Question 2: 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.
Answer:
Accounting information system is an important component of the organisation MIS in an organisation. It receives information and provides information to the other functional MIS. The following example illustrates the relationship and data interface between the various sub - components of MIS.
(i) Accounting Information System, Manufacture 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 departments 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 the finance and accounts (F&A) department to pay the wages. The details of the wages paid and statutory dues are also sent by the F&A departments 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 decision on various operational matters may be taken.
(ii) AIS and Marketing Information System Consider the business process in the Marketing and Sales departments involving the following activities
(a) Inquiry
(b) Contact creation
(c) Entry of orders
(d) Dispatch of goods
(e) Billing to customers
The accounting sub-system transaction cycle include the processing of sales order, 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 process in the production department may involve the following activities
(a) Preparation of plans and schedules
(b) Issue of material requisition forms and jobs cards
(c) Issue of inventory
(d) Issue of order for procurement of raw materials
(e) Handling of vendors invoices
(f) Payments to vendors
Hence, it can be said that a computerized 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 reports demanded may be routine or specific ones.and the other functional information system in an organisation.
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