Question

Describe any three program modules common to an accounting system software package.

Answer 1

Accounting softwares are a type of application software that helps in recording and processing accounting transaction within functional modules like acccounts payable,accounts receivable,generalledger,payroll, journal and trial balance ect. It is an accounting information system. Accountin software can be accessed from anywhere at any time with any device having internet connection. Various modules are composed to accounting softwaress. Every section are dealing with different area of accounting. There are core modules and non core modules. Core modules includes accounts receivables, accounts payables, general ledger, billing,stock/inventory, purchase order, sales order,book keeping ect. Non core module includes debt collection, electronic payment, expense, reports, reconciliation, drill down, journals, departmental accounting ect.Therse are the three program modules common to accounting system software

ACCOUNTS RECEIVABLES MODULE

Accounts receivables is the proceeds or payments which the company will be rceived fromits customers who have purchased the goods and service as credits. It is treated as current asset in balancesheeet. Account receivable modules consist of program to handle setup, invoice, transaction, service charge, period ending and aging.

Advantages

• used to process customer invoice and payments
• it helps to receive deposits and cash in advance , and later apply them into invoice
• it also helps to process debit and credit memos as wellas an account receivable adjustments
• provide automatic posting of general ledger along with a detailed long of all accounts receivables transaction
• helps in tracking bad checks
• helps in calculating and maintaining service charge
• The master files contain customer information, including name, address, and phone number

ACCOUNTS PAYABLE MODULE

When a company purchases goods on credit which needs to be paid back in a short period of time, it is known as Accounts Payable. It is treated as a liability and comes under the head 'current liabilities.The Accounts Payable (AP) Module consists of the programs to handle setup, vouchers, invoices, check printing, check maintenance, and 1099 processing.

Advantages

• The module is used to process vendor invoices and payments to vendors, including a three-way match with purchase receipts.
• It provides the ability to void payments and reverse transactions,
• helps in posting transactions to multiple general ledger accounts
• This module has the ability to print computer-generated checks to vendors.
• The accounts payable master files contain vendor information, including name, address and phone number.

PAYROLL MODULE

The Payroll module manages the processing of employee compensation and the generation of various analyses and documents. This is where files for accountancy, banks and external organizations are generated. The module processes both amounts to be received or paid by employees and interim amounts needed for analyses and reporting purposes. The module allows provisions to be made for future expenses. Calculations input is the data from plan rates from the Compensation module.

Advantages

• helps in automating the entire cycle of recurring actions related to the administration of the process of employee compensation calculation.
• Ensures the flexibility of the calculations.
• Facilitates the daily actions for the verification of the generated results and the calculated amounts.
• Automates the processes for submission of analytical information to various management levels in the organization and to external institutions.
• Stored history data supports the HR department when performing checks or making changes for past or future periods.
• Automated integration with various financial systemshelps in transfering personnel related data like worked time, absences, compensation costs, social insurance contributions, etc., grouped by cost centers.
• Through the Pay Slips Self Service all employees in the organization are directly involved in the process of payroll management.