1. 1 Chapter 1 Introduction to Accounting Information Systems Chapter 11 The Billing/Accounts Receivable/Cash Receipts (B/AR/CR) Process

2. Learning Objectives Understand relationship between B/AR/CR and its environment Understand relationship between B/AR/CR and management problem solving Be familiar with technology re B/AR/CR Understand logical & physical characteristics Understand ERP impact on B/AR/CR Know some operation system and information system control goals and plans

3. 3 Horizontal Information Flows Shipping informs A/R (billing) of shipment A/R send invoice to customer A/R informs GL that invoice sent to customer Customer may default, sending message to credit Credit changes CR limit; informs sales dept. to terminate sales to customer Cont..

4. 4 Horizontal Information Flows (2) A/R informs GL of write-off Customer makes payment on account Cashier informs A/R of payment Cashier informs GL of payment

5. 5 B/AR/CR Context Diagram

6. 6 B/AR/CR Level 0 DFD

7. 7 Data Descriptions in B/AR/CR A/R master data –balance only - current balance, past due, fin. chgs. –balance-forward - above fields + details of current charges; aging of past-due balances –open-item - details of open invoices (invoices not paid); customer can pay by invoice. Sales event data –one or more invoice records (details contained in invoice data) Cont...

8. 8 Data Descriptions in B/AR/CR (2) Invoice data - copies of invoice documents A/R adjustments data –write-offs, estimated doubtful a/c, sales returns, etc. –Journal voucher #, trans. code, authorization Cash receipts data –details of customer payments Remittance advice data - copies of RAs

9. 9 E-R diagram for B/AR/CR

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17. Learning Objectives Understand relationship between B/AR/CR and its environment Understand relationship between B/AR/CR and management problem solving Be familiar with technology re B/AR/CR Understand logical & physical characteristics Understand ERP impact on B/AR/CR Know some operation system and information system control goals and plans