ASSIGNMENT:

Prepare the Waterloo Industries Sales and Collections Document Flowchart

**IMPORTANT** INSTRUCTIONS: Please use proper symbols and follow document flowchart format

- Exhibit 2.8 has the symbols to use

- Exhibit 2.9, 2.10 are examples to use for help

(Flowchart can be done in Microsoft Excel)

Accountang 748 Flowe Horteng EXERCISE At Waterloo Industries, the revenue processes are conducted by five employees. The five employees are the sales clerk, warehouse clerk, accountant 1, accountant 2, and the collection clerk. A description of their duties is as follows: a. The sales clerk receives customer orders by phone. She or he prepares a four-copy sales order form. One copy is filed, one copy goes to the warehouse clerk, one copy goes to accountant 1, and one copy is mailed to the customer. b. After receiving a sales order, the warehouse clerk prepares a packing slip, takes the proper items from the warehouse, and ships them with the packing slip enclosed. The sales order is stamped with the ship date, and the shipping log is updated. The sales order is filed by cus- tomer number. c. After receiving the sales order from the sales clerk, accountant 1 reviews the customer records and either approves or disapproves customer credit. If he approves the customer's credit, he stamps the sales order "approved" and forwards it to accountant 2. Accountant 1 prepares a three-copy invoice. One copy is mailed to the customer, one copy is forwarded to accountant 2, and one copy goes to the collection clerk. d. Accountant 2 matches the approved sales order to the invoice and files these by customer number e. After receiving a copy of the invoice, the collec- tion clerk posts the sale to the sales journal and the accounts receivable subsidiary ledger. Daily totals from the sales journal are sent to account- ant 1, who posts these sales summaries to the general ledger f. A mail clerk forwards customer checks to the collection clerk. The collection clerk stamps the check For Deposit Only" and records it in the accounts receivable subsidiary ledger. The check is also recorded in the cash receipts journal by the collection clerk. The collection clerk deposits checks in the bank account weekly. A weekly summary of cash receipts is forwarded to accountant 2, who records these summaries in the general ledger. Assegnmanti PREPARE THE WATER 200 INDUSTRIES SA hes and Conections Document Flow Chart. Document Flowcharts (3) A document flowchart shows the flow of documents and information among depart- ments or units within an organization. Document flowcharts are usually divided into columns, each representing a department or unit of the organization. Document flowcharts trace each document in a process from its origin to its final destination. Thus, the document flowchart shows the origin of a document, the units to which it is distributed, the ultimate disposition of the document, and everything that hap- pens as it flows through the system. For documents prepared in duplicate, the docu- ment flowchart shows the flow for each copy of the document. A document flowchart is a special kind of system flowchart that depicts only docu- ment flows. However, document flowcharts do not necessarily show all the related business processes. Document flowcharts are useful for not only understanding the flow of documents, but also in understanding internal controls. The symbols used in document flowcharts are similar to those used for system flowcharts, as presented in Exhibit 2-8. EXHIBET 2.8 Process Manual Input (keying) Data Manual Process Document Direct Access Storage 0.0 0101 ONDI On-page Connector Online Data Storage Off-page Connector Decision Terminator (beginning or end) File Time Cards Correct Errors Keying Time Cards Tax Table Error Report Payroll Data Processing Employee Database EXHIBIT Payroll Transactions 2.9 Payroll Check Processing Payroll Summary Report Payroll Checks Server Customer Kitchen Accounting Customer Order EXIIIBKT 2-10 Take Customer Order and Write Order Ticket Cook Order and Forward Order Ticket Prepare Customer Bill Pay Server Update Accounting Records Document flowcharts, data flow diagrams, and process maps will be used in selected chapters of this book to illustrate business processes. The next three exhib- its are examples of how these methods of documenting systems are used to illus- trate processes for a small, local restaurant. Exhibit 2-10 is a process map in which the system for processing records and documents is manual rather than computer- ized. Exhibit 2-11 shows the corresponding document flowchart, and Exhibit 2-12 shows the corresponding data flow diagram. Data flow diagrams are explained in the next section. Accountang 748 Flowe Horteng EXERCISE At Waterloo Industries, the revenue processes are conducted by five employees. The five employees are the sales clerk, warehouse clerk, accountant 1, accountant 2, and the collection clerk. A description of their duties is as follows: a. The sales clerk receives customer orders by phone. She or he prepares a four-copy sales order form. One copy is filed, one copy goes to the warehouse clerk, one copy goes to accountant 1, and one copy is mailed to the customer. b. After receiving a sales order, the warehouse clerk prepares a packing slip, takes the proper items from the warehouse, and ships them with the packing slip enclosed. The sales order is stamped with the ship date, and the shipping log is updated. The sales order is filed by cus- tomer number. c. After receiving the sales order from the sales clerk, accountant 1 reviews the customer records and either approves or disapproves customer credit. If he approves the customer's credit, he stamps the sales order "approved" and forwards it to accountant 2. Accountant 1 prepares a three-copy invoice. One copy is mailed to the customer, one copy is forwarded to accountant 2, and one copy goes to the collection clerk. d. Accountant 2 matches the approved sales order to the invoice and files these by customer number e. After receiving a copy of the invoice, the collec- tion clerk posts the sale to the sales journal and the accounts receivable subsidiary ledger. Daily totals from the sales journal are sent to account- ant 1, who posts these sales summaries to the general ledger f. A mail clerk forwards customer checks to the collection clerk. The collection clerk stamps the check For Deposit Only" and records it in the accounts receivable subsidiary ledger. The check is also recorded in the cash receipts journal by the collection clerk. The collection clerk deposits checks in the bank account weekly. A weekly summary of cash receipts is forwarded to accountant 2, who records these summaries in the general ledger. Assegnmanti PREPARE THE WATER 200 INDUSTRIES SA hes and Conections Document Flow Chart. Document Flowcharts (3) A document flowchart shows the flow of documents and information among depart- ments or units within an organization. Document flowcharts are usually divided into columns, each representing a department or unit of the organization. Document flowcharts trace each document in a process from its origin to its final destination. Thus, the document flowchart shows the origin of a document, the units to which it is distributed, the ultimate disposition of the document, and everything that hap- pens as it flows through the system. For documents prepared in duplicate, the docu- ment flowchart shows the flow for each copy of the document. A document flowchart is a special kind of system flowchart that depicts only docu- ment flows. However, document flowcharts do not necessarily show all the related business processes. Document flowcharts are useful for not only understanding the flow of documents, but also in understanding internal controls. The symbols used in document flowcharts are similar to those used for system flowcharts, as presented in Exhibit 2-8. EXHIBET 2.8 Process Manual Input (keying) Data Manual Process Document Direct Access Storage 0.0 0101 ONDI On-page Connector Online Data Storage Off-page Connector Decision Terminator (beginning or end) File Time Cards Correct Errors Keying Time Cards Tax Table Error Report Payroll Data Processing Employee Database EXHIBIT Payroll Transactions 2.9 Payroll Check Processing Payroll Summary Report Payroll Checks Server Customer Kitchen Accounting Customer Order EXIIIBKT 2-10 Take Customer Order and Write Order Ticket Cook Order and Forward Order Ticket Prepare Customer Bill Pay Server Update Accounting Records Document flowcharts, data flow diagrams, and process maps will be used in selected chapters of this book to illustrate business processes. The next three exhib- its are examples of how these methods of documenting systems are used to illus- trate processes for a small, local restaurant. Exhibit 2-10 is a process map in which the system for processing records and documents is manual rather than computer- ized. Exhibit 2-11 shows the corresponding document flowchart, and Exhibit 2-12 shows the corresponding data flow diagram. Data flow diagrams are explained in the next