12. the Accounting Information System

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Chapter 12The Accounting

Information System

MANAGEMENT INFORMATION SYSTEMS 7/E

Raymond McLeod, Jr.

Copyright 1998 Prentice Hall, Inc.



What is Data Processing?

n Manipulation or transformation of symbols

for the purpose of increasing their

usefulness.

n We will use the same general model format

for all 5 computer-based information

systems subsystems.

n Data processing and transaction processing

are often used interchangeably.



Environment

A Model of an Accounting Information System

Information

Data

Management

Dataprocessing

software

Transform

AccountingInformationSystem

Database

Outputphysical

resources

Inputphysical

resources

Environment



Key Points:

1.Gathers only data relating to the firm’s

activities

2. Makes information available to

A. Management

B. Environment



Data Processing Tasks

1. Gather data

– Each transaction is documented

– What happened? – When did it happen?

– How much (volume, value)?

– Transactions describe



2. Manipulate data

– Classify (use codes)

– Sort – Calculate

– Summarize

Data Processing Tasks [continued]



3. Store data

– Describes each transaction

– Represents most of the database

Data Processing Tasks -- Step 3



4. Document preparation

– By an action

– By a time schedule

Data Processing Tasks -- Step 4



Characteristics of the AIS

n Performs necessary tasks

n Standard procedures

n Detailed data

n Historical focus

n Provides minimal problem-solving

information



Sample AISThe Distribution System

n Users

– Manufacturers

– Wholesalers

– Retailers

n Note data flows, data stores, and processes



Customers

Management

Distributionsystem

Suppliers

Materialsstockroom

Sales orders

Rejectedsalesordernotices

Invoices

Statements

Payments by customers

Commitments

Purchases orders

Shipments

Supplier invoices

Supplier statements

Payments to suppliers

Stock

Other reports

Budgetreports

Balancesheet

Incomestatement

A Context Diagram of the

Distribution System



Purchasing data Commitments

Suppliers

Payments to suppliers

Supplier statements

Supplier invoices

Payable

ledger data

Materialsstockroom

Stock

Incurred obligations

2.2Receiving

Issued purchaseorder dataFilled

purchaseorders

Shipments

Received items

Purchase orders

Receivedpurchases

2.1Purchasing

2.3Accounts

payable

A Figure 2 Diagram of the Systems That Order Replenishment Stock

1

3

1



3.1Updategeneralledger

Receivables ledger data

Inventory ledger data

Payables ledger data

General ledger records

Updated general ledger records

Generalledger

Management report data

3.2

Preparemanagementreports

Other reports

Budget reports

Balance sheet

Income statement Management

A Figure 3 Diagram of the Systems That

Perform General Ledger Processes

1

1

2



Fill Customer Orders

n Order entry

– Sales order form

n Inventory – Process sales

– Process receipts

– Feed general ledger



Backorderfile

1.2.1

Checkthe

balanceon hand

1.2.2

Checkthe

reorderpoint

1.2.3Add

receiveditems

1.2.4

Providegeneralledgerdata

Itemrecords

Backorderrecords Inventory

fileItemsavailable

Updateditem

records

Filleditems

Purchasing data

Inventoryfile additions

Inventoryrecords

Received

items

Inventoryledgerdata

A Figure 1.2 Diagram of the Inventory System1.1

1.3 2

3

2

Acceptedorders



Customers

1.3.1Obtain

customer

data

Customerfile

1.3.2

Prepareinvoices

Filleditems

Customer data

Invoicedata

Billed ordersInvoices

Completedorders

A Figure 1.3 Diagram of the

Billing System1.2

1.1

1.4



A Figure 2.2 Diagram of the Receiving System

Suppliers Purchaseditems file

2.2.1processreceipts

Materialsstockroom

2.2.1Notifyother

systems

2.1

2.1

2.3

1

Purchaseditem data

Issuedpurchaseorderdata

Shipments

Stocks

Receiptinformation

Received items

Filled purchase orders

Received purchases



Accounts Payable

n The firm pays suppliers when:

n 1. Stock was ordered (P.O. file copy)

n 2. Stock was received (Received purchases

file)

n 3. Invoice

12. the Accounting Information System

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