Management Information Systems

By : Prof. Prakash M Soni

Topic No.: 6 Information Systems for Functional Areas

Financial Information System

Introduction
It provides information to persons and groups both inside and outside the firm concerning the firms financial matters Information is provided in the forms of periodic reports, special reports and result of mathematical simulations, electronic communications and advice of experts systems It supports not only management and top management but broadly applicable to those who makes better decision on daily basis Financial MISs is used to streamline reports of transaction

Features of FIS
User Friendly Interface Divisionalized Reporting Consolidated Reporting Modular Structure Automatic Interface Flexible Account Numbering Flexible Reporting Formats Installation Options Generative Security

Functions of FIS
Integration of Systems: Financial and Operational Systems from multiple sources from internet to single user terminal Easy Access: To financial and Non-Financial users through corporate intranet and internet to all set of financial data and information Availability: Instant available for analysis and usage Enable analysis of financial data along multiple dimensions- Time, Geography, Product, Plant and Customer Analyze historical and current financial activities Monitor and control the use of funds over time

Capabilities of FIS
Online / Batch Update Modular Updates: Accounts Receivables, General Ledger etc Open Item System

Queries? Email: profprakashsoni@gmail.com

Management Information Systems

By : Prof. Prakash M Soni
Multiple invoice payments Handles bill discounting Write offs Flexible ageing options Online inquiries: Customer, Open Item, G/L Account etc Limited sales analysis

Model of FIS

Subsystems of FIS
Profit/Loss and Cost Systems: Many departments within the organization are profit centers, which mean that they focus on generating profits. In most cases FIS is used to compute revenues, costs and profits. Auditing: It involves the process of analyzing the financial conditions of an organization and determining whether financial statements and reports produced are accurate or not. Internal and External Audits Uses and Management of Funds: Usage of funds internally and externally by the organization for running the entire show and aim to gain profits and generates revenues out of it.

Inputs to FIS
Payments Receipts Data from stock exchange System Inputs: Sales: Invoices, Debit Notes, Credit Notes Purchase: Bills, Debit Notes, Credit Notes Cash/Bank: Receipts, Payments Journal: Adjustment Vouchers, Inter-Division Transaction ,G/L postings

Queries? Email: profprakashsoni@gmail.com

Management Information Systems

By : Prof. Prakash M Soni Outputs of FIS
Day Books: Sales, Purchase, Cash/Bank Debit/Credit Note Register Journal as Register Customer Account Status Report Customer Ledger Age-Wise Analysis Write-Off Reports List of Forms Interest Due Reports Sales Tax, Income Tax, PT, PF Statement/Register

Advantages of FIS
Control & Oversight: Security of all transactions, numbers and figures through built-in security Accounting Benefits: Report generation system based on time frame and volume of transaction Reporting: Routine and ad-hoc reporting makes it easy to access data and increase reliability of system Executives: Timely data availability, faster reporting, decrease possibility of fraudulent and misleading information through security and control process

Queries? Email: profprakashsoni@gmail.com