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5-17. The order-writing department at the Winston Beauchamp Company is managed by Alan Most. The department keeps two types of computer les: (1) a customer le of authorized credit customers and (2) a product le of items currently sold by the company. Both of these les are direct-access les stored on magnetic disks. Customer orders are handwritten on order forms with the Winston Beauchamp name at the top of the form, and item lines for quantity, item number, and total amount desired for each product ordered by the customer. When customer orders are received, Alan Most directs someone to input the information at one of the departments computer terminals. After the information has been input, the computer program immediately adds the information to a computerized order le and prepares ve copies of the customer order. The rst copy is sent back to Alans department; the others are sent elsewhere. Design a system owchart that documents the accounting data processing described here.

5-24. The Berridge Company (Document Flowcharts) The Berridge Company is a discount tire dealer that operates 25 retail stores in a metropolitan area. The company maintains a centralized purchasing and warehousing facility and employs a perpetual inventory system. All purchases of tires and related supplies are placed through the companys central purchasing department to take advantage of the quantity discounts offered by its suppliers. The tires and supplies are received at the central warehouse and distributed to the retail stores as needed. The perpetual inventory system at the central facility maintains current inventory records, which include designated reorder points, optimum order quantities, and balance-on-hand information for each type of tire or related supply. The participants involved in Berridges inventory system include (1) retail stores, (2) the inventory control department, (3) the warehouse, (4) the purchasing department, (5) accounts payable, and (6) outside vendors. The inventory control department is responsible for maintenance of the perpetual inventory records for each item carried in inventory. The warehouse department maintains the physical inventory of all items carried by the companys retail stores. All deliveries of tires and related supplies from vendors are received by receiving clerks in the warehouse department, and all distributions to retail stores are lled by shipping clerks in this department. The purchasing department places every order for items needed by the company. The accounts payable department maintains the subsidiary ledger with vendors and other creditors. All payments are processed by this department. The documents used by these various departments areas follows: Retail Store Requisition (Form RSR). The retail stores submit this document to the central warehouse whenever tires or supplies are needed. The shipping clerks in the warehouse department ll the orders from inventory and have them delivered to the stores. Three copies of the document are prepared, two of which are sent to the warehouse, and the third copy is led for reference.

Purchase Requisition (Form PR). An inventory control clerk in the inventory control depart-mint prepares this document when the quantity on hand for an item falls below the designated reorder point. Two copies of the document are prepared. One copy is forwarded to the purr-chasing department, and the other is led. Purchase Order (Form PO). The purchasing department prepares this document based on information found in the purchase requisition. Five copies of the purchase order are prepared. The disposition of these copies is as follows: copy 1 to vendor, copy 2 to accounts payable department, copy 3 to inventory control department, copy 4 to warehouse, and copy 5 led forreference. Receiving Report (Form RR). The warehouse department prepares this document when ordered items are received from vendors. A receiving clerk completes the document by indicating the vendors name, the date the shipment is received, and the quantity of each item received. Four copies of the report are prepared. Copy 1 is sent to the accounts payable department; copy 2 to the purchasing department, and copy 3 to the inventory control department. Copy 4 is retained by the warehouse department, compared with the purchase order form in its les, and led together with this purchase order form for future reference. Invoices. Invoices received from vendors are bills for payment. The vendor prepares several copies of each invoice, but only two copies are of concern to the Berridge Company: the copy that is received by the companys accounts payable department and the copy that is retained by the vendor for reference. The accounts payable department compares the vendor invoice with its le copy of the original purchase order and its le copy of the warehouse receiving report. Based on this information, adjustments to the bill amount on the invoice are made (e.g., for damaged goods, for trade discounts, or for cash discounts), a check is prepared, and the payment is mailed to the vendor.

Requirements: Draw a document owchart for the Berridge Company using symbols Could the company eliminate one or more copies of its RSR form? Use your owchart to explain why or why not. Do you think that the company creates too many copies of its purchase orders? Why or why not?