In the Revenue and Collections Cycle, what is the first step after a customer orders goods?

In the Revenue and Collections Cycle, the sequence of steps that follow a customer's order begins with the company processing that order. After a customer places an order for goods, the next logical step is for the company to prepare and send the ordered goods to the customer, along with a bill for payment.

This step is crucial because it reflects the core function of the cycle, which revolves around fulfilling customer requests and ensuring that the transaction is recorded appropriately. The shipment of goods and the billing process happen almost simultaneously, as it helps establish a record of the sale and formally obligates the customer to make a payment. This systematic approach helps maintain an efficient collection process and ensures that both the company and customer have clear expectations about the transaction.

Following this step, the company would then update its inventory records, initiate the collection process, and eventually record the payment, but all these actions follow directly from the shipping and billing step. Therefore, sending goods and bills is the correct subsequent action after the customer has placed an order.