ACCOUNTING INFORMATION SYSTEM Number: 3 Revenue cycle The revenue cycle for the Boat retail company entails the process of order processing, billing, and shipping. The customer makes a request in form of an inquiry to the sales department. The sales clerk then responds with the confirmation of availability of products. The client then makes a purchase for the specific items. The sales clerk processes the order and issues an invoice to the client. The client makes payment based on the invoice and the items are shipped to him. The accounts clerk does the billing and issues the client with a bill of the items.
He also processes the payments and issues a receipt. The receipt of payment is used by the sales clerk to prepare the delivery statement that is used to ship the items purchased by the customer. These processes and the various actors are depicted in the following diagrams figure 1) context diagram and figure 2) Level 0 data flow diagram. Additionally the flow of the documents through the revenue cycle is illustrated in the document flowchart in figure 3.
Figure 1:Context diagram Figure 2: Level 0 Data Flow Diagram Document Flowchart. As described above, the customer makes an inquiry to the sales department. The sales person then responds to the inquiry. This allows the customer to make a purchase order for the items that they need. The sales person proceses the order and issues a an invoice; the invoice is forwarded to the customer by the billing department. After that the customer makes payment for the products and the products are shipped to them together with the payment receipt and the delivery note.
The documents that are created in this cycle include; request statement, invoice, delivery note and the payment receipt. The diagram below depicts this flow. 4.0 Database and file structure The database created has four tables including Customer, purchase Orders, Invoices and Inventory. These tables are used to store the records that are needed for the revenue cycle to be complete. The screenshots for the database that is designed in Microsoft Access are shown below. Customer table Customer Id is the primary key that uniquely identifies the customer.
The other fields include name, address; contact number, email address and the credit card number; Purchase order; Details entered by the sales person when the customer makes a purchase order. The Order_Id is the primary key for this table; Inventory table Shows the items that are in the inventory. The Item_code acts as the primary key uniquely identifying the products in the inventory. Invoice table Stores all the invoices of orders made by the customer; Invoice No is the primary key; 5.0 Screens and Reports Screens and reports are necessary since they provide an interface through which the users of the database can easily input and view records and data stored in the database.
the use of screens and reports enhances efficiency and accuracy in the access to the database, data entry and output of information from the database. Additionally, the use of reports provides summarized data that is easy to interpret hence necessary for provision of summarised data for decision making. The essential screens and reports are shown below: Customer entry screen: Purchase order entry screen Customer Invoice Reports Inventory report Customer purchase order Report Invoice reports Reference Hall, James. 2011. Information Technology Auditing.
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