1 IM341 -Gilbert Glass, Inc. Manual Process1 Flowchart Teaching Notes Each area of responsibility has its own column, labeled, with lines separating columns. Flow should read from top to bottom, left to right. Area of Responsibility 1 – Sales Department (Paragraph 3) – Action begins via contact from customer (shown as terminal starting point) Decision Point (determines input path): Order received over phone or via fax Decision Point Path 1 – Received as fax, so input shown as paper customer order Decision Point Path 2 – Oral order over phone, so manual process of writing it down to paper, then output is paper copy of order Input: Paper customer orders from customers, credit data from credit records Process2: Sales order processing including credit checks Decision Point (that determines output): Order approval or denial Decision Point Path 1 – When approved, sales order copy 2 to billing, sales order copies 3 and 4 to the inventory warehouse, sales order copy 1 and customer order filed in paper file by date, Decision Point Path 2 – When declined, Paper rejection letter and customer order document sent to the customer. Area of Responsibility 2 – Warehousing Department (Paragraph 4) Action begins when sales order copies 3 and 4 received from sales (so show as input using on page or off page connector) Process 1: Prepare the packing slip Input(s) for Process 1: Sales order copies 3 and 4 from sales Output(s) from Process 1: Packing slip and Sales order copies 3 and 4 to next process Process 2: Updates the inventory records Input(s) for Process 2: Packing slip and Sales order copies 3 and 4 from previous process Output(s) from Process 2: Sales order copy 4 and packing slip to the shipping department, Sales order copy 3 to paper file organized by date, update to inventory file Area of Responsibility 3 – Shipping Department (Paragraph 5) Action begins when sales order copy 4 and packing slip received from warehousing (so show as input using on page or off page connector) Process: Prepare two copies of the shipping notice and a bill of lading Input(s): Sales order copy 4 and packing slip from warehousing Output(s): Bill of lading, Shipping notice copy 1, and packing slip to customer, Sales order copy 4 and Shipping notice copy 2 filed in paper file by date 1 Adapted from Hall, James A. (2000) Information Systems Auditing and Assurance.2 Area of Responsibility 4 – Billing Department (Paragraph 6) Action begins when Sales order copy 2 received from sales (so show as input using on page or off page connector) Process 1: Create two part sales invoice and a remittance advice Input(s) for Process 1: Sales order copy 2 from sales, Prices from a master price list Output(s) from Process 1: Sales order copy 2 to paper file sorted by name, Sales invoice copy 1 and Remittance advice to customer, sales invoice copy 2 into next process Process 2: Update the sales journal, the inventory subsidiary ledger, and the accounts receivable ledger Input(s) for Process 2: Sales invoice copy 2 from previous process Output(s) from Process 2: Update to sales journal, update to inventory subsidiary ledger, update to the accounts receivable ledger, sales invoice copy 2 added to paper file that contains sales order copy 2 Area of Responsibility 5 – Mailroom (Paragraph 7) Action begins via contact from customer (shown as terminal starting point) Process: Sort the checks by customer and record the remittances Input(s): Check with remittance advice from customer Output(s): Daily remittance list to file by date, checks and remittance advices to cashier Area of Responsibility 6 – Cashier’s Office (Paragraph 7) Action begins when sorted checks and remittance advices received from mailroom (so show as input using on page or off page connector) Process: Record remittances in the cash receipts journal and the customer’s account in the accounts receivable ledger and create deposit Input(s): Sorted checks and remittance advices from mailroom Output(s): Update to the cash receipts journal, update to the accounts receivable ledger, checks to the bank for deposit, remittance advices to a (paper) file, organized by date (Important note – keep them two months, then discard