CH2 BusProcess

CH2 BusProcess - BUSINESS PROCESSES Click to edit Master...

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Click to edit Master subtitle style 11 BUSINESS PROCESSES
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22 Information Needs and Business Processes Businesses engage in a variety of activities Each activity requires different types of decisions Each activity requires different types of information
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33 Information Needs and Business Processes Types of information needed for decisions Some is financial Some is non-financial Some is from internal sources Some is from external sources
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44 Accounting Information Systems Must interact with external parties Customers, Vendors, Creditors, and Governmental Agencies Must interact with internal parties Management, and Employees
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55 Transaction Is an agreement between two (2) entities to exchange goods or services, or any other event that can be measured in economic terms Generally in business, the majority of transactions are “Give-Get” exchanges of goods or services
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66 Transaction Processing in an Collect data about business activities, Provide information for decision- making as output (reporting) Maintain adequate internal control to ensure accurate input, processing, storage, & output, and to safeguard organizational assets
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77 Business Cycles Basic exchanges can be grouped into five major transaction cycles: Revenue cycle Expenditure cycle Production cycle Human resources/payroll cycle Financing cycle
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88 Every transaction cycle: Relates to other cycles. Interfaces with the general ledger and reporting system, which generates information for management and external parties. Financial Statements Performance Reports BUSINESS CYCLES
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99 Business Cycles are often “Give- Get” In the Revenue cycle, the basic transaction is “give-get” Give goods Get cash In the Expenditure cycle, the basic transaction is also “give-get” Give cash Get goods
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Transactions in the Revenue Cycle Handle customer inquiries Take customer orders Approve credit sales Check inventory availability Initiate back orders Pick and pack orders Ship goods Bill customers Update sales and Accounts Receivable for sales Receive customer payments Update Accounts Receivable for collections Handle sales returns, discounts, and bad debts Prepare management reports Send info to other cycles 1010
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Transactions in the Expenditure Cycle Requisition goods and services Process purchase orders to Vendors Receive goods and services Store goods Receive Vendor invoices Update accounts payable for purchase Approve invoices for payment Pay vendors Update accounts payable for payment Handle purchase returns, discounts, and allowances Prepare management reports Send info to other cycles 1111
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Transactions in the HR and Payroll Cycle MAJOR GIVE-GET : Give cash; get labor OTHER TRANSACTIONS : Recruit, hire and train employees
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This note was uploaded on 07/30/2011 for the course ACCT 302 taught by Professor Brown during the Spring '11 term at Maryland.

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CH2 BusProcess - BUSINESS PROCESSES Click to edit Master...

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