In short
The order-to-cash process runs from receiving a customer order through credit approval, shipping, billing, recording the receivable and collecting payment.
Key takeaways
- Key controls include credit limits, matching shipping documents to invoices and prenumbered documents.
- Separating credit approval, shipping, billing and cash receipts reduces fraud risk.
- Revenue cutoff and existence of receivables are the main audit concerns.
Where it's tested
ISC: Business Processes & Automation — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
In an order-to-cash process, the system blocks a sales order when it would push the customer over its approved credit limit. This is: