EXPENDITURE CYCLE- SUPERMARKET

A.1. General Objective

The primary objective of this project is to make a system proposal for a supermarket to

improve its current expenditure transaction process through cost minimization and efficient

purchasing procedures.

A.2. Specific Objectives

1. Ensure that all goods are ordered when it reached the reorder point
2. To ensure that the payables are paid within the discount period.

Logical Scope

This project focuses on the expenditure cycle of a medium enterprisesupermarket.

Expenditure cycle starts with the realization for the need of goods followed by the ordering.

Once the goods ordered are received, those are properly inventoried and will be recorded at

the place where the transaction took place. Expenditure cycle is completed with the

payment process.

INPUT OUTPUT
RECEIVING CONFIRMATION REPORT
INVENTORY REPORT
SOURCE
Who prepares? Warehouse Manager Purpose: To determine the actual count of
Where Prepared? Warehouse themerchandise on hand and the
Input Medium :Keyboard and Mouse needto reorder. (to confirm the physical
count)
User: Manager (clerk)
Purchasing Department
Output Media: Softcopy
Frequency of Output: Monthly (up to date)
INPUT OUTPUT
RECEIVING CONFIRMATION REPORT
Payable Ledger
SOURCE
Who prepares? Warehouse Manager Purpose: To check payables that are due
Where Prepared? Warehouse and the discount terms (if any). (to update
Input Medium :Keyboard and Mouse balance not to check payable because it’s
already paid.)
User: Finance Department
Output Media: Softcopy
Frequency of Output: Every time there is a
Billing Statement receive for the
goodsordered.

Debit memos: value of the product return, not input of inventory report.

PO & PI, not input of I.R (bibili ka palang)

Input: Receiving Report (update to I.R)

: clerk/warehouse man

Masterfile: A collection of records pertaining to one of the main subjects of an information

system, such as customers, employees, products and vendors.

EXPENDITURE (MANUFACTURING)

A. Objectives

To provide adequate raw materials with good quality for production.
 To ensure that stockouts will not be experienced in the operation of the
business.
 To receive all ordered goods and verify that they are all in good condition.

B. Scope

 Logical Scope

This project focuses on the expenditure cycle of a manufacturing business. The

project team aims to improve the purchasing subsystem of the company; this includes
activities from deciding when to restock for inventory to receiving of all ordered goods.
 Inventory Record List

INPUT OUTPUT
Name:  Purchase Requisition Name:  Purchase Order
 Inventory Reorder
List
 Merchandise
Inventory Master
File
Purpose:  Represent understandable
evidence of purchase
transactions. It helps verify
the purchase of inventory
from a supplier. Especially to
Prepared by:  Inventory Clerk those supplier who are not
Department:  Inventory Dep. electronically linked to
Authorized By:  Inventory Manager buying firms. (authority to
purchase)
Used By:  Supplier, Receiving Dept.,
Purchasing Dept. and
Accounts Payable Dept.
Media:  Hardcopy for suppliers
Medium:  Keyboard  Whenever an inventory reach
Frequency:
its reorder point.

INPUT OUTPUT
Name:  Purchase Order Name:  Receiving Report
 Preformatted (includes no. of goods, does
Receiving Report not include price)
 Packing Slip* A receiving report is an
 Physical count from important record of the
warehouse merchandise that a retailer
has actually received from
a supplier because it
documents what is owed to
the supplier in terms of
payment for the goods
received or the return of
the goods, in some cases.
Purpose:  Represent understandable
evidence of purchase
transactions(evidence that
goods received). Especially to
Prepared by: those supplier who are not
Department:  Receiving Clerk electronically linked to
Authorized by:  Receiving Dep. buying firms. (quantity as
 (Not Needed) counted received of the
warehouse)
Used By:  Inventory Department and
Accounts Payable
Department
Media:  Hardcopy
Medium:  Keyboard  Whenever there is delivery
Frequency:
in the receiving dock.
A. MASTER FILES items does not frequently change.
B. Transaction files

REVENUE CYCLE (RESTAURANT)

1. Statement of the objective

General Objective
The revenue cycle encompasses both the sale of goods or services to
customers and collection of cash. This project will provide an improved system
for the accuracy and efficiency of revenue transactions. This project will help the
company carry out a smooth day to day transaction.

Specific Objective
1. To bill products and services in a timely and accurate manner.
2. To record and classify cash receipts promptly and accurately.

2. Scope

i. Logical Scope

The activities covered by our project are billing of customers and

collecting of cash.
Billing customers involves 2 tasks: invoicing and updating accounts
receivable. Billing in restaurant starts with the copy of sales order approved and
forwarded by the customer order department. The basic document created in
here is sales invoice. The sales invoice notifies customer of the amount to be paid
and where to send payment. Invoices may be sent/received in paper form or by
EDI (electronic data interchange). The accounts receivable functions reports to
the controller. This function performs 2 basic tasks: Debit customer accounts for
the amount the customer is invoiced and credit customer accounts for the
amount of customer payments. To maintain accounts receivable we use the
balance forward method. The revenue cycle will be completed when cash is
collected for the good and services sold. The cashier takes the remittances from
the customer and deposits them in banks.

INPUT OUTPUT

1. ORDER FORM (billing report) SALES ORDER SO, is an order issued by a

business or sole trader to a customer

SOURCE: PURPOSE:
 To transcription of customer’s order to a
WHO PREPARES? formal and standardized format. Keeps
record of description of product quantity and
Crew units, mode of payment place of delivery etc.
(does not need to be approved)

WHERE PREPARED? USER:

FOH (Front Of House Staff) General Manager

INPUT MEDIUM: OUTPUT MEDIA:

Automated (Cashier – Dual Screen) Softcopy (System File)

FREQUENCY OF OUTPUT:
This report is produce every transaction

INPUT OUTPUT

2. SALES ORDER STATEMENT OF BILLING AND OFFICIAL

RECEIPT

SOURCE: PURPOSE:
To keep record and to show the recent
WHO PREPARES? transaction , balance due, how much the bill
is and any interest or other fees incurred and
Cashier other key information
Official receipts allows for accurate tracking
of sales and revenue. It is an evidence of the
payment of customer
WHERE PREPARED? USER:
FOH (Front Of House Staff) Customer/General Manager

INPUT MEDIUM: OUTPUT MEDIA:

Automated (Cashier – Dual Screen) Hardcopy (billing) Softcopy (System
File)

FREQUENCY OF OUTPUT:
This report is produce every transaction

INPUT OUTPUT

3. STATEMENT OF BILLING AND OFFCIAL RECEIPT MONTHLY REVENUE REPORT

SOURCE: PURPOSE:
To show the overall summary of all sales
WHO PREPARES? transaction of the business WOTHIN
THE MONTH
Accounting Staff

WHERE PREPARED? USER:

FOH (Front Of House Staff) General Manager/Owner
 INPUT MEDIUM: OUTPUT MEDIA:
Automated (Spread sheet) Softcopy (System File)

FREQUENCY OF OUTPUT:
This report is produce daily.

NO CUSTOMER A/R / MASTERFILE (DEBIT/CREDIT CARD)

REVENUE (MANUFACTURING)

I. STATEMENT OF THE OBJECTIVE

A. General Objective
To provide an accounting information system that processes accurate
financial information on revenue cycle flow for manufacturing entities in
supporting the stewardship function and decision making of the management.

B. Specific Objectives
1. To establish a sales order processing system that ensures the flow of
information involving the transfer of products from the seller to the
buyer, including sales returns procedures.

2. To initiate an effective control on cash collections by establishing cash

receipt system on revenue transactions.

II. Scope

A. Logical Scope

The project team set the scope of project only to the extent of a subsystem of
an accounting information system – the revenue cycle. Furthermore, the project
team set the scope of the study to two major components of the revenue cycle,
namely:
(1) Sales order processing system (including sales return procedures)
(2) Cash receipts system
 INPUT OUTPUT
Name of Input: Sales order Name of output : Open Sales Orders
Report

Purpose : It lists all those sales

orders that are not
completely shipped
and billed.
Source:
Who prepares? Sales Agent User: Sales managers
Where prepared? Sales Department Output media: Hardcopy
What is the input Customer PO medium Frequency of output: Weekly UP TO DATE
medium?

INPUT OUTPUT
Name of Input: Credit Sales Invoice Name of output : Accounts Receivable
Aging Statement
Purpose : Contains data
concerning the
status of open
balances of all active
credit customers
arranging the
Source: overdue amounts by
time periods.
Who prepares? Accounts Receivable User: Management
Clerk
Where prepared? Accounting Output media: Hardcopy and Softcopy
Department
What is the input ? Frequency of output: Yearly
medium?

INPUT OUTPUT
Name of Input: Sales Invoice, Credit Name of output : Sales Analysis Report
memo (for sales (Not indicated in the
return) objectives)
Purpose : It is used for internal
reference by the
organization in
monitoring sales and
related aspects such
 as measuring profit,
Source: cost, etc.
Who prepares? Sales Agent User: Management
Where prepared? Sales Department Output media: Hardcopy and
Softcopy
What is the input ? Frequency of output: Weekly
medium?

Master file: Contain permanent data.

CONVERSION CYCLE (job order cost)

Statement of Objective General Objective The objective of this project in general is to transform from
manual to an automated system which would help the user to monitor the production process. Specific
Objective To monitor and keep track of the raw materials inventory To ensure actual costs of
production are accumulated accurately in order to provide an analysis of costs that would help the user
to determine the operating efficiency of a particular job II.

Scope 1. Logical Scope This proposed project focuses on the production process of a made-to-order
business. The initiation of system will start with the approval of the issuance of materials and will be
completed when all the costs associated in an order are taken into account.

Output (Raw Material Inv. Report)

To keep track the inventory level (beg. Bal +purchases +usage= end bal)

Job cost sheet to record actual cost of DM, overheads, direct wages.

where they happened. Not cost accounting dept.

Input: Material Issues Report & Receiving report (materials requisition)

Receiving report at warehouse, Materials clerk

Monthly (daily)

Job time sheet

GENERAL LEDGER SYSTEM

A. Statement of the Objective

 To record all accounting transactions promptly and accurately to the proper accounts.
 To maintain an equality of debit and credit balances among the accounts.
To generate reliable and timely financial reports pertaining to each accounting period

INPUT OUTPUT

Statement of Financial
Name Journal entries Name
Position

To provide Information
useful for decision-making.
Prepared by
Other Cycles/Department Purpose To measure the firm’s
ability to meet current and
non-current obligations.

Prepared from Journals Users Management and creditors

Input Medium Keyboard Output Media Softcopy and Hardcopy

Frequency of
Quarterly
Output

INPUT OUTPUT
Income Statement
Journal entries
Name Name Comparative income
statement.

To Provide Information
useful for decision-making
and to measure the
Prepared by Other Cycles/Department Purpose
performance of the firm
and its efficiency managing
assets, liabilities and equity.
 Investors and Specify
Prepared from Journals Users
Management

Input Medium Keyboard Output Media Softcopy and Hardcopy

Frequency of
Quarterly
Output

INPUT OUTPUT

Statement of Changes in
Name Journal entries Name
Equity

To Provide Information
useful for decision-making
and it serves as a
Prepared by Other Cycles/Department Purpose
benchmark for the issuance
of dividends for the
stockholders.

Management and
Prepared from Journals Users
Stockholders

Input Medium Keyboard Output Media Softcopy and Hardcopy

Frequency of
Quarterly
Output

INPUT OUTPUT

Name Journal entries Name Statement of Cash Flows

To provide information
in order to assess where
an entity’s cash is being
Prepared by Other Cycles/Department Purpose generated (Cash inflow),
and where its cash is
being spent (Cash
outflow).
 Prepared from Journals Users Management

Input Medium Keyboard Output Media Softcopy and Hardcopy

Frequency of Quarterly
Output

Significant digit code