Peacock

9.71 - Peacock Company: Incomplete Flowchart of Inventory and buying Control Procedures.

Peacock Company is a wholesaler of piano goods. The muniment is composed of approximately 3,500 different distributor points. The company employs a computerized batch processing clay of rules to maintain its perpetual strain records. The system is run each spend so the inventory reports are available on Monday morning for caution use. The system has been functioning satisfactorily for the past 15 months, providing the company with spotless records and timely reports.
The preparation of purchase orders is automatic as a part of the inventory system to ensure that the company ordain maintain enough inventory to meet customer demand. When an item of inventory falls below a predetermined level, a record of the inventory items is written. This record is used in conjunction with the vendor file to prepare the purchase orders.
Exception reports are prepared during the update of the inventory and the preparation of the purchase orders. These reports heed any errors or exceptions identified during the processing. In addition, the system provides for management approval of all purchase orders exceeding a qualify amount.



Any exceptions or items requiring management approval are handled by supplemental runs on Monday morning and are combined with the weekend results.
A system flowchart of Peacock Companys inventory and purchase order procedure is presented in unwrap 9.71.1.

Required:
a. The illustrated system flowchart (Exhibit 9.71.1) of Peacock Companys inventory and purchase order system was prepared in the lead the system was fully operational. Several steps that are distinguished to the successful operation of the system were inadvertently omitted from the chart. Now that the system is operating effectively, management indispensablenesss the system documentation complete and would comparable the flowchart corrected. Describe the steps that have been omitted and indicate where the...If you want to get a full essay, order it on our website: Ordercustompaper.com



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