Reference no: EM131289402
Jenny Smith owns Classic Photography Inc., a company that restores photos for its clients and creates electronic images from the restored photos. The company also frames restored photos and creates sophisticated custom artworks. Artworks include materials such as glass and frames that are purchased from local suppliers. In addition to supplies for displays, the company purchases office supplies and packaging materials from several vendors.
Classic Photography uses an off-the-shelf accounting software package to prepare internal documents and reports. As employees note a need for supplies and materials, they send an email to
Jenny, who acts as the office manager and company accountant. Either Jenny or her assistant Donna enters order information into the accounting system and creates a purchase order that is faxed to the supplier. Jenny or Donna may also call the supplier if there is something special about the product ordered.
When ordered materials and supplies arrive, either Jenny or Donna checks the goods received against a copy of the purchase order and enters the new inventory into the computer system. Jenny pays bills twice each month, on the first and the fifteenth. She checks the computer system for invoices outstanding and verifies that the goods have been received. She then enters any information needed to produce printed checks from the accounting system. Classic Photography mails checks and printed remittance advices (portions of the vendor bill to be returned) to suppliers.
Requirements
1. Create a systems flow chart for the purchase and payment processes.
2. Comment on the value, if any, that a systems flow chart describing this process would have to Jenny.
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