Explain, using examples, the relationship between the organisational MIS and the other functional information system in an organisation. Describe how AIS receives and provides information to other functional MIS.
Explain, using examples, the relationship between the organisational MIS and the other functional information system in an organisation. Describe how AIS receives and provides information to other functional MIS.
Accounting information system is an important component of the organisational MIS in an organisation. It receives information and provides information to the other functional MIS. The following examples illustrate the relationship and date interface between the various sub-components of MIS.
(I) Accounting Information System, Manufacturing Information System and Human Resource Information System - From the figure given below we can go through the relationship between the three information systems, viz. manufacturing information system, accounting information system and the human resource information system. The manufacturing department receives the list of workers from the Human Resource (HR) department.
It sends the details of production achieved by the workers on the basis of which the HR department directs to the finance and accounts (F&A) department to pay the wages. The details of the wages paid and statuory dues are also send by the F & A department to the production department also to the HR department to monitor the performance of workers.
The HR department communicates to the other departments about the good/bad performance on the basis of which decisions on various operational matters may be taken.
(ii) AIS and Marketing Information System - Consider the business process in the Marketing and Sales Department involving the following activities:
(a) Inquiry (b) Contact creation
(c) Entry of orders (d) Dispatch of goods
(e) Billing to customers
The accounting sub-systems's transaction cycle include the processing of sales orders, credit authorisation, custody of the goods, inventory position, shipping information, receivables, etc. It also keeps a track of the customer accounts, e.g., Aging Report, which should be generated by the system.
(iii) AIS and Manufacturing Information System - Business processes in the production department may involve the following activities:
(a) Preparation of plans and schedules
(b) Issue of material requisition forms and job cards
(c) Issue of inventory
(d) Issue of orders for procurement of raw materials
(e) Handiling of vendors invoices
(f) Payments to vendors
Hence, it can be said that a computerised accounting system is a sub component of the accounting information system which transforms the financial data into meaningful information and communicates the information to the decision-makers. The report demanded may be routine or specific ones.
Accounting information system is an important component of the organisational MIS in an organisation. It receives information and provides information to the other functional MIS. The following examples illustrate the relationship and date interface between the various sub-components of MIS.
(I) Accounting Information System, Manufacturing Information System and Human Resource Information System - From the figure given below we can go through the relationship between the three information systems, viz. manufacturing information system, accounting information system and the human resource information system. The manufacturing department receives the list of workers from the Human Resource (HR) department.
It sends the details of production achieved by the workers on the basis of which the HR department directs to the finance and accounts (F&A) department to pay the wages. The details of the wages paid and statuory dues are also send by the F & A department to the production department also to the HR department to monitor the performance of workers.
The HR department communicates to the other departments about the good/bad performance on the basis of which decisions on various operational matters may be taken.
(ii) AIS and Marketing Information System - Consider the business process in the Marketing and Sales Department involving the following activities:
(a) Inquiry (b) Contact creation
(c) Entry of orders (d) Dispatch of goods
(e) Billing to customers
The accounting sub-systems's transaction cycle include the processing of sales orders, credit authorisation, custody of the goods, inventory position, shipping information, receivables, etc. It also keeps a track of the customer accounts, e.g., Aging Report, which should be generated by the system.
(iii) AIS and Manufacturing Information System - Business processes in the production department may involve the following activities:
(a) Preparation of plans and schedules
(b) Issue of material requisition forms and job cards
(c) Issue of inventory
(d) Issue of orders for procurement of raw materials
(e) Handiling of vendors invoices
(f) Payments to vendors
Hence, it can be said that a computerised accounting system is a sub component of the accounting information system which transforms the financial data into meaningful information and communicates the information to the decision-makers. The report demanded may be routine or specific ones.
