Problem - Laker's Loot Sales Order Process
Lakers Loot sells Lakers merchandise to adoring Lakers fans. Customers place their orders in one of three ways: (1) by telephone, (2) by mail order, and (3) via the company's web site. Order data entered by customers via the company website are stored in a web order request transaction file on disk. As telephone orders are received, an order entry clerk keys the appropriate data into a phone order request transaction file on disk. Upon receipt of mail orders, an order entry clerk keys the appropriate data into a mail order request transaction file on disk. Paper copies of mailed orders are filed by customer name. Twice a day, after mail orders are keyed in, an order entry supervisor keys in a command to a computerized process to create a single merged sale order transaction file labeled "open sale orders" which is next used by the Credit department.
At the end of each day, a credit clerk keys in a command to a computerized process that compares the customer information for each open sale order to the customer masterfile stored on disk to ensure the order is within the customer's existing credit limit. Orders from existing customers are accepted if the customer's credit limit has not been exceeded and the customer is in good standing with Lakers Loot; the customer masterfile is updated for customer profile changes and accepted order data is printed on a 5-copy order form. Rejected order data are printed on a 2-copy rejection form; the first copy is sent back to the customer; the second copy is sent to the Customer Service department where it is stored in a manual file in customer number order. Orders from new customers are transferred to an electronic suspense file; a credit supervisor reviews each of these records from the suspense file using a computerized database to check each customer's credit rating, assigns a customer ID and credit limit in the computer, and updates the customer masterfile accordingly. The resolved suspense file is then automatically processed with the next merged open sales order file which the credit clerk initiates (this was the process performed just prior to the credit supervisor's work). (HINT: show a "resolved" suspense file as input to the order processing process and the "new" suspense file as output generated by that process.)
All five copies of each accepted sale order form are sent to the Inventory Control area. There a clerk keys each item number on each order into the computer to check for inventory availability. The computer indicates the quantity available per the Inventory masterfile; if the quantity desired is less than the quantity available, the inventory masterfile is updated to reserve the quantity desired for the order. Orders for which there is insufficient inventory are redirected to a manual suspense file stored by customer number. Accepted sale orders are taken by another inventory clerk who picks the appropriate inventory items (loot) from the warehouse, noting the goods picked. Copy 5 of each accepted sale order serves as a customer acknowledgement and is sent to the customer with an expected shipment date. Copy 3 of each accepted sale order serves as a picking slip and is stored in a manual file in sale order number. The loot and copies 1, 2, and 4 of each accepted sale order are sent to the Shipping department. In the Shipping department, a clerk packs the loot for each sales order (along with copy 4 of the sales order which serves as a packing slip) into appropriate cartons noting items packed and sends them to the customer. Copy 1 of each filled sale order is sent to the Accounts Receivable department for further processing; and copy 2 is sent to Customer Service where it is stored in customer number order for reference in case of customer inquiry.
The filled sales order document received by Accounts Receivable is keyed into a computerized process in which the Customer masterfile and the electronic General Ledger are updated to record the sale and the account receivable. The filled sales order is filed by customer number in Accounts Receivable. Three copies of a sale invoice are printed; copy 1 is sent to the customer as a reminder that payment is due; copy 2 is sent to customer service where it is stored in customer number order for reference in case of customer inquiry; copy 3 is retained in Accounts Receivable where it is stored in customer number order. Customer payments are received by Accounts Receivable in the form of checks accompanied by remittance advices. Each check amount is manually compared to the remittance advice; once each remittance advice accurately reflects the appropriate check amount, a deposit slip is prepared and the checks are taken with the deposit slip to the Bank. Each remittance advice is keyed into a computerized process that updates the Customer masterfile and the General Ledger to record the cash receipt and the fulfillment of the account receivable. Two copies of each cash receipt are printed; one is sent to Customer Service where it is stored in customer number order for reference in case of customer inquiry; the other is attached to the original remittance advice and is stored in Accounts Receivable in customer number order.
Required: Prepare a system flowchart in good form for Lakers Loot.