Anthony True, Cynthia Perry, Jennifer Whatley, Robin Burkman
Accounting Information Systems I
December 19, 2016
Riordan Manufacturing Finance and Accounting systems are having problems making the different AIS systems and ERP system work together, and the issues are apparent to Riordan?s suppliers and customers. ?The F & A Department has been unable to achieve anything remotely resembling “seamless compatibility” (Riordan/Finance/Overview, 2016). Accounts payable is different in each of Riordan Manufacturing locations, and each location has maintained payments to vendors, as they did before to the acquisitions.
Riordan will need to make sure that the hardware system that they have will be to handle the new ERP system. The hardware is what will store the ERP system. The Headquarters will need to have the mainframe computers and the centralized databases. All locations will need to have updated computers that will have internet portals as well as the ERP system. There should be back-up servers at each of the locations to help if the mainframe computers have an issue.
Riordan will be investing in a new state of the art ERP system that will integrate the Finance and Accounting systems from all four locations. It will be important that Riordan?s programs will keep track of financial Riordan will also need to make sure that the programs they choose will allow the accounting clerks to work on a day to day accounts payable processes. The system should also help the accountants maintain and process the financial report sin a timely manner. The ERP system should be able to integrate the payroll, order entry, procurement, accounts receivable, purchasing, sales, inventory, and shipping, plus others.
This paper will discuss who needs access to the information and then what controls need to be in place. Then what types of reports need to be generated. Finally, what information should be available through the corporate intranet or the internet.
Who Needs Access and What Controls Are Needed?
The employees who need access to the accounts payable information can include a few different departments. These include the employees who do the actual purchasing, the employees who receive the invoices and the accounting department. The purchasing department would need access to the supplier information regarding credit limit and payment terms. The receiving department would need access to the accounts payable purchase orders to be able to receive product. Finally, the accounting department would need to have access to ensure vendors are paid promptly and accurately.
Controls need to be put in place to ensure accuracy and to prevent fraud within the accounts payable department. This can be broken down to one person creating the purchase order, another person preparing the receiving report, another employee comparing the invoice with the purchase order and finally the employee who pays the vendors. When there is more than one person responsible for different duties, there is less chance that the company will lose money through embezzlement or other fraudulent activities.
Within Riordan Manufacturing, the needs of an automated system to produce verity of different reports, including reports based on costs of goods sold, selling expenses, cost of labor, administrative expenses, and inventory. The reports generated for accounts payable relate to invoices of inventory received for Riordan Manufacturing to use in outgoing products that must be paid either in 30 days, 60 days, or 90 days depending on the vendor?s contract agreement of repayment. This report will allow the accounting department to receive and pay the bills in a timely manner to prevent any late payment penalties.
Another report that an automated system could produce to help Riordan Manufacturing in their accounts payable department is the AP Trial Balance. An AP Trial Balance report can help the accountant find mathematical or vendor payment errors if ran regularly. The trial balance is compared to the general ledger entries to match payments that are made, any entry that does not match means that a vendor could be over paid or not paid at all or that the payment was made to the wrong vendor. This report will double check the payments made to ensure accuracy of the accounts payable department.
The Intranet?What to Include
One of the biggest pieces to integrating Riordan?s accounting process into an automated system using technology is the development of its Intranet. Currently the company has a well-established blueprint regarding this network as it provides detailed links to many of its processes throughout the organization. For example, Riordan provides links to its sales and marketing branch, human resources, finance and accounting, and IT departments. Within these links users can find employee information for contact purposes, application forms to apply for a specific position, financial documents to reference from prior years, and even customer lists and product sales information. These are all useful pieces of information that can be accessed using Riordan?s network. The main objective in this case, however, is to further integrate the accounts payable process of the company?s accounting cycle. This can be accomplished by providing some of the same type of links that are already available through the Intranet.
In order to best integrate the accounts payable process Riordan can provide further documentation much like its already existing customer list. This link for example could provide a list of vendors the company buys from and the products they offer Riordan. This allows the users within accounts payable to have the necessary information for when they need to contact the vendors directly to set up payments or verify invoices. In addition, the Intranet should also provide tutorials, step-by-step guides, or flowcharts that are easily accessible to anyone in accounts payable. In fact, Costco Wholesale demonstrates this quite well with its established Intranet. Through Costco?s network employees are able to access training videos they must view and pass annually in order to keep them well-informed of their duties and tasks (Costco Wholesale Corporation, 2016). Further establishing Riordan?s Intranet in a similar way would help ensure protocol is being followed and correct steps are being taken to pay the company?s bills. An integrated network such as this provides users with the correct processes, handling of invoices, and payments, and is all located inside one network within the company.
The hardware and software for the accounts payable of Riordan Manufacturing is a very important part to the business as well as the internal controls in place to protect the integrity of the system. Identifying the personnel who needs access to the information available, and what reports would need to be generated though a new automated system is also important. Riordan Manufacturing will need to be able to provide their customers with the best product, and the best website information possible. For each step of the accounting cycle needs to be completed accurately, and each part within the step needs to be accurate as well.
Costco Wholesale Corporation.?(2016).?What is Costco?.?Retrieved from http://www.costco.com/membership-information.html
Riordan/Finance/Overview. (2016). Retrieved from https://ecampus.phoenix.edu: https://ecampus.phoenix.edu/secure/aapd/CIST/VOP/Business/Riordan/Finance/Overview.asp
Accounting Tools. (2016). Retrieved from: http://www.accountingtools.com/questions-and- answers/the-accounts-payable-aging-report.html
AZ Central. (2016). Retrieved from: http://yourbusiness.azcentral.com/three-important-accounts-payable-reports-24827.html
Written Assignment Grading Form ? Team Hardware and Software Selection Paper
Content and Organization?
70 Percent Percent Earned: 70% Comments:
? ? Team A:
The team did a nice job with the part of the project. The team described (briefly) the hardware requirements for the integrated system. The team needed to expand somewhat on what types of information would need to be shared between the various cycles. The team discussed who would need access to the information. The team described some of the controls that would need to be in place for accounts payable but they mostly involved segregation of duties. See my comments. You included some reports that would be useful but you might consider additional reports. The team described what information might be included on the company intranet.
All key elements of the assignment are covered in a substantive way.
Examines the hardware and software necessary to integrate this accounting process into an automated system.
Discuss what information might need to be shared between the different cycles.
Who needs access to the information?
What controls need to be in place?
What types of reports need to be generated?
What information should be available through the corporate intranet or the Internet?
1050-1400 word paper ? summarizing major topics
The content is comprehensive, accurate, and/or persuasive.
The paper develops a central theme or idea, directed toward the appropriate audience.
The paper links theory to relevant examples of current experience and industry practice and uses the vocabulary of the theory correctly.
Major points are stated clearly; are supported by specific details, examples, or analysis; and are organized logically.?
The introduction provides sufficient background on the topic and previews major points.
The conclusion is logical, flows from the body of the paper, and reviews the major points.
Readability and Style?
15 Percent Percent Earned: 15% Comments:?
? ? The team did a good job putting the assignment together. It was fairly well organized. The tone was appropriate to the content.
Paragraph transitions are present and logical and maintain the flow throughout the paper.
The tone is appropriate to the content and assignment.
Sentences are complete, clear, and concise.
Sentences are well-constructed, with consistently strong, varied sentences.
Sentence transitions are present and maintain the flow of thought.
15 Percent Percent Earned: 15% Comments:?
? ? There were no major grammatical or usage errors in the paper.
At least one reference other than the text is cited and referenced.
The paper, including the title page, reference page, tables, and appendices, follow APA guidelines for format.
Citations of original works within the body of the paper follow APA guidelines.
The paper is laid out with effective use of headings, font styles, and white space.
Rules of grammar, usage, and punctuation are followed.
Spelling is correct.
Percent Percent Earned: 100% Comments:
? ? ?
Points Possible – 5 Percent
Points Possible Points earned: 5.0