Accounting Cycle Description Ã¯Â¿Â½ PAGE \* MERGEFORMAT Ã¯Â¿Â½7Ã¯Â¿Â½
Accounting Cycle Description Paper
Riordan Manufacturing is an international plastic manufacture who operates four separate facilities. These sites are located in California, Georgia, Michigan, and China. The accounting cycles are performed at each individual facility. Once the accounting tasks are completed they are sent to the corporate offices in California for consolidation. Some of these accounting cycles include general ledger, accounts payable, accounts receivable, order entry, procurement, sales and purchasing history, invoice and shipping, payroll, financial reporting, EDI*, bar code reading, and EDSS. The accounting cycles can be studied under the balance sheets, income statements, budges, economic forecasts, and communications.
Georgia and Michigan are the two locations that have been recently acquired by Riordan. The current finance and accounting (F & A) used at these two sites aren't compatible for consolidation at the corporate offices in California. This is causing server delays and issues within the accounts receivable cycle.
The current issue with the accounts receivable system is that neither Michigan nor Georgia has a software program compatible with the software used at the corporate offices in California. Michigan had purchased their software application from a vendor who is no longer in business. Georgia purchased software completely different from the application Michigan purchased. Neither of software can work cohesively together. This is big trouble for the accounts receivable department because they are unable to consolidate successfully any information that can display any compatibility between the companies. Due to this irregularity financial and accounting departments are receiving information via data files, hard copy reports that must be re-entered, other files that must be converted to be read to correct account codes. This current situation is evident to both Riordan's vendors and customers. It's affecting the invoicing and payments. The company must find a...