School of Business

Independent university, Bangladesh

Independent university, Bangladesh

Section-01

Course Code- ACN 441

Course Title: Accounting Information System

Submitted by:

Hasan Al Shahriar 1230095Nasrin Sultana 1221034Joly Akter 1220846Noor Mohammad 1221458Sarnali Zaman Shapna 1220981Kaium Sarkar 1210847

Topic: Revenue and Expenditure Cycle Analysis

Submitted to: MD Abu Bakar Emran Salahuddin

Department of School of Business

Summer- 2015

Submission date: 12th July, 2015

Letter of transmittal

Date: 12 July, 2015

MD Abu Bakar Emran Salahuddin

Senior Lecturer

School of Business

Independent University, Bangladesh

Subject: Submission of Transmittal.

Dear Sir,

It is a great pleasure for us to submitting the report to you entitled by “Revenue and

Expenditure Cycle Analysis” of Kazi Stationary World. As the fulfillment of the partial

requirement of the whole program, this report is done to find Revenue and expenditure cycle

of the stationary. We are working on Kazi Stationary World.

Here in revenue cycle we try to find out the sales order procedures, Receiving order, check

credit, ship goods, bill customer and also try to find out the sales return procedures. In

Expenditure cycle we try to find out that how to they monitor their inventory record, purchase

order, receiving goods, update inventory etc.

It has been a great pleasure for us to work on this report as it provides many opportunities to

gain many of knowledge.

We are grateful to you for your continuous guidance in preparing this project. Finally, I also

believe that this report will satisfy you. If you need any further clarification interpreting our

analysis please feel free to ask.

Yours sincerely,

Name ID

Hasan Al Shahriar 1230095 Noor Mohammad 1221458

Nasrin Sultana 1221034 Sarnali Zaman Shapna 1220981

Joly Akher 1220846 Kaium Sarkar 1210847

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Table of Contents

Topic Page No.

Executive Summary 5

Introduction 6

Organization Background 6

Revenue Cycle 7

Expenditure Cycle 9

Current Software Using By Kazi Stationary World

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Proposal for implementing “TURBO CASH” to Kazi stationary world

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Costing and benefits for having this software:

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Reference: 19

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List of Figures

Figure List Page No.

Figure 1: Sales Order Form 7

Figure 2: Invoice Memo 8

Figure 3: Use as a Return Note 9

Figure 4: Purchase Order Form 10

Figure 5: Invoice Created By the Supplier 11

Figure 6: General Ledger 12

Figure 7: Client List Module 13

Figure 8: Invoice Creating Module 14

Figure 9: Product List Module 15

Figure 10: Sales Module 16

Executive Summary

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Kazi Stationary World Located in Narsingdi. They are the distributor of Steadler Stationary

product in Narsingdi District. Their supplier name is Radiant Export and Import Enterprise.

In this report we try to find out Revenue and Expenditure Cycle of Kazi stationary world. In

revenue cycle they use mixing of manual and automated system for keeping and processing

the information. They use inventory management software for keeping inventory item record.

In their software they can keep track on their inventory items, can generate invoice, add

customer list, add supplier list and generate sales report. They have some drawback like they

can generate long product list invoice. They don’t have any security features. Their All kind

of Sales order and Purchase order are authorized by the Sales Coordinator. They take order

from the customer by manual process. Then they create Invoice memo by digitally. For this

they use their inventory management software. For purchasing order they have to mail the

supplier. The software they using don’t have the fully accounting function. Since the shop is

small so for performing the proper accounting function we recommend to use TURBOCASH

accounting software. This software is GNU license that means its cost free to use.

Introduction

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An accounting information system (AIS) is a structure that a business uses to collect, store,

manage, process, retrieve and report its financial data so that it can be used by accountants,

consultants, business analysts, managers, chief financial officers (CFOs), auditors and

regulatory and tax agencies. In particular, specially trained accountants work with AIS to

ensure the highest level of accuracy in a company's financial transactions and record keeping

and to make financial data easily available to those who legitimately need access to it, all

while keeping data intact and secure.

Organization Background

“Kazi Stationary World” is a stationary shop which is located in Narsingdi. Kazi Stationary

World started their business in 2009. They are the distributor of STAEDTLER Product in

Narsingdi. Their Supplier name is Radiant Export Import Enterprise. It distribute

STAEDTLER stationary product in all over the Narsingdi District. Their products are Pencil,

Pen, Eraser, Sharpener, Highlighter, Marker, etc.

Revenue Cycle

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Sales Order Processing

Sales Return Procedure

Cash Reciepts Procedure

In Kazi Stationary World they don’t follow any automation system for their revenue cycle.

Most of the process they did by manually. Three types of things involve in Revenue Cycle.

1. Sales Order Processing

Sales Department: Generally order taken by the Sales Promotion Officer (SPO). Then the

Sales Coordinator receives the Order Form. Then Sales Coordinator makes an Invoice. This

invoice goes to the warehouse.

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Figure 1: Sales Order Form

Warehouse: After receiving the Invoice the warehouse In-charge check Inventory Items

availability on Inventory Manager Software that they using. Then warehouse in-charge packs

the products. The Delivery Man takes the product along with the Invoice memo.

Shipping: The delivery man ship the product with the Invoice memo. Then the customer

checks the product by matching with the Invoice memo.

2. Sales Return Procedure

A company must have procedures in place for receiving returned goods, crediting the

customer's account, and placing the items back in inventory. Our selected shop has also a

sales return procedure. The procedures is the following-

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Figure 2: Invoice Memo

Prepare return slip: There is a Return Note use for returning product. The customer uses

this return note for sending back any product. There is picture below which is look like a

invoice memo. But kazi stationary world use it as a return note. The warehouse In-charge

checks it and Update the inventory stock on Inventory Manager Software.

Update Sales Journal and Inventory: After getting the return notes Warehouse in-charge

update Inventory and Deduct money from customer account.

3. Cash Receipt Procedure: Basically When the Delivery man ship the product to the

customer and the customer give money to the delivery man and this delivery man takes the

money. The delivery man then gives money to the cashier of Kazi Stationary World.

Expenditure Cycle

In Their expenditure cycle the purchase processing procedures and cash disbursement

activities are done.

Monitor Inventory Record: Here warehouse in-charge monitors the inventory stock.

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Figure 3: Use as a Return Note

Prepare Purchase Order: In Kazi Stationary world they prepare purchase order form by

Sales Coordinator. And send it to Radiant Export and Import Enterprise by email. All the

sales are authorized by the Sales Coordinator.

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Figure 4: Purchase Order Form

Receiving Goods: Radian Export and import enterprise receive the Purchase Order Form.

Then they pack the required product and send it by Courier Service.

Update Inventory Record: When the warehouse in-charge receives the goods from the

supplier then he update the inventory.

General ledger: General ledger function receives journal voucher from the accounts payable

and account summary from inventory department. Then the function posts it to the general

ledger file.

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Figure 5: Invoice Created By the Supplier

Figure 6: General Ledger

Current Software Using By Kazi Stationary World

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Kazi Stationary World doesn’t use any Accounting Software for their shop. But they use an

Inventory Management Software. In this Inventory Software they can keep record of their

inventory stock. They can add their customer List. They can generate the Invoice Files. They

Can Get the Sales Report.

Figure 7: Client List Module

In Client Module they can add their Customer List.

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Figure 8: Invoice Creating Module

In invoice module they can create invoice memo for their customer.

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Figure 9: Product List Module

In product list module they can add / delete product. They can check the stock available for

any product. They can see the product details on this module.

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Figure 10: Sales Module

In sales Module they can see the sales amount of any month. It’s actually based on the

invoice generate for their customer.

Proposal for implementing “TURBO CASH” to Kazi stationary world

Kazi stationary world have already using Inventory Manager Software. But this software

didn’t give those full features of accounting function. And this is a small size shop. So we

proposed an open source accounting software which is Turbo Cash.

TurboCASH is the world’s leading open source accounting software for small business.

TurboCASH is developed from the contributions of hundreds of up streaming developers in

many compatible open source projects. It is aimed at the small to medium-sized business

market, this places it between being a home finances package and being an ERP package. Its

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core function is a General ledger, posting transactions into accounts and producing financial

reports. Plugin technology enables developers to extend the system. The features are:

Costing and benefits for having this software:

TurboCASH is a free accounting software package. They can have real time data about

inventory, they also for billing, payrolls, payables and many other services. They also can

prepare balance sheet, income statement using this software. This software is very efficient in

respect of time and money. So ultimately this software will help them in many ways. Their

other benefits are given below:

On-screen input and printout of sales invoices 

Automatic updating of customer accounts in the sales ledger 

Recording of suppliers’ invoices 

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Automatic updating of suppliers' accounts in the purchases ledger Recording of bank

receipts 

Making payments to suppliers and for expenses 

Automatic updating of the general ledger 

Automatic adjustment of stock records 

Integration of a business database with the accounting program 

Automatic calculation of payroll and associated entries

Problem of Turbo Cash Software

Some problem we found in TurboCash which are given below:

1. Their user interface is outdated not modernize.

2. Mouse-only input. It’s not possible to operate TurboCASH using only the keyboard,

you need to reach for the mouse frequently, causing efficiency to plumet.

3. Inefficient windows. My screen is a reasonable size and I may have thousands of

accounts to choose from. But the window for account selection is piddling and small

and can’t be re-sized.

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Reference:

1. Kazi Ashraful Islam

Sales Coordinator

Kazi Stationary World, Narsingdi.

2. http://accounting.softwareinsider.com/l/50/TurboCASH

3. http://www.turbocashuk.com/accounting-software-features.html

4. http://www.investopedia.com/articles/professionaleducation/11/accounting-

information-systems.asp

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