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
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.
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.
Sales Force Sales Force (SF) is an important aspect to any company’s success. In the past, we have known to associate SF with aggressive selling, as that was their main approach in obtaining revenue for many companies. Technological advances have changed the way companies utilize its SF.
transaction is a concern for closing a deal as Kutz put it; it’s a challenge for business to customer to
...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.
If they do not pay after the reminder is sent, it will highlight to Joanne any overdue amounts of that particular debtor, and she can immediately chase them up. Getting debtors to regularly pay will speed up her business’ cash flow. However, when Joanne is unable to get the money back from the debtor after this, Joanne will write the quantity off as a bad debt, as shown in … . To prevent bad debts from occurring, Joanne can establish a firm Credit Policy to protect her business’ cash. The Credit Policy must have the potential customer’s name, date of birth, employment, place of residence, credit history, clear payment terms and credit limits, and address non-payment and bad debts. These will allow Joanne to check if the customer is credit worthy, and also if she is checking the correct person. When she does this, Joanne can make sure she sells on credit to only customers who are likely to pay her back, and make sure her business’ cash flow is not too badly affected. Credit limits are important because they allow debtors to manage how much they can pay
Example. For example, if a user needed to enter the sale of a product on credit to a customer, if the customer has already been entered into the system and the inventory item is already set up to be tracked by the system, the user would need to enter the customer and what was sold and any additional information which differs from defaults. If the sale was preceded by a sales order, the product information can simply be imported from the sales order. The user can then print the invoice, send it to the customer, and wait for payment to come.
Establish clear payment terms and expectations with your customers and have a formal receivable collection process in place. Consider discounts for prepayment or require a deposit for large purchases.
Customer provide funds for the merchandise which further constitutes to the cash inflow cycle for the transaction through appropriate mode of
Begin with the description of main steps, there are four processes: the receipt of order, the despatch of goods, the recording of the sale and subsequent receipt of payment.
Product recall plays an important role in reverse logistics. Recall of products take place due to some defects that might endanger the customer or because of some safety issues that will put the manufacturer in a risk of legal action. When such an incident occurs, the manufacturer has to act immediately and effectively since this can harm the brand of company and can lead to adverse effects, upon consumption. The recalled commodities need to be refurbished or recycled, which is a different part of Reverse Logistics.
Funds owed to a company by a customer for products and services provided on credit.
Basically, a debtor and creditor agreement or consumer-credit agreement is regulated by the Consumer Credit Act 1974. It may be either (1) a restricted-use credit agreement to finance a transaction between the debtor and a supplier in which there are no arrangements between the creditor and the supplier. For instance, when a loan is paid by the creditor direct to a dealer who is to supply the debtor (2) a restricted-use credit agreement to refinance any existing indebtedness of the debtor's to the creditor or any other person (3) an unrestricted-use credit agreement such as a straight loan of money that is not made by the creditor under arrangements with a supplier in the knowledge that the credit
Ford analyzed the existing business process and discovered Ford’s purchasing department wrote a purchase order and sent a copy to account payable. Later, when the goods were received by material control, a copy of the receiving document was sent to account payable and lastly the vendor would send an invoice to account payable (Hammer, 1).
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.