payroll cycle

there are two groups - human resources and accounting. which group is responsible for payroll?

accounting.

human resources: recruiting, hiring, training, compensation and benefits

what is the difference between a business process diagram, document flowchart, and data flow diagram, and level 0 diagram?

business process diagram: big picture (main ACTIVITIES)

document flowchart: shows the business process diagram in MORE DETAIL. shows documents and controls.

data flow digram: if a company doesn’t use documents, but instead uses technology, then use this diagram for a BIG PICTURE.

level 0 data diagram: the business process diagram in MORE DETAIL for companies with technology/no documents

what is business process diagram?

BIG PICTURE diagram that shows the main activities of the company.

what is document process diagram?

shows the business process in MORE DETAIL. shows the documents and controls (for paper-based system)

what is a data flow diagram?

Shows the big picture of a company that doesn’t use documents not have documents- has entities and technologies used

what is a level 0 diagram

It is the data flow diagram in more depth.

why do we have a separate payroll bank account?

to minimize risk, so employees cannot maliciously tinker with money. we will move the appropriate amount of money from our regular bank account to payroll account.

if excess money in the payroll account: means someone hasn’t cashed the check yet

if negative balance in payroll account: means someone cashed a check that was unauthorized.

who creates the disbursement voucher

accounts payable

what does the payroll clearing account include?

gross pay:

(this includes net pay, and all the taxes, benefits, insurance, etc)

does accounts payable pay directly to the employee?

no, AP creates the ONE sum check that goes to payroll clearing account