accounting information systems
MS Television, Inc. ("MS") sells televisions, projectors, computers and home entertainment systems to corporations, governments, and universities. MS buys items from the original equipment manufacturers and stores them in its warehouse. MS sells items to customers through an on-line catalog and direct sales. Items ordered are picked from the warehouse and shipped to the customer. Management has decided to update its systems and hired us to help them. Our first task is to document the "as is" business processes. From the narrative below, prepare a document flowchart. MS Personnel: MS employs four people to handle the functions involved in the expenditure cycle. Maria Gonzalez is the company's purchasing agent. Joe Hunter runs the warehouse. Betty York is the company accountant. Jasper Hansen handles banking and financing matters. Purchase Orders: At the end of each day, the computerized inventory management system checks to see if inventory levels for individual items dropped below the re-order quantity, and creates and prints a report showing the items and quantities needed (Requisition Report.) Joe reviews and approves the Requisition Report and sends it to Maria. She finds vendors who can provide the requested items and negotiates price and other terms. Maria writes the vendor, inventory, quantity, price and other data on a 3-part purchase order, which she sends to Jasper for approval. Jasper returns the approved purchase order to Maria. Maria sends the original to the vendor, one to Betty and files the last copy by vendor name. She files the Requisition Report by date. Receive Goods: Joe receives the goods from the vendors. He inspects and counts the items. He enters the receiving data in the inventory computer system, which updates the inventory and goods receipt files. Vendor Invoice: Vendor invoices are sent to Betty. Betty checks the accuracy of the invoice and compares it to the purchase order. She queries the inventory system to determine if the quantity and description of items received match the vendor invoice. If there is a discrepancy between the invoice, purchase order and receiving data, Betty works with Maria and the vendor to resolve the problem. She adjusts the invoice, if necessary (Consider one manual process to compare, resolve and adjust-use annotation if more space is needed.) Betty records the invoice data in the purchases journal and accounts payable subsidiary ledger. Payment: Betty prepares a two-part check for the amount of the adjusted invoice. She records the check data in the accounts payable subsidiary ledger and cash disbursement journal. She gives the two-part check, purchase order, and vendor invoice to Jasper. Jasper reviews the package, signs the check, and cancels the supporting documents. He mails the check to the vendor and returns the supporting documents to Betty, who files them by date. MS Television, Inc. ("MS") sells televisions, projectors, computers and home entertainment systems to corporations, governments, and universities. MS buys items from the original equipment manufacturers and stores them in its warehouse. MS sells items to customers through an on-line catalog and direct sales. Items ordered are picked from the warehouse and shipped to the customer. Management has decided to update its systems and hired us to help them. Our first task is to document the "as is" business processes. From the narrative below, prepare a document flowchart. MS Personnel: MS employs four people to handle the functions involved in the expenditure cycle. Maria Gonzalez is the company's purchasing agent. Joe Hunter runs the warehouse. Betty York is the company accountant. Jasper Hansen handles banking and financing matters. Purchase Orders: At the end of each day, the computerized inventory management system checks to see if inventory levels for individual items dropped below the re-order quantity, and creates and prints a report showing the items and quantities needed (Requisition Report.) Joe reviews and approves the Requisition Report and sends it to Maria. She finds vendors who can provide the requested items and negotiates price and other terms. Maria writes the vendor, inventory, quantity, price and other data on a 3-part purchase order, which she sends to Jasper for approval. Jasper returns the approved purchase order to Maria. Maria sends the original to the vendor, one to Betty and files the last copy by vendor name. She files the Requisition Report by date. Receive Goods: Joe receives the goods from the vendors. He inspects and counts the items. He enters the receiving data in the inventory computer system, which updates the inventory and goods receipt files. Vendor Invoice: Vendor invoices are sent to Betty. Betty checks the accuracy of the invoice and compares it to the purchase order. She queries the inventory system to determine if the quantity and description of items received match the vendor invoice. If there is a discrepancy between the invoice, purchase order and receiving data, Betty works with Maria and the vendor to resolve the problem. She adjusts the invoice, if necessary (Consider one manual process to compare, resolve and adjust-use annotation if more space is needed.) Betty records the invoice data in the purchases journal and accounts payable subsidiary ledger. Payment: Betty prepares a two-part check for the amount of the adjusted invoice. She records the check data in the accounts payable subsidiary ledger and cash disbursement journal. She gives the two-part check, purchase order, and vendor invoice to Jasper. Jasper reviews the package, signs the check, and cancels the supporting documents. He mails the check to the vendor and returns the supporting documents to Betty, who files them by date
