Question

Big Fun Toys is a retailer of children’s toys. The accounts payable department is located at company headquarters in Boston, MA. The department consists of two full-time clerks and one supervisor. They are responsible for processing and paying approximately 2,000 checks each month. The accounts payable process begins with receipt of a purchase order from the purchasing department. The purchase order is held until a receiving report and the vendor’s invoice have been forwarded to accounts payable.

At that time, the purchase order, receiving report, and invoice are matched together by an accounts payable clerk, and payment and journal entry information are input to the computer. Payment dates are designated in the input, and these are based on vendor payment terms. Company policy is to take advantage of any cash discounts offered. If there are any discrepancies among the purchase order, receiving report, and invoice, they are given to the supervisor for resolution. After resolving the discrepancies, the supervisor returns the documents to the appropriate clerk for processing. Once documents are matched and payment information is input, the documents are stapled together and filed in a temporary file folder by payment date until checks are issued.

When checks are issued, a copy of the check is used as a voucher cover and is affixed to the supporting documentation from the temporary file. The entire voucher is then defaced to avoid duplicate payments. In addition to the check and check copy, other outputs of the computerized accounts payable system are a check register, vendor master list, accrual of open invoices, and weekly cash requirements forecast.

*- Draw a context diagram and data flow diagram for the company’s accounts payable process using the symbols

Answer 1

Big Fun Toys is a retailer of children's logs, as the department has two full time clocks and one supervisor besponsible in processing and paying 2,000 checks each month. The outputs of the computecized accounts payable system are a check begister, vendor master list, accutal open volces, & weekly cash requirements forecast. * The below diagram is the company's accounts payable process: Receipt of purchase order from purchase department Receipt of vendos involce & receiving beport matching the purchase order with receiving receipt & vendos involce Discrepancy or data not matched beterining to supervisor Data matchede Input of journal entry os bill booking in computer of system solving issues from superisot retuoning again to processing payment dates designated in system as per payment terms Review & control for checking double payments of wrong entries Tccuing checks with covets vocher & suppooting documents on payment dates finding any cash discounts as pes contracts with wendogs & filling fill the payment dates

Page-2 flow order Dragram from purchase Receipt of the purchase department. Receipt of receiving report (goods, beelpt note) & vendoo invoice. information matching the of purchase data of poice, quantity, sates and other sequrred order, beceiving report & vendoo Prvoice. Journal entry information are input in computes, It is nothing but booking. payment dates are designated as inputs & these are based on verdoo payments. company policy is to take advantage of any cash discounts offered, as per contract with vendor we need to find out, it may oo may not be applicable for all vendoos. If there are any discrepancies among the prochase and invoice, they are given to the supervisor order, receiving repool, for resolution. return the documents to Aftere besolving the appropriate discrepancies, the supervisor clock for processing

Page 3 once are documents are matched a stapled together a filed payment folder by information is payment date input, the documents until checks are issued. When cover checks and is are issued affixed to a copy of the check is used the suppooling documentation as a voucher from temporary file. final stage is ravie & control. The entire vocher is then defaced to avoid duplicate payments. In addition to the check & check copy, other master list, accural of open invoices, & weekly cash requirements forecast