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    10 Purchases and Payments Business Process PDF

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    Sara Awni
    The document describes the purchases and payments business process. It discusses: 1. The key activities of the process including ordering inventory, receiving goods, approving supplier invoices, and making payments. 2. Developing models to represent the process, including an activity model showing the steps, a collaboration model showing message flows, and structure and physical data models. 3. Identifying threats and controls related to the purchases and payments process.

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    10 Purchases and Payments Business Process PDF

    Uploaded by

    Sara Awni
    67 views25 pages
    The document describes the purchases and payments business process. It discusses: 1. The key activities of the process including ordering inventory, receiving goods, approving supplier invoices, and making payments. 2. Developing models to represent the process, including an activity model showing the steps, a collaboration model showing message flows, and structure and physical data models. 3. Identifying threats and controls related to the purchases and payments process.

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    10 Purchases and Payments Business Process.pdf

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    The document describes the purchases and payments business process. It discusses: 1. The key activities of the process including ordering inventory, receiving goods, approving supplier invoices, and making payments. 2. Developing models to represent the process, including an activity model showing the steps, a collaboration model showing message flows, and structure and physical data models. 3. Identifying threats and controls related to the purchases and payments process.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    67 views25 pages

    10 Purchases and Payments Business Process PDF

    Uploaded by

    Sara Awni
    The document describes the purchases and payments business process. It discusses: 1. The key activities of the process including ordering inventory, receiving goods, approving supplier invoices, and making payments. 2. Developing models to represent the process, including an activity model showing the steps, a collaboration model showing message flows, and structure and physical data models. 3. Identifying threats and controls related to the purchases and payments process.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 25

    Purchases and Payments Business

    Process

    ACC2006: Accounting Information Systems


    What will we learn today?
    1. Describe the business activities that comprise the purchases and payments
    business process
    2. Describe the major events of the purchases and payments business process
    3. Develop an activity model of the purchases and payments business process
    4. Identify the threats and controls associated to purchases and payments
    business process
    5. Develop structure model for the purchases and payments business process
    6. Develop physical model for the purchases and payments business process
    The Nature of Purchases and Payments Business Process
    Nature of Purchases and Payments Process

    ➢The purchases and payments business process comprises those


    components (e.g., people, machines) that interact to buying
    inventory from suppliers maintaining supplier records, and making
    payments to suppliers for trade accounts payable while taking
    appropriate purchase discounts.
    Functions of the Purchases and Payments Process

    ➢Supplier invoice for goods and services provided


    ➢Managing supplier accounts to secure complete and timely payment
    ➢Receive goods and services from
    ✓only those ordered
    ✓only those that are of acceptable quality
    ➢Return of unacceptable goods
    ➢Exercise control over goods received
    ➢Pay for goods and services received
    ➢Managing accounts payable
    Accounting Entries for Purchases and
    Payments: A Review
    Activity Model for Purchases and Payments Business Process
    Managing a System: Our Concerns

    ? ?

    Representation

    Is the real-world system Is the information system


    safeguarding assets and faithfully representing the
    operating effectively and real-world system?
    efficiently?
    What Must We Manage?

    ➢The real-world system


    ▪is it effective and efficient?
    ▪does it safeguard assets?
    ▪does it comply with statute/regulation/ policy/procedures?
    ➢The information system
    ▪is it faithfully tracking the real-world system?
    ▪is it providing us with the information we need?
    Case: Sunset Graphics Purchases and
    Payments Description

    ➢Research prices and product availability


    ➢Select the best price and availability combination and send a
    purchase order to the supplier
    ➢Receive the items from the supplier (and record the purchase and
    accounts payable)
    ➢Pay the supplier according to the credit terms
    BPMN for Sales and Collection
    Case: Sunset Graphics Basic BPMN activity
    model

    The basic activity model implements the process steps.


    Case: Collaboration Model

    The collaboration model focuses on the message flows between the pools.
    Case: Adding Swimlanes to Show Functional
    Responsibility

    Swimlanes
    show
    functional
    responsibilities
    Threats and Controls for Sales and Collection Business Process
    Basic Expenditure Cycle Activities
    ▪ Order materials, supplies, and services
    ▪ Receive materials, supplies, and services
    ▪ Approve supplier (vendor) invoice
    ▪ Cash disbursement

    13-16
    Order Goods (Materials/Supplies) or
    Services Processing Steps
    • Identify what, when, and how much to purchase
    ▫ Source document: purchase requisition

    • Choose a supplier
    ▫ Source document: purchase order

    13-17
    Receiving Process
    ▪ Goods arrive
    ▪ Verify goods ordered against the purchase order (what, how much, quality)
    ▪ Source document: receiving report

    13-18
    Approve Supplier Invoice

    • Match the supplier invoice to:


    ▫ Purchase order
    ▫ Receiving report

    • Approve supplier invoice for payment


    ▫ Source document: disbursement voucher

    13-19
    Cash Disbursements

    • Pay vendor

    13-20
    Structure Model for Purchases and Payments Business Process
    Case: Sunset Graphic’s Structure Model
    Physical Model for Purchases and Payments Business Process
    Case: Database Relationship

    Which relationship is missing? How would you implement that?


    Questions

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