Suppose Sunrise Bakery (SB) purchases flour from Prairie Gra…
Suppose Sunrise Bakery (SB) purchases flour from Prairie Grain Mills (PGM). Both companies use integrated ERP systems to manage operations and accounting. Prairie Grain Mills requires payment within 30 days (net 30 terms) and uses the accrual basis of accounting. Assume no returns or discounts unless you state otherwise. If you make additional assumptions, state them. Part A) List, in sequence, the major business activities in the order-to-cash (O2C) process for Prairie Grain Mills. Part B) List, in sequence, the major business activities in the purchase-to-pay (P2P) process for Sunrise Bakery. Part C) After Prairie Grain Mills ships the flour to Sunrise Bakery, which accounts on Prairie Grain Mills’ financial statements change, if any? Indicate whether each account increases or decreases. Part D) When Sunrise Bakery receives the flour, which accounts on Sunrise Bakery’s financial statements change, if any? Indicate whether each account increases or decreases. Part E) Name one business document exchanged in these processes that could be automated using Electronic Data Interchange (EDI).
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