1 chapter 1 introduction to accounting information systems chapter 12 the purchasing/ accounts...
TRANSCRIPT
1
Chapter 1
Introduction to Accounting Information
Systems
Chapter 12
The Purchasing/
Accounts Payable/
Cash Disbursement (P/AP/CD) Process
Learning Objectives
• Know definitions/basic functions of P/AP/CD
• Relationship between P/AP/CD & environment
• Logical/physical characteristics of P/AP/CD
• Special requirements of payroll process
• Technology to implement P/AP/CD
• System control goals and plans for P/AP/CD
3
Expenditure cycle (merchandising)
P/AP/CD process
Inventoryprocess
Payroll
Generalledger
Expenditure
Cycle
4
Vertical perspective - P/AP/CDVP
Finance
Treasurer
Cashier
Controller
Supervisor,payroll
Supervisor,accounts payable
Supervisor,receiving
Buyers
Warehousemanager
Purchasingmanager
VPLogistics
Horizontal information flows
5
6
Horizontal Information Flows
• Purchase requisition from inventory control to purchasing
• Requisitions from other depts. to purchasing
• Purchase order to vendor
• PO notification to other depts. or inventory
• PO notification to receiving
• PO notification to accounts payable
• Goods/services received from vendor
7
Horizontal Information Flows (2)
• Receiving notification to accounts payable
• Receiving notification to purchasing
• Invoice received from vendor
• Approved voucher to cashier
• AP notification & inventory cost info to GL
• Check to vendor by cashier
• Paid voucher to accounts payable
• Notification of cash disbursement to GL
8
Inventoryprocess
Variousdepts.
GeneralLedger
Vendor
GeneralLedgerSystem
Vendor
Carrier
Warehouse
PO master data
Vendor master data
1.0Ordergoods
& services
2.0Receivegoods
& services
3.0Establishpayable
4.0Make
paymentVendor master data
AP Master data
Inventory master
Disbursement eventdata
Inventory'spurchase
requisition
Notification
Purchaseorder
Vendoracknowledgement
POreceiving
notificationReceiving reports
Vendorpacking
slip
Stocknotice
Receivingreport
PO accountspayable
notification
GL payableupdate
Purchaserequisition
POnotification
Vendorinvoice
Vendorpayment
GL cashdisbursement
updateEmployee
Employeepayment
Employeetime
record
Inventorymaster data
Payroll data
GL inventoryrec'd update
Inventory master data
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10
ER diagram - P/AP/CD
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12
13
14
15
Control Goals of the Business Process
Ensure effectivenessof operations by
achieving the followingprocess goals
Ensureefficientemploy-ment of
resources
Ensuresecurity
ofresources
Control Goals of the Operations Process
Control Goals of the Information Process
For purchaserequisition
Inputs, ensure:
For purchaseorder masterdata, ensure
For vendorpacking slip
inputs,ensure:
For P.O.master data,
ensure
A B C D IV IC IA IV IC IAUC UA UC UA
P-1
Purchasing Subsystem Receiving Subsystem
RecommendedControl Plans
P-1: Requisition audit data
P-2: Authorized vendor data P-2P-2 P-2P-3: Requisition confirmation to originating department
P-3
P-4: Approve vendor selection P-4 P-4
P-6: Independent validation of vendor invoice
P-5P-5: Independent authorization to make payment
P-6P-7: Vendor invoice math accuracy check
IV = input validity
IC = input completeness
IA = input accuracy
UC = update completeness
UA = update accuracy
Key: possible system goals:
A – Select vendor – best quality, lowest price by promised delivery dataB – Ensure that right goods in acceptable condition receivedC – Optimize cash discountsD – Ensure sufficient but not excessive cash
16
Control Goals of the Business Process (Continued)
Ensure effectivenessof operations by
achieving the followingprocess goals
Ensureefficientemploy-ment of
resources
Ensuresecurity
ofresources
Control Goals of the Operations Process
Control Goals of the Information Process
For vendorinvoice inputs,
ensure:
For accountspayable masterdata, ensure:
For paymentvoucher inputs,
ensure:
For A/Pmaster data,
ensure
A B C D IV IC IA IV IC IAUC UA UC UA
Payables Subsystem CD Subsystem
RecommendedControl Plans
P-1: Requisition audit data
P-2: Authorized vendor data
P-3: Requisition confirmation to originating departmentP-4: Approve vendor selection
P-6: Independent validation of vendor invoice
P-5: Independent authorization to make payment
P-7: Vendor invoice math accuracy check
IV = input validity
IC = input completeness
IA = input accuracy
UC = update completeness
UA = update accuracy
Key: possible system goals:
A – Select vendor – best quality, lowest price by promised delivery dataB – Ensure that right goods in acceptable condition receivedC – Optimize cash discountsD – Ensure sufficient but not excessive cash
P-5P-5
P-6P-6
P-7
Learning Objectives
• Know definitions/basic functions of P/AP/CD
• Relationship between P/AP/CD & environment
• Logical/physical characteristics of P/AP/CD
• Special requirements of payroll process
• Technology to implement P/AP/CD
• System control goals and plans for P/AP/CD