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Order Entry Control Checklist

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Are you the one who assigned to do order entry? Consider this checklist to make sure order entry task has been completed properly. If you are a controller or an accounting manager and haven’t had order entry control on place, you may consider to include this checklist in your accounting manual book. Of course you are free to simply modify or alter at any part to get the most out of it.

The controls for a basic order entry system are centered on data accuracy verification, and are as follows:

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  1. Verify approved buyer for customer – The order entry staff will contact the customer and verify that the buyer who signed a received purchase order exceeding $ is approved to do so by the customer.
  2. Verify price against price book – The order entry staff will compare the prices listed on each customer purchase order to the official prices listed in the latest version of the company price book and contact the customer for resolution if any discrepancies are found.
  3. Contact customers regarding significant freight charges – The order entry staff will notify customers if anticipated freight charges are expected to exceed $ .
  4. Pre-number sales orders – The order entry staff will order all new sales order forms with sequential numbers that are in sequence from the last set of sales orders purchased.
  5. Review the sales order for accuracy – The order entry staff will compare the sales order to the originating customer purchase order to ensure that all information has been accurately transferred to the sales order.

 

Computerized Order Entry Controls

The controls for a computerized order entry system mostly involve data accuracy verification, and are as follows:

  1. Control access to the order entry system – Access to the order entry software will be password protected.
  2. Maintain a transaction log – The computer system automatically creates a keystroke log for every order entry transaction.
  3. Data entry validation checks – The computer system automatically performs data entry validation checks, including addresses, delivery dates, and part or product numbers that do not exist.
  4. Check on-hand inventory status – The computer system automatically compares the amount of unallocated on-hand inventory to the customer order, and notifies the customer if there is insufficient inventory to fulfill their order.
  5. Automatic price matching – The computer system automatically sets up product prices from the standard corporate price book.
  6. Supervisory override of special pricing – The computer system routes all nonstandard pricing to the order entry supervisor for manual override authorization.
  7. Set up complex billing terms – The order entry staff enters complex billing terms into the order entry database on the order placement date and routes the billing terms to the controller for review.

 

Electronic Order Entry Controls

The controls for electronic order entry involve having the computer conduct all aspects of the order entry process, and are as follows:

  1. Automated payment processing – The computer system will automatically process payments using the customer’s credit card, or notify the customer that there is insufficient credit remaining on the card.
  2. Automated credit review – The computer system will automatically match customer orders against a table listing available credit, and notify the credit staff if the credit level has been exceeded.
  3. Flag order as approved for shipment – The computer system will automatically flag customer orders as approved for shipment, once either a credit card payment has been processed or an automated credit review has been conducted.
  4. Communicate order status to customer – The computer system will automatically issue a confirmation message to the customer, stating that the order has been processed.




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