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 #5 - Answer Lean accounting is: A An AIS that is generally considered low cost (i.e., an entrylevel system) B Designed to support traditional financial performance measures C New performance measures that support decision-making by managers and operational improvement leaders D None of these Chapter 8-40 The Financing Process Process  How a company acquires and uses financial resources  Cash, other liquid assets, investments Acquisition  Sales of goods and services  Borrowing cash or selling ownership shares Chapter 8-41 The Financing Process Chapter 8-42 Financing Process Objectives Effective cash management  Lockbox systems and electronic funds transfer Cost of capital optimization Earn maximum return on investments Project cash flows Chapter 8-43 Benefits of a Lockbox System Chapter 8-44 Financing Process Inputs Remittance Advices  Accompanies a customer’s payment on account Deposit Slips  Documents account deposits Bank Statements  Used to reconcile company balance with bank balance Chapter 8-45 Financing Process Outputs Financial Statement Information Cash Budget Investment Reports Debt and Interest Reports Financial Ratios Financial Planning Model Reports Chapter 8-46 Financing Process Summary Chapter 8-47 Business Processes in Special Industries Professional Service Organizations Accounting, Law, Engineering, Consulting  Utilize time and billing information systems  Tracks billable hours and creates client bill  Not-for-Profit Organizations Provide services for the betterment of society  Emphasize fund accounting systems  Utilize budgetary AIS for evaluation measures  Chapter 8-48 Professional Service Organization Bill Chapter 8-49 Business Processes in Special Industries Health Care Organizations     Provide health care to patients Emphasize third-party billing Standardized codes provide efficiency in billing Rely on AIS to maintain patient information Chapter 8-50 Mini-based Hospital System Chapter 8-51 Business Process Reengineering Purpose   Inefficient or ineffective processes exist Redesign to improve efficiency and effectiveness Potential Failure of Reengineering    Unrealistic expectations Employee resistance to change Lack of top management support Chapter 8-52 Copyright Copyright 2012 John Wiley & Sons, Inc All rights reserved Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without the express written permission of the copyright owner is unlawful Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc The purchaser may make backup copies for his/her own use only and not for distribution or resale The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein Chapter 8-53 Chapter Chapter 8-54 ... efficiently  Collecting and reporting of information Chapter 8-25 Production Process Flowchart Chapter 8-26 Production Process Objectives Track purchases and sales of inventories Monitor and control manufacturing... 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. .. Business Processes   Sales and Purchasing Resource Management, Production, and Financing Information Needs   Typical AIS requirements Specialized information Chapter 8-2 Human Resource Management