Sistem Informasi Keuangan

Pertemuan III
 Sumber Pustaka
General Ledger and
Reporting System
Ali Masjono SE. MBIT
Introduction

 This Session discusses the information processing operations involved in updating the general ledger and
preparing reports that summarize the results of an organization’s activities.
Learning Objectives

 Describe the information processing operations required to update the general ledger and to produce other
reports for internal and external users.
 Discuss methods for improving the efficiency and effectiveness of general ledger and reporting activities.
Learning Objectives

 Identify the major threats in general ledger and reporting activities, and evaluate the adequacy of various
internal control procedures for dealing with them.
 Read and explain an integrated REA data model.
Learning Objective 1

Describe the information

processing operations required
to update the general ledger
and to produce other reports
for internal and external users.
General Ledger and
Reporting Activities

 What are the four basic activities performed in the general ledger and reporting system?
 Update the general ledger
 Post adjusting entries
 Prepare financial statements
 Produce managerial reports
Update The General Ledger
(Activity 1)

 The first activity in the general ledger system is to update the general ledger.
 Updating consists of posting journal entries that originated from two sources:
 Accounting subsystems
 The treasurer
Update The General Ledger
(Activity 1)

Accounting Journal entry Update the

subsystems general ledger
Journal
entry

Treasurer Journal General

voucher ledger
Post Adjusting Entries (Activity 2)

 The second activity in the general ledger system involves posting various adjusting entries.
 Adjusting entries originate from the controller’s office, after the initial trial balance has been prepared.
 What are the five basic categories of adjusting entries?
Post Adjusting Entries (Activity 2)

 Accruals (wages payable)

 Deferrals (rent, interest, insurance)
 Estimates (depreciation)
 Revaluation (change in inventory method)
 Corrections
Post Adjusting Entries (Activity 2)

Journal Post adjusting

voucher entries

Adjusting Adjusted trial

entries balance

Prepare
Controller Financial statements financial
statements
Prepare Financial Statements (Activity 3)

 The third activity in the general ledger and reporting system involves the preparation of financial statements.
 The income statement is prepared first.
 The balance sheet is prepared next.
 The cash flows statement is prepared last.
Produce Managerial Reports (Activity 4)

 The final activity in the general ledger and reporting system involves the production of various managerial
reports.
 What are the two main categories of managerial reports?
 General ledger control reports
 Budgets
Produce Managerial Reports (Activity 4)

 What are examples of control reports?

 lists of journal vouchers by numerical sequence, account number, or date
 listing of general ledger account balances
 What are examples of budgets?
 operating budget
 capital expenditures budget
Produce Managerial Reports (Activity 4)

 Budgets and performance reports should be developed on the basis of responsibility accounting.
 What is responsibility accounting?
 It involves reporting financial results on the basis of managerial responsibilities within an organization.
Learning Objective 2

Discuss methods for improving

the efficiency and effectiveness
of general ledger and reporting
activities.
Opportunities for Using Information
Technology

 How can information technology provide opportunities for improving the efficiency and effectiveness of
the general ledger and reporting system?
 The timing of general ledger updates
 The monthly closing process
 The financial reporting
Timing of General
Ledger Update

 Modern AIS systems often use on-line processing to update the subsidiary ledgers as each transaction occurs.
 This immediate updating keeps the subsidiary ledger balances current and can improve the quality of
subsequent decisions.
Timing of General
Ledger Update

 General ledger account balances, however, traditionally have not been updated immediately.
 Today, many organizations are adopting on-line general ledger systems.
 Each application program in these systems, such as sales order entry or cash receipts, posts summary journal
entries to the general ledger at least daily.
Timing of General
Ledger Update

On-line
Monthly
accounting
closing
transaction
program
processor

General
ledger
Monthly Closing Process

 Many organizations are interested in finding ways to speed up the monthly closing process.
 One way to speed up the monthly closing process is to consolidate overlapping AIS subsystems.
 Client/server systems provide another way to improve the closing process.
Financial Reporting

 Communication technology can also be used to reduce both the time and costs of preparing and
disseminating financial statements.
 Controllers can access public financial reporting data bases, such as NAARS and EDGAR.
 Tax forms and regulations can be accessed from the IRS on the Internet.
Financial Reporting

 Spreadsheets and graphics packages can improve the financial reporting process by facilitating the creation
of graphs to highlight key trends.
 Data warehouses, which contain both current and historical data, can provide additional support for strategic
decision making.
 On-line analytical processing tools provide one way to access the data warehouses.
Financial Reporting

 On-line analytical processing (OLAP) tools provide one way to access the information stored in a data
warehouse.
 Data mining is another way to access the information stored in a data warehouse.
 It involves the use of sophisticated statistical analysis, including artificial intelligence techniques.
Learning Objective 3

Identify the major threats in

general ledger and reporting
activities, and evaluate the
adequacy of various internal
control procedures for dealing
with them.
Control Objectives,
Threats, and Procedures

 What are the control objectives in the general ledger and reporting system?
 Updates to the general ledger are properly authorized.
 Recorded general ledger transactions are valid.
 Valid, authorized general ledger transactions are recorded.
Control Objectives,
Threats, and Procedures

 General ledger transactions are accurately recorded.

 General ledger data are safeguarded from loss or theft.
 General ledger system activities are performed efficiently and effectively.
Control Objectives,
Threats, and Procedures

 What are some threats?

 errors in updating the general ledger
 inaccurate/incomplete journal entries
 inaccurate/incomplete posting of journal entries
 unauthorized access to the general ledger
 loss or destruction of general ledger data
Control Objectives,
Threats, and Procedures

 What are some exposures?

 inaccurate records and reports, resulting in bad decisions based on erroneous information
 leak of confidential data
 corruption of general ledger
 cover-up of theft
 loss of data
 loss of assets
Control Objectives,
Threats, and Procedures

 What are some control procedures?

 input, edit, and processing controls
 reconciliations and control reports
 access controls
 adequate audit trail
 proper backup procedures
 disaster recovery plan
Learning Objective 4

Read and explain an integrated

REA data model.
Integrated Data Model

 An integrated enterprise-wide data model represents a merging of separate data models.

 This merging primarily involves linking each resource with the events that increase and decrease that
resource.
Integrated Data Model

Cash Cash
receipts disbursements

(1, 1) (1, 1)

(1, N) (1, N)
Cash
Integrated Data Model
(0, N)
Cash (1, 1)
(1, N) Issue
(0, N) (0, N)
(0, N) debt
(0, N)

(1, 1) (1, 1) (1, 1) (1, 1)

(1, N)

Pay Issue Dividend Debt

employees stock payment payment
Benefits of an Integrated Data Model

 What are some benefits of an integrated data model?

 improved support for decision making
 integration of financial and nonfinancial information
 enables exploitation of the virtual value chain
Benefits of an Integrated Data Model

 What are the three basic activities of the virtual value chain?
 Gathering information
 Synthesizing, organizing
 Distributing the information to customers
Benefits of an Integrated Data Model

 Development of a virtual value chain occurs in three stages.

 What are these stages?
 Visibility
 Mirroring
 Building new customer relationships
 Voucher
A written authorization prepared for every financial transaction, or for
every transaction that meets defined requirements.
A journal voucher is an integral part of the audit trail, and carries (1) a
serial number, (2) transaction date, (3) transaction amount, (4) ledger
 account(s) affected, (5) reference(s) to documentary evidence (such as 
invoices or receipts) supporting the entry, (6) brief description of the
transaction, and the (7) signature(s) or initials of one or more 
authorized signatories. A journal is, in effect, a collection of financial 
data culled from journal vouchers

Read more: 
http://www.businessdictionary.com/definition/journal-voucher.html#ixzz
419GdSXxy
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