A.I.S. Class 23: Outline I Group Work - Chapters 8 & 9 I A.I.S. - - PowerPoint PPT Presentation

November 22, 2005

• Dr. Peter R Gillett

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A.I.S. Class 23: Outline

I Group Work - Chapters 8 & 9 I A.I.S. and Financial Accounting I College Computing

November 22, 2005

• Dr. Peter R Gillett

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Group Work - Chapters 8 & 9

I Chapter 8:

Discussion Questions 1 - 5

I Chapter 9:

Discussion Questions 1, 2 & 5

November 22, 2005

• Dr. Peter R Gillett

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A.I.S. and Financial Accounting

I Imagine you are an accounting professor. A prospective

student who is considering majoring in accounting has asked you to explain the relationship between the material studied in A.I.S. and that studied in Intermediate

• Accounting. Explain how the material in each class

complements the other, why both are needed, and the nature of the challenges currently facing the accounting profession with regard to the provision of valuable business information. Be challenging!

November 22, 2005

• Dr. Peter R Gillett

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A.I.S. and Financial Accounting

I An Accounting View

Accounting methods were developed and and have been

working for over 500 years

Financial reporting is crucial to our capital markets and the

successful functioning of our economy

Financial reporting is controlled by legislation, regulation, and

professional (accounting) standards

The system of ledgers, accounts, debits and credits has been

continuously refined

All that really matters is the data needed to produce financial

statements

Information systems are simply an efficient tool for providing the

required reports

November 22, 2005

• Dr. Peter R Gillett

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A.I.S. and Financial Accounting

I A Systems View

Traditional accounting has focused only on certain events, on a

limited amount of data regarding them, and on summary information

Database Accounting Information Systems allow for capturing a

fuller set of events and a richer base of data regarding them

Detail is maintained and summaries can be materialized from it All that really matters is the actual events that have taken place Financial reports are just one possible output that can be

produced from the rich data set maintained

November 22, 2005

• Dr. Peter R Gillett

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College Computing

I Stage 1

Flowcharting existing system

I Stage 2

Steps 1 – 6: Logical data modeling

I Stage 3

Step 7: Logical process modeling: DFDs Step 8: Physical design: Data Repository Structure

I Stage 4

Internal Controls

I Stage 5

Step 9: Implement the design – tables and forms

November 22, 2005

• Dr. Peter R Gillett

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College Computing

I Stage 6

Step 9: Implement the design – queries & reports

N Some queries were already needed for Forms N Still some issues relating to Switchboards N Reports are our main topic for today, and are typically the

main weakness of projects

November 22, 2005

• Dr. Peter R Gillett

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College Computing

I ACCESS

Tools

N Database Utilities

² Compact and Repair Database ² Switchboard manager

N Startup

I PEACHTREE

Take a look at the reports available

November 22, 2005

• Dr. Peter R Gillett

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College Computing

I

What kind of reports do we need?

E.g. Sales N Sales Inquiries N Quotations N Sales Orders N Pro-forma Invoices N Remittance Advices N Invoices N Shipping Notices N Bills of Lading N Sales Revenue N Sales Tax N Accounts Receivable – N.B what about credit balances? N Aged Debts N Sales Analyses

²

Month

²

Type of customer

²

Type of computer – Processor

November 22, 2005

• Dr. Peter R Gillett

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College Computing

I What kind of reports do we need?

E.g. Materials Acquisition

N Requisitions N Purchase Orders N Receiving Notices N Returns N Payments N Checks N Purchases N Accounts Payable N Schedule of Payments Due N Purchases Analyses

² Month ² Product ² Vendor

N Approved Vendor List

November 22, 2005

• Dr. Peter R Gillett

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College Computing

I What kind of reports do we need?

Fixed Assets? Services? Production? Payroll? Finance? Cash Transfers?

November 22, 2005

• Dr. Peter R Gillett

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College Computing

I Financial Reporting

Simplifying Assumptions

N No manufacturing overhead N No variances N No ending WIP N No accruals other than as stated N No employer taxes N Payroll taxes withheld paid immediately N Sales taxes paid immediately N No cash discounts

November 22, 2005

• Dr. Peter R Gillett

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College Computing

I Financial Reporting

Chart of Accounts

N Cash N Accounts Receivable N Allowance for Doubtful Accounts N Inventory

² Raw Materials ² Finished Goods

N Prepaid Insurance N Property, Plant & Equipment N Accounts Payable N Interest Payable

November 22, 2005

• Dr. Peter R Gillett

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College Computing

I Financial Reporting

Chart of Accounts

N Salaries Payable N Long-Term Debt N Common Stock N Additional Paid-In Capital N Retained Earnings N Net Sales N Cost of Goods Sold N Selling, General and Administrative Expenses N Interest Expense

November 22, 2005

• Dr. Peter R Gillett

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College Computing

I Stage 6 Reporting

Some ACCESS features

N Update Queries N Append Queries

² P&S pp. 87 – 90

Materializing data and reports Storing historical views of data

N A practical compromise

November 22, 2005

• Dr. Peter R Gillett

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College Computing