Vicenzo Sdn. Bhd. is a chocolate bar manufacturing company that exports its products to other countries. In order to pay employees’ salaries, the company requires employees to use a time clock to log their working hours. The payroll process started when production supervisor sends the employee’s timecard to the payroll department once a week. The supervisor also sends job tickets to the cost accounting department to be entered into the system, where they are allocated to labour cost and production overhead cost to the work in process (WIP) account. When the timecard is received, the payroll department clerk makes an entry for the details of timecard into the terminal to reconcile and update the employee’s payroll records, as well as create two copies of payroll register and employee’s pay checks. 

The first copy of the payroll register, along with the timecard, is filed in this department, and the second copy is sent to the accounts payable (AP) office. The pay checks are then printed, signed, and sent to the supervisor for distribution to the employees. Using a copy of payroll register obtained from the payroll department, the AP clerk provides two copies of cash disbursement vouchers, one of which is sent to the general ledger (GL) department and the another to the cash disbursement department, along with the payroll register. The cash disbursement clerk uses both documents (cash disbursement voucher and payroll register) to issue payroll checks. After that, the payroll check is signed and sent to the bank for deposit. Meanwhile, the cash disbursement voucher, a copy of the payroll check, and the payroll register are kept at the cash disbursement department. The GL Department uses cash disbursement voucher details to update general ledger accounts digitally. A copy of this voucher is then stored at this department.

REQUIRED: 

Prepare the following diagrams to represent the payroll process at Vicenzo Sdn. Bhd.:

(a) A context diagram. (6 Marks)

(b) A system flowchart. (13 Marks)