Financial Information System is the main reporting of data used by organization for financial management and reporting function.
i. Recording of all transaction in general ledger accounts. The system records the organization financial transactions in a general ledger accounts for assets, liabilities revenues and expenses any financial transaction carried out by an organization can be record and kept in the ledger accounts by the help of the system.
ii. by the help of financial system an organization can generate its financial report to meet the management and statutory requirement, hence the management gets the financial report easily thus making ...view middle of the document...
Transaction processing allows multiple individuals operations to be linked together automatically as a single indivisible transaction. The transaction processing system ensures that either all operations in a transaction are completed without error or non of them are
if some of the operations are completed but errors occur when the others are attempted, the transaction processing system ‘rolls back’ all of operations of erasing all traces of the transactions and restoring system to the consistent, known state that it was in before processing of the transaction began.
If all operations of a transaction are completed successfully. The transaction is carried by the system and all changes to- the database are made permanent hence the transaction cannot be rolled back once this is done.
Transaction processing gourds against hardware and software across that might leave a transaction parity completed with the system left in an unknown, in consistent state. if the computer system crashes in the middle of a transaction , the transaction processing system guarantees that all operations in any uncommitted transaction are cancelled.
FA is used to record all financial transaction in general ledger accountant for assets ie accounting liabilities A/P revenue and expenses. FA also procedures the organization’s financial statements.
For central reporting purpose, FA is considered to be the core of the financial information system. It’s the only and retained earnings.
For division or department purpose, FA provides the accounts the accounts codes to be used in recording revenue, expenses, accounts receivable and accounts payable activity. These accounts codes are found in the following ledger and subsiding ledgers.
i. General Ledger – a collection of accounts used to record and classify all financial transactions assets, liability, renewed or expense
ii. Accounts receivable - A subsidiary ledger to General ledger it’s a collection of individual customer accounts used to keep track of monies owed to organization.
iii. Accounts payable – A subsidiary ledger to the General ledger it’s a collection of vendor accounts used to keep track of amounts payable by organization.
b) Financial Management (FM)
FM contains a unique feature not present anywhere else in financial information system. FM will prevent a transaction from being posted if there is not sufficient budget to cover the transaction. The feature is known as funds availability.
Funding defines the source of budget money in an organization, can come from a variety of sources, organization receive funding from various governments, research granting agencies, private donors and sponsoring companies, organization also generate funding from the sale of goods or services through various activities in order to meet management and statutory reporting requirement.
Organization must be able to track and report on the different funding sources and...