Page 134 - Accounting Information Systems

CHAPT E R 2 Introduction to Transaction Processing 105

10. DATA FLOW DIAGRAM cash disbursements clerk. Upon receipt of the voucher,
the cash disbursements clerk prepares a check and sends
Data flow diagrams employ four different symbols.
it to the supplier. The clerk records the check in the
What are these symbols, and what does each symbol
check register and files a copy of the check in the
represent?
department filing cabinet.
11. TRANSACTION CYCLE
Required
RELATIONSHIP
Prepare a data flow diagram and a system flowchart of
Refer to Figure 2-1, which provides a generic look at the expenditure cycle procedures previously described.
relationships between transaction cycles. Modify this
figure to reflect the transaction cycles you might find at
a dentist’s office. 13. RECORD STRUCTURES FOR
RECEIPT OF ITEMS ORDERED
12. SYSTEM DOCUMENTATION— Refer to Figure 2-28 and the discussion about updating
EXPENDITURE CYCLE (MANUAL master files from transaction files. The discussion
PROCEDURES) presents the record structures for a sales transaction.
Prepare a diagram (similar to Figure 2-28) that presents
The following describes the expenditure cycle manual
the record structure for the receipt (Receiving Report)
procedures for a hypothetical company.
of inventory items ordered. Presume a purchase order
The inventory control clerk examines the inventory
file exists and will be updated through information col-
records for items that must be replenished and prepares a
lected via a receiving report. Further, presume the pur-
two-part purchase requisition. Copy 1 of the requisition
chase was made on account.
is sent to the purchasing department, and Copy 2 is filed.
Upon receipt of the requisition, the purchasing clerk
selects a supplier from the valid vendor file (reference 14. SYSTEM DOCUMENTATION—
file) and prepares a three-part purchase order. Copy 1 is PAYROLL
sent to the supplier, Copy 2 is sent to the accounts pay- The following describes the payroll procedures for a hy-
able department where it is filed temporarily, and Copy pothetical company.
3 is filed in the purchases department. Every Thursday, the timekeeping clerk sends em-
A few days after the supplier ships the order, the ployee time cards to the payroll department for process-
goods arrive at the receiving department. They are ing. Based on the hours worked reflected on the time
inspected, and the receiving clerk prepares a three-part cards, the employee pay rate and withholding informa-
receiving report describing the number and quality of tion in the employee file, and the tax rate reference file,
the items received. Copy 1 of the receiving report the payroll clerk calculates gross pay, withholdings, and
accompanies the goods to the stores, where they are net pay for each employee. The clerk then manually pre-
secured. Copy 2 is sent to inventory control, where the pares paychecks for each employee, files hard copies of
clerk posts it to the inventory records and files the docu- the paychecks in the payroll department, and posts the
ment. Copy 3 is sent to the accounts payable depart- earnings to the hard-copy employee records. Finally, the
ment, where it is filed with the purchase order. clerk manually prepares a payroll summary and sends it
A day or two later, the accounts payable clerk receives and the paychecks to the cash disbursements department.
the supplier’s invoice (bill) for the items shipped. The The cash disbursements clerk reconciles the payroll
clerk pulls the purchase order and receiving report from summary with the paychecks and manually records the
the temporary file and compares the quantity ordered, transaction in the hard-copy cash disbursements journal.
quantity received, and the price charged. After reconcil- The clerk then files the payroll summary and sends the
ing the three documents, the clerk enters the purchase in paychecks to the treasurer for signing.
the purchases journal and posts the amount owed to the The signed checks are then sent to the paymaster, who
accounts payable subsidiary account. distributes them to the employees on Friday morning.
On the payment due date, the accounts payable clerk
posts to the accounts payable subsidiary account to Required
remove the liability and prepares a voucher authorizing Prepare a data flow diagram and a system flowchart of
payment to the vendor. The voucher is then sent to the the payroll procedures previously described.