Chapter 13 - Acquisition/Payment process. After studying this chapter you will be able to: Explain its role and purpose; list and discuss, in order, the steps in the process; explain how the generic structure of most AIS applies to the process; process common transactions; design & critique internal controls based on common risk exposures; develop & interpret process-related systems documentation. | Chapter 13 Acquisition/Payment Process Outline Expected outcomes Process role & purpose Process steps AIS components Systems documentation Expected outcomes With respect to the acquisition / payment process: Explain its role and purpose. List and discuss, in order, the steps in the process. Explain how the generic structure of most AIS applies to the process. Process common transactions. Design & critique internal controls based on common risk exposures. Develop & interpret process-related systems documentation. Process role and purpose Purchase inventory & other assets On account For cash Pay for purchases Value chain relationships Procurement Inbound logistics Process steps Request goods & services based on monitored need. Forms: purchase requisition Agents: department managers, purchasing dept. Authorize a purchase. Forms: purchase order Agents: purchasing department Process steps Purchase goods & services. Forms: purchase order Agents: purchasing department, vendor Receive goods & services. Forms: purchase order (blind copy), receiving report Agents: receiving clerks, common carrier Process steps Disburse cash. Forms: purchase order, receiving report, check Agents: cash payments clerk, vendor Process purchase returns as necessary. Process steps Lecture break 13-1 Which steps in the acquisition / payment process could be made more efficient / effective with information technology? How is human judgment involved in the acquisition / payment process? AIS components Inputs & outputs Forms listed on previous slides Processes Process steps Accounting cycle Common transactions Purchase of inventory on account Purchase of inventory for cash Cash payments for purchases on account Inventory returns AIS components Storage Master files Employee Inventory Vendor Transaction files Purchases Cash payments Junction files Purchases / inventory AIS components Internal controls Purchase authorizations Conflict of interest policy Supplier qualifications Strategic . | Chapter 13 Acquisition/Payment Process Outline Expected outcomes Process role & purpose Process steps AIS components Systems documentation Expected outcomes With respect to the acquisition / payment process: Explain its role and purpose. List and discuss, in order, the steps in the process. Explain how the generic structure of most AIS applies to the process. Process common transactions. Design & critique internal controls based on common risk exposures. Develop & interpret process-related systems documentation. Process role and purpose Purchase inventory & other assets On account For cash Pay for purchases Value chain relationships Procurement Inbound logistics Process steps Request goods & services based on monitored need. Forms: purchase requisition Agents: department managers, purchasing dept. Authorize a purchase. Forms: purchase order Agents: purchasing department Process steps Purchase goods & services. Forms: purchase order Agents: purchasing department, vendor .
