Accounting Information Systems: The Processes and Controls, 2nd Edition

OVERVIEW OF BUSINESS PROCESSES (STUDY OBJECTIVE 1)

You might wonder how the preceding example relates to accounting information systems. An accounting information system must capture, record, and process all financial transactions. Prior to the implementation of the experimental drive-through order systems, all in-store and drive-through orders were processed through the cash registers at each local McDonald's. When the new, experimental systems were implemented, consider their effects on the system that recorded sales. The new technology had to be configured in such a way that

1. Order details were taken accurately
2. Those details were forwarded to the correct McDonald's location so that the order could be handed to the customer at the drive-through
3. The order data had to be included with McDonald's sales and cash received for the day
4. The correct McDonald's location had to be properly credited with the sale so that the franchise and managers would be given credit for sales they generated

The point of this example is that there are many different ways that sales transactions can be conducted. No matter the form of those business transactions, the accounting information system must identify the transactions to record, capture all the important details of the transaction, properly process the transaction details into the correct accounts, and provide reports externally and internally. Many types of transactions that result from business processes must be captured, recorded, and reported. ...