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:
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 …
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