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Business Functions and Business Processes
(the amount owed to the company) is too high and hold new orders until the customer’s
13
balance is lowered. If Accounting and Finance is slow to record sales, the accounts
receivable balances will be inaccurate, and Marketing and Sales might approve credit for
customers who have already exceeded their credit limits and who might never pay off
their accounts. If Accounting and Finance does not record customers’ payments promptly,
the company could deny credit to customers who actually owe less than their credit limit,
potentially damaging the company’s relationship with those customers.
To summarize, inputs for Accounting and Finance could include the following:
• Payments from customers
• Accounts receivable data
• Accounts payable data
• Sales data
• Production and inventory data
• Payroll and expense data
Outputs for Accounting and Finance could include the following:

• Payments to suppliers
• Financial reports
• Customer credit data

Human Resources
Like the other functional areas, Human Resources (HR) needs information from the other
departments to efficiently complete its business activities, as shown in Figure 1-7.

Hiring needs and
personnel information A/F

Payroll and
benefit expense data;
legal requirements and
job information
Legal requirements
and job information HR Legal requirements
and job information

Hiring needs
Hiring needs
and personnel
and personnel
information
information M/S
SCM
Source Line: Course Technology/Cengage Learning.
FIGURE 1-7 The Human Resources functional area exchanges data with the Accounting and
Finance, Marketing and Sales, and Supply Chain Management functional areas

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