Question

You have conducted several interviews with department supervisors who oversee the acquisition/payment process. The following is a summary of your discussions. Use this narrative to prepare a system flowchart to depict Plume’s acquisition/payment system.

checks are issued by the cash disbursements department. When the payment
authorization is received from accounts payable, the information is entered and used to
update the accounts payable and cash disbursements master files. A check is then
generated (with 1 copy). A copy of the check is filed with the payment authorization by
date. The check is then forwarded to the Treasurer. Additionally, a weekly cash
disbursements report is generated and is forwarded to the controller department.
The Treasurer verifies the check information by looking up the authorization
information in the accounts payable system. If the check information is correct, the
treasurer signs the check and sends it to the vendor. If there are any discrepancies, the
check is forwarded to the Controller.

Answer 1

Plume's acquisition/ payment system primarily consists of 3 major departments carrying out several operations in the process flow chart.

• Cash disbursement department and accounts payable
• Treasurer
• Controller department

In the company's acquisition/ payment system check is issued by cash disbursement department along with 1 copy of check after payment authorization and then forwarded to treasurer for check information verification and authorization. Once treasurer has verified the check information, then he/she signs it and send check to the vendor. In case the check information is wrongly filled then check is forwarded to controller department for any discrepancies in the information. A process flowchart image is attached for depicting Plume's acquisition/payment system.