Acc622 T2 [PDF]

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Problem 3.2



Employees at the Dewey Construction Company enter the work they perform on jobtime tickets. Most are working on. Every night the job-time ticket data for that day is sent electronically to company headq A few construction sites are so remote that employees still fill out paper job-time tickets. These tickets



Payroll is processed weekly. The job-time tickets are used to update the payroll database as well as the pay in the employee’s bank account. Payments are made to government tax bodies and the company h also produces pay stub data that is stored in a payroll transaction file that is accessible to employees ov REQUIRED a. Prepare a system flowchart for Dewey Construction Company’s payroll processing. b. Prepare a BPD for Dewey Construction Company’s payroll processing. Answer Following are the two different flowchart for the Dewey Construction Company. a. Below is a system flowchart for Dewey Construction Company’s payroll processing



View job-time ticket form



Enter job-time ticket data



Payroll summary report



Weekly: Update payroll, work in process, & payroll transaction databases, disburse funds, print reports



Disburse Funds



Employee Payments



Government Payments



401K company Payments



Work in process database



Payroll database



Payroll transaction file



b. Below is a BPD for Dewey Construction Company’s payroll processing.



Employee



Activities Performed



Job Sites



Enter job-time tickets



Express mail Weekly paper job-time tickets



Data Processing



Process jobtime tickets



Update payroll database, work in process database, payroll transaction file



Payroll Supervisor



Employees



Access payroll data using Internet



n jobtime tickets. Most construction sites have data input terminals that employees use to enter the time they start and stop work and th nically to company headquarters where it is stored until payroll is processed.



me tickets. These tickets are express mailed weekly to company headquarters where they are scanned and processed.



database as well as the work-in-process database. Since all employees are paid electronically, no checks are printed; instead, the payroll s dies and the company handling the employee’s and the company’s 401K plan contributions. All disbursements are accompanied by a repo essible to employees over the internet. An electronic summary payroll report is created and sent to the payroll supervisor.



Remote location job-time ticket



Express mail weekly to headquarters



Scan job time tickets



Scan job time tickets



View payroll data



Payroll transaction file



roll ork in abase, saction



Employee query



Enter job-time Remote tickets daily Location



Disburse funds to employees, government, 401K company



Review summary payroll report



Create and send summary payroll report



Review summary payroll report



art and stop work and the job code that represents the project they



ed; instead, the payroll system deposits an employee’s net e accompanied by a report summarizing the disbursement. The system



Problem 3.3 At ANGIC Insurance Company begins processing casualty claims when the claims department receives a notice of loss from a claimant. The claims department prepares and sends the claimant four copies of a proof-of-loss form on which the claimant must detail the cause, amount, and other aspects of the loss. The claims department also initiates a record of the claim, which is sent with the notice of loss to the data processing department, where it is filed by claim number. The claimant must fill out the proof-of-loss forms with an adjuster’s assistance. The adjuster must concur with the claimant on the estimated amount of loss. The claimant and adjuster each keep one copy of the proof-of-loss form. The adjustor files his copy numerically. The adjustor sends the first two copies to the claims department. Separately, the adjuster submits a report to the claims department, confirming the estimates on the claimant’s proof-of-loss form. The claims department authorizes a payment to the claimant, forwards a copy of the proof-of-loss form to data processing, and files the original proof-of-loss form and the adjuster’s report alphabetically. The data processing department prepares payment checks and mails them to the customers, files the proof-of-loss form with the claim record, and prepares a list of cash disbursements, which it transmits to the accounting department where it is reviewed. REQUIRED a. Prepare a document flowchart to reflect how ANGIC Insurance Company processes its casualty claims. b. Prepare a BPD to reflect how ANGIC Insurance Company processes its casualty claims. Answer Following are the two different flowchart for the ANGIC Insurance Company.



a. Below is a document flowchart to reflect how ANGIC Insurance Company processes its casualty claims



ADJUSTER



CLAIMS DEPARTMENT



  From claimant



Proof of LossProof Form of Loss



1



START



From Claimant



2 3 4



Notice of Loss



Prepare proof of loss form, claim record



Prepare proof of loss form, claim record



Proof of LossProof Form of Loss



4



Proof of Proof of Loss



1



2



Loss



Notice of Loss



3 4



Assist claimant with form



Prepare Separate Report



Claim Record



Adjuster’s Report



To Claimant Adjuster’s Report



Proof of LossProof of Loss



1



Proof of Proof of Loss



1



2



Proof of Loss



1



Authorize Claim Payment



2



Loss



3 4



Adjuster’s Report



N To Claimant



A



b. Below is a BPD to reflect how ANGIC Insurance Company processes its casualty claims.



Employee Claims Department



Activities Performed From Claimant Receive notice of loss



Data Processing Department



Prepare proof of loss form, send to claimant



Initiate record of claim



Receive notice of loss & record of claim



Recei authori proofloss



loss Data Processing Department



Adjustor



Claims Department



Accounting



send to claimant



claim



Receive notice of loss & record of claim Help claimant complete proofof-loss, agree on loss amount



Prepare adjuster report



Receive proofof-loss, adjustor report



Authorize payment to claimant



Recei authori proofloss



laims department



imant must ment also initiates



ss. The claimant



ming the estimates



res payment



accounting



ocesses its casualty claims.



processes its casualty claims.



DATA PROCESSING



Notice of Loss



Prepare proof of loss form, claim record



Prepare proof of loss form, claim record



Notice of Loss Claim Record



Adjuster’s Report



Authorize Claim Payment



Notice of Loss Claim Record



Proof of Loss



2



N



Proof of Loss



 



2



Prepare Check & Disbursement List



Disbursement List



Accounting Adjuster’s Report



Check



To Claimant



ualty claims.



Initiate record of claim



otice & laim



Receive authorized proof-ofloss



Prepare & disburse payment check



Prepare cash disbursements list



claim



otice & laim



Receive authorized proof-ofloss



Prepare & disburse payment check



Authorize payment to claimant



Review cash disbursement list



Prepare cash disbursements list



Problem 3.4 Beccan Company is a discount tire dealer operating 25 retail stores in a large metropolitan area. The company purchases all tires and related supplies using the company’s central purchasing department to optimize quantity discounts. The tires and supplies are received at the central warehouse and distributed to the retail stores as needed. The perpetual inventory system at the central facility maintains current inventory records, designated reorder points, and optimum order quantities for each type and size of tire and other related supplies. Beccan has a state-of-the-art computer system and uses the following five documents in its inventory control system. Retail stores requisition. The retail stores electronically submit a retail store requisition to the central warehouse when they need tires or supplies. The warehouse shipping clerk fills the orders from inventory and authorizes store deliveries. Purchase requisition. The system notifies the inventory control clerk when the quantity on hand for an item stored in the central warehouse falls below the designated reorder point and prepares a purchase requisition. The inventory control clerk adjusts the purchase requisition as needed, approves it, and forwards it to the purchasing department. Purchase order. The systems uses the data in the purchase requisition to prepare a purchase order and tentatively select a vendor based on selection criteria built into the system such as price and availability. The purchasing agent adjusts the order or vendor selection as needed, approves it, and e-mails it to the vendor. A copy of the purchase order is sent to accounts payable. Receiving report. For every purchase order, the system prepares a receiving report showing the goods ordered, but not the quantities ordered. When the goods arrive, the receiving clerk enters the date they arrived and the quantity of each item received. The completed receiving report is sent to accounts payable. Invoice. Vendors send Beccan an electronic invoice that shows the goods shipped, their prices, and the total amounts owed. The following departments are involved in Beccan’s inventory control system: Retail stores. Each store counts its inventory at the end of every quarter and reconciles it to the corporate database. On a weekly basis, each store reviews its inventory to determine what to requisition from the central warehouse. When a store runs out of inventory, or dangerously low, it can send a rush order to the warehouse. Inventory control department. Responsible for the maintenance of all perpetual inventory records, including quantity on hand, reorder point, optimum order quantity, and quantity on order for each item carried.



Warehouse department. Maintains the physical inventory of all items carried in stock. All orders from vendors are received (receiving clerk) and all distributions to retail stores are filled (shipping clerks) in this department. Purchasing department. Places all orders for items needed by the company. Accounts payable department. Maintains all open accounts with vendors and other creditors. Accounts payable reviews and reconciles the vendor invoice, purchase order, and receiving report. Any discrepancies are cleared up and the vendor invoice is paid within 10 days of the receipt of goods by electronically transferring the amount due to the vendor’s bank account. REQUIRED a. Prepare a BPD that documents Beccan’s business processes. (CMA Examination, adapted ) Answer



Employee



Activities Performed Weekly & rush orders



Retail Store



Review inventory, place order



Receive goods



Shipping Clerk



Fill orders, authorize delivery, ship goods



Warehouse Inventory Control Clerk



System generates purchase requisition



Adjust & approve purchase requisition



Purchasing Department



Warehouse Receiving Clerk



Finalize & approve system generated PO



Receive system prepared receiving report



Send PO to vendor



Receive goods, complete receiving report: date and quantity



Accounts Payable



Get receiving report & PO



Receive vendor invoice



Quarterly



Count inventory & reconcile to corporate database



Maintain & update perpetual inventory system



Send PO to vendor



From vendor



Receive vendor invoice



Reconcile P.O., receiving report, invoice



Disburse funds to vendors



Problem 3.12 Match the flowchart or DFD segments in the right column to an appropriate description in the left column. DFD’S 1. Statements are prepared and sent to customers from data contained in the accounts receivable data store. 2. A vendor sends a sales invoice to the accounts payable process. 3. The cash receipt process updates the cash receipts data store. FLOWCHARTS 4. A 2-part check is manually prepared from data on a vendor invoice. 5. The system prepares a check that is mailed to the customer. 6. A report is prepared from data stored on magnetic tape.



7. Billing data are entered into a system from a terminal and used to update both the sales order data base and the 8. Data from a cancelled paper invoice are used to update the cash disbursements file. 9. The system prepares two copies of a sales order; one copy is sent to the customer and the other is filed. 10. An accounts receivable aging report is prepared from the accounts receivable master file and the cash receipts



on in the left column. Answer



ts receivable data store.



B C A



G I F sales order data base and the customer data base.



D J



and the other is filed.



H



ster file and the cash receipts master file.



E



CASE 3-1 Dub 5 Answer Level 0 DFD for Dub 5:



Order 1.0 Credit Review



Customer



Credit file



Order Rejection Approved orders 2.0 Enter customer orders



Customer



Inventory



Open Orders



3.0 Check Inventory & Prepare Packing Slip



Warehouse



Packing Slip



4.0 Prepare Invoice



Invoice Copy



Accounting



Invoice



Invoice Customer



Level 1 DFD for Dub 5:



Customer Order Credit File



1.1



Customer Order Credit File



1.1 Check Credit



Customer Account



Approved Order



Rejected Order Customer 1.2 Check Current Order against Credit Limit



Over Credit Limit Notice



Credit Application



Rejected Order Lacking Credit Approval



1.3 Prepare Credit Application



Dub 5 Business Processing Diagram Employee



Activities Performed



Order Processing Clerk



From Customer



Receive Customer Order



Credit Debt



Customer not approved for credit: OR order exceeds credit limit



No



Yes No



Customer Approved for Credit?



Enter Customer Order; Update Customer File



Sufficient Inventory Yes



Prepare Packing Slip



Send customer credit application, notify order shipped when credit approved



Yes



Notify customer: order shipped when payment received Warehouse



Billing



Ship goods to customer Prepare customer invoices;



shipped when payment received Warehouse



Billing



Ship goods to customer



Prepare customer invoices; send copies to customer, orde processing, accounting



Accounting



Update Accounts Receivable



Warehouse



Customer



Customer



redit Application



Credit ation



Sufficient Inventory



r



No



Notify customer of insufficient inventory



Yes



r Prepare Packing Slip



File Invoice



ustomer credit ation, notify hipped when it approved



ustomer: order when payment eceived Ship goods to customer Prepare customer invoices;



Place notice in file:



when payment eceived Ship goods to customer Prepare customer invoices; send copies to customer, order processing, accounting



Update Accounts Receivable



Place notice in file: customer invoice sent