Page 332 - Accounting Information Systems

CHAPTE R 6 The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures 303

Fixed Asset System General Ledger Department
The general ledger clerk receives the cash disbursement
Purchasing
At Orbits, the purchasing department is responsible for voucher and from the cash disbursements department
and the account summary from the fixed assets depart-
ordering fixed assets for user departments based on a
ment. The general ledger clerk then accesses the depart-
user-generated purchase requisition. When the purchas-
ment PC and posts to the cash, accounts payable
ing department clerk receives the purchase requisition
control, and fixed asset control accounts. Finally, the
from the user department, she creates a purchase order
general ledger clerk files the voucher and account sum-
and sends it to the vendor. The purchase requisition is
mary in the department.
filed in the purchasing department.
When the asset shipped, the vendor sends the invoice
to the accounts payable department and delivers the Sales Order System
asset directly to the user department, where it is recon-
The sales department receives customer orders via fax,
ciled to the packing slip and placed into service. The
mail, and e-mail. A sales clerk using the sales depart-
user then sends the packing slip to the fixed asset
ment PC records the orders in the sales order file and
department.
prints a stock release, invoice, ledger copy, and packing
slip. These documents are distributed as follows:
Accounts Payable The invoice and ledger copy are sent to billing, where
Upon receipt of the invoice from the vendor, the
the clerk records the sale in the digital sales journal
accounts payable clerk accesses the department PC,
from the department computer. The clerk then sends
determines a due date for payment, records the liabil-
the invoice to the customer and the ledger copy to the
ity in the accounts payable subsidiary ledger, and files
accounts receivable department.
the invoice in the open accounts payable file.
The stock release is sent to the warehouse, where the
Periodically, the clerk reviews the open accounts
goods are picked and the warehouse clerk updates the
payable file for items to be paid. When an accounts
stock records from the department PC. The clerk then
payable is due, the clerk accesses the department PC,
sends the stock release and the goods to the shipping
prints a hard-copy cash disbursements voucher, and
department.
sends it to the cash disbursements department. The
clerk then removes the liability from the digital The packing slip is sent to the shipping department,
accounts payable subsidiary ledger. Finally, the clerk where it is reconciled to the stock release. The ship-
files the hard-copy invoice in the closed accounts pay- ping clerk then manually prepares a bill of lading and
able file. records the shipment in the shipping log. The clerk
sends the bill of lading, the product, and packing slip
to the carrier. The stock release is sent to the purchas-
Cash Disbursement ing and inventory control department, where it is
Upon receipt of the cash disbursement voucher, the cash used to update the inventory subsidiary ledger. The
disbursements clerk accesses the department PC, prints inventory control clerk then files the stock release
a vendor check, and records the check in the digital and prepares an account summary, which is sent to
check register. Next, the clerk sends the check to the the general ledger department.
vendor and sends the hard-copy cash disbursement
voucher to the general ledger department. The accounts receivable clerk receives a ledger copy
document. The clerk then accesses the department PC
to update the accounts receivable subsidiary ledger. The
Fixed Asset Department clerk then files the ledger copy and prepares an account
When the fixed asset department clerk receives the summary, which she sends to the general ledger depart-
packing slip from the user department, he accesses the ment.
department computer and records the asset in the fixed
asset subsidiary ledger. Periodically, the clerk prepares
an account summary that he sends to the general ledger. Cash Receipts System
NOTE: The fixed asset department has additional pro- The mail room receives envelopes containing customer
cedures to manage the maintenance and disposal of checks and remittance advices. The checks are sent to
fixed assets. These procedures are not part of this the cash receipts department, and the remittance advices
assignment. are sent to the accounts receivable department. The cash