Business Process

→ Acquiring capital

Businesses engage in a → Buying buildings and equipment

variety of processes, → Hiring and training employees

including: → Purchasing inventory

→ Doing advertising and marketing
→ Selling goods or services
→ Collecting payment from customers
→ Paying employees
→ Paying taxes

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→ Paying vendors
 Types of organization information needed for
decisions:

Financial Non Financial

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 AIS Interaction

Internal External
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 Activities carried out
Business by a business to obtain,
Transaction
Cycles produce, and sell goods
and services
 Transactions:
■ Agreement between two entities to
exchange goods or services.

■ Can be measured in economic aspect by

organization.

■ Example: selling goods to customers,

purchasing inventories from vendors, pay
employee salaries
 Process that begins with recording data
of a transaction and ending with the
Transaction output of information (financial
Cycles: statements).
 Major Transaction/Business
Cycles:

Revenue Production Financing

Cycles Cycles Cycles

Expenditur HR/Payroll
e Cycles Cycles
 (1) Revenue Cycle (Siklus Pendapatan)

■ Interaction with customers

■ Selling goods/services and obtain cash.

Give goods Get cash

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 (2) Expenditure Cycle (Siklus Pengeluaran)

■ Interaction with vendors

■ Selling goods/services and pay cash.

Give cash Get goods

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 (3) Production/conversion Cycle (Siklus Produksi)

■ Changing raw materials and labor into goods

Give raw
materials and Get finished
labor goods

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 (4) Human Resource/payroll Cycle (Siklus
SDM/penggajian)

■ Interaction with employee

■ Recruitment, training, payroll, evaluating,

promoting, work termination.

Give cash Get labor

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 (5) Financing Cycle (Siklus
Pendanaan/pembiayaan)

■ Interaction investors and creditors

■ Obtain capital, return on capital.

Give cash Get cash

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