Introduction:
This report is prepared for addressing the principal documentation, processes and records needed for the new sales and sales returns system. Principle risks will also be identified in the report. An effective internal control will be useful on addressing those risks, which will be helpful on making preventive and corrective measures. Works of auditor regarding to the new system will also be mentioned.
This report is for internal use only, no circulation between third parties is allowed.

Documentation, processes and records for the new sales and sales return system:

When the Sales department has received a sales order from customers, they have to fill in a form and file it properly. The department will access to customer records for credit checking. If credit is fine, there will be one copy be sent for being a supporting document in sales report, another copy will be sent for making an invoice to accounts receivables department. The sales amount will be recorded in the general entries of accounts receivables. All these records will be reported to management monthly.

When customer makes the payment, it will come with a remittance advice, the advice has to make two copies, one goes to accounts receivables department for recording, and paying into bank. Another one will be going into customer records, for updating the customer’s credit record, and estimating the chance that customer will fail to make the payment. At this time, sales authorisation will be made to the inventory department.

RFID inventory control system will also be introduced. Before the dispatch of goods, each box will be aligned with the RFID system. Picking list will be used to pull items from inventory. When the stock is ready for shipping, a dispatch note will be sent with the stock. Another copy of dispatch note will also be sent to accounts receivables department to