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

IT SYSTEMS OF EXPENDITURES AND CASH DISBURSEMENT PROCESSES (STUDY OBJECTIVE 5)

Even in computerized accounting systems, there can be many manual tasks. This is usually true for small or midsize companies with small-scale IT systems. The examples shown in the early parts of this chapter of screen captures from Microsoft Dynamics^® accounting software depict such a system. In purchasing systems, the document matching is often called a three-way match. A three way match is the matching of a purchase order to the related receiving report and invoice. The person operating the computer software must still physically match the purchase order to a receiving report and invoice, deciding which invoices match which purchase orders and receiving reports. The computer automates much of the record keeping and check writing, but a human must still make decisions regarding this matching process, depicted in Exhibit 9-19.

Within small or midsize organizations with accounting software such as Microsoft Dynamics^®, the following tasks must be completed by employees:

1. The purchasing department orders items from a vendor, and an employee must enter a purchase order into the accounting software by keying data into the fields of a purchase order form on the screen.
2. The receiving department receives the goods and compares the packing slip with the purchase order to confirm part numbers and quantities.