ACC 3303 exam 3

revenue and expenditure cycle

CRM system

• system that contains customer-related data organized in a manner to facilitate customer service, sales, and retention

open-invoice method

• method of maintaining accounts receivable that gernates one payment for all sales made the previous months

credit memo

• document used to authorize reducing the balance in a customer account

credit limit

• maximum possible account balance for a customer

cycle billing

• process of dividing customer account master file into subsets and preparing invoices for one subset at a time

FEDI

• system that integrates EFT and EDI information

remittance advice

• turnaround document returned by customers with payments

lockbox

• post office box to which customers send payments

back order

• document used to establish responsibility for shipping goods via a third party

picking tickeet

• document that authorizes removal of merchandies from inventory

bill of lading

• document used to establish responsibility for shipping goods via a third party

factoring

• selling accounts receivable to a firm that specializes in collecting past due accounts

accounts receivable aging report

• document that shows the amounts of accounts receivable that are current and past due

EFT

• electronic transfer of funds

UPIC

• number other than the company’s real bank account number that customers can use to remit payments to the company’s bank account