Accounting

Information System
Aisa Tri Agustini, SE, M.Sc., CPA
 Business Process

Kind of Information that

Organisation Need
 Definition of
Accounting Information System (AIS)

The Value of AIS

AIS and Corporate Strategy

Role of AIS in the Value Chain

 Definition of
Accounting Information System (AIS)

Systems:

a set of two or more interrelated components that

interact to achieve a goal

Accounting
Departement

Management Faculty of Economics Jember

Departement and Business University
Economic Development
Department
Breathing System Goal
Congruence

Consistent
Each
Subsystem is
designed to achieve
organizational

Inconsistent
Goal Conflict
 How to make the best systems of the Firm?

Business Process

Kind of Information that

Organisation Need

Input Process Output

 Data are facts that are collected, recorded,
Input (Data)
stored, and processed by an Information System.

Information is data that have been organized

Output
and processed to provide meaning and improve (Information)
the decision making-process

Information System Designers use Information Technology to

help decision maker more effectively filter and condense
information

The value of
Information
the Benefit
produced
- The cost of
Producing
 Reduced
Uncertainty

the Benefit Improved

produced Decisions

Improve ability to
plan and schedule
activities

The Time

The cost of
Producing

Resources
 Seven&Holding Co. invested
their resources in IT

a. Keep track of the 3000 items sold in each store and determines
what products are moving, at what time, and under what
weather condition
b. Keep track of what and when customers buy to make sure it
has in stock the products most frequently purchased
c. Orders sandwiches and rice dishes from suppliers automatically
d. Coordinates deliveries with suppliers
e. Prepares a color graphic display that indicates which store
areas contribute the most sales and profit
 Average daily sales of 7Eleven
Japan were 30% HIGHERand
its operating margins almost
DOUBLE those its closest
competitor

7Eleven Japan
Southland Corporation didn’t purchased 64% of
invest their resources in IT Southland and save
the company
(unlike 7Eleven in Japan) so
the effect is they had to file
for bankruptcy.
Characteristics of Useful
Information

Relevant Understandable

Reliable Verifiable

Complete Accessible

Timely
 Information Needs
and
Business Processes

Information Needs is all information that needed by

companies in order to make effective decisions.

Business Processes is a set of related, coordinated, and

structured activities and tasks that are performed by a person, a
computer, a machine, and that help accomplish a specific
organizational goal
Business Processes, Key Decisions,
Information Need

Business Processes Key Decisions Information Needs

A. How much A. Cash Flow Projections

B. Pro Forma Financial
Acquire Capital B. Find Investor
Statements
C. Borrow Funds C. Loan Requirement

Advertising and A. Which Media A. Cost Analysis

B. Content B. Market Coverage
Marketing C. Ambassador C. Ambassodor’s Fee
A. Customer Credit Status
A. Credit or Cash B. Customer Account Status
Collect Payment B. How to handle cash C.
D.
AR Aging Report
AR Records
receipts E. Sales

A. Whom to pay A. Vendor Invoice

Pay Vendors B. When to pay B. Accounts Payable Records
C. How much to pay C. Payment Term
Business Processes

A Transaction

Transaction Processing

Business Processes or
Transactions Cycle
 Revenue Cycle

Expenditure Cycle

Human Resources/
Payroll Cycle

Financing Cycle
6 Components of AIS
3 Important Business Functions
1. Collect and store data about organizational
activities, resources, and personnel

2. Transform data into information so management

can plan, execute, control, and evaluate activities,
resources, and personnel

3. Provide adequate controls to safeguards the

organisation’s assets and data
 How AIS can add value to an
Organisation
Improving the quality and Improving the Internal
reducing the costs of product Control Structure

Improving efficiency Improving Decision Making

Sharing Knowledge

Improving the efficiency and

effectiveness of its Supply Chain
How AIS can help organization to
improve decision making?
AIS can identify situations requiring management action

It can reduce uncertainty and thereby provide a basis for

choosing among alternative actions

It can store information about the result of previous decision

It can provide accurate information in a timely manner

It can analyse sales data to discover item that are purchased

together and can use such information to improve the layout
of merchandise or to encourage additional sales of related
item.
 3 Factors that Influence The Design
Information System
Although culture
affects the design of
the AIS, it s also true
that the AIS affects
culture by altering
the dispersion and
availability of Occupational
information. Strategy
Culture

AIS design is
affected by AIS
information
technology, the Information technology
organization s affects the company s
strategy, and the choice of business
Information
organization s strategy. To perform
Technology cost-benefit analyses on
culture.
IT changes, you need to
understand business
strategy.
THE ROLE OF THE AIS IN THE
VALUE CHAIN
THANKYOU