Below Is a Narrative of the "Establish Payable" Portion (Bubble

question 36

Essay

Below is a narrative of the "Establish payable" portion (bubble 1.0)of the AP/CD process described in Chapter 13.
Narrative Description
The first step in establishing the payable involves validating the vendor invoice.This process is triggered by receipt of the vendor invoice.Process 1.1 comprises a number of steps.First,the vendor invoice is matched against vendor master data to determine that the invoice is from an authorized vendor.Next,the vendor invoice is compared against the PO data (see the flow PO accounts payable notification)to make sure that there is a PO (i.e. ,there is an authorized purchase)and that the invoiced items,quantities,and prices conform to the PO.Then,the invoice is matched against the receiving report data to determine that the items and quantities have been received.Finally,the invoice is further validated by checking for accuracy of terms,computed discounts,extensions,and total amount due.Note that the vendor master data is updated at this point to reflect purchase history data.
If the data items do not agree,the invoice is rejected,and follow-up procedures are initiated (see the reject stub emanating from bubble 1.1).If the data items agree,the invoice is approved,and the validated invoice is sent on to the next step to be used to record the payable.Bubble 1.2 depicts the process of recording the payable in the purchase events data and accounts payable master data.A payable is recognized and recorded by:

Required:
From the DFD (TB Figure 13.3)and the narrative description above,explode bubble 1.0 into a lower-level diagram showing the details of that process.

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Definitions:

Political Issues

Challenges and factors related to government policies, regulations, or political stability that can affect business operations.

Ethical Issues

Moral problems or dilemmas that arise in the context of professional practices or business operations, often requiring careful thought or action.

Price Skimming

A pricing strategy where a seller charges a relatively high price for a product at first, then lowers the price over time.

Customer Behaviour

Patterns and tendencies among consumers that influence their purchasing decisions and interactions with brands.