2. 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

3. Introduction Business Processes Information Needs Sales and Purchasing
Resource Management, Production, and Financing
Information Needs
Typical AIS requirements
Specialized information

4. 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

5. Personnel Function Flowchart

6. Payroll Function Flowchart

7. 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

8. 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

9. 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

10. Human Resource Management Summary

11. Study Break #1
All of the following activities are common to the Human Resource Management function except:
Hiring, training, and employing workers
Reporting on payroll deductions
Maintaining employee earnings records
Certified financial planning for employees

12. Study Break #1 - Answer
All of the following activities are common to the Human Resource Management function except:
Hiring, training, and employing workers
Reporting on payroll deductions
Maintaining employee earnings records
Certified financial planning for employees

13. Fixed Asset Management
Fixed Asset Management Function
Long-term Assets
Purchase, maintenance, valuation, disposal
Enterprise Asset Management System
Automate management of assets

14. 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

15. Fixed Asset Management Function Flowchart

16. Fixed Asset Management Inputs
Purchase Requisition
Requires approval by management
Receiving Report
Identifies receipt of fixed asset
Supplier Invoice
Sent when asset is shipped

17. 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

18. Fixed Asset Management Outputs
Financial Statement Information
Fixed Asset Register
Identification numbers
Location
Depreciation Register
Depreciation Expense
Accumulated Depreciation

19. Fixed Asset Management Outputs
Repair and Maintenance Reports
Current period expenses
Historical expenses
Report on Retired Assets
Disposal of fixed assets

20. Fixed Asset Management Summary

21. The Production 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

22. The Financing Process Process Acquisition
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

23. The Financing Process

24. Financing Process Objectives
Effective cash management
Lockbox systems and electronic funds transfer
Cost of capital optimization
Earn maximum return on investments
Project cash flows

25. 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

26. Financing Process Outputs
Financial Statement Information
Cash Budget
Investment Reports
Debt and Interest Reports
Financial Ratios
Financial Planning Model Reports

27. Financing Process Summary

28. Chapter 8