Chapter The Billing/Accounts Receivable/Cash Receipts (B/AR/CR) Process Learning Objectives • • • • • • Understand relationship between B/AR/CR and its environment Understand relationship between B/AR/CR and management problem solving at various levels of the organization Become familiar with some of the technology used in implementing the B/AR/CR process Achieve a reasonable level of understanding of the logical & physical characteristics of the process Gain a foundation level of understanding as to how enterprise systems impact the processing of information in the B/AR/CR process Recognize some plans commonly used to control the B/AR/CR process B/AR/CR Process B/AR/CR Spoke on AIS Wheel • In this chapter we spotlight one business process, (B/AR/CR) process • We will describe the various users of the (B/AR/CR) process, each having their own view of the enterprise system and enterprise database • In addition, we will analyze the process controls related to the (B/AR/CR) process Introduction • The billing/accounts receivable/cash receipts (B/AR/CR) process is an interacting structure of people, equipment, methods, and controls designed to create information flows and records that accomplish the following: Support the repetitive work routines of the credit department, the cashier, and the accounts receivable department Support the problem-solving processes of financial managers Assist in the preparation of internal and external reports Horizontal View B/AR/CR Shipping department informs the accounts receivable department (billing section) of shipment Horizontal View B/AR/CR Accounts receivable department (billing) sends invoice to customer Horizontal View B/AR/CR Accounts receivable department (billing) informs general ledger process that invoice was sent to customer Horizontal View B/AR/CR Customer, by defaulting on amount due, informs credit department of nonpayment Horizontal View B/AR/CR Credit department recommends write-off of the receivable and informs accounts receivable department Horizontal View B/AR/CR Credit department, by changing credit limits, informs sales order department to terminate credit sales to customer 10 ... CSS systems with enterprise systems – In some cases, customers can check their orders during the manufacturing process or check inventory before placing orders – Some of the more advanced systems. .. customer selfservice systems? – The payback on such systems is huge – Reduction of staffing needs for call centers is particularly beneficial 15 Digital Imaging Processing Systems • Because of... characteristics of the process Gain a foundation level of understanding as to how enterprise systems impact the processing of information in the B/AR/CR process Recognize some plans commonly used to control