data flow diagram and internal controls and system documentation

ACC539 201860 ADDITIONAL ASSESSMENT - BIG D’S ELECTRONICS

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INFORMATION PROVIDED BY THE CEO, MR DWAYNE FLYNN

Big D’s Electronics is a retail store located in Sydney and Newcastle. We sell inventory such as smart phones,

drones, wireless headsets, computers and printers. We have a central warehouse located in the outskirts of

Sydney which services both of our stores. All inventory purchased is delivered to the warehouse and dispatched to

the stores as required.

I have included an overview of each of the key roles below for your reference.

This Photo by Unknown Author is licensed under CC BY-SA

ACC539 201860 ADDITIONAL ASSESSMENT - BIG D’S ELECTRONICS

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PURCHASING CLERK

We have one purchasing clerk here at Big D’s Electronics. The primary role of the purchasing clerk is monitoring

the stock in the 2 stores. The purchasing clerk monitors inventory levels for both stores via a computer in the office

of the Sydney store. The computer has pre-defined reorder points and reorder quantities for each inventory item.

When stock levels for an inventory item fall below a pre-determined reorder point, a purchase requisition is

automatically generated by the computer and forwarded electronically to the purchasing clerk. The purchasing

clerk is responsible for reviewing sales trends for the inventory item and deciding whether to reorder the goods

listed on the purchase requisition. The purchase clerk can cancel the order if they feel that the quantity is too high

or too low or accept the requisition without change. Once the purchasing clerk has decided on the quantity to

purchase, they log onto the computer, open the purchase requisition and make the required changes to the

purchase requisition. The purchase requisition is then marked complete by ticking on a check box in the system.

This is electronically filed in the purchase requisition pending file with an email sent to the purchasing manager

advising them that the purchase requisition is ready for review.

When the purchasing clerk receives the approved purchase requisition email, they log on to the computer and

request a list of approved suppliers for each inventory items on the approved purchase requisition. The purchasing

clerk calls at least one of the approved suppliers requesting quotes for products including delivery costs and

expected delivery dates.

When the quote(s) have been received the purchasing clerk selects which supplier we will place the order with.

The purchasing clerk logs onto the computer and opens the relevant purchase requisition from the approved

purchase requisition file. The purchasing clerk selects the option to create a purchase order by ticking on a check

box. The computer system requests input of a valid supplier number then uses the supplier data and the purchase

requisition data to produce a purchase order. The purchase order is sent via email to the supplier, the purchasing

clerk and the warehouse clerk responsible for these products. An electronic copy of the purchase order is

electronically filed in the purchase order file.

PURCHASING MANAGER

One of the key roles undertaken by the purchasing manager is to review and approve all of our inventory

purchases. Once the purchasing manager receives an email advising that there is a purchase requisition available

for review, they log onto the computer and open the purchase requisition from the purchase requisition pending

file. The purchasing manager can view the details of what the purchasing clerk is ordering and is provided with two

choices for each purchase requisition. If the purchasing manager selects the ‘reject’ option, the purchase

requisition is cancelled, and no further action is taken. If the purchasing manager selects the ‘accept’ option, an

email is sent to the purchasing clerk advising them that the purchase requisition has been approved. The purchase

requisition is filed electronically in the approved purchase requisition file.

This Photo by Unknown Author is

licensed under CC BY

ACC539 201860 ADDITIONAL ASSESSMENT - BIG D’S ELECTRONICS

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WAREHOUSE CLERK

There are 3 warehouse clerks at Big D’s Electronics, who each work 3 days per week at a minimum. On any given

day, there is a minimum of 2 warehouse clerks on duty at the warehouse. As part of all of our supplier agreements,

suppliers are required to provide a delivery docket that lists the items they are delivering, the number of cartons

being delivered and the purchase order that the delivery docket relates to. On arrival at the warehouse, the

delivery driver hands a warehouse clerk two copies of the delivery docket. The warehouse clerk will only accept

the delivery if the delivery docket has a valid purchase order number included.

The warehouse clerk enters the purchase order number from the delivery docket into the computer. The

computer extracts the purchase order status from the purchase order file. If the purchase order number is not

valid or the status of the purchase order is closed, the computer will display an error message and the warehouse

clerk will refuse to take delivery if the items.

If the purchase order number is valid, the computer will display a message indicating that it is OK to accept a

delivery for this purchase order and ask if the warehouse clerk would like to print a goods received report for the

purchase order. The warehouse clerk requests the computer to print the goods received report. The computer

retrieves a list of items ordered from the purchase order file and the supplier details from the supplier file. The

computer prints the goods received report on a printer in the office of the warehouse clerk.

The warehouse clerk compares the printed goods received report to the delivery docket provided by the supplier.

If the quantities agree, the warehouse clerk signs the first copy of the delivery docket to confirm receipt of the

inventory items indicated and returns the signed delivery docket to the delivery driver. The warehouse clerk signs

the goods received report, attaches the delivery docket and places the completed goods received reports in the

completed goods received report file on their desk. All inventory items are then placed on the shelves in the

warehouse.

Each morning, the warehouse clerk retrieves the completed goods received reports and enters the details into the

system. Once the warehouse clerk has accounted for all items on the goods received report, they tick a box on the

computer screen to indicate that the goods received report input has been completed. The computer will update

the purchase order and inventory data stores with the goods received information and then display a message

confirming completion. The warehouse clerk dates and signs the goods received report, and then send the

completed input goods received report to the accounts payable clerk. The goods receiving clerk processes each

completed goods received report in the tray in the same way.

These Photos by Unknown Author

is licensed under CC BY-SA

ACC539 201860 ADDITIONAL ASSESSMENT - BIG D’S ELECTRONICS

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ACCOUNTS PAYABLE CLERK

There has been a high turnover of staff in our accounts payable area. At present we have 2 part time staff in this

area and are actively trying to recruit another 2 staff members.

The accounts payable clerk receives the completed input goods received report from the warehouse clerk. The

goods received report is filed in an awaiting invoice folder.

As part of all of our trading agreements, suppliers are required to provide the related purchase order number on

their invoice. When the invoice is received, the accounts payable clerk enters the purchase order number into the

computer. The computer advises the accounts payable clerk of the status of the purchase order. If the purchase

order is paid, or the purchase order number is invalid, an error message will appear, and the accounts payable

clerk returns the invoice to the supplier via email. If the purchase order is valid and unpaid, the system advises the

accounts payable clerk that it is OK to pay the invoice. The accounts payable clerk then requests the computer to

print the purchase order, which is printed in the office of the accounts payable clerk.

The accounts payable clerk retrieves the goods received report documentation from the awaiting invoices folder.

The accounts payable clerk verifies that the quantities on all 3 documents agree. If there are any discrepancies, the

accounts payable clerk sends the reports to the warehouse clerks for review. If there are no discrepancies, the

accounts payable clerk inputs the purchase order number into the computer and requests a payment screen. The

accounts payable clerk enters the invoice details into the system ready for payment and files the goods received

report, purchase order and invoice documents in an awaiting payments folder.

At the end of the week, the computer extracts details of payments due that week from the accounts payable data

store and produces a payments file which is forwarded electronically to our bank. The bank transfers the money

from our operating bank account to the relevant suppliers. After the payments file has been sent to the bank, the

computer prints a report of payments made on the central printer and updates the accounts payable and general

ledger files. The accounts payable clerk collects the printed report of payments made and retrieves the

appropriate documentation from the awaiting payments file. The accounts payable clerk matches the documents

in the awaiting payments file with the payments listed on the payments made report. Matched sets of

documentation are attached to the payment made report then files in the paid folder.

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SA-NC