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INFS2001 week5 23Jul08 - Learning objectives 1 2 3 Defining...

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INFS 2001 Business Information Systems Week 5 /Slide 1 Learning objectives 1. Defining the cycles 2. Outline why we study the cycles 3. Examine the payment cycle :- a) What are the standard documents used? b) What processes could be performed? c) What is an appropriate Level 0 logical DFD? 1 st in-class assignment question Note DFDs depend upon the defined process (and the assumptions made)
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INFS 2001 Business Information Systems Week 5 /Slide 2 Definition of cycles The business processes that occur cyclically A cycle is a series of activities that aim at achieving a particular goal or solving a particular problem within the organisation (Considine p 22) Payment cycle – centres on organisation’s purchasing activities, acquiring goods to meet customers’ needs Conversion cycle – centres on the organisation’s ability to produce goods/services Revenue cycle- central to organisation’s ability to generate cash ie selling goods and turning these sales into cash receipts General ledger and reporting – maintaining the organisation’s accounting records HR management and payroll – acquiring the services of employees, managing employees, the payment of wages and dealing with leaving employees Focus here is on the Payment and Revenue cycles
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INFS 2001 Business Information Systems Week 5 /Slide 3 Payment & revenue cycles Customer Vendor Organisation Raw materials Payment Revenue Sales of goods/ services
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INFS 2001 Business Information Systems Week 5 /Slide 4 Why do we study the cycles? So we understand what organisations do & why What are the standard documents used (note : can be – increasingly are - electronic) What processes should always be performed Who normally performs them What master data should always be maintained What transaction data should always be kept What documents should always be used What controls should/can be in place
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INFS 2001 Business Information Systems Week 5 /Slide 5 Defining the payment cycle The payment cycle consists of all events that are involved in the purchase of goods and services and the payment for these goods and services Centres on organisation’s purchasing activities by acquiring goods to meet customers’ needs. Includes payment for these purchases. Important for an organisation’s operation and its liquidity
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INFS 2001 Business Information Systems Week 5 /Slide 6 The Australian Information Company The Australian Information Company buys and resells office equipment including furniture, electronic goods and stationery It is a mail order company (for this example we do not consider web based orders), shipping directly to its customers Its main customers are households and small businesses We use it as an example to illustrate the payment cycle this week, and the revenue cycle next week Based upon Considine, Razeed et al ., Chapter 4
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INFS 2001 Business Information Systems Week 5 /Slide 7 Australian Information Company The purchase cycle covers the purchase and payment of the goods stored in the warehouse. (we
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