BMGT326 Final Exam Guide Ch 12 13 14 16 Chapter 12 Purchasing Process Purchase requisition internal request to acquire goods services sent by authorized person from inventory control or various internal departments to purchasing o Sent for inventory replenishment received from automated SCM processes routed by workflow for approval by requisitioning department supervisor Request for quotation request for someone to give you a quote on something you want to buy Services when you outsource work for someone to do in return for payment Information flows of the purchasing process o 1 Purchase requisition sent from inventory control to purchasing o 2 Purchase order sent to vendor inventory control receiving and accounts payable Purchase order triggers the receive goods and services part of the purchasing process o 3 Packing slip with goods received from vendor o 4 Stock notice with goods sent to warehouse o 5 Notice of goods receipt sent to accounts payable general ledger and purchasing Outputs of purchasing process o Purchase order PO request for the purchase of goods services from a vendor o Blind copy certain data ie items in shipment on a document screen is blacked out on the PO to receiving personnel so they must actually count the goods received This is a control plan covers the control goal of o Packing slip vendor document that accompanies the purchased inventory from the vendor and o Receiving report document annotated with the quantity received used to record merchandise o Acceptance report documents services received formally acknowledges the satisfactory identifies the shipment receipts completion of a service contract Inventory re order point techniques o ABC analysis ranks items in a group based on the output of items used to category inventory items according to their importance o Re order point ROP analysis each item is assigned a re order point based on its sales rate o Economic order quantity EOQ models order quantity is based on costs of ordering and carrying inventory Corporate codes of conduct addresses appropriate behavior tries to protect us from fraud Supply chain management SCM the combination of processes used to ensure the delivery of goods services to customers at the highest cost while providing highest value o Benefits Lower costs to customer Higher availability of product Higher response to customer requests Reduced inventories in supply chain Improved buyer seller relationships Smooth shipping receiving Reduced item cost Increased customer orders Reduced product defects o Potential problems Data not collected not shared across functional boundaries Information not shared between supply chain partners Inaccurate data negatively affects entire chain Over reliance on demand forecasting that may be inaccurate Competing marketing and sales objectives can lead to unrealistic forecasts Chapter 13 Accounts Payable Cash Disbursement Process Bubbles in Logical DFD o 1 Establish payable o 2 Make payment Data flows of AP CD process Triggered by the vendor invoice see above Triggered by approved voucher payment request AP master data update o 1 Invoice received from vendor o 2 A P invoice sent to general ledger o 3 Approved voucher payment request sent to cashier and to general ledger o 4 Payment sent to vendor by cashier paid voucher payment notice returned to the A P department payment notice sent to the general ledger Payments not supported by an invoice 1 Payroll 2 Rent 3 Freight bills e Payments are settled through 1 ACH network 2 Wire transfer or 3 Credit debit cards Common forms of fraud abuse o Accounts payable fraud Fake vendor records and invoices Embezzling vendor refunds o Cash disbursements fraud Check forgery escalating due to the availability of cheap color printers Fraudulent wire transfers capture online banking information Key control plans o 1 Independent validation of vendor invoices Vendor invoice is sent by the vendor to the Payment Process o 2 Three way match must match information on the following Purchase order see above Receiving document see above Vendor invoice business document electronic transmission that notifies the purchaser of an obligation to pay the vendor for goods services that were ordered by and shipped provided to the purchaser o 3 Independent authorization to make payment A P records created by an entity other than the entity that executes the payment title o 4 Reconcile bank account o Input completeness addressed by ERP systems facilitate the AP CD process by linking o 1 Purchase order o 2 Receiving report o 3 Invoice o 4 Cash disbursement Chapter 14 Accounts Payable Cash Distributions Process Human capital management manages how people are hired trained assigned motivated and retained HR self service systems allow employees to access HR manuals forms and helpful information important links make personal profiles and changes calculate retirement income enter work hours Skills inventory data stores each employee s set of relative skills updates with new training HR management process o 1 Selecting employees o 2 Evaluating employees o 3 Terminating employees Benefits of including HR data within the enterprise system o Single source for obtaining HR information o Faster data access o Minimizes data redundancy o Ensures data integrity and consistency o Facilitates data maintenance o Improves data accuracy Payroll contribution notice data flow that goes to the insurance companies Payroll reports provided to 1 Unions 2 Employees 3 Government NOT customers Segregation of duties company should segregate 1 HR 2 Payroll 3 A P 4 Cashier Job time records provide information for distributing labor charges to jobs departments or other accounts Ghost employees payroll related fraud involving non existent employees Expense reimbursement fraud includes o Overstating expenses o Submitting false receipts o Claiming personal expenses as business expenses o Submitting the same expense multiple times Reconciling hours comparing the time attendance record total hours of each worker with the hours reflected on the job time records activities performed on the job Payroll service bureau processes a company s payroll in return for a fee Imprest payroll bank account fund that is reimbursed for the exact amount of the disbursements made from the fund rather than being supplemented for expected amounts in advance as with the payroll clearing account Chapter 16 General Ledger Business Reporting Process General ledger GL process comprises o Accumulating