ASSIGNMENT$\_$IM$341\_$Motor Buildi...

IM$341$ Documentation Case Scenario

Motor Building Industry $($MBI$)$ Incorporated develops and manufactures natural$-$gas powered motors. Capital tools are the larger, more$-$prominent assets of the organization. Because of their long life and significant value, considerable attention is devoted to their acquisition and use. The following procedures are used in acquiring capital tools for MBI Inc. $($Note: Any online files in the scenario below refer to disk files.$)$

A capital tool is defined as any individual item that costs over $$10,000.$ Capital tools must be requested by a department manager and reviewed by the capital tool planning committee before they are submitted to the purchasing department. When a manager needs a capital tool, he or she accesses an online capital tool purchase request reference$/$help file and uses a customized computer application to complete the purchase request application. A copy of the completed request form record is stored in an online request transaction file.

The capital tool planning committee chair monitors the request transaction file for new records and reviews the purchase request for accuracy and completeness. Completed form records are updated $($marked reviewed and approved$)$ and printed. The paper copy of the completed request form is then forwarded to MBI's purchasing department.

MBI uses a supply chain software package that allows them to send an electronic copy of the order directly to the appropriate vendor. To generate the electronic purchase order, the purchasing department manager uses the request form received from the capital tool planning committee chair, along with an online vendor catalog file, to create a purchase order record in the purchase order transaction file. The corresponding online purchase request transaction file record is updated to give it a status of "ordered". The manager files the request hardcopy in a processed request $($paper$)$ file. The documents are stored by requesting department code.

When a potential shipment is received, the receiving clerks at the dock uses their computers to access the purchase order transaction file and confirm the order. The clerks receive the tools, inspect them, and use an online application to create a receiving report in the receiving transaction file. The corresponding record in the purchase order transaction file is updated to note that the order was received. The receiving clerks then route the tool to the department that originally requested it$.$ Receiving clerks print a hardcopy of the receiving report and send it to the treasury department.

MBI has contracts with their vendors that require them to pay for each capital tool purchase as close to the time of receipt as possible. In return, MBI receives significant cost savings from their vendors.