CASE B: Bondstreet Company {Billing and Cash Receipts Processes} The Bondstreet Company sells medical supplies to hospitals, clinics, and doctorsr ofces. Bondstreet uses an ERP system for all of its business processes. The billing process begins each morning when a clerk in the billing section of the accounts receivable department requests that the ERP system display the billing due list on their computer screen. These are the shipments made the previous clay from the warehouse at Bondstreet's customer fulllment center. At the bottom of the list, the computer displays the total number of records in the billing clue list, the total number of items that were shipped, and a hash total of the customer numbers. The clerk records these onto a batch total sheet. The cleric then requests that the ERP system execute the billing program. This program prepares invoice records by accessing the customer data to get the routing information for the electronic invoice and the payment terms to be given to the customer. The program also obtains the prices from the inventory data. Finally, the program examines the sales order data to determine how the shipment was routed so that shipping costs can be added to the invoice. At the end of this process, the computer calculates and displays a total of the number of invoices, the total items being billed, and a hash total of the customer numbers in the batch of invoices. The billing clerk reconciles the invoice totals with those obtained from the billing clue list. If the totals agree, the clerk accepts the batch of invoices. In response, the ERP system updates the sales order to show that the shipment has been billed, closes the billing clue list, creates an accounts receivable record, updates the general ledger for the sale, sends an electronic invoice to the customer, and displays a job completed notice on the billing clerk's screen. The cash receipts process begins each morning when the lockbox at Bondstreet's banlr sends a le of remittance data processed the previous day. Bondstreet's ERP system automatically saves this le. For each payment, this le contains a customer number, invoice number, and amount paid. Totals in this tile include hash totals for customer number and invoice number and the total payments. The bank also sends an email containing these same totals. A clerlr in the cash applications section of the accounts receivable department requests that the ERP system display the totals in the remittance le and manually compares those totals to those in the email. If the totals agree, the clerlt requests that the ERP system apply the payments to the accounts receivable data. The computer examines the terms on the invoice record, calculates the amount that should be paid, and records the payment again, assuming that the amounts are all correct]. The computer displays the totals recorded to accounts receivable and discounts, and the total amount paid. The clerk compares these totals to those obtained from the em ail and remittance le. if these agree, the clerk requests that the ERP system update the general ledger [cash, accounts receivable, discounts} for this batch. P 11-2. For Elondstreet Company {Billing and Cash Receipts Processes}, complete the following requirements, using software where flowcharts are required: a. Draw a systems flowcha rt. b. Prepare a control matrix, including explanations of how each recommended existing control plan helps to accomplish or would accomplish in the case of missing plans- each related control goal. 1'|"our choice of recommended control plans could come from Exhibit 11.1 andior Exhibit 11.2 lpgs. 429 and 4354345} plus any other control plans from Chapters 9 or it) that are germane to your com pany's process. c. Annotate the owchart prepared in part a to indicate the points where the control plans are being applied {codes P1, ..., Pu} or the points where they could be applied but are not [codes M1, ..., lull'11}