Accounting information system Essay Example | Topics and Well Written Essays - 1500 words

Accounting information system - Essay Example The client makes an order for a particular product to the purchasing department where the clerk will process the order and forward it to the inventory personnel. The inventory personnel will confirm availability of the products and service. Upon confirmation, the clerk sends a confirmation to the customer and begins the billing process. The billing process is done by the clerk who then sends an invoice to the client for the products in the purchase order. Once the client receives the invoice, then they can make the necessary payments to the accounts clerk before collecting the products purchased. Payments can be made by cheque or by cash to the accounts department of the company. The revenue cycle comprise four major processes that yield different files and documents that are used both in the revenue cycle and in other cycles in the company. These processes and the subsequent files and documents include: i) Order processing: this process is initiated by the customer who makes an order for particular products from the company. He issues a purchase order to the clerk in the purchasing department. The clerk stores the purchase order in a file named Purchase_orders. This file contains all orders made by different customers for different clients. The clerk also creates a file for the customers where the details for all the customers are stored. ii) Billing: Once the clerk files the purchase order, he confirms availability of products from the inventory file maintained by the inventory clerk and issues a confirmation to the client. At this point the customer is given an invoice of products in the purchase order. A copy of the invoice is stored in the invoices file. This file has all the invoices stored in the company. iii) Payment: Once the customer is issued with the invoice by the purchasing department clerk, he then can make payments for the ordered products to the accounts clerk. Payment is made by cash or by bankers cheque. The customer is then issued with a