FiFi, the manager of the Shining Shoes, Inc., has decided to analyze the Accounts Payable

procedures at the Shining Shoes. The purpose is to document how the present system works so

the transition to a computerized system will be easier. She also hopes to improve any weaknesses

she discovers in the system. In the following narrative, Followings are procedures relating to

accounts payable:

Document Preview:

Accounting 341 Documentation Assignment FiFi, the manager of the Shining Shoes, Inc., has decided to analyze the Accounts Payable procedures at the Shining Shoes. The purpose is to document how the present system works so the transition to a computerized system will be easier. She also hopes to improve any weaknesses she discovers in the system. In the following narrative, Followings are procedures relating to accounts payable:   Before  the  Shining  Shoes  pays  a  vendor  invoice,  the  invoice  must  be  matched  against   the  purchase  order  used  to  request  the  goods  and  the  receiving  report  that  the  receiving   department  prepares.    Because  all  three  of  these  documents  enter  the  accounts  payable   department  at  different  times,  a  separate  numerical  file  is  kept  for  each  type  ofdocument.  The     purchase  orders  that  are  forwarded  from  purchasing  department,  and  the  accounts  payable   clerk,  Ella,  files  the  document  by  purchase  order  number  in  the  accounts  payable  folder.    When   the  receiving  department  sends  receiving  report  to  the  accounts  payable  department,  Ella   stores  them,  by  date,  in  the  receiving  report  file.    When  vendor  invoices  are  received,  Ella  files   the  invoices  by  date,  in  the  vendor  invoice  file.   Shining  Shoes’  policy  is  to  make  sure  all  accounts  are  paid  within  15  days  to  take   advantage  of  the  early ­ payment  discounts  that  suppliers  offer.    When  it  comes  time  to  pay  a   particular  invoice,  Ella  retrieves  and  matches  the  vendor  invoice,  the  purchase …

Attachments: