BAC 4624 Assignment Tri 2 2014/2015

Case 1
The following describes the expenditure cycle for Mobius Sdn Bhd: Whenever inventory records in any departments are below its re-order level, a dedicated staff in each department will submit a purchase requisition to the purchasing department clerk. Upon receiving the documents, the clerk will prepare the purchase orders. He will send Copy 1 to the supplier, Copy 2 to the receiving department and Copy 3 to the accounts payable department. A few days later, the supplier ships the order and the goods arrive at the receiving department, together with a copy of Packing Slip. The receiving clerk reviews the purchase order (and the packing slip), inspects the goods and prints three copies of receiving report. The first copy of the report will be used to update the inventory records to reflect the receipt of goods, and later filed in the department. The second copy with the goods is sent to the warehouse and the third copy is sent to the accounts payable department. A day or two later, the accounts payable clerk receives a supplier’s invoice for the items shipped. The clerk assesses the receiving report and respective purchase order and later reconciles these documents with the supplier’s invoice. If all aspects of the order reconcile, the clerk records the amount of purchase into the respective accounts payable. Every Friday, a clerk from the accounting department will review the accounts payable and identify any items which are due for payment. A cheque will be prepared. Once approved and signed, it will be sent to the supplier and General Ledger will be updated.

Required: Prepare a Context Diagram and DFD for the above Expenditure Cycle.