Question

What are the 5 subcycles Involved in the Sales/Collection Process?

Answer 1

The five subcycles involved in the sales/collection process are order placement, order fulfillment, invoice generation, payment collection, and accounts receivable processing.

Step-by-step explanation:

The sales/collection process involves several subcycles including:

1. Order placement: This is the first step in the process where a customer places an order for a product or service.
2. Order fulfillment: Once the order is received, the company fulfills it by delivering the product or providing the service to the customer.
3. Invoice generation: After the product or service is delivered, the company generates an invoice that specifies the amount to be paid by the customer.
4. Payment collection: The next step is to collect the payment from the customer, which can be done through various methods like cash, credit card, or electronic payment.
5. Accounts receivable processing: Finally, the company records the payment received and updates its accounts receivable records to keep track of outstanding balances.