Module6- Purchase-to-Pay Assignment Then arrativeand flow chart below provide information about Moxy,Inc.,an industrial cleaning supply company. Please complete the following two tasks:(a) Using Excel or a Word table, prepare a control matrix for Moxy's business processas described in the narrative on the next page and shown in the flowchart on the page that follows that. Note that it should be either a"purchasing"process(Ch.12)oran"AP/CD"process(Ch.13).You must decide which process fits then arrative and flowchart.
Important time-saving note: To save time,you do NOT need to prepare the supporting explanations for this control matrix. The output for Problem2,part(a) should include ONLY the control matrix itself. For purposes of preparing the"effectiveness"columns of your flowchart,you should assume that you have the following 2 goals:1. Optimize cash discounts 2. Ensure that the amount of cash maintained in demand deposit accounts is sufficient(but not excessive)to satisfy expected cash disbursements.Tip: Find the corresponding example of a control matrix in the textbook, based on your choice of process(purchasing (Ch12) orAP/CD (Ch13)). Setup a"skeleton" in Excel or a Word table (e.g.,column headings and room for the control plans you identify in rows)that is like the match you find in the text. The only real differences should be in the (1)"Present"and"Missing"control plans that you list in each row-these must be custom-tailored to the narrative/flowchart for Moxy on the next pages-and the(2)cell entries that you make.
To locate potential control plans to be included in your control matrix, use Chapter 9 AND either Chapter12 or Chapter13-which ever is applicable to the narrative that follows. Present control plans in your matrix should be mentioned in your narrative For missing controls, remember that this process is more subjective, but in general, you want to identify goal columns with few entries, and find control plans that would enhance the accomplishment of those goals. Missing plans should fit the situation.(b) Annotate the flowchart that I have attached once your control matrix in part(a) is complete.
Narrative for Moxy,Inc.:
Moxy,Inc. is a distributor of industrial cleaning supplies, selling to a variety of businesses in the southeast UnitedStates. Its entire"purchase-to-pay"process is run using an ERP software package designed for small-to-mid-sized businesses. The relational database software that stores the data for the ERP system is run on a server in a central computer area, where all of the data is stored. Moxy also uses this same software for other areas of the business, including sales and financials(i.e.,general ledger). Moxy has not implemented EDI, but instead relies on manual invoices from its various vendors to initiate its AP/CD process. When the accounts payable department receives invoices from vendors, an AP clerk, using his/her own desk top computer, uses the ERP system user interface to locate the corresponding PO number that is associated with the invoice that was received. When the clerk locates the PO number, the screen displays the existing PO. At this point, the clerk enters any data from the invoice that is necessary to adjust the PO. The computer then matches the newly entered invoice data to the existing PO data and the data that was recorded at the time the goods were received. If there are price or quantity differences, the ERP's workflow capability automatically routes the invoice to the purchasing department for approval. Upon approval, the computer records the invoice and updates the PO and general ledger master data. On Tuesdays and Fridays of each week, a clerk in the accounts payable department reviews unpaid invoices using the ERP software to view these items on his/her screen. The clerk places a check mark in the box for each invoice that will be paid. Once this step is performed, the checks are printed in the accounts payable department. Simultaneously, the system updates the accounts payable and general ledger master data. Accounts payable runs the batch of checks through a check-signing machine and mails them to the vendor.