Chapter
8-1
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
8-2
Introduction
Business Processes


Sales and Purchasing
Resource Management, Production, and Financing
Information Needs


Typical AIS requirements
Specialized information
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
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
8-21
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
8-22
The Financing Process
Chapter
8-23
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
8-24
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
8-25
Financing Process Outputs
Financial Statement Information
Cash Budget
Investment Reports
Debt and Interest Reports
Financial Ratios
Financial Planning Model Reports
Chapter
8-26
Financing Process Summary
Chapter
8-27
Chapter 8
Chapter
8-28