Information flow Diagram

							Information flow Diagram
       Information Flow

The following diagram illustrates
   the information flow within
   typical manufacturing and
   wholesaling organisation.
                                          Order details



      Factory                   Delivery notes
                                                                       Suppliers
                                                    Invoices
          Requisitions
                                                                 Payments

     Warehouse                                         Credit limits
                    Copy Delivery     Accounting
                                                                          Sales
                    notes
                                                       Sales details
Re              Copy
                                                               Payments
orders          Delivery
                            Purchase                                         Orders
                notes
                            details
                                                   Invoices
  Purchasing                                                           Retailers


                            Despatch notes
The diagram shows that each functional
 area is dependent on one or more other
 area for the information it needs to
 operate.
For example: to charge the retail outlet
 (customers) for the goods supplied, the
 Accounting function requires the
 necessary sales information, which is
 supplied by the Sales function.
         Refer back to the diagram.
With this information the Accounting function
 can prepare the necessary invoices to
 send to the customers.

Similarly, Purchasing must be kept informed
  by the Warehouse (stock control) of raw
  materials which need re-ordering from
  suppliers to replenish stocks.
• A customer order is generated when a
  customer orders goods

• Credit limit details flow from Accounting to
  Sales, when a customer order is checked

• An invoice is raised when goods are
  despatched to a customer

• A payment to a supplier is triggered when
  the invoice payment falls due