Joe Gelinas, Jr. For PricewaterhouseCoopers, Dr. Gelinas developed and taught training programs for business processes, internal control, and IT audit. Gelinas has published articles on inter-organizational collaboration and coordination infrastructures, accounting information systems, use of technology in business education, technical communications, and information privacy. In , Dr.
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Often times a stub is attached to the customer statement. ANS: turnaround Below is the narrative of the Perform billing portion i. This is the flow Sales order notification. When triggered by the data flow, Shippings billing notification i. If discrepancies are noted, the shipping notice is rejected, i. Rejected notices are later processed through a separate exception routine.
If the data flows match, process 1. Process 1. Creates the invoice and sends it to the customer. Updates the accounts receivable master data. Adds an invoice to the sales event data i. Notifies the general ledger process that a sale has occurred GL invoice update. Below is the narrative of the Manage customer accounts portion i. Narrative Description Processes 2. This process begins when there is notification from the receiving department that goods have been returned by a customer.
Subprocess 2. If the sales return is not valid, it will be rejected see Reject stub and processed through a separate exception routine. If the sales return is valid, it is sent to subprocess 2. At the same time, the validated sales return is sent to subprocess 2. This results in updates to sales returns and allowances and to AR.
Process 2. The aging details would be used to identify and follow up on late-paying customer accounts. One of two types of adjustments might result from this review: The recurring adjusting entry for estimated bad debts. The periodic write-off of definitely worthless customer accounts. Like process 2. Details of unpaid invoices are extracted from the accounts receivable master data and are summarized in a statement of account that is mailed or sent electronically to customers. Sales return notification 9.
AR adjustments event data 2. Periodic customer statements 3. Validated sales return notification Accounts receivable master data 5. GL sales return update Reject GL estimated bad debts update 7. GL write-off update 8. Credit memo PTS: 1 4. Below is the narrative for the Receive payment portion i.
Narrative Description The payment and remittance advice data triggers the receive payment process. Upon receipt of the payment and RA from the bank, process 3. Mismatches are rejected for later processing.
If the payment and RA agree, the validated remittance is sent to process 3. This is an immediate update of the GL for a single cash receipt. TB Figure In the matrix, each omission is indicated by a box. Jumbled lists of the omitted items are as follows: Omitted from Control Goals Columns 1. Accounts receivable master data 2. Ensure efficient employment of resources people, computers 3.
For completed shipping notice inputs, ensure 4. Ensure security of resources 5. For the accounts receivable and master data, ensure 6. Ensure effectiveness of operations Omitted Control Plans 7. Confirm customer accounts regularly 8. Compare input shipping notices to sales order master data 9. Independent pricing data Review shipped not billed sales orders tickler file Independent billing authorization HINT: Complete the control goal column headings first, and then use the cell entries as a guide in deciding which number 7 through 12 above belongs in each box in the recommended control plans column.
Fill in the omitted descriptions in the flowchart by matching the numbers from the list below with the letters on the flowchart.
Missing descriptions: 1. Billing completed, changes to AR and related accounts 2. Shipments not yet billed 3. Compare batch totals with changes to AR and related accounts 5. Create and print invoice, update AR, sales event, and GL data, send Billing completed notice with amounts posted to AR and related accounts 6. Customer 8. Select shipments to be billed and prepare batch total 9.
Enterprise database Error routine not shown Invoice Prepare and display Shipments not yet billed Request shipments to be billed Select shipments and execute billing program Start Letter from flowchart Missing description A
Accounting Information Systems
Accounting Information Systems 10th Edition Gelinas, Dull, Wheeler Test Bank