1. Campbell’s Purchasing Cycle Illustrated September 23, 2015

2. TODAY In-Class Exercise Evaluating Flowcharts

3. Instructions 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

4. Grading “MORE POINTS” IS BAD. “FEWER POINTS” IS GOOD. LIKE GOLF.

5. Count 1 Point if… Missing Flowchart Title on every page

6. Count 1 Point if… Missing date on every page

7. Count 1 Point if… Missing Company Name on every page

8. Count 1 Point if… More than 1 page, but page numbers do not appear on every page

9. 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.

10. Check for the following: Lack of terminator symbols at top of each column (1 point)

11. 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

12. 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)

13. 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)

14. 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…

15. Requisitioner Requisition Req Manager Creates Requisition Approves Requisition Requisition Purchasing Agent Requisition Requisitioner Requisition JAN

16. Requisitioner Requisitionv Req Manager Creates Requisition Approves Requisition Requisition Purchasing Agent RFQ/RFP/RFB Investigations if required Creates PO RequisitionPO Vendor Supporting Docs PO File Requisition Requisitioner Requisition JAN

17. Requisitioner Requisitionv Req Manager Creates Requisition Approves Requisition Requisition Purchasing Agent RFQ/RFP/RFB Investigations if required Creates PO RequisitionPO Vendor Accts Payable Supporting Docs Invoice PO File Requisition Requisitioner Requisition JAN

18. Requisitioner Requisitionv Req Manager Creates Requisition Approves Requisition Requisition Purchasing Agent RFQ/RFP/RFB Investigations if required Creates PO RequisitionPO Vendor Accts Payable Supporting Docs Invoice PO File Requisition Requisitioner Requisition JAN

19. Requisitioner Requisitionv Req Manager Creates Requisition Approves Requisition Requisition Purchasing Agent RFQ/RFP/RFB Investigations if required Creates PO RequisitionPO Vendor Accts Payable Supporting Docs Invoice PO File Requisition Requisitioner Requisition JAN

20. Requisitioner Requisitionv Req Manager Creates Requisition Approves Requisition Requisition Purchasing Agent RFQ/RFP/RFB Investigations if required Creates PO RequisitionPO Vendor Accts Payable Supporting Docs Invoice PO File Requisition Requisitioner Requisition JAN

21. Requisitioner Requisitionv Req Manager Creates Requisition Approves Requisition Requisition Purchasing Agent RFQ/RFP/RFB Investigations if required Creates PO RequisitionPO Vendor Accts Payable Supporting Docs Invoice PO File Requisition Requisitioner Requisition JAN

22. Requisitioner Requisitionv Req Manager Creates Requisition Approves Requisition Requisition Purchasing Agent RFQ/RFP/RFB Investigations if required Creates PO RequisitionPO Vendor Accts Payable Supporting Docs Invoice PO File Requisition Requisitioner Requisition JAN

23. Requisitioner Requisitionv Req Manager Creates Requisition Approves Requisition Requisition Purchasing Agent RFQ/RFP/RFB Investigations if required Creates PO RequisitionPO Vendor Accts Payable Supporting Docs Invoice PO File Requisition Requisitioner Requisition JAN

24. Requisitioner Requisitionv Req Manager Creates Requisition Approves Requisition Requisition Purchasing Agent RFQ/RFP/RFB Investigations if required Creates PO RequisitionPO Vendor Accts Payable Supporting Docs Invoice PO File Requisition Requisitioner Requisition JAN

26. No Yes No Yes Requisitioner Requisition Manager Creates Requisition Approves Requisition Requisition Purchasing Agent Operations Mgr Mgr Approval Required? >$5000? Requisition NICKIE Approves Requisition Requisition

27. No Yes No Yes Requisitioner Requisition Manager Creates Requisition Approves Requisition Requisition Purchasing Agent RFQ/RFP/RFB Investigations if required Creates PO RequisitionPO Vendor PO File Operations Mgr Approves Requisition Requisition Mgr Approval Required? >$5000? Requisition NICKIE

28. No Yes No Yes Requisitioner Requisition Manager Creates Requisition Approves Requisition Requisition Purchasing Agent RFQ/RFP/RFB Investigations if required Creates PO RequisitionPO Vendor PO File Operations Mgr Approves Requisition Requisition Mgr Approval Required? >$5000? Requisition NICKIE

29. Requisitioner Vendor PO File NICKIE

30. Requisitioner Vendor PO File Accts Payable Invoice Receiving Dock Packing Slip Receiving Procedures Packing Slip NICKIE

31. Requisitioner Vendor PO File Accts Payable Invoice Receiving Dock Packing Slip Receiving Procedures Packing Slip ManagerPurchasing AgentOperations Mgr NICKIE

33. Purchasing Agent PO Vendor PO File TERRY Order File Customers Materials Planning File Orders Material & Creates PO Production Dept Accts Payable Invoice Production Cost System

34. OK. SO, … HOW DID YOU DO?

36. $$$ Goods & Services BUYERSELLER TRANSACTION … over time … many activities and events CYCLE

37. $$$ Goods & Services BUYERSELLER TRANSACTION … over time … many activities and events CYCLE Request Goods Negotiate Terms Receive Goods Approve Invoice Pay Invoice Order Goods Bank Reconcil’n Advertise Need Negotiate Terms Accept Order Pack, Ship Goods Bill for Goods Receive Cash Bank Reconcil’n Advertise Offering

38. Request Goods Negotiate Terms Receive Goods Approve Invoice Pay Invoice Order Goods Negotiate Terms Bank Reconcil’n Accept Order Pack, Ship Goods Bill for Goods Receive Cash Bank Reconcil’n Advertise NeedAdvertise Offering

39. Request Goods Negotiate Terms Receive Goods Approve Invoice Pay Invoice Order Goods Negotiate Terms Bank Reconcil’n Accept Order Pack, Ship Goods Bill for Goods Receive Cash Bank Reconcil’n Advertise NeedAdvertise Offering

40. Documents in the Purchasing Cycle Requisition Purchase Order Order Acknowledgement RFP RFQ RFB Packing List Bill of Lading Invoice Check Remittance Advice Check Register Receiving Voucher Bank Statement Signature Card Statement of Account

41. $$$ Goods & Services BUYERSELLER REVENUE CYCLE

42. Transaction Cycles Purchasing Cycle Acquisition Cycle Expenditure Cycle Disbursement Cycle Payable Cycle Sales Cycle Revenue Cycle Cash Receipts Cycle Cash Collections Cycle Receivables Cycle

43. JOB TITLES Sales Manager Credit Manager Sales Rep – Customer Service Order Filling (production, warehouse, etc.) Shipping Billing Accounts Receivable (cashier) Collections Clerks Cashier Controller (bank reconciliation)

44. Documents in the Revenue Cycle 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

45. Request Goods Negotiate Terms Receive Goods Approve Invoice Pay Invoice Order Goods Negotiate Terms Bank Reconcil’n Accept Order Pack, Ship Goods Bill for Goods Receive Cash Bank Reconcil’n Advertise NeedAdvertise Offering

46. 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

47. Homework Assignment 9 Reading Come up with names for the steps