The conversion cycle operates via the data received from the revenue cycle, marketing system, expenditure cycle and general ledger, and financial reporting system. From the marketing system, sales forecast data is needed for planning the production. Revenue cycle sends the sales orders data that give the information about what to produce. The raw material needed for the production is demanded from the expenditure cycle. Also for the payroll of the employees to take part in production, labor data is sent to expenditure cycle, specifically to payroll processing system. During the production, raw material inventories, work-in-progress inventories, and finished goods inventories are updated through the general ledger and financial reporting system.