Final answer:
The control plan that contributes to effective operations in the billing function is independent billing authorization. This plan involves a separate check by an entity within the organization to verify that invoicing is accurate and reflects actual delivery of services or products before the issuance of the bill, making it crucial for operational effectiveness.
Step-by-step explanation:
The student is asking about control plans within the billing function of a company which is an aspect of business operations management. The control plans listed are methods to ensure accuracy and authorization in the billing process.
Specifically, these plans aim to increase operational effectiveness and reduce errors. While all of the mentioned plans contribute to controls in billing, the one that contributes to effective operations the most is independent billing authorization.
This control plan requires that a person or department separate from the sales and shipping department confirms that the goods or services were delivered as per the contract before issuing an invoice, ensuring that billing is accurate and authorized. It acts as a final check to prevent errors and fraud, making it a critical step in the billing process.
To further illustrate, let's break down each option:
- Edit the shipping notification for accuracy ensures information on the shipping notice matches the actual shipped items.
- Independent billing authorization requires billing authorization from a separate entity within the organization.
- Compare input shipping notices to sales order master data verifies that shipping notices align with the original sales orders.
- Review shipped not billed sales orders (tickler file) tracks items that have been shipped but not yet billed.
Each of these controls plays an important role, but the independent billing authorization offers a crucial checkpoint that can significantly mitigate risks, thereby ensuring that operations are carried out effectively and billing is in line with the services or products delivered.