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Hello Gromit
i have questions regarding this sales cycle.
my understanding is (lets suppose hypothetically if everything goes right) then once the order is accepted then it goes to the dispatch department.
here are my questions for this stage of the process:
1) Will the dispatch note be produced then by the dispatch department or will this be produced by the person who takes the order?
2) what does the dispatch note contains? is it the same information as the original order?
3) Once the goods are delivered then customer signs on a delivery note however if as an auditor i am seeking proof of this then should i review a sample of delivery notes for a sample of orders to check customer signatures?
4) all together once the goods are delivered the accounts department then receives three documents:
a) The original order copy
b) the dispatch note
c) the signed delivery notethen the accounts department produces invoice.
is this correct? if not then at what stage does the invoice generates?
hello gromit
i have another question related to internal controls in addition to the above 4.
in past exam papers, the examiners have asked us to identify 4 or 5 deficiencies of controls in a given scenario. in some of them there are both purchases and sales deficiencies. so if the exam question says to identify 4 or 5 deficiencies then do we have to ensure to divide them equally between both sales and purchases or do we get full marks if lets say we identify 4 or 5 them but only for sales not for purchases vice versa?
please let me know
thanks
1 – Better if the person accepting the order does this as the despatch note can be authorisation to despatch the goods.
2 – Pretty much the same info. It will not contain value as that lets carriers know the value of the goods.
3 – Yes
4 – Yes, at that stage the invoice can be generated and sent. In some systems a multi-part despatch-note and invoice set is created in one operation. Top copy = invoice, bottom copies = despatch and delivery notes (with values of goods obscured). This ensures that every despatch has an invoice. The invoice would normally be sent after proof of delivery was received otherwise if invoices arrive before the goods, customers could be irritated.
5 – if you have to identify 4 or 5 deficiencies in a system, any will do.
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