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CHAPTER II

THERORITICAL FRAMEWORK
This chapter presents the Review of Related Literature and Review
of Related Studies.
Review of Related Literatures

Local Literature
IJCS-ASIS (Ian Jason Construction and Supply Automated Sales and
Inventory System).This sales and inventory system has no capacity
to print out sales invoice and record items that a particular
employee had purchased. It is also a non-customer handler system.

Foreign literature
Sales
In general, a transaction between two parties where the buyer
receives goods (tangible or intangible), services and/or assets in
exchange for money. An agreement between a buyer and seller on
the price of a security. Every day, millions of people take part in
countless sales transactions across the globe, creating a constant
flow of value which forms the backbone of our economies. Sales of
investment vehicles in the financial markets represent highly refined
value exchanges.
For example, consider a typical middle-class person purchasing their
first home. Obviously, a sale occurs when the home is sold to the
buyer. However, there are many layers of sales surrounding the
deal. Very likely, a lending institution would sell financing, via a
mortgage, to the homebuyer. Then, the lending institution likely sells
that mortgage to another individual as an investment. An
investment manager could earn living trading bundles of mortgages

Inventory is often the largest item in the current assets category. Called also stock in trade or just stock. consumables). http://www. first out (FIFO method or last-in. or (3) for sale of customer service (merchandise. The value of an inventory depends on the valuation method used.html#ixzz2bx Y4fH8D Review of Related Foreign Studies . The value of materials and goods held by an organization (1) to support production (raw materials.com/definition/inventory.com/terms/s/sale. first-out (LIFO) method. (http://www. The optimum level of inventory for an organization is determined by analysis. (2) for support activities (repair. Organizations whose inventory items have a large unit cost generally keep a day to day record of changes in inventory (called perpetual inventory method) to ensure accurate and on-going control. maintenance.asp) Inventory An itemized catalog or list of tangible goods or property. Organizations with inventory items of small unit cost generally update their inventory record at the end of an accounting period or when financial statement is prepared (called periodic inventory method). and must be accurately counted and valued at the end of each accounting period to determine a company's profit or loss. such as first-in. spare parts). finished goods. subassemblies. work in process). or the intangible attributes or qualities.and other kinds of debt financing.investopedia.businessdictionary. GAAP require that inventory should be valued on the basis of either its cost price or its current market price whichever is lower of the two to prevent overstating of assets and earning due to sharp increase in the inventory's value in inflationary periods.

This system serves as aid in creating invoices. This inventory system allows controlling customer balances and vendor balances. • It provides separate product descriptions for individual items.“Silver Inventory System” (Quartex LLC 2009) A complete and inexpensive system for management of sales. purchases and payments. Weakness: • Errors frequently occur when voiding the items. payment receipts. and purchase orders. receiving lists. . • Lack of user security. the system still needs further studies about inventory filing and monitoring of the products that are unorganized because some of the product batch codes are not accurate. Strengths: • The system has a back-up file database. sale orders. product label with barcodes and any kind of report for monitoring your business.) The system is capable of doing certain tasks like monitoring or reporting the quality of stocks and reviewing the product batch codes. However. Weaknesses: • The system does not have a wall-to-wall function for the inventory process. • The system cannot determine critical quantity of products. Review of Related Local Studies “Trimax Inventory System” (Camacho et. Strengths: • It has a simple intuitive interface. This involves the readiness to sell and involve transaction as needed. • The system can check the over aged and non-moving inventories of the inventory file.al.

• Fast and accurate productions of income reports and an optimized flow transaction. • Inventory filing and monitoring of products are unorganized because some of the product batch codes are not accurate. of the said company. 2009) The system was conceptualized for using application software that would solve the problems arising from the existing system. Strengths: • A message box is important because one can leave an urgent message for the next user. . • There is no function available for wall-to-wall inventory processes. Those fast and accurate productions of income reports and an optimized flow transaction between the management and customer were being made easier.Weaknesses: • The system cannot determine stocks of near or below critical quantity level. “GSM Automated Sales and Inventory System” (Padrones et. Weaknesses: • The system cannot determine critical quantity of products. which is manual.al.