ACCOUNTING INFORMATION

SYSTEM CYCLE

By: Adhi Alfian

Bandung, Mei 2018

 AIS Subsystems
• Revenue cycle: operations associated with providing goods and services to customers and
collecting cash in payment for those sales.
• Expenditure cycle: operations associated with the purchase of and payment for goods and
services.
• Production Cycle: operations associated with the manufacturing of products.
• HR & Payroll Cycle: operations associated with effectively managing the employee work force.
• GL & Reporting Cycle: information processing operations involved in updating the general
ledger and preparing reports that summarize the results of an organization’s activities
 Procurement data

Expenditure Transaction data

Cycle
Procurement data
Transaction data
Production
Cycle
Procurement data

Procurement data GL &

Other Transaction data Reporting Transaction data
Employee activity
function Product data
Cycle

Employee activity

Employee activity

HR &
Revenue
Payroll Transaction data
Cycle
Cycle
Employee activity

Procurement data
Employee activity
REVENUE CYCLE
Subsistems
Revenue Cycle

Sales Order Entry Shipping Billing & AR Cash Collections

Handle customer
Take customer order Pick and pack order Customers bill
remittances

Check & approve Deposit the

Ship order Update AR
customer’s credit remittances in bank

Check inventory
availability
 Key Decisions
• Provide the right product in the right place at he right time for the right price.
• Products customization to each customers needs and desires.
• Inventory quantity, acquisition method, warehouse, spesification, etc.
• Merchandise delivery method.
• Customers credit decision.
• Credit terms for each customer.
• Maximize company cash flow from customer payments.
Data, Information, and Documentation
No Revenue Data Information Documentation
Subsystem
1 Sales Order Entry Customer profile, credit policy, order detail sales order, inventory
customer credit status, (include detail about card
inventory availability, delivery, payment, and
order spesification terms)
2 Shipping order detail, delivery Delivery activity & status, packing slip, picking
method, merchandise merchandise leftover ticket, delivery ticket,
data merchandise card
3 Billing and AR Delivery status, order Payment method, Customer invoice,
detail, payment term customer AR credit memo
4 Cash Collection Payment method, bank Payment status, cash Bank check, bank
account data account position reconciliation,
payment receipt
EXPENDITURE CYCLE
Subsistems
Expenditure Cycle

Receiving and storing

Ordering goods, supplies Paying for goods, supplies
goods, supplies and
and services and services
services

Goods request Goods receive Account payable update

Goods order Goods store Payment

 Key Decisions
• Inventory optimal level.
• Suppliers who provide the best quality and service at the best prices.
• Inventories and supplies warehousse.
• Purchases consolidation unit to obtain optimal prices.
• Payments method to vendors to maximize cash flow.
Data, Information, and Documentation
No Revenue Data Information Documentation
Subsystem
1 Ordering goods, Goods availability, cash Order detail, cash account purchase requisition,
supplies and availability, vendor position purchase order,
services profile, goods term
2 Receiving and Order detail, delivery Goods delivery status, Receiving report,
storing goods, method warehouse status inventory card
supplies and
services
3 Paying for goods, Order detail, receiving Payment status, cash Bank reconciliation,
supplies and report, invoice, account position, payment receipt
services
PRODUCTION CYCLE
Subsistems

Production Cycle

Product design Planning and scheduling Production operations Cost accounting

 Key Decisions
• Which activities give most effective and efficient production process.
• Provide accurate and timely cost accounting information (include product mix, product
pricing, resource allocation and planning, cost management).
Data, Information, and Documentation
No Revenue Data Information Documentation
Subsystem
1 Product design Customer requirements, Product design, product Bill of materials,
production budget spesification Operations list

2 Planning and Product design, Resources allocation, Master production

scheduling resources availability production plan, schedule, materials
production method requisition,
3 Production Production plan, budget utilization, move tickets
operations production method resources utilization,
4 Cost accounting Resources allocation, Production budget, Cost allocation
product spesification, product cost, cost
production plan allocation
PAYROLL CYCLE
 Subsistems

Payroll
Cycle
Validate time Disburse
Update master and Disburse payroll taxes
payroll file attendance payroll and other
data deductions
Calculate
Update tax Prepare employer-paid
rates and payroll benefits and
deductions
taxes
 Key Decisions
• Collect and integrate data with various types of information & division.
• Payroll & other expense payment system.
Data, Information, and Documentation
No Revenue Data Information Documentation
Subsystem
1 Update master Employee data, Payroll information payroll master file
payroll file
2 Update tax rates Tax and other deduction Tax and other deduction Tax and other
and deductions data, employee data, information deduction
recapitulation
3 Validate time and Employee data, Employee time working Time cards
attendance data employee working
activity, employee
working time record,
working absence
justification
Data, Information, and Documentation
No Revenue Data Information Documentation
Subsystem
4 Prepare payroll Employee time working, Payroll budget Payroll list
payroll rate, employee
data, tax and other
deduction
5 Disburse payroll Payroll budget, Payroll expense Payroll payment
employee data, receipt
6 Calculate Employee time working, Employer-paid benefits Employer-paid benefits
employer-paid payroll rate, employee and taxes and taxes list
benefits and taxes data, tax and other
deduction
7 Disburse payroll Employer-paid benefits Employer-paid benefits Employer-paid benefits
taxes and other and taxes budget, and taxes expense and taxes payment
deductions employee data receipt
GL & REPORTING CYCLE
Subsistems

GL & Reporting
Cycle

Update the general Prepare financial Produce managerial

Post adjusting entries
ledger statements reports
 Key Decisions
• Collect and integrate data with various types of information & division.
• Accounting policy and regulation.
Data, Information, and Documentation
No Revenue Data Information Documentation
Subsystem
1 Update the general General accounting General ledger account Transaction voucher
ledger transaction position
2 Post adjusting Specific accounting Adjustment entries Transaction voucher
entries transaction
3 Prepare financial General ledger data Financial statements Accounting worksheet
statements
4 Produce General accounting Managerial reports Transaction voucher
managerial reports transaction, transaction
budget
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