Final answer:
The B/AR/CR process, which stands for Billing, Accounts Receivable, and Cash Receipts, completes the order-to-cash process. It involves generating invoices, tracking amounts due, and recording payments to manage sales and cash flow for a business.
Step-by-step explanation:
The B/AR/CR process refers to Billing, Accounts Receivable, and Cash Receipts. This process is a component of the broader order-to-cash process which encompasses all the steps from taking an order to receiving payment. The B/AR/CR process, therefore, completes the order-to-cash process.
The steps involved in this process begin with billing, where invoices are generated and sent to the customer. Next, during the accounts receivable phase, the company tracks the amounts due from the customer. Finally, the cash receipts part of the process occurs when payment is received and recorded.
This process is crucial for businesses to manage their sales and cash flow effectively. It is a part of the revenue cycle, tracking from when a sale is made until the money from the sale is secured in the company's bank account.