Notes

IC Issue #1: Invoices are delayed from creation. RATHER THAN creation the day the order is approved or even acknowledged, the invoice is never issued until the day the product is actually finished.
Problem: The controller can either delay or ignore the sale of the window. By ignoring the sale, your completely avoid taxation with the ability to either "pocket" cash or charge a customer a sale that goes undocumented, ultimately deferring from taxable income entirely. You can delay the sale by waiting until a period ends to recognize the revenue and tax into another period, making a company look like it is in better standing that it may actually be in.
Quality of earnings may become misleading to investors/creditors.

Solution Fix: Create an invoice the "day of" order acknowledgement through the sales manager in order to better estimate and track products within the warehouse.

IC Issue #2:
Problem:
Solution:

IC Issues #3:
Problem:
Solution:

Steps:
1. Order is received (either through email, fax, over-the-phone, or (rarely) in person), and is known to the full extent of the sales team. Questions are asked to figure out irregular customer orders or are typically "known" for customers.

Sales Department:
2. Order is put onto a sales order acknowledgement (Sales Team conducts this process, 1 person parts, 1 person windows, 1 person replacement, 1 does ALL)
3. Sales manager creates a Sales Packet (Picking ticket) goes to the accounting department -->

Accounting Department:
4.Controller makes sure that outstanding invoices are not present for a given customer. (Controller is the SUPERIOR approval of all orders).
5. Controller pushes forth information to the Sales representative, sending order approvals and notifies sales if a customer has outstanding balances.

Sales:
6. Sends acknowledgement form of order to customer (Customer and R.A. have one copy each).
7. Production is sent a picking ticket.

Production:
8. .... Window creation is started if parts are on-site. If not present, order remains "idle" until parts arrive.
9. Window is made
10. Window is then packed and moved to shipping.

Shipping:
11. Daily Checkoff list contains all orders by date, and customer. (Serial numbers are viewable at this point due to internal security reasons).
12. Windows are shipped the day they are ready to be moved (or one day later, depending on the 3rd party trucking company's pickup schedule times).
13. Truck line is instructed by shipping person what should be taken out for delivery.
14. An invoice is created and labeled as a transaction the "day of" transfer to trucking company even though the Controller does not receive the invoices until the next day (they are created "tomorrow" instead of "today").
^
This is a lot harder for smaller companies to do "instantaneously" since there is not enough staffing and/or technology to keep up with all the orders flowing "in" and "out".
15.