System Flowchart 6i1en

SPICE IS RIGHT IMPORTS (STANDALONE PC BASED ING SYSTEM) Group 5

NARRATIVE  Purchasing Process

 The purchasing agent monitors the inventory levels by reviewing the inventory

subsidiary ledger from his department computer. He decides which items need to be replenished and selects a supplier. He then enters this information into the computer terminal to create a digital purchase order. The computer terminal generates three hard copies of the purchasing order. The purchasing agent sends one copy to the supplier, one copy to the s payable department where it is filed temporary, and files the third copy in the purchasing department. When the goods received, the receiving department inspects and verifies them using the packing slip, which is attached to the goods. The receiving clerk manually prepares two hard copies of a receiving report. One copy accompanies the goods to the warehouse for storage. The receiving clerk sends the second copy to the purchasing agent who uses it to update the inventory subsidiary ledger and to close the open purchase order. The purchase agent then files the receiving report in the department.

TABLE OF ENTITIES AND ACTIVITIES Entities Purchasing Department (Agent)

Para

Activities 1 1 1 1 1 1

1. Monitor inventory levels by receiving the inventory subsidiary ledger. 2. Replenished and select a supplier. 3. Enter information to create a digital purchase order to generate three hard copies. 4. Send one copy to the supplier. 5. Send one copy to s Payable

Entities Receiving Department (Clerk)

Para

Activities

1 1

7. Goods received. 8. Inspect and goods using the packing slip attached. 9. Prepare two hard copies of receiving report. 10. Send one copy to the warehouse for storage. 11. Send one copy to the purchasing department. 12. Update inventory to close and open purchase order. 13. Files receiving report.

1 1 1 1 1

FLOWCHART

The end.