Operational Accounting and Financial Information Systems

Integrated Financial Accounting System and its Major Components Order Processing Accounts Receivable Fixed Assets Customer Management Inventory General Ledger Payroll Totals Purchasing Accounts Payable Creditors

INPUT OUTPUT ACCOUNT RECEIVABLE SYSTEMS Cust. Statements Payments Schedule of Accounts Receivable Sales Orders ACCOUNTS RECEIVABLE Adjustments (Returns, Credit Memos) Aging Report

INPUT OUTPUT ACCOUNT PAYABLE SYSTEMS Cheques to Creditors Payments Schedule of Accounts Payable Purchase Orders ACCOUNTS PAYABLE Adjustments (Returns, Credit Memos) List of Bills due

Inventory Control System It provides input to the General Ledger System and receives input from the purchase order and the sales order systems. The basic purpose of the system is to keep track of inventory levels and inventory costs. The system maintains information about each stock item, such as stock numbers and stock descriptions, receipts issue of stocks stocks damage and stock balances.

Purchase Order Processing System The Purchase Order Processing System processes purchase orders and tracks which purchase orders have been filled, which stock items ordered are on backorder, which stock items have been damaged or do not meet the specifications of the original order, and which orders are still on order and when those orders are expected to arrive. The Purchase order system provides information to the accounts payable and inventory systems. The system produces a variety of reports, including a list of all stock on backorder and an open-order report that lists orders not yet received and their expected arrival dates.

Payroll System The Payroll System processes wage and salary such as payments to employees; deductions from employee paychecks; and payments to federal, state, and other taxing agencies for taxes owned. The payroll System produces such reports as the weekly payroll summary report, overtime reports, forms for taxing agencies such as wage and tax statements (Form W-2), payroll checks, and checks for payroll taxes owed to taxing agencies.