Draw the Revenue Cycle of the REA Diagram and the normalized table (resources, events, agents, composite primary) based on the case study.
Glow Ltd. is a wholesaler of organic skincare products. The products are kept in a centralized warehouse under the responsibility of the Warehouse Supervisor. The Warehouse Supervisor manages the entire team of warehouse staff in charge of receiving the inventory from suppliers and releasing them for delivery to customers.
All of Glow Ltd.'s customers are retailers who must meet the minimum order quantity. Customers must first register accounts with the company. Approved customers are allowed to purchase up to their approved credit limits. They are required to pay in full to Glow Ltd.'s designated bank account within 30 days of the date of invoicing.
Customers enter their orders online. The computer checks the available inventory balance. If there is not enough available stock, it displays a message 'Insufficient stock. Backorder?". If the customer clicks 'No', the computer cancels the order data. Next, the computer checks the customer's available credit. When all are in order, the computer creates a sales order in the sales order master and emails a copy to the customer.
At the start of the day, one of the Warehouse Staff prints all the picking tickets for the sales orders created the day before.
At 10 am, the Warehouse Staff begins to pick the items using the picking tickets. After he has finished picking all the items for a sales order, he scans the sales order number on the picking ticket to retrieve the order details. Next, he scans the barcode labels on the items. The computer does a 1-1 match. The Warehouse Staff checks to see if there is any discrepancy. He packs the items in a box, sticks the address label on the box and signs the picking ticket. Next, he prints the invoice and attaches it to the items to be shipped. When the computer prints the invoice, it advances the status of the sales order to 'Closed', records the invoice in the Accounts Receivable master and updates other relevant data stores at the same time. After printing the invoice, the Warehouse Staff files the processed picking ticket in the 'Picked' arch file in numerical sequence. The Warehouse Supervisor collects the boxes of items from the Warehouse staff. He checks the items with the invoice and then seals the boxes before releasing them to the external courier. The courier uses his tablet to scan and store the address labels during the handover from the Warehouse Supervisor.
The courier delivers the items to the customers by the next business day. He asks the customer to initial on the tablet to acknowledge delivery. At the end of each day, the courier prepares a report of all the deliveries made during the day and faxes it to the Warehouse Supervisor. The Warehouse Supervisor files the report in the Deliveries file by report date.
Customers make payment to Glow Ltd.'s designated bank account and provide the invoice number as the reference. Some customers may make a single payment for multiple invoices when there is a clustering of payment due dates during the period. Upon receipt of the cash, the customer's bank sends an email of the payment advice (sample below) to the Finance Officer. The Finance Officer details of the payment in the relevant data stores.
At the end of the month, the Finance Officer logs in to internet banking to obtain the e-bank statement. The Finance Officer prints the hardcopy bank statement and reconciles it with the company's records. He alerts the Finance Manager if he finds any unexplained discrepancies. He files the reconciled bank statement in the 'BS-2024' folder according to the statement date.
Last week, the General Manager happened to go to the warehouse and was surprised that some of the original packaging that were supposed to hold the products were empty. He questioned the Warehouse Supervisor. After much investigation, the Warehouse Supervisor admitted that he had made huge losses in gambling and cryptocurrency. So, he decided to steal the products.
