Table of Contents

Chapter 1 - Overview of Accounting Procedures. 1

The Nature of a Procedure. 1

The Need for Procedures. 1

The Number of Procedures to Develop. 2

Obtaining Buy-In. 3

The Mechanics of Procedure Production. 4

Procedure Production Steps. 4

Formatting Steps. 5

Procedure Design Tips. 6

Dissemination of Procedures. 7

Retrieval of Procedures. 8

Procedural Updates. 9

Enforcement of Procedures. 9

Carrot Activities. 9

Stick Activities. 10

Deviations from Procedures. 10

The Procedure Writer. 11

The Need for Policies. 11

Chapter 2 - Order Entry Procedures. 14

Forms: Sales Order Form.. 14

Forms: Return Merchandise Authorization. 15

The Order Entry Procedure (Manual System) 16

The Order Entry Procedure (Integrated System) 19

The Granting of Return Merchandise Authorizations. 21

Chapter 3 - Credit Procedures. 25

Forms: Sales Order Form.. 25

Forms: Credit Application. 26

The Credit Examination Procedure (Manual System) 27

The Credit Examination Procedure (Integrated System) 32

Chapter 4 - Shipping Procedures. 38

Forms: Sales Order Form.. 38

Forms: Pick List 39

Forms: Packing Slip. 40

The Shipping Procedure (Manual System) 41

The Shipping Procedure (Integrated System) 45

The Drop Shipping Procedure. 48

Chapter 5 - Customer Billing Procedures. 50

Forms: The Invoice. 50

Forms: The Credit Memo. 52

Forms: The Statement of Account 55

The Billing Procedure. 56

Additional Manual Billing Steps. 60

Variations on the Billing Procedure. 62

The Credit Memo Procedure. 65

The Statement of Account Procedure. 67

Cash Sales. 69

Chapter 6 - Collection Procedures. 72

Forms: The Credit Memo Approval Form.. 72

The Collection Procedure. 73

The Credit Memo Request Procedure. 77

The Allowance for Doubtful Accounts Calculation Procedure. 77

Chapter 7 - Cash Receipts Procedures. 81

Forms: Sales Receipt 81

Forms: Mailroom Check Receipts List 82

The Cash Receipts Processing Procedure. 83

The Check Receipts Processing Procedure. 85

The Process Credit Card Receipts Procedure. 89

The Process Lockbox Receipts Procedure. 92

The Remote Deposit Capture Procedure. 92

Chapter 8 - Purchasing Procedures. 97

Forms: Purchase Requisition. 97

Forms: Purchase Order. 98

Forms: Blanket Purchase Order Release. 99

The Purchase Requisition Procedure. 100

The Purchasing Procedure. 102

Variations on the Purchasing Procedure. 106

The Bidding Procedure. 107

Chapter 9 - Procurement Card Procedures. 111

Forms: Reconciliation Checklist 111

Forms: Missing Receipts Form.. 112

Forms: Disputed Expenditure Form.. 113

Forms: Lost Card Notification Form.. 114

The Card Reconciliation Procedure. 115

The Lost Card Procedure. 117

Chapter 10 - Expense Report Procedures. 121

Forms: Expense Report Form.. 121

The Expense Report Submission Procedure (Manual System) 122

The On-Line Expense Report Submission Procedure. 126

The Expense Report Review Procedure. 127

Chapter 11 - Petty Cash Procedures. 132

Forms: Petty Cash Transfer Form.. 132

Forms: Petty Cash Voucher. 133

Forms: Petty Cash Book. 133

Forms: Petty Cash Reconciliation. 134

The Petty Cash Funding Procedure. 135

The Petty Cash Disbursement Procedure. 137

The Petty Cash Review Procedure. 139

Chapter 12 - Receiving Procedures. 143

Forms: Receiving Report 143

Forms: Return Merchandise Authorization. 144

Forms: RMA Receipt Notification. 145

The Receiving Procedure (Manual System) 146

The Receiving Procedure (Computerized System) 150

The Receiving Returned Goods Procedure. 153

Chapter 13 - Accounts Payable Procedures. 157

Forms: Check Request Form.. 157

Forms: Adjustment Letter. 158

The Supplier Invoice Processing Procedure (Manual System) 159

The Supplier Invoice Processing Procedure (Integrated System) 162

Accounts Payable Credits Processing Procedure. 164

The Evaluated Receipts Processing Procedure. 166

The Check Payment Issuance Procedure. 168

Payment Alternatives. 172

The Void Checks Procedure. 172

Chapter 14 - Inventory Procedures. 176

Forms: Inventory Count Tag. 176

The Physical Inventory Count Procedure. 177

The Cycle Counting Procedure. 180

The Obsolete Inventory Investigation Procedure. 182

The Inventory Valuation Procedure. 185

Chapter 15 - Payroll Procedures. 191

Forms: For the New Hire. 191

Forms: The Timecard. 195

Forms: The Paycheck and Remittance Advice. 198

The Adding an Employee Procedure. 199

The Timecard Data Collection Procedure. 201

The Commission Calculation Procedure. 205

The Payroll Processing Procedure. 206

The Employee Payment Procedure. 211

Chapter 16 - Fixed Asset Procedures. 215

Forms: Capital Request Form.. 215

Forms: Asset Disposal Form.. 216

The Capital Request Form Completion Procedure. 217

The Capital Request Form Analysis Procedure. 220

The Post Installation Review Procedure. 223

The Asset Recognition Procedure. 225

The Interest Capitalization Procedure. 227

The Fixed Asset Record Creation Procedure. 229

The Asset Revaluation Procedure. 232

The Asset Exchange Procedure. 235

The Depreciation Procedure. 236

The Impairment Analysis Procedure. 238

The Asset Retirement Obligation Procedure. 240

The Intangible Asset Analysis Procedure. 242

The Asset Tracking Procedure. 245

The Asset Disposal Procedure. 248

Chapter 17 - Treasury Procedures. 252

Forms: Cash Forecast 252

Forms: Investment Quote Sheet 253

Forms: Drawdown/Repayment Form.. 254

The Cash Forecasting Procedure. 255

The Funds Investment Procedure. 257

The Cash Concentration Procedure. 261

The Line of Credit Borrowing Procedure. 264

The Foreign Exchange Hedging Procedure. 266

Chapter 18 – Closing the Books Procedures. 272

Closing the Books – Private Company. 272

Closing the Books – Public Company. 278

Bank Reconciliation Procedure. 280

Answers to Chapter Questions. 283

Glossary. 301

Index. 306

 

Final Examination.....................................................................................................................................................312