Reference no: EM13343666

FiFi, the manager of the Shining Shoes, Inc., has decided to analyze the Accounts Payable procedures at the Shining Shoes. The purpose is to document how the present system works so the transition to a computerized system will be easier. She also hopes to improve any weaknesses she discovers in the system. In the following narrative, Followings are procedures relating to accounts payable:

Before the Shining Shoes pays a vendor invoice, the invoice must be matched against the purchase order used to request the goods and the receiving report that the receiving department prepares. Because all three of these documents enter the accounts payable department at different times, a separate numerical file is kept for each type of document. The purchase orders that are forwarded from purchasing department, and the accounts payable clerk, Ella, files the document by purchase order number in the accounts payable folder. When the receiving department sends receiving report to the accounts payable department, Ella stores them, by date, in the receiving report file. When vendor invoices are received, Ella files the invoices by date, in the vendor invoice file.

Shining Shoes' policy is to make sure all accounts are paid within 15 days to take advantage of the early-payment discounts that suppliers offer. When it comes time to pay a particular invoice, Ella retrieves and matches the vendor invoice, the purchase order, and the receiving report. Ella records the amount due in the accounts payable ledger and then forwards the three documents (supporting documents) to the controller, Cinder.

Cinder reviews the documents to ensure that they are complete and accurate. If there is any error, the documents are then sent back to Ella for corrections. Using the supporting document, Cinder prepares a two-part check. She then records the check amount in the cash disbursement journal. The checks and the supporting documents are forwarded to the manager, FiFi, for her approval and signature.

FiFi reviews the documents to ensure that they are valid payables and then signs the checks. She sends the check to the vendor and returns the documents and the second copy of the check to accounts payable department, where, Ella files the documents by date in a paid invoice file.

At the end of every month, Ella uses information from the accounts payable ledger to prepare an accounts payable report. This report is forwarded to Bandit for her review. After she is finished with the report, FiFi files it chronologically.

Requirement:

1. Prepare Entities/Activities table. (Name the worksheet as TABLE)

2. In a different worksheet draw document flowchart for the accounts payable procedures described above. Note: use same-page connector where it is appropriate. (Name the worksheet as FLOWCHART)

3. Use SET PRINT AREA and setup/adjust flowchart print area. DO NOT use scaling to force the print flowchart into ONE page, i.e., use off-page connector where it is needed.

4. Use your name as header (center) and J-number (right-justified).

5. Save the file as DOCUMENTATION and submit to Sakai before due date/time.