MANAGEMENT INFORMATION SYSTEMS 8/E

Transcription

1 MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Chapter 11 The Accounting Information System Copyright 2001 Prentice-Hall, Inc. 11-1

2 Objectives Understand what data processing is. Understand the tasks that an accounting information system (AIS) performs. Know the characteristics of an AIS. Be familiar with an integrated set of AIS subsystems that are found in many organizations. Have a good appreciation for how data flow diagramming is used to document a business system. Understand the role of the AIS in problem solving.

3 What is Data Processing? Manipulation or transformation of symbols for the purpose of increasing their usefulness. Data processing (DP) and transaction processing (TP) are often used interchangeably. Applied to business data 11-3

4 Accounting Information Systems (AIS) Gathers data describing a firm s activity Transforms data into information Makes information available to users inside and outside the firm 11-4

5 A Model of an Accounting Information System Environment Information Management Data Data processing software Accounting Information System Database Input physical resources Transform Output physical resources Environment 11-5

6 Data Processing Tasks 1. Gather data Each transaction is documented What happened? When did it happen? How much (volume, value)? Transactions describe 11-6

7 Data Processing Tasks [cont.] 2. Manipulate data Classify (use codes) Sort Calculate Summarize 11-7

8 Data Processing Tasks [cont.] 3. Store data Describes each transaction Represents most of the database 11-8

9 Data Processing Tasks [cont.] 4. Document preparation Triggers» By an action» By a time schedule Hardcopy or on-screen 11-9

10 Characteristics of the AIS Performs necessary tasks Standard procedures Detailed data Historical focus Provides minimal problem-solving information 11-10

11 Sample AIS The Distribution System Users Manufacturers Wholesalers Retailers General in nature Used in many different types of firms Retailers Manufacturing Service 11-11

12 DFDs Data flow diagram Document a system in a hierarchical manner Data flows, processes, environmental elements Context level is overall system within environment Leveled and Balanced DFDs 11-12

13 Customers Sales orders A Context Diagram of the Distribution System Commitments Rejected sales order notices Purchases orders Shipments Invoices Statements Payments by customers Distribution system Supplier invoices Supplier statements Suppliers Payments to suppliers Income statement Management Balance sheet Budget reports Other reports Stock Materials stockroom 11-13

14 Customers Sales Orders Rejected sales order notices Invoices Statements Payments by customers Receivables ledger data 1. Fill Orders A Figure 0 Diagram of the Distribution System 3. Maintain general ledger Income statement Inventory ledger data Balance sheet Payables ledger data Other reports Budget reports Received items 2. Order replenishment stock Purchasing data Purchase Orders Shipments Supplier invoices Supplier statements Commitments Payments to suppliers Suppliers Management Stock Materials stockroom 11-14

15 Customers Sales orders Rejected sales order notices A Figure 1 Diagram of the Systems that Fill Customer Orders Payments by customers Statements Statements Invoices Completed orders 1.1 Order Entry Accepted orders Filled items 1.2 Inventory 1.4 Accounts receivable Billed orders 1.3 Billing Receivables ledger data Inventory ledger data Purchasing data Received items

16 A Figure 2 Diagram of the Systems that Order Replenishment Stock 1 Purchasing data 2.1 Purchasing Commitments Purchase orders Filled purchase orders Issued purchase order data Shipments Suppliers 2.2 Receiving Incurred obligations Payable ledger data Received purchases 3 Received items Stock Accounts payable Materials stockroom Supplier invoices Supplier statements Payments to suppliers 11-16

17 A Figure 3 Diagram of the Systems That Perform General Ledger Processes Receivables ledger data Inventory ledger data Payables ledger data 3.1 Update general ledger General ledger records Updated general ledger records Management report data General ledger 3.2 Prepare management reports Other reports Budget reports Balance sheet Income statement Management 11-17

18 Fill Customer Orders Order entry Sales order form Inventory Process sales Process receipts Feed general ledger 11-18

19 Rejected sales order notices A Figure 1.1 Diagram of the Order Entry System Customers Sales orders Edit order data Edit rejects Edited orders Sales Sales order order edit edit ejects ejects Customer Customer credit credit 1.2 Accepted orders Log in orders Edited and checked orders Order data Computer Computer credit credit check check Credit Rejects Credit data Sales order credit rejects 1.3 Completed orders Mark filled orders Date d Order log 11-19

20 1.1 Backorder Backorder A Figure 1.2 Diagram of the Inventory System Accepted orders Backorder records Filled items Check Check the the balance balance on on hand hand Items available Check Check the the reorder reorder point point Item records Updated item records Inventory Inventory Purchasing data Inventory additions Inventory records Add Add received received items items Provide Provide general general ledger ledger data data Received items Inventory ledger data

21 Billing Invoice Note:» 1. Customer data» 2. Item data 11-21

22 1.2 Filled items A Figure 1.3 Diagram of the Billing System Obtain customer data Customer data Customer Customers Invoice data Invoices Prepare invoices Billed orders Completed orders 11-22

23 Accounts Receivable Four separate triggers Today's sales Today's payments Time to send statements Need to provide general ledger data 11-23

24 1.3 Billed orders Add new receivables A Figure 1.4 Diagram of the Accounts Receivable System New receivables Receivables records Statement records Prepare statements Statements Payments by Customers customers Accounts receivable Delete paid receivables Receivables records to delete Paid receivables records Provide general ledger data Receivables ledger data Paid receivables

25 Order Replenishment Stock Purchasing Emerging technologies» EDI» ISDN Purchase order 11-25

26 1 A Figure 2.1 Diagram of the Purchasing System Purchasing data Select suppliers Past performance data Supplier Inventory and supplier data Issued purchase order data Incurred Obligations Purchase Purchase Order Order history history Purchase order data Prepare purchase orders Removed purchase order records Obtain verbal commitments Purchase Orders Outstanding Outstanding purchase purchase order order s s Close out purchase orders Commitments Purchase order records Suppliers Purchase records to close out Filled purchase Orders

27 A Figure 2.2 Diagram of the Receiving System Suppliers Purchased item data 2.1 Issued purchase order data Purchased Purchased items items Shipments Stocks process receipts Receipt information Materials stockroom Notify other systems Received items Filled purchase orders Received purchases 2.3

28 Accounts Payable The firm pays suppliers when: 1.Stock was ordered (P.O. copy) 2.Stock was received (Received purchases ) 3.Invoice 11-28

29 A Figure 2.3 Diagram of the Accounts Payable System Incurred Obligations Received Purchases Received purchases Receipt Data Set up supplier payables records Payment data New Payables data Make supplier payments Payables Records to delete Accounts payable Delete paid payables Paid Payables Records Paid Supplier Data Payables Records Invoice Data Supplier Invoices Invoice and and statement Payments to Suppliers Provide general ledger data Payables Ledger Data Paid Paid payables Supplier statements 3 Suppliers 11-29

30 AIS is the Foundation System The AIS must be implemented first MIS DSS ES Depends on a well-designed AIS 11-30

31 Summary AIS maintains financial records of the firm Data processing components Data gathering Data manipulation Data storage Document preparation AIS Subsystems AIS contributes to problem solving 11-31

32 Case Study 1. How is output 'triggered' to be produced by an accounting information system? A) by an action B) by a time schedule C) by either A) or B) 2. Accounting information systems A) adhere to relatively standardized procedures B) have a primarily historical perspective C) both A) and B)