University of Maryland Global Campus Accounting Information Systems Discussion

Description

Week 4 AIS Discussion1You have been asked by the CFO of your firm to look at ways to improve your key accounting operations (billing, A/R, and A/P). Recommend a best practice for one of these functions, explaining how your best practice will improve your firm’s operations as well as any potential challenges regarding implementing your best practice. To support your response, perform a search on the Internet or via UMGC’s online library to find an article that supports your recommendation (excluding the readings from this class). Be sure to include (a) the title of the article; (b) a link to it; and (c) a two-sentence summary of the article. After completing this conference activity, wait a few days to review your classmates’ responses and provide some feedback to at least one of your classmates.Week 4 AIS Discussion2Based upon the material covered from the readings and/or videos from Week 4, highlight the three most important concepts you learned this week and how each of these concepts will help you in appreciating the power of AIS. Be sure to include examples in your postings. NOTE: You should first identify the concepts that you learned and then describe how they increased your appreciation and understanding of AIS.After completing this conference activity, wait a few days to review your classmates’ responses and provide some feedback to at least one of your classmates.

4 attachmentsSlide 1 of 4attachment_1attachment_1attachment_2attachment_2attachment_3attachment_3attachment_4attachment_4

Unformatted Attachment Preview

Week 4 AIS Discussion1
You have been asked by the CFO of your firm to look at ways to improve your key accounting
operations (billing, A/R, and A/P). Recommend a best practice for one of these functions,
explaining how your best practice will improve your firm’s operations as well as any
potential challenges regarding implementing your best practice. To support your
response, perform a search on the Internet or via UMGC’s online library to find an article
that supports your recommendation (excluding the readings from this class). Be sure to
include (a) the title of the article; (b) a link to it; and (c) a two-sentence summary of the
article.
After completing this conference activity, wait a few days to review your classmates’
responses and provide some feedback to at least one of your classmates.
Week 4 AIS Discussion2
Based upon the material covered from the readings and/or videos from Week 4, highlight
the three most important concepts you learned this week and how each of these concepts
will help you in appreciating the power of AIS. Be sure to include examples in your
postings. NOTE: You should first identify the concepts that you learned and then describe
how they increased your appreciation and understanding of AIS.
After completing this conference activity, wait a few days to review your classmates’
responses and provide some feedback to at least one of your classmates.
Below are the required learning resources for this week.
**Other Accounting Information Systems Applications
See attachment “Other Accounting”
**Closing Entries & Conceptual Framework of Accounting
-In this lecture, Professor Carolyn Levine of Rutgers University discusses permanent and
temporary accounts.

**Business Process & Information Technology
Access these chapters to learn more about eBusiness and Business Intelligence.


Chapter 4: eBusiness
Chapter 5: Business Intelligence
http://www.opentextbooks.org.hk/ditabook/25212
Week 4 – Other Accounting Information
Systems Applications
Inventory
Some businesspeople, such as lawyers, accountants, and consultants,
provide services instead of selling products, so they do not have
inventory. Consequently, there is no inventory system to be concerned
with. Retailers, such as supermarkets and discount drug stores,
however, have large amounts of inventory. Manufacturers also have a
large amount of inventory, but their inventory systems are further
complicated by the fact that their inventory is in three different
categories:



raw materials
work-in-process
finished goods
Stores handles the raw materials inventory. See the section below on
production/cost accounting for a more detailed discussion of the workin-process and finished goods inventory.
A car manufacturer, such as General Motors, would have massive
amounts of raw material, such as metal, plastic, cloth, and even screws,
that must be purchased, stored, and used to manufacture cars. At any
time, even at the end of a period, there are numerous cars in various
stages of completion. This type of inventory makes up the category
work-in-process. In addition, there is a large inventory of finished goods
that have not been shipped to the dealers yet.
Now that we have discussed some of the general characteristics of an
inventory system, let’s move on to the individual components.
The source documents include a copy of the receiving report and the
purchase order, so there are interfaces with receiving and purchasing.
The major output of stores is a purchase requisition, although the
requesting department sometimes prepares this form. Copies of the
purchase requisition are sent to purchasing and accounts payable,
which are additional interfaces.
An inventory system frequently involves a fair amount of complex
processing. Some of the complexity relates more to production/cost
accounting and will be further described later in that section. However,
there is also a lot of processing involved in both costing inventory and
reordering. With the inexpensive and widespread use of personal
computers, perpetual inventory systems often are used with extensive
calculations. Many firms use complicated mathematical modeling
techniques, such as the economic order quantity, for determining when
and how much inventory to order.
Many of today’s organizations use Just-in-Time (JIT) purchasing and
production systems. Such systems are designed to reduce excess
inventory stocking and the loss of orders from stock out situations. JIT
will be discussed further in the production/cost accounting section of
this lecture.
Purchasing
The major source document related to the purchasing application is the
purchase requisition. This document, which begins the procurement
process, is a request for goods. Because an authorizing signature is
required, this document also provides control. From this document,
purchasing prepares a purchase order.
Purchase orders—formal agreements to buy goods—are the major
output of purchasing. Purchase orders are sent to vendors and also act
as an interface with stores, receiving, and accounts payable. A copy of a
purchase order is sent to stores (inventory) as an acknowledgement of
the order. A copy of the purchase order is sent to receiving to alert
them that soon they will be getting merchandise. (We will discuss this
topic in more detail below.) A copy of the purchase order is also sent to
accounts payable, because accounts payable has the responsibility of
paying the vendor.
It is important to store purchase order information so that it can be
retrieved in a number of different ways. This is true whether the
information is in the form of hard copy records stored in file cabinet
drawers (manual system) or electronic data stored on a computer
(automated system). First, there must be a way of extracting only the
open (still outstanding) purchase orders, so the firm can keep track of
its obligations. This type of information is an example of a suspense file.
There also should be a capability to quickly access purchase orders by
vendor name or by number. This type of access is necessary so that
questions can be answered quickly when a vendor calls or when
company personnel need information related to a specific vendor or
purchase order. The key word here is quickly. For an automated
application, you would want to have the capability of displaying all of a
vendor’s (and just that vendor’s) purchase orders on a screen while
talking to the vendor on the phone.
Without getting too technical, such access usually can be accomplished
using index files. Relational databases provide the ability to select
records from a file by a record field (the index), in this case, the vendor
number. For a manual application, one can have a separate folder for
each vendor containing their related purchase orders in numeric order.
Receiving
The source documents relating to receiving include purchase orders and
bills of lading. An important control is that the receiving copy of the
purchase order should not have quantities on it. Why? Because it then
forces the receiving department personnel to physically count the
merchandise. Shipments delivered by common carrier should include a
bill of lading, a document that lists the merchandise shipped by the
vendor in satisfaction of the purchase order.
Authorized personnel in the receiving department compare the
contents of each shipment to its corresponding purchase order to
ensure that all of the quantities are in agreement. This verification is
documented in the receiving report, which is the main output of this
department. One copy goes to stores with the merchandise, another
goes to purchasing, and one copy goes to accounts payable.
The interface with stores in the form of a receiving report copy takes
on even more importance because it informs stores personnel of
backorder situations and allows stores personnel to make other
arrangements as necessary. The receiving report sent to purchasing
informs that department of the goods’ arrival and when purchase
orders are closed. The copy of the receiving report sent to accounts
payable is another control over payment as described below in the
section on accounts payable.
Payroll
Payroll is one of an organization’s most complex accounting
applications. Hardly any two organizations prepare payroll in the same
manner. There are an incredible number of variations. Many companies
even outsource their payroll to other companies.
Most organizations pay their employees every other week, but weekly,
semi-monthly, and monthly are also viable alternatives. Even after
choosing how often to pay the employees, there also is a monthly cycle
for providing information to the general ledger. There is a quarterly
cycle for reporting to the IRS and a yearly cycle for closing (as with
other accounting applications) and also for printing and mailing W-2
forms to employees.
There also is an amazing array of possible deductions from an
employee’s pay. There can be deductions for taxes, insurance, pre-tax
expense accounts, investment/retirement, and many other items. Taxes
that require withholding include federal, state, and local income taxes
as well as FICA (social security). Insurance deductions include medical,
life, disability, dental, and vision. Pre-tax expense accounts could be
used for medical expenses or childcare. There are many possibilities for
investment/retirement-related deductions, including pensions, IRAs,
401Ks, 403Bs, Simples, stock purchase plans, U.S. Savings Bonds, and
employee stock ownership plans (ESOPs). Besides all of these
deductions, there also could be deductions for charity donations,
parking fees, union dues, employee loans, and court-ordered
garnishments.
In addition to all of these deductions, there are different types of
income as well. There are wages, bonuses, car allowances, moving
reimbursements, educational benefits, group term life insurance, and
personal use of a company car. Many of the deductions and categories
of income also have to be specially indicated on a W-2 form when it is
printed. So, as you can see, payroll can be a very complicated
application.
One source document of a payroll application is a W-4 form. The form
is filled out by employees and indicates the amount of exemptions they
elect for calculating tax withholding. Another source document is the
time card or time sheet.
The outputs of a payroll application consist of:







paychecks
quarterly information required by the IRS (941 forms)
payroll register
check register
W-2s
statistics
labor distribution reports (in some circumstances)
A check register would merely consist of a listing of employee names
and check amounts. Each line of a payroll register provides the details
of earnings and deductions for each employee.
The outputs are further complicated by the requirement to provide
payroll information to the federal government directly on magnetic
tape. Furthermore, many employees choose to have their checks directdeposited to their bank accounts, so there are some additional outputs.
Statistics, for example on absenteeism, average pay, vacation pay, and
so on, are useful to management. For many manufacturing and even
service firms, labor distribution could become a large part of payroll.
For these situations, it is not enough to keep track of labor by the
employee, but also by job, department, or contract. For example, a
computer consulting company working on more than one contract,
needs to keep records by contract for each employee’s hours. This
recordkeeping is necessary so that each contract can be properly billed
for the work performed. Many simple payroll applications (especially
standalone ones) do not have this capability.
Because theft is a major concern, there are a lot of important controls
in this area. The major risks include checks being issued to fictitious or
terminated employees. However, there are other risks related to
payroll. There could be fines and even prosecution, especially when
federal government withholdings are not paid. There is also the risk that
the company’s financial statements could be seriously flawed.
One of the major controls over payroll is the personnel department.
Personnel, instead of payroll, has the responsibility for maintaining
employee information, such as rate of pay and promotions. This is a
classic example of separation of duties. Another example of separation
of duties is the physical distribution of paychecks. The paychecks
should be distributed by someone outside of payroll. Another very
important control over payroll is internal auditing.
As a further control, many organizations use an imprest account for
payroll. They have a separate checking account just for payroll, and
after payroll is finished, the exact total of the all the employees’ net pay
is moved to this account. This ensures that if someone changes the
amount on a check, or a bogus check is cashed, the organization will
immediately find out that there is a problem. Unfortunately, the way
they find out is that paychecks bounce.
The major interfaces with other accounting applications include the
general ledger, personnel, cash disbursements, and cost accounting. All
of the payable totals related to the payroll application can be input to
the general ledger, including not only the withholdings for third parties,
such as union dues and insurance companies, but also the amounts
withheld for payroll-related taxes. The expense totals can be input
directly to the general ledger as well. As mentioned previously, there is
an interface with personnel, as this application maintains payroll data.
Often the payroll application uses the cash disbursements application
to produce the checks. For a manufacturing firm, payroll provides input
to the cost accounting application in the form of direct and indirect
labor, so there is also an interface here.
Production/Cost Accounting
The primary source documents of the production/cost accounting
application are sales orders and job time tickets. The sales orders
originate in the sales department. Production is scheduled for each
product based on the amount of sales and the inventory level.
Whether an automated or manual system is used, storing and printing
massive quantities of data is a requirement. Production control
originates the major output of this system, the production work order
which authorizes work on a product. A copy of each production work
order is kept on file in production control, and copies are sent to both
cost accounting and the producing department.
Before production is authorized by the production work order, we must
ensure that the proper resources are available. Each product should
have a corresponding bill of materials and routing sheet. The bill of
materials is a document that specifies all of the required material by
part number and their quantities for a product. Similarly, the routing
sheet (also called the operations list) specifies all of the labor and
machines required and the order used to manufacture a product.
The materials requisition form authorizes stores to release to the
production department the materials required by the bill of materials
corresponding to a production order. The job time ticket records the
labor used in production by specific jobs.
Most likely, the forms mentioned above would be stored as outputs of
this application. Additional outputs from this application include
department production schedules and cost accounting-related reports.
Such reports would include price and usage variances for material,
labor, and overhead.
Many companies use a Just-in-Time (JIT) production system. A JIT
system produces each component of a product just before it is needed.
For a JIT production system, many of the forms used by a traditional
application are not necessary; this would include the bill of materials or
the routing sheet. Instead, emphasis is placed on minimizing inventories
and machine setup times.
Generally, JIT purchasing is implemented as a complement to JIT
production. Goods are purchased so that delivery occurs just before the
items are needed in production. In order for JIT production to work,
strong relationships must be cultivated with suppliers.
There are many benefits of a JIT system. Stockpiling of inventory is less
necessary, so less storage space is required, there is less insurance
expense, and less risk of inventory becoming obsolete. Also there is less
paperwork and more manufacturing cost savings. However, if a JIT
system is not successful, it can be real disaster. A whole assembly can
be stopped because one part is lacking.
Like all the accounting applications, there is an interface with the
general ledger application. Cost accounting provides the cost of goods
sold, work-in-process, and finished goods figures. This application also
interfaces with the inventory/stores application through the materials
requisition form. An interface with payroll would provide the labor
costs for cost accounting.
The risks of adverse effects in production/cost accounting generally do
not involve theft. Rather, the concerns here are errors, waste,
inefficiencies, and management policy not being followed. The key
remedy is to avoid both production of unauthorized products and
incorrect computations. The source documents and outputs mentioned
previously include:





production work orders
material requisitions
bill of materials
routing sheet
time cards

production schedules
These documents ensure authorization of work. Good quality control is
also an important measure for avoiding waste and inefficiency.
Personnel
The personnel application can be very large and quite complicated with
many functions. Besides maintaining employee records, personnel’s
functions may include recruiting, benefits administration, government
reporting, training, and safety. As a further complication, many firms
provide their employees with the capability of changing their benefits
and withholdings by touch-tone and voice-activated systems.
Benefits administration can be a major responsibility of personnel. Most
companies provide a wide variety of insurance options including health,
disability, dental, and life. Most organizations also provide a wide range
of savings and post-retirement benefits, including employee stock
ownership programs (ESOPs), 401Ks, company stock purchase plans,
and pensions.
One interesting thing about personnel is that even if the application is
automated and employee data is stored on the computer, there is still a
need for physical files containing the source documents for each
employee, including their resumes, applications, and personnel actions,
reviews, commendation letters, disciplinary actions, and W-4s.
A lot of the data that would be stored for each employee is rather
obvious and includes name, address, home phone number, department,
supervisor, emergency contact, phone extension, and room number.
Additional information that may not be so obvious includes date of hire,
date of last review, date of last raise, raise percent, and salary. For
many firms, especially those that bid on contracts, it also is helpful to
have data relating to employees’ skills, experience, education,
publications, and awards.
The only interfaces with other accounting applications is providing
employee information for payroll, as mentioned previously under the
payroll application.
An important control for a computerized application is to have
password-controlled, authorized access to confidential employee
information. There also should be an audit trail for all access to this file.
Physical file access also should be controlled. This information should
be kept locked at all times. Requests to hire new employees should be
made by authorized personnel on a requisition form provided for that
purpose.
The output requirements for a personnel application are fairly minimal
compared to other accounting applications. Besides the need for
employee phone listings and mailing labels, there are some reports
required. The reports would include statistics on employee turnover,
years of service, and the like. A monthly list of those employees who
should be scheduled for review is beneficial.
Property
The property accounting application keeps track of an organization’s
fixed assets and investments. This generally is not a very complicated
application and is usually automated for calculating depreciation.
Records of cost, purchase date, and accumulated depreciation (for both
books and tax purposes) should be kept for each fixed asset. In
addition, the physical location and maintenance data also should be
kept. This information is essential for preparing financial statements,
capital budgeting, and insurance.
Similar records should be kept for investments. For each investment,
the cost, certificate number (for the few that are certificated), and date
of purchase should be kept. Information related to dividends or interest
received from the investments also should be kept. Investments must
be marked-to-market for accounting and disclosure purposes and often
are valued electronically through feeds from outside sources.
The only source document for fixed assets is the invoice received upon
purchase. Similarly, the source document for investments is the
brokerage slip relating to their purchase. The only interface is the
general ledger application for both the depreciation of fixed assets and
gain or loss calculations for fixed assets and investments.
Safeguarding fixed assets and investments is critical because they are
valuable and, in some cases, can be easily resold. Because of this,
controls are crucial. All acquisitions or sales of property must be
authorized and approved according to management policy. All of the
fixed assets (except buildings and land) should have a number stamped
right on them for ease of identification.
As mentioned previously, maintenance records should be kept and
updated for equipment. A distinction should be made between repairs
and improvements, because repairs are expensed and improvement
costs are entered on the books as assets (capitalized) and depreciated.
Rubric Assessment – ACCT 326 6980 Accounting Information Systems (2225) – UMGC Learning Management System
6/13/22, 11:15 PM
Participation Discussion Postings Rubric
Course: ACCT 326 6980 Accounting Information Systems (2225)
Initial Posting (60)
Student’s initial
posting addressed
the question
posed by the
professor.
The student’s
initial posting
includes an
external reference
that supplements
the posting.
Follow-up
Postings (30)
The student
completed the
required number
of follow-up
postings and
follow-up
postings were
quality postings
Communications
(10)
The student’s
postings show a
high-degree of
effective
communication.
Excellent
Very Good
Good
Satisfactory
Poor
Did not Complete
Criterion Scor
50 points
45 points
40 points
35 points
30 points
0 points
/ 50
Student’s initial
posting addressed
the question posed
AND shows a high
degree of learning
from the readings.
Student’s initial
posting addressed
the question
posed AND shows
a very good degree
of learning from
the readings.
Student’s initial
posting addressed
the question
posed AND shows
a good degree of
learning from the
readings.
Student’s initial
posting addressed
the question
posed AND shows
a satisfactory
degree of learning
from the readings.
Student’s did not
fully address the
question posed by
the professor
and/or lacks a
degree of learning
from the readings.
No posting
completed by the
student.
10 points
9 points
8 points
7 points
6 points
0 points
The student
provided more
than one quality
external reference
that supplements
the initial posting.
The student
provided a quality
external reference
that supplements
the initial posting.
The student
provided a good
external reference
that supplements
the initial posting.
The student
provided a
satisfactory
external reference
that supplements
the initial posting.
The student
provided an
external reference
but it does not
supplement the
initial posting.
No posting
completed by the
student.
Excellent
Very Good
Good
Satisfactory
Poor
Did Not Complete
Criterion Scor
30 points
27 points
24 points
21 points
18 points
0 points
/ 30
Student exceeded
the required
number of followup postings and
they were of high
quality
Student provided
the required
number of followup postings (or
more) and they
were of good
quality
Student provided
the required
number of followup postings, but
few quality issues
(e.g. postings too
short to provide
content) were
present
Student provided
the required
number of followup postings, but
more than few
quality issues (e.g.
postings too short
to provide
content) were
present
Student provided
one follow-up
posting.
No posting
completed by the
student.
Excellent
Very Good
Good
Satisfactory
Poor
Did Not Complete
Criterion Scor
10 points
9 points
8 points
7 points
6 points
0 points
/ 10
The student’s
postings show a
high-level of
effective
communication.
The student’s
postings show a
very good-level of
effective
communication.
The student’s
postings show a
good-level of
effective
communication.
The student’s
postings show a
satisfactory-level
of effective
communication.
The student’s
postings show a
poor-level of
effective
communication.
No posting
completed by the
student.
/ 10
Total
https://learn.umgc.edu/d2l/lms/competencies/rubric/rubrics_assessm…5&d2l_body_type=5&closeButton=1&showRubricHeadings=0&viewTypeId=3
Page 1 of 2
Rubric Assessment – ACCT 326 6980 Accounting Information Systems (2225) – UMGC Learning Management System
6/13/22, 11:15 PM
Overall Score
Excellent
Very Good
Good
Satisfactory
Poor
0 Points
100 points minimum
90 points minimum
80 points minimum
70 points minimum
60 points minimum
0 points minimum
https://learn.umgc.edu/d2l/lms/competencies/rubric/rubrics_assess…5&d2l_body_type=5&closeButton=1&showRubricHeadings=0&viewTypeId=3
Page 2 of 2

Purchase answer to see full
attachment

Explanation & Answer:
1 Page

User generated content is uploaded by users for the purposes of learning and should be used following Studypool’s honor code & terms of service.

Reviews, comments, and love from our customers and community:

This page is having a slideshow that uses Javascript. Your browser either doesn't support Javascript or you have it turned off. To see this page as it is meant to appear please use a Javascript enabled browser.

Peter M.
Peter M.
So far so good! It's safe and legit. My paper was finished on time...very excited!
Sean O.N.
Sean O.N.
Experience was easy, prompt and timely. Awesome first experience with a site like this. Worked out well.Thank you.
Angela M.J.
Angela M.J.
Good easy. I like the bidding because you can choose the writer and read reviews from other students
Lee Y.
Lee Y.
My writer had to change some ideas that she misunderstood. She was really nice and kind.
Kelvin J.
Kelvin J.
I have used other writing websites and this by far as been way better thus far! =)
Antony B.
Antony B.
I received an, "A". Definitely will reach out to her again and I highly recommend her. Thank you very much.
Khadija P.
Khadija P.
I have been searching for a custom book report help services for a while, and finally, I found the best of the best.
Regina Smith
Regina Smith
So amazed at how quickly they did my work!! very happy♥.