9.2 - Perform revenue accounting
PCF ID: 10729 | Elements: 36 | Metrics Available: Y | Benchmarkable: 16
Definition
Comparing revenue targets to reality. Review all transactions and entries passed in final accounts in a year in order to examine profits.
Overview
This process group covers perform revenue accounting within the broader context of Manage Financial Resources.
Process Hierarchy
Processes
| ID | Process | PCF ID | Sub-elements | Metrics |
|---|---|---|---|---|
| 9.2.1 | Process customer credit | 10742 | 7 | Y |
| 9.2.2 | Invoice customer | 10743 | 5 | Y |
| 9.2.3 | Process accounts receivable (AR) | 10744 | 5 | Y |
| 9.2.4 | Manage and process collections | 10745 | 7 | Y |
| 9.2.5 | Manage and process adjustments/deductions | 10746 | 6 | Y |
9.2.1 - Process customer credit
PCF ID: 10742
Definition: Evaluating and processing requests for advances. Evaluate credit requests by customers requiring loans to buy products/services.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 9.2.1.1 | Establish credit policies | 10789 | 0 | Y |
| 9.2.1.2 | Analyze/Approve new account applications | 10790 | 0 | Y |
| 9.2.1.3 | Analyze credit scoring history | 14187 | 0 | N |
| 9.2.1.4 | Forecast credit scoring requirement | 14188 | 0 | N |
| 9.2.1.5 | Review existing accounts | 10791 | 0 | Y |
| 9.2.1.6 | Produce credit/collection reports | 10792 | 0 | Y |
| 9.2.1.7 | Reinstate or suspend accounts based on credit policies | 10793 | 0 | N |
9.2.1.1 - Establish credit policies
Definition: Creating guidelines for providing advances. Set up credit standards, credit terms, and collection policies.
9.2.1.2 - Analyze/Approve new account applications
Definition: Checking and accepting new requests based on eligibility criteria. Analyze the status of applicants and requirements to be met for a new account.
9.2.1.3 - Analyze credit scoring history
Definition: Reviewing past credit scores to determine the if a line of credit will be extended to potential customers. This could also include extending additional credit to existing accounts.
9.2.1.4 - Forecast credit scoring requirement
Definition: Planning credit score requirements based on established credit policies.
9.2.1.5 - Review existing accounts
Definition: Evaluating existing account holders and their past performance. Regularly review existing accounts to get the required information about the status at present.
9.2.1.6 - Produce credit/collection reports
Definition: Preparing account payable reports about payments to be made according to accounting rules and principles, and providing the reports to management.
9.2.1.7 - Reinstate or suspend accounts based on credit policies
Definition: Closing or restarting accounts according to changes made in credit policies.
9.2.2 - Invoice customer
PCF ID: 10743
Definition: Preparing detailed reports of customer purchases. Prepare a commercial document between the seller and customer with details about transaction. Detail the quantity purchased, price of products/services, date, parties involved, unique invoice number, and tax information.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 9.2.2.1 | Maintain customer/product master files | 10794 | 0 | Y |
| 9.2.2.2 | Generate customer billing data | 10795 | 0 | Y |
| 9.2.2.3 | Transmit billing data to customers | 10796 | 0 | Y |
| 9.2.2.4 | Post receivable entries | 10797 | 0 | Y |
| 9.2.2.5 | Resolve customer billing inquiries | 10798 | 0 | Y |
9.2.2.1 - Maintain customer/product master files
Definition: Creating and updating a record of customers and the products being purchased by them in a database. This process element requires the organization to maintain a database of customers and their purchases. Such a master-file can be used to ensure customer touch point, enhance customer satisfaction, explore cross selling opportunities, and identify future trends. This database will include several particulars about the personal details of the organization's customers and a tracking of the products being sold.
9.2.2.2 - Generate customer billing data
Definition: Preparing detailed reports about products purchased by customers. Record and generate a detail account of transactions made by customers fat a particular time and location. Include all details about products such as price, quantity, and name.
9.2.2.3 - Transmit billing data to customers
Definition: Providing information to customers about purchases made by them. Communicate the details of purchases. Provide customers with a copy of details for their reference.
9.2.2.4 - Post receivable entries
Definition: Registering transactions and their scheduled payments.
9.2.2.5 - Resolve customer billing inquiries
Definition: Checking and solving billing queries raised by customers.
9.2.3 - Process accounts receivable (AR)
PCF ID: 10744
Definition: Processing payments due from customers. This includes all processing of funds received, whether by check or electronically. This does not include the generation of invoices.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 9.2.3.1 | Establish AR policies | 10799 | 0 | N |
| 9.2.3.2 | Receive/Deposit customer payments | 10800 | 0 | N |
| 9.2.3.3 | Apply cash remittances | 10801 | 0 | N |
| 9.2.3.4 | Prepare AR reports | 10802 | 0 | N |
| 9.2.3.5 | Post AR activity to the general ledger | 10803 | 0 | N |
9.2.3.1 - Establish AR policies
Definition: Creating rules and regulations to be followed in case of credit sales to customers. Create rules and procedures to follow at the time of sale (e.g., the allowable number of installments).
9.2.3.2 - Receive/Deposit customer payments
Definition: Collecting cash from customers. Deposit it into bank account. Make entries into the books of accounts.
9.2.3.3 - Apply cash remittances
Definition: Checking and moving funds between countries for business activities, typically through authorized remittance agents.
9.2.3.4 - Prepare AR reports
Definition: Preparing reports that detail balances due or what to collect from customers at a certain point in time.
9.2.3.5 - Post AR activity to the general ledger
Definition: Preparing the general ledger for account receivables from journals. Place all journal entries related to accounts receivables in the general ledger accounts of a business.
9.2.4 - Manage and process collections
PCF ID: 10745
Definition: Posting entries to respective accounts, and preparing accounts for receivables. Manage the cash collected by the business from its debtors. Record it in the books of accounts to provide clear information about the availability of the cash.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 9.2.4.1 | Establish policies for delinquent accounts | 10804 | 0 | N |
| 9.2.4.2 | Analyze delinquent account balances | 10805 | 0 | N |
| 9.2.4.3 | Correspond/Negotiate with delinquent accounts | 10806 | 0 | N |
| 9.2.4.4 | Discuss account resolution with internal parties | 10807 | 0 | N |
| 9.2.4.5 | Process adjustments/write off balances | 10808 | 0 | Y |
| 9.2.4.6 | Perform recovery workout | 14007 | 0 | N |
| 9.2.4.7 | Manage default accounts | 14008 | 0 | N |
9.2.4.1 - Establish policies for delinquent accounts
Definition: Creating a process to follow in case of a failed payment by account holders. Create rules and regulations for the account holder who has failed to make at least the minimum monthly payment by the due date.
9.2.4.2 - Analyze delinquent account balances
Definition: Examining balance statements of accountholders who failed to make required payments. Study or review the account details of customers' past payments when preparing negotiations policies.
9.2.4.3 - Correspond/Negotiate with delinquent accounts
Definition: Determine ways for customers in default to repay debts (e.g., allowing more time or discounts).
9.2.4.4 - Discuss account resolution with internal parties
Definition: Determining rules for handling accounts. Discuss and plan with internal parties (department heads, managers, and senior management) about rules to follow in coming months.
9.2.4.5 - Process adjustments/write off balances
Definition: Maintaining reserves for write-offs and adjustments. Adjust or write off certain expenses and losses.
9.2.4.6 - Perform recovery workout
Definition: Renegotiating the terms of a loan agreement in order to recoup money from a default account.
9.2.4.7 - Manage default accounts
Definition: Managing accounts that have not met the requirements agreed upon to pay off outstanding debts.
9.2.5 - Manage and process adjustments/deductions
PCF ID: 10746
Definition: Creating and providing funds for necessary adjustments and deductions, including all expenses that were required for the business at certain point in time.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 9.2.5.1 | Establish policies/procedures for adjustments | 10809 | 0 | N |
| 9.2.5.2 | Analyze adjustments | 10810 | 0 | N |
| 9.2.5.3 | Correspond/Negotiate with customer | 10811 | 0 | N |
| 9.2.5.4 | Discuss resolution with internal parties | 10812 | 0 | N |
| 9.2.5.5 | Prepare chargeback invoices | 10813 | 0 | N |
| 9.2.5.6 | Process related entries | 10814 | 0 | N |
9.2.5.1 - Establish policies/procedures for adjustments
Definition: Creating guidelines to follow in case of adjustments to business processes.
9.2.5.2 - Analyze adjustments
Definition: Checking changes made in accounts during the year. Examine the alterations made in final accounts to rectify errors/omissions.
9.2.5.3 - Correspond/Negotiate with customer
Definition: Providing suitable offers to customers. Present different offers (e.g., discounts) available for customers or buyers.
9.2.5.4 - Discuss resolution with internal parties
Definition: Discussing and planning with internal parties (department heads, managers, and senior management) about rules to follow in coming months.
9.2.5.5 - Prepare chargeback invoices
Definition: Creating a mechanism for consumer protection in case of a higher price charged. When a supplier sells a product at a higher price to the distributor than the price they have set with the end user, submit a chargeback to the supplier to recover the money lost in the transaction.
9.2.5.6 - Process related entries
Definition: Recording business transactions as they occur in order to provide a balanced accounts for financial reporting.
Change Summary (v7.2.1 vs v6.1.1)
Changes indicated by:
+XXXXX- New element added-XXXXX- Element removedcXXXXX- Element changedNEW- Newly introduced
Complete Element List with Definitions
All 36 elements
| ID | Name | Definition |
|---|---|---|
| 9.2 | Perform revenue accounting | Comparing revenue targets to reality. Review all transactions and entries passed in final accounts i... |
| 9.2.1 | Process customer credit | Evaluating and processing requests for advances. Evaluate credit requests by customers requiring loa... |
| 9.2.1.1 | Establish credit policies | Creating guidelines for providing advances. Set up credit standards, credit terms, and collection po... |
| 9.2.1.2 | Analyze/Approve new account applications | Checking and accepting new requests based on eligibility criteria. Analyze the status of applicants ... |
| 9.2.1.3 | Analyze credit scoring history | Reviewing past credit scores to determine the if a line of credit will be extended to potential cust... |
| 9.2.1.4 | Forecast credit scoring requirement | Planning credit score requirements based on established credit policies. |
| 9.2.1.5 | Review existing accounts | Evaluating existing account holders and their past performance. Regularly review existing accounts t... |
| 9.2.1.6 | Produce credit/collection reports | Preparing account payable reports about payments to be made according to accounting rules and princi... |
| 9.2.1.7 | Reinstate or suspend accounts based on c... | Closing or restarting accounts according to changes made in credit policies. |
| 9.2.2 | Invoice customer | Preparing detailed reports of customer purchases. Prepare a commercial document between the seller a... |
| 9.2.2.1 | Maintain customer/product master files | Creating and updating a record of customers and the products being purchased by them in a database. ... |
| 9.2.2.2 | Generate customer billing data | Preparing detailed reports about products purchased by customers. Record and generate a detail accou... |
| 9.2.2.3 | Transmit billing data to customers | Providing information to customers about purchases made by them. Communicate the details of purchase... |
| 9.2.2.4 | Post receivable entries | Registering transactions and their scheduled payments. |
| 9.2.2.5 | Resolve customer billing inquiries | Checking and solving billing queries raised by customers. |
| 9.2.3 | Process accounts receivable (AR) | Processing payments due from customers. This includes all processing of funds received, whether by c... |
| 9.2.3.1 | Establish AR policies | Creating rules and regulations to be followed in case of credit sales to customers. Create rules and... |
| 9.2.3.2 | Receive/Deposit customer payments | Collecting cash from customers. Deposit it into bank account. Make entries into the books of account... |
| 9.2.3.3 | Apply cash remittances | Checking and moving funds between countries for business activities, typically through authorized re... |
| 9.2.3.4 | Prepare AR reports | Preparing reports that detail balances due or what to collect from customers at a certain point in t... |
| 9.2.3.5 | Post AR activity to the general ledger | Preparing the general ledger for account receivables from journals. Place all journal entries relate... |
| 9.2.4 | Manage and process collections | Posting entries to respective accounts, and preparing accounts for receivables. Manage the cash coll... |
| 9.2.4.1 | Establish policies for delinquent accoun... | Creating a process to follow in case of a failed payment by account holders. Create rules and regula... |
| 9.2.4.2 | Analyze delinquent account balances | Examining balance statements of accountholders who failed to make required payments. Study or review... |
| 9.2.4.3 | Correspond/Negotiate with delinquent acc... | Determine ways for customers in default to repay debts (e.g., allowing more time or discounts). |
| 9.2.4.4 | Discuss account resolution with internal... | Determining rules for handling accounts. Discuss and plan with internal parties (department heads, m... |
| 9.2.4.5 | Process adjustments/write off balances | Maintaining reserves for write-offs and adjustments. Adjust or write off certain expenses and losses... |
| 9.2.4.6 | Perform recovery workout | Renegotiating the terms of a loan agreement in order to recoup money from a default account. |
| 9.2.4.7 | Manage default accounts | Managing accounts that have not met the requirements agreed upon to pay off outstanding debts. |
| 9.2.5 | Manage and process adjustments/deduction... | Creating and providing funds for necessary adjustments and deductions, including all expenses that w... |
| 9.2.5.1 | Establish policies/procedures for adjust... | Creating guidelines to follow in case of adjustments to business processes. |
| 9.2.5.2 | Analyze adjustments | Checking changes made in accounts during the year. Examine the alterations made in final accounts to... |
| 9.2.5.3 | Correspond/Negotiate with customer | Providing suitable offers to customers. Present different offers (e.g., discounts) available for cus... |
| 9.2.5.4 | Discuss resolution with internal parties | Discussing and planning with internal parties (department heads, managers, and senior management) ab... |
| 9.2.5.5 | Prepare chargeback invoices | Creating a mechanism for consumer protection in case of a higher price charged. When a supplier sell... |
| 9.2.5.6 | Process related entries | Recording business transactions as they occur in order to provide a balanced accounts for financial ... |
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