Page 305 - Accounting Information Systems

276 PART II Transaction Cycles and Business Processes

FIG U R E
6-8 MANUAL PAYROLL SYSTEM

Production Cost Accounting Payroll

Time Time
Cards Cards

Job
Tickets
Personnel
Job
Tickets
Personnel
WIP Post to Action
Ledger WIP

Employee
Records
Labor Dist
Summary
Reconcile,
Prepare Paychecks
and Post to Employee
Records
A
Personnel
Action
Time Employee
Tickets Paycheck

Pay Reg
Payroll
Register
Paymaster

4. AP receives payroll summary information from the payroll department and authorizes the cash
disbursements department to deposit a single check, in the amount of the total payroll, in a bank
imprest account on which the payroll is drawn.
5. The general ledger department reconciles summary information from cost accounting and AP.
Control accounts are updated to reflect these transactions.