Book: Core Concepts of Accounting Information Systems 12th edition

6.24: Classic Photography Inc. (Systems Flowchart)

Jenny Smith owns Classic Photography Inc., a company that restores photos for its clients and creates electronic images from the restored photos. The company also frames restored photos and creates sophisticated custom artworks. Artworks include materials such as glass and frames that are purchased from local suppliers. In addition to supplies for displays, the company purchases office supplies and packaging materials from several vendors.

Classic Photography uses an off-the-shelf accounting software package to prepare internal documents and reports. As employees note a need for supplies and materials, they send an email to Jenny, who acts as the office manager and company accountant. Either Jenny or her assistant Donna enters order information into the accounting system and creates a purchase order that is faxed to the supplier. Jenny or Donna may also call the supplier if there is something special about the product ordered.

1. Create a systems flowchart for the purchase and payment processes.
2. comment on the value, if any, that having a systems flowchart describing this process would have to Jenny.