OUTPUTS FROM THE AIS RELATED TO BUSINESS PROCESSES (STUDY OBJECTIVE 8)
An accounting information system generates many different types of output. There are so many potential outputs that it is not possible to cover all of them in detail here. This section will describe the following general categories of outputs:
- Trading partner documents such as checks, invoices, and statements
- Internal documents
- Internal reports
- External reports
Some of the outputs of the accounting information system are documents exchanged with trading partners such as customers and vendors. Invoices and statements are examples of documents sent to customers. Checks are outputs sent to vendors. These outputs may be in electronic or paper form. For example, electronic outputs include checks sent to vendors via electronic funds transfer and customer invoices sent via electronic data interchange.
Internal documents are another form of output from an accounting information system. Examples of internal documents include credit memorandums, receiving reports, production routing documents, and production scheduling documents. These documents may be printed paper forms, or they may be in the form of screen outputs viewed on the user's computer.
Accounting information systems also generate outputs in the form of reports for either internal or external users of accounting information. External reports are usually financial statements that include a balance sheet, income statement, and statement of cash flows. There are an unlimited number of potential internal reports, as this category comprises any information that management determines is useful to the business. Internal reports provide feedback to managers to assist them in running the business processes under their control. For example, an aged accounts receivable report may be prepared for the manager responsible for accounts receivable; the managers who oversee inventory would be interested in an inventory status report identifying those products that are at low stock levels.
Internal reports vary by process, by manager level, and by the type of organization. They are designed specifically for the function that is the subject of the report. Internal reports may be printed on paper, viewed on a computer screen, or created (either on screen or paper) as customizable queries that allow a manager to “drill down” into the details of the process being managed.