Sales Order Procedures: The revenue process begins in the sales department of the firm

where customers submit orders by fax, e$-$mail, or phone. A clerk in the sales department

creates a sales order that details the items needed. Next, the salesclerk performs a

credit check on the customer. If it is a returning customer, then the salesclerk checks

the customer$$s payment history from the centralized credit records. For new customers

a full credit check is performed via an online credit bureau. Once the salesclerk

approves the creditworthiness of the customer, he prints a sales order, a packing slip,

and a stock release document from his terminal. The clerk adds a record to the digital

open sales order file and sends the hard copy sales order, packing slip, and stock

release documents to the billing department, shipping department, and warehouse,

respectively. When the warehouse receives the stock release, a warehouse clerk

arranges for the merchandise to be sent to the shipping department, along with the

stock release document. Finally, the warehouse clerk updates the inventory subsidiary

ledger from the terminal in the warehouse. When the shipping department receives

clerk the stock release, he compares it to the packing slip previously received from the

sales department. The clerk then prepares a BOL, which accompanies the goods to the

carrier. Finally, the shipping clerk records the shipment in the digital shipping log$.$ Upon

receipt of the sales order, the billing department clerk adds prices and freight charges

to create a sales invoice, which is sent to the customer. From the department terminal,

the clerk then updates the digital account receivable subsidiary ledger and records the

sales details in the sales journal. At the end of the day the billing department clerk prints

a hard$-$copy account receivable summary and sales journal voucher, which she sends

to the general ledger department. Upon receipt of the account receivable summary

and the sales journal voucher, the general ledger department clerk updates the

general ledger and posts the voucher details to the journal voucher file from the

department terminal.

Cash Receipts Procedures: Mail room clerks open customer cash receipts, reviews the

check and remittance advices for completeness, and pre$-$pares two copies of a

remittance list. One copy is sent with the checks to the cash receipts department. The

second copy the remittance advices are sent to the billing department. When the cash

receipts clerk receives the checks and remittance list, he verifies the checks received

against those on the remittance list and signs the checks $$For Deposit Only.$$ Once the

checks are endorsed, he records the receipts in the cash receipts journal from his

terminal. The clerk then fills out a deposit slip and deposits the checks in the bank. At

the end of the day, the clerk prints a hard$-$copy cash receipts journal voucher and

sends it to the general ledger department. Upon receipt of the remittances, the billing

department clerk records the amounts in the account receivable subsidiary ledger from

the department terminal. At day$$s end the clerk also prints a hard$-$copy AR summary

and sends it to the general ledger department. The general ledger department verifies

the AR summary with the journal vouchers and then updates the journal voucher file

and the general ledger with the verified transaction amounts.

Required:

a$.$ Create a DFD of the current system.

b$.$ Create a system flowchart of the existing system.