Core Concepts of Accounting Information Systems 12th Edition by Carolyn Strand Norman, Mark Simkin

Exercise 21

Develop a document flowchart for the following information flow. The individual stores in the Mark Goodwin convenience chain prepare two copies of a goods requisition form (GRF) when they need to order merchandise from the central warehouse. After these forms are completed, one copy is filed in the store's records and the other copy is sent to the central warehouse. The warehouse staff gets the order and files its copy of the GRF form in its records. When the warehouse needs to restock an item, three copies of a purchase order form (POF) are filled out. One copy is stored in the warehouse files, one copy goes to the vendor, and the third copy goes to the accounts payable department.