Reference no: EM132300332
While you may use Microsoft Visio for creating your process map, note that all of the process mapping elements are available as Shapes in Microsoft Word.
Develop a process map for the Accounts Payable process described below:
The Accounts Payable process at FrizzBusters Beauty Products begins when one or more individuals in the various departments of the organization ask to purchase certain products or equipment. Only one department is chosen as the “owner” of the purchase request if the request involves individuals across more than one department. The manager of the owning department then approves the request so that the buyers in the Purchasing department may purchase the requested materials or products for the specific department(s) initiating the request.
Once the necessary products or equipment have been bought and a paper invoice has been generated, the paper invoice is sent to the Accounts Payable department for payment. The Accounts Payable tasks are divided between two individuals. One clerk handles paper invoices for companies with names that start with the letters A through M while the other clerk handles paper invoices for companies with names that begin with N through Z. This has sometimes resulted in an unbalanced amount of work between the two clerks in the past. Each Accounts Payable clerk opens each paper invoice and sorts them according to the department responsible for the payment. All invoices that involve overhead, and therefore do not get directed to a specific department (such as utility and shipping invoices), are coded by the Accounts Payable clerk and entered into the Accounting system for payment. All other paper invoices are sent by intercompany mail to their respective departments. Paper invoices for amounts under $1,000 are forwarded to the individual who requested the purchase while paper invoices over $1,000 are sent directly to the manager in charge of the specific department where the request originated, i.e. the “owning” department. Once the originator or department manager approves the paper invoice, it is sent back to the Accounts Payable clerk who enters it into the Accounting system.
At the end of each week the Accounts Payable clerk selects all approved paper invoices that have been entered into the Accounting system and prints them as a list for the Accounting Manager who marks the list to show which invoices are to be paid during the current check cycle. The Accounting Manager gives the annotated invoice list back to the Accounts Payable clerk who reports to the company Accountant to retrieve a special disk that allows access to the check-printing system. The disk must be kept under lock and key which is the responsibility of the company Accountant. This has also presented problems in the past as the company Accountant is frequently on travels to other company facilities. The Accounts Payable clerk uses the disk to connect to the check-printing system and print paper checks to be mailed to the vendors, along with a copy of the corresponding invoice. The Accounts Payable clerk must keep written records of both the check numbers and the dollar amount of each check that is printed and mailed. Finally, the Accounting Manager double-checks the weekly check run for errors and signs off on the check number and dollar amount of each check after each check run.
Once you have created a process map for the Accounts Payable process, analyze the various steps in your process map to determine whether the step adds real (external) value, business (internal) value, or no value. Using the knowledge that you have gained thus far regarding ERP systems, develop a new and improved process map for the Accounts Payable process and discuss your improvements.