chapter 5-1 acct341, chapter 8 ais and business processes: part ii introduction the resource...
TRANSCRIPT
Chapter 5-1
ACCT341, Chapter 8 AIS and Business Processes: Part II
Introduction
The Resource Management Process
The Production Process
The Financing Process
Business Processes In Special Industries
Monitoring Business Processes
Chapter 5-2
Introduction
Many organizations need typical AIS requirements and some specialized information also
Focus of AISs formerly transaction processing presently capturing data around business processes
Two important transaction processing cycles are the production and financing cycles.
Chapter 5-3
The ResourceManagement Process
Organizations use resources to produce goods, to provide services, andto generate revenues.
An AIS must pay attention tothe inventory, human resources, and fixed assets.
Chapter 5-4
Human Resource Management
An organization’s human resource management activity includes
the personnel function hires employees, trains employees, and maintains personnel records maintains payroll records for employees
Chapter 5-5
the payroll function pays employees for their work maintains records of employees’ paychecks, complies with employee tax, reports on various deduction categories, and interacting with the personnel function
Human Resource Management
Chapter 5-6
Human ResourceManagement Objectives
Hiring, training, and employing workersMaintaining employee earnings recordsComplying with regulatory reporting requirementsReporting on payroll deductionsMaking timely and accurate paymentsto employeesProviding an interface for personnel and payroll activities
Chapter 5-7
Human ResourceManagement Inputs
Personnel Action Forms document the hiring of new employees or changes in
employee status
Time Sheets used to track hours worked
Payroll Deduction Authorizations authorize the payroll system to deduct certain amounts
Tax Withholding Forms authorize payroll to reduce gross pay by the
appropriate withholding tax (W-4).
Chapter 5-8
Financial Statement Information
Employee Listings shows current employees and may contain address and
other demographic information
Paychecks the final documents in the process; subject to strict internal
controls
Check Registers used to make journal entries for salary and payroll tax
expenses
Human ResourceManagement Outputs
Chapter 5-9
Human ResourceManagement Outputs
Deduction Reports contain summaries of deductions for employees as a
group
Tax (Regulatory) Reports reports the government requires for income tax,
social security tax, and unemployment tax information
Payroll Summaries used by management in
analyzing expenses
Chapter 5-10
Fixed Asset Management
Fixed assets assets with usable lives of more than one year.
A fixed-asset management system has to manage the assets in terms of their purchase, maintenance, valuation, and disposal.
Chapter 5-11
Fixed Asset Management Function.
Chapter 5-12
Fixed Asset Management Objectives
Tracking the purchase, maintenance, valuation, and disposal of the fixed assets
Calculating the depreciation for a company’sfinancial statements
Tracking repair costs, distinguishing between revenue and capital expenditures
Calculating the gain or loss upon disposal of individual fixed assets.
Chapter 5-13
Fixed Asset Management Inputs
Purchase Requisition requiring approval by one or more managers
Receiving Report upon receipt of a fixed asset
Supplier Invoice when it ships the asset
Chapter 5-14
Fixed Asset Management Inputs
Construction Work Orders if the company builds the asset
Repairs and Maintenance Reports update of expense accounts for repairs and
maintenance
Fixed Asset Change Forms basis for transferring fixed assets from one
location to another, retiring, selling or trading-in fixed assets
Chapter 5-15
Fixed Asset Management Outputs
Financial Statement Information gives the details of the valuation of the fixed assets
Fixed Asset Register lists identification numbers and location for
each fixed asset
Depreciation Register shows depreciation expense and
accumulated depreciation
Chapter 5-16
Fixed Asset Management Outputs
Repair and Maintenance Reports show the repair and maintenance
expenses and history
Retired Assets Report shows all assets disposed of
during the accounting period
Chapter 5-17
The Production Process
The production process begins with a request for raw material and ends with the transfer of finished goods to warehouses
This cycle, associated with producing goods concerns the capture of data and the reporting of information
Chapter 5-18
The Production Process
Chapter 5-19
Production Process - Objectives
Track purchases and sales of inventories
Monitor and control manufacturing costs
Control and coordinate the production process
Control inventory
Provide input for budgets
Chapter 5-20
Cost Accounting Subsystem
The cost accounting subsystemis an important part of the production processprovides important control information for the budgetcan vary depending upon the type of businessmanufacturing can have a job costing system process costing system activity-based costing system
Chapter 5-21
Just-in-Time (JIT)Inventory Systems
A Just-in-Time (JIT) Inventory Systemis a make-to-order inventory system
ensures that the production cycle processes inventory transactions appropriately
attempts to minimize inventory carrying costs.
Chapter 5-22
Just-in-Time (JIT)Inventory Systems
JIT depends upon AIS:
to help minimize inventory costs
to ensure that the manufacturing processes have the raw materials to keep a continuous work flow.
or, to be proactive and reengineer the process.
Chapter 5-23
Lean Production/ Manufacturing
Concept Eliminate waste throughout the organization Focus on reduction of non-value-added waste
Lean Accounting Necessary in order to have lean accounting Data collection Evaluate performance measures
Chapter 5-24
Lean Manufacturing Waste
Chapter 5-25
Production Process - Inputs
Material Requisition Form directs stores to issue materials or parts to
designated work centers or authorized persons
Bill of Materials shows the types and quantities of parts needed to
make a single unit of product
Master Production Schedule shows the quantities of goods needed to meet sales
demands
Chapter 5-26
Production order shows prices charged for raw materials. incorporates data from sales orders or forecasts, operates lists and bills of materials in order to
authorize the production of an order or batch
Job Time Card shows the distribution of labor costs to
specific jobs or production orders
Production Process - Inputs
Chapter 5-27
PRODUCTION PROCESSES—TECHNOLOGICAL
ASSISSTANCE
ERP
Barcode scanners
Radio frequency technology (RFID)
Advanced electronic tags
Chapter 5-28
Production Process - Outputs
Financial Statement Information gives details of the costs and pricing
Materials Price List shows prices charged for raw materials
Periodic Usage Report provides managerial information on use of raw
materials
Inventory Reconciliation Report reconciles physical inventory with perpetual records
Chapter 5-29
Production Process - Outputs
Inventory Status Report allows purchasing and production managers
to monitor inventory levels
Production Cost Report details the actual costs for each production
operation, each cost element, and/or each separate job
Manufacturing Status Report provides managers with information about the status
of various jobs
Chapter 5-30
The Financing Process
The financing process is where a company acquires and uses
financial resources cash other liquid assets investments
The financing process includes the activities of;
borrowing cash selling ownership shares.
Chapter 5-31
The Financing Process
Chapter 5-32
Financing Process - Objectives
Effective cash management making use of lockbox systems and
electronic funds transfer (EFT).
Minimizing cost of capital reducing the cost of obtaining
financial resources
Chapter 5-33
Maximizing return on investments using financial planning models
Project cash flows Consists of a cash receipts forecast and a
cash disbursements forecast.
Financing Process - Objectives
Chapter 5-34
Financing Process - Inputs
Remittance Advices
accompanies a customer’s payment
Deposit Slips banks provide to document account deposits
Checks companies receive and issue checks
Chapter 5-35
Financing Process - Inputs
Bank Statements
used to reconcile the cash balance in the company’s ledger against the cash balance in the bank account
Stock Market Data
Interest Data
Financial Institution Profiles
Chapter 5-36
Financing Process - Outputs
Financial Statement Information
Cash Budget
Investment Reports
Debt and Interest Reports
Financial Ratios
Financial Planning Model Reports
Chapter 5-37
Business Processes inSpecial Industries
Vertical market refers to markets or industries
services they provide or the goods they produce.
These organizations may require more information than is typically output from a
traditional AIS.
Examples of specialized information needs include time and billing systems, activity based costing systems, and point-of-sale systems.
Chapter 5-38
Industries with Specialized AISs
Professional service organizations have several unique operating characteristics:
a. No merchandise inventory
b. Professional employees
c. Difficulty in measuring output
d. Small size
Not-for-profit a. Professional employees and volunteers
b. Usually not affected by the market
c. Sometimes have a political environment
Chapter 5-39
Professional Service Organization Bill
Chapter 5-40
INDUSTRIES WITH SPECIALIZED AISs
Health care a. Share many of the professional and not-
for-profit organizations’ special AIS needs
b. Special accounting needs because of third-party billing (private and government)
Chapter 5-41
Mini-based Hospital System
Chapter 5-42
Business Process Reengineering
AISs were concerned with accounting transactions earlier are more concerned with business events now
Business events include important activities that affect the business are not captured by the financial accounting system
Business process reengineering (BPR) concerns redesigning business processes from scratch