Sales and Accounts Receivable
A sample of weekly sales invoices shall be analyzed from the sales report by product category . All sales are on account . Sales are classified into four product categories : cosmetics , skin care , fragrance , and personal care . Charges to customer accounts should be dated with the date of shipment .
Sales invoices are prepared in batches on a daily basis using numbered sales invoices . Sales invoice numbers are automatically generated by the company ’ s computer system . The accounts receivable clerk does not have appropriate computer rights to override the computer-generated invoice number . Upon preparing sales invoices , the accounts receivable clerk verifies that the first invoice number of the batch is consistent with the last invoice number of the previous batch . Inconsistencies or skipped sales invoice numbers are investigated and resolved before new sales invoices are prepared . The items shipped are compared to the items billed for proper quantity , price , and other sales order terms .
The accounting department supervisor compares and reconciles a copy of the daily sales invoice batch report to the daily accounts posting report indicating the individual accounts . The daily account posting report is prepared and sent by the accounts receivable department . Discrepancies are investigated and resolved to help assure that the customer subsidiary accounts are posted for the same total amount posted to the control account . At the end of each month , the total of the trial balance of customer account balances ( prepared by the accounts receivable department ) are reconciled to the general ledger control account by the accounting department supervisor .
Sales invoice batches are dated with the date of shipment , and totals of each batches are accumulated each month and recorded in the accounts receivable control and sales revenue accounts . The accounting department supervisor approves all monthly summary entries before posting to the general ledger .