping department.

The production head first receives the output plan and check the raw
materials available for production. Then; upon receipt of the approved
customer order, it is reconciled with the output plan and the products are
manufactured.

After production, the workers ship the products and the approved
customer order and output plan is filed in the production and shipping
department.

Upon delivery, the manager collects the remaining balance from the
customer and issues receipt to the customer.

ANALYSIS CONTROL

The business entity requires fifty percent down payment to process customer
order, and negotiate the term of payment of balance. They make sure that
the payment was made in full before they deliver the order. They also
established a good customer relationship, for they always want to satisfy the
customers expectation and provide after-sales customer service. Upon
completion of product, they may deliver immediately or wait for the call of
the customer, whatever the customer wants.

The way of getting orders from the customers are informal, in the form
that the customers show the desired output or preferred design and
discussed with them the measurements. The business operates in job-order
basis. It lacks advertisements and also do not have a regular supplier. The
regular workers are also limited, and only call for additional when needed.

The business had no record or book of accounts, the only evidence of

payment was the receipt given to the customer every time they pay. They
also allow their production workers to accept the payment of the customer
upon delivery, which may give them the opportunity to commit fraud. The
location is located along the highway and is an open area, despite of the
products being displayed they dont provide much security to the items.