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The golf course manager sends out the member's statement and collects the payments. The cash receipts system begins when the golf course returns the remittance advice and the check for each member's purchases. The golf course is sent 10% of the total lemonade sales as a service charge and rent for the lemonade stand. The mail clerk (Abby) receives the checks and remittance advices. These documents are reconciled and used to prepare two copies of a remittance list. A copy of the remittance list is sent to the controller. The remaining copy is sent to treasury (Abby) with the checks and the remittance advices.
The treasury clerk (Abby) uses the copy of the remittance list and the remittance advices to update cash received and accounts receivable. The remittance list and the remittance advices are filed. The treasury clerk also prepares a deposit slip. The treasury clerk takes the deposit slip to the bank with the checks for deposit. The deposit slip receipt from the bank is filed.
Requirements
1 Create a list of activities for the Lemonade stand including a column for activity description, process type (e.g., input, process/maintenance, output), and data involved in each activity.
2 Develop an Entity Relationship (ER) diagram with cardinalities based on the procedures described in the narrative and requirement 1 above.
3 Prepare data flow diagrams (Context and Level 0) of the systems described.
4 Create logical flowcharts of the Sales Order and Cash Receipts Processes.
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