Major Information Flows in the Production Process

Slides:



Advertisements
Similar presentations
The Sales Journal and the Purchases Journal
Advertisements

Chapter 7 Customer Order and Account Management Business Processes
The Acquisition / Payment Process
Accounting Information Systems: Definitions and Characteristics.
The Operating Cycle and Merchandising Operations 6.
© 2014 Cengage Learning. All Rights Reserved. Learning Objectives © 2014 Cengage Learning. All Rights Reserved. LO4 Describe accounting procedures used.
Prepared by Diane Tanner University of North Florida Chapter 2 1 Normal Costing.
Systems Techniques and Documentation. Use of Systems Techniques in Systems Development What are the three phases of a systems development project? 1Systems.
MIS 325 PSCJ. 2  Business processes can be quite complex  Process model: any abstract representation of a process  Process-modeling tools provide a.
Chapter 8: Accounting Information Systems and Business Processes - Part II
The Islamic University of Gaza
Production Cycle Kevin Ma Steven Radcliff Jie Chen Ernesto Pena Bryan Vien PRODUCTION FLOWCHART: PAGE 3.
Chapter 5 Expenditure Cycle Applications. Expenditure Documents i.Purchase Requisitions ii.Purchase Orders iii.Receiving Report iv.Voucher Systems v.Invoice.
Enterprise Systems.
Flowchart Presentation Page 4 Allen Salas Calvin Kong Claudia Fung Jack Ponvanit Mark Kang Navid Rafiee.
Chapter 5: Job Order Costing
Inventory Flowchart Page 4 Cynthia Truong Annie Tang Yan Yan May Liu Mercy Muitah.
ACC 305 Dr. Rose Martin Page 3 Presented by: Glenda Disselkoen Lelah Stiger Selena Du Laura Noguera.
Pertemuan 17 The Sales/Collection Business Process Matakuliah: M0034 /Informasi dan Proses Bisnis Tahun: 2005 Versi: 01/05.
Introduction to SAP R/3.
SAP R/3 Materials Management Module
The Flow of Information in The Production Cycle
19 Job Order Costing Accounting 26e C H A P T E R Warren Reeve Duchac
Chapter Lead Black Slide © 2001 Business & Information Systems 2/e.
Production Planning Processes Theories & Concepts
Inspection Process  So Hang Mak Sarah Cruz  Metin OrucEugenia Vadhera  Mario HightowerChris Martinez.
© 2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Accounting Information & Reporting Systems by A. Aseervatham and D. Anandarajah. Slides prepared by Kaye.
© 2014 Cengage Learning. All Rights Reserved. Do Now: ●Where do you get new shoes? ●Have you ever had to wait for a size you need to be brought out to.
Production Planning Processes EGN 5620 Enterprise Systems Configuration (Professional MSEM) Fall, 2012.
Chapter 2 – Enterprise Systems
Lead Black Slide Powered by DeSiaMore1. 2 Chapter 10 Business Operations.
Accounting Information Systems System Descriptions.
Accounting for Purchases and Cash Payments
The Acquisition/Payment Process
Production Planning Processes EGN 5620 Enterprise Systems Configuration Spring, 2014.
Page 7 Project AIS Online Production Cycle Information System & ERP System Team members in order of appearance: Rie Rios Alex Sanjur Hai Do Lili Azimi.
Production Planning Group 4 Claudia· David· Lisa· Shakeia· Vicky.
1 California State University, Fullerton Chapter 10 Business Operations.
Modul ke: Fakultas Program Studi Akuntansi Biaya Direct Material Cost Diah Iskandar SE., M.Si dan Nurul Hidayah,SE,Ak,MSi 09 FEB Akuntansi.
Page 5: Job Costing System Gerald Katherine Armineh.
System Descriptions. What we will do today… Today, we will describe the billing and cash receipts systems of a simple company The points to think about.
Chapter 8 Transaction Processing, Electronic Commerce, and Enterprise Resource Planning Systems.
Group 1 Page 1 Elizabeth Yanez Yohana Flores Nicole Lugotoff Art Gonzalez Jr.
Production Process There are four major information flows in the Production Process. They are Acquisitions/Payment Process, the Production Process, the.
Team Members: Anita Ben Vincent Ryan. Step 1: An Inventory status report which tells the resources available in inventory and factor availability report.
CHAPTER 2 TYPES OF BUSINESS INFORMATION SYSTEM. INTRODUCTION Information System support business operations by processing data related to business operation.
Copyright  Oracle Corporation, All rights reserved. ® 11 i Overview of Cost Management.
Traditions and Innovations
Inventory Flowcharts Page 6 By: Bereket Gebreselassie Vance Cable.
McGraw-Hill/Irwin © 2013 The McGraw-Hill Companies, Inc., All Rights Reserved. Chapter 12 Sales/Collection Process.
Chapter 7-1 Chapter 7 Accounting Information Systems The Conversion Cycle Dr. Hisham Madi.
Click to edit Master title style 1 Lesson Click to edit Master title style 2 Job Order Cost Systems 19.
Production Planning Processes EGN 5620 Enterprise Systems Configuration Fall, 2015.
1 Chapter 5 Job Order Costing Cost Accounting Foundations and Evolutions Kinney and Raiborn Seventh Edition COPYRIGHT © 2009 South-Western, a part of Cengage.
© 2014 Cengage Learning. All Rights Reserved. Learning Objectives © 2014 Cengage Learning. All Rights Reserved. LO4 Describe accounting procedures used.
Functions in the Inventory and Warehousing CycleProcesspurchaseordersReceiverawmaterialsStorerawmaterialsProcessthegoodsStorefinishedgoodsShipfinishedgoods.
Prepared by Diane Tanner University of North Florida ACG Manufacturing Cost Flows 1-3.
 TATA CONSULTANCY SERVICES MM - INVOICE VERIFICATION.
Inventory Management Flowchart
Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Chapter 12 Merchandise Purchases and Accounts Payable.
Copyright © 2015 McGraw-Hill Education. All rights reserved
TRANSACTION PROCESSING SYSTEM (TPS)
Inspection Process So Hang Mak Sarah Cruz Metin Oruc Eugenia Vadhera
End of Production Process
The Fulfillment Process
Order-to-Cash (Specified Products) Scenario Overview
Order-to-Cash (Specified Products) Scenario Overview
Kevin Ma Steven Radcliff Jie Chen Ernesto Pena Bryan Vien
2 Job Order Costing Managerial Accounting 13e C H A P T E R Warren
Presentation transcript:

Major Information Flows in the Production Process By: Jennifer Ruiz de Castilla Manuel Flores Robert Ordóñez Jeremiah Henry

Introduction The Production Process is a recurring set of effective operations linked to manufacturing and production This process allocates costs to produce profitable products The controls will be examined at the end of our presentation.

Acquisitions/ Payment Process Sales/ Collections Process Planning     Sales/ Collections Process Planning Control Process Production Process Cost Standards Production Order Sales Order Standard Costs Purchase Order Raw Materials Inventory Management Production Management Finished Goods Inventory Management Receiving Report Raw Materials Inventory Work In Process Inventory Finished Goods Inventory Cost of Goods Sold Cost Accounting Completion of Production Vendor Invoice Time Card / Labor Ticket Raw Material Inventory Status Report Cost Activity or Standard Cost Variances Report Work In Process Inventory Status Report Finished Goods Inventory Status Report

Symbols Magnetic Disk Document Computer Processing Input/Output

Definitions Document: a document or report may be prepared by hand or printed by a computer (Steinbart, 72). Magnetic Disk: data stored permanently on a magnetic disk; used for master files and databases (Steinbart, 73). Computer Processing: a computer performed processing function; usually results in a change in data or information (Steingbart, 72). Input/Output: any input or output function on a program flowchart. Also, used to represent accounting journals and ledgers in a document flowchart (Steinbart, 72).

Where Do We Begin? Standard Cost Standard Cost Costs Cost Standards Accounting Standard Cost Variances Report We begin in the Planning Control Process department where we establish our cost standards or our budget. Our current cost standards document is entered into the Standard Costs Master File. Here it can be compared to the previous period’s budget stored in the database and management can use this tool to help become more efficient. The Standard Costs Master File is then sent to the Accounting Department to be processed and verified in order to update the Standard Cost Variance Report. Finally, an updated and current Standard Cost Variance Report is produced.

Moving Into Production Order Sales Order Production Management When a customer makes an order, whether at a store, by mail, by phone, or through a website, their order data gets recorded onto a Sales Order Document which contains information about the item numbers, quantities, prices, and other terms of sale. This document is generated in the Sales/Collections Department. The Sales Order document is then sent to the Production Dept. where a Production Order is made. The production order document authorizes the manufacture of a specified quantity of a particular product. Management must process the production order into the WIP Inventory Master File to see if the order can be fulfilled with what is available on hand. Otherwise, a back order, stating insufficient inventory, will have to be created. Finally, the WIP Inventory Status Report is also updated. WIP Inventory WIP Inventory Status Report

What’s Needed? Raw Materials Raw Inventory Raw Materials Materials Status Report Purchase Order Raw Materials Inventory Management The Raw Materials Inventory Master File is inspected to acquire the amount of available materials on hand. After processing the database, Management determines what materials are needed to produce the final product and prepares the Purchase Order. This document requests a supplier to sell and deliver specified products at designated prices. It is also a promise to pay and becomes a contract once the supplier accepts it. The Raw Materials Inventory Status Report is also updated based on the updated database of the master file. When raw materials get sent to production, this will trigger a debit to work in process.

Receiving Materials The Purchase Order gets sent out to the vendor and is returned with the raw materials ordered and the vendor invoice. At this time the receiving report is also made to record all that was received. It can be verified to see if anything is missing. The Receiving Report and Vendor Invoice both update the Raw Materials Inventory Master File. Raw Materials Inventory will be debited and the Vendor Invoice will credit Accounts Payable. Also, once the Master File is updated, Management must once again process the database to verify that everything is correct and in agreement with the original purchase order. And finally, once again, the status report is updated. Purchase Order Raw Materials Inventory Management Receiving Report Raw Materials Inventory Vendor Invoice Raw Materials Inventory Status Report

Time Accountability Time Card/ Labor Ticket Cost Accounting Cost Activity Report The Accounting Department compares and verifies that the Receiving Report and Vendor Invoice match with the original Purchase Order. This allows them to authorize the Work In Process (WIP) for the product. Time and labor are accounted for with each employee’s time card/labor ticket. The Cost Activity Report is updated with the activities performed by the Accounting Department.

Time to Complete Production Cost Accounting WIP Inventory WIP Inventory Status Report Completion of Production Now that the Accounting Dept. has given consent, by updating the WIP Inventory database, the WIP Inventory can be completed in production. In other words, the completion of production process is authorized by the updated database of the WIP Inventory Master File. The WIP report is updated as WIP Inventory is moved through completion of production which transfers to finished goods inventory.

Finished Goods The Completion of Production process Order Finished Goods Inventory Management The Completion of Production process updates the Finished Goods Inventory Master File. The updated Master File allows for the Status Report to be updated and current. Finished Goods Inventory Management will also process the database of the Master File to verify that the final product matches the original production order. Finished Goods Inventory Completion of Production Finished Goods Inventory Status Report

Finally… WIP Inventory Finished Goods Inventory Cost of Goods Sold Completion Of Production As the product is completed, it can now be shipped out to the customer. The completion of the product thus triggers a debit to Finished Goods and a credit to Work In Process.

Control Objectives Product Design Planning and Scheduling Produces products that are profitable and can be changed if necessary Poor design can be costly throughout the production process Planning and Scheduling Management must control manufacturing with approved production orders. Budgets must be followed and implemented during production

Control Objectives Production Operations Cost Accounting Work in process is controlled by documentation of raw material used Disaster recovery plans are produced by vendors in order to minimize losses during a disaster Cost Accounting Physical counts reconcile actual inventory against system counts

Cost Objectives General Threats Periodic reports on performance control costs Behavior can be changed if costs are not being controlled by management

Thank You!!! (Applause Please)