Training, Teaching and Learning Materials

NEFAS SILK POLY TECHNIC COLLEGE

ACCOUNTS AND BUDGET SUPPORT LEVEL III

Learning Guide

Unit of Competence Process Applications for Credit

Module Title Processing Applications for Credit
LG Code: BUF ACB3 08 0921

TTLM Code: BUF ACB3M 08 0921

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TTLM Development Manual Date: September,2021
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INTRODUCTION

Welcome to the module “Process Applications for Credit”. This learner’s

guide was prepared to help you achieve the required competence in “Accounts and
Budget Support Level III”. This will be the source of information for you to acquire
knowledge attitude and skills in this particular occupation with minimum
supervision or help from your trainer.

Summary of Learning Outcomes

After completing this learning guide, you should be able to:

Lo1:- Check and verify application details
Lo2:- Submit assessment and decision
Lo3:- Maintain application records and complete necessary documentation

How to Use this TTLM

o Read through the Learning Guide carefully. It is divided into sections

that cover all the knowledge, skills and attitude that you need.
o Read Information Sheets and complete the Self-Check at the end of
each section to check your progress
o Read and make sure to Practice the activities in the Operation Sheets.
Ask your trainer to show you the correct way to do things or talk to
more experienced person for guidance.
o When you are ready, ask your trainer for institutional assessment and
provide you with feedback from your performance.

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TTLM Development Manual Date: September,2021
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Lo1:- Check and verify application details

Information may be related to:kinds of transactions, the most common being the sale of
merchandise or services on a credit sale.
Revenue, expenditure, production, and finance activities are common to business organizations.

This unit will provide an overview of transaction processing applications in each of these major

cycles of business activity. It discusses common revenue- and expenditure-cycle application

systems. These systems include sales order processing accounts receivable, purchasing, and

payroll. The application systems discussed in this chapter illustrate and emphasize the concept

of organizational independence (separation of functions) in the design of application systems.

Organizational independence requires that the custody of an asset be under a separate authority

from record-keeping functions related to that asset and both custody and record-keeping

functions be under separate authority from any operating functions that utilize the asset. The

applications presented are not intended to serve as blueprints to be duplicated regardless of to the

specific situation at hand. They are however, a checklist. They provide a frame of reference

against which an analyst may contrast a proposed or existing system.

The data flow diagrams and document flowcharts presentations focus on the logical necessities

of an application system rather than on physical features. The information represented by the

document symbol in diagrams may be a paper form, a telephone call, a computer or satellite data

Transmission, or any other physical form. Technological considerations (equipment and devices)

are not specifically addressed because, although technology may alter the operating

configuration of an application system, the same ends should be accomplished regardless of

technology. In this chapter you will be introduced with sales order processing, Types of sales
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TTLM Development Manual Date: September,2021
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order system, accounts receivable system, Transaction flows in Accounts receivable system,

Sales returns and allowances, Write offs accounts receivable and other revenue cycle application

systems.

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TTLM Development Manual Date: September,2021
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Lo2:- Submit assessment and decision

Sales Order Processing

A sales order application system comprises the procedures involved in accepting and

shipping customer orders and in preparing invoices that describe products; services and

assessments. The sales order is the interface between the various functions necessary to

process a customer order. These functions are sales order, credit, finished goods, shipping,

billing, accounts receivable, and general ledger.

Sales Order -- The sales order function initiates the processing of customer orders

with the preparation of a sales order. The sale order contains descriptions of Products

ordered, their prices and descriptive data concerning the customer such as name shipping

address, and, if necessary, billing address. At this point, the actual quantities shipped and

freight charges (if any) are not known. The invoice will be prepared after the goods have

been shipped and notice of this event is forwarded to billing. Because the invoice is prepared

after shipment, separate order and billing is also called post-billing.

Credit- A customer’s credit standing should be verified prior to the shipment of goods. For

regular customers, the credit check involves determining that the total amount of credit

granted does not exceed management’s general or specific authorization. For new customers

a credit check is necessary to establish the terms of sale to the customer. The sales order

function should be subjected to the control of an independent credit function to maintain the

separation of duties.

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TTLM Development Manual Date: September,2021
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Once credit has been approved, the sales order function distributes the sales order set. One

copy of each sales order is forwarded to billing. These are filed as open orders, allowing the

billing function to anticipate the receipt of matching shipping advices from the shipping

function. One copy – usually called the packing slip copy- is forwarded to shipping. This

copy authorizes shipping to receive goods from finished goods for shipping. Another copy –

usually called the packing slip copy – is forwarded to shipping. This copy authorizes

shipping to receive goods from finished goods for shipping. Another copy – usually called

the stock copy – is forwarded to finished goods. This copy authorizes finished goods to

release goods from its custody for shipment to customers.

In some cases, a customer’s order may require that a production order be issued to produce the

goods, because the goods are not in stock. Such situations arise when the order is for a special

nonstick item. They also may arise as standard company practice due to either the customized

nature of the product or a short production cycle that alleviates the need for an inventory of

finished goods. Such situations also occur when items are out of-stock and must be back

ordered. If the time between receiving an order and actual shipment of the order is significant,

an acknowledgment copy of the sales order may be sent to the customer to inform the customer

that the order has been received and is being processed.

Finished Goods- Finished goods pick the order as described on the stock copy of the sales

order (copy 3). Stock records are updated to reflect the actual quantities to be forwarded to

shipping. Actual quantities are noted on the stock copy of the sales order, which is then

forwarded along with the goods to shipping. Shipping should sign the stock copy to

acknowledge receipt of the quantities noted there on form of finished goods.

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TTLM Development Manual Date: September,2021
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Shipping- Shipping accepts the order for shipment after matching the packing slip copy

to the stock copy of the sales order. Shipping documentation is prepared according to the

situation. Frequently, this requires the preparation of a bill of lading. A bill of lading is the

documentation exchanged between a shipper and a carrier such as a trucking company. The

bill of lading documents freight charges and the transfer of goods from the shipping

company to the transportation company. Frequently, freight charges are paid by the shipper

but billed to the customer on the sales invoice. The packing slip copy of the sales order is

usually included with the customer’s order when it is shipped.

Billing - Shipping forwards documentation of the shipment to the billing function. This

documentation is termed the shipping advice and is usually the stock copy of the sales order and

a copy of the bill of lading. Billing pulls the related open order documentation, verifies the order,

then prepares the invoice by extending the charges for actual quantities shipped, freight charges

(if any), and taxes (if any). Invoices are mailed to customers. Invoices are recorded in the sales

journal and posting copies are sent to accounts receivable. Periodically, a journal voucher is

prepared and forwarded to the general ledger function for posting to the general ledger.

Accounts receivable and General Ledger- The distinction between billing and accounts

receivable is important to maintain separation of functions. Billing is responsible for invoicing

individual sales transactions, and accounts receivable maintains customer-accounts information

and sends periodic statements of accountant to customers. Billing does not have access to the

financial records (the receivables ledger), and the financial records are independent of the

invoicing operation. The control total of postings to the accounts receivable ledger that is sent to

the general ledger by accounts receivable is compared to the journal voucher sent from billing to
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TTLM Development Manual Date: September,2021
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validate shipping, and, finished goods is importance to the establishment of accountability for the

release of finished goods from inventory.

Authorised personnel may include: dispute resolution officer

 employees
supervisors and managers

Transactions may be processed: using manual or electronic systems

 using the standard procedures and systems of the financial services institution and may
include:
 bank cheques
 credit card transactions
 debits such as from:
 savings accounts
 cheque accounts
 inward credits/outward payments
 payroll deductions
Periodic payments.

Self Check

1. Transactions may be processed: using?

2. Authorised personnel may include?

3. Shipping documentation is prepared?

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TTLM Development Manual Date: September,2021
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Lo3:- Maintain application records and complete necessary

documentation
Customer transactions are processed in an accurate and timely manner using standard policies,
procedures and systems
Documentation or systems entry to support transactions is checked for accuracy and
completeness and customer account and transaction details maintained and verified using
correct procedures
Customer complaints and disputes are resolved or referred to other authorized personnel
and customer accounts are rectified where necessary
 The relevant financial services organisation's policies, procedures and systems may relate or
be influenced by: administrative and clerical systems
 database and IT systems
 product and account and service range
 range of responsibility
 size, type and location of branch
types of equipment used.

Accurate reconciliation of subsidiary ledgers to general ledger accounts is performed and fees

appropriate to the transaction are levied in accordance with standard procedures

Types of Sales Order Systems

Information Sheet – 1

Various relationships between the order, billing, and shipping functions are feasible depending

on the circumstances. The major consideration is the preparation of the invoice. In a complete

pre-billing system, the complete invoice is prepared at the same time as the shipping order. In

this case, the shipping order is usually a copy of the invoice. This system minimizes paperwork.

The invoice is released after the goods are shipped. A complete pre-billing system requires that

all invoicing information be known prior to the preparation of the invoice/shipping order set.

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TTLM Development Manual Date: September,2021
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This requires few back-orders or other inventory problems. Also, freight and other charges must

be either absorbed by the seller or standardized (e.g., “add 50 cents fir postage”). Any change

between the customer order as rewritten and as actually shipped requires a new invoice and the

destruction of the original invoice. If such situations are common, complete pre-billing is very

inefficient.

The shipping order is prepared separately from the invoice. The invoice is prepared after the

goods have been prepared for shipment. A separate order and billing system is necessary when

there is a significant difference between the information on the shipping order (internal to the

seller) and the invoice. For example, technical specifications in the shipping order may not be

required or desired on the invoice. Excessive back-order and out-of-stock conditions also warrant

this approach, because the final content of the invoice cannot be determined until the goods are

ready for shipment. In many industries, alterations of substitution of goods ordered are allowed

by customary trade practices. In retailing, for example, different styles or colors may be

substituted in an order for clothing. The changed specifications from the customer’s order must

be shown on the invoice. In other instances, several shipments are made to the same customer

over a specific time period under a single blanket order. In this case, there is no one-to-one

correspondence between the customer order and the subsequent invoices. Typically, one blanket

order requires several separate invoices-- one for each shipment made under the blanket order.

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TTLM Development Manual Date: September,2021
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Invoice Sample-
CITRUS SUPPLY CO. INVOICE
SOLD 1467 CLAY STREET
TO: PETERSBURG, WISCONSIN Burroughs B
44444

DITRUS SUPPLY CO.

SHIP 1467 CLAY STREET
TO: PETERSBURG, WISCONSIN
44444
TERMS ORDER CUSTOMER NO. SOL SHIP DATE INVO
NO. D BY VIA ICE
NO.
2-10NET 30 P87654 102,912 7 OUR NOV. 15 12,34
TRUCK 7

CODE QUANTI DESCRIPTI PRICE UNIT GROSS DISCO NET

13414522 TY ON 2.80 EA 28.00 UNT 28.00
12415710 10 CUTTING TIP1.90 EA 19.00 .00 18.62
15611410 10 TT-3 1.50 PR 7.50 .38 7.35
12488806 5 SCREWDRI 1.00 EA 10.00 .15 10.00
10 VR 6” .00 63.97
WELDING TAX 5.0% 3.20
GLOVE # HAN 25.00
10 DING 92.17
DSK

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TTLM Development Manual Date: September,2021
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Incomplete rebilling is a third type of sales order system. The incomplete pre-billing system is

very similar to a separate order and billing system. The only difference is that an invoice is

originally prepared by the sales order department rather than a sales order. The invoice is

completed to the extent possible, but because actual quantities shipped and freight charges (if

any) cannot be known with certainty until shipment, the invoice is incomplete (i.e., only partially

finished). This invoice is then distributed in the same fashion as the sales order in a separate

order and billing system--with copies to finished goods, shipping, and billing--except that

multiple copies of the invoice are sent to billing. When billing receives notification of shipment,

it pulls its copies of the invoice and completes them. In separate order and billing prepares the

original copy of the invoice when it receives notification to shipment.

Both separate order and billing and incomplete billing are post-billing systems. Incomplete

billing is commonly used in manual systems, as only one document (an invoice) rather than two

documents (a sales order and an invoice) must be prepared. This reduces transcription of

information and thus is often more efficient in a manual system. Note that the sales order is

primarily an internal document. The invoice, on the other hand, is the customer’s formal

notification of the amount due for the shipment. Note also that the terms invoice and bill can be

used interchangeably. A bill of lading is an invoice for freight charges. Separate order and billing

might also be called separate order and invoicing.

Accounts Receivable System-

Accounts receivable represents the money owed by customers for merchandise sold or services

rendered. Because most business is done on credit, accounts receivable often represents the

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TTLM Development Manual Date: September,2021
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majority of an organization’s working capital. Accounts receivable also maintains customer

credit and payment history information, which is useful in the overall administration of company

credit policies. Conceptually, the accounts receivable procedure is straightforward. A subsidiary

ledger of individual accounts is maintained, with a control account in the general ledger.

Remittance advices are routed from the cash receipts function; credit memos and other invoice

adjustments are routed to the accounts receivable department from the billing department. Debits

and credits are posted to the individual accounts; periodically, statements are prepared and sent

to customers. Aging schedules are prepared as a by-product of sending statements. Special credit

reports may also be prepared.

There are also two basic approaches to an accounts receivable application: open- item and

balance-forward processing. In open-item processing, a separate record is maintained in the

accounts receivable system for each of the customer’s unpaid invoices. As customer remittances

are received, they are matched to the unpaid invoices. In balance-forward processing, a

customer’s remittances are applied against a customer’s total outstanding balance rather than

against a customer’s individual invoices. Data processing of accounts receivable can be tedious

because of the volume of transactions and number of accounts that may exist. A large insurance

company or bank may have close to a million separate accounts. Even with computer processing,

mailing all statements at month’s end may be impossible. Many businesses use a cycle billing

plan, in which the accounts receivable file is subdivided by alphabet or the working days of the

month; for example, accounts A to H may be billed on the 10th, I to P on the 20th, and so on.

These plans often have a beneficial effect on a company’s cash flow, because consumers

generally pay bills shortly after receiving them.

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TTLM Development Manual Date: September,2021
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Ledger less bookkeeping may be used to streamline receivable procedures in certain situations an

important procedural question is whether copies of sales slips are to be included with monthly

statement. This practice is increasingly uncommon. Usually, individual transactions are itemized

on the statement, with supporting document references by either code or invoice number. A

company is obligated to produce supporting documents at the customer’s request; this demands

careful attention to the details of filing source documents. Owing to the preceding procedural

aspects some companies sell their accounts receivable at a discount to collection agencies. This

process, called factoring, avoids record keeping costs. This alternative should be considered by

the analyst. But he or she must also carefully consider the potential negative effects of factoring

on customer relations.

OPERATION SHEET 1: Describe team role and scope

Purpose:
This learning outcome aims to provide trainees with the knowledge, skill and
attitude teamwork. Understanding the concept of teamwork helps to make easy the
daily work activity.
Equipment, Tools and Materials:
 Computer
 Projector
 White board
 White board marker &Duster
 Lecture room
 Printer

Condition:

Students and trainer’s are legally required to lock the health and safety of trainer.
This applies to all organizations and including voluntary organizations.
 Students must provide safe working environment.
 Students must not put themselves or others at risk.

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TTLM Development Manual Date: September,2021
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Procedure:
 Need to establish a team
 Identify the team objective
 Prepare effective common plan
 Apply practically

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Self check

1. Accounts receivable represents?

2. Why Accurate reconciliation of subsidiary ledgers to general ledger accounts?

3. Customer transactions are processed?

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Error records and exception reports are analyzed and responded to according to standard
procedures and within required timeframes
Activity reports monitoring the nature and level of transaction activity are provided and
database records or customer files updated according to standard procedures and within
required timeframes

Types of Sales Order Systems

Information Sheet – 1

Customer records are stored safely, securely and in accordance with standard processes and

recognizing the requirement to protect customer privacy and commercial confidentiality

Transaction Flows in an Accounts Receivable System-

The main feature in transaction flow of accounts receivable is the separation of the following

functions.

Cash Receipts- Customer remittance slips are forwarded to accounts receivable for posting from

cash receipts. Accounts receivable does not have access to the cash or checks that accompany

customer remittances.

Billing- Invoices, credit memos, and other invoice adjustments are routed to accounts receivable

for posting to the customer accounts. This maintains a separation of functions. Billing does not

have direct access to the accounts receivable records.

Accounts Receivable- Accounts receivable is responsible for maintaining the subsidiary

accounts receivable ledger. A control account is maintained in the general ledger department.

Debits and credits are posted to the customer accounts from the posting media- remittance

advices, invoices, and so on- received from billing and cash receipts. This maintains separation
TTLM Development Manual Date: November ,2020
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of functions. Periodically, customer statements are mailed directly to customers by the accounts

receivable department. Periodic Processing also includes the preparation of an aged trial balance

of the accounts receivable subsidiary ledger for review by the credit department. Other types of

customer credit reports may be prepared based on the needs of the company. Such reports are

often prepared as a by-product of the processing required to send customers their statements.

Credit- Credit department functions in an accounts receivable application system include the

approval of sales returns and allowances and other adjustments to customer accounts, the review

and approval of the trial balance to ascertain customer’s creditworthiness, and the initiation of

write-off memoirs to charge accounts to bad-debt expense. These functions are discussed in what

follows.

General Ledger- General Ledger maintains the accounts receivable control account. Debits and

credits are posted to the accounts receivable control account fro the journal vouchers / control

totals received from billing and cash receipts. These amounts are reconciled to the control totals

sent to the general ledger directly from accounts receivable. This reconciliation is an important

control in the accounts receivable application system.

Sales Returns and Allowances-

Sales, returns and allowance typically require careful control. Allowances occur when, because

of damaged merchandise, shortages, clerical errors, or the like, the customer and the seller agree

to reduce the amount owed by the customer. Generally the merchandise is retained or destroyed

by the customer. The amount of an allowance is negotiated between the customer and the sales

TTLM Development Manual Date: November ,2020

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Training, Teaching and Learning Materials

order department (or salesperson). The allowance should be reviewed and approved by an

independent party (usually the credit department); when authorized, billing issues a credit

memorandum to document the reduction to the customer’s account. Sales return procedures

(i.e., for goods actually returned, usually for full credit) are typically initiated by the receiving

department. Once goods are received and returned to inventory for proper control (this would be

evidenced by documentation), the credit manager authorizes billing to issue a credit

memorandum. Note that for both returns and allowances, two independent parties are required to

approve the transaction, and a third party maintains the records. This is another example of

organizational independence in the design of application systems

Write-off accounts Receivable –

The principle of organizational independence also applies in the write off of accounts receivable

procedure. The central feature in a write-off procedure is an analysis of past due accounts,

usually done with an aged trial balance. Numerous techniques are available to collect past due

accounts (e.g., follow-up letters, collection agencies), but some accounts are ultimately

worthless. In this case the credit manager initiates a write-off, which is approved by the treasurer.

On approval, accounts receivable is authorized to write off the account. A copy of the

authorizations also sent to an independent third party (internal audit) for purposes of record

keeping. This is necessary because after the write off, accounts receivable no longer has an

active record of the account. Note that internal audit confirms write-offs directly with the

customer to ensure that no collections have been made on written-off accounts. An employee

might intercept a customer’s payment on account and then arrange for the account to be written

off, so that the customer does not continue to be billed for the amount.

TTLM Development Manual Date: November ,2020

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Other Revenue-Cycle Application Systems

Every organization defines its own unique application systems. A large organization

probably has several specialized application subsystems within its overall sales and accounts

receivable application systems For example; a sales order entry application system might

include a separate pricing or quotation subsystem-a set of files, documents, and procedures

used to price complex products such as electrical generating equipment. Another special

subsystem might maintain a firm’s product or service catalog. The shipping application

might include a warehouse subsystem concerned with converting an order into the exact

storage locations that need to be picked. An automated warehouse system might also

generate an optimal path for pickers to take through the warehouse to minimize travel

distance in picking the order. The shipping application might include a shipper-ordering

subsystem concerned with selecting shippers, grouping individual shipments to minimize

freight costs, and controlling all shipments. The finished goods function would maintain

several inventory files, and billing would need its own files and procedures.

Basic transaction processing systems are the source of important tactical and strategic control

information. Data for sales analyses such as product sales by territory, product sales by

salesperson, sales forecasting, customer credit analysis, and other such summarized reports are

accumulated by the transaction processing application systems. Such reports and analyses are

common and routine in a computerized accounting system. It is important to realize that these

types of upper-level management reports cannot be more accurate or reliable than the data on

which they are based.

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Summary

 A sales order application system comprises the procedures involved in accepting and

shipping customer orders and in preparing invoices that describe products; services

and assessments. The sales order is the interface between the various functions

necessary to process a customer order. These functions are sales order, credit,

finished goods, shipping, billing, accounts receivable, and general ledger.

 Once credit has been approved, the sales order function distributes the sales order

set. One copy of each sales order is forwarded to billing.

 These are filed as open orders, allowing the billing function to anticipate the receipt

of matching shipping advices from the shipping function. One copy – usually called

the packing slip copy- is forwarded to shipping. This copy authorizes shipping to

receive goods from finished goods for shipping. Another copy – usually called the

packing slip copy – is forwarded to shipping. This copy authorizes shipping to

receive goods from finished goods for shipping. Another copy – usually called the

stock copy – is forwarded to finished goods. This copy authorizes finished goods to

release goods from its custody for shipment to customers.

 The distinction between billing and accounts receivable is important to maintain

separation of functions. Billing is responsible for invoicing individual sales transactions,

and accounts receivable maintains customer-accounts information and sends periodic

statements of accountant to customers. Billing does not have access to the financial

TTLM Development Manual Date: November ,2020

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Training, Teaching and Learning Materials

records (the receivables ledger), and the financial records are independent of the

invoicing operation. The control total of postings to the accounts receivable ledger that is

sent to the general ledger by accounts receivable is compared to the journal voucher sent

from billing to validate shipping and finished goods is importance to the establishment of

accountability for the release of finished goods from inventory.

 Accounts receivable represents the money owed by customers for merchandise sold or

services rendered. Because most business is done on credit, accounts receivable often

represents the majority of an organization’s working capital. Accounts receivable also

maintains customer credit and payment history information, which is useful in the overall

administration of company credit policies. Conceptually, the accounts receivable

procedure is straightforward. A subsidiary ledger of individual accounts is maintained,

with a control account in the general ledger. Remittance advices are routed from the cash

receipts function; credit memos and other invoice adjustments are routed to the accounts

receivable department from the billing department. Debits and credits are posted to the

individual accounts; periodically, statements are prepared and sent to customers. Aging

schedules are prepared as a by-product of sending statements. Special credit reports may

also be prepared.

 Sales, returns and allowance typically require careful control. Allowances occur when,

because of damaged merchandise, shortages, clerical errors, or the like, the customer and

the seller agree to reduce the amount owed by the customer. Generally the merchandise is

retained or destroyed by the customer. The amount of an allowance is negotiated between

the customer and the sales order department (or salesperson). The allowance should be

reviewed and approved by an independent party (usually the credit department); when
TTLM Development Manual Date: November ,2020
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authorized, billing issues a credit memorandum to document the reduction to the

customer’s account. Sales return procedures (i.e., for goods actually returned, usually for

full credit) are typically initiated by the receiving department. Once goods are received

and returned to inventory for proper control (this would be evidenced by documentation),

the credit manager authorizes billing to issue a credit memorandum. Note that for both

returns and allowances, two independent parties are required to approve the transaction,

and a third party maintains the records. This is another example of organizational

independence in the design of application systems.

 The principle of organizational independence also applies in the write-off of accounts

receivable procedure. The central feature in a write-off procedure is an analysis of past

due accounts, usually done with an aged trial balance. Numerous techniques are available

to collect past due accounts (e.g., follow-up letters, collection agencies), but some

accounts are ultimately worthless. In this case the credit manager initiates a write-off,

which is approved by the treasurer. On approval, accounts receivable is authorized to

write-off the account. A copy of the authorizations also sent to an independent third party

(internal audit) for purposes of record keeping. This is necessary because after the write

off, accounts receivable no longer has an active record of the account. Note that internal

audit confirms write-offs directly with the customer to ensure that no collections have

been made on written-off accounts. An employee might intercept a customer’s payment

on account and then arrange for the account to be written off, so that the customer does

not continue to be billed for the amount.

TTLM Development Manual Date: November ,2020

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Training, Teaching and Learning Materials

 Every organization defines its own unique application systems. A large organization

probably has several specialized application subsystems within its overall sales and

accounts receivable application systems For example; a sales order entry application

system might include a separate pricing or quotation subsystem, a set of files,

documents, and procedures used to price complex products such as electrical

generating equipment. Another special subsystem might maintain a firm’s product or

service catalog. The shipping application might include a warehouse subsystem

concerned with converting an order into the exact storage locations that need to be

picked. An automated warehouse system might also generate an optimal path for

pickers to take through the warehouse to minimize travel distance in picking the

order. The shipping application might include a shipper-ordering subsystem

concerned with selecting shippers, grouping individual shipments to minimize

freight costs, and controlling all shipments. The finished goods function would

maintain several inventory files, and billing would need its own files and procedures.

TTLM Development Manual Date: November ,2020

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Training, Teaching and Learning Materials

Self Check
1. A sales order application system comprises?
2. Once credit has been approved, the sales order function distributes ? These are filed as ?

3. Every organization defines its own unique application systemson the Customer
transaction? Briefly explian?

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