Chapter 10—The Order Entry/Sales (OE/S) ProcessTRUE/FALSE1. The order entry/sales (OE/S) process includes the first four steps in the order to cash process.ANS: T2. The first step in the order-cash process is sales order processing.ANS: F3. Customers expect convenient and timely access to information about their order from order initiation to product delivery.ANS: T4. The OE/S process helps support the decision needs of the accounting department.ANS: F5. One of the primary functions of the OE/S is to create information flows which support the repetitive work routines of the sales order, shipping, and credit departments.ANS: T6. The flow of information from OE/S to marketing managers is an example of horizontal information flows.ANS: F7. The flow of information from OE/S to the credit department is an example of vertical information flows.ANS: F8. For companies using enterprise systems CRM, systems often share the same underlying database and gather data about the firm’s customer population.ANS: T9. A sales order form is a business document that captures vital customer and order data and facilitates the credit-granting and shipment functions of the order entry/sales (OE/S) process.ANS: T10. A CRM system is designed to manage all the data related to customers, such as marketing, field service, and contact management data.ANS: T11. Sell-side systems use the Internet to automate and manage corporate vendors and purchases.ANS: F12. Buy-side systems are designed to allow a company to market sell deliver and service goods and services to customers throughout the world via the Internet.ANS: F13. The buzzword in CRM which means the grouping of customers into categories based on key characteristics is itemization.ANS: F14. The one input that triggers the OE/S process is the customer order.ANS: T15. When a source document provides authority for a business activity to occur, the source document is said to trigger the activity.ANS: T16. If a check of the customer master data shows that the goods requested on a customer order are not in stock, an exception routine called a back order is initiated.ANS: F17. A packing slip authorizes the warehouse to remove goods from the warehouse and send them to the shipping department.ANS: F18. A picking ticket is affixed to the inventory package sent to the customer and identifies the customer and the contents of the package.ANS: F19. Vendor acknowledgements are sent to vendors to notify them that their orders have been accepted and to inform them of the expected delivery date.ANS: F20. A bill of lading is the document representing the contract between the shipping company and the common carrier.ANS: T21. The OE/S process sends the sales order notification to the billing/accounts receivable/cash receipts process to notify that process of a pending shipment.ANS: T22. If a customer refuses to accept a back order, then the sales order is terminated and the sales order is accepted.ANS: F23. A customer acknowledgement is sent to the customer to notify him or her of the order’s acceptance and the expected shipping date.ANS: T24. A customer acknowledgement is sent to the billing department to notify them of a pending shipment.ANS: F25. In the E-R diagram for OE/S, SALES_ORDERS activates the STOCK_PICK.ANS: T26. In the E-R diagram for OE/S, STOCK_PICK triggers the SALES_INVOICES.ANS: F27. In the E-R diagram for OE/S, SHIPMENTS generate the SALES_INVOICES.ANS: T28. The marketing data is a repository of a variety of sales-oriented data, some of which correspond to the recording of sales events and some of which originates from activities that do not culminate in recorded sales, such as customer inquiries and other presales activities.ANS: T29. The inventory master data normally contains standing data about each customer, such as name, billing and ship-to addresses, and telephone number.ANS: F30. The customer master data is a data store that contains data identifying the particular characteristics of each customer.ANS: T31. The completed picking ticket file provides an audit trail of authorized inventory transfers made between the warehouse and the shipping department.ANS: T32. Records in the sales order master data are created upon the completion of a sales order and are updatedwhen the goods are shipped.ANS: T33. OCR devices that use light reflection to read differences in code patterns in order to identify a labeled item.ANS: F34. Bar code readers are used to recognize patterns of handwritten or printed characters.ANS: F35. Output devices that capture printed images or documents and convert them into electronic digital signals that can be stored in computer media are called scanners.ANS: F36. When a customer service representative enters data into the OE/S system, the first screen prompt is usually for the customer number.ANS: T37. A tickler file is one that is reviewed on a current and regular basis for the purpose of taking action to clear the items from that file.ANS: T38. Preformatted screens in the order entry/sales process is a control plan that involves the detailed comparison of the individual elements appearing on two source documents.ANS: F39. One-for-one checking in the order entry/sales process is a control plan that simplifies the data entry process, and may prevent the customer service representative from omitting data, to fill in certain fields, and reject incorrectly formatted fields to reduce input errors.ANS: F40. Online prompting in the order entry/sales process is a control plan that advises the customer service representative to check their data entries before moving on.ANS: T41. Confirm input acceptance in the order entry/sales process is a control plan that tells the customer service representative that the order has been accepted.ANS: T42. Customer credit check is a control plan that ensures that the organization protects its resources by dealing only with customers who have demonstrated an ability to satisfy their liabilities.ANS: TMULTIPLE CHOICE1. The order entry/sales (OE/S) process is part of the ____ process.a. order-to-cashb. purchase-to-payc. human resourcesd. general ledger/financial reportingANS: A2. The order entry/sales (OE/S) process handles the processing and shipment of a customer order while another process actually bills the customer. With such a configuration, you would not expect the OE/S system to interface directly with the ____.a. billing/accounts receivable/cash receipts processb. inventory processc. general