GROUP PROJECT ASSIGNMNET:
SONG KEE STATIONERY CO.
Course: ACCT617
Group 8:
Geng Yiru (Emma)
Tran Minh Thu
Gan Kar Kiat (Ian)
16 November 2015
ACCOUNTING INFORMATION SYSTEM
Table of Contents
1.
Company background ............................................................................................ 2
2.
Revenue Cycle ....................................................................................................... 3
3.
2.1
Table of entities and activities ......................................................................... 4
2.2
Context diagram .............................................................................................. 9
2.3
Physical DFD ................................................................................................ 10
2.4
Annotated table ............................................................................................. 11
2.5
Level-0 Logical DFD .................................................................................... 15
Expenditure cycle................................................................................................. 16
3.1
4.
5.
6.
System flowchart ........................................................................................... 18
REA data modelling ............................................................................................. 22
4.1
REA diagram ................................................................................................. 22
4.2
Relational database ........................................................................................ 23
Control matrix for revenue cycle ......................................................................... 24
5.1
Control Plans: ................................................................................................ 25
5.2
Control goals: ................................................................................................ 26
5.3
How control plan achieves control goals: ..................................................... 27
Business process improvement ............................................................................ 28
6.1
Revenue cycle: .............................................................................................. 28
6.2
Expenditure cycle: ......................................................................................... 29
Page 1
ACCOUNTING INFORMATION SYSTEM
1. Company background
Song Kee Stationery was established since 1968 and has been a long time player in
the stationery supplies industry. They are known as a wholesaler and retailer of a wide
variety of stationery products, especially their own house brand, HYBIRD. Their
customers are diversity which includes private companies, bookstores, supermarket,
convenient stores as well as major groups like Popular World Bookstore and Giant
Hypermarket.
According to their mission, they would like to provide quality items to customers,
accompanied by excellent service. Song Kee Stationery is one of the main distributors
around the world for many of the brands they carry. The company’s extensive
catalogue includes the top ten ISO brands in China. Notably, they have also
developed their own house brand, HYBIRD, which has since been quickly gaining
popularity within the local and Asian markets.
Song Kee Stationery is recognized as an all-round stationery specialist. They supply
both office and home use demands, including the budget conscious. Their products
range include art and craft materials, office equipment, hobbies and games, desktop
accessories, adhesive, household, paper products, and others. They are constantly
Company
SONG KEE STATIONERY CO.
Logo
Address
Block 151 Pasir Panjang District,
Singapore
Phone - Fax
62749554 - 62740653
Website
http://www.songkee.com.sg/index.php
Pasir Panjang Road,
updating their store with new products.
Page 2
ACCOUNTING INFORMATION SYSTEM
2. Revenue Cycle
In Song Kee nationery stores which are located in central area, they serve walk-in
customers only. The shop carries all type of its products. When a customer pays for an
individual purchase, a sales transaction usually includes just one item. When a
customer pays for a group purchase, however, a signle sales transaction includes
many different items. All sales must be paid for at the time the inventories are
transferred.
They keep comprehensive information about the customers such as customer number,
customer name, contact details, customer’s top purchase to-date, and available credit
in the Customer master data. Wholesale customers receive an updated catalogue
annually and place orders over the phone or mail. All customers will have to register
with Song Kee Stationery before any sales transaction could occur. Company only
accept credit sale for wholesale. They promise to deliver the order within 4 working
days; otherwise they will give customer a 30%discount if they fail to do so
When wholesale customers call the company’s hotline, they will be prompted to press
“1” if they wish to place an order. The call will be redirected to a sales clerk. If all
the sales clerks are busy, the hotline prompts the customer to leave a contact number
and a sales clerk will contact the customer as soon as possible. After taking the order
details over the phone, the clerk first keys in the customer number into the computer
and the computer displays the customer name on the screen. It prompts an error
message if there is no matching customer number and the clerk will ask the customer
to register to company credit manager and wait for the confirm within 1 day. The
clerk verifies the customer name to ensure that the customer is legitimate. If
everything checks out, the clerk enters the customer’s order. After the order is
entered, the computer calculates the total amount of the order and compares the total
amount of the order to the customer’s available credit to ensure that the purchase does
not exceed the available credit. The computer also checks if there is enough
inventory. If there is insufficient inventory, the clerk asks if the customer is willing to
accept a back order. The clerk writes the back order in the back order log book. After
verifying the credit limit and inventory availability, the clerk enters “Yes” to the
computer’s online prompt, “Do you want to proceed?”
The computer updates the Customer master data, Sales event master data, Sales Order
master data; and prints 3 copies of the sales order. The clerk files Copy 3 based on the
date and time of the sales order. At the end of the day, the clerk mails Copy 1 to the
customer. The clerk then computes the batch total of the quantities ordered and
prepares sale invoice which will be updated in Accounts Receivable master data and
sends Copy 2 with the batch total and the invoice to the warehouse. At 8am every
morning, the warehouse storeman assembles the order based on the sales order and
signs the sales order. The signed sales order serves as the picking list. The picking
list, batch total and invoice are forwarded together with the goods to the shipping
department.
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ACCOUNTING INFORMATION SYSTEM
Once the shipping clerk receives the goods, the sales order number is keyed into the
computer, and the customer and sales order details are populated on the screen. The
shipping clerk counts and matches the goods, picking list and sales order. If there is
any discrepancy, she will inform the warehouse. She will also inform the shipping
manager if the goods are damaged. After making sure that everything is in order, the
shipping clerk selects “Shipped” from the dropdown list that is displayed on the sales
order screen and click “Submit” to update the status of the sales order from “Open” to
“Shipped”. The computer then updates the Sales order master data, Inventory master
data; and prints a packing slip, which contains information such as the customer
name, customer address, delivery address, quantity of items ordered. The packing slip
is attached to the goods. The packing slip, the sale invoice and the goods are given to
the carrier for delivery to the customer. The carrier will contact the customer to
arrange for the delivery date and time. The shipping clerk files the picking list and
batch total in numerical sequence in the “Completed Shipments” file.
After 1 day of delivering goods, Customers send cheques and remittance advices
(RA) to Song Kee Stationery in the morning. After receiving the cheques and RA, the
cash receipt clerk endorses the cheques and writes the amount paid and the cheque
number on the remittance advice. At 2 pm, the cash receipt clerk collects the batch of
cheques and RA, and sends the RA to accounts receivable (AR) clerk and the cheques
to the cashier.
The AR clerk enters the RA details in the computer by entering the customer number,
the invoice number, the amount paid and the cheque number. The computer verifies
that the invoice is open; the correct amount is being paid and updates the AR master
data. If there are discrepancies in the amount received, the AR clerk contacts the
customers immediately.
At 4pm every day, the computer automatically prints a deposit slip in the cashier
office using the receipt data captured earlier. The cashier compares the deposit slip to
the corresponding cheques and takes the deposit to the bank.
At 5pm every day, the computer automatically prints a daily cash receipt listing using
the AR data captured earlier. The AR clerk compares the RA to the list before filing
the documents in separate files.
2.1 Table of entities and activities1
Entities
Para
Activities
Customers
1
1. Place order
Sale clerk
1
2. Enters customer number
1
For wholesale only.
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ACCOUNTING INFORMATION SYSTEM
Computer
1
3. Retrieves customer records from
Customers Master Data
Computer
1
4. Displays customers data
Sale clerk
1
5.Verifies name to customers data
on display screen
Sale clerk
1
6. Enters customers order
Computer
1
7. Retrieves credit limit from
Customers Master Data
Computer
1
8. Retrieves account receivable
from AR master data
Computer
1
9. Retrieves sufficient inventory
from Inventory Master data
Computer
1
10. Calculates and verifies that the
order does not exceed available
credit amount and inventory is
sufficient
Sale clerk
1
11. Enters “Yes” to proceed
Computer
2
12. Updates Customers Master
Data, Sales event data data, Sales
order master data.
Computer
2
13. Prints 3 copies of the Sales
order
Sale clerk
2
14. Files copy 3 based on the date
and time of the sales order and
files copy 1,2 in a temporary files
Sale clerk
2
15. At the end of the day, retrieves
copy 1 and 2 of the sale order from
temporary files
Sale clerk
2
16. Mails copy 1 to the customer
Sale clerk
2
17a. Computes the batch total of
the quantities order and prepare
sale invoice
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ACCOUNTING INFORMATION SYSTEM
Sale clerk
2
17b. Update command
Computer
2
18a. Update AR MD
Sale clerk
2
18b. Sends copy 2 with the batch
total and sale invoice to the
warehouse
Warehouse storeman
2
19. Files copy 2 with the batch
total and sale invoice in temporary
file
Warehouse storeman
2
20. At 8am every morning,
retrieves copy 2 with the batch
total and sale invoice from
temporary file
Warehouse storeman
2
21. Assembles the order and signs
the sale order
Warehouse storeman
2
22. Sends the goods, picking list
(signed sale order), batch total and
sale
invoice
to
shipping
department
Shipping clerk
3
23. Keys in the sale order number
Computer
4
24. Retrieves data from Sales
order master data
Computer
4
25. Displays customers and sale
order details
Shipping clerk
4
26. Counts and matches the goods,
picking list and sales order
Shipping clerk
4
27. Select “shipped” and “submit”
command on the display screen
Computer
4
28. Updates Sales order master
data and Inventory master data
Computer
4
29. Prints packing slip
Shipping clerk
4
30. Sends packing slip, sale
invoice and goods to carrier
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ACCOUNTING INFORMATION SYSTEM
Shipping clerk
4
31. Files the picking list and batch
total in numerical sequence in the
“ Completed shipments” file
Customers
5
32. After 1 day of delivery, sends
cheques and remittance advices in
the morning
Cash receipt clerk
5
33. Endorses cheques and
annotates the RA
Cash receipt clerk
5
34. Files endorsed cheques and
annotated RA in a temporary file
Cash receipt clerk
5
35. Collects endorsed cheques and
annotated RA from a temporary
file at 2 pm
Cash receipt clerk
5
36. Sends RA to AR clerk and
endorsed cheques to cashier
Cashier
5
37. Places endorsed cheques in a
temporary file
AR clerk
5
38. Enters RA details
Computer
5
39. Retrieves AR from AR master
data
Computer
5
40. Verifies invoice is open and
correct amount paid
Computer
5
41. Updates AR master data
AR clerk
5
42. Places RA in temporary file
Computer
6
43. Retrieves AR data from AR
master data at 4pm
Computer
6
44. Prints deposit slip
Cashier
6
45. Collects endorsed cheques
from temporary file
Cashier
6
46. Compares deposit slip and
endorsed cheques
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ACCOUNTING INFORMATION SYSTEM
Cashier
6
47. Sends verified deposit slip and
cheques to the bank
Computer
7
48. Retrieves AR from AR master
data at 5pm
Computer
7
59. Prints daily cash receipt listing
AR clerk
7
50. Collects RA from temporary
file
AR clerk
7
51. Compares RA and daily cash
receipt listing
AR clerk
7
52. Files verified RA in “ Verified
RA file” and verified daily cash
receipt listing in “verified daily
cash receipt listing file”
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ACCOUNTING INFORMATION SYSTEM
2.2 Context diagram
Page 9
ACCOUNTING INFORMATION SYSTEM
2.3 Physical DFD
Page 10
ACCOUNTING INFORMATION SYSTEM
2.4 Annotated table
Entities
Para
Activities
Process
Sale clerk
1
2. Enters customer number
Computer
1
3. Retrieves customer records
from Customers Master Data
Sale clerk
1
5. Verifies name to customers
data on display screen
Sale clerk
1
6. Enters customers order
Computer
1
7. Retrieves credit limit from
Customers Master Data
Computer
1
8. Retrieves account
receivable from AR master
data
Computer
1
9. Retrieves sufficient
inventory from Inventory
Master data
Computer
1
10. Calculates and verifies
that the order does not exceed
available credit amount and
inventory is sufficient
Sale clerk
1
11. Enters “Yes” to proceed
Computer
2
12.
Updates
Customers
Master Data, Sales event data
data, Sales order master data
and AR master data.
Computer
2
13. Prints 3 copies of the 2.0 Process order
Sales order
Sale clerk
2
14. Files copy 3 based on the
date and time of the sales
order and files copy 1,2 in a
temporary files
Sale clerk
2
15. At the end of the day,
retrieves copy 1 and 2 of the
1.0 Validate and
record customers
order
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ACCOUNTING INFORMATION SYSTEM
sale order from temporary
files
Sale clerk
2
17a. Computes the batch total
of the quantities order and
prepare sale invoice
Sale clerk
2
17b. Update command
Computer
2
18a. Update AR MD
Warehouse
storeman
2
19. Files copy 2 with the
batch total and invoice in
temporary file
Warehouse
storeman
2
20. At 8am every morning,
retrieves copy 2 with the
batch total and invoice from
temporary file
Warehouse
storeman
2
21. Assembles the order and
signs the sale order
Shipping clerk
3
23. Keys in the sale order 3.0 Process
number
shipment
Computer
4
24. Retrieves data from Sales
order master data
Shipping clerk
4
26. Counts and matches the
goods, picking list and sales
order
Shipping clerk
4
27. Select “shipped” and
“submit” command on the
display screen
Computer
4
28. Updates Sales order 4.0 Update data
master data and Inventory stores
master data
Computer
4
29. Prints packing slip
Shipping clerk
4
31. Files the picking list and
batch total in numerical
sequence in the “ Completed
shipments” file
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ACCOUNTING INFORMATION SYSTEM
Cash receipt
clerk
5
33. Endorses cheques and 5.0 Endorse
annotates the RA
Cheques and
annotate RA
Cash receipt
clerk
5
34. Files endorsed cheques
and annotated RA in a
temporary file
Cash receipt
clerk
5
35. Collects endorsed cheques
and annotated RA from a
temporary file at 2 pm
Cashier
5
37. Places endorsed cheques
in a temporary file
AR clerk
5
38. Enters RA details
Computer
5
39. Retrieves AR from AR
master data
Computer
5
40. Verifies invoice is open
and correct amount paid
Computer
5
41. Updates AR master data
AR clerk
5
42. Places RA in temporary
file
Computer
6
43. Retrieves AR data from 7.0
AR master data at 4pm
deposit
Computer
6
44. Prints deposit slip
Cashier
6
45. Collects endorsed cheques
from temporary file
Cashier
6
46. Compares deposit slip and
endorsed cheques
Computer
7
48. Retrieves AR from AR 8.0
Reconcile
master data at 5pm
RA and Cash
receipt
Computer
7
49. Prints daily cash receipt
listing
AR clerk
7
50. Collects RA from
temporary file
6.0 Process AR
Verify
Page 13
ACCOUNTING INFORMATION SYSTEM
AR clerk
7
51. Compares RA and daily
cash receipt listing
AR clerk
7
52. Files verified RA in “
Verified RA file” and verified
daily cash receipt listing in
“verified daily cash receipt
listing file”
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ACCOUNTING INFORMATION SYSTEM
2.5 Level-0 Logical DFD
Page 15
ACCOUNTING INFORMATION SYSTEM
3. Expenditure cycle
The expenditure cycle begins with the Operate Manager sending a purchase request to
the Procurement Officer when he sees that the stock is running low. Immediately after
receiving the purchase request, the Procurement Officer keys in details of the
purchase request in the computer to update the purchase requisition master data. The
Procurement Officer then files the purchase request in the “Outstanding Purchase
Request File” in chronological order.
Every Monday morning, the Procurement Officer keys in command in the computer
to create purchase orders. The computer retrieves data on purchase requisitions made
in the past week and displays a dropdown list of authorized vendors from the vendor
master data. The Procurement Officer retrieves a list of preferred vendors from a
paper file and selects the preferred vendor from the dropdown list based on the details
contained in the list of preferred vendors. The Procurement Officer then clicks the
‘Submit’ command. The computer updates the purchase order master data and prints
three copies of purchase orders. The Procurement Officer collects and sends the
purchase orders to the Accounting Manager.
The Accounting Manager approves and signs the purchase orders upon receipt if the
purchase is within his authorized limits. The signed purchase orders are then sent to
the Account Payable clerk. The AP clerk sends copy #1 of the signed Purchase Order
to the Vendor, copy #2 of the signed Purchase Order copy to Operate Manager and
files copy #3 of the signed Purchase Order in chronological order.
Upon receipt of the stock in Receiving department, the vendor’s sales invoice and
signed delivery order will be sent to AP clerk. The AP clerk retrieves the signed
purchased order copy #3, matches sales invoice and singed delivery order against the
signed purchase order copy #3. The matched 3-documents package comprising of the
sales invoice, delivery order and purchase order copy #3 are filed in alphabetical
order in “invoices to be processed file”. If the documents do not match, AP clerk
rejects the delivery and informs the Procurement Officer.
At the end of the month, vendors would send monthly statements detailing the
invoices outstanding and payments receipt during the month. On receipt of the
statements, AP clerk keys in command to display list of outstanding accounts
payables for purchasing stock by retrieving data from accounts payable master data.
The AP clerk then verifies the list of outstanding accounts payable for purchasing
stock against the annotated sales invoice, delivery order, purchase order copy #3 and
the monthly statements. After checking, AP clerk sorts the sale invoices and
completes a disbursement voucher by writing each invoice number and the amount to
be paid on the disbursement voucher, and then keys in the payable details into the
computer. The computer updates the account payable master data. These matched
documents are then files in the “disbursement voucher to be paid” file.
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ACCOUNTING INFORMATION SYSTEM
Each Friday morning, the computer automatically prints cheques for all of the
disbursement entered during the week. The AP clerk immediately retrieves the
cheques from the printer, attatches the annotated disbursement voucher, and the
verified invoice before forwarding to the Accounting manager.
Every Monday morning, Accounting manager sings the cheques after reviewing the
documentation. The signed cheques and supporting documentation are returned to the
AP clerk. The clerk then sends the signed cheque to the Vendor and files the verified
sales invoice and reviewed disbursement voucher in the “Paid invoices” file in
alphabetical order.
Page 17
ACCOUNTING INFORMATION SYSTEM
3.1 System flowchart
Page 18
ACCOUNTING INFORMATION SYSTEM
operation
manager
B
signed
PO2
procurement
officer
ven
dors
computer
P1
A
preferred
vendors
select
preferred
vendors
accounting
manager
AR clerk
Document
Document
signed PO
A
update PO MD
and print 3
copies of PO
PO
MD
Document
Document
PO
B
vendor
ERNS
sign
ed
PO
3
Document
Document
PO
approve & sign
PO
submit
PO
display
Document
Document
PO
Document
Document
signed PO
receiving
departme
nt
sales
Document
invoice
&
Document
sign
delivery
order
ERNS
A
signed
PO3
match
documents
matched
sales
Document
invoice
&
Document
sign
delivery
order &
PO3
P3
B
Page 19
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