Accounting Information Systems: A Business Process Approach Chapter Two: Business Processes and AIS Data

Exhibits: 2.3, 2.4, 2.5 Tables:

Exhibit 2.3 Guidelines for Recognizing Events Guideline 1: Recognize the first event in a process occurs when a person or department within an organization becomes responsible for an activity. Guideline 2: Ignore activities that do not require participation by an internal agent. Guideline 3: Recognize a new event when responsibility is transferred from one internal agent to another. Guideline 4: Recognize a new event when a process has been interrupted and resumed later by the same internal agent. After the interruption, someone outside the organization or the process may restart the process. Alternatively, the process may continue at a scheduled time. Guideline 5: Use an event name and description that reflects the broad nature of the event.

Exhibit 2.4 Examples of Common Event Names for the Revenue Cycle Respond to customer inquiries  Make appointment (for customer) Develop agreements with customers to provide goods and services in the future  Take customer order  Sign contract (as seller)  Prepare quote/estimate offering goods or services on certain terms  Make reservation (e.g., airlines and hotels)  Register student in a class Provide services or ship goods to the customer  Pick goods  Ship goods  Rent or lend goods  Perform service Bill customer or third party  Bill customer  Bill third party (e.g., credit card company or insurance provider) Collect cash  Receive cash, check, or credit card Deposit cash in the bank Prepare reports

Exhibit 2.5 Examples of Common Event Names for the Acquisition Cycle Consult with supplier  Make appointment (with supplier) Process requisitions  Request quote from suppliers  Make requisition Develop agreements with suppliers to purchase goods or services in the future  Sign contract (as buyer)  Make reservation (e.g., airlines and hotels) Receive goods or services from the supplier  Receive goods  Deliver goods to user  Borrow or rent goods  Receive service Recognize payable, select invoices, and pay cash  Accept purchase invoice  Write checks  Sign checks and send to supplier

Table 2.1 First Event in the Revenue Cycle of Angelo’s Diner Internal agent assuming EventresponsibilityStarts whenActivities in the event 1ServerCustomer is readyRecord customer order to orderon sales ticket

Table 2.2 Events in the Revenue Cycle of Angelo’s Diner Internal agent assuming EventresponsibilityStarts whenActivities in the event 2Kitchen staffKitchen staffCook meal receives order 3ServerServer picksPick up, deliver food up meal 4CashierCustomer comesAccept cash and sales ticket from to cashiercustomer; ring up sale; give change; print sales summary; give sales summary to manager 5ManagerCashier givesCount cash and compare it to sales sales summarysummary and total of sales tickets

Table 2.3 Events Identified by Interruption of Processing Internal agent assuming EventresponsibilityStarts whenActivities in the event 4aCashierCustomer comesCollect cash; ring up sale; give to cashierchange 4bCashierShift endsPrint sales summary; give sales summary to manager

Table 2.4 Naming Events in the Revenue Cycle of Angelo’s Diner Internal agent assuming EventresponsibilityStarts whenActivities in the event Take orderServerCustomer isRecord customer order on ready to ordersales ticket Prepare foodKitchen staffKitchen staffCook meal receives order Serve foodServerServer picksDeliver meal to customer up meal Collect cashCashierCustomer comesAccept cash and sales ticket; to cashierring up sale; give change Close registerCashierShift endsPrint sales summary; give sales summary to manager Reconcile cashManagerCashier printsCount cash and compare it sales summaryto sales summary and total of sales tickets

Table 2.5 Events in ELERBE’s Revenue Cycle Internal agent assuming EventresponsibilityStarts whenActivities in the event Respond toSales representativeSales reps visitOn-campus visit or telephone customer inquiriesprofessor orexchange discussing products, professor callsavailability, and price Take orderOrder entry clerkOrder is receivedOrder received by mail, fax, or ; enter customer and order details; print picking ticket and sales order Pick goodsWarehousePicking ticket isLocate ordered goods at ware- employeereceivedhouse; pick and assemble goods; send to Shipping Department Ship goodsShipping clerkGoods and completedCreate packing slip; pack goods picking ticket arriveand give to carrier; send copy of packing slip to Billing Department Bill customerBilling clerkPacking slip arrivesCompare sales order to packing slip; record billing information; print invoice and send to customer Collect cashCash receipts clerkCheck is received inRecord cash receipt and store the mailcash Deposit checksOffice managerChecks are receivedDeposit checks in bank; obtain from cash receiptsdeposit receipt

Table 2.6 Files Used in ELERBE’s Order Processing Application Panel A: Inventory File ISBNAuthorTitlePriceOn HandAllocated BarnesIntroduction to Business$78.354, CromwellBuilding Database Applications$65.003, CromwellManagement Information Systems$68.005, JohnsonPrinciples of Accounting$70.008, PlattIntroduction to E-commerce$72.005, RosenbergHTML and Javascript Primer$45.006,0000 ISBN = unique international standard number assigned to the book; Price = standard selling price; Quantity Allocated = quantity of books committed to customer orders but not yet shipped. Panel B: Customer File Contact Customer#Name AddressPersonPhone 3450Brownsville C.C.Brownsville, TXSmith(956) Educate, Inc.Fairhaven, MACosta(508) Bunker Hill CollegeBunker Hill, MALaFrank(617)

Table 2.6 Files Used in ELERBE’s Order Processing Application (Concluded) Panel C: Order File Order#Order DateCustomer#Status /11/ Open /15/ Open /16/ Open Order Date = date the order was received by ELERBE, Inc. Panel D: Order_Detail File Order#ISBNQuantity ISBN = number identifying the book; Quantity = quantity ordered

Table 2.7 ELERBE’s Need for Transaction Files EventTransaction file needed? Respond toPossibly, if salespeople wish to track a customer’s communications with the customer inquiries company in order to understand customer preferences. Take orderYes. An Order File is needed to record details so that the order can be filled. Pick goodsProbably not. The actual quantities picked can be stored in the file maintained for shipping. Ship goodsYes. A Shipment File is needed to record quantities shipped so that inventory balances can be updated. Bill customerYes. An Invoice File is needed to record invoice number, payment terms, and amount owed so that (1) sales reports can be printed, (2) the customer’s balance due can be updated, and (3) data are available for processing the payment when received. Collect cashYes. A Cash Receipt File is needed to record payments so that they can be applied against invoices and so that customer balances and cash balances can be updated. Deposit checksPossibly. A Deposit File can be created for comparison to the deposits reported on the bank statement, although merely keeping deposit receipts might serve this purpose.