Sara Smith, the Accounting Manager at ABC Company, has decided to document activities related to the Cash Collections Pr
Posted: Fri Jul 08, 2022 6:36 am
Sara Smith, the Accounting Manager at ABC Company, has decidedto document activities related to the Cash CollectionsProcess at ABC Company so that future changes to theaccounting information system will be efficient andeffective. She also hopes to make improvements on weaknessesdiscovered in the system. Sara drafted the following narrative,explaining the process:
Every day, customer payments are received in the mail. In the afternoon, the Treasurer gets the mail. The mailincludes customer payment Checks and the associated DisbursementVouchers. The Treasurer endorses all Checks "FOR DEPOSITONLY", and prepares two deposit slips, an original and a copy. The Treasurer gives the Checks and the copy of the DepositSlip to the Executive Assistant, and the Treasurer sends theDisbursement Vouchers to the Accounts Receivable Clerk.
The Executive Assistant uses a scanner to scan each Checkfor remote deposit in the Remote Deposit Program for XYZ Bank. Then the Executive Assistant prints a Deposit Receipt fromXYZ Bank's Remote Deposit Program. The Executive Assistantfiles the Checks and the copy of the Deposit Slip in the DepositedChecks File, sorted by date, and gives the Deposit Receipt to theTreasurer, who compares it to the original Deposit Slip and filesthe Deposit Receipt and the original Deposit Slip in the RemoteDeposits File, sorted by date.
The Accounts Receivables Clerk uses the data from theDisbursement Vouchers to update the Accounts Receivable Database byentering the data into the Accounts Receivable Program. TheAccounts Receivable clerk then files the Disbursement Vouchers in aCustomer Payments file, sorted alphabetically by customer, then bydate.
Prepare a document flowchart to document the aboveprocess at ABC Company. Submit an Excel workbook as an Excelfile.
Every day, customer payments are received in the mail. In the afternoon, the Treasurer gets the mail. The mailincludes customer payment Checks and the associated DisbursementVouchers. The Treasurer endorses all Checks "FOR DEPOSITONLY", and prepares two deposit slips, an original and a copy. The Treasurer gives the Checks and the copy of the DepositSlip to the Executive Assistant, and the Treasurer sends theDisbursement Vouchers to the Accounts Receivable Clerk.
The Executive Assistant uses a scanner to scan each Checkfor remote deposit in the Remote Deposit Program for XYZ Bank. Then the Executive Assistant prints a Deposit Receipt fromXYZ Bank's Remote Deposit Program. The Executive Assistantfiles the Checks and the copy of the Deposit Slip in the DepositedChecks File, sorted by date, and gives the Deposit Receipt to theTreasurer, who compares it to the original Deposit Slip and filesthe Deposit Receipt and the original Deposit Slip in the RemoteDeposits File, sorted by date.
The Accounts Receivables Clerk uses the data from theDisbursement Vouchers to update the Accounts Receivable Database byentering the data into the Accounts Receivable Program. TheAccounts Receivable clerk then files the Disbursement Vouchers in aCustomer Payments file, sorted alphabetically by customer, then bydate.
Prepare a document flowchart to document the aboveprocess at ABC Company. Submit an Excel workbook as an Excelfile.