chap11
TRANSCRIPT
Chapter 11The Accounting The Accounting
Information SystemInformation System
MANAGEMENT INFORMATION SYSTEMS 8/ERaymond McLeod, Jr. and George Schell
Copyright 2001 Prentice-Hall, Inc.
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What is Data Processing?What is Data Processing?
Manipulation or transformation of symbols Manipulation or transformation of symbols for the purpose of increasing their for the purpose of increasing their usefulness.usefulness.
Data processing (DP) and transaction Data processing (DP) and transaction processing (TP) are often used processing (TP) are often used interchangeably.interchangeably.
Applied to business dataApplied to business data
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Accounting Information Accounting Information Systems (AIS)Systems (AIS)
Gathers data describing a firm’s activityGathers data describing a firm’s activity Transforms data into informationTransforms data into information Makes information available to users inside Makes information available to users inside
and outside the firmand outside the firm
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EnvironmentEnvironmentA Model of an Accounting Information A Model of an Accounting Information
SystemSystem
InformationInformation
DataData
ManagementManagement
DataDataprocessingprocessing
softwaresoftware
TransformTransform
AccountingAccountingInformationInformationSystemSystem
DatabasDatabasee
OutputOutputphysicalphysical
resourcesresources
InputInputphysicalphysical
resourcesresources
EnvironmentEnvironment11-4
Data Processing TasksData Processing Tasks
1. Gather data1. Gather data– Each transaction is documentedEach transaction is documented– What happened?What happened?– When did it happen?When did it happen?– How much (volume, value)?How much (volume, value)?– Transactions describeTransactions describe
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2.2. Manipulate data Manipulate data – Classify (use codes)Classify (use codes)– SortSort– CalculateCalculate– SummarizeSummarize
Data Processing Tasks [cont.]Data Processing Tasks [cont.]
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3. Store data3. Store data
– Describes each transactionDescribes each transaction– Represents most of the databaseRepresents most of the database
Data Processing Tasks [cont.]Data Processing Tasks [cont.]
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4. Document preparation4. Document preparation– TriggersTriggers
» By an actionBy an action
» By a time scheduleBy a time schedule
– Hardcopy or on-screenHardcopy or on-screen
Data Processing Tasks [cont.]Data Processing Tasks [cont.]
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Characteristics of the AISCharacteristics of the AIS
Performs necessary tasksPerforms necessary tasks Standard proceduresStandard procedures Detailed dataDetailed data Historical focusHistorical focus Provides minimal problem-solving Provides minimal problem-solving
informationinformation
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Sample AISSample AISThe Distribution SystemThe Distribution System
UsersUsers– Manufacturers Manufacturers – Wholesalers Wholesalers – RetailersRetailers
General in natureGeneral in nature Used in many different types of firmsUsed in many different types of firms
– RetailersRetailers– Manufacturing Manufacturing – Service Service
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DFDsDFDs
Data flow diagramData flow diagram– Document a system in a hierarchical mannerDocument a system in a hierarchical manner– Data flows, processes, environmental elementsData flows, processes, environmental elements
Context level is overall system within Context level is overall system within environmentenvironment
Leveled and Balanced DFDsLeveled and Balanced DFDs
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CustomersCustomers
ManagementManagement
Distributionsystem
SuppliersSuppliers
MaterialsMaterialsstockroomstockroom
Sales ordersSales orders
RejectedRejectedsalessalesorderordernoticesnotices
InvoicesInvoices
StatementsStatements
Payments by customersPayments by customers
CommitmentsCommitments
Purchases ordersPurchases orders
ShipmentsShipments
Supplier invoicesSupplier invoices
Supplier statementsSupplier statements
Payments to suppliersPayments to suppliers
StockStock
Other reportsOther reports
Budget Budget reportsreports
BalanceBalancesheetsheet
Income Income statementstatement
A Context Diagram of the A Context Diagram of the Distribution SystemDistribution System
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CustomersCustomersSales OrdersSales Orders
Rejected sales order noticesRejected sales order notices
InvoicesInvoices
StatementsStatements
Payments by customersPayments by customers
Receivables ledger dataReceivables ledger data
1. Fill
Orders
Inventory ledger dataInventory ledger data
Payables ledger dataPayables ledger data
Other reportsOther reports
Budget reportsBudget reports
BalanceBalancesheetsheet
IncomeIncomestatementstatement
ManagementManagement
ReceivedReceived itemsitems
Purchasing dataPurchasing data CommitmentsCommitments
Purchase OrdersPurchase Orders 2.Order
replenish-mentstock
ShipmentsShipments
Supplier invoicesSupplier invoices
Supplier statementsSupplier statements
Payments to suppliersPayments to suppliers
SuppliersSuppliers
StockMaterialsMaterialsstockroomstockroom
A Figure 0 Diagram of the A Figure 0 Diagram of the Distribution SystemDistribution System
3.Maintaingeneralledger
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Customers
1.31.3BillingBilling
1.11.1OrderOrderEntryEntry
1.41.4AccountsAccountsreceivablereceivable
1.21.2InventoryInventory
Sales ordersSales orders
Rejected sales Rejected sales order noticesorder notices
Accepted ordersAccepted orders
Filled itemsFilled items
Purchasing dataPurchasing data
ReceivedReceived itemsitems
InventoryInventoryledger dataledger data
Receivables ledger dataReceivables ledger data
Billed ordersBilled orders
Sta
tem
ents
Sta
tem
ents
InvoicesInvoices
CompletedCompleted ordersorders
P
aym
ents
b
y cu
sto
me
rsP
aym
ents
b
y cu
sto
me
rs
3 3 2
2
A Figure 1 Diagram of A Figure 1 Diagram of the the Systems that Fill Systems that Fill Customer Customer Orders Orders
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Purchasing dataPurchasing data
CommitmentsCommitments
SuppliersSuppliers
Payments to suppliersPayments to suppliers
Supplier statementsSupplier statements
Supplier invoicesSupplier invoices
Payable Payable ledger dataledger data
MaterialsMaterialsstockroomstockroom
StockStock
Incurred obligationsIncurred obligations
2.2Receiving
Issued purchaseIssued purchaseorder dataorder dataFilledFilled
purchasepurchaseordersorders
ShipmentsShipments
Received itemsReceived items
Purchase ordersPurchase orders
ReceivedReceivedpurchasespurchases
2.1Purchasing
2.3 Accounts payable
A Figure 2 Diagram of the Systems that Order Replenishment StockA Figure 2 Diagram of the Systems that Order Replenishment Stock
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3.1Update general ledger
Receivables ledger dataReceivables ledger data
Inventory ledger dataInventory ledger data
Payables ledger dataPayables ledger data
General ledger recordsGeneral ledger records
Updated general ledger recordsUpdated general ledger records
GeneralGeneralledgerledger
Management report dataManagement report data
3.2Prepare
management
reports
Other reportsOther reports
Budget reportsBudget reports
Balance sheetBalance sheet
Income statementIncome statement ManagementManagement
A Figure 3 Diagram of the Systems That A Figure 3 Diagram of the Systems That Perform General Ledger ProcessesPerform General Ledger Processes
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Fill Customer OrdersFill Customer Orders
Order entryOrder entry– Sales order formSales order form
InventoryInventory– Process salesProcess sales– Process receiptsProcess receipts– Feed general ledgerFeed general ledger
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CustomersCustomersSales ordersSales orders Edit rejectsEdit rejects
Sales Sales orderorder edit edit ejectsejects
Sales Sales orderorder edit edit ejectsejects1.1.1
Edit order data
RejectedRejectedsales ordersales order
noticesnotices
Edited Edited ordersorders
CustomerCustomer credit filecredit file
CustomerCustomer credit filecredit file
Credit dataCredit data
1.1.21.1.2ComputerComputer
creditcredit checkcheck
1.1.21.1.2ComputerComputer
creditcredit checkcheck
Edited and checked ordersEdited and checked orders
Credit RejectsCredit Rejects
Sales Sales orderordercredit credit rejectsrejects
AcceptedAccepted ordersorders
1.1.3 Log inorders
Order dataOrder data
Completed ordersCompleted orders1.1.4Mark filledorders
Date filedDate filedOrder logOrder log
A Figure 1.1 Diagram of the Order Entry SystemA Figure 1.1 Diagram of the Order Entry System
1.21.2
1.31.3
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BackorderBackorderfilefile
BackorderBackorderfilefile
1.2.1Check
the balanceon hand
1.2.1Check
the balanceon hand
1.2.2Check
thereorderpoint
1.2.2Check
thereorderpoint
1.2.3Add
receiveditems
1.2.3Add
receiveditems
1.2.4Providegeneralledgerdata
1.2.4Providegeneralledgerdata
Item Item recordsrecords
BackorderBackorderrecordsrecords InventoryInventory
filefile
InventoryInventoryfilefileItemsItems
availableavailable
Updated Updated itemitem
recordsrecords
Filled Filled itemsitems
Purchasing dataPurchasing data
InventoryInventoryfile additionsfile additions
InventoryInventoryrecordsrecords
Received Received itemsitems
InventoryInventoryledger ledger datadata
A Figure 1.2 Diagram of the Inventory SystemA Figure 1.2 Diagram of the Inventory System1.11.1
1.31.3 22
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22
AcceptedAcceptedordersorders
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BillingBilling
InvoiceInvoice– Note:Note:
» 1. Customer data1. Customer data
» 2. Item data2. Item data
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CustomersCustomersCustomersCustomers
1.3.1Obtain
customerdata
CustomerCustomerfilefile
1.3.2Prepareinvoices
FilledFilleditemsitems
Customer dataCustomer data
Invoice Invoice datadata
Billed ordersBilled ordersInvoicesInvoices
CompletedCompletedordersorders
A Figure 1.3 Diagram of the A Figure 1.3 Diagram of the Billing SystemBilling System
1.21.2
1.11.1
1.41.4
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Accounts ReceivableAccounts Receivable
Four separate triggersFour separate triggers– Today's salesToday's sales– Today's paymentsToday's payments– Time to send statementsTime to send statements– Need to provide general ledger dataNeed to provide general ledger data
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Billed ordersBilled orders
AccountsAccountsreceivable receivable
filefile
AccountsAccountsreceivable receivable
filefile
ReceivablesReceivablesledger dataledger data
ReceivablesReceivablesrecordsrecordsto deleteto delete
New receivablesNew receivables Receivables recordsReceivables records
1.4.3Prepare
statements
CustomersCustomers
Payments by Payments by customerscustomers
PaidPaidreceivablesreceivables
filefile
PaidPaidreceivablesreceivablesrecordsrecords
Statement recordsStatement records
StatementsStatements
A Figure 1.4 Diagram of the A Figure 1.4 Diagram of the Accounts Receivable Accounts Receivable
SystemSystem1.4.1Add new
receivables
1.4.4Providegeneral
ledger data
1.4.2Delete paidreceivables
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1.31.3
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Order Replenishment Order Replenishment StockStock
PurchasingPurchasing– Emerging technologiesEmerging technologies
» EDIEDI
» ISDNISDN
– Purchase orderPurchase order
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SupplierSupplier filefile
SupplierSupplier filefile
Outstanding Outstanding purchasepurchase order filesorder files
Outstanding Outstanding purchasepurchase order filesorder files
2.1.1 Select
suppliers
Purchasing dataPurchasing data Past performance dataPast performance data
InventoryInventoryand supplier dataand supplier data
Purchase order Purchase order datadata
2.1.2Obtain verbalcommitments
SuppliersSuppliers2.1.3Prepare
purchaseorders
2.1.4Close outpurchase
orders
CommitmentsCommitments
Purchase OrdersPurchase Orders
Issued purchaseIssued purchaseorder dataorder data
IncurredIncurredObligationsObligations
PurchasePurchaseorder recordsorder records
Filled purchase OrdersFilled purchase Orders
Purchase recordsPurchase recordsto close outto close out
A Figure 2.1 Diagram of the Purchasing SystemA Figure 2.1 Diagram of the Purchasing System
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2.22.2
2.22.2
2.32.3
Purchase Purchase Order Order
history filehistory file
Purchase Purchase Order Order
history filehistory fileRemoved purchaseRemoved purchaseorder recordsorder records
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A Figure 2.2 Diagram of the Receiving SystemA Figure 2.2 Diagram of the Receiving System
SuppliersSuppliersPurchasedPurchaseditems fileitems file
PurchasedPurchaseditems fileitems file
2.2.1processreceipts
MaterialsMaterialsstockroomstockroom
2.2.1Notifyother
systems
2.12.1
2.12.1
2.32.3
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PurchasedPurchaseditem dataitem data
IssuedIssuedpurchasepurchaseorderorderdatadata
ShipmentsShipments
StocksStocks
ReceiptReceiptinformationinformation
Received itemsReceived items
Filled purchase ordersFilled purchase orders
Received purchasesReceived purchases
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Accounts PayableAccounts Payable
The firm pays suppliers when:The firm pays suppliers when:1.1.Stock was ordered (P.O. file copy)Stock was ordered (P.O. file copy)
2.2.Stock was received (Received purchases file)Stock was received (Received purchases file)
3.3.InvoiceInvoice
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Paid Payables RecordsPaid Payables Records
Paid Supplier Paid Supplier
DataData
AccountsAccountspayablepayable
filefile
AccountsAccountspayablepayable
filefile
ReceivedReceivedpurchasespurchases
filefile
ReceivedReceivedpurchasespurchases
filefile
Paid Paid payablespayables
filefile
Paid Paid payablespayables
filefile
SuppliersSuppliersSuppliersSuppliers
Invoice andInvoice andstatementstatement
filefile
Invoice andInvoice andstatementstatement
filefile
ReceivedReceivedPurchasesPurchases
IncurredIncurredObligationsObligations
New PayablesNew Payablesdatadata
PayablesPayablesRecordsRecords Payables LedgerPayables Ledger
DataData
ReceiptReceiptDataData
Payments to SuppliersPayments to Suppliers
Supplier InvoicesSupplier Invoices
Invoice DataInvoice Data
PayablesPayablesRecords toRecords todeletedelete
A Figure 2.3 Diagram of the Accounts Payable A Figure 2.3 Diagram of the Accounts Payable SystemSystem
PaymentPaymentdatadata
Supplier Supplier statementsstatements
2.3.4Providegeneral ledgerdata
2.3.3Delete paidpayables
2.3.1Set up
supplierpayablesrecords
2.3.2Make
supplierpayments
2.12.1
2.22.2
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AIS is the Foundation SystemAIS is the Foundation System
The AIS must be implemented firstThe AIS must be implemented first– MISMIS
– DSSDSS
– ES ES
Depends on a well-designed AIS
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SummarySummary AIS maintains financial records of the firmAIS maintains financial records of the firm Data processing components Data processing components
– Data gatheringData gathering
– Data manipulationData manipulation
– Data storageData storage
– Document preparationDocument preparation AIS SubsystemsAIS Subsystems AIS contributes to problem solvingAIS contributes to problem solving
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