Exam 13: The Accounts Payablecash Disbursements Apcd Process

In the ER diagram of the AP/CD process, VALID_INVOICES are received from the ______________________________.

Information technology has enhanced the AP/CD process by:

The cashier usually reports to the ______________________________.

The vendor sends a confirmation to establish the payable.

An enterprise system may facilitate the AP/CD process by linking:

The control plan ______________________________ includes an aging of open vouchers / accounts payable records that is produced and reviewed on a regular basis in order to ensure that there is an adequate cash reserve to make required payments.

When it is time to make a payment, an approved ______________________________ is sent to the cashier.

In the flowchart for the AP/DC process the symbol below represents the enterprise database.

Below is a narrative of the "Establish payable" portion (bubble 1.0) of the AP/CD process described in Chapter 13. Narrative Description The first step in establishing the payable involves validating the vendor invoice. This process is triggered by receipt of the vendor invoice. Process 1.1 comprises a number of steps. First, the vendor invoice is matched against vendor master data to determine that the invoice is from an authorized vendor. Next, the vendor invoice is compared against the PO data (see the flow PO accounts payable notification) to make sure that there is a PO (i.e., there is an authorized purchase) and that the invoiced items, quantities, and prices conform to the PO. Then, the invoice is matched against the receiving report data to determine that the items and quantities have been received. Finally, the invoice is further validated by checking for accuracy of terms, computed discounts, extensions, and total amount due. Note that the vendor master data is updated at this point to reflect purchase history data. If the data items do not agree, the invoice is rejected, and follow-up procedures are initiated (see the reject stub emanating from bubble 1.1). If the data items agree, the invoice is approved, and the validated invoice is sent on to the next step to be used to record the payable. Bubble 1.2 depicts the process of recording the payable in the purchase events data and accounts payable master data. A payable is recognized and recorded by: *Creating a record in the purchase events data stare. *Creating a record in the accounts payable master data to reflect an apen invaice $\rightarrow$ payment due to a vendar. *Updating the inventary master data for the cost of the items received. *Natifying the general ledger of the amount of the payable that was recarded (5ee the data flow "GL payable update"). Required: From the DFD (TB Figure 13.3) and the narrative description above, explode bubble 1.0 into a lower-level diagram showing the details of that process.

At the time that an AP/CD process makes payment for goods or services, the process generally follows which order."

The cashier is responsible for processing vendor invoices, preparing payment vouchers, and recording purchase and disbursement transactions.

Independent validation of vendor invoices helps ensure that appropriate cash discounts are obtained.

For payment voucher input validity, which control plan uses records in the AP master data to give authorization to the cash disbursements computer program to make a payment?

The ______________________________ department is responsible for processing vendor invoices, preparing disbursement vouchers, and recording purchase and disbursement transactions.

In the ER diagram of the AP/CD process, VALID_INVOICES are received from the purchasing department.

The vendor invoice master data is a repository of all unpaid vendor invoices.

The flowchart below is the accounts payable/cash disbursements process presented in Chapter 13, but with certain items omitted. In the flowchart, each omission is indicated by a capital letter (A through I). Jumbled lists of the omitted items are as follows: 1. Compare incoming invaices to $P O$ and recening report data and record AP and GL data 2. Display of proposed payments 3. Enterprise database 4. Exception rautine not shown 5. Paynent totals 6. Prepare payment order and RA, update AP and GL data far payment display payment tatals 7. Select payments, calculate batch totals 8. Translate fram EDI and record incaring invaices 9. VAN Required: Complete the flowchart TB Figure 13.11 by placing one of the numbers, 1 through 9 from the above lists, to match the letters showing the missing items.

A key control in the AP/CD process is to segregate the treasurer and controller.

Which of the following process bubbles would you not expect to see in the logical DFD for an AP/CD process?

A(n) ______________________________ is designed to reflect formal approval of a payment and to provide such added data as the account distribution and the amounts to be debited.