Accounting information systems 12th SIMKIN and norman chapter 08

Chapter 8:

Accounting Information Systems and Business
Processes - Part II
Introduction
The Resource Management Process
The Production Process
The Financing Process
Business Processes In Special Industries
Business Processes Reengineering

Chapter
8-1


Introduction
Business Processes



Sales and Purchasing
Resource Management, Production, and Financing

Information Needs



Typical AIS requirements
Specialized information

Chapter

8-2


Human Resource
Management
Personnel function


Hire, train, and employ appropriately qualified
employees

Business Process Management Software
Packages


Automate the core processes

Payroll Processing Information Systems


Process payroll activities and reporting
Chapter
8-3


Human Resource
Management Objectives
Hiring, training, and employing workers
Maintaining employee earnings records
Complying with regulatory reporting requirements

Reporting on payroll deductions
Making timely and accurate payments to
employees
Providing an interface for personnel and payroll
activities
Chapter
8-4


Personnel Function Flowchart

Chapter
8-5


Payroll Function Flowchart

Chapter
8-6


Human Resource
Management Inputs
Personnel Action Forms


Documents hiring or changes in employee status

Time Sheets


Tracks hours worked

Payroll Deduction Authorizations


Authorization to deduct certain amounts

Tax Withholding Forms


Authorization to withhold appropriate tax amounts
Chapter
8-7


Human Resource
Management Outputs
Financial Statement Information
Employee Listings



Current employees
May contain employee-specific information

Paychecks


Final documents; subject to strict internal controls

Check Registers


Used to make journal entries for salary and payroll tax
expenses
Chapter
8-8


Human Resource
Management Outputs
Deduction Reports


Summaries of deductions for employees as a group

Payroll Summaries


Used to analyze expenses

Tax Reports



Government required information
Income tax, social security tax, unemployment tax
Chapter
8-9

Human Resource
Management Summary

Chapter
8-10


Study Break #1
All of the following activities are common to the Human
Resource Management function except:
A. Hiring, training, and employing workers
B. Reporting on payroll deductions
C. Maintaining employee earnings records
D. Certified financial planning for employees

Chapter
8-11


Study Break #1 - Answer
All of the following activities are common to the Human
Resource Management function except:
A. Hiring, training, and employing workers
B. Reporting on payroll deductions
C. Maintaining employee earnings records
D. Certified financial planning for employees

Chapter

8-12


Fixed Asset Management
Fixed Asset Management Function



Long-term Assets
Purchase, maintenance, valuation, disposal

Enterprise Asset Management System


Automate management of assets

Chapter
8-13


Fixed Asset Management
Objectives
Tracking purchases of fixed assets
Recording fixed asset maintenance
Valuing fixed assets
Allocating fixed asset costs (recording depreciation)
Tracking disposal of fixed assets

Chapter
8-14

Fixed Asset Management Function
Flowchart

Chapter
8-15


Fixed Asset Management
Inputs
Purchase Requisition


Requires approval by management

Receiving Report


Identifies receipt of fixed asset

Supplier Invoice


Sent when asset is shipped

Chapter
8-16

Fixed Asset Management
Inputs
Construction Work Order


If asset is built by company

Fixed Asset Change Form



Transfer of fixed asset
Locations, sale, trade, or retirement

Repair and Maintenance Form


Notification to update expense and asset accounts

Chapter
8-17


Fixed Asset Management
Outputs
Financial Statement Information
Fixed Asset Register
Identification numbers
 Location


Depreciation Register
Depreciation Expense
 Accumulated Depreciation


Chapter
8-18


Fixed Asset Management
Outputs
Repair and Maintenance Reports



Current period expenses
Historical expenses

Report on Retired Assets


Disposal of fixed assets

Chapter
8-19


Fixed Asset Management
Summary

Chapter
8-20


Study Break #2
What is the objective of the fixed asset management function?
A. To track purchases of fixed assets
B. To manage the purchase, management, valuation, and
disposal of an organization’s fixed assets
C. To record maintenance and depreciation of fixed assets
D. To keep a current listing of approved vendors

Chapter
8-21


Study Break #2 - Answer
What is the objective of the fixed asset management function?
A. To track purchases of fixed assets
B. To manage the purchase, management, valuation, and
disposal of an organization’s fixed assets
C. To record maintenance and depreciation of fixed assets
D. To keep a current listing of approved vendors

Chapter
8-22


Study Break #3

Why do companies use BPM solutions for the fixed asset
management function?
A. Decrease machine downtime and maintenance costs
B. Reduce inventory
C. Integrate data and coordinate logistics
D. All of the above

Chapter
8-23


Study Break #3 - Answer
Why do companies use BPM solutions for the fixed asset
management function?
A. Decrease machine downtime and maintenance costs
B. Reduce inventory
C. Integrate data and coordinate logistics
D. All of the above

Chapter
8-24


The Production Process
Process


Begins with request for raw materials



Ends with transfer of finished goods to warehouses

Primary Objectives


Converting raw materials to finished goods efficiently



Collecting and reporting of information
Chapter
8-25