Campbell’s Purchasing Cycle
Illustrated
September 23, 2015
TODAY
In-Class Exercise
Evaluating Flowcharts
Instructions
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•
•
•
Make sure your flowchart is labeled with YOUR name
Make sure your flowchart is labeled with your P/A name
Trade Papers with someone not in your group
It can be anyone OUTSIDE your group
• Evaluator:
– Write “Evaluated by:…” and your name on the lower right corner
Grading
“MORE POINTS” IS BAD.
“FEWER POINTS” IS GOOD.
LIKE GOLF.
Count 1 Point if…
• Missing Flowchart Title on every page
Count 1 Point if…
• Missing date on every page
Count 1 Point if…
• Missing Company Name on every page
Count 1 Point if…
• More than 1 page, but page numbers do
not appear on every page
Count 1 Point if…
• More than 1 page,
with improper or incorrect usage
of off-page connectors
IMPORTANT:
OFF-PAGE CONNECTORS
MIGHT NOT BE
NECESSARY.
Check for the following:
• Lack of terminator symbols at top of each
column (1 point)
Check for the following:
• Does the document symbol repeat every time a
document changes hands?
• Count 1 point for each time any document
changes hands but is not repeated…
…UP TO A
MAXIMUM
OF 3 POINTS
Jan and Nickie:
• Is it clear that there are 2 copies of the requisition?
(1 point if not clear)
• Both copies must end up in a file
(1 point if either doesn’t)
• A paper copy of the PO must go to the vendor
(1 point if this is not shown)
Terry:
• The computer file (the materials planning data)
must enter into the PO creation process (1 point if not)
• PO must be electronically transmitted to vendor using
the thunderbolt or zig-zag arrow (1 point if not)
Are there…
• Any other outright errors in the information flow?
Add 1, 2, or 3 points depending on how serious you
think’s the error is…
JAN
Requisitioner
Purchasing Agent
Creates
Requisition
Requisition
Requisition
Req Manager
Approves
Requisition
Requisition
Requisitioner
Requisition
Requisition
JAN
Requisitioner
Purchasing Agent
Creates
Requisition
RFQ/RFP/RFB
Investigations
if required
Requisitionv
Requisition
Creates PO
PO File
Req Manager
Requisition
Approves
Requisition
Requisition
PO
Supporting Docs
Requisition
Vendor
Requisitioner
Requisition
JAN
Requisitioner
Purchasing Agent
Creates
Requisition
RFQ/RFP/RFB
Investigations
if required
Requisitionv
Requisition
Creates PO
PO File
Req Manager
Requisition
Approves
Requisition
Requisition
PO
Supporting Docs
Requisition
Vendor
Requisitioner
Requisition
Invoice
Accts Payable
JAN
Requisitioner
Purchasing Agent
Creates
Requisition
RFQ/RFP/RFB
Investigations
if required
Requisitionv
Requisition
Creates PO
PO File
Req Manager
Requisition
Approves
Requisition
Requisition
PO
Supporting Docs
Requisition
Vendor
Requisitioner
Requisition
Invoice
Accts Payable
JAN
Requisitioner
Purchasing Agent
Creates
Requisition
RFQ/RFP/RFB
Investigations
if required
Requisitionv
Requisition
Creates PO
PO File
Req Manager
Requisition
Approves
Requisition
Requisition
PO
Supporting Docs
Requisition
Vendor
Requisitioner
Requisition
Invoice
Accts Payable
JAN
Requisitioner
Purchasing Agent
Creates
Requisition
RFQ/RFP/RFB
Investigations
if required
Requisitionv
Requisition
Creates PO
PO File
Req Manager
Requisition
Approves
Requisition
Requisition
PO
Supporting Docs
Requisition
Vendor
Requisitioner
Requisition
Invoice
Accts Payable
JAN
Requisitioner
Purchasing Agent
Creates
Requisition
RFQ/RFP/RFB
Investigations
if required
Requisitionv
Requisition
Creates PO
PO File
Req Manager
Requisition
Approves
Requisition
Requisition
PO
Supporting Docs
Requisition
Vendor
Requisitioner
Requisition
Invoice
Accts Payable
JAN
Requisitioner
Purchasing Agent
Creates
Requisition
RFQ/RFP/RFB
Investigations
if required
Requisitionv
Requisition
Creates PO
PO File
Req Manager
Requisition
Approves
Requisition
Requisition
PO
Supporting Docs
Requisition
Vendor
Requisitioner
Requisition
Invoice
Accts Payable
JAN
Requisitioner
Purchasing Agent
Creates
Requisition
RFQ/RFP/RFB
Investigations
if required
Requisitionv
Requisition
Creates PO
PO File
Req Manager
Requisition
Approves
Requisition
Requisition
PO
Supporting Docs
Requisition
Vendor
Requisitioner
Requisition
Invoice
Accts Payable
JAN
Requisitioner
Purchasing Agent
Creates
Requisition
RFQ/RFP/RFB
Investigations
if required
Requisitionv
Requisition
Creates PO
PO File
Req Manager
Requisition
Approves
Requisition
Requisition
PO
Supporting Docs
Requisition
Vendor
Requisitioner
Requisition
Invoice
Accts Payable
NICKIE
Requisitioner
Requisition
Creates
Requisition
Requisition
Mgr Approval
Required?
Yes
Requisition
No
Manager
Requisition
Approves
Requisition
Requisition
Operations Mgr
No
>$5000?
Approves
Requisition
Yes
Requisition
Requisition
Purchasing Agent
NICKIE
Requisitioner
Purchasing Agent
Requisition
Creates
Requisition
Requisition
RFQ/RFP/RFB
Investigations
if required
Requisition
Creates PO
Mgr Approval
Required?
Yes
No
Requisition
PO File
PO
Manager
Requisition
Approves
Requisition
Vendor
Requisition
Operations Mgr
No
>$5000?
Approves
Requisition
Yes
Requisition
Requisition
NICKIE
Requisitioner
Purchasing Agent
Requisition
Creates
Requisition
Requisition
RFQ/RFP/RFB
Investigations
if required
Requisition
Creates PO
Mgr Approval
Required?
Yes
No
Requisition
PO File
PO
Manager
Requisition
Approves
Requisition
Vendor
Requisition
Operations Mgr
No
>$5000?
Approves
Requisition
Yes
Requisition
Requisition
NICKIE
Requisitioner
PO File
Vendor
NICKIE
Requisitioner
PO File
Receiving Dock
Receiving
Procedures
Packing Slip
Packing Slip
Vendor
Invoice
Accts Payable
NICKIE
Requisitioner
Manager
Operations Mgr
Purchasing Agent
PO File
Receiving Dock
Receiving
Procedures
Packing Slip
Packing Slip
Vendor
Invoice
Accts Payable
TERRY
Customers
Order File
Purchasing Agent
Materials
Planning
File
Orders Material
& Creates PO
PO File
Production Dept
PO
Vendor
Invoice
Production
Cost System
Accts Payable
OK. SO, …
HOW DID YOU DO?
$$$
BUYER
SELLER
Goods & Services
TRANSACTION
CYCLE
… over time
… many activities and events
Request Goods
Advertise Need
$$$
Negotiate Terms
BUYER
Advertise Offering
Negotiate SELLER
Terms
Order Goods
Accept Order
Goods & Services
Receive Goods
Pack, Ship Goods
Bill for Goods
TRANSACTION
CYCLE
Approve
Invoice
… over time
Pay Invoice
Receive Cash
… many activities and events
Bank Reconcil’n
Bank Reconcil’n
Request Goods
Advertise Need
Advertise Offering
Negotiate Terms
Negotiate Terms
Order Goods
Accept Order
Receive Goods
Pack, Ship Goods
Bill for Goods
Approve Invoice
Pay Invoice
Receive Cash
Bank Reconcil’n
Bank Reconcil’n
Request Goods
Advertise Need
Advertise Offering
Negotiate Terms
Negotiate Terms
Order Goods
Accept Order
Receive Goods
Pack, Ship Goods
Bill for Goods
Approve Invoice
Pay Invoice
Receive Cash
Bank Reconcil’n
Bank Reconcil’n
Documents
in the Purchasing Cycle
Requisition
Purchase
Order
Order
Acknowledgement
Bill of
Lading
RFP
Packing List
RFQ
Statement
of
Account
Invoice
Receiving
Voucher
RFB
Bank
Statement
Check
Register
Remittance
Advice
Check
Signature
Card
$$$
BUYER
SELLER
Goods & Services
REVENUE CYCLE
Transaction Cycles
• Purchasing Cycle
•
•
•
•
Acquisition Cycle
Expenditure Cycle
Disbursement Cycle
Payable Cycle
• Sales Cycle
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•
•
•
Revenue Cycle
Cash Receipts Cycle
Cash Collections Cycle
Receivables Cycle
JOB TITLES
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•
Sales Manager
Credit Manager
Sales Rep – Customer Service
Order Filling (production, warehouse, etc.)
Shipping
Billing
Accounts Receivable (cashier)
Collections Clerks
Cashier
Controller (bank reconciliation)
Documents in the Revenue Cycle
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•
•
•
•
•
•
•
•
•
•
•
•
•
•
Credit Application
Sales Order
Order Acknowledgement
Picking Ticket (Filling ticket, etc.)
Packing Slip (Picking ticket? Filling ticket?)
Shipping Advice
Bill of Lading (Shipping Manifest)
Billing Invoice
Statement of Account
Dunning Notice
Remittance Advice
Customer Check
Deposit Slip (deposit ticket)
Deposit Receipt (Cash Report)
Bank Statement
Request Goods
Advertise Need
Advertise Offering
Negotiate Terms
Negotiate Terms
Order Goods
Accept Order
Receive Goods
Pack, Ship Goods
Bill for Goods
Approve Invoice
Pay Invoice
Receive Cash
Bank Reconcil’n
Bank Reconcil’n
Learning Objectives for Unit 10
Upon completion of Unit 10 the student will be able to:
1. Recognize and identify the alternate names for the Revenue (Sales)
Transaction Cycle.
2. Name and describe the job titles and responsibilities in the Revenue Cycle.
3. Name and describe the documents used in the Revenue Cycle
4. Describe the document flows within the Revenue Cycle
Homework Assignment 9
Reading
Come up with names for the steps