1

Database

SRR PPP

Human Resources

Fixed Assets

Inventory

G/L

Projects

MRP

Example of an ERP

CRM

2

3

1

PO1

Sales Dept

Credit Limit?

Sales, Receivable, Receipts Routine

To Cr Dept forApproval

N

In stock?

Y

Back OrderRoutine

N

SO

SO Log

numeric

To Cusotmer

PO2

A

Warehouse

Pick Order

Customer File(Open)

`

PSS

Match

2

3

1

4

1

23

4

4SO

PO

PSS 4

Customer File(Sales shipped)

To customer withgoods

PSS

SO3

3

Customer File(W/H shipped)

Accounting

A

PSS2 SO

2

PO2

Match

`

`

`

SI Log

SI1

2

3

Pre-numbered

To Customer

`

`

S̀I

PO2

CK copy

PSSAR File

GL

Dr. A/R Cr. Sales

Dr. COS Cr. Inventory

Receptionist

2

SI

CK

From Customer

CK

Deposit Slip

To bank

CK copy

SI

Deposit slip

Match

Customer(Paid file)

Bank Statement Cancelled cks

3From Bank

BankReconciliation

Dr. Bank Chgs Cr. Cash

Match

`

Bk Rec'n

BankStatement

File

Bk Stat't

Cancelled CKs

SO o/s file

PO = Purchase OrderSO = Sales OrderPSS = Packing & Shipping SlipSI = Sales InvoiceCK= Cheque

Dr. Cash Cr. A/R

Y

4

Purchases, Payable, Payments

Purchasing

1

Reviewinventory level

Order?N

Stop

PO1

2

3

4

PO Log

Pre-numbered

To Vendor

Warehouse

2

GoodsArrived

Check

OK?ReturnGoodsRoutine

N

PO2

PS

PO o/s File

PS copy

ReceivingLog

Match

PO

4

PS copy

PO Rec'd File

Goods Rec'd File

A

Accounting

A

PO2

PO o/s file

Match

PO2

PS

Accrual File

3

Invoice 1

2

Match GL

Dr. Inventory Cr. A/P

Invoice1

2

PS

PO 2

A/P file

Due?N

PaymentRoutine

Y

Dr. A/P Cr Cash

Cheque

Invoice 2

To Vendor

Ck copy

Invoice

PS

PO

2

2

A/P Paid File

PO = Purchase OrderPS = Packing Slip

Y

Y

5

Payroll - Manual System

1

TimeCard

Department

Employee entershours worked, asapplicable

Supervisor /Manager review andsigns to approvetime card

Payroll Dept

TimeCardEmployeeEarningsRecord

Calculate hoursworked(a) regularhours(b) overtimehours

Pay rate

CalculateGross Pay

CalculateNet Pay

Exemptions /Deductions

A

A

PayrollRegister

Time Card

Filed by payperiod

Accounting Dept

Payroll Journal

Dr. Exp Cr. A/P

G/L

Pay Cheque ToEmployee

CashDisbursement

Journal

Dr. A/P Cr. Cash

B

B

PrepareT4 at year

end

Management Reports

To management

6

Processing of a Sales Invoice – manual system

(Part 1 of 3)

Sales Invoice

Sales Journal

A/R sub-ledger

TotalG/L

Update each customer’s record

Dr. A/R-Control

Cr. Sales

. Customer

. Invoice #

. Invoice $

7

Processing of a Sales Invoice – manual system

(Part 2 of 3)

Sales Invoice

Cost of Sales

Journal

Inventory sub-ledger

TotalG/L

Update each inventory record

Dr. COS

Cr. Inventory - Control

. Invoice #

. Inventory #

. Inventory Cost$

8

Processing of a Sales Invoice – manual system

(Part 3 of 3)

Sales Invoice

Commissions

Journal

Commissions sub-ledger

TotalG/L

Update each Salesperson’s record

Dr. Commission Expense

Cr. Commissions Payable

. Invoice #

. Salesperson

. Commission Rate

9

Database

Processing a Sales Invoice in a Database Environment(refer to Page 5)

Sales Invoice

tblCustomertblInvoiceTerms

tblSales

tblInventory

tblColorCodetblEmployee