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 purchasingo Sent for inventory replenishment, received from automated SCM processes, routed by workflow forapproval 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 purchasingo 2. Purchase order sent to vendor, inventory control, receiving, and accounts payable Purchase order triggers the ‘receive goods and services’ part of the purchasing processo 3. Packing slip (with goods) received from vendoro 4. Stock notice (with goods) sent to warehouseo 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 vendoro 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 identifies the shipmento Receiving report: document annotated with the quantity received, used to record merchandise receiptso Acceptance report: documents services received, formally acknowledges the satisfactory 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 importanceo Re-order point (ROP) analysis: each item is assigned a re-order point based on its sales rateo 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 valueo 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 defectso 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 forecastsChapter 13: Accounts Payable/Cash Disbursement Process- Bubbles in Logical DFD:o 1. Establish payable Triggered by the vendor invoice (see above)o 2. Make payment Triggered by approved voucher (payment request) / AP master data update ?- Data flows of AP/CD process:o 1. Invoice received from vendoro 2. A/P invoice sent to general ledgero 3. Approved voucher (payment request) sent to cashier and to general ledgero 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 refundso 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 Processo 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 ofan obligation to pay the vendor for goods/services that were ordered by and shipped/provided to the purchasero 3. Independent authorization to make payment: A/P records created by an entity other than theentity that executes the payment – title ***o 4. Reconcile bank accounto Input completeness addressed by **?- ERP systems facilitate the AP/CD process by linking:o 1. Purchase ordero 2. Receiving reporto 3. Invoiceo 4. Cash disbursementChapter 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 employeeso 2. Evaluating employeeso 3. Terminating employees- Benefits of including HR data within the enterprise system:o Single source for obtaining HR informationo Faster data accesso Minimizes data redundancyo Ensures data integrity and consistencyo Facilitates data maintenanceo 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 expenseso Submitting false receiptso Claiming personal expenses as business expenseso 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