Accounting Information System

This report discusses the case study of GAAM international company and their re-engineering process to improve business procedures, specifically focusing on the purchasing and MRO procedures. It provides an overview of the current system, process flow, exceptions, strengths, inefficiencies, and the use of information technology. The report concludes with a proposed workflow diagram.

Running head: ACCOUNTING INFORMATION SYSTEM
Accounting Information System
Name of the Student:
Name of the University:
Author Note

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ACCOUNTING INFORMATION SYSTEM
Table of Contents
Introduction................................................................................................................................2
Purpose.......................................................................................................................................2
Participants, Inputs and Outputs to the current system..............................................................2
Process Flow or Activity Descriptions.......................................................................................4
Exceptions..................................................................................................................................4
Business Process Model.............................................................................................................5
Process strengths........................................................................................................................5
Process inefficiencies.................................................................................................................6
Use of Information Technology.................................................................................................7
Business Process Re-engineering...............................................................................................8
Proposed Workflow Diagram....................................................................................................9
Conclusion..................................................................................................................................9
Bibliography.............................................................................................................................10

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ACCOUNTING INFORMATION SYSTEM
Introduction
The report deals with the case study of the GAAM international company. The
organization works mainly in the field of manufacturing companies. The specific area in
which the organization works are mainly heavy-duty vehicles, cranes and high-level
buildings. The head-quarters of the organization are located in South Australia. The
organization works with around 3800 employees and have 27 facilities in seven countries.
The organization is looking to improve the global position of the organization and hence they
are looking to re-engineer the business procedures. The organization would like to improve
their purchasing and MRO procedures of the systems. Hence, the analysis of the overall
procedures have been described in the report and the re-engineering process has been
illustrated in this report.
Purpose
The purpose of the re-engineering process that is to used for GAAM organization
would help them in development of the overall business procedures of the organization. The
main procedure that are to be addressed by this re-engineering policy adopted by the
organization was the MRO process. The MRO process is to be investigated and major flaws
in the procedures of the GAAM organization is to be identified. The designing of the re-
engineering process is to be done so that the identified flaws in the current system can be
easily mitigated and the overall business efficiency of the system would be developed.
Participants, Inputs and Outputs to the current system
PARTICIPANTS INPUTS OUTPUTS
The main participants of the
present system of the
The purchasing department
receives the requests for the
The P/O is generated for the
any type of item that is to be

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ACCOUNTING INFORMATION SYSTEM
organization are the
purchasing manager, two
buyers and secretary. All of
the participants belong to the
purchase department.
MRO supplies from the
GAAM organization. The 36
individuals make the request
in the company. The MRO
Card or the requisition forms
are used for the submission
of the requests. The
individuals in the
organization execute the
purchasing with the help of
the cards and the requisition
forms. The card are used
basically for the purchase of
the items as per the
requirement of the company.
After the completion of the
purchase of the item the
MRO card is returned to the
purchase department. The
MRO buyer then performs
the task of signing and
reviewing the purchase
made by the company.
purchased by the company.
If the purchase of the item is
done using the card then the
card would be returned to
the requesting department
and the request for the
purchase would be placed.
In cases where the request
for the item has been made
using purchase requisition
form then the form
purchasing department
would be required to fill the
form. In emergencies the a
different P/O number is to
be generated and the whole
process and the end results
are to be obtained with
reference to this P/O.

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ACCOUNTING INFORMATION SYSTEM
Process Flow or Activity Descriptions
The process starts with the purchasing department getting a request for the MRO
supplies. The request are then recorded in the MRO card and a requisition for purchase is
filled. The requisitions are required in case there is a new item that is to be purchased by the
department. Once the purchasing department receives the card or the requisition, the review
process is conducted and the P/O or a purchase order is developed for the requested purchase.
After the purchase details are recorded, the order card is then returned to the department. In
cases where the request is made with a requisition form, the purchase department fills up the
form. The P/O is then kept in the P/O program; The purchasing department get the MRO
requisition on a daily basis.
Exceptions
There are several exception in the business process of the GAAM organization. The
exceptions in the business process of the organization are explained below:
 Credit limits: The credit limits are generally set from a range of 500 to 1000 AUS
dollars and in situation where the limit exceeds the requisition is endorsed from the
individual. The higher authority is to be consulted for the process and the hence a
chain of commands are to be followed before all The purchases of the MRO are
authorized.
 Emergencies: There are instances where the MRO buyer make a purchase and there
are rises situation where the item is needed immediately by the purchase department.
The purchased department then requires the purchase number and the purchase
number is made an exception that is different from the list of purchase numbers that
are already assigned for the purchases. These numbers doesn’t match with the
sequence in which the P/O are already sorted. The P/O would be set aside and would

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ACCOUNTING INFORMATION SYSTEM
get a different approach from that of the other P/O numbers. The P/O would be
completed differently and then the distribution would be done normally.
 Old and outdates parts: The older and the outdated parts that are to be used for
replacement are to be handled by the MRO buyer and the buyer is to perform a vendor
pricing and researching process.
Business Process Model
Process strengths
The major strengths of the business processes of the organization are described below:
 The manager and the administrators of the company would be able to categories the
information obtained from the company and provide the information to the
employees.

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ACCOUNTING INFORMATION SYSTEM
 The administrators and the managers of the systems can handle the information stored
in the systems of the GAAM organization very easily.
 There is a clear idea within the organization that would be helpful for the employees
in the organization as the manual procedures performed in the organization help them
to understand the complexities in the procedures of the organization.
 The data of the organization is stored securely in the system as there is no central
database and the data of the GAAM organization is safe from any type of data
breaches. The manual storage of data is very helpful for the different departments as
they store their own data in their individual registers. The backup hardcopy for the
data of the organization is always maintained in the file storage systems of the
organization.
Process inefficiencies
The major process inefficiencies of the business process of the company are listed
below:
 The main problem is that all the procedures taking place in the organization is
currently taking place manually. As a result of this, response time for the customer of
the organization and the staffs as well is relatively high. Hence, the process becomes
highly inefficient.
 In addition to this, the manual processes of the organization also hampers the
smoothness in which the tasks in the company are to be completed. The manual
procedures also hamper the competitive advantage of the organization in the industry.
 Additionally, the tasks of the business processes of the company flow in between the
different departments of the company and hence the integration of the different

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ACCOUNTING INFORMATION SYSTEM
departments of the organization become very difficult for the company. The
organization misses any set of predefined procedures that would be helpful in the
integration of the major of procedures and the departments of the organization. Due to
the absence of a standard solution for the company, the employees of the GAAM
organization are required to constantly shift in the tasks that they are currently
appointed for. This might give rise to the issues among the employees and reduce the
productivity largely.
 The issues regarding the bottlenecks situation would also hamper the GAAM
organization to a great extent. The GAAM organization currently have a situation that
have been quite reproductive for them however the need to change the current
procedure was realised by the organization after they felt the need to grow as an
organization. The organization’s current procedures lacks visibility and hence they are
unable to understand the lack in the production of the company.
 In addition to this, the issues with data duplications is also faced by the organization.
The MRO cards are and the PO are duplicated during the business procedures of the
organization as the data is required to be passed in between the different departments
of the organization and the department pass on the data with adding the required
information from their end.
Use of Information Technology
The use of information technology by the GAAM organization would be able to
automate the current business procedures. This would provide the organization with the
facility to perform all the evaluation and the analysis procedures automatically within the
business. The data storing facility would also be available to the organization with the
implementation of the information system. In addition to this, a cloud architecture is to be
followed for the central data storage system. The data redundancy factor affecting the

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ACCOUNTING INFORMATION SYSTEM
organization currently hence can be eliminated from the business and the as increasing the
overall business efficiency. The data duplicity error would also be eliminated and the
employees would be able to make updates on the existing data storage object that circulates
throughout the network of department of the company.
Business Process Re-engineering

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ACCOUNTING INFORMATION SYSTEM
Proposed Workflow Diagram
Conclusion
For conclusion, it can be said that the use of information system for the organizations
are very important. The current procedures in the organization has been described in this
report. The manual procedures have been described in this report and the hence the solutions
have been provided for the organization. The current procedures and the business re-
engineering procedures have been described in the report with the help of some illustration in
this report.

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Bibliography
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