Report PBL AIS 510

PBL SESSION 2
Part II: Purchasing System
a. Identify seven generated documents that would be required to satify the
minimum requirements of a basic system, and indicate the number of
copies or each document that would be needed.

Purchase Requisition - 3 copies

Purchase Order- 3 copies
Shipping order- 3 copies
Invoices -2 copies
Voucher pakage- 3 copies
Debit memo- 1 copies
Packing slip/ shipping order 3 copies

b. Explain how all these documents should interrelate and flow among the
various departments, including the final destination or file for each copy.
An inventory control responsibility for ensuring an adequate quantity of
materials and supplies, any department can submit a request to purchase
items. Once a purchase requestion has been approved, the system then
creates a purchase order that is sent to the supplier via EDI (electronic
data itercharge) .If necessary, paper copies are printed and mailed.)
The receiving department has access to the open purchase order file so
that it can plan for and verify the validity of deliveries. Then account
payable is notified of orders so that it can plan for pending financial
commitments. The department that generated the purchase requisition is
also notified that its request has been approved.
When shipment arrives with the shipping order, the receiving dock
workers use the inquiry processing system to verify that an order is
expected from that supplier. Receiving dock workers inspect the goods
and use online terminal to enter information about the quantity and
condition of items received. The exact time of the delivery also is recorded
to help evaluate vendor performance. The system checks that data
against the open purchase order and any discrepancies are immediately
displayed on the screen so that they can be resolved.
Upon transfer of the goods to the warehouse, by receiving report, the
inventory stores clerk verifies the count of the items and enters that in the
system. For suppliers who do not send invoices, the system automatically
schedules a payment according to the terms agreed upon when the order
was placed.

Accounts payable clerks enter information from suppliers who send EDI
and invoices. The system then compares the supplier invoice with the
information contained in the purchase order and receiving order to
ensure accuracy and validity.
The supplier invoice itself is also checked for mathematical accuracy. The
system automatically schedules invoices for payment by due date. When
the check is printed, the system updates the accounts payable, openinvoice, and general ledger files. The relevant purchase orders and
receiving reports are flagged to mark that those transactions have been
paid. The invoices that are paid are then deleted from the open-invoice
file.
As cashier reviews checks against the supporting documents then sign
them. That check a specified amount also require a second signature by
the treasurer or another authorized manager.

PBL SESSION 3
Part II : General Ledger and Reporting System
v. The general ledger master file is stored on disk. For some reason, the disk is no
longer readable. It takes the accounting department a week to reenter the past
months transactions from source documents in order to create a new general
ledger master file.(2 marks)
The answer is Data Backups. The backups are retained for only a relatively short
period of time. For example many organization only several months of backups.
Some information, however, must be stored much longer.

vi. The controller sent a spreadsheet containing a preliminary draft of the income
statement to the CFO by email. An investor intercepted the email and used the
information to sell his stock in the company before news of the disappointing results
became public. (1 marks)
The company should be specified company policy to restriction the inside
information to be known to other party