assignment 1

Business Processes - Summarized

Sales/Collection Process

Events

Marketing Event

Customer Order Event

Moving Inventory Event

Shipping Inventory/Provide Services Event

Receive Customer Payment Event

Accept Returns and Approve Allowances Event

Write-Off Uncollectible Accounts Event

Common Documents

Customer Order

Sales Order

Shipping Documents

Sales Invoice

Credit Memorandum

Customer Statement

Remittance Advice

Additional Reports (sample)

Open Orders

Sales Journal

Profitability Analyses

Customer Mailing Labels

Aged Receivables

Demographic Analyses

Performance Information on Products,

Salespeople

Event Controls (sample)

A shipment occurring without an authorized

order

An order being approved without proper

customer and credit review

An order being entered by an unauthorized

employee

A shipment being sent to the wrong customer

A shipment containing incorrect or excess items

A shipment being set to an employees address

A cash receipt being credited to a customer

without receiving cash

Acquisition/Payment Process -

Goods/Services

Events

Request for Goods/Service Event

Authorize Purchase Event

Purchase Goods/Service Event

Receive Goods/Service Event

Cash Disbursement Event

Purchase Return Event

Common Documents

Purchase Requisition

Purchase Order

Receiving Report

Check

Additional Reports (sample)

Open Requisitions

Open Purchase Orders

Purchases Journal

Stock Status Reports

Vendor Performance Reports

Aged Payables

Event Controls (sample)

Initiating a purchase order without an authorized

request

Approving a purchase order without a proper

review

Having a fictitious employee approve a purchase

order

Having a receiving clerk delete or modify a

purchase order

Accepting a shipment containing incorrect items

Accepting a shipment of inferior goods

Accepting a shipment without a valid and

approved purchase order

Disbursing cash without a corresponding receipt

of goods

Disbursing cash for an amount that does not

correspond to the receipt of goods

Disbursing cash to an invalid or fictitious vendor

Conversion Process

In Manufacturing:

Job Costing or Process Costing

In Service Industries:

Job Costing

Events

Will vary with each industry

Agents are typically all internal

Resources include inventories, equipment, and

even contracts/jobs

Objectives

Control costs of operations, including raw

materials, labor and other manufacturing costs

Maintain and increase worker productivity while

minimizing defects

Example Information Reports

Performance Analyses

Processes

Workers

Inspection Results

Inventory Valuations/Status

Job Reports

Profitability Analyses and Cost Control Reports

Purchasing and Scheduling Needs

Acquisition/Payment Process –

Human Resources

Events

Request Support Event

Hiring Event

Training Event

Assigning Event (promotions)

Recording time worked

Compensating Event (i.e., pay employee)

Evaluation Event (performance reviews)

Terminating Event

Common Documents

Payroll Check

Employee History

Payroll Returns

Performance Report

Open Job Positions

Acquisition/Payment Process -- Other

Fixed Assets (PPE)

Similar to the acquisition/payment process

events

Depreciation of PPE event

Maintenance of PPE event

Financing and Investments

Also similar to acquisition/payment process

events

Accrual of interest event

Payment of interest and principal event

Change in market value event