Page 331 - Accounting Information Systems

302 PART II Transaction Cycles and Business Processes

second copy of the requisition to his coworker (the pur- prints a vendor check, and records the check in the digi-
chasing clerk) in the department, who manually pre- tal check register. Next, the clerk sends the check to the
pares a four-part purchase order. The purchasing clerk vendor and sends the hard-copy cash disbursement
sends one copy of the purchase order to the accounts voucher to the general ledger department. The general
payable department (where it is filed in the accounts ledger clerk receives the cash disbursement voucher and
payable pending file) and two copies to the vendor. The posts to the general ledger cash and accounts payable
clerk sends the final purchase order copy, along with accounts, using the department PC. Finally, the general
the original purchase requisition, to another coworker in ledger clerk files the voucher in the department.
the department (the inventory control clerk) who, using
the department PC, updates the inventory ledger to re-
cord the inventory increase. The inventory control clerk Payroll System
then files the requisition and purchase order in the Production
department. Each week the production department supervisor sub-
When the products arrive, the receiving department mits employee time cards to the payroll department for
clerk inspects, counts, and reconciles them to the pack- processing. The supervisor also sends the job tickets to
ing slip. The clerk then prepares three copies of a the cost accounting department, which uses them to
receiving report, which contains quantities, prices, and allocate labor and manufacturing overhead costs to the
freight charges transcribed from the packing slip. One work-in-process account.
copy of the receiving report is sent with the inventory to
the storeroom. Another copy is sent to the accounts pay-
Payroll
able department, where it is filed in the accounts pay-
The payroll department clerk receives the time cards
able pending file. The final copy is filed in the receiving
and uses the department PC to update the employee
department.
payroll records. The clerk also prints the employee pay-
Once the accounts payable clerk receives the pur-
checks and a payroll register. A copy of the payroll
chase requisition, purchase order, and receiving report,
register is sent to the accounts payable department, and
she accesses the department PC, records the liability in
the paychecks are signed and sent to the supervisors for
the purchases journal, and posts it to the supplier’s
distribution to the employees. A copy of the payroll
account in the accounts payable subsidiary ledger. The
register and the time cards are filed in the department.
clerk then transfers the hard-copy purchase requisition,
purchase order, and receiving report to the open
accounts payable file. The accounts payable clerk then Accounts Payable
prints a journal voucher from the PC summarizing the The accounts payable department uses the payroll regis-
transactions in the purchases journal for the period and ter to manually prepare two copies of a cash disburse-
sends it to general ledger department. The general ments voucher. One copy of the voucher and the
ledger clerk receives the hard-copy journal voucher and payroll register are sent to the cash disbursements
the invoice from the vendor. The clerk then uses the department. The second copy of the voucher is sent to
department PC to post to the inventory and accounts the general ledger department.
payable control accounts.
Cash Disbursements
Cash Disbursements Process The cash disbursements department uses the payroll
register and the cash disbursements voucher to man-
Periodically the accounts payable clerk reviews the
ually prepare a check for the total payroll. The payroll
hard-copy documents in the open accounts payable file
check is signed and sent to the bank for deposit into the
and identifies items to be paid. The clerk accesses the
payroll imprest account. The voucher, the payroll check
department PC, prints a hard-copy cash disbursements
copy, and payroll register are filed in the department.
voucher, and sends it to the cash disbursements depart-
ment. The clerk then removes the liability from the digi-
tal accounts payable subsidiary ledger. Finally, the clerk General Ledger
files the hard-copy documents in the closed accounts The general ledger uses the cash disbursements voucher
payable file. to update digital general ledger payroll account from the
Upon receipt of the cash disbursements voucher, the department PC. The voucher is then filed in the
cash disbursements clerk accesses the department PC, department.