PREPARE A FLOWCHART USING THE INFORMATION BELOW

Use the transaction system description to prepare a flowchart that documents the credit approval/sales processing system for the Toscana Company.

Credit Approval and Sales Processing.

- Customer orders are received in the mail, over the telephone, and over the counter by sales clerks in the marketing department. The clerks prepare written sales orders for telephone and counter customers, signing each one and asking the counter customers to sign in person. The sales orders contain the customer name, a customer number (assigned immediately for new customers), customer address, identification of products, and the quantity ordered. The sales order forms are kept in the sales clerksworking area through which many people pass during the day. The sales order documents used in the offices are prenumbered.

The sales clerks prepare an estimate of the dollar amount of the order and write it on the form. The sales orders are then hand-carried to the credit manager in the treasurers office. The credit manager checks the customers accounts receivable balances and other credit file information using a computer-based inquiry system. If credit is approved, the credit manager signs the sales order.

If credit is not approved, the customer is asked to pay in advance, and the sales order is held until notification of payment is received from the cashier. The sales order is stamped paid and sent to the billing department. Likewise, when customers pay cash over the counter, the money is taken by the cashier, and the sales order is stamped paid and sent to the billing department. For bookkeeping convenience, these cash sales are treated the same as credit sales, with the invoice amount being charged to an accounts receivable set up for the customer, and the customers payment being applied immediately to the same account.

After credit has been approved, or a payment is received, the sales orders are sent to the billing department in the controllers office. The billing clerks produce a four-copy sales invoice on a prenumbered invoice form. Using a screen facsimile on a desktop computer, they insert the customer and product information from the customer order, the date, and the product unit prices from an approved price list. Sales taxes, delivery charges, and the invoice total are computed automatically and updated on the invoice shown on the computer screen. The four-copy sales invoice is then printed using a special full color printer.

Copy 1 and copy 2 of the sales invoice, the customer order, and the sales order are sent to the accounts receivable department, which is also in the controllers office. These documents are held in invoice numerical order in a pending shipment file, awaiting matching with copy 4 of the invoice, which was first sent to the inventory stores department as authority for the storeskeeper to put the order together and move it to the shipping department. Copy 3 of the invoice is sent to the shipping department, where it is initially held in a pending release file.