Understanding Business Cycles: Sales, Billing, and Payroll
Classification of Lists
- Finished Products: Goods originating from a manufacturing or processing intended for sale.
- Product in Progress: Goods that have not been fully completed to produce finished goods.
- Raw Material: Properties acquired with the goal of making finished goods.
- Factory Supplies: Inventories required to carry out the production process.
- Packing Material: Materials used for packaging the final product.
- Goods in Transit: Purchased goods for which the property is owned.
Billing Process
The billing process aims to control, process, and record all activities or operations with the goal of maintaining and increasing sales.
Sales Classification
- Unit Volume: Details the lost and specific amounts.
- By Funding: Cash or credit sales.
- By Terms of Delivery and Prices: Future delivery, partial deliveries, and right to return.
Sales to the Future
This is a legal agreement between a buyer or seller and an agency for a future exchange made through a stock exchange.
Sales with Right to Return
Income from sales in which the purchaser may have the right to return the product.
The Sale Process
The sale process includes:
- Home Order or Purchase Order
- Development of the Bill or Note of Office
- Preparation of Office
- Preparation of the Bill
- Delivery of Goods to the Customer
- Customer Collection
- Preparation of Foreign Receivables
- Make the Deposits of Recovery in Cash
- Preparation of Sales Statistics
Billing Cycle Registrations
- Register Sales Credit
- Registration of a Cash Sale Discount
- Billing Charges
- Returns of Merchandise Registration
Classification of Accounts Receivable
- Trade: Revenue from sales or services, the company’s major operations.
- Related Companies: Operations with related companies.
- Employees: Loans or other advances to employees.
- Other: Various operations.
Objectives of Internal Control in the Billing Cycle
- Integrity: Record of all transactions.
- Availability: Valid record of transactions made by the entity.
- Accuracy: Ensuring the proper recording of transactions.
Payroll Cycle Systems
- Payroll System
- Contractual Benefits System
- System of Loans to Employees
- Information on Payroll System
Administration Staff
Refers to all work related to the payment of salaries and wages.
Need New Staff
Arises from dismissal or resignation of personnel and replacement or increase in establishment of workers.
Payroll Process
Depending on the system used for the calculation of the payment.
Control of Time
Allows a proper calculation of costs and labor.
Related Accounts
- Loans to Employees
- Payroll Payable
- Deductions and Contributions Employers
- Advance of Benefits
- Social Services or Charges