COMPREHENSIVE FLOWCHART NARRATIVE Huey, Dewey, and Louie (HDL) is a construction company. The following narrative describes a portion of the cash disbursement process for the company. Periodically, vendors send an invoice directly to Betty, HDL's accounts payable clerk, for payment of goods received during the construction process. When received, Betty uses a computer terminal to enter the invoice data into HDL's system, where it is saved to the database. After entering the invoice, Betty forwards the invoice to George, the cash disbursements clerk. Using the invoice, George manually prepares a 2-part check to pay for the invoice and forwards both the invoice and the two copies of the check to John, HDL's Treasurer, for approval. John manually reviews the invoice and 2-part check for accuracy and reasonableness. Once approved, John stamps the invoiced as "PAID" and signs the 2-part check. Part 1 of the check is mailed to the vendor. John files Part 2 of the check in a filing cabinet in numerical order. The stamped invoice is then sent back to George. George enters the cancelled invoice data into HDL's system using a computer terminal. Once entered, the data is processed and saved to the database. George then files the cancelled invoice in alphabetical order. At the end of the month, Betty enters commands into a computer terminal to gather accounts payable data from the database. Once processed, the system prints the cash disbursements journal, accounts payable ledger, and accounts payable subledger. Inputs/Outputs/Data Storage Display Document Online Keying (e.g., keyboard) Multiple Copies of Same Document A Data Stored on Disk (Database) Data Stored on Magnetic Tape Data Stored in Paper File Accounting Journal or Ledger Processes and Decisions Manual Process Computerized Process Decision COMPREHENSIVE FLOWCHART NARRATIVE Huey, Dewey, and Louie (HDL) is a construction company. The following narrative describes a portion of the cash disbursement process for the company. Periodically, vendors send an invoice directly to Betty, HDL's accounts payable clerk, for payment of goods received during the construction process. When received, Betty uses a computer terminal to enter the invoice data into HDL's system, where it is saved to the database. After entering the invoice, Betty forwards the invoice to George, the cash disbursements clerk. Using the invoice, George manually prepares a 2-part check to pay for the invoice and forwards both the invoice and the two copies of the check to John, HDL's Treasurer, for approval. John manually reviews the invoice and 2-part check for accuracy and reasonableness. Once approved, John stamps the invoiced as "PAID" and signs the 2-part check. Part 1 of the check is mailed to the vendor. John files Part 2 of the check in a filing cabinet in numerical order. The stamped invoice is then sent back to George. George enters the cancelled invoice data into HDL's system using a computer terminal. Once entered, the data is processed and saved to the database. George then files the cancelled invoice in alphabetical order. At the end of the month, Betty enters commands into a computer terminal to gather accounts payable data from the database. Once processed, the system prints the cash disbursements journal, accounts payable ledger, and accounts payable subledger. Inputs/Outputs/Data Storage Display Document Online Keying (e.g., keyboard) Multiple Copies of Same Document A Data Stored on Disk (Database) Data Stored on Magnetic Tape Data Stored in Paper File Accounting Journal or Ledger Processes and Decisions Manual Process Computerized Process Decision
