Accountin information system Coursework Example | Topics and Well Written Essays - 1500 words

Accountin information system - Coursework Example The main parts of the revenue cycle are the sales order processing subsystem and the cash receipts system. The sales order system includes units such as the sales, credit, billing, warehouse, shipping, billing, inventory control, accounts receivable and general ledger. Another important unit is involved with the sales returns on the basis of the fact that the sales made are not always final. The cash receipts system on the other hand is involved in the financial phase of the revenue cycle (Hall 2004, ch.4). 2. Validity checks, completeness tests and reasonableness tests can be used to ensure accuracy of customer orders on the basis of the principle regarding levels of authorization. Validity of the transaction, completeness of the process involved in the sales made and the reliability of the processes undertaken are included in the factors that can determine the finality of the transaction. In addition, the data that are gathered can be used to determine the expected sales in a particular period rendering the amount of funds that can be collected. 3. The CRM refers to customer relationship management which can be considered as one of the important parts of the accounting information systems. It is generally used for storage of customer data (Encyclopedia of Business and Finance). 4. EDI or electronic data interchange is an input device in the AIS that can help the billing and account receivable process by increasing the speed of the phases involved through automatically adjusting the correct input of data (Encyclopedia of Business and Finance). 7. The credit approval is an important part of the revenue cycle on the basis of the fact that it can be considered as part of the build up for a proper provision for in-debt payments. The said process reduces the risk of over invoicing a non-credit worthy customer, thus, decreasing the risk for unpaid accounts. It serves as a way of counter-checking (Encyclopedia of