Assignment on What is Accounting Information System?

ACCOUNTING INFORMATION SYSTEM

Table of Contents
Part 1: Project plan.................................................................................................................................3
1.1 Group Member Responsibilities.............................................................................................3
Project goals and objectives..........................................................................................................3
Project Plan...................................................................................................................................4
Project Control..............................................................................................................................4
1.2 Executive Summary................................................................................................................6
Part 2: System Documentation and Analysis..........................................................................................7
2.1 Organization/Industry Description..........................................................................................7
2.2 Purpose and key features of each relevant part of the AIS as designed..................................9
How the proposed AIS sub-systems will provide data for managerial decision-making...........12
Key features of the chosen AIS software....................................................................................13
Points of similarity/contrast between each relevant part of the designed AIS System...............14
Documentation............................................................................................................................14
Part Three: Internal Controls Analysis and Documentation.................................................................15
Partial Control Matrix.................................................................................................................15
Control Matrix Explanation........................................................................................................16
Control Analysis..........................................................................................................................16
Managerial Recommendations for each sub-system under review.............................................17
References............................................................................................................................................18

Part 1: Project plan
This project is concerned with the design and analysis of an Accounting Information System (AIS)
specifically about Here4Beer Brewing Company, a craft brewing company based in Darwin, whose
objectives is to expand through the introduction of new beer brands, successfully market these, and
improve its financial performance through increased profits and revenues ($ 1900, 000 in sales) from
an initial investment of $ 440,000. This will be achieved through establishing strong connections
with distributors, maintenance of tight controls on production, and ensuring high quality products.
This paper describes how the project will be managed, documents and analyzes the proposed AIS
system and its subsystems, and also evaluates how internal controls will be achieved, before
providing recommendations
1.1 Group Member Responsibilities
The project was undertaken using principles and processes of project management in order to ensure
the project objectives were clearly defined, roles assigned, and resources and deadlines managed
effectively. Successful projects are the outcome of diligent planning and collaboration by the project
team members (Harvard Business Review, 2016). The project is undertaken by the following
persons;
1 - Shipping system, group leader, WBS
2 - Sales and Purchase systems, Gantt chart
3 -Receiving systems, control matrix
[x] Will act as the team leader.
The traditional waterfall approach with agile methods (Davis, 2013) will form the framework for
project execution.
Project goals and objectives
The objective of the project is to design, analyze, make comparisons with existing software systems,
and provide recommendations on how the designed system for AIS and its sub systems that include
the sales, receiving, purchase, and shipping systems for Here4Beer Craft breweries will be controlled
and monitored internally.
Project Plan
The project will be executed through the main phases of project initiation, planning and definition,
launching/ execution, performance and control, and finally, closure (Ray, 2019). The tasks,
schedules, dependencies, as well and resources as roles and responsibilities are shown in the attached
chart.

Project Control
The project will be controlled using project management tools that include planning and scheduling
as shown in Fig 1 above, effective risk management where risks are identified, classified, monitored,
and controlled; the project will also be controlled though effective and accurate cost estimation and
their management and documentation to control changes (scope control document) (Kshama, 2019).
The project baseline will also be used for controlling the project and reporting progress every week
and during frequent meetings (Rozenes, Vitner and Spraggett, 2006). Every team member must
check their mail five times daily for any communication and be present during meetings (three to be
held per week). The progress will be monitored using a dashboard and against the project schedule
baseline as depicted in the WBS (Illustration 1) and the Gantt chart (Illustration 2). All projects are
subject to conflicts and a win-win approach to conflict resolution with arbitration will be used for
resolving the conflicts (Heldman and Mangano, 2009).
Closure
The team will conduct a review and document achievements and lessons learned, and then submit a
final project report to the client and ensure acceptance.
WBS
Illustration 1: WBS-source-author
Gantt

Illustration 2: Gantt chart- source- author

1.2 Executive Summary
This project was about creating AIS for Here4Beers; the project was executed using a waterfall
project management plan with agile methods. The proposed subsystems for the AIS include a sales
system, a purchasing system, a shipping system, and a receiving system. The chosen software for the
sales and purchasing is SAGE 50 Cloud, while the chosen software’s for shipping and receiving is
WareLookTM . Security controls are implemented to prevent unauthorized access and other data
risks, including malware attacks through restricted access, authentication requirements to make
certain changes such as client invoices, anti-malware software, and data and storage device
encryption.

Part 2: System Documentation and Analysis
2.1 Organization/Industry Description
Here4Beer is a Craft Beer brewing company based out of Darwin; the form specializes in high
quality hand crafted beers, with its main brands being Pilsner, Red Ale, and German Marzen-styled
lager. The location of the brewery, in Darwin, the Northern Territory's Capital is a bee hive of craft
brewing and continues to experience tremendous growth. In general, Australia continues to see
continued growth on boutique breweries on the back of a wave of rising popularity of craft beer as
beer drinkers move away from traditional corporate brands. More beer drinkers prefer different craft
beers with new and unique tastes and flavors (Diss, 2018). In Darwin, there are just a few craft
brewers; Alice Springs Brewing Company, Beaver Brewery, One Mile Brewery, and Six tanks
Brewing Co (Craft beer reviewer, 2019). The number of Craft Beer Brewers in Darwin are few,
meaning there is still little, but appreciable competition in the sector, apart from the traditional
corporate beer brands. The competition is still not much, but the general trend is that the sub sector
(craft beer brewing) is fast growing and the near future is likely to see many new entrants, and
therefore, new competitors in the sub sector. The volumes produced by the Craft Brewers in Darwin
are as at present not massive; beaver Brewery, for instance, churns out 600 liters of craft beer weekly
in summer and this will continue being the case until winter when the season peaks for raft beers in
Darwin and so production can rise (Sahli, 2019).
Reporting structure
This will be a matrix organizational structure to undertake research and develop and analyze the AIS
and its subsystems for Here4Beer as shown in Figure 1 below;
Figure 1:
Reporting framework- source- author

2.2 Purpose and key features of each relevant part of the AIS as designed
The AIS design is as shown in Figure 2 below with the main sub systems
Sales and Purchasing Subsystem
The Sales and purchasing system will enable Here4Beer users to manage sales orders from customers
effectively as well as purchase orders to suppliers. The sales orders are an ‘inward’ transaction,
meaning that it originates from clients and require action (delivery) from here4Beer. The purchase
orders are an ‘outward’ transaction meaning that they originate from Here4Beer to suppliers for their
action (such as delivering raw materials to Here4Beer). The Sales and Purchase subsystem manages
the sales and purchasing orders and their associated functionalities that include supplier and customer
management (Sousa and Oz, 2014). The system gathers additional items or actions added or
associated with the customer, including their addresses, purchase history, payment history, and
discounts among others. The same applies to the purchasing system that has default products or
services associated with each supplier and any orders made automatically assigns the products or
services to the supplier (ProConcept, 2019). Here4Beer will therefore always invoice for all products
including exceptional services provided to customers. The system captures further important
information associated with customers, including price management, customer returns, sales
representatives, time, and estimates and costing that help in product cost preparation. The purchasing
component handles goods receiving and information such as products returned to suppliers,

quantities, and incorporates forward inventory planning to enable better inventory management and
track products (Conrad and Poole, 2012). Here4Beer intends to use $ 440,000 for expansion and raise
its revenues to $ 1.9 million, rising to $ 2.7 million in three years. These goals are best tracked using
a well-designed sales and purchase system that will also help in tracking performance periodically so
adjustments can be made to meet the company financial objective. The sales and purchase system is
the single most important component if the AIS for Here 4Beer because helps the company
understand its financial position at any given time and generates information (reports) that
management uses to make decisions, for instance, which brands are selling the most in what periods
and to what markets. Using this information, the company can then decide which products to focus
more resources on; this is absolutely crucial since resources are always limited and must be put to the
most productive use. The sales and purchase system is also important because it helps fulfill legal
obligations such as taxes; taxes are based on gross incomes or net incomes and may be adjusted
depending on other financial and legal aspects. The firm must also withhold taxes from employees
and remit them to the relevant authorities; all these information is held within the sales and purchase
system in an accurate and easily accessible manner. The sales and purchase system also provide
management with feedback; a company must make more than it spends to remain solvent and liquid
(for healthy operations). The sales and purchase system will also provide financial statements by
synthesizing several tiny bits of information and aggregating them into comprehensive financial
statements to provide a big picture of the organization (Gartenstein, 2018). The system will include
details on suppliers and what quantities they order, the relevant amounts due/ paid, how regularly
they order, their locations and all other information aggregated together.
Shipping and Receiving Subsystem
This subsystem is responsible for managing inventory within the AIS and ensures there is up to date
information on inventory, product prices, and item situations, including tracking in real-time. When
products/ services are ordered from suppliers, this is captured in the system and can be monitored to
help with inventory planning and enable the inventory managers to plan for receiving goods and
services and this can be done in real time. Because it captures stock data, users can view stocks of a
wide range of items, from raw materials, materials in process, and finished products as well as
shipped and received products. When products are purchased from suppliers or goods ordered, some
may be rejected and returned (to supplier or returned by customer to Here4Beer). The Shipping and
warehousing subsystem captures and updates this information and enables management to view this
information in near-real-time. The system provides notifications and alerts, for instance on goods on
the way, returned items, enhances the management of warehouses, enables real-time tracking for
goods by clients and Here4Beer, enables multi-channel management, product identification, and

provides reports and analytics (Bodnar, 2014). The system integrates with physical bar-coding
readers for automatic receiving of items and marking products that have left the premises.
How the system addresses the main issues specific to e-business systems:
Single view of entire company performance
The business world, thanks to technology, is moving faster into e-business systems where
technologies and tools are used in conducting business online. The Sales and Purchasing Subsystem
will enable management to access and see the financial position of the company from an online
portal from any location. Many clients make orders online and this can be expedited through the use
of FAS with online presence. Invoices, sales receipts, reports, and reminders can be sent directly to
clients (distributors) from the Sales and Purchasing Subsystem through the internet. It ensures fast
access to information by managers and marketing and forecasting teams; production must be planned
based on the market and demand; the Sales and Purchasing Subsystem shows historical trends that
provide useful information for making sales forecasts and market preferences (products), information
which is then sent to production and procurement to ensure efficiency, timely availability of
inventory, and help the organization achieve its financial and business objectives.
Accuracy
E-Commerce requires accuracy, in order taking, pricing, and other details, including getting the right
clients ‘addresses. The proposed AIS and its sub-systems will ensure distributors’ details can be
captured accurately and safely and clients can place orders online, with accurate order filling.
Speed, efficiency, and scalability
Efficiency, speed, and scalability are critically essential attributes of any E-commerce venture.
People that engage in any online shopping are accustomed to quick experiences and are generally
impatient. The AIS system will provide clients such as distributors and retailers a one stop portal
where they can log in through a web portal, have their information captured, and place an order or
issue an alert for stock replenishment. As such, the AIS will not only ensure efficiency and speed but
customer satisfaction as well (Broman, 2018).
Marketing support
The AIS will enable the sales and marketing staff at Here4Beer better understand their clients; what
products they order, how frequently, and more importantly, the volumes they order. This is important
or the marketing and sales staff for purposes of demand forecasting; information that is in turn useful
for the production control system to ensure efficiency and to meet client needs
Inventory management
The AIS will capture data on sales, client orders, order forecast, and inventory, including raw
materials inventory; this is important in ensuring efficiency (Just-in-time) production and to further
increase customer satisfaction while maximizing profits for Here4Beer

How the proposed AIS sub-systems will provide data for managerial decision-making
The sales and purchases system will capture data on sales, expenditure, and products as well as give
related information such as on customers and suppliers and their histories; these are stored within the
system and are manipulated to generate reports that summarize various sales and purchase data. This
can be sales reports, sales by a given period, sales by product, and sales by client. Other reports that
can be generated include requisitioned items, accounts payables and their due dates, assets, available
inventory, and costs of raw materials. From these, managers can make decisions such as the products
to allocate more resources, profit and loss, amounts due as commissions to the sales teams,
performance of the sales teams, and periods of peak and low demand. The managers will then use
such information to plan production, payments, recovery of pending invoices, and understand the
market in terms of the most popular products in terms of sales volumes (Ovaska, 2012). In this era of
managerial accounting, the FAS will enable fast and accurate decision making by management for
positive results that will aid Here4Beer achieve its strategic and financial objectives.
The receiving and shipping subsystem will provide up to date information on inventory, stock levels,
and locations of items being expected (purchase orders) as well as those sent to clients. Customers
can also log in to the system using provided authentication methods. The management will then
know products that need reordering, what is in the warehouse, and use such information for planning
purposes, including production planning. It will also enable optimal resource allocation and
utilization, and be used to monitor performance in the short, medium, and long term to gauge
whether decisions are helping the company achieve its strategic objectives (Nikolić, Vesić and
Gavrilović, 2019).
Key features of the chosen AIS software
FAS- SAGE 50 Cloud- Sales and Purchasing
This is desktop financial accounting software for small and medium businesses but can be scaled to
be used in accounting in large businesses. It is flexible enough such that even non -accountants can
use it and goes beyond just financial accounting; it includes essential business operations. It has
additional modules for managing inventory, financial reporting and has dashboards that ca be
customized for fast access to important information (Sage, 2019). Invoicing possible through e-mail,
bills can be paid online, has credit card processing features, job management, useful for managing
fixed assets, has a vendor management center, project management features, a center for customer
management, services and inventory management module, several reports that can be customized,
terminal services, cloud applications, and has multi-user capabilities (Krause, 2019). Budgeting and
forecasting can be done through the software as well as receipt management and tax management.
The software requires a desktop with at least 2 GHz processor (2.4 GHz for multi users), 2 GB RAM

(4 GB for multi users), a LAN network (for network connectivity), and a monitor with 1280 x 800
screen resolution (pixels). It can be installed on a server like the Dell Power Edge T440 Server ($
1219). The desktops to be used are Dell Inspiron 24 5000 All-in-One desktops ($ 699). Software
environments include Widows 7, 8 and 10; however, it has no MAC or Linux support. Internet
Explorer 9.0, 10, or 11 and may require MS Excel, MS Outlook, or MS Word, so MS Office is
required (2010)
WareLookTM-Receiving and Shipping
WareLookTM is a software system with cloud capabilities that enables better inventory management-
inventory can be viewed online. Users can view stocks and other raw materials and see items on
hand, the status of a given item, selling price, including its exact location in the warehouse.
Customers and the company can track shipping details and location using the system. It also enables
additional information on items to be viewed such as weight, barcode, and their weights and allows
faster searching. It can seamlessly be integrated with SAGE 50cloud as well (MHLogic Inc., 2019).
Warelook requires a processor with minimum 2 GHz frequency, at least 2 GB RAM, a monitor with
1024 x 768 or higher, minimum 20 GB hard disk space, and internet connection at 4 MBPs. Requires
Windows 7 or higher.
Points of similarity/contrast between each relevant part of the designed AIS System
The SAGE 50 Cloud has inventory management feature, same as WareLook (purchases and
reporting). They all have features for job and inventory management, and services management
features, along with reporting features that can be customized. They all have cloud and scalability
features as well and Warelook can easily integrate with SAGE 50 cloud. However, there are some
differences; SAGE comes with financial accounting features that even a novice can use. It can be
used for managing fixed assets and has advanced project management features. SAGE also offers
features for gaining insights and has over 100 reports that can be customized along with a robust
customer management center, while Warelook is principally for managing inventory (shipping,
tracking, and receiving).
Documentation
The data flow diagrams were developed for the AIS incorporating all four subsystems (Figures 3 to
5)
Here4Beer AIS Data Flow Diagrams
Sales and purchasing subsystem

Figure 3
Figure 4

Figure 5
In the sales and purchasing system, the user management system accepts requests from the user such
as a the customer and accepts an input from the user, of which request can either for buying a beer
(so Here 4 beer receives a sell beer request, or to make a raw material purchase where Here 4 Beer
makes a raw material purchase). The personal information of users is either registered or updated
when users access the system. When this request is made, the user then chooses the product from the
products database and these are updated in the cart. After confirmation, a purchase order is generated
or a sales order and this is managed by the sales and purchases database management system. the
sales or purchase information is updated to the supplier r database and then actions are taken based
on whether a purchase or a sale is made. For sales, the system checks the credit rating of customers
and after verification, the credit details are verified and Here4Beer accounts department raises an
invoice; This is based on the assumption that the required products are available, otherwise the order
by the customer can be rejected if products are not available or due to poor credit history if credit is
requested.
Shipping and Receiving System
Shown in figures 6 and 7

Figure 6

Figure 7
For the warehousing and receiving system, once an order is confirmed based on invoice (for outward
delivery to clients) the delivery is checked against the raised invoice and the goods to be shipped
placed in the delivery dock after confirmation. Alternatively, if the goods are being received from
suppliers, the goods are checked against the delivery (verified with invoice). The supplier sends
goods delivery note accompanying the goods and goods are received at the receiving section. The
delivery note is matched to the electronically generated purchase orders and after verification; the
goods are taken to the receiving area and accepted into stock through the system. Before being
tagged with bar codes and taken into storage in the warehouse. For goods to be delivered, they are
received and stored in the delivery area and then the delivery schedule versus available delivery
modes checked and verified. Transportation is then availed to match the shipping schedule and
goods loaded and dispatched to the customer/ a notice is sent to client of goods dispatch and at every
step, the system notifies the customer of the location of the goods for purposes of tacking. The goods
being delivered inwards can also be tracked depending on the supplier and the systems they have in
place. The system is designed for onward integration, for instance, it can be integrated with the
supplier inventory management system and be backwards integrated with customer inventory
management systems that customers can also have orders laced automatically once their system’s’
replenishment levels are reached.

Part Three: Internal Controls Analysis and Documentation
Partial Control Matrix
SAGE 50 Cloud and WareLookTM Controls
Endpoint
policy
manager
Web
filter
Access
Control
Policy
E-mail
encryption
Remote
access
Firewalls
Segmenting
data center
Intrusion
detection
Unauthorized
access
Rogue
device
detection
Malware
Data transfer
(illegal)
Data
modification
Control Matrix Explanation
End point policy manager will ensure only authorized persons can access certain data using
passwords and other access credentials. A web filter will ensure no malware attacks the system, same
as the firewall. E-mail encryption will ensure safe online invoicing while remote access will enable
authorized persons to monitor activity (Olzak, 2019). These will be applied to all subsystems
Control Analysis
The polices will ensure that only a certain group of employees can access certain information; for
instance, sales and marketing cannot alter or modify product prices; only production engineers and
staff can modify raw material quantities. This is achieved through an end point policy manager while
access control policies restrict what users can be able to view. Staff, for instance, cannot view HR

information or remuneration. Firewalls will prevent unauthorized access such as by malware and
working with remote access; ensure only authenticated users with access rights can remotely access
the system. E-mail encryption ensures safety of data in transit.
There are missing controls on who can update product information as well as the kind of users that
can access the system; given that new users can register, it is not possible to control the possible
users of the system, which creates an added security risk, malicious persons can also register and try
to abuse or intrude the system as registered members. User logs also missing in some cases such as
when verifying products against the sales or purchase orders.
Managerial Recommendations for each sub-system under review
SAGE 50Cloud
Apart from its impressive array of features, the sales and purchase subsystem has cloud capabilities,
meaning it can be installed and used in the cloud to act as backup for all data and information and
ensure business process continuity I case of a disaster at the local servers. It ca be integrated with
other software systems, including productivity software such as MS Word. The software can be
scaled up as the needs of the company increase, including an increase in company size and
operations with more users added.
WareLookTM
Can also be deployed in a cloud platform to provide backup and business process continuity as well
as be integrated with other software systems. It can be integrated with the SAGE 50 cloud and has
unlimited opportunities for scaling.

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