Purchase System Data Flow Diagram
Vendor
Sends the invoice
Inventory
Control Dept.
Updates & monitors
inventory levels
Inventory control PR 2
files
PR1
A/R
Records liability to
Prepare PR purchase journal
PO 4
Purchasing A/P pending file
Department
Update the A/P
subsidiary ledger
PO 2 & PO 3 PO 1
Prepare PO Open A/P file
Receiving SV
Department Prints journal voucher GL
Department
Inspect, count &
reconcile the products Update inventory and
w/ packing slip A/P control accounts
Store room General Ledger
RR1
Prepares receiving report
RR3
Receiving
Department
Fixed Assets Data Flow Diagram
User Department Fixed Asset Fixed Asset subsidiary
Sends packing Department Ledger
slip
Purchasing Department
Prepares PR Files
Prepares acct.
summary
Purchasing
Department
Closed A/P file
Creates PO
Updates A/P
subsidiary ledger
Vendor A/P
Deliver asset Sends invoice
together w/
packing slip
A/P subsidiary ledger
Open A/P file Identify due
payments
Updates cash, A/P, Fixed
Check register
Asset control acts.
Prepare CD
voucher
CD GL FILES
Prepares a CD voucher
Department GL Department
vendor check
Cash Disbursements Data Flow Diagram (Purchase System)
Open A/P file
Identify items to
be paid
Closed A/P file
Updates the A/P
subs. ledger
Prepare cash CD GL Department
disbursement Department
voucher
Prints a vendor Update cash &
check A/P control accts.
Vendor General Ledger
Check Register
Vendor User Dept. Purchasing Dept. A/P Dept Cash Disbursement Dept. Fixed Asset Dept. General Ledger Dept.
Invoice PR PR Invoice E D
B B CD
Voucher
Packing slip Cd Voucher
Accesse
Updat
s the PC
e A/P
Create
Packing ship Packing subs.
s PO Update Fixed Acct.
ship ledger
the Asset Summary
Vendor Check records subs.
check register ledger
PO Invoice
C
Vendor Prepares an Updates
Clerk
check acct. cash, A/P,
Open
summary fixed assets
A A/P
control
file A
accounts
CD
Reviews Voucher D
A/P
the open
Clerk Cd Voucher
A/P file D
Updat
Acct.
es A/P
CD Summary
subs.
Voucher
ledger
Invoice
Closed
A/P file Fixed Assets System Flowchart
Vendor Inventory Control Dept Receiving Dept. A/P Department Cash Disbursement Dept General Ledger Dept
PO PR PR C B
PO
CD Voucher Journal
PR PR A
PO Voucher
RR
Packing Slip
Prepare
Invoice
s PO Prints a
Record the
vendor
Process the purchase A/P
checks
order journal subs.
Inspects &
PO ledger
counts the Update
products inventory &
PR Vendor check Check A/P control
received
register accts.
D
PO
Packing Slip PO
Store
A RR
room
PO
RR General
CD Voucher
B Ledger
Invoice RR
B
Prints
journal
RR CD Voucher
PO voucher
Inventory C
Open A/P
control
file
Clerk
PO Journal
Voucher
Identifies Update
cash & A/P
items to be
Updates control
paid
inventory accts.
RR Files B
ledger
CD Voucher
PO General
Ledger
Updates
PO
A/P subs. Purchase System Flowchart
ledger
Inventory Closed A/P file
control files
Production Dept Payroll Department Cost Accntg. Department A/P Department Cash Disbursement General Ledger Department
Job Tickets Job Tickets Payroll Payroll Labor Distribution
A
= Register Register Summary
B Voucher
CD Voucher
Post to Prepare
WIP
WIP Voucher
ledger
Time Cards Time Cards account
Update and
General verify
Labor Payroll Ledger accounts
Distribution Summary Register
Clerk
Prepare
Checks
CD Voucher
A
Prints and
updates CD Voucher Voucher Labor
employee
Distribution
payroll
Summary
records
Payroll
B Register
Voucher
Time Cards
Payroll Check
Payroll
Register Payroll Check
Employee
Paychecks
Sign the
check
Supervisor
Payroll System Flowchart
Bank
Internal Control Weaknesses we have observe for each major subsystem (Purchases System, Payroll System and Fixed Asset System) are: 1.) In the segregation of duties under the Payroll System, instead of the supervisor, it should be the paymaster who will
receive the paychecks for distribution to the employees. 2.) In the cash disbursement process, documents such as voucher, payroll check and the payroll register should be in the responsibility of Accounts Payable Department rather than Cash Disbursement.
The AP Department must compile those files. 3.) Another, under the Purchases System, the Inventory Controller must not have the control for open and closed PO file. Instead, it should be the Purchasing Department whose responsible for the said files. 4.)
Moreover, the Purchasing Department must send a blind copy to the Receiving Department for the verification of goods received.
The documents must be authorized by the authorized clerks and must be kept by its respective custodian. Furthermore, each transaction must be executed by the assigned department in which it is its main job. The Orbits must review and correct
their system for the main purpose of avoidance of fraud.
