An economic event that affects the assets and equities of the firm, is reflected in its accounts and is measured in monetary terms

These transaction cycles process most of the firm’s economic activity

the business activities begin with the acquisition of materials, property and labor in exchange for cash.

When the obligation created in the purchases system becomes due and authorizes the payment, disburses the funds to the vendor, and records the transaction by reducing the cash and accounts payable account

•This system recognizes the need to acquire physical inventory (such as raw materials) and places an order with the vendor.

a special case purchases and cash disbursement system.

collects labor usage data for each employee, computes the payroll, and disburses paychecks to the employees

•It provide a system for tracking for organizations’ physical assets

it involves planning, scheduling, and control of the physical product through the manufacturing process. This includes determining raw materials requirements, authorizing the work to be performed, released of raw materials into production and directing the movement of the work in process through its various stage in manufacturing.

it monitors the flow of cost information including labor, overhead and raw materials related to production.

This cycle comprises two major subsystem: the production system and the cost accounting system.

This cycle includes processing cash sales, credit sales, and the receipt of cash following a credit sale.Also have a physical and a financial component, which are processed separately.

the majority of business sales are made on credit and involve tasks such as preparing sales order, granting credit, shipping products (or rendering of a service) to the customer, billing customers, and recording the transaction in the accounts (accounts receivable, inventory, expenses and sales).

collecting cash, depositing cash in the bank, and recording these events in the accounts (accounts receivable and cash).

This include the tasks involved in receiving and processing a customer order, filling the order and shipping products to the customer, billing the customer at the proper time and correctly accounting for the transaction.

a form of a turnaround document. Its important is most apparent in firms that process large volumes of cash receipts daily.

contains no quantity or price information about the products being received

special journal used for recording completed sales transaction

a formal contract between the seller and the shipping company (carrier) to transport the goods to the customer.

is an authorization control and should be performed as a function separate from the sales activity.

The receive order activity forwards the stock release document

It reduces stock Inventory And Increase When we Purchase

Automatically update all Transactions and Records