Professional Documents
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AIS CH2 (Business Process and AIS)
AIS CH2 (Business Process and AIS)
AIS CH2 (Business Process and AIS)
External
AIS Parties
External
Internal
Parties
AIS Parties
Internal External
Parties AIS Parties
Give Get
Goods Cash
BUSINESS CYCLES
Give Get
Cash Goods and service
BUSINESS CYCLES
Give Get
Cash Labor
BUSINESS CYCLES
Give Get
Cash cash
Business process and AIS
• Many business activities are paired in give-get
exchanges
• The basic exchanges can be grouped into five
major transaction cycles.
– Revenue cycle
– Expenditure cycle
– Production cycle
– Human resources/payroll cycle
– Financing cycle
BUSINESS CYCLES & AIS
• Thousands of transactions can occur within
any of these cycles.
• But there are relatively few types of
transactions in a cycle.
Da
ta
The revenue cycle
– Gets finished goods
Fu
General Ledger
n
and Reporting
cycle
System
– Provides funds to the
financing cycle
– Provides data to the
General Ledger and
Human Res./
Reporting System
Financing
Payroll Cycle Cycle
Raw
Mats.
Revenue Expenditure Production
Cycle Cycle Cycle
Data
s
u nd
F
General Ledger
and Reporting The expenditure cycle
System
– Gets funds from
the financing cycle
– Provides raw
materials to the
production cycle
Human Res./ Financing
Payroll Cycle
– Provides data to
Cycle the General Ledger
and Reporting
System
Finished Goods
Raw
Mats.
Revenue Expenditure Production
Cycle Cycle Cycle
ta
Da
General Ledger
and Reporting The production cycle:
or
System
b
General Ledger
and Reporting The HR/payroll cycle:
or
System
b
La
Fu
dsn
Fu
General Ledger
nds
Data
the expenditure
and HR/payroll
Human Res./ Funds Financing cycles
Payroll Cycle Cycle – Provides data to
the General Ledger
and Reporting
System
Revenue Expenditure Production
Cycle Cycle Cycle
Data
a
Dat
Da
ta
Information for
General Ledger
Internal & External Users
and Reporting
System
The General Ledger and
ta Reporting System:
Da
Data
– Gets data from all of
the cycles
Human Res./ Financing – Provides
Payroll Cycle Cycle information for
internal and
external users
DATA PROCESSING CYCLE
• Accountants play an important role in data
processing. They answer questions such as:
– What data should be entered and stored?
– Who should be able to access the data?
– How should the data be organized, updated, stored,
accessed, and retrieved?
– How can scheduled and unanticipated information
needs be met.
• To answer these questions, they must understand data
processing concepts.
DATA PROCESSING CYCLE
• An important function of the AIS is to efficiently
and effectively process the data about a
company’s transactions.
– In manual systems, data is entered into paper
journals and ledgers.
– In computer-based systems, to convert data to
information a series of operations performed
on data is referred to as the data processing
cycle.
DATA PROCESSING CYCLE
• The data processing cycle consists of four
steps:
– Data input
– Data storage
– Data processing or process data to
information
– Information output
THE DATA PROCESSING CYCLE
Student Class
File File
Instructor
File
DATA PROCESSING CYCLE