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AIS Ch-5 Transaction Cycles and Accounting Applications
AIS Ch-5 Transaction Cycles and Accounting Applications
PROF.DR.CHINNIAH ANBALAGAN
PROFESSOR OF ACCOUNITNG AND FINANCE
COLLEGE OF BUSINESS AND ECONOMICS
SAMARA UNIVERSITY, AFAR, ETHIOPIA EAST AFRICA
MAIL ID: DR.CHINLAKSHANBU@GMAIL.COM
Organizing Accounting Applications
2
Batch processing
Jobs are gathered and stored until a suitable quantity
by a different operator.
Any discrepancies are corrected.
The transaction file is transferred to the main
computer.
This may be physically or electronically between
computers.
Processing begins at a scheduled time – maybe
Real-time Processing
Transactions are processed immediately they occur
S a le s O rd e r
1
C re d it / C u s to m e r
S e rv ic e R EV EN U E C Y CLE
2 (S U B S Y S T E M )
C a s h R e c e ip ts /
C o lle c tio n s
6
S h ip p in g
3
B illin g / A c c o u n ts
R e c e iv a b le
4 /5
Cont’d………
11
Billing
Warehouse (stock release or picking ticket)
Shipping (packing slip and shipping notice)
Cont’d………
12
cheques
updates the cash receipts journal
prepares a deposit slip
prepares a journal voucher to send to G/L
G/L department:
Reconciles the journal voucher from Cash Receipts
P u rc h a se R e q u isitio n P u rc h a sin g
1 2
PR O C U R EM EN T C Y C LE
(S U B S Y S T E M )
R e c e iv in g /
C a sh D isb u rse m e n ts In sp e c tio n
3
5
A c c o u n ts P a ya b le
4
Cont’d……….
20
to Cash Disbursements
A/P updates the accounts payable subsidiary ledger
Cash Disbursements:
Prepares the cheque
Records the information in a cheque register (cash
disbursements journal)
Returns paid vouchers to A/P, mails the cheque to
the supplier
Cont’d……….
23
manual review
Electronic Data Interchange (EDI)
Purchases of
Fixed Programmed decision rules
inventory should be
Automating inventory in EDI
authorized by the and JIT
Faulty inventory model can lead to
Inventory Control
over or under purchasing
department not by Cash disbursements automate
purchasing agents cheque printing and signing.
A/P authorizes the Programming logic must be
payments of bills, not flawless
the cash Automated signing only below a
Cont’d……..
31
numbers.
The controller, who provides adjusting entries.
35
THANKS
END OF CHAPTER FIVE