This document provides an overview of the billing/accounts receivable/cash receipts (B/AR/CR) business process. It describes the key objectives of the process, horizontal and vertical views of how information flows through it, technologies used like digital imaging and customer self-service systems, and fraud prevention considerations. Diagrams are included to illustrate the context, data flows, entities and relationships involved in the B/AR/CR process.

1. Chapter 1 The Billing/Accounts Receivable/Cash Receipts (B/AR/CR) Process

5. Horizontal View B/AR/CR 1. Shipping department informs the accounts receivable department (billing section) of shipment.

6. Horizontal View B/AR/CR 2. Accounts receivable department (billing) sends invoice to customer.

7. Horizontal View B/AR/CR 3. Accounts receivable department (billing) informs general ledger process that invoice was sent to customer.

8. Horizontal View B/AR/CR 4. Customer, by defaulting on amount due, informs credit department of nonpayment.

9. Horizontal View B/AR/CR 5. Credit department recommends write-off of the receivable and informs accounts receivable department.

10. Horizontal View B/AR/CR 6. Credit department, by changing credit limits, informs sales order department to terminate credit sales to customer.

11. Horizontal View B/AR/CR 7. Accounts receivable department informs general ledger process of write-off.

12. Horizontal View B/AR/CR 8. Customer makes payment on account.

13. Horizontal View B/AR/CR 9. Cashier informs accounts receivable department (cash applications section) of payment.

14. Horizontal View B/AR/CR 10. Cashier informs general ledger process of payment.

21. B/AR/CR Context Diagram

22. B/AR/CR Level 0 DFD

23. B/AR/CR Process Diagram 1 Perform Billing

24. Sample SAP Invoice Data Screen

25. B/AR/CR Process Diagram 2 Manage Customer Accounts

26. B/AR/CR Process Diagram 3 Receive Payment

31. E-R Diagram (Partial) for B/AR/CR

33. Billing Function System Flowchart

34. Control Matrix for Billing Process

35. Cash Receipts System Flowchart

36. Cash Receipts Control Matrix