You are on the management team for this business, Sim Inc. Sim Inc. buys goods wholesale and sells them to customers. You have more than 10,000 customers and the business processes over 500,000 transactions per year (including sales orders, purchase orders, cash receipts, cash disbursements, payroll, etc.) The current process is mostly manual, and customers place orders by phone. The orders are taken by the billing associate and then sent to warehouse/shipping for fulfillment and then shipped to customers. Your billing supervisor generates invoices and bills customers for payment and payments are mailed back to your location. Mail is typically opened and sorted by the billing associate. Sim Inc. utilizes a purchasing and warehouse department to collect purchase requests and prepare purchase orders. The purchase orders are sent to the vendors, good are received in the receiving department located in the front of the warehouse. 

The AP/CD department processes vendor invoices and makes payments. (Vendor payment checks are signed by the Treasurer.) Currently, each department (Sales, Billing, AP/Purchases/Warehouse, and HR/Finance) only has two employees besides the managers. The managers (your team) are nearly at capacity and cannot serve as a 3rd employee for any of the individual departments without incurring a cost or losing revenue. The management team is responsible for duties associated with: Treasurer, Controller, Financial Reporting, Strategic Decisions, VP, and President. Your current business nets $300,000 per month. This year, your company issued Common Stock resulting in $700,000 of cash available for process improvement and internal controls. Next year will be the first year management is responsible for certifying that Internal Controls are effective and the financial statements are accurate. If the Sim Inc. is able to generate a 20% increase in sales it is likely that a second round of common stock will be issued for $500,000 AND each member of the management team will receive $100,000 in stock options.

Level 0 DFD’s and Level 1 DFD’s (if appropriate) for each business process after the controls we have picked are

Billing /account receivable Based on controls below

1 Single process automation - billing and accounts receivable process - (improves efficiency and includes preformatted screens, online prompting, populate input screens with master data)

2 Additional employee in B/AR

3. Single process automation - billing and accounts receivable process - (improves efficiency and includes preformatted screens, online prompting, populate input screens with master data).

Answer rating: 100% (QA)

Description You are on the management team for this business Sim Inc Sim Inc buys goods wholesale and sells them to customers You have more than 10000 customers and the business processes over 500000 ... View the full answer