Chapter 10 Cases:
Internet Case 10.1
The Law Firm of Dewey, Tryam & Howe
The organization of the law firm of Dewey, Tryam & Howe consists of the three founding partners at the top of the organization and two departments that report to them: administration (secretaries) and the paralegals who perform the legal research. Because it is a small firm, the only automated information processes are performed by TIMEBILL, the purchased time and billing software package that runs on an office workstation. Although the firm performs services on a contingency and a flat-fee basis, our description here presents only the flat-fee services (wills, divorces, real estate purchases, and sales).
Flat-fee billing occurs on a monthly basis when the TIMEBILL software summarizes the billable hours for each client. Billable hours occur when the lawyers or paralegals perform services for the client.
When a lawyer receives a request for legal services from a client, he or she completes a client information sheet—a form containing such information as the client’s address, the work description, billing rate codes, and the billing statement option chosen by the client. The lawyer sends one copy of the client information sheet to a paralegal who performs the research for the client and files a motion in the courthouse. After the paralegal receives verification from the courthouse, he or she sends the completed research to the lawyer. The paralegal records the time spent on each case on a timesheet and sends the timesheet to a secretary.
In the meantime, the lawyer has sent the second copy of the client information sheet to a secretary, who keys the client information into the TIMEBILL system where it is entered on the Client File. As client information is input, TIMEBILL checks the rate codes against existing codes in the Rate File. The secretary resolves any discrepancies and immediately keys in any corrections.
Lawyers complete timesheets as they perform services. These timesheets are sent to a secretary who keys them into the TIMEBILL system along with those timesheets received from the paralegals. Timesheet data are recorded by the system on the Timekeeping File. As timesheets are being entered, the TIMEBILL system checks the Rate File to verify rates and transaction codes, and checks the Client File to determine the accuracy of the input client data. The secretary resolves any discrepancies and immediately keys in any corrections.
Monthly, the computer accumulates billable hours for each client from the Timekeeping File, records these charges on the Client File, and prints a three-part bill reflecting the current status of each client’s account. The secretary who prints the bills sends one to the lawyer, one to the client, and files one copy.
Internet Case 10.2
Astro Athletic Supply Company
Astro Athletic Supply Company specializes in selling sporting goods, gymnasium equipment, and other athletic supplies to high schools and colleges. The company handles both written and telephone orders, using the following procedures.
One of several company-employed field sales representatives records customer orders on a three-part form (Form 191A). The original is left with the customer, the duplicate is mailed to central headquarters each day in a special color-coded envelope, and the triplicate is retained in the sales representative’s order pad. When the written orders arrive at headquarters, they go directly to the secretary of the order entry department. The secretary initially receives all telephone orders and inquiries as well.
The secretary routes inquiries to the customer service representatives and directs both written and telephone orders to one of three order entry clerks. Telephone orders are transcribed onto Form 191B and then read back to the customer for confirmation. Because both written and telephone orders are now in written form, further processing of Forms 191A and 191B is identical.
All customer orders are entered through VDT terminals located in order entry. They undergo a series of programmed edits as part of the data entry process. One of the edits is to validate the customer’s name(s), address(es), freight and credit terms, and credit rating by referencing the customer master file (Note: all computer files are kept on disk). The inventory master file is accessed to check inventory availability.
Orders that pass all these tests are then recorded on the sales order master file; the inventory balance is reduced, and a screen message informs the clerk of the updates. The clerk files the accepted customer orders by customer number. Orders that fail any of the edits or validations are recorded in a computer “suspense” file for later investigation.
Each evening, data processing prints five-part sales orders (Form 191C) from the data stored on the sales order master file. Order entry receives two copies of the sales order; it files copy 2 in the accepted order file and mails the original (copy 1) to the customer. Copies 3 and 4 are sent to the warehouse, and copy 5 is sent to accounts receivable. Using copy 3, warehouse workers pick the goods. They file copy 3 and deliver the goods and copy 4 to the shipping department.
A shipping clerk checks the assembled order against sales order copy 4, prepares a three-part shipping notice (Form 191D), and records the shipment in a shipping log. The shipping notice original, signed by the carrier, serves as the bill of lading; sales order copy 4 is used as the packing slip. The bill of lading and packing slip accompany the goods to the customer. The duplicate of the shipping notice is sent to accounts receivable; the triplicate is sent to order entry, where it is filed in the accepted order file.
Internet Case 10.3
Samson Manufacturing Company (I)
Although Samson Manufacturing Company employs a computer to assist in many functions, its OE/S process procedures are manual. Those procedures are described in the following paragraphs.
A three-part sales order is prepared in the sales department from either:
• a customer purchase order received by mail, or via telephone.
• information taken by sales clerks from customers.
The original of the order is sent to the customer as an acknowledgment of his order; the duplicate copy is sent to the finished goods warehouse; and the triplicate is filed in numerical order (together with the customer purchase order in the case of orders received by mail).
In the finished goods warehouse, copy 2 of the sales order is used as a picking ticket. Quantities pulled for shipment are noted in the “shipped” column; quantities not available (i.e., to be back ordered) are noted in the “back order” column; and the order is initialed by the picking clerk. This copy of the order is placed with the goods and is sent to the shipping department.
The shipping clerk prepares a three-part packing slip and a three-part bill of lading. The distribution of the packing slip copies is as follows:
1. Original: to customer with goods.
2. Duplicate: to sales department for filing.
3. Triplicate: filed by date with triplicate of bill of lading.
The distribution for the bill of lading is as follows:
1. Original: customer copy.
2. Duplicate: common carrier copy.
3. Triplicate: (signed by carrier) filed with triplicate of packing slip by shipment date.
At this time, copy 2 of the sales order is forwarded to the data control group in the computer center.
Internet Case 10.4
Lowcountry Bank
Coin & Currency (C&C) is an operating unit of the Lowcountry Bank in Beaufort, South Carolina. C&C operations are supported by an in-house Digital Equipment Corporation (DEC) server. The following narrative describes the procedures that C&C uses to process shipments of coin and currency to various companies in the greater Beaufort area.
Telephone orders from customers are received in the order entry office, where a clerk takes the call and prepares a “Cash Order” ticket. The ticket is given to another clerk who enters the order into the computer. The input is edited online (input compared to data stored on the Customer file) to check for authorized customer, authorized caller name, authorized amount, and so on. The order is assigned a unique order number, and a record is created on the Order file. The Inventory file—records of coin and currency that the bank has in its vault—is updated to indicate the reserved status for the amounts ordered. The cash order ticket is filed by the clerk who entered the order.
On the following day, a clerk in the order preparation unit displays orders to be shipped that day. For each order, the computer screen indicates the amounts of each type of currency to be placed into an order basket. The clerk asks the computer to print a shipping label, puts the label into the basket with the order, and sends the basket to the order bagging unit. As the shipping label is being printed, the computer updates the Order file to indicate the current status of the order.
In the order bagging unit, a clerk enters the order number and the amounts contained in the basket. The computer compares these amounts to the order; and, if the amounts agree, updates the Order file and the Inventory file (inventory status changed from on-hand/reserved to bulk). The clerk sews the order into a bag and sends the bag to the shipping department.
As armored car carriers arrive at the shipping department, a shipping clerk keys in the carrier’s code to call up the orders for the carrier. The computer prints a “Carrier shipment list” (a list of orders to be picked up by that carrier), reduces the bulk quantity on the Inventory file, updates the Order file, and posts the shipments to the Transaction file (for subsequent posting to customer accounts). The shipping clerk obtains the carrier’s signature on the carrier shipment list and the carrier takes the orders and the attached shipping labels. The signed carrier shipment list is filed in the shipping department.