Problem - Lois Hate and Associates (Drawing Data Flow Diagrams)
Lois Hale and Associates is a medium-size manufacturer of musical equipment. The accounts payable department is located at company headquarters in Asbury Park, New Jersey, and it consists of two full-time clerks and one supervisor. They are responsible for processing and paying approximately 800 checks each month. The accounts payable process generally begins with receipt of a purchase order from the purchasing department. The purchase order is held until a receiving report and the vendor's invoice have been forwarded to accounts payable.
At that time, the purchase order, receiving report, and invoice are matched together by an accounts payable clerk, and payment and journal entry information are input to the computer. Payment dates are designated in the input, and these are based on vendor payment terms. Company policy is to take advantage of any cash discounts offered. If there are any discrepancies among the purchase order, receiving report, and invoice, they are given to the supervisor for resolution. After resolving the discrepancies, the supervisor returns the documents to the appropriate clerk for processing. Once documents are matched and payment information is input, the documents are stapled together and filed in a tickler file by payment date until checks are issued.
When checks are issued, a copy of checks is used as a voucher cover and is affixed to the supporting documentation from the tickler file. The entire voucher is then defaced to avoid duplicate payments. In addition to the check and check copy, other outputs of the computerized accounts payable system are a check register, vendor master list, accrual of open invoices, and weekly cash requirements forecast.
Requirements: Draw a context diagram and physical data flow diagram.