Common Flowchart for revenue cycle ...

The following is a common flowchart for a revenue cycle using the POMM-RMP-SAG-PSA mnemonic: 

• Perform a credit check
• Open order file
• Match customer P.O (purchase order) with sales order
• Match sales order with shipping document
• Release goods for shipment
• Master price file
• Prepare sales invoice
• Sales invoice
• AR department
• GL master file
• Prepare sales journal
• Sales journal
• Aged Trial Balance

Revenue Transaction Cycle Notes: 

• Using data previously verified and stored in the customer master file, performing validity checks, and using completeness checks helps prevent incomplete or inaccurate customer orders. 
• Requiring signed purchase orders designed to prevent recording fictitious customer orders.
• ​Enforcing customer’s approved credit limits designed to prevent credit sales from becoming uncollectible.
• Monitoring supplier performance and periodically verifying inventory balances prevent inventory issues such as stockouts, excessive carrying costs, and unplanned markdowns.
• Using barcode scanners, field checks, completeness tests, and validity checks designed to prevent picking, packing, and shipping errors.
• Requiring acknowledgment and verifying approval for all inventory movement designed to prevent or detect inventory theft.
  
• Accounting for all shipment documents and verifying that all shipments have been recorded designed to prevent the failure to bill customers for items shipped.
  
• Using barcode scanners and the inventory master file for pricing designed to prevent pricing mistakes on customer bills.
  
• Use of verification and accuracy techniques designed to prevent errors in customer accounts.
  
• Providing alternatives to cash remittances, maintaining proper segregation of duties, timely deposits of cash, and verification procedures designed to prevent or detect the theft of cash by employees.