Please createa flowchart from Cathy Apples interview on the payroll process at Black

Squirrel Bikes, a manufacturer of high performance bicycles and bike

accessories. Ms. Nightly doesnt mention it, but Black Squirrel Bikes uses SAP

as its ERP system. We will learn more about SAP later in the class.

Cathy Apple, from internal audit, interviews Irene Patricia I.P

.

Nightly Payroll Supervisor

CA: Mrs. Nightly, Im Cathy Apple from internal audit. Thanks for meeting

with me.

IP:

Cathy, please call me I. P. What can I do for you?

CA: I need to document the payroll process. I know we produce checks

weekly but I am a little unclear on the details.

IP:

I think I can help you. First time data are recorded in each department

online into the payroll time cards transaction file for office staff and using

clocks with badge readers in the warehouse. It is annoying at night when

people forget to clock out and we have to record time by hand. We end our

payroll week on Sunday and on Monday each department supervisor must

review the time card data and approve it by noon. Betsy, the payroll clerk,

then prints off a detail time report and reviews all the payroll transaction

data submitted to be sure it is complete. She tracks down missing data and

enters any corrections. She also gets the file of employee information

update transactions from the Human Resources department. Things like

change of address, deductions, new pay rate, etc.

CA:

Is the file from human resources on paper?

IP:

No it is on the computer in Excel.

First, Betsy applies the human resources transactions to update the

employee master file by running the master file update process in the payroll

system. Then she runs the payroll calculation process using the payroll time

cards transaction file and the updated employee master file to generate

employees paychecks. Actually we generate pay stubs to give to the

employees; we pay via direct deposit. The money is transfer from our payroll

account into the employees checking account based upon the payroll

deposit file generated during the payroll calculation process. We send this

file to the bank. Several reports are produced for management. In addition,

federal and state withholding reports are produced for tax purposes.

I think that wraps it up. Any questions?

CA: I think I have got it. We have three files, the payroll time cards

transaction file, the human resources transactions file and the employee

master file.

IP:

That is correct. Plus the payroll deposit file we send to the bank.