Reference no: EM131579617

Need help with the bpmn model - There should be 3 models based on interview:

1) sales process ( this is broken down into two pools ) customer one box company second box . the second box has internet wholesale retail and accounting.

2) purchase and payment ( same as above)

3) financial statement ( this summaries the process and how it relates to customer.

Need customer on the top and the other pool on the bottom i have attached the sample of what it should look like. i will not pay if:

1) customer pool is not on top

2) if bizagi isn't used

3) if I can't edit it

4) if there isn't 3 separate bpmn model

Chad has been with Josh (Mr. Z) since the beginning. He used to work in the Bend store while he finished school, but when Mr. Z needed someone to do the accounting, Chad volunteered. Chad's job is to pay the bills, update the inventory records, put together the financial records, make sure Z Cheddrpays its taxes on time, and keep Mr. Z informed about company performance. Chad gets the sales and promotions information from the stores via the van drivers. He gets transfers, wholesale and internet sales information from shipping and receiving. That way, he can maintain up to date inventory counts and record sales daily. Z Cheddr conducts physical inventory counts each quarter, and Chad uses those counts to update or correct the electronic inventory records. Chad uses average inventory cost (average cost in the inventory worksheet) to value transfers, promotions, and ending inventory. The beginning inventory is valued at the average cost for the previous quarter (beginning cost in the inventory worksheet).

Chad also pays all the bills. His clerk assembles the invoices and recurring payment information for both inventory purchases and administrative purchases and prepares the checks. The administrative purchases include recurring payments for rent of Z Cheddr retail stores, all of which are rented through one broker, Oregon Commercial Real Estate. Then Chad reviews the support material, corrects any errors, and signs the checks.

Chad also gets the timesheets from each store at the end of the month and with his assistant enters that payroll information on the payroll services' website. Each employee then receives a monthly check from the payroll service. Chad transfers money from the main operating account to the payroll account to cover the payroll each month. Chad sends checks for federal and state payroll taxes, social security (FICA) and Medicare (MC) withholding, including the matching employer amounts for FICA and MC, to appropriate tax authorities after the end of each quarter. Oregon has no sales tax, so he doesn't have to make those tax payments.

Chad and his assistant are also responsible for bank reconciliations each month. They use the deposit slips received from the stores to confirm deposits. Additionally, deposits include the internet credit card receipts and payments from the wholesale customers. Z Cheddr uses their bank's merchant services to process customers' credit card payments. Credit card payment information is transferred electronically from the website to the bank's site. The bank takes their cut, which can range from 3 to 8% of the sale amounts, depending on the credit card the customer uses. It then electronically deposits the rest of the payment in the Z Cheddr account and sends an email to Chad to confirm the deposit. Of course, Chad uses the Z Cheddr checkbook (and any transfer vouchers for transfers to the payroll account) to confirm payments.

Lately, Mr. Z has been more and more frustrated because Chad is too busy to give him any timely information on how the business is really doing. Chad barely has time to put together quarterly financials, let alone monthly comparisons to the budget. He is stretched way too thin and needs a better accounting system to take some of the load.

Summary of interview with Judy Collins, Shipping and Receiving clerk at Central Warehouse:

Judy's job is not easy, although she has help from several part time clerks. She records receipts for the incoming shipments from our cheese and wine suppliers in Oregon. She checks each shipment for damage and returns damaged items to the suppliers. She updates the invoices/delivery slips and sends those to Bob (the buyer), so Bob knows what has been received and can check that against what he ordered. Judy also updates the inventory records based on the items received and accepted. She and her clerks then store the items in the warehouse.

Each day, Judy also prints the list of internet orders and pulls those items from inventory. She packs the products for delivery sets them aside for pickup by UPS. She also updates the inventory records. Then, she sends the list of internet orders to Chad, so he can record sales information. UPS handles all the outgoing shipments for our internet sales. UPS bills Z Cheddr monthly for shipping costs, but so far, the flat rate $9.95 shipping charges that the customers pay have covered the shipping costs.

Additionally, she packs the Z Cheddr vans that deliver to our ten stores around the state. Sometimes, she even drives the vans. She prepares the transfer lists for each store, and a clerk at the store confirms the deliveries. Then, she or one of the other van drivers brings the transfer sheets, along with any promotion forms and deposit slips sent from the stores, back to Chad, so he can update the inventory and accounting records. She also uses the company credit card to get gasoline for the vans or pay for repairs and maintenance. She sends the credit card slips to Chad so he can confirm the bills from the credit card company.

Z Cheddr also sells and delivers to small groceries and wine shops around the state. Judy handles those wholesale sales. She takes orders from the wholesale customers over the phone, and then she packs the vans for delivery to those customers. Judy includes an invoice with the delivery and the wholesale customers typically pay at the end of the month.

Summary of interview with Bobby Darin, Van Driver at Central Warehouse:

Bobby is on the road most of the week. He helps Judy pack his van and then hits the road to deliver cheese and wine to the retail stores as well as to wholesale customers. He helps prepare the transfer list for the transfers to the retail stores. Then, he gets the manager or an employee at the retail store to confirm the transfer. When he gets back to the warehouse, he gives all the transfer forms to Chad (or puts them in his mailbox when he is not available).

Bobby also delivers to the wholesale customers. He usually combines trips to avoid unnecessary driving. The wholesale customers confirm receipt on a copy of the delivery document, and he gives them an invoice at that time. He brings those confirmed delivery documents back to the warehouse and again gives them to Chad, so Chad can record wholesale sales.

Summary of Interview with Woody Guthrie, Clerk and Accounting Assistant to Chad Mitchell:

The following interview was recently conducted to provide more information on aspects of Z Cheddr financial reporting processes. Woody usually assembles the end-of-quarter data necessary to prepare financial statements for each store and for Z Cheddr overall. He understands that you will be performing this task (see note below), but he wanted to provide you some background on the process that he has used in the past.

Income statement (IS)

Sales

1. First, Woody takes the sales item transaction data (for retail, wholesale, and internet sales) and ensures that all transactions occur within the quarter. He then checks the Item Amount extension to make sure that sales amounts are calculated correctly. The result is the Sales Detail for Quarter.

2. Using the Sales Detail for Quarter, he then summarizes sales and shipping costs for each store. He calculates total revenue by adding sales and shipping costs. First, however, he needs to convert blank cells (null values) for shipping costs to zeroes[1], since the only store with shipping costs is the warehouse. He calls this result the IS Stores Revenue.

Cost of Goods Sold -

1. Calculating cost of goods is the hardest part of the income statement. In all cases, Woody limits the transactions to the quarter.

a. Beginning inventory, valued using the physical inventory count on Dec 31 times the beginning cost in the Inventory table.

b. Purchases, valued at actual cost.

c. Transfers Out, valued by multiplying the quantity transferred times the average cost figure in the Inventory table.

d. Transfers In, valued by multiplying the quantity transferred times the average cost figure in the Inventory table.

e. Promotions, valued by multiplying the promotion quantity times the average cost figure in the Inventory table.

f. Ending inventory, valued using the physical inventory count on Dec 31 times the average cost in the Inventory table.

2. Then, he summarizes the values by store. Join the Stores table with each query identified above. Change the JOIN properties so that the resulting query shows all Stores. He changes null values (blanks) to zeroes as described in footnote 1. He makes sure that all summary-by-store queries show one row for each of the eleven stores.

3. He calculates goods available for sale at each store as beginning inventory plus purchases minus transfers out plus transfers in minus promotions.

4. Then, he subtracts ending inventory to compute cost of goods sold for each store and calls this query IS Stores COGS.

Pay Expense -

1. Woody first prepares a query to limit the payroll transactions to the quarter and calculates the pay expense for each transaction. Pay expense includes gross pay plus employer contributions to FICA and MC. He calls this result Pay Expense Detail for Quarter.

2. Then, he summarizes the Pay Expense Detail for each store. He calls this result IS Stores Pay Expense.

General and administrative expenses -

1. Woody first limits the miscellaneous expenses (rent, electricity, phones, and credit card bills for example) in the Purchases Admin table to those incurred during the quarter. These purchases are recorded when they are incurred, so there are no prepaid amounts. Woody calls this result Admin Expense Detail.

2. He then summarizes the administrative expenses by store. He calls this result IS Stores Admin Expense.

Promotion Expenses -

1. Woody uses the information on promotion expenses subtracted from cost of goods sold as the promotion expense amount.

Credit Card Fees -

1. Finally, Woody calculate the expense related to credit card fees. This expense arises from the charges assessed by the credit card processor and appears as the difference between sales plus shipping amounts and the corresponding cash receipts.

2. Woody calculates credit card fees related to each deposit and that amount is shown in the Cash Receipts table. So, for the end of quarter processing, he first limits cash receipts to the first quarter.

3. Next, he summarizes cash receipts by store. He calls this result IS Store Credit Card Expense.

Van and Store Depreciation -

1. Woody divides the annual depreciation figures for each van by 4 to calculate the quarterly depreciation expense for the vans. He does the same for the owned store.

2. Then, he joins the Store table and the depreciation calculation. He changes the JOIN properties to show all stores and converts null values to zeroes for all stores. He names these two queries IS Stores Van Depreciation and IS Stores Store Depreciation.

Overall Income Statement -

1. Once Woody completes the income statement for the stores, he then summarizes the amounts in that query to show the overall income statement for Z Cheddr. He calls this IS Z Cheddr Overall.

Balance Sheet (BS) -

Woody says that the balance sheet is easier to prepare, since he doesn't need to calculate balance sheets for individual stores. He just prepares one overall balance sheet.

Assets -

• Cash. To compute the ending cash balance, Woody first summarizes the cash balance beginning, the cash receipts, and the cash disbursements (cash disbursements for inventory purchases, cash disbursements for miscellaneous expenses, and payroll) in separate queries. Each query should have one row showing only the total. Then, the ending cash balance is calculated as the beginning cash balance plus cash receipts less cash disbursements.
• Accounts Receivable. Woody says that AR amounts only arise when the wholesale customers' payments are delayed. He first summarizes wholesale sales. He then summarizes cash receipts for wholesale sales. Finally, he creates a query to calculate AR as the difference between wholesale sales and wholesale cash receipts.
• Inventory. Woody uses the physical count of inventory at the end of quarter as the basis for the ending inventory value. Inventory is valued at average cost as shown in the Inventory table.
• Stores and Vans. Woody uses the book values of the owned store and the vans. He computes accumulated depreciation including the depreciation for the current quarter. Z Cheddr records a full year's depreciation in the year of acquisition, so accumulated depreciation is the number of years since acquisition plus one quarter times the annual depreciation amount.

Liabilities -

• Trade accounts payable. Woody calculates trade accounts payable by first summarizing purchases of inventory in the first quarter, then summarizing cash disbursements for inventory in the first quarter, and finally subtracting cash disbursements from purchases.
• Administrative accounts payable. Woody uses the same process to calculate administrative accounts payable.
• Taxes and withholdings payable. Finally, he calculates payroll taxes payable by summarizing employer and employee FICA and MC, federal withholding, and state withholding. He sums those six items to determine taxes payable.
• Z Cheddr has no mortgages or notes outstanding, so Woody does not need to calculate long-term liabilities.

Z Equity. Mr. Z owns all the stock and he originally contributed $500,000 when he started the business. He hasn't taken any distributions. Woody repots Stockholders' Equity value as contributed capital plus retained earnings and calculates retained earnings as assets minus liabilities minus contributed capital.

[1] Use the combination of the Val and NZ functions to change null values to zeroes that can be formatted as currency, e.g., Val(NZ([Shipping Cost per Order], 0)).

Attachment:- Assignment.rar