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CHAPTER 4

SALES/COLLECTION

BUSINESS PROCESS

INTRODUCTION

In the previous chapter, we looked at a very simple revenue cycle for Cherokee Art and
Antique Store. In this chapter, we will look at a more complex revenue cycle. In general,
a business process is almost synonymous with a transaction cycle. The Sales/Collection
business process is often referred to as the revenue transaction cycle. The
Sales/Collection process includes the marketing events (i.e., sales calls, advertising cam-
paigns, etc.), the mutual commitment events (i.e., customer orders), the economic decre-
ment events (i.e., the sale and shipment), and the economic increment event (i.e., the cash
receipt). We might also see an economic decrement reversal event (i.e., sales returns and
allowances).
To model the Sales/Collection business process in a database, it will be useful to cre-
ate more complex forms and we will begin to explore the creation of queries. After com-
pleting this chapter, you should be able to use Microsoft Access to:

• Create forms with subforms from tables for data entry.
• Create combo boxes in a form.
• Create queries involving single tables.
• Create queries involving simple calculations.
• Create queries involving more than one table.
• Create queries involving simple criteria.
• Create a simple report based on a query.

SALES/COLLECTION PROCESS OVERVIEW

Basic Concepts and Definitions

As you have learned in prior chapters, the revenue cycle interfaces with the conversion
cycle, the financing cycle, and the financial reporting system. The financial reporting
system then interfaces with the expenditure cycle and the payroll cycle.
By extending this concept to the framework of business processes, we can see that
goods and services are made available to a company's Sales/Collection process as a result
of the Conversion, AcquisitionlPayment, and Payroll processes. The Sales/Collection
process turns those goods and services into cash, which is made available to the Financing