Accounting Information Systems SUA project
hisnish
SUAIntroduction1.pptxSystem Understanding Aid (SUA) Introduction
SUA Contents
Instructions and Flowcharts
Reference Book
Documents Folder
Journals
Ledgers
Requirements
Read pages 3 - 12 (stopping at Waren’s Month‐End Procedures) in the “Instructions, Flowcharts, and Ledgers” book.
Follow Option 1 – Cycle-Based Approach. First process the Revenue Cycle transactions and then the Expenditure Cycle transactions. Stop before the Month‐End Procedures, i.e., do not perform the month‐end and yearend procedures.
Use Transaction List A (Document No. 1 with an A at the bottom left corner).
Waren Sports Supply
Business
a distributor of sporting goods to colleges and universities
Personnel
Ray Kramer : Salaried manager
Jim Adams: Hourly employee
Nancy Ford: Hourly employee
Inventory – Periodic
Depreciation - Straight-line
Customer and Vendor credit terms (payment discounts)
Reference Book
Flowcharting Help
Business Processes
Explanations and examples of completed source documents
Documents Folder
Doc #1: Use Transaction list A (Blue)
First complete the revenue transactions: 1, 2, 5, 6, 10, 12, 13, 14, 15, followed by the expenditure transactions: 3, 4, 7, 8, 9, 11, 16, 17, 18, 19, 20.
Doc #2: Chart of General Ledger Accounts
Will need this information to record journal entries and post to ledgers.
Doc #3: Price lists
Will need product price (when you record sales) and cost (when you record purchases) information.
Doc #4 – 27: Source documents
Note
Doc No.
Transaction #1
Means you need to prepare documents
Instructions & Flowcharts page for relevant flowchart
SAMPLE
Check flowchart again…
Transaction #2
Flowchart page 21
Cash Receipts Prelist
Charge Sale Invoice #730 ?
Cash Receipts Prelist
Flowchart page 21
Waren’s credit terms:
Customers: 2/10, Net 30
AR Sub Ledger
AR Sub Ledger
Check Flowchart again
NF: Nancy Ford’s independent Verification
7-step Process to Record a Transaction (Instructions page 11-12)
Read and analyze the transaction.
Find the appropriate flowchart(s) on pages 18 through 24 of the Instruction & Flowcharts book. Carefully read and follow all procedures in the flowcharts.
Locate and prepare appropriate documents if any are necessary for this transaction.
Record the transaction in journals if necessary. Use general journals only when no other journal is appropriate (only for one transaction: the write-off for transaction #12).
Post individual items to subsidiary ledgers if necessary. Then, place a check mark in the post reference columns to indicate that journal items have been posted.
Not required: Attempt to file the document in appropriate file tab to stay organized, but this will not be graded.
Confirm that you have completed all steps in the transaction and related flowchart(s) before proceeding to the next transaction. First complete the revenue transactions: 1, 2, 5, 6, 10, 12, 13, 14, 15, followed by the expenditure transactions: 3, 4, 7, 8, 9, 11, 16, 17, 18, 19, 20.
