3. SYSTEM FLOWCHART PAYROLL Figure 2-4 in the text illustrates how a customer order is transformed into a source document, a prod- uct document, and a turnaround document. Develop a similar flowchart for the process of paying hourly employees. The Process: Supervisors collect time sheets from employees, review them for correctness, and submit them to payroll where payroll checks are prepared and sent to the employees. In addition a summary report of total payroll charges is sent to each depart- ment manager, who reviews it for correctness, signs the report, and returns it to the payroll department to be files.

3. SYSTEM FLOWCHART PAYROLL Figure 2-4 in the text illustrates how a customer order is transformed into a source document, a prod- uct document, and a turnaround document. Develop a similar flowchart for the process of paying hourly employees. The Process: Supervisors collect time sheets from employees, review them for correctness, and submit them to payroll where payroll checks are prepared and sent to the employees. In addition a summary report of total payroll charges is sent to each depart- ment manager, who reviews it for correctness, signs the report, and returns it to the payroll department to be files.

Accounting Information Systems

10th Edition

ISBN:9781337619202

Author:Hall, James A.

Publisher:Hall, James A.

Chapter8: Financial Reporting And Management Reporting Systems

Section: Chapter Questions

Problem 5P

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Figure 2-4 in the text illustrates how a customerorder is transformed into a source document, a productdocument, and a turnaround document. Developa similar flowchart for the process of paying hourlyemployees.The Process: Supervisors collect time sheets fromemployees, review them for correctness, and submitthem to payroll where payroll checks are preparedand sent to the employees. In addition a summaryreport of total payroll charges is sent to each departmentmanager, who reviews it for correctness, signsthe report, and returns it to the payroll departmentto be files.
SYSTEM FLOWCHART—PAYROLL (AUTOMATED PROCESSES)Using the flowchart structure presented in Figure 225 in the text, prepare a system flowchart of the process outlined in Problem 3. Assume the following: Hard-copy timesheets are submitted by employees to department management. Managers submit the time sheet data digitally from their department terminals to the automated payroll application located in the data center. The automated system posts the transactions to the digital payroll file. The system also prepares and distributes hardcopy checks and cost center reports to employees and management respectively. Managers review the reports and file them in their departments. SYSTEM FLOWCHART PAYROLL Figure 2-4 in the text illustrates how a customer order is transformed into a source document, a product document, and a turnaround document. Develop a similar flowchart for the process of paying hourly employees. The Process: Supervisors collect time sheets from employees, review them for…
Automated Application Controls: Input Controls. In its automated processing systemover payroll transactions, Brady Company enters the following data from its employees’attendance records (# corresponds to a numeric field; A corresponds to an alphabetic field):∙ Employee number (##-#-##, the employees’ Social Security number).∙ Entity division (AA#, an alphanumeric field containing two letters corresponding to thelocation of the employee and two numbers corresponding to that employees’ supervisor).∙ Hours worked (##.#, a weekly total of hours worked in 0.25-hour increments).After data entry, these data are processed against the information maintained in thatemployee’s master file record. The records are accessed based on employee number. If theemployee is an hourly employee, the number of hours worked is multiplied by the pay rate; ifa salaried employee, the hours worked are checked against a range of acceptable hours. Afterthe gross pay is determined, information in the master file…
Question 4 For each of the following records, indicate the appropriate related file structure: master file,transaction file, reference file, or archive file customer ledgers purchase orders list of authorized vendors records related to prior pay periods vendor ledgers hours each employee has worked during the current pay period tax tables sales orders that have been processed and recorded
TYPES OF FILES For each of the following records, indicate the appropriate related file structure: master file, transaction file, reference file, or archive file. a. customer ledgers b. purchase orders c. list of authorized vendors d. records related to prior pay periods e. vendor ledgers f. hours each employee has worked during the current pay period g. tax tables h. sales orders that have been processed and recorded
Automated Application Controls. The following provides a brief description of the computerized payroll system used by Merriman in its biweekly processing of payroll for its employees.1. Employees automatically record their attendance (hours worked) as they log in at thebeginning and end of the workday.2. At the end of each payroll period (every two weeks), employees print and authorizetheir attendance records, submitting them to their supervisor. The computer prenumbersthese attendance records and generates them in chronological order based on when theemployee submits his or her final attendance for that payroll period.3. Supervisors review the attendance records submitted by their employees and authorizethese records, which the supervisors then forward to data entry conversion operators.4. Data conversion operators input the attendance record number, employee number, andhours worked from the attendance records that have been approved by the employeesupervisors into a file to be used…
Task 2- Service providers1. Based on the company scenario provided above, research the suitability of at least four payroll software products, from different providers, for processing your payroll in-house. Next research the suitability of at least four payroll service providers if you were to consider outsourcing your payroll. You are required to provide a short summary of the providers you have suggested. 2. Research and explain the different payroll lifecycle and software packages selected for two different organisations, one processing payroll for 20,000 employees and another processing payroll for 200 employees, both having a monthly pay frequency. (i) Explain your decision and an estimation of the costs relating to monetary value and time?● Include in your response to this task how you would manage the provider/customer and other stakeholder relationships necessary to influence successful payroll outcomes including delivery, customer care and enquiry handling. Identify the risks…
Using this supplemental information, analyze the flowchart in the diagram. The personnel department determines the wage rate of all employees. To start the process, personnel sends the payroll coordinator, George Jones, an authorization form in order to add an employee to the payroll. After Jones enters this information into the system, the computer automatically determines the overtime and shift differential rates for the individual, updating the payroll master files. Employees use a time clock to record the hours worked. Every Monday morning, George Jones collects the previous week’s time cards and begins the computerized processing of payroll information to produce paychecks the following Friday. Jones then reviews the time cards to ensure that the hours worked are correctly totaled; the system determines overtime and/or any shift differential. Jones performs all other processes displayed on the flowchart. The system automatically assigns a sequential number to each payroll check…
Question Workspace Check My Work The Accounts payable clerk for manufacturing company receives a purchase order copy for raw materials from the purchasing agent. The clerk files the PO in a temporary file and awaits the vendor’s invoice before setting up a liability. A week later the clerk receives the vendors invoice, reconciles it with the PO, posts the liability to the AP Subsidiary ledger, and establishes a due date for payment. On the due date the clerk prepares a check for the invoiced amount and mails the check to the vendor. The AP clerk then updates the check register, accounts payable subsidiary ledger, and the AP control account from his terminal. Finally, the clerk files the invoice, purchase order copy and check copy in the AP department. Required: Discuss the risks associated with this system. Describe the internal controls needed to mitigate the risks.
Q2. Categorize each of the following activities into the expenditure, conversion, or revenue cycles, and identify the applicable subsystem. a. Preparing the weekly payroll for manufacturing personnel b. Releasing raw materials for use in the manufacturing cycle c. Recording the receipt of payment for goods sold d. Recording the order placed by a customer e. Ordering raw materials f. Determining the amount of raw materials to order?
SYSTEM DOCUMENTATION- REVENUE CYCLE (MANUALAND COMPUTER PROCESSES)The following describes the revenue cycle procedures for a hypotheticalcompany. The sales department clerk receives hard-copy customer orders andmanually prepares a six-part hard-copy sales order. Copies of the salesorder are distributed to various departments as follows: Copies 1, 2, and3 go to the shipping department, and Copies 4, 5, and 6 are sent to thebilling department where they are temporarily filed by the billing clerk. Upon receipt of the sales order copies, the shipping clerk picks the goodsfrom the warehouse shelves and ships them to the customer. Theclerk sends Copy 1 of the sales order along with the goods to thecustomer. Copy 2 is sent to the billing department, and Copy 3 is filed inthe shipping department. When the billing clerk receives Copy 2 from the warehouse, she pulls theother copies from the temporary file and completes the documents byadding prices, taxes, and freight charges. Then, using the…
In quickbooks, What is the process for setting up the payroll system?