Answered Essay: a) What a revenue cycle is, b) What are the components of a revenue cycle, and

a) What a revenue cycle is,

b) What are the components of a revenue cycle, and

c) How do the components within the revenue cycle interact.

Expert Answer

Revenue cycle:

The conversion of sales into revenue is called as revenue cycle. When the customer purchase on the sales the company revenue can be determined.

Components of a Revenue Cycle:

1. The key component is the payers should have agreement with the contract to payment process as that is important for revenue cycle.

2. Documentation is a component of revenue cycle as that act as a proof.

3. Collection as where it determines on the charges, sales etc for revenue cycle.

The components within the revenue cycle interact in the following ways:

1. The process can interact in the revenue cycle as where the aggrements, documents, collections etc plays a major role in determining the revenue cycle.

2. From the physical transmission of the revenue to the sales generation the key components helps to determine the revenue cycle.

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