The payroll process begins when the time cards are received by factory supervisor

from the factory employees. The supervisor approves the time cards. The cards are then

batched (with batch totals being prepared) and sent to the payroll department.

The payroll clerk reconciles the time cards and batch tapes to make sure none

were lost and the information is accurate. The total hours and hours per project are

entered into the payroll system and the system updates the disk storage. Next the time

report is printed by the system. The payroll clerk gives the time report, time cards and

batch tapes to the payroll manager who checks the information and then approves the

report returning them to the payroll clerk.

The next step is for the payroll clerk to enter the START command into the

system and the system calculates the payroll information and summarizes the job

information (hours for each job). Then the system prints out two types of reports in the

payroll department, the payroll register (2 copies) and the job labor cost report (3 copies).

Copy 2 of the job labor cost report is filed (by date) by the payroll clerk. Copy 1 of the

job labor cost report is sent to the cost accountant and copy 3 is sent to the factory

supervisor where it is filed by date.

Using the payroll register, the payroll clerk prepares the Payroll journal voucher

(2 copies). The journal vouchers and payroll registers are given to the payroll manager,

who approves the JV and outputs. They are returned to the payroll clerk. Copy 2 of the

payroll register and copy 2 of the JV, along with the time cards, time report, and batch

total are filed (by date). Copy 1 of the payroll register is sent to the cashier. Copy 1 of

the JV is sent to the general ledger department.

After receiving the payroll register, the cashier checks the payroll register for the

proper approval. Next the cashier enters the payroll system and requests the payroll

checks. The system reads the information on the disk and prints the payroll checks. The

cashier sends the payroll checks and the payroll register to the treasurer. The treasurer

examines the payroll checks and then signs them. The payroll checks are sent to the

factory employees and the payroll register is returned to the cashier who files it by date.

2. Prepare a context DFD

Model

Audit Staff Payroll TIR Tima Sheets ApprovedFime Time Tracking Process JPEUP Partner