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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
Nasrin Sultana
Joly Akter
Noor Mohammad
Sarnali Zaman
Shapna
Kaium Sarkar

1230095
1221034
1220846
1221458
1220981
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

Table of Contents
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Topic

Page No.

Executive Summary

Introduction

Organization Background

Revenue Cycle

Expenditure Cycle

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:

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List of Figures
3

Figure List

Page No.

Figure 1: Sales Order Form

Figure 2: Invoice Memo

Figure 3: Use as a Return Note

Figure 4: Purchase Order Form

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Figure 5: Invoice Created By the Supplier

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Figure 6: General Ledger

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Figure 7: Client List Module

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Figure 8: Invoice Creating Module

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Figure 9: Product List Module

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Figure 10: Sales Module

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Executive Summary

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 dont 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 dont 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

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

In Kazi Stationary World they dont follow any automation system for their revenue cycle.
Most of the process they did by manually. Three types of things involve in Revenue Cycle.
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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.

Figure 1: Sales Order Form

Warehouse:

receiving

the

Invoice

After
the
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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.

Figure 2: 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-

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.

Figure 3: Use as a Return Note

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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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

Figure 4: Purchase Order Form

sales are authorized by the Sales Coordinator.

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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.

Figure 5: Invoice Created By the Supplier

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Figure 6: General Ledger

Current Software Using By Kazi Stationary World

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Kazi Stationary World doesnt 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. Its 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
didnt 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 worlds 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. Its 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 cant be re-sized.

Reference:
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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/accountinginformation-systems.asp

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