Reference no: EM132297511

You have conducted several interviews with department supervisors who oversee the acquisition/payment process. The following is a summary of your discussions.

Use this narrative to prepare a system flowchart to depict Plume’s acquisition/payment system.

Accounts payable is responsible for authorizing and processing invoices each month. The accounts payable process begins with the receipt of a purchase order from the purchasing department. The purchase order is filed temporarily until the receiving report is forwarded from the receiving department and the invoice is received from the vendor, at which time one of the accounts payable clerks matches the receiving report and the invoice to the purchase order. If there are discrepancies, the purchase order, receiving report, and invoice are sent to the purchasing manager to be resolved. If there are no discrepancies upon matching these documents, the clerk enters the invoice information into the accounts payable system to update the accounts payable master file. A payment authorization is generated from the system and sent to the cash disbursements department. A copy of the payment authorization is filed alphabetically along with the supporting documents (purchase order, receiving report, and invoice).