Accounting Information Systems Chapter 4 Definitions

Accounts Receivable (AR) Subsidiary Ledger

A detailed ledger containing individual customer accounts that support the general ledger control account for accounts receivable.

Approved Credit Memo

A document that authorizes the return of goods or a credit to a customer’s account.

Approved Sales Order

An order that has been reviewed and authorized for fulfillment.

Automation

The use of technology to perform tasks without human intervention.

Back-Order

An order for goods that cannot be filled at the current time due to lack of available stock.

Back-Order File

A file containing orders that are waiting to be fulfilled due to stock shortages.

Batch Control Totals

Totals used to verify the accuracy and completeness of batch processing.

Bill of Lading

A document issued by a carrier acknowledging the receipt of goods for shipment.

Cash Receipts Journal

A special journal used to record all cash receipts.

Closed Sales Order File

A file containing orders that have been completed and closed.

Controller

The chief accounting officer responsible for financial reporting and management.

Credit Authorization

The process of approving a customer's creditworthiness.

Credit Memo

A document issued to a customer to reduce the amount they owe, usually due to returned goods or a billing error.

Credit Records File

A file containing information about customer credit history and transactions.

Customer Open Order File

A file containing orders that have been placed by customers but not yet fulfilled.

Customer Order

An order placed by a customer requesting goods or services.

Cycle Billing

A method of billing customers on a rotating schedule throughout the month.

Deposit Slip

A document used to record deposits made to a bank account.

Electronic Data Interchange (EDI)

The electronic exchange of business documents between organizations.

Inventory Subsidiary Ledger

A ledger containing individual inventory item records that support the general ledger control account for inventory.

Journal Voucher

A document used to record a transaction in the general ledger.

Journal Voucher File

A file containing all journal vouchers used to record transactions.

Ledger Copy

A copy of a ledger account used for reference or backup.

Open Sales Order File

A file containing sales orders that are still open and awaiting fulfillment.

Packing Slip

A document included with shipped goods that lists the items shipped.

Point-of-Sale (POS) Systems

Systems used to record sales transactions at the point of sale.

Prenumbered Documents

Documents that are sequentially numbered to ensure completeness and accuracy.

Reengineering

The process of redesigning business processes to improve efficiency and effectiveness.

Remittance Advice

A document sent by a customer to a supplier detailing the payment of an invoice.

Remittance List

A list of payments received from customers.

Return Slip

A document authorizing the return of goods to the supplier.

Sales Invoice

A document issued to a customer detailing the sale and amount owed.

Sales Journal

A special journal used to record all sales transactions.

Sales Journal Voucher

A voucher used to record sales transactions in the general ledger.

Sales Order

A document specifying the details of a customer's order for goods or services.

Sales Order (Credit Copy)

A copy of the sales order used for credit approval purposes.

Sales Order (Invoice Copy)

A copy of the sales order used for invoicing the customer.

Shipping Notice

A document notifying that goods have been shipped.

Shipping Log

A log that records all shipping activities.

S.O. Pending File

A file containing sales orders that are pending fulfillment.

Stock Records

Records that detail the quantity and value of inventory items.

Stock Release

A document authorizing the release of inventory items for shipment.

Universal Product Code (UPC)

A barcode used to identify products uniquely.

Verified Stock Release

A stock release that has been checked for accuracy and approved.