Question

In: Accounting

Analyze the system flowchart in Problem 8, and describe in detail the processes that are occurring.

Analyze the system flowchart in Problem 8, and describe in detail the processes that are occurring. 

Solutions

Expert Solution

System Flowchart

Time sheets are collected in a batch, and the relevant data are manually keyed into the system. The payroll data are then stored on a magnetic disk. An edit program then verifies whether the employee number is valid by checking it against an employee master file. The validity of the cost center assigned is also verified against a master file. Logical and clerical errors are also tested, such as an employee working an unreasonable number of hours in a day/week. The good records, those that pass all the edit tests, are stored in the Edited Transactions file. Records that are found to be in error are sent to an error file. These errors are investigated, corrected, and reentered into the system. The Update program reads the edited transaction records, one at a time, and updates any corresponding fields in the master files. Finally, a report program generates paychecks and management reports.


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