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Chapter 7
Expenses incurred

Employee prepares
expense report

Employee copies
report and receipts
186
Employee attaches
receipts for all
expenses > $25

Employee mails
expense report to
sales manager

Sales manager Employee modifies
reviews report expense report

Expense Sales manager
report mails report back
approved No to employee
?
Yes

Sales manager mails
expense report to
corporate office

1

Source Line: Course Technology/Cengage Learning.

FIGURE 7-2 Partial process map for Fitter’s expense-reporting process

Establishing process boundaries is one of the most important steps in process
mapping. The process boundaries define which activities are to be included in the
process, and which are considered part of the environment—external to the process. It is
important to clearly define the activities that are part of the process and those that are
external to the process. Without clearly defined boundaries, a project can expand to the
point where it can become unmanageable. Many activities related to sales employee
expenses are considered outside of the boundary of Fitter’s expense-reporting process
map. For example, Fitter might provide cash advances or issue corporate credit cards for
travel expenses. Employees might need to make reservations for air travel or hotels

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