1 / 24

Revenue Accounting Success Story

Revenue Accounting Success Story. AIRLINE OVERVIEW. Please visit our Web Site: Goss & Associates, LLC. Started operations in the 1960’s Based in the Pacific Served 25 Cities 1,500+ Employees. Fleet. Operated 29 Aircraft Aircraft mix included B747, DC10, B757, B727 & B737.

enoch
Télécharger la présentation

Revenue Accounting Success Story

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Revenue Accounting Success Story

  2. AIRLINE OVERVIEW Please visit our Web Site:Goss & Associates, LLC

  3. Started operations in the 1960’s • Based in the Pacific • Served 25 Cities • 1,500+ Employees

  4. Fleet • Operated 29 Aircraft • Aircraft mix included B747, DC10, B757, B727 & B737

  5. AIRLINE’SREVENUE ACCOUNTING OVERVIEW Please visit our Web Site:Goss & Associates, LLC

  6. Annually the airline processed an average of - 2.5 million flight coupons- 1.5 million audit coupon • Five Computer Reservation Systems (CRS) processed 95% of the airline’s sales • Flight coupons were used an average of 7 to 12 days after sale

  7. Airline used a sales based accounting process • Airline had unprocessed sales backlog -12 plus months • At month end, the airline experienced unmatched flight coupons ranging between 90% and 95% • Airline’s revenue accounting balance sheet accounts were not reconciled

  8. 80% of airline’s revenue was net of both first and second level commission • First level is defined as traditional commission • Second level is defined as volume incentive • Airline’s sales based process provided coupon level revenue information

  9. PROBLEM DEFINITION Please visit our Web Site:Goss & Associates, LLC

  10. Conflicting internal opinions regarding:- Staff size - Automation- Departmental management competency • Needed independent expertise to:- Evaluate current situation- Provide facts- Recommend actions

  11. Given their ticket volume, more process staff was required to operate the current system: • Maintain current volumes • Audit sales to recover under collected sales • Audit to recover over paid commission • Reconcile balance sheet accounts

  12. Long term, the airline needed to invest in automation to: • Reduce staff and human errors • Recover under collected sales through fare audits • Recover over paid commission through audits • Reconcile balance sheet accounts

  13. In addition, investment in automation was needed to: • Improve commission tracking • Simplify payment process • Take revenue data to segment level

  14. ACTION PLAN Please visit our Web Site:Goss & Associates, LLC

  15. Eliminate BACKLOGS: • Sales • Account Reconciliation • Invest in automation • Reengineer revenue accounting process

  16. ELIMINATE BACKLOGSGetting Revenue Accounting Current

  17. Outsourcing was used to: • Maintain current revenue accounting process • Eliminate sales processing BACKLOGS • Data enter unprocessed sales reports • Capture unprocessed BSP long sale files • Account reconciliation using technical revenue accounting experience

  18. AUTOMATEInvesting in Revenue Accounting

  19. Found a Revenue Information System that used all 5 Computer Reservation Systems: • Audits fares and commissions • Reduces staff requirements • Feeds revenue data to other systems • Receives data from other system providers like ATPCO and other airlines

  20. PROCESS REENGINERINGReinventing Revenue Accounting

  21. The reengineered revenue information process provided: • Current technical revenue accounting skills • Revenue Analysis • Efficient processing of documents and data • Reduced process staff and increased analytical staff

  22. Revenue Accounting’s Future Please visit our Web Site:Goss & Associates, LLC

  23. Commit to constant vigil • Commitment to improve process automation • Insure revenue accounting continues to be: • Cost efficient • A complete information provider • Never backlogged

  24. Revenue Accounting Success Story Please visit our Web Site:Goss & Associates, LLC

More Related