Reference no: EM132923177
Question - SIA COMPANY has decided to document and analyze the accounts payable process at Accentaure so the transition to a computerized system will be easier. He also hopes to improve any weaknesses he discovers in the system. In the following narrative, SIA explains what happens at Accentaure:
Before Accentaure 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 alphabetical file is kept for each type of document. The purchase orders that are forwarded from purchasing are stored in a purchase order file. The receiving reports are stored in a receiving report file. When vendor invoices are received, the accounts payable clerk records the amount due in the accounts payable file and files the invoices in the vendor invoice file.
Accentaure pays all accounts within 10 days to take advantage of early-payment discounts. When it is time to pay a bill, the accounts payable clerk retrieves the vendor invoice, attaches the purchase order and the receiving report, and forwards the matched documents to SIA COMPANY.
SIA reviews the documents to ensure they are complete, prepares a two-part check, forwards all the documents to Daniel Fransiskus Dominguez (DFD), and records the check in the cash disbursements journal.
Daniel Fransiskus Dominguez (Sir DFD) reviews the documents to ensure that they are valid payables and signs the checks. He forwards the check to the vendor and returns the documents and the check copy to the accounts payable clerk. The clerk files the documents alphabetically in a paid invoice file. At the end of every month, the accounts payable clerk uses the accounts payable ledger to prepare an accounts payable report that is forwarded to Daniel Fransiskus Dominguez (sir DFD). After he is finished with the report, Daniel Fransiskus Dominguez (sir DFD) files it chronologically.
Instruction - Based on the above narration, make a context diagram (15%) and Level 0 Data Flow Diagram to document accounts payable processing at Accentaure.