© 2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart
The primary external exchange of information is withsuppliers (vendors).Information flows to the expenditure cycle from other cycles, e.g.:
±The revenue cycle, production cycle, inventory control, andvarious departments provide information about the need topurchase goods and materials.
Information also flows from the expenditure cycle:
±When the goods and materials arrive, the expenditurecycle provides information about their receipt to the partiesthat have requested them. ±Information is provided to the general ledger and reportingfunction for internal and external financial reporting.