Accounts payable process at Atlas

In order to promote the transition to a computerized system, Thomas Edward wanted to record and analyze the accounting payable process at Atlas corporation. He also hopes to strengthen any flaws in the structure that he finds. Thomas describes the following narrative in What goes on at Atlas:

Before Atlas pays a vendor invoice, the invoice must be matched against the purchase

order used to request the goods and the receiving report that the receiving

department prepares. Because all three of these documents enter the accounts payable

department at different times, a separate alphabetical file is kept for each type of document. The purchase orders that are forwarded from purchasing are stored in a purchase order file. The receiving reports are stored in a receiving report file.When vendor invoices are received, the accounts payable clerk records the amount due in the accounts payable file and files the invoices in the vendor invoice file.

Atlas pays all accounts within 10 days to take advantage of early billing.

When it is time to pay a bill, the account payable clerk retrieves the vender's invoice, attaches the purchase order and the receiving report, and forwards the matched documents to Thomas Edward. Thomas checks the documents to ensure they are correct, prepares a two-part check, forwards all documents to Smitha, and records the check in the cash disbursement journal.

The documents are analyzed by Smitha to ensure they are valid payables and accurate payables. Those checks are signed. She forwards the check to the provider and returns to the account payable clerk the records and the check copy. In a paid invoice file, the clerk registers the records alphabetically. The accounts payable clerk uses the accounts payable ledger at the end of each month to prepare an accounts payable report which is forwarded to Smitha. Smitha files it chronologically, after she's done with the report.

Marks: 10

1. Draw a context diagram

2. Prepare the table of entities and activities

3. Draw a detailed Data Flow Diagram ( Level 0 DFD)

Internal Verifier title assegnment:Accounting Information System