The Conceptual System
OVERVIEW OF REVENUE CYCLE ACTIVITIES
In this section we examine the revenue cycle conceptually. Using data flow diagrams (DFDs) as a guide, we will trace the sequence of activities through three processes that constitute the revenue cycle for most retail, wholesale, and manufacturing organizations. These are sales order procedures, sales return proce- dures, and cash receipts procedures. Service companies such as hospitals, insurance companies, and banks would use different industry-specific methods.