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.
$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.$

The Control Plan ______________________________ Includes an Aging of Open Vouchers

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