WEL-COME TO ALL

PRESENTATION ON

ACCOUNTING INFORMATION SYSTEM

Developed By

Team – 5

MANU VINAY KUMAR SHREEVIDYA DIVYASHREE PAVITRA T S

OBJECTIVES

IntroductionAccounting Information System(AIS)Meaning Of AISTransaction Processing System Of AIS

Accounting Information Systems:-

The Study of Accounting Information Systems

FUNCTIONS OF MIS

Financial Marketing Production AIS Personal

MIS

Order entry/Sales

Billing/A.Rec./Cash receipts

General ledger

Payroll

Inventory

Purchasing/A. Pay./Cash disb.

What Is Accounting?

Accounting system is used to identify, analyze, measure, record, summarize, and communicate relevant economic information to interested parties.

The purpose of accounting is to measure and report the performance of organizations.

What Is A System ?

It is a kind of configuration of 3 steps , that includes Input , Process and Output .

INPUT PROCESS OUTPUT

FEEDBACK

What Is Information System?

An Information system is a framework in which data is collected , processed, controlled and managed through stages in order to provide information to users

Accounting Information System

Accounting Information Systems are the oldest and most widely used information system in business.

They record and report business transactions and other economic events.

Computer-based AIS record and report the flow of funds through an organization on a historical basis and produce important financial statements such as balance sheets and income statements.

An Accounting Information System is a unified structure that employs physical resources and components to transform economic data into accounting information for external and internal users.

AccountingAccounting

Information

Systems

Information Systems

Accounting Information Systems includes following transaction processing systems.

Order Processing Inventory Control Accounts Receivable Accounts Payable General Ledger Payroll.

AIS Subsystems

Order entrySales

System InventorySystem

Purchasing/A. Payable

System

Billing/A. Receivable

System

GeneralLedgerSystem

Payroll System

Order Processing System

Order processing is a key element of Order fulfillment. It captures and processes customer orders and produces data for inventory control and accounts receivable.

Order processing operations or facilities are commonly called "distribution centers".

"Order processing" is the term generally used to describe the process or the work flow associated with the picking, packing and delivery of the packed item(s) to a shipping carrier.

Inventory Control System

An inventory control system is a set of hardware and software based tools that automate the process of tracking inventory.

It processes data reflecting changes in inventory and provides shipping and record information.

The kinds of inventory tracked with an inventory control system can include almost any type of quantifiable good, clothing, books, equipment, and other item that consumers, retailers, or wholesalers may purchase.

Inventory control systems are employed in a wide variety of applications, but they all revolve around tracking delivery of goods to customers.

Inventory control is crucial in retail stores, especially those with a large number or variety of merchandise items for sale.

Inventory control is also used in warehouses to track orders and shipments, and for automated order processing.

Other important applications of inventory control systems are in manufacturing, shipping, and receiving.

Components Of Inventory Control System

Accounts Payable System

Accounts payable is money owed by a business to its suppliers and shown on its Balance Sheet as a liability.

It records purchases from, amounts owed to, and payments to suppliers, and produces cash management reports.

Payables are often categorized as Trade Payables, payables for the purchase of physical goods that are recorded in Inventory, and Expense Payables, payables for the purchase of goods or services that are expensed.

Common examples of Expense Payables are advertising, travel, entertainment, office supplies and utilities.

Accounts Receivable System

Account Receivable is money which is owned to a company by a customer for product and services provided on credit and produces invoices, monthly customer statements and credit management reports.

It is often treated as a current asset on a balance sheet.

Invoice : A bill issued by one who has provided product and services to customer.

The accounts receivable departments use the sales ledger, this is because a sales ledger normally records .- The sales a business has made.- The amount of money received for goods or services.- The amount of money owed at the end of each month varies (debtors).

General Ledger System

General Ledger is a book containing all the accounts for recording transactions relating to a company's assets, liabilities, owners' equity, revenue, and expenses. In modern accounting software or ERP, the general ledger works as a central repository for accounting data transferred from all sub-ledgers or modules like accounts payable, accounts receivable, cash management, fixed assets, purchasing and projects. General ledger is the backbone of any accounting system which holds financial and non-financial data for an organization.

The statement of financial position and the statement of income and comprehensive income are both derived from the general ledger. The general ledger is where posting to the accounts occurs. Posting is the process of recording amounts as credits (right side), and amounts as debits (left side), in the pages of the general ledger. The general ledger should include the date, description and balance or total amount for each account. It is usually divided into at least seven main categories. These categories generally include assets, liabilities, owner's equity, revenue, expenses, gains and losses.

Payroll System

Payroll system is the heart of any Human Resource System of an Organization.

It records the employee work and compensation data and produces paycheck.

In a company, payroll is the sum of all financial records of salaries for an employee, wages, bonuses and deductions .

In accounting, payroll refers to the amount paid to employees for services they provided during a certain period of time.

The primary mission of the payroll department is to ensure that all employees are paid accurately and timely with the correct withholdings and deductions, and to ensure the withholdings and deductions are remitted in a timely manner. This includes salary payments, tax withholdings, and deductions from a paycheck.

Payroll plays a major role in a company , payroll is crucial because payroll and payroll taxes considerably affect the net income of most companies and they are subject to laws and regulations .

Payroll Components

Payroll Process

ERP Vendors For AIS

NETSUITE : It is the first and only on –demand accounting ERP that supports order fulfillment , purchasing inventory , time and billing payroll.

EPICOR : It provides integrated real time software solution. EPICOR enables manufacturers to meet challengers of collaboration, production process improvement and on-time-delivery.

SAGE : Sage MAS 90, MAS 200 offers E-commerce , business intelligence tool, HR and Payroll, manufacturing and distribution.

Aplicor, QAD MFG/PRO are other ERP vendors.

THANK YOU