The following describes the purchases and cash disbursements procedures for a lawn and garden supply wholesaler that uses central computer system terminals with in departments. The inventory control clerk visually reviews inventory levels from his computer terminal to identify items that need to be ordered. He then prints and sends a hard copy purchase requisition for the needed items to the purchasing agent. Based on the requisi- tion, the purchasing agent selects a vendor and adds a digital record to the purchase order file from terminal in the purchasing department. The clerk then prints a hard copy of the purchase order and mails it to the vendor. Finally, the purchasing agent destroys the purchase requisition, which it is no longer niceded since the relevant details are on the PO. When the materials arrive at the receiving department a receiving clerk prints a copy of the purchase order from his terminal and reconciles to the packing slip. The clerk then manually creates wo-part hard copy receiving report. One copy of E receiving report is sent to Inventory Control and the other is sent to the purchasing department. he packing slip is sent with inventory to the warehouse. When the purchasing agent receives the receiving report, he closes the digital PO record and adds a record to the digital receiving report file. He then destroys the hard copy receiving report, which is no longer needed. Upon receipt of receiving report copy, the inven- tory control clerk updates the inventory subsidiary led- ger to record the receipt. The clerk then destroys the hard copy receiving report. Vendors send hard copy invoices to the AP elerk for processing. When the clerk receives an invoice, she reconciles it with the digital purchase order and receiving report. She then selects a due date and adds a record to the Vendor Invoice file, which serves the AP Subsidiary ledger. The clerk then files the invoice in the department. On the due date the computer system automati- cally prints a check, mails it to the vendor, closes the Vendor Invoice record to discharge the liability, and records the payment in the Cash Disbursement file a) create the system flowchart
The following describes the purchases and cash disbursements procedures for a lawn and garden supply wholesaler that uses central computer system terminals with in departments.
The inventory control clerk visually reviews inventory levels from his computer terminal to identify items that need to be ordered. He then prints and sends a hard copy purchase requisition for the needed items to the purchasing agent. Based on the requisi- tion, the purchasing agent selects a vendor and adds a digital record to the purchase order file from terminal in the purchasing department. The clerk then prints a hard copy of the purchase order and mails it to the vendor. Finally, the purchasing agent destroys the purchase requisition, which it is no longer niceded since the relevant details are on the PO.
When the materials arrive at the receiving department a receiving clerk prints a copy of the purchase order from his terminal and reconciles to the packing slip. The clerk then manually creates wo-part hard copy receiving report. One copy of E receiving report is sent to Inventory Control and the other is sent to the purchasing department. he packing slip is sent with inventory to the warehouse.
When the purchasing agent receives the receiving report, he closes the digital PO record and adds a record to the digital receiving report file. He then destroys the hard copy receiving report, which is no longer needed.
Upon receipt of receiving report copy, the inven- tory control clerk updates the inventory subsidiary led- ger to record the receipt. The clerk then destroys the hard copy receiving report.
Vendors send hard copy invoices to the AP elerk for processing. When the clerk receives an invoice, she reconciles it with the digital purchase order and receiving report. She then selects a due date and adds a record to the Vendor Invoice file, which serves the AP Subsidiary ledger. The clerk then files the invoice in the department.
On the due date the computer system automati- cally prints a check, mails it to the vendor, closes the Vendor Invoice record to discharge the liability, and records the payment in the Cash Disbursement file
a) create the system flowchart
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