AIS- INTRODUCTION TO TRANSACTION PROCESSING

21問 • 1年前

問題一覧

An economic event that affects the assets and equities of the firm, is reflected in its accounts and is measured in monetary terms.

FINANCIAL TRANSACTION

What are the 3 transaction cycles?

EXPENDITURE, CONVERSION AND REVENUE CYCLE

•In this cycle, the business activities begin with the acquisition of materials, property and labor in exchange for cash. • Most business to business transactions are based from credit relationship between the trading parties.

EXPENDITURE CYCLE

What are the systems used in Expenditure cycle?

PURCHASE/ ACCOUNTS PAYABLE SYSTEM, CASH DISBURSEMENT SYSTEM, PAYROLL SYSTEM AND FIXED ASSET SYSTEM

•This system recognizes the need to acquire physical inventory (such as raw materials) and places an order with the vendor. •When the goods are received, the purchases system records the event by increasing inventory an establishing an account payable to be paid at a later date.

PURCHASE/ ACCOUNTS PAYABLE SYSTEM

•When the obligation created in the purchases system becomes due, this systems authorizes the payment, disburses the funds to the vendor, and records the transaction by reducing the cash and accounts payable accounts.

CASH DISBURSEMENT SYSTEM

•It collects labor usage data for each employee, computes the payroll, and disburses paychecks to the employees. •Conceptually, payroll is a special case purchases and cash disbursement system. •Because of accounting complexities associated with payroll, most firms have a separate system for payroll processing.

PAYROLL SYSTEM

•This system maintains details about each piece of equipment and other fixed assets. •It provide a system for tracking for organizations’ physical assets.

FIXED ASSET SYSTEM

This cycle comprises two major subsystem: the production system and the cost accounting system.

CONVERSION CYCLE

It involves planning, scheduling, and control of the physical product through the manufacturing process. This includes determining raw materials requirements, authorizing the work to be performed, released of raw materials into production and directing the movement of the work in process through its various stage in manufacturing.

PRODUCTION SYSTEM

•It monitors the flow of cost information including labor, overhead and raw materials related to production. •The information that this system produces is used for inventory valuation, budgeting cost control, performance reporting, and management decisions, such as make-or-buy decisions.

COST ACCOUNTING SYSTEM

•Firms sell their goods and services to customers through this cycle. This cycle includes processing cash sales, credit sales, and the receipt of cash following a credit sale. •This cycle transactions also have a physical and a financial component, which are processed separately.

REVENUE CYCLE

What are the primary subsystems of Revenue cycle?

SALES ORDER PROCESSING AND CASH RECEIPTS

The majority of business sales are made on credit and involve tasks such as preparing sales order, granting credit, shipping products (or rendering of a service) to the customer, billing customers, and recording the transaction in the accounts (accounts receivable, inventory, expenses and sales).

SALES ORDER PROCESSING

•For credit sales, some period of time (days or weeks) passes between the point of sale and the receipt of cash. •It includes collecting cash, depositing cash in the bank, and recording these events in the accounts (accounts receivable and cash).

CASH RECEIPTS

Under purchases processing system:

INVENTORY CONTROL, PURCHASING DEPARTMENT, RECEIVING DEPARTMENT, ACCOUNTS PAYABLE DEPARTMENT AND GENERAL LEDGER DEPARTMENT

The process begins when the inventory control clerk prints purchase requisition file. Copies are sent to purchasing department and to open purchase requisition file.

INVENTORY CONTROL

After receiving the purchase requisition, the clerk sent as to vendor and adds record to digital order file.

PURCHASING DEPARTMENT

This department receives the goods and packing slip from the vendors and reconciles the blind copy of the purchase order.

RECEIVING DEPARTMENT

When the supplier's invoice arrives, the AP clerk reconciles the invoice, purchase order and receiving report, and prepare an AP packet.

ACCOUNTS PAYABLE DEPARTMENT

It receives a journal voucher fro. the AP department and an account summary from the inventory control. The general ledger reconciles both account.

GENERAL LEDGER DEPARTMENT

VITMOLOGY-PPT2

Anndrea S. Galupo · 22問 · 1年前

VITMOLOGY-PPT2