Campbell’s Purchasing CycleIllustrated

September 23, 2015

TODAY

In-Class Exercise

Evaluating Flowcharts

Instructions• Make sure your flowchart is labeled with YOUR name• Make sure your flowchart is labeled with your P/A name• Trade Papers with someone not in your group• It can be anyone OUTSIDE your group

• Evaluator:– Write “Evaluated by:…” and your name on the lower right corner

Grading

“MORE POINTS” IS BAD.“FEWER POINTS” IS GOOD.

LIKE GOLF.

Count 1 Point if…

• Missing Flowchart Title on every page

Count 1 Point if…

• Missing date on every page

Count 1 Point if…

• Missing Company Name on every page

Count 1 Point if…

• More than 1 page, but page numbers do not appear on every page

Count 1 Point if…

• More than 1 page, with improper or incorrect usage of off-page connectors

IMPORTANT:OFF-PAGE CONNECTORS

MIGHT NOT BE NECESSARY.

Check for the following:

• Lack of terminator symbols at top of each column (1 point)

Check for the following:• Does the document symbol repeat every time a

document changes hands?

• Count 1 point for each time any document changes hands but is not repeated…

…UP TO A MAXIMUM

OF 3 POINTS

Jan and Nickie:• Is it clear that there are 2 copies of the requisition?

(1 point if not clear)

• Both copies must end up in a file (1 point if either doesn’t)

• A paper copy of the PO must go to the vendor (1 point if this is not shown)

Terry:• The computer file (the materials planning data)

must enter into the PO creation process (1 point if not)

• PO must be electronically transmitted to vendor using the thunderbolt or zig-zag arrow (1 point if not)

Are there…• Any other outright errors in the information flow?

Add 1, 2, or 3 points depending on how serious you think’s the error is…

Requisitioner

Requisition

Req Manager

CreatesRequisition

ApprovesRequisition

Requisition

Purchasing Agent

Requisition

Requisition

Requisitioner

Requisition

JAN

Requisitioner

Requisitionv

Req Manager

CreatesRequisition

ApprovesRequisition

Requisition

Purchasing Agent

RFQ/RFP/RFBInvestigations

if required

Creates PO

Requisition PO

Vendor

Supporting Docs

PO File

Requisition

Requisition

Requisitioner

Requisition

JAN

Requisitioner

Requisitionv

Req Manager

CreatesRequisition

ApprovesRequisition

Requisition

Purchasing Agent

RFQ/RFP/RFBInvestigations

if required

Creates PO

Requisition PO

Vendor

Accts Payable

Supporting Docs

Invoice

PO File

Requisition

Requisition

Requisitioner

Requisition

JAN

Requisitioner

Requisitionv

Req Manager

CreatesRequisition

ApprovesRequisition

Requisition

Purchasing Agent

RFQ/RFP/RFBInvestigations

if required

Creates PO

Requisition PO

Vendor

Accts Payable

Supporting Docs

Invoice

PO File

Requisition

Requisition

Requisitioner

Requisition

JAN

Requisitioner

Requisitionv

Req Manager

CreatesRequisition

ApprovesRequisition

Requisition

Purchasing Agent

RFQ/RFP/RFBInvestigations

if required

Creates PO

Requisition PO

Vendor

Accts Payable

Supporting Docs

Invoice

PO File

Requisition

Requisition

Requisitioner

Requisition

JAN

Requisitioner

Requisitionv

Req Manager

CreatesRequisition

ApprovesRequisition

Requisition

Purchasing Agent

RFQ/RFP/RFBInvestigations

if required

Creates PO

Requisition PO

Vendor

Accts Payable

Supporting Docs

Invoice

PO File

Requisition

Requisition

Requisitioner

Requisition

JAN

Requisitioner

Requisitionv

Req Manager

CreatesRequisition

ApprovesRequisition

Requisition

Purchasing Agent

RFQ/RFP/RFBInvestigations

if required

Creates PO

Requisition PO

Vendor

Accts Payable

Supporting Docs

Invoice

PO File

Requisition

Requisition

Requisitioner

Requisition

JAN

Requisitioner

Requisitionv

Req Manager

CreatesRequisition

ApprovesRequisition

Requisition

Purchasing Agent

RFQ/RFP/RFBInvestigations

if required

Creates PO

Requisition PO

Vendor

Accts Payable

Supporting Docs

Invoice

PO File

Requisition

Requisition

Requisitioner

Requisition

JAN

Requisitioner

Requisitionv

Req Manager

CreatesRequisition

ApprovesRequisition

Requisition

Purchasing Agent

RFQ/RFP/RFBInvestigations

if required

Creates PO

Requisition PO

Vendor

Accts Payable

Supporting Docs

Invoice

PO File

Requisition

Requisition

Requisitioner

Requisition

JAN

Requisitioner

Requisitionv

Req Manager

CreatesRequisition

ApprovesRequisition

Requisition

Purchasing Agent

RFQ/RFP/RFBInvestigations

if required

Creates PO

Requisition PO

Vendor

Accts Payable

Supporting Docs

Invoice

PO File

Requisition

Requisition

Requisitioner

Requisition

JAN

No

Yes

No

Yes

Requisitioner

Requisition

Manager

CreatesRequisition

ApprovesRequisition

Requisition

Purchasing Agent

Operations Mgr

Mgr ApprovalRequired?

>$5000?

Requisition

Requisition

Requisition

Requisition

NICKIE

ApprovesRequisition

Requisition

No

Yes

No

Yes

Requisitioner

Requisition

Manager

CreatesRequisition

ApprovesRequisition

Requisition

Purchasing Agent

RFQ/RFP/RFBInvestigations

if required

Creates PO

Requisition PO

Vendor

PO File

Operations Mgr

ApprovesRequisition

Requisition

Mgr ApprovalRequired?

>$5000?

Requisition

Requisition

Requisition

Requisition

NICKIE

No

Yes

No

Yes

Requisitioner

Requisition

Manager

CreatesRequisition

ApprovesRequisition

Requisition

Purchasing Agent

RFQ/RFP/RFBInvestigations

if required

Creates PO

Requisition PO

Vendor

PO File

Operations Mgr

ApprovesRequisition

Requisition

Mgr ApprovalRequired?

>$5000?

Requisition

Requisition

Requisition

Requisition

NICKIE

Requisitioner

Vendor

PO File

NICKIE

Requisitioner

Vendor

PO File

Accts PayableInvoice

Receiving Dock

Packing Slip

ReceivingProcedures

Packing Slip

NICKIE

Requisitioner

Vendor

PO File

Accts PayableInvoice

Receiving Dock

Packing Slip

ReceivingProcedures

Packing Slip

Manager Purchasing AgentOperations Mgr

NICKIE

Purchasing Agent

PO

Vendor

PO File

TERRY

Order File

Customers

Materials Planning

File

Orders Material& Creates PO

Production Dept

Accts PayableInvoice

ProductionCost System

OK. SO, …

HOW DID YOU DO?

$$$

Goods & Services

BUYER SELLER

TRANSACTION… over time… many activities and events

CYCLE

$$$

Goods & Services

BUYER SELLER

TRANSACTION… over time… many activities and events

CYCLE

Request Goods

Negotiate Terms

Receive Goods

Approve Invoice

Pay Invoice

Order Goods

Bank Reconcil’n

Advertise Need

Negotiate Terms

Accept Order

Pack, Ship Goods

Bill for Goods

Receive Cash

Bank Reconcil’n

Advertise Offering

Request Goods

Negotiate Terms

Receive Goods

Approve Invoice

Pay Invoice

Order Goods

Negotiate Terms

Bank Reconcil’n

Accept Order

Pack, Ship Goods

Bill for Goods

Receive Cash

Bank Reconcil’n

Advertise Need Advertise Offering

Request Goods

Negotiate Terms

Receive Goods

Approve Invoice

Pay Invoice

Order Goods

Negotiate Terms

Bank Reconcil’n

Accept Order

Pack, Ship Goods

Bill for Goods

Receive Cash

Bank Reconcil’n

Advertise Need Advertise Offering

Documents in the Purchasing Cycle

Requisition

PurchaseOrder Order

Acknowledgement

RFP

RFQ

RFB

Packing List

Bill ofLading

Invoice

CheckRemittanceAdviceCheck

Register

ReceivingVoucher

BankStatement

SignatureCard

Statement of

Account

$$$

Goods & Services

BUYER SELLER

REVENUE CYCLE

Transaction Cycles

• Purchasing Cycle• Acquisition Cycle• Expenditure Cycle• Disbursement Cycle• Payable Cycle

• Sales Cycle• Revenue Cycle• Cash Receipts Cycle• Cash Collections Cycle• Receivables Cycle

JOB TITLES• Sales Manager• Credit Manager• Sales Rep – Customer Service• Order Filling (production, warehouse, etc.)• Shipping• Billing• Accounts Receivable (cashier)• Collections Clerks• Cashier• Controller (bank reconciliation)

Documents in the Revenue Cycle• Credit Application• Sales Order• Order Acknowledgement• Picking Ticket (Filling ticket, etc.)• Packing Slip (Picking ticket? Filling ticket?)• Shipping Advice• Bill of Lading (Shipping Manifest)• Billing Invoice• Statement of Account• Dunning Notice• Remittance Advice• Customer Check• Deposit Slip (deposit ticket)• Deposit Receipt (Cash Report)• Bank Statement

Request Goods

Negotiate Terms

Receive Goods

Approve Invoice

Pay Invoice

Order Goods

Negotiate Terms

Bank Reconcil’n

Accept Order

Pack, Ship Goods

Bill for Goods

Receive Cash

Bank Reconcil’n

Advertise Need Advertise Offering

Learning Objectives for Unit 10

Upon completion of Unit 10 the student will be able to: 1. Recognize and identify the alternate names for the Revenue (Sales)

Transaction Cycle.

2. Name and describe the job titles and responsibilities in the Revenue Cycle.

3. Name and describe the documents used in the Revenue Cycle

4. Describe the document flows within the Revenue Cycle

Homework Assignment 9

ReadingCome up with names for the steps