Riordan Manufacturing has identified a need to integrate their accounting information systems. For the revenue cycle, the hardware and software selection requirements are described in the following paper. The process includes answering important questions regarding internal controls, the persons who require access to the different types of information, and what types of reports should be generated. Finally, the decision on where the accounting information should be stored will be discussed. Determining the hardware and software needed and documenting the controls of the system is an important first step in integrating the entire manufacturing company and producing reliable and accurate financial statements.
Information Access The people who need to access information when using the Revenue cycle include several different departments. The place in which this cycle starts is within the sales department. Here is where the order is placed, and at the same time the customer’s credit is checked. The information then flows to the billing department, which then sends it on to the warehouse. Once the order is picked, the shipping department will finalize the order and send the package out. Once the packaged is shipped the accounts receivable department will then wait for payment to be obtained. During this process the inventory control department will ensure that the product payment has been adjusted correctly. When the package arrives to the customer and payment has been made, the final step is within the general ledger department. At every step along the way, each department needs to be able to access the information related either to the product being ordered and/or to the customer that ordered it. The revenue cycle is complete once shipment is complete, payment is made, and the general ledger department closes the order out. The revenue cycle technically begins on the day the potential customer is met and part of this reason is because of the credit checks that will be done in order to guarantee payments will be made for merchandise. Controls When considering the controls that need to be in place for an information system, it is good practice to start at the top. Start by thinking about what control and access you would need the upper most level of management to have. A company would like the CEO to have access to run any report in the accounting information system for their executive reporting functions. However, the CEO should not have access to change or alter the data in the system. The next level of the controls should encompass abilities required by the middle managers. This level of personnel should have access to see the entries done by the clerks and view reports that will be used by upper management for financial reporting. The middle managers should have limited ability to alter or correct entries, instead delegating these activities to the clerks for corrections. The clerks themselves should have access to any and all entries in the accounting information system. The clerks should only have access to responsibilities for their function. Meaning that accounts payable should only have access to payables invoice entries and payments to vendors. Accounts receivable should …show more content…
The types of reports that need to be generated are consumer list (information in regards to consumer profile, such as name, address, and contact information), customer request of product or service, agreement of sale or service, financial records (accounts payable and receivable, order entry, procurement, sales and purchasing history, invoicing and shipping, payroll), and list or record of products and its …show more content…
In regards to the Riordan manufacturing system, we discussed the different types of employees who need to access the information, the controls that need to be in place, the types of reports that can be generated, and the information that should be available through the corporate web system. In addition to this we explored the revenue cycle and how it may affect the information each department needs. Different types of access are given to different employees. It is done this way so they are controlled and every employee does not have access to important information that is not necessary to their role. Finally we went over the information that is available as public knowledge and company knowledge, how they are determined, and how they are
Information Access The people who need to access information when using the Revenue cycle include several different departments. The place in which this cycle starts is within the sales department. Here is where the order is placed, and at the same time the customer’s credit is checked. The information then flows to the billing department, which then sends it on to the warehouse. Once the order is picked, the shipping department will finalize the order and send the package out. Once the packaged is shipped the accounts receivable department will then wait for payment to be obtained. During this process the inventory control department will ensure that the product payment has been adjusted correctly. When the package arrives to the customer and payment has been made, the final step is within the general ledger department. At every step along the way, each department needs to be able to access the information related either to the product being ordered and/or to the customer that ordered it. The revenue cycle is complete once shipment is complete, payment is made, and the general ledger department closes the order out. The revenue cycle technically begins on the day the potential customer is met and part of this reason is because of the credit checks that will be done in order to guarantee payments will be made for merchandise. Controls When considering the controls that need to be in place for an information system, it is good practice to start at the top. Start by thinking about what control and access you would need the upper most level of management to have. A company would like the CEO to have access to run any report in the accounting information system for their executive reporting functions. However, the CEO should not have access to change or alter the data in the system. The next level of the controls should encompass abilities required by the middle managers. This level of personnel should have access to see the entries done by the clerks and view reports that will be used by upper management for financial reporting. The middle managers should have limited ability to alter or correct entries, instead delegating these activities to the clerks for corrections. The clerks themselves should have access to any and all entries in the accounting information system. The clerks should only have access to responsibilities for their function. Meaning that accounts payable should only have access to payables invoice entries and payments to vendors. Accounts receivable should …show more content…
The types of reports that need to be generated are consumer list (information in regards to consumer profile, such as name, address, and contact information), customer request of product or service, agreement of sale or service, financial records (accounts payable and receivable, order entry, procurement, sales and purchasing history, invoicing and shipping, payroll), and list or record of products and its …show more content…
In regards to the Riordan manufacturing system, we discussed the different types of employees who need to access the information, the controls that need to be in place, the types of reports that can be generated, and the information that should be available through the corporate web system. In addition to this we explored the revenue cycle and how it may affect the information each department needs. Different types of access are given to different employees. It is done this way so they are controlled and every employee does not have access to important information that is not necessary to their role. Finally we went over the information that is available as public knowledge and company knowledge, how they are determined, and how they are