Pendahuluan

Information system is an important role for the company in its business.

Information system is a combination of various components and procedures that
collect, store, process becomes information and send the information to the user to
support the decision making of the company
Business process refers to a method where workers managed, coordinated,
and focused to produce a valuable product or service. The business process is an
operating current of raw materials, information, and knowledge a set of activity and
also refers to unique way where management choose to coordinate work. The
companys business process can be a source of competitive strength if it allow
company to innovate or run better from its competitor. Business process can also
be a liability if it based on outdated ways of working have stymied vigilance and
efficiency of the organization. Business process passes through many different
functional areas and requires coordination between departments
Transaction processing cycles on the system defined by Romney and
Steinbart as a series of activities in the company does business, start from
purchasing, production, and sales of goods and services. Cycle of transactions on
the company can be divided into five sub system. That are:
1. Revenue cycle such as sales transaction of goods and service that finally
receive a some money
2. Expenditure cycle such as purchasing transaction of good to sales or
material that use for production became good and finally will release a
some money
3. Human resource / payroll cycle such as thing that related recruitment and
payroll to employee
4. Production cycle, such as a thing related with make a material became a
good that ready for sale
5. Financing cycle, such as transaction that company sales to investor,
company borrow some money, and pay a dividend with the interest to
investor

Pembahasan
Review of Key Business Process in Manufacturing Firms
Manufacturing and production function is responsible for actually producing
goods and service of the company. System manufacturing and production related to
the planning, development, and maintenance of production facilities, production
target setting, procurement, storage, and the availability of production materials,
and scheduling of equipment, facilities, material, and labor required to form the final
product. System manufacturing and production (manufacturing and production
information system) support this activity.
Purchasing and Cash Disbursements
Expenditure cycle is repeat business activity and data processing operations
associated with the purchase and payment for goods and services. The main
purpose of the expenditure cycle is to facilitate the exchange of cash with suppliers
for goods and services required where specific objectives contained therein
includes:
1. Ensure that all goods and services ordered as required
2. Accept all goods ordered and verification that these goods are valid and
correct
3. Keeping the goods until needed
4. Ensure that invoices relating to goods and services is valid and correct
5. Recording and classified expenses quickly and accurately
6. Posting obligations and disbursements to the approximate right suppliers
in the accounts payable ledger
7. Ensure that all cash disbursements related with disbursement that
authorized
8. Preparing all the documents and reports necessary managerial related
goods or services obtained
The function of the expenditure cycle itself consists of:
1. Knowing the need for such goods
2. Placing Orders, Receiving and storing goods
3. To ensure the validity of the payment obligation
4. Prepare cash disbursements
5. Manage trade payables
6. Posting of transactions to the general ledger
7. Prepare financial statements and management reports required
Expenditure cycle aims to reduce the cost of equipment, and the costs
pemelihraan warehouse inventory, equipment costs, and other costs in benuk
expenditure on services received by the company. In order to suppress all of the
above costs, the management must make some important decisions as follows:
determine the amount of supplies and equipment are safe
Determine which suppliers actually provide good service
determine placements where inventory is stored
Make purchases across units can reduce the cost of purchase
Optimizing the use of technology and information to occur efsiensi

 Controlling the availability of cash to get a piece of the purchase

Do a cash flow management to facilitate repayment to the supplier

Business Activity Cycle Spending

Business Activity Cycle Spending such as
1. Order of goods, equipment and services
2. Receiving and storing of goods, supplies and services
3. Pay goods, supplies and services
Order of goods, equipment and services
Activities requests purchases of goods and services carried out by using a
document requisition. This document contains a list of reservations which include:
shipping destination, booking date, name and type of goods and order quantity. The
procedure is that each department is allowed to fill requisition documents with the
consent of the manager. After the documents submitted requisition to the
purchasing department for the goods been booked. This is done so that each
department needs to be fulfilled and also the control of the company that can not
happen doubling ordering goods to the supplier.
There are two types of inventory control methods or equipment are:
a. Traditional Control Method
Traditional inventory control methods is often called: economic order quantity
(EOQ). This approach is based on the calculation of the optimal number of
orders to minimize total cost of ordering, storage and inventory shortages
b. Alternative Control Methods
MRP (material requirement planning) This approach aims to reduce
inventory levels required by way of the production schedule, instead of
estimating needs.
JIT (just in time), JIT system seeks to minimize, if not eliminate, both
the cost of your warehouse and inventory shortages.
Receiving and storing of goods, supplies and services
Activities receipt of goods and services that have been purchased done using
documents Receiving Report. This document contains an acknowledgment of receipt
of goods and services, which includes the date of receipt of the goods, the type and
quantity of goods that have been received, shipping origin (Supplier), and Purchase
Order number.
In this activity matching of invoices with purchase orders in order to
determine whether the goods received are in accordance with the posted exceed
the quantity ordered, or even wrong delivery has occurred, the goods concerned
shall immediately be returned to the supplier concerned. In these activities may
also be carried out their returns / refund of goods damaged when received.
After that, the warehouse section will create a document Receive Report to
recognize the increase of inventory in the warehouse on the invoice. In the event
that recognizes accretion in warehouse inventories by Invoice. In this case, only the
items contained in the Purchase Order are allowed to be recognized, whereas that

does not comply immediately returned. This is the control of the company to be
aware of what items have been received and not yet delivered by the Supplier.
The reception report is the main document used in the subsystem acceptance
in the expenditure cycle, the report documents the details concerning: each
shipment, including the date of receipt, delivery, supplier, and purchase order
number. The reception has two main responsibilities:
Decide whether to accept delivery
Check the quantity and quality of the goods
Pay goods, supplies and services
Activities consent of Supplier in the framework of payment for purchases.
Voucher document done by using Package. This document contains the date of
manufacture, payment date, as well as the sum of the prices of goods and services
received by Source Document existing includes Invoicing, Purchase Order, and
Receiving Report. In this activity, matching Receiving Report with a Purchase Order
in order to determine whether all of the goods ordered have been received / sent all.
Then made voucher package to ensure the amount of the price to be paid to the
Supplier. This is the control of the company to determine how much should be paid
according to the amount of goods that have been accepted in accordance with
reality. Interest payable is to authorize payment only for goods and services ordered
and perfectly acceptable.
Fixing payable processing efficiency can be improved by:
Requiring suppliers to provide invoices electronically, through the
Internet
Removal of vendor invoices (suppliers). The approach is called
evaluated without invoice Receipt Settlement (ERS).
There are two ways to process sales invoice from the vendor:
System without voucher
Voucher System
Activities payments for the purchase of goods and services that have been
performed using the document disbursements of cash. This document contains
payment date, the amount of the price to be paid, along with the invoice number. At
the time of the payment due, the Supplier will collect company in accordance with
the document voucher Package. This is the control of the company in order to
determine the amount of the company's cash expenditures.
Processing and Flow Chart (Flowchart) Expenditure Cycle. Expenditure cycle
which will be discussed below are divided into three, namely:
a. Purchasing System
b. Cash Expenditure System
c. Payment System Salary
Part that related with purchasing system, there are:
The purchasing department, which serves an order of the seller and his
input to the computer
Debt part, which is responsible for maintaining records of purchases of
goods to the supplier, so as to know the amount payable to each
supplier and also a history of service suppliers.

 Section warehouse, which is in charge of receiving the shipment of

goods ordered and make a report to the purchasing department that
the goods have been received, so ready to accept the bill.
Part debt, which is in charge of receiving invoices or bills from
suppliers.
The finance department or cashier responsible for paying debts to
suppliers in accordance with period pieces so that the company can
obtain cash rebate and to keep records on the payment.
Document that used in the purchase account system such as
Requests Items (Material Purchase requisition or requisition)
preliminary documents authorizing the expenditure cycle placement of
orders for goods or services.
2. Supply of Goods (Qutation)
Documents used in competition procedures bargaining, show the
goods and services required and the price of its competitors,
conditions, and so forth.
Product Order (Purchase Order)
This document lists the decryption, the quality and quantity or any
other information on the goods or services to be purchased.
Receipt of Goods (Delivery Receipt)
Document showing the date of receipt, purchase order number, code
and name of goods, the number of goods received and identity.
Sales Invoice (Invoice)
Documents showing the description and quantity of the goods sold, the
price including freight charges, insurance, payment terms, and other
relevant data.
Production
This cycle includes the activities of converting the raw materials and labor
into finished product. In this cycle there are 4 base activity, there are:
a. Design product, the design of the product is intended that the resulting
product will be sold, have good quality, essentially so that the product can
win compete with other products.
b. Planning and Scheduling, Planning and scheduling here related to the product
manufacturing process that has been in the design. It also includes planning
the acquisition of raw materials, here there are two methods:
Production Resource Planning Method, companies set up a warehouse
to accommodate raw materials so that later when it will make the
production we already have the raw material.
Method Jus in Time, that company does not have the raw material
storage warehouse for raw materials ordered when there is a sales
order or at the time the message was too (just in time).
c. Production operation, The procedures were carried out in order to produce a
product.
d. Cost accounting, Process all the information related to the production costs
including raw material costs, labor costs and factory overhead costs. So
hopefully will be able to produce accurate cost.

Restrictions Application Production Cycle

Inventory control can be achieved through the records and reports of
inventory that provides information such as the use of inventory, inventory
balances, minimum and maximum inventory levels. The point of order and
procedures should be established. Re-order point is the level of inventory which
should be an additional order to avoid a shortage. Determination of the point of
order again requires analyzing product demand, the cost of setup ordering or
production, lead time of supply or production, the cost of inventory handling, and
the costs associated with the absence of supplies such as loss on sale or use of
production facilities are not efficient. Because the goal is to minimize total inventory
control inventory costs, an important decision that should be made is the large
quantity of economically any purchase order called economic order quantity (EOQ).
The order quantity must be equal to the total carrying cost and ordering cost.
Subsystem applications Production Cycle
The design of the product is the initial stage of the production system that
aims to design a product that meets the needs of consumers in terms of quality,
lead time and production costs are low.
Cost Accounting System
The final stage in the production system is a cost accounting system that
aims, namely:
o Generating information for planning, control, and performance
assessment dala production.
o Generate accurate cost information to be used as the basis for
determining the price (pricing) and kepututusan about the composition
of the product (product mix).
o Generating information that can be used to calculate the value of
inventory and cost of sales.
Kind of cost accounting system that is commonly used by a company is a
system of determining the cost of the order (job order costing) and peneentuan
system cost process (process costing) and reports generated cost accounting
system generally include:
Report of control (control report).
Report of the cost of production (production cost report)
The accounting records are maintained in cost accounting systems are:
1. If the company's data processing costs manually (non computerized
record):
The Company's services and manufacturing using a card cost of
production (production cost ledger) that serves as a maid for an
account card product inventory in the process.
If the company uses the system cost of the order, the record is
created a page for each order.
If the company uses the cost of system processes, the record is
created in one page for each cost center. To record the
information in this note, used records of production orders.
2. If the company's data processing costs by using a computer:
Master file and file transactions

Sales and Cash Receive

All related to a series of business activities and the activities of information
processing that occurs repeatedly associated with the delivery of goods and
services to customers and accept all forms of settlement received from customers
can be defined as the revenue cycle. Provide goods or services in accordance with
the agreement between the seller to the buyer at the time and place as well as the
appropriate price is the main activity in the revenue cycle activities. To provide
services to buyers, the company leaders must implement the following policies:
Ensure that the product conforms to the needs and desires of
customers
Keep the supply of goods or services provided at any time
Define the terms of delivery of the goods to the buyer
Set the price high
Determine credit facilities and credit offers maximum
How much credit should be given? Determine sales credit required
Determine maximal amount that should be pay
Parties firms in these activities are always studying and evaluating the
effectiveness of the revenue cycle process. data and information received must be
accurate and reliable and relevant to be used as a decision-making by the
leadership. According to Romney (2005), there are three basic functions SIA in the
revenue cycle, namely:
Obtain and process data concerning the some activity business
Store and organize data to support decision-making
Provide oversight to ensure the reliability of data as well as keeping the
company's resources
All are related to a series of activity of business and information processing
activities that occur repeatedly associated with the receipt of goods and services
from suppliers and pay all forms of settlement submitted to suppliers can be
interpreted as the expenditure cycle.
Revenue Cycle
This cycle aims to find out the details during the process of cash collection
takes place and the receipt of income. Revenue Cycle Business Activities:
a. Receiving Sales Order, Beginning with the acceptance of orders
from customers which are then processed by a part of the sales
order to be accountable to the vice president of marketing.
Receive orders
Many ways to improve efficient and sales effectiveness
entry process orders. One is to allow customers to enter
their own sales order data (in sales in through the
website). Another way to use electronic data interchange
(EDI) to deal directly with customers. All the data required
to process orders collected and recorded accurately. To
that end, there should be checks on:
o Matching information in file Customer master file
inventory
o Ensure that all necessary information has been
included in full

Verification the quantity ordered with a history of

selling goods concerned customers
Credit Approval
Sales on credit widely carried out in the company's
business practices. Usually made credit limit for each
customer record of previous customer's credit and ability to
pay. Usually there is a special authorization to approve
loans for new customers, when an order exceeding the
maximum limit of the customer's credit.
Checking inventory availability
The next step to establish whether sufficient amount of
inventory to meet orders, so that you can inform the
customer when the order will be sent. If the insufficient
availability of goods order is then made to re-order the
item. When availability is assured, then create a capture
card that lists the items that type of stuff and the amount of
goods ordered.
Inform the customer
Customer service is important for the company, to the
company can use Customer Relationship Management
system (CRM) support the important processes in
responding to customer demand. The system is set up
detailed data about the customer data can be used to
facilitate a more efficient service and personalized to the
customer.
b. Delivery
Pick and pack orders
Employees of the warehouse using a capture card product
identifies goods as well as how many orders issued from
the warehouse. The employees of the warehouse will record
the number of each item taken. Goods are then transferred
to the shipping department.
Delivery of orders
Part shipments will check the number of physical inventory
the number listed in the picking of goods with the amount
directed to a copy of the sales order is sent directly to the
delivery based on sales orders. A copy of the packaging
contains the number of the descriptions of each item that
was added to the shipping list. Prepare shipping documents
constitute formal contract and stated that there are
responsibilities on a number of goods shipped.
c. Billing and Accounts Receivable, Activities that occur in accounts
receivable is as follows:
Billing
Billing activity is activity that repackage information
processing and summarizing information from sales order
entry and shipping activity. In the billing activity, created
the basic document is a sales invoice that inform customers
o

about the amount of their liabilities from transactions that

occur as well as when and where they will finish.
Care and receivables
An important function of data of trade receivables are using
a variety of information contained on a sales invoice to
facilitate conduct debit and credit the account upon receipt
of the bill. There are two treatments to maintain the data of
the trade receivables, namely using the open method of
invoicing and payment method total.
d. Treasury bills, the end revenue cycle is the acceptance of cash bills.
Receipt of cash and checks from customers can only be stolen
easily by people who are not responsible. To that can be used
several alternative steps to reduce the risk of the theft. Are as
follows :
Assigning correspondence section staff to prepare a list of
remittances, ie documents that identify the name and
number of all remittances customers, and send this list gets
receivable.
Security theft of remittances customers by employees of
the company by creating a lockbox system (a postal
address of the intended customer when handing their
money) in the bank. The use of this lockbox will also
improve cash flow management. With the lockbox, would
negate the delays associated with processing customer
remittances before storage. However, special officers each
due date of the bill should examine this contact.
Proof of Transaction Processing Mechanism
The main characteristic of the revenue cycle system is demonstrated by the
complexity of the data and the integration of the resulting data. Direct dataprocessing system (on-line) that receive orders via the Internet or order to the
salesperson, has the following advantages:
Errors can be detected early because entries made to customer
orders
Credit approval can be made immediately at the time of handing
customer order
Supply conditions more accurately and ensure service to customers
Saving time by the warehouse and shipping department
Mistakes can be detected early because the data entered by parts
that are shipping with easy sales file verification
Improved cash flow and more timely performance measures
Supervision
Another function of the AIS is designed both the process of setting up
surveillance and control with the intention to authorize the transaction correctly and
recording valid, can maintain data security of cash, inventory of the risk of loss and
theft, and can increase of efficiency and effectiveness of activities