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| Copy of a source document with certain info deleted for internal control purposes. Example: quantity order is omitted on the copy of the purchase order sent to the receiving department |
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| Issued by the purchaser to request a decrease in the balance due on account |
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| given to the employee on payday. Strictest internal control needs to be maintained over the payroll function. Paychecks are prepared by payroll and sent to the cash payments department |
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| General ledger account used only for the p[ayment of payroll. The total amount of the payroll is deposited in this account and then the payroll check are written on this account. |
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| Lists each employee to be paid including gross pay, employee deductions and net pay. Prepared by the payroll department using employee records maintained by the personnel department. Copy sent to the accounts payable department |
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| Source document used to request inventory from a vendor. Prepared by the purchasing department based on a purchase requisition received from inventory control. Copies of the purchase order are sent to the vendor, receiving, accounts payable (along with the purchase requisition), and inventory control. |
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| Source document used to ask purchasing to buy inventroy, supplies, equipment, or other assets. If inventory, the purchase requisition is initiated from inventory control. If a non-inventory item, the request comes from the department needing the asset. Copies are sent to the vendor, purchasing, accounts payable, and perhaps receiving (they also need an approved p/o) |
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| Source document prepared by the receiving depart upon receipt of inventory from a vendor. Indicates quantity and type of inventory received. Copies are sent to inventory control, warehouse, purchasing, and accounts payable. |
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| Source document used to record the number of hours worked by an employee. Time cards are sent to payroll to be used in the preparation of the payroll register. |
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| File containing a list of vendors from which we may purchase inventory. The list may be segregated by type of inventory. (We may purchase television from one set of vendors but microwaves from another set of vendors. |
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| The bill we receive from the vendor outlining the type, quantity, cost, and terms of the transaction. |
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| Voucher/Request for payment (RFP) |
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Authorization: initial each step upon completing. 1)record in voucher register 2)file in unpaid vouchers file 3)when paid record in check register
4)file in "paid" file |
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| Acts as the clearing house for all source documents in the expenditures cycle. |
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| Responsible for preparing and mailing checks to vendors. Checks are ONLY prepared based on vouchers received from the accounts payable department. |
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| Responsible for maintaining all general ledger control accounts. Also responsible for reconciling summary subsidiary ledger reports received by each department with the balance in the control account |
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| Responsible for maintaining inventory subsidiary ledger/records. Also responsible for preparing purchase requisitions based on minimum stock levels established for each inventory item |
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| Responsible for maintaining the payroll register. Send Payroll register to accounts payable. |
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| Responsible for preparing purchase orders based on purchase requisitions and valid vendor files. Copies are sent to the vendor, receiving, accounts payable, and inventory control. |
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| Responsible for receiving inventory shipped from the vendor. Reconciles inventory received with blind copy of the purchase order. |
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| Agreement between the seller and the shipper to transport merchandise to the customer. A legal document that states who owns the merchandise (FOB shipping pt vs destination) and gives the shipping company permission to have possession of the merchandise. The original is given to the shipping carrier and a copy is filed in the shipping department |
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| A source document listing all check received from customers. The original is sent to the cash receipts department and copies are sent to accounts receivable and the treasurer. |
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| A file containing source document related to transactions that have been completed. |
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| Source document authorizing a credit to a customer's account for any of a variety of reasons: damaged merch, merch returns, mistake in recording transaction etc. |
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| Authorizes an entry to be made into the general ledger. A form on internal control that eliminates the need for a formal general journal. |
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| A file containing source documents related to a transaction that has not yet been completed. For example, inventory may been order and received but not yet paid. |
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| The copy of the sales invoice that is sent to the customer along with the merchandise |
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| Source document verifying which invoice the customer intends to pay. There are three potential sources of a remittance advice: 1)part of the invoice sent to the customer 2)originated by the customer 3)may be prepared by the mail clerk. It is also sent to accounts receivable where it is compared tot eh copy of the sales invoice on file with any credit memo. |
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| What we call the customer's purchase order. Communicates the customer's intent to order merchandise |
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| Customer's copy of sales order that shows items and quantity shipped, unit prices, shipping charges and total amount owed by the customer. Copies of the sales invoice are sent to various departments to be used as either authorization and/or verification for the rest of the transaction cycle. (Customer, 2 to receivable/billing, sales department, warehouse, shipping. Used to reconcile different documents in each department) |
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| created as a copy of the sales invoice in the sales department. The shipping notice is completed in the shipping department and sent to the billing department as notice the merchandise has been shipped to the customer |
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| Stock Release/picking ticket |
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| created as a copy of the sales invoice in the sales department. The stock release/picking ticket acts as permission for the warehouse to send the merchandise to the shipping department. |
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| Responsible for updating and maintaining the customer subsidiary ledger. At periodic intervals sends batch total to the general ledger department for reconciliation with the accounts receivable control account |
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| May or not be part of the A/R department. If part of A/R, the following functions are considered part of the accounts receivable department's responsibilities. Receiving multiple copies of the sales invoice from teh sales department. Responsible for sending to the customer the billing copy of the sales invoice. DO NOT bill the customer until the shipping notice is received from shipping. |
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| Responsible for maintaining the cash receipts journal, preparing the deposit slip and depositing the checks. |
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| Authorizes the sales order process by approving a customer's credit when the sales department forwards the sales order. New customers should undergo a detailed external verification of creditworthiness. |
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| Responsible for maintaining the inventroy subsidiary ledger. Updates the ledger using receiving reports and shipping notices. Responsible for initiating purchase requisitions (expenditure cycle) which are sent to the purchasing department (expenditure cycle). |
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| responsible for maintaining the general ledger control accounts. Receives batch total reports from accounts receivable/billing, inventory, accounts payable, fixed assets, etc...Responsible for reconciling control accounts with the individual subsidiary ledgers. |
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| Responsible for receiving the customer's check along with the remittance advice. Upon opening the mail a cash prelist is immediately prepared and the checks are endorsed "For Deposit Only" A copy of the prelist is sent to the cash receipts department. The remittance advice along with another copy of the cash prelist are sent to the accounts receivable department. |
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Receive customer orders, creating sales order and sales invoices. Information recorded includes, name and addresss of customer, type quantity and price of inventory item to be sold as well as terms of sale, including taxes and freight charges.
For internal control purposes sales invoices are not created until customer credit has been cerified and approved by the credit department. Sales orders/invoices are put in an open order file in alphabetical order. See sales invoice for info regarding how copies of the sales invoice are distributed. |
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| Responsible for loading the merchandise onto the shipping carrier. Authorization for shipping the merchandise comes from the stock release and shipping notice sent form teh sales department. When the merchandise and copy of the stock release are received from teh warehouse, all three source documents (packing slip, shipping notice, and stock release) are verified with the merchandise. Once the shipping clerk is satisfied there are no erros, the merchandise is packaged with the packing slip, the shipping notice is completed, ad a bill of lading is prepared. |
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| Responsible for physical custody of the merchandise. Authorization for the release of merchandise comes from the stock release/picking ticket sent from the sales department. The merchandise is forwarded to the shipping department along with a copy of the stock release. If any item is out of stock the back order of merchandise is recorded on the stock release. After the merchandise is transferred to the warehouse, the following functions need to be performer. 1)File a copy of the stock release 2)record the release of merchandise in the warehouse's informal inventory record. |
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| Individuals who use accounting information to make decisions concerning past, present, or future business activities |
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| communication information in such a manner that a decision maker can comprehend the meaning of the information |
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| information that is cost beneficial to the decision making process |
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| Information that pertains directly to, and has an impact on, a decision. Information that is capable of making a difference in the ultimate decision |
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| Information that is provided to the user before a decision has to be made and in time to actually affect the decision |
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| Information that can be used to estimate what may happen in the future |
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| Information that provides confirmation |
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| Representational Faithfulness |
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| Information that accurately measures an event. |
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| Information that is not biased, but instead objectively represents an event |
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| Information that be confirmed by a third party |
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| Information that can be contrasted with similar information from a different source |
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| Information that is measured and presented in a constant manner across time periods. |
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| Information that will have a signifcant impact on a decision. |
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