1

The Purchasing &

Cash Disbursement

Process

2

Internal Perspective of Purchasing Process

1. Purchase requisition sent from inventory control department to purchasing department

3

Internal Perspective of Purchasing Process

2. Purchase requisitions from various other departments sent to purchasing department

4

Internal Perspective of Purchasing Process

3. Purchase order sent to vendor

5

Internal Perspective of Purchasing Process

4. Purchase order notification sent to various other departments or to inventory management process

6

Internal Perspective of Purchasing Process

5. Purchase order notification sent to receiving department

7

Internal Perspective of Purchasing Process

6. Purchase order notification sent to accounts payable process

8

Internal Perspective of Purchasing Process

7. Good and services received from vendor

9

Internal Perspective of Purchasing Process

8. Receiving notification sent to accounts payable and general ledger processes

10

Internal Perspective of Purchasing Process

9. Receiving notification sent to purchasing department

11

Purchasing Process—Context Diagram

12

Purchasing Process—Level 0 Diagram

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14

15

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ER diagram -

Purchasing

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Purchasing Process Systems Flow Chart

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Purchasing Process Systems Flow Chart, Cont’d.

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Control Matrix, Cont’d.

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AP/CD Horizontal Perspective

1. Invoice Received from vendor

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AP/CD Horizontal Perspective

2. Approved voucher sent to cashier

22

AP/CD Horizontal Perspective

3. Accounts payable notification sent to general ledger process

23

AP/CD Horizontal Perspective

4. Check sent from cashier to vendor

24

AP/CD Horizontal Perspective

5. Paid voucher returned to the AP department

25

AP/CD Horizontal Perspective

6. Notification of the cash disbursement sent from the cashier to the general ledger process

26

Vertical perspective-AP/CD

27

The AP/CD Process—Level 0 Diagram

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AP/CD Process Level 1 DFD: Validate Invoice

(Assumes non-voucher system—a formal voucher would have space for formal approval and account distribution)

29

AP/CD Process Level 1 DFD: Make Payment

(Triggered by due date of invoice)

30

Processing Non-Invoiced

Disbursements

31

Entity-Relationship

(E-R) Diagram

(Partial) for the AP/CD Process

32

AP/CD Process: Systems Flowchart

33

AP/CD Control Matrix