You have conducted several interviews with departmentsupervisors who oversee the acquisition/payment process. Thefollowing is a summary of your discussions. Use this narrative toprepare a system flowchart to depict Plume’s acquisition/paymentsystem.
checks are issued by the cash disbursements department. When thepayment
authorization is received from accounts payable, the information isentered and used to
update the accounts payable and cash disbursements master files. Acheck is then
generated (with 1 copy). A copy of the check is filed with thepayment authorization by
date. The check is then forwarded to the Treasurer. Additionally, aweekly cash
disbursements report is generated and is forwarded to thecontroller department.
The Treasurer verifies the check information by looking up theauthorization
information in the accounts payable system. If the checkinformation is correct, the
treasurer signs the check and sends it to the vendor. If there areany discrepancies, the
check is forwarded to the Controller.
