System Documentation

The following describesthe expenditure cycle proceduresfor Nomad Bhd, Malaysian- based industrial equipment manufacturer, located on industrial area in the central state of Selangor, Shah Alam.

The inventory control clerk examines the inventory records for items that must be replenished and prepares a two-part purchase requisition. Copy 1 of the requisition is sent to the purchasing department and Copy 2 is filed.

Upon receipt of the requisition, the purchase clerk selects a supplier from the valid vendor journal (reference file) and prepares a three-part purchase order. Copy 1 is sent to the supplier, Copy 2 is sent to the accounts payable department where it is filed temporarily, and Copy 3 is filed in the purchasing department.

A few days after the supplier ships the order, the goods arrive at the receiving department. They are inspected and the receiving clerk prepares a three-part receiving report describing the number and quality of the items received. Copy 1 of the receiving report accompanies the goods to the warehouse, where they are secured and the receiving report is filed. Copy 2 is sent to inventory control, where the clerk posts to the inventory records (journal) and files the document. Copy 3 is sent to the accounts payable department, where it is filed with the purchase order.

A day or two later, the accounts payable (AP) clerk receives the supplier's invoice (bill)for the items shipped. The clerk pulls the purchase order and receiving report from the temporary file and compares the quantity ordered, quantity received, and the price charged. After reconciling the three documents, the clerk enters the purchase in the purchases journal and posts the amount owed to the accounts payable subsidiary ledger.

Continued...

EPPA Sistem Maklumat Perakaunan Assignment

On the payment due date, the AP clerk posts to the AP subsidiary ledger to remove the liability and prepares a voucher authorizing payment to the vendor. The voucher is then sent to the cash disbursement clerk.

Upon receipt of the voucher, the cash disbursements clerk prepares a check and sends it to the supplier. The clerk records the check in the check register and files a copy of the check in the department filing cabinet.

You are required to prepare:

1)Context Diagram (5 marks)

2)Level 0 Data Flow Diagram (10 marks)

3)Document Flowchart (15 marks)