PUTERI INTAN SAFINAZ SCHOOL OF ACCOUNTANCY

BKAS2013 ACCOUNTING INFORMATION SYSTEMS

EXERCISE: REVENUE CYCLE

Cute Kids Costumes (CKC) Sdn Bhd is a wholesaler that provides variety of event costumes for
kids’ parties, birthdays, and school events. CKC maintains a website that displays all the
costumes and prices for each item. Customers who would like to place order will have to fill in
the sales order form available in the website.

The sales process begins with the customer placing an order through the company’s website.
The sales order forms filled in by the customers will be electronically retrieved in the sales
department. The system accesses the customer file to perform credit check. Upon approval, the
system prints out a packing slip which will be sent to the warehouse, a shipping notice to the
shipping department and an invoice to the billing department. The sales order form is saved in
the open sales order file in the computer.

When the packing slip is received by the warehouse clerk, the warehouse clerk picks the goods
according to the packing slip. The warehouse clerk will then update the inventory file. The
packing slips together with the goods are sent to the shipping department. At the shipping
department, the shipping notice and the packing slip are reconciled and goods are sent to the
customer together with the shipping notice. The packing slip is filed for further reference.

Upon receipt of the invoice by the billing department, the billing department clerk will reconcile,
add prices and bill the customers. The customer file is then updated. The sale is recorded in the
journal and the journal voucher is sent to the general ledger department and the invoice is sent to
the customer.

REQUIRED:

(a) Create a context diagram for CKC Sdn Bhd sales order system.

(b) Create a logical data flow diagram level 0 for CKC Sdn Bhd sales order system process.

(c) Prepare a system flowchart for CKC Sdn Bhd that shows the activities in the sales
department and warehouse department.