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Chapter 1
• Resource expenditure data
12
• Production and inventory reports
• Hiring information
Accounting and Finance
Accounting and Finance (A/F) needs information from all the other functional areas to
complete its tasks accurately, as shown in Figure 1-6.

Legal requirements
and job information;
payroll and benefit
expense data
Payments
Customer
HR
Invoices and
credit memos Hiring needs and
personnel information

Sales data and
manufacturing A/F Cost/profit
cost analysis
analysis

Production plans;
materials and Sales order
inventory data data
M/S
SCM
Source Line: Course Technology/Cengage Learning.

FIGURE 1-6 The Accounting and Finance functional area exchanges data with customers and with
the Human Resources, Marketing and Sales, and Supply Chain Management
functional areas

Accounting and Finance personnel record the company’s transactions in the books of
account (which often are computerized records). For example, they record accounts
receivable when sales are made and cash receipts when customers send in payments. In
addition, they record accounts payable when raw materials are purchased and cash
outflows when they pay for materials. Finally, Accounting and Finance personnel
summarize the transaction data to prepare reports about the company’s financial position
and profitability.
Employees in other functional areas provide data to Accounting and Finance:
Marketing and Sales provides sales data, Supply Chain Management provides production
and inventory data, and Human Resources provides payroll and benefit expense data. The
accuracy and timeliness of Accounting and Finance data depend on the accuracy and
timeliness of the data from the other functional areas.
Marketing and Sales personnel require data from Accounting and Finance to evaluate
customer credit. If an order will cause a customer to exceed his or her credit limit,
Marketing and Sales should see that the customer’s accounts receivable balance

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