Reference no: EM132958344

Baby Biker Sdn Bhd is the motorcycle manufacturing companies, that have operated since 2015 in Shah Alam Selangor. The company currently has 100 people employees and involves in produces custom motorcycle. Each motorcycle is tailored to the riders based on their specifications. The demand for custom biker has grown tremendously in the recent years. The company currently in the process of migrating to the latest cash receipt system to handle the payment received from the customer. Following describe the procedure of the existing cash receipt system in the company that need to be improved.

• The cash receipt system processed in Baby Biker's mail room along with all other mail received by the company. Then, the mail clerk selects and open customer remittance envelopes. She continues with reviews the cheques and remittance advices received. Next the clerk prepares three copies of a remittance list.

• The first copy of the remittance list is sent together with the cheque to the cash receipt department. Once the clerk in the department had received the remittance list and cheque, he then reconciles both and updates in the cash receipts journal from his computer. Subsequently, he prints out two copies of the deposit slips. The deposit slip, as well as the cheque will be sent to the bank.

• The second copy of the remittance list attach with the remittance advice is sent out to the Billing department. The clerk reconciles these documents and updates the account receivable subsidiary account to reflect the payment received. Lastly, the third remittance list is sent to the general ledger department, which used to update transaction amount received from billing department in the general ledger file.

Problem 1: Illustrate Data flow Diagram (DFD) for the Cash Receipts System of Baby Bikers Sdn Bhd.