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Group Assignment

1007 words - 5 pages

Kudler Fine Foods: Automated Process of Accounting Information Systems

Learning Team A

Melanie Barnes, James Corradino, Carmelita Quito,
Heather Romano, & Shawndele Stafford
Accounting Information Systems/ACC542
Richard E. Westbay
May 22, 2010

Characteristics of the system that support the recommended course of action

Kudler Fine Foods is similar to any other business. Kudler uses payroll, accounts payable, accounts receivable, and inventory processes. Kudler would like to improve these four processes by incorporating the use of accounting information systems (AIS). The business must decide whether to purchase industry-specific software or develop customized software ...view middle of the document...

With the general ledger module, paper-based source documents will be minimized. Also, the necessary requirement for manual data entry will decrease.
Accounts Payable Module:

The accounts payable module provided all functions necessary. Such functions include vendor codes and master files, multiple bank account options for check printing, posting vendor orders directly to the AP module and tax and freight allocations. Because some vendors require cash payments, each store has a petty cash fund to accommodate cash purchases. In cases where the purchase is considered large, Finance and Accounting is notified in advance and the store manager is provided with a check that may be cased at a branch of our bank. Records of such transactions are faxed to Finance and Accounting and then manually entered into the system (Kudler Fine Foods, Accounting Systems Overview, pg. 1).

Accounts Receivable/ POS Module:

The Accounts Receivable/POS module captures and reports all retail sales in detail…item code, cost, price, time, station, clerk, quantity, store, etc (Kudler Fine Foods, Accounting Systems Overview, pg. 1). This module also handles all credit and debit card transactions, which are processed to the electronic payment clearing house and the cash reconciliation module, with 85% of sales being a debit or credit card transaction.

Bank Reconciliation module:

Bank reconciliation is performed on a daily and monthly basis. This module also assists in the cash flow analysis by collating data from AP, AR and the Purchase Order Module.

Kudler Fine Foods Automated Process Flowchart


AIS Maintenance

After the implementation of the specialized software for the Transaction Processing Systems—“process data resulting from business transactions, update operational databases, and produce business documents (e.g., sales and inventory processing and accounting systems)”—the next step for Kudler’s Foods will be to monitor the output, make enhancements, and maintain the system for quality information in areas of payroll, accounts payable, accounts receivable, and inventory (O’Brien & Marakas, 2008, p. 14). These steps are necessary to ensure quality control and sustainability of the AIS output Kudler uses for decision making. The...

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