2004 prentice hall business publishing, accounting information systems, 9/e, by bodnar/hopwood...
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2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood
SISTEM INFORMASI SISTEM INFORMASI AKUNTANSIAKUNTANSI
ACCOUNT ACCOUNT RECEIVABLES RECEIVABLES
BUSINESS PROCESSBUSINESS PROCESSAND CASH SALESAND CASH SALES
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood
Learning Objective 1Learning Objective 1
Describe the customer accountDescribe the customer account
management business process.management business process.
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood
Customer Account Customer Account Management Business ProcessManagement Business Process
The The customer account managementcustomer account managementbusiness processbusiness process includes accounts includes accounts
receivable processing throughreceivable processing throughthe collection of customerthe collection of customer
payments on account.payments on account.
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood
Customer Account Customer Account Management Business ProcessManagement Business Process
Accounts receivableAccounts receivable also alsomaintains customer credit andmaintains customer credit andpayment history information.payment history information.
This information is essential inThis information is essential inthe customer order managementthe customer order management
business process.business process.
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood
Customer Account Customer Account Management Business ProcessManagement Business Process
A subsidiary ledger of individualA subsidiary ledger of individualaccounts is maintained, with aaccounts is maintained, with a
control account in the general ledger.control account in the general ledger.
Remittance advices are routedRemittance advices are routedfrom the cash receipts functions.from the cash receipts functions.
Credit memos and other invoice adjustmentsCredit memos and other invoice adjustmentsare routed from the billing department.are routed from the billing department.
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood
Customer Account Customer Account Management Business ProcessManagement Business Process
There are two basic approaches toThere are two basic approaches toan accounts receivable application.an accounts receivable application.
What are these approaches?What are these approaches?
1. Open-item processing1. Open-item processing
2. Balance-forward processing2. Balance-forward processing
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood
Learning Objective 2Learning Objective 2
Illustrate controls that apply toIllustrate controls that apply to
accounts receivable processing.accounts receivable processing.
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood
Controls in the AccountsControls in the AccountsReceivable Business ProcessReceivable Business Process
RemittanceRemittanceadvicesadvices
RemittanceRemittanceadvicesadvices
ReturnedReturnedgoodsgoods
ControlControltotaltotal
ControlControltotaltotal
PostPost
AccountsAccountsReceivableReceivable
CashCashReceiptsReceiptsCustomerCustomer ReceivingReceiving
GeneralGeneralLedgerLedger
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood
Controls in the AccountsControls in the AccountsReceivable Business ProcessReceivable Business Process
AccountsAccountsReceivableReceivableBillingBillingReceivingReceiving CreditCredit
GeneralGeneralLedgerLedger
JournalJournalvouchervoucher
JournalJournalvouchervoucher
InvoicesInvoices ControlControltotalstotals
ControlControltotalstotals
Sales returnSales returnmemomemo
Sales returnSales returnmemomemo
Sales returnSales returnmemomemo
IndependentIndependentcountcount
ApproveApprovesales returnsales return
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood
Controls in the AccountsControls in the AccountsReceivable Business ProcessReceivable Business Process
AccountsAccountsReceivableReceivableBillingBillingCreditCreditCustomerCustomer
StatementsStatements StatementsStatements
Aged trialAged trialbalancebalance
Aged trialAged trialbalancebalance
PeriodicPeriodicprocessingprocessing
CreditCreditmemomemo
CreditCreditmemomemo
PostPost
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood
Write-Off Accounts ReceivableWrite-Off Accounts Receivable
The basic feature in a write-off processThe basic feature in a write-off processis an analysis of past-due accounts.is an analysis of past-due accounts.
This is usually done with anThis is usually done with anaged trial balance report.aged trial balance report.
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood
Write-Off Accounts ReceivableWrite-Off Accounts Receivable
GeneralGeneralLedgerLedger
AccountsAccountsReceivableReceivableTreasurerTreasurer CreditCredit
InternalInternalAuditAudit
Write-offWrite-offmemomemo 11
2233
Write-offWrite-offmemomemo
33
FileFileWorthlessWorthless
account listaccount listWorthlessWorthless
account listaccount list
Aged trialAged trialbalancebalance
Aged trialAged trialbalancebalance
ControlControltotal oftotal of
write-offswrite-offs
ControlControltotal oftotal of
write-offswrite-offs
Confirmation of write-off sent to customerConfirmation of write-off sent to customer
Write-offWrite-offmemomemo
11
Write-offWrite-offmemomemo
11
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood
Cash-Received-On-Account Cash-Received-On-Account Business ProcessBusiness Process
A A cash-received-on-account businesscash-received-on-account businessprocessprocess is used when there is an is used when there is an
existing customer account balance.existing customer account balance.
Cash received on account typicallyCash received on account typicallycomes into a business through thecomes into a business through the
mail or is paid in person to amail or is paid in person to acentral cashier or a cash window.central cashier or a cash window.
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood
Cash-Received-On-Account Cash-Received-On-Account Business ProcessBusiness Process
Customer payments shouldCustomer payments shouldalways be acknowledged.always be acknowledged.
The recorded receivable that existsThe recorded receivable that existsprior to the payment enhancesprior to the payment enhances
control over payments received.control over payments received.
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood
Cash-Received-On-Account Cash-Received-On-Account Business ProcessBusiness Process
The major control feature of The major control feature of cash-received-cash-received-on-account business processon-account business process is the is the
separation of the following functions:separation of the following functions:
MailroomMailroom Cash receiptsCash receipts
Accounts receivableAccounts receivable General ledgerGeneral ledger
BankBank Internal auditInternal audit
CASH-RECEIVED-ON-ACCOUNT BUSINESS PROCESSCASH-RECEIVED-ON-ACCOUNT BUSINESS PROCESS
MAILROOMMAILROOM
CUSTOMERS REMITTANCESON ACCOUNT
OPENMAIL
CHECKSREMITTANCEADVICES
ENDORSE& TOTAL
PREP.REMITT.
LIST
Separate Checks &Remittance Advices
A B
CASH-RECEIVED-ON-ACCOUNT BUSINESS PROCESSCASH-RECEIVED-ON-ACCOUNT BUSINESS PROCESS
MAILROOMMAILROOM
CHECKS
FORWARDTO CASHRECEIPTS
FORWARDTO A/R
C D
A B
REMITTANCEADVICES REMITTANCE
LISTCONTROL
TOTAL
APPROVEREMITT
LIST
CONTROLTOTAL
REMITTANCEADVICES
File by Date
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood
ACCOUNT RECEIVABLEACCOUNT RECEIVABLE
The remittance advice are posted to the accounts
receivable ledger. The postings to the ledger are totaled.
The control total is balanced to the remittance list. The
agreement of these amounts is approved. The
remittance advices are sorted and filed by customer. The
remittance list and a copy of the control total of posting is
filed by date. A copy of the control total is forwarded to
the general ledger.
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood
GENERAL LEDGERGENERAL LEDGER
The journal voucher from cash receipts and the control
total received from accounts receivable are compared. The
amounts are then posted to the general ledger. The source
of posting the general ledger is the cashier’s journal
voucher notification of the amount of the deposit of the
payments received. This amount must reconcile with the
total of items posted to the accounts receivable ledger. The
journal voucher and the control total are file by date.
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood
EXERCISEEXERCISE
BANK:
The bank accepts the deposit and validates a copy of the deposit
slip. The validated copy of the deposit slip is returned to the internal
audit and filed by date.
INTERNAL AUDIT:
Internal audit receives the periodic bank statement. An
independent bank reconciliation is an important control in a cash-
received-on-account business process.
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood
Lock-Box Collection SystemsLock-Box Collection Systems
It is the time between the signing of theIt is the time between the signing of thepayment check by the customer and thepayment check by the customer and themoment the firm has use of the funds.moment the firm has use of the funds.
A lock-box system reduces the float byA lock-box system reduces the float byhaving the checks deposited to a firm’shaving the checks deposited to a firm’saccount before the firm processes them.account before the firm processes them.
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood
Cash Sales Business ProcessCash Sales Business Process
The significant difference between aThe significant difference between a cash cashsales business processsales business process and a and a cash-received-cash-received-
on-account business processon-account business process is that there is that thereis no previous asset record in a cashis no previous asset record in a cash
sales business process.sales business process.
Cash sales are recorded in a cash register orCash sales are recorded in a cash register orother secure device to provide documentation.other secure device to provide documentation.
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood
Cash Sales Business ProcessCash Sales Business Process
It is a general term used to describeIt is a general term used to describeprocedures in which the customerprocedures in which the customer
acts as a control over the initialacts as a control over the initialdocumentation of a transaction.documentation of a transaction.
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood
Cash Sales Business ProcessCash Sales Business Process
What are some of these procedures?What are some of these procedures?
Pricing in such a way thatPricing in such a way thatthe customer expects changethe customer expects change
Awarding a customer freeAwarding a customer freeitems if the receipt has a markitems if the receipt has a mark