returns system
Sales return system is important for KK plc. Under the Sales of Goods Act 1979, customers are allowed to make a claim if the goods purchased are not as described, does not match their satisfactory quality or does not fit for purpose. Customers have the rights to get a full refund or to get the goods replaced if the goods purchased are faulty or if the goods are not up to their expectation.
Debit/credit memoranda are source documents, which affect both sales and purchasing processes. A credit memorandum is a transaction that reduces amounts receivable from a customer. For instance, businesses issue these memoranda to indicate the return of damaged goods or differences about the amount owed.
Typically, a form of documentation accompanies the returns such as the packing slip that was initially shipped together with the goods. The customers return the goods and include the packing slip that was previously issued. The customer invoice is then retrieved and used to select the goods and quantity that were returned by the customers. Next, the goods
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As a sales system begins with a customer order, it is vital to ensure that KK only sell to customers who are able to pay. Orders should not be accepted if the customers have poor credit ratings. Orders also should never be accepted for processing without performing credit checks. The implication of this is that goods could be delivered to customers who will not pay up. There is a risk that KK could suffer losses as a result of bad debts due to granting orders from customer with poor ratings. The credit manager needs to carefully make decisions on whether credit should be extended to customers or the amount of credit that should be given to individual customers. An extension of credit to customers should only be granted to customers who frequently meet the payment
The Corporation’s objective is to minimize its exposure to credit risk from customers in order to prevent losses on financial assets by performing regular monitoring of overdue balances and to provide allowance for potentially uncollectible accounts receivable. The Corporation has also insured a portion of its outstanding accounts receivable with Export Development Canada.
Through the use of statistics, expert testimony, appeals to emotions, and a few comparisons, Scurlock tries to convey his message saying that because the lending industry’s main concern is maximizing profits, they have made it impossible to not have a credit card and avoid being taken advantage of. He accomplishes his goal of clearly relaying his argument to the audience with the high amount of credible support he provides.
...with a return policy’s. Guarantee to their customers. However customers trust both companies.to support the need for high value, operations must be ensure that their production are high of quality and usually undamaged.
Accounts Receivable has good separation of duties and strong internal controls such as control numbers and reconciliations to sales and bank statements. One weakness in the Accounts receivable system is the accounting supervisor approves summary entries and reconciles the general ledger account, which could indicate a weakness with segregation of duties. We recommend that the controller approves of summary entries to segregate these duties.
As you can see from the points above it is vital to give good customer
Improve decision making on customers and sales orders based on the information provided by the new system.
The software already has this information stored. Then the user can print a check and send it or use electronic payment. The financing cycle is over. Financing activities involve such things as investments in and withdrawals from companies by owners, borrowing and repaying debts. Sage 50 allows users to record receipts separate from customer receipts, which can be credited to an equity account to represent investment or to a liability account to represent the borrowing of money.
Zappos is very popular with its 100 percent satisfaction guaranteed 365 days return policy. Zappos encourages customers to order a number of product they want and customers can return the items that is not satisfied with the product. Although it is difficult for small company to apply this, but most customers want the aptitude to send back the items that is not satisfied in a reasonable amount of time.
1.1 Explain the value of customer service as a competitive tool Customer service is valued as a competitive tool by many organisations. It gives you the ability to gain customer loyalty while meeting the customer’s expectations. Staff will have the skills and knowledge that will provide a competitive edge. Most organisations are known for the quality of their customer service. This means that they are known for good customer service or poor customer service.
Providing great customer service and having the ability to retain customers require consistency in delivering the anticipated services. Customer service encompasses having the ability to provide a service or product to customers by means in which it was promised. However, there are times when unforeseen circumstances may occur, resulting in customer service breakdowns. Understanding the effectiveness of customer service relations provides the assurance needed to handle complicated service related issues. A well qualified customer service representative has the acquired skill to effectively defuse a potentially damaging service related matter. Service recovery influences customer retention and improves customer satisfaction.
Loyalty of customers – we have buildup a long term relationship with our customers because of the credit accounts we
Company policy requires the cash to be received before or after rendering a service. Due to some business reasons, the management has been extending credit to clients contrary to the guidelines.
...f these financial problems is to read over the regulations and payment guidelines. It has become a necessity for all borrowers to research and be aware of what the credit card company’s want and will do as a consequence to late payments. By not educating themselves, borrowers will be scammed into spending more money then they originally intended to. As long as these consumers spend their money wisely and properly the credit card can work in their favor but until then people will continue to be in debt and spend their money in am unjust manner.
Customer Profitability Analysis assign sales, general and administrative costs and resources to the customers groups, that helps in making more profitable budget allocation decisions and to simulate the impact of decisions, such as price adjustments and resource allocation decisions, on the potential profit contribution of their customer base, thereby strengthening the decision-making process and enables long term organisational profitability by maintaining customer relationship and satisfaction (Gupta and King, 1997). Apart from helping better decision making, customer profitability analysis also helps in motivating managers and employees by providing volume of relevant information. Organizations that may not benefit from Customer Profitability Analysis include those whose costs to serve are small and pre-sale and post-sale services are not important in gaining a competitive advantage. This would be the case in organizations whose customers are relatively homogeneous or indistinguishable. In such rare cases, customer gross margin may be sufficient to obtain Customer Profitability Analysis benefits (Cooper and Kaplan,
Consider what they want achieved. Are they returning an item? Do they want a full or partial refund? Are they having problems with their online account?