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Dan Tragg insists on using only the highest quality blanks in the manufacturing of his surfboards. Tragg’s uses a list of approved vendors with whom they have established a good relationship over the years.
The blanks are purchased when a production supervisor recognizes a need for inventory. The supervisor goes to his or her terminal and completes a Purchase Order Form online. This is done by selecting the vendor, the inventory item, and the amounts to be ordered. The order can be for one type of blank or for several types. The Purchase Order Form is reviewed by a Purchasing Agent. If it is approved, a Purchase Order Report is prepared, printed, and mailed to the selected vendor.
The goods are received and counted by the Receiving Clerk. The Receiving Clerk enters the date, the PO number, and the Vendor’s Invoice Number in the top portion of the form. In addition, the Clerk must enter the Inventory ID number and the quantity received in the form.
If the order is in agreement with the Purchase Order, it is scheduled for payment. Tragg’s sometimes pays for more than one invoice (receipt of inventory) with each check (cash disbursement). In addition, on occasion they have placed very large orders and have paid for those orders in installments.
You will apply the REA Model and use Microsoft Access software to complete the case analysis of the expenditure cycle described above.
Requirements
1. Identify the resources, events and agents.
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