Account Payable

Developed By :-

Jignasa R. Bathwar Bhushan B. Gohel

Page 1 of 12

Account Payable

Customer order some item which is inputted into the order file. In the order file order detail is inputted. Then verify that the order is valid. If order is valid then It is inputted into the pending order file. Then this pending order file is assembled requisition to purchase department. In this process venders address and its details are also included. Then purchase department is said that the order is assembled to which vender. Then it will give to then it will give to the purchase order details files. After that it verify the current shipment. Then it give note to the purchase department. The accuracy of invoice. If it is accepted then it will give to the account prepare a vender product. Then venders payable cheque is inputted to purchase department.

Definition of System
An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable entry is found on a balance sheet under the heading current liabilities. Accounts payable are often referred to as "payables". Another common usage of Account payable refers to a business department or division that is responsible for making payments owed by the company to suppliers and other creditors.

Page 2 of 12

Account Payable

Need of a computerized system
 Assuming that existing system is manual. The existing system maintains all the records manually.  The manual system is very slow and time consuming.  The existing system contains large number of errors due to manual system.  Errors are always prone to affect the integrity of a system.  Also, security becomes a vital issue in such a system.  So, automated systems are required and have become inevitable.  Authentication is used to implement a security layer between users and the system.  Authentication is also useful to track user trails, i.e. to know what action was performed by which user and when.  Various tasks are automated, so it reduces manual performance.  The reports are generated automatically without any efforts.

Page 3 of 12

Account Payable

Feasibility study
A feasibility study is undertaken to determine the possibility or probability of either improving the existing system or developing a completely new system. It helps to obtain an overview of the problem and to get rough assessment of whether feasible solution exists. This is essential to avoid committing large resources to a project and then repent on it later.

Need for Feasibility Study :

The feasibility study is needed to
(1) (2) (3) (4) (5) (6) (7)

Answer the question whether a new system is to be installed or not? Determine the potential of the existing system. Improve the existing system. Know what should be embedded in the new system. Define the problems and objective involved in a project. Avoid costly repairs at a later stage when the system is implemented. Avoid crash implementation of a new system. Avoid the ‘Hardware Approach’ i.e. getting a computer first and then deciding how to use it.

Page 4 of 12

Account Payable

 There are three aspects in feasibility study portion of the preliminary investigation. 1) Technical feasibility 2) Economic feasibility and 3) Operational feasibility

Technical Feasibility :
Technical Feasibility determines whether the work for the project be done with the present equipment, current procedures, existing software’s technology and available personnel? If new technology is needed then what alternatives will be needed in the present structure and work ethos? This will require a close examination of the present system. The technical feasibility should ask questions related to: 1) 2) 3) 4) Adequacy of available technology. Adequacy of hardware. Available of computer. Operating time and support facilities, etc.

 

Technical feasibility determines whether the technology needed for the proposed system is available and how it can be integrated within the Vehicle Registration And Insurance System . Technical evaluation must also assess whether the existing system can be upgraded to use the new technology and whether the Vehicle Registration And Insurance System has the expertise to use it.
Page 5 of 12

Account Payable The technical feasibility in the proposed system deals with the technology used in the system. It deals with the hardware and software used in the system whether they are of latest technology or not. It happens that after a system is prepared a new technology arises and the user wants the system based on that technology. Thus it is important to check the system to be technically feasible.


Economic feasibility :
Economic feasibility looks at the financial aspects of the project.

Economic feasibility concerns with the returns from the investments in a project. It determines whether it is worthwhile to invest the money in the proposed system. It is not worthwhile spending a lot of money on a project for no returns. To carry out an economic feasibility for a system, it is necessary to place actual money value against any purchases or activities needed to implement the project. The Vehicle Registration And Insurance System plans to acquire the necessary hardware and software require for the system and there is no hindrance whether economical or otherwise towards its purchase. A brief description of the hardware and software required in the system is given later in the report.

Page 6 of 12

Account Payable

Operational feasibility:
Operational feasibility covers two aspects. One is the technical

performance aspect and other is the acceptance within the Vehicle Registration And Insurance System . Operational feasibility determines how the proposed system will fit in the current operations and what, if any job restructuring and retraining may be needed to implement the system. In the system operational feasibility checks, whether the user who is going to use the system is able to work with the software’s with which the system is coded and also the mind of the user going to use the system. If the user does not understand or is able to work on the system further development is of waste.

Page 7 of 12

Account Payable

E-R Diagram

Page 8 of 12

Account Payable

Data Flow Diagram




Order for goods

Account payable system

Return order

Order for goods

Page 9 of 12

Account Payable

Data Flow Diagram


Page 10 of 12

Account Payable

Advantage of System
(1) Structured:  Ensures uniform wording of questions to all respondents.  Easy to administer and evaluate.  Less interview training required.  Result in shorter time. (2) Unstructured:  Questions can be worded to suit the respondent.  May produce the information about the areas overlooked or not thought to be important.

Disadvantage of System
(1) Structured:  Cost of preparation is high.  Such high level of structure may not always be suitable.  Some respondent may resist to such structure. (2) Unstructured:  Inefficient use of interviewer and respondent time.  Results take a longer time.  Extra time required for the collection of essential facts.
Page 11 of 12

Account Payable  The success of the interview depends on the skill of the interviewer and his/her preparation for the interview.  Analysts must also be aware of the kinds of difficulties at some interview, and must know how to deal with the potential problems.

By using this Account Payable System user can get following items. 1) Discover the latest timesavers for processing payables 2) It is more effective internal controls for reducing duplicate payments, fraud and wasteful spending 3) Turn your AP department into a profit center! 4) Streamline the entire payment process with simple techniques – and dramatically boost your efficiency 5) Build safety nets into your processing system that guarantee bills get paid on time

Page 12 of 12