AIS PowerPoint Presentations
Download
Report
Transcript AIS PowerPoint Presentations
Chapter
7-1
Chapter 7:
Accounting Information Systems
and Business Processes - Part I
Introduction
Business Process Fundamentals
Collecting and Reporting Accounting
Information
The Sales Process
The Purchasing Process
Current Trends in Business Processes
Chapter
7-2
Business Process Fundamentals
Overview of the Financial Accounting Cycle
Journals
Ledgers
Trial Balances
Financial Statements
Chapter
7-3
Journals
Chronological record of business events by
account
General Journal
Records any type of accounting transaction
Special Journals
Captures specific types of transactions
Chapter
7-4
Types of Special Journals
Sales Journal
Record of credit sales transactions
Purchases Journal
Record of credit purchase transactions
Cash Receipts Journal
Record of transactions involving receipts of cash
Cash Disbursements Journal
Record of transactions involving disbursements of
cash
Chapter
7-5
Ledgers
General Ledger
Contains detailed monetary information
Includes the assets, liabilities, owners’ equity,
revenues, and expenses of the company
Chart of Accounts
Listing of all accounts used by the company
Provides organizational structure for the general
ledger
Utilizes block coding structure
Chapter
7-6
Trial Balances
Listing of all accounts with the debit and
credit balances
Timing of Preparation
After all journal entries are posted
Following the posting of adjusting entries
Following the posting of closing entries
Chapter
7-7
Financial Statements
Primary output of financial accounting
system
Main Financial Statements
Income Statement
Balance Sheet
Statement of Owners’ Equity
Statement of Cash Flows
Chapter
7-8
Steps in the Accounting Cycle
Chapter
7-9
Coding Systems
Importance of Coding for AISs
Record, store, classify, and retrieve information
Utilize numeric and alphanumeric codes
Design Considerations
Must serve a useful purpose
Must be consistent
Plan for future expansion
Chapter
7-10
Block Code Example
Chapter
7-11
Study Break #1
Which of the following provides the organizational structure
for the general ledger?
A. Special Journals
B. A source document
C. General journals
D. The chart of accounts
Chapter
7-12
Collecting and Reporting
Accounting Information
Design Considerations
Should be effective
Expectations of outputs
Outputs of an AIS
Reports to management
Reports to investors and creditors
Files retaining transaction data
Files retaining current data about accounts
Chapter
7-13
Example of a Report
Chapter
7-14
Source Documents
Manage flow of accounting data
Dictate type of data collected
Encourage completeness of data
Distributors of information
Establish authenticity of data
Usage today
Extensively used in AISs
Movement from paper to electronic format
Chapter
7-15
Sample Purchase Order
Chapter
7-16
Sample Sales Invoice
Chapter
7-17
Business Process
Definition
Collection of activities
Creates value for organization
AIS collects and reports data related to processes
Economic event
Impacts financial statements
Business event
Does not impact financial statements
Chapter
7-18
The Sales Process
Process
Begins with customer order
Ends with collection of cash
Primary Objectives of Sales Process
Process sales in a timely and efficient manner
Collect cash in a timely and efficient manner
Chapter
7-19
Objectives of the Sales
Process
Tracking sales of goods and/or services to
customers
Filling customer orders
Maintaining customer records
Billing customers for goods and services
Collecting payment for goods and services
Forecasting sales and cash receipts
Chapter
7-20
Data Flow Diagram of Sales
Process
Chapter
7-21
Inputs to the Sales Process
Sales Order
Created at time of sale
Used to prepare the sales invoice
Sales Invoice
Reflects information of the sale
Products purchased, price, terms of payment
Remittance Advice
May accompany payment
Chapter
7-22
Inputs to the Sales Process
Shipping Notices
Prepared when warehouse releases goods
Copy possibly included with goods
Additional copy sent to accounts receivable
Debit/Credit Memoranda
Denotes return of damaged goods
Identifies discrepancies about amount owed
Chapter
7-23
Outputs of the Sales Process
Financial Statements
Customer Billing Statement
Summarizes outstanding sales invoices
Total amount currently owed
Aging Report
Accounts receivable balances
Categorized based on time outstanding
Chapter
7-24
Outputs of the Sales Process
Bad Debt Report
Information on collection follow-up procedures
Helps manage overdue accounts
Cash Receipts Forecast
Source documents used as inputs
Prior payment experience and aging analysis aid in
preparation
Chapter
7-25
Accounts Receivable Aging
Report
Chapter
7-26
Outputs of the Sales Process
Approved Customer Listing Report
Identifies customers approved for sales
Includes customer information such as billing address,
credit limits, and billing terms
Sales Analysis Reports
Detailed information captured by AIS
Aid in decision-making process for production
planning and marketing efforts
Chapter
7-27
Sales Process Summary
Chapter
7-28
Study Break #3
________ is (are) a collection of activities or flow of work
in an organization that creates value.
A. An economic event
B. Accounting transactions
C. A business process
D. A chart of accounts
Chapter
7-29
The Purchasing Process
Process
Begins with request for goods/services
Ends with payment of cash
Primary Objectives of Purchasing Process
Purchase high-quality goods at best price
Pay vendors at the optimal time
Chapter
7-30
Objectives of the Purchasing
Process
Tracking purchases of goods and/or services
from vendors
Tracking amounts owed
Maintaining vendor records
Controlling inventory
Making timely and accurate vendor payments
Forecasting purchases and cash outflows
Chapter
7-31
Data Flow Diagram of
Purchasing Process
Chapter
7-32
Inputs to the Purchasing Process
Purchase Requisition
Identifies item requested
May indicate name of vendor
Purchase Order
Based on Purchase Requisition
Includes vendor information
Vendor Invoice
Includes prices, shipping terms, and discounts
Chapter
7-33
Inputs to the Purchasing Process
Receiving Report
Count and condition of goods received
Bill of Lading
Accompanies the good sent
Carrier assumes responsibility for the goods
Packing Slip
Specific goods and quantities included in shipment
Included in merchandise package
Chapter
7-34
Sample Packing Slip
Chapter
7-35
Outputs of the Purchasing
Process
Financial Statement Information
Vendor Checks
Supported by a voucher
Signed by a person designated by management
Check Register
List of all checks issued for a particular period
By-product of batch processing
Chapter
7-36
Outputs of the Purchasing
Process
Discrepancy Reports
Notes differences in quantities or amounts
Based on reconciliation of purchase order,
receiving report, and the purchase invoice
Cash Requirements Forecast
Predicts future payments and payment dates
Utilizes multiple source documents
Chapter
7-37
Purchasing Process Summary
Chapter
7-38
IT in Sales and Purchasing
Electronic input
Wireless capabilities
Automated data-entry technology
Biometrics
Inventory Management Systems
RFID Tags
Chapter
7-39
Current Trends in Business
Processes
Business Processes Outsourcing (BPO)
Business without boundaries
Offshoring
Business Process Management Software
(BPM)
Collect corporate knowledge, data, and business
rules
Accomplish business processes more efficiently
Chapter
7-40