Accounting information system an overview 9e bodnar hopwood chapter 08

Procurement and Human Resource Business Processes Chapter  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 8–1 Learning Objective Describe the procurement business process  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 8–2 Overview Procurement is the business process of selecting a source, ordering, and acquiring goods or services Obtained internally Purchased  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 8–3 The Procurement Business Process Requirement determination Issue purchase order Selection of source Receipt of the goods Request for quotation Invoice verification Selection of a vendor Vendor payment  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 8–4 The Procurement Business Process ERP (enterprise resource planning) systems are capable of storing and processing a vast amount of information pertaining to the procurement business process  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 8–5 The Procurement Business Process SAP R/3 supports procurement in its materials management module Documents in R/3 are “online documents.” Documents may also be printed and exchanged manually  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 8–6 The Procurement Business Process Purchase requisition Request for quotation Quotation Purchase order Outline agreements Contracts Scheduling agreements Purchasing information records  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 8–7 The Procurement Business Process All procurement documents are assigned a document type code This code determines the fields that are displayed on video screens It also controls the range of unique numbers that are assigned to particular document types  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 8–8 Master Records Master records are created in R/3 for the “objects” that reflect the organizational structure and business processes of the company The coding system incorporates fields that identify company, plant, storage location, purchasing organization, and purchasing group  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 8–9 Inventory Management The IM component of R/3 records both the value and quantity of inventory Enter and check goods movement Manage inventory stocks Take a physical inventory  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 8– Voucher Systems a file of approved but unpaid invoices a file of paid invoices a vendor file showing both paid and unpaid amounts, ordered by vendor ID  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 8– Learning Objective Describe the human resource business process  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 8– Human Resource Management Business Process The HR system should provide tools for the setup and maintenance of information pertaining to the organizational structure A listing of jobs that exist in an organization A listing of job descriptions A listing of any qualifications that are required for a job  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 8– HR Processing in SAP R/3 HR data is immediately available to anyone who has authorization to use it because HR data is online The HR component can be implemented standalone or it can be integrated with other modules  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 8– HR Processing in SAP R/3 Personnel Administration module (HR-PA) Personnel Planning and Development module (HR-PD)  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 8– HR Processing in SAP R/3 Time Management Payroll Travel Expense  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 8– HR Data Structure The HR data structure contains three elements HR master data HR data organization HR objects  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 8– Learning Objective Illustrate controls that apply to payroll accounting  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 8– Transaction Cycle Controls in Payroll Processing Payroll processing is very complex All levels of government impose payroll taxes Regulations and rates are constantly changing The payroll system requires frequent modifications  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 8– Transaction Cycle Controls in Payroll Processing Payroll processing is one area in which the law imposes not only a fine but a jail sentence for willful negligence in maintaining adequate records  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 8– Transaction Cycle Controls in Payroll Processing Timekeeping Job time summary Payroll Personnel Authorization, notification Authorization, notification Employee time cards Employee hiring, terminations, raises, and deductions Reconcile Employee time cards Payroll register Paychecks  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 8– Transaction Cycle Controls in Payroll Processing What is an independent paymaster? The person who distributes the pay is independent of personnel, timekeeping, and payroll preparation  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 8– Payroll Processing Requirements Numerous files must be maintained in a payroll system What are some examples of these files? Basic employee information Government reports Payroll register or journal Tax tables  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 8– Payroll Processing Requirements Social security and other tax legislation impose several taxes based on payrolls (FICA) old-age, survivors, disability, and hospital insurance Federal unemployment insurance State unemployment insurance Income taxes withheld  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 8– End of Chapter  2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood – 48 ... Publishing, Accounting Information Systems, 9/e, by Bodnar/ Hopwood 8–9 Inventory Management The IM component of R/3 records both the value and quantity of inventory Enter and check goods movement Manage... Business Publishing, Accounting Information Systems, 9/e, by Bodnar/ Hopwood 8– Internal Audit Cancelled checks Bank Bank statement Independent of cash disbursements Bank reconciliation Bank reconciliation... Accounting Information Systems, 9/e, by Bodnar/ Hopwood 8–4 The Procurement Business Process ERP (enterprise resource planning) systems are capable of storing and processing a vast amount of information