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The Order Entry/Sales

(OE/S)Process

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The order entry/sales (OE/S) process includes thefirst four steps in the order-to-cash process1. pre-sales activities2. sales order processing

3. picking and packing the goods4. shipping

Billing and processing the customer payment, aredescribed in Chapter 11, the billing/accounts

receivable/cash receipts process

2

Introduction

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3

The OE/S Process Flowchart

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Control Matrix for OE/S Control Goals of the OE/S Business Process

Control Goals of the Operations Process Control Goals of the Information Process

Ensure effectiveness of operations:

Ensureefficientemploymen

t of resources(people,computers)

Ensuresecurity of resources

(inventory,customer master data)

For sales order inputs(i.e., customer orders),ensure:

For salesorder andinventory

master data,ensure:

For shipping noticeinputs (i.e., shipmentdata), ensure:

For salesorder andinventory

master data,ensure:

Recommended control plans A B C IV IC IA UC UA IV IC IA UC

UA

P-1: Enter customer order close towhere the order is received

P-1 P-1 P-1 P-1 P-1

P-2: Customer credit check P-2 P-2 P-2

P-3: Populate input screens with master data

P-3 P-3 P-3 P-3 P-3 P-3

P-4: Programmed edit checks P-4 P-4 P-4 P-4

P-5: Compare input with master data P-5 P-5 P-5 P-5 P-5

P-6: Preformatted screens P-6 P-6 P-6 P-6

P-7: Online prompting P-7 P-7 P-7 P-7

P-8: Procedures for rejected inputs P-8 P-8 P-8 P-8 P-8 P-8

P-9: Confirm input acceptance P-9 P-9

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OE/S Control Matrix, Contd. Control Goals of the OE/S Business Process

Control Goals of the Operations Process Control Goals of the Information Process

Ensure effectiveness of

operations:

Ensure

efficientemployment of resources(people,computer s)

Ensure

security of resources(inventory,customer master data)

For sales order

inputs (i.e.,customer orders),ensure:

For sales

order andinventorymaster data,ensure:

For shipping notice inputs (i.e.,

shipment data), ensure:

For sales

order andinventorymaster data,ensure:

Recommended control plans A B C IV IC IA UC UA IV IC IA UC UA

P-10: One-for-one checking of picking ticket with the goods

P-10 P-10 P-10 P-10 P-10

P-11: Enter shipment data inshipping

P-11 P-11 P-11 P-11

P-12: Turnaround document P-12 P-12 P-12 P-12

P-13: Automated data entry P-13 P-13 P-13

P-14: Independent shippingauthorization

P-14 P-14

P-15: One-for-one checking of goods, picking ticket, sales order

P-15 P-15 P-15

M-1: Independent customer master data maintenance

M-1 M-1 M-1

M-2: Review open sales orders(tickler file)

M-2 M-2

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P-1: Enter customer order close to where the

order is received.P-2: Customer credit check.

P-3: Populate input screens with master data.

P-4: Programmed edit checks.P-5: Compare input data with master data.

P-6: Preformatted screens.

P-7: Online prompting.

P-8: Procedures for rejected inputs.

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P-9: Confirm input acceptance.

P-10: One-for-one checking of picking ticketswith the goods.

P-11: Enter shipment data in shipping.

P-12: Turnaround document (picking ticket).P13: Automated data entry.

P-14: Independent shipping authorization.

P-15: One-for-one checking of goods, pickingticket, sales order.

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M-1: Independent customer master data

maintenance.

M-2: Review open sales orders (tickler file).

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The billing/accounts receivable/cash receipts(B/AR/CR) process is an interacting structure of people, equipment, methods, and controlsdesigned to create information flows and recordsthat accomplish the following:1. Support the repetitive work routines of the credit

department, the cashier, and the accountsreceivable department

2. Support the problem-solving processes of financial managers

3. Assist in the preparation of internal and externalreports

INTRODUCTION

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SYSTEMS FLOWCHART OF THE BILLINGFUNCTION

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P1: Review shipped not billed sales order

P2: Compare the input shipping notice to thesales order master data

P3: Independent billing authorization

P4: check for authorized prices, terms, freight,and discounts

P5: Independent pricing data

P6: Confirm input acceptance

P7: Reconcile input and output batch totals

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P8: Procedures for rejected units

M1: Confirm customer accounts regularly

M2: Computer agreement of batch totals

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SYSTEMS FLOWCHART OF THE CASHRECEIPTS BUSINESS PROCES

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P1: Immediately endorse incoming checksP2: Turnaround documentsP3: Enter cash receipts close to where cash isreceived P4: Edit cash receipts for accuracy P5: Compare input data with master dataP6: Manual agreement of batch totals

P7: Procedures for rejected inputsP8: One-for-one checking of deposit slip and checks.

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M1: Immediately separate checks and

remittance advices

M2: Reconcile bank account regularly

M3: Monitor open accounts receivable