Professional Documents
Culture Documents
Chapter 11
The Accounting
Information System
11-1
Copyright 2001 Prentice-Hall, Inc.
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
11-2
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
11-3
A Model of an Accounting Information System
Environment
Information Management
Data
Data processing
software
Database
Accounting
Information
System
Input Output
physical Transform physical
resources resources
Environment
11-4
Data Processing Tasks
1. Gather data
– Each transaction is documented
– What happened?
– When did it happen?
– How much (volume, value)?
– Transactions describe
11-5
Data Processing Tasks [cont.]
2. Manipulate data
– Classify (use codes)
– Sort
– Calculate
– Summarize
11-6
Data Processing Tasks [cont.]
3. Store data
– Describes each transaction
– Represents most of the database
11-7
Data Processing Tasks [cont.]
4. Document preparation
– Triggers
» By an action
» By a time schedule
– Hardcopy or on-screen
11-8
Characteristics of the AIS
11-9
Sample AIS
The Distribution System
■ Users
– Manufacturers
– Wholesalers
– Retailers
■ General in nature
■ Used in many different types of firms
– Retailers
– Manufacturing
– Service
11-10
DFDs
11-11
Sales orders
A Context Diagram of the
Customers
Distribution System
Commitments
Purchases orders
Rejected
sales
order
notices
Shipments
Payments to suppliers
Income Balance
statement sheet
Stock Materials
Budget stockroom
reports
Management
Other reports
11-12
Sales Orders
Customers
Rejected sales order notices A Figure 0 Diagram of the
Invoices
Distribution System
Statements 1.
Payments by customers
Fill
Orders
Receivables ledger data
Management
Materials
Stock
stockroom 11-13
Sales orders
A Figure 1 Diagram of the
Rejected sales
Systems that Fill Customer
Customers order notices Orders
Accepted orders
1.1
Order
Entry
Payments by customers
Filled items
Statements
Completed 1.2
orders Inventory
Invoices
Issued purchase
Filled order data Shipments
purchase Suppliers
orders
Received items
1
2.2
Receiving
Stock Materials
stockroom
Received
purchases Supplier invoices
2.3
Incurred obligations Supplier statements
Accounts
payable
Payable Payments to suppliers
ledger data
3
11-15
A Figure 3 Diagram of the Systems That
Perform General Ledger Processes
Receivables ledger data 3.1
1 General ledger records
Update
Inventory ledger data general Updated general ledger records
1
ledger
Payables ledger data
2
Management report data
General
ledger
Other reports
3.2
Budget reports
Prepare
management
reports
Balance sheet
Income statement Management
11-16
Fill Customer Orders
■ Order entry
– Sales order form
■ Inventory
– Process sales
– Process receipts
– Feed general ledger
11-17
A Figure 1.1 Diagram of the Order Entry System
Sales orders Edit rejects
Customers Sales
Sales
order
order
Edited edit
edit
orders ejects
ejects
Rejected 1.1.1
sales order Edit order
notices Customer
Customer
data
credit
creditfile
file
Credit data
1.1.2
1.1.2
Edited and checked orders Computer
Computer
credit
credit
check
check
Sales
Accepted order
orders Credit Rejects credit
1.1.3 Order data
1.2 rejects
Log in
orders
1.3 2
11-19
Billing
■ Invoice
– Note:
» 1. Customer data
» 2. Item data
11-20
1.2 A Figure 1.3 Diagram of the
Filled Billing System
items
Invoice
data
1.3.2
Prepare
Invoices invoices Billed orders
Customers
Customers 1.4
Completed
orders
11-21
1.1
Accounts Receivable
11-22
1.3
Billed orders A Figure 1.4 Diagram of the
Accounts Receivable System
1.4.1 New receivables Receivables records
Add new
receivables
1.4.4
Provide
Accounts
Accounts general
Statement records receivable
receivable ledger data
file
file
Receivables Receivables
records ledger data
3
1.4.3 to delete
Prepare 1.4.2
statements Delete paid
receivables
Statements Paid
receivables Paid
Payments by
records receivables
Customers customers file
11-23
Order Replenishment Stock
■ Purchasing
– Emerging technologies
» EDI
» ISDN
– Purchase order
11-24
A Figure 2.1 Diagram of the Purchasing System
Purchasing data 2.1.1 Past performance data Supplier
Supplier
1 Select file
suppliers
file
Inventory
and supplier data
Received items
1
Materials 2.2.1
stockroom Notify Filled purchase orders
other
systems 2.1
Received purchases
11-26 2.3
Accounts Payable
11-27
A Figure 2.3 Diagram of the Accounts Payable System
Incurred
Obligations Payables
2.1 Payables Ledger
Records
New Payables Data
2.3.1
data
Set up 2.3.4
supplier Accounts Provide 3
Accounts
payables payable
payable general
records file ledger
file
data
Received Payables
2.2 Purchases Records to Paid Payables Records
delete Paid
Paid
Received payables
payables
Received
purchases 2.3.3 file
file
purchases Supplier Invoices
file
file Delete paid
payables Invoice
Payment Invoiceandand Supplier
Receipt statement
data statement statements
Data file
Paid Supplier file
2.3.2 Data Invoice Data
Make
Suppliers
Suppliers
supplier
payments
Payments to Suppliers
11-28
AIS is the Foundation System
11-29
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
11-30