ACTG 313 September 14, 2015

Self-Assessment 5

-OK- does not mean “okay”.

Data Organization Business Activity Data Transmission Query Data Capture Formatting/PresentationInformation Selection Storage User

Data Organization Business Activity Data Transmission Query Data Capture Creating the Report Storage User Information

Data Organization Business Activity Data Transmission Query Data Capture Formatting/Presentation Selection Storage User Information

The Accounting Information System is responsible for capturing, transporting, organizing, storing, retrieving, formatting and presenting the data so that it ends up as usable information reported to those who need it. Practically everyone in the organization uses the Accounting Information System.

Data Organization Business Activity Data Transmission Query Data Capture Formatting/PresentationReport Selection Storage User

noun

Data Organization Business Activity Data Transmission Query Data Capture Formatting/Presentation Selection Storage User Information

Who accounts for the inventory spoilage? How do they do it? Who accounts for damage in forklift accident? Who should be notified when a spare part is taken from the parts storeroom and put in service? How does the gate guard know to expect a truck? Who provides the truck seal number to the customer?

Who credits the receivable when we file an insurance claim? Who makes the entry to record unearned revenue? How do we ensure that customer payments all actually make it all the way to the bank? Who handles the errors on a customer’s bill?

Who?

Where?

noun verb

Data Flow Diagram (DFD) shows data flow, but does not give much information about activities, assignments, chronological sequence, job responsibilities, documentation, etc.

Entity-Relationship (E-R) Diagram shows specific data elements, cardinalities, and other essential information for database creation… but still gives no information about activities, assignments, chronological sequence, job responsibilities, documentation, etc.

Business Process Diagram (BPD) Similar to a flowchart, but (originally) used only 2-3 symbols. Relies on extensive text within the symbols to explain what’s happening. Has been revised to use several “versions” of the symbols, and now is more complicated than flowcharting.

Flowcharting Uses symbols to represent: –People performing job titles/responsibilities –Outside entities, banks, vendors, trucking cos. –Processes, Operations, and Activities –Decision points, logic branches –Computer input, output, transmission –Storage: online, offline, and physical –Documents: online and paper

Flowcharting Uses symbols to represent: –People performing job titles/responsibilities –Outside entities, banks, vendors, trucking cos. –Processes, Operations, and Activities –Decision points, logic branches –Computer input, output, transmission –Storage: online, offline, and physical –Documents: online and paper

Flowcharting Uses symbol position to represent relationships: chronological, physical, etc. Uses arrows to denote direction of data/information flow

When Done Correctly, Flowcharting… Shows the business activities generating the data, and who is taking part in that activity. Shows where (within the organization) the data is captured, and who (or what process) is capturing data. Shows where the data is transmitted (from and to). Shows where the data is organized and stored. Shows who uses the information derived from the data.

When Done Correctly, Flowcharting… Can indicate internal controls, control points, control weaknesses, threats, and other potential problems Describes the “route” the numbers take, and… Can indicate “threats” to those numbers

The PURPOSE of Flowcharting is COMMUNICATION

$$$ Goods & Services BUYERSELLER TRANSACTION … over time … many activities and events CYCLE

$$$ Goods & Services BUYERSELLER

JOB TITLES Requisitioner Manager Purchasing Agent Vendor

Requisitioner Purchasing Receiving Management Vendor What gets debited and what gets credited? Accts Payable

JOB TITLES Requisitioner Manager Purchasing Agent Vendor Receiving Dock Clerk Accounts Payable Clerk

JOB TITLES Cashier Controller Treasurer

JOB TITLES Vendor Trucking Company Post Office Bank Collection Agency Court

DOCUMENTS Purchase Requisition RFP, RFQ, RFB Purchase Order Order Acknowledgement Packing Slip Shipping Manifest Bill of Lading Receiving Voucher Vendor Invoice Payment Voucher Statement of Account Dunning Notice Check (payables check) Signature Card (at the bank) Check Register Bank Statement

PROCESSES Completing forms Approval (for information purposes) Unloading merchandise Inspecting, Opening, Checking Mdse Transporting to the warehouse? Opening the mail Printing, mailing, transmitting forms to outside parties?

DECISIONS Management approval or disapproval Is merchandise damaged? Is merchandise what was ordered? Is 3-way match complete? Is invoice due? Does check require second signature?

$$$ Goods & Services BUYERSELLER TRANSACTION … over time … many activities and events CYCLE

$$$ Goods & Services BUYERSELLER VENDOR

$$$ Goods & Services BUYERSELLER Purchase Raw Materials Inventory for Sale Supplies Services LT Assets Etc. etc. etc. VENDOR

Purchasing Cycle Procurement Cycle Acquisition Cycle Expenditure Cycle Disbursements Cycle Payables Cycle

Homework Assignment 6 Video from HW5: Introduction to AIS Reading & Study. Come up with your own names for steps. Optional: group discussion on names of the steps Recommend: Group review of terms – Units 4, 5, 6, 7 Two Big Group Homework Assignments coming up