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GJS

GJ Steel Company Limited

AC318
Accounting Information System
Company Overview GJS
GJ Steel Company Limited

The largest steel mills in South East Asia

GJS
Investment of 54 Billion Baht

Size: 614 Employees

GJ Steel Company Limited Produced and distribution of hot rolled coil

Fully integrated steel mill

Substitute imports and domestic demand


Company Overview GJS

GJS
GJ Steel Company Limited

GJ Steel Company Limited

Head Quarter: Bangrak, Bangkok Factory : Sriracha, Chonburi


Company Overview GJS
GJ Steel Company Limited

Supplier Customer Competitor


Current Computer System GJS
GJ Steel Company Limited

Windows 2003 Server SAP ECC 6 as an ERP


SQL Database 2008
application

Windows 2012 Server

Windows 2016 Server IT staff takes care off


overall
Organization Chart GJS
GJ Steel Company Limited
Organization Chart: Accounting Department GJS
GJ Steel Company Limited

Finance & Accounting


Executive Vice President

Accounting General Manager

Management Accounting Budget & Control Group


Group Manager Manager Costing Group

AR AP General
Ledger
Organization Chart: IT and Finance GJS
GJ Steel Company Limited

Human Resource and


Administration Finance and Account
Department Department

IT Staff
Finance Accounting
Accounting Standards GJS
GJ Steel Company Limited

Accrual Basis Revenue is recognized when the goods were delivered

Weighted Average Average cost of production to a product


Costing

Perpetual Continually updates its inventory records


Revenue Cycle: Sales order processing GJS
GJ Steel Company Limited
Revenue Cycle: Sales order processing GJS
GJ Steel Company Limited
Revenue Cycle: Sales order processing GJS
GJ Steel Company Limited
Revenue Cycle: Payment Process GJS
GJ Steel Company Limited
Revenue Cycle: Payment Process GJS
GJ Steel Company Limited
Revenue Cycle: Sales Return Process GJS
GJ Steel Company Limited
Revenue Cycle: Sales Return Process GJS
GJ Steel Company Limited
Accounting Code GJS
GJ Steel Company Limited

GJ Steel Public Company uses five digits accounting code

• The first digit will define which accounting category by using the following numbers

1 = asset
2 = liability
3 = capital
4 = income
5 = expense

• The rest of the digits are sequential codes


Accounting Entries GJS
GJ Steel Company Limited

Dr. Accounts receivable XXX


Cr. Sales revenue XXX
Cr. Output VAT XXX
Dr. Cost of sales XXX
Cr. Inventory XXX
Accounting Entries GJS
GJ Steel Company Limited

Dr. Sales Return XXX


Cr. Account Receivable XXX
Dr. Inventory XXX
Cr. Cost of sales XXX
Risk and Control GJS
GJ Steel Company Limited

Risk Manual Control IT Control


Incorrect pricing None None

Customer order not captured for None None


further process

Sales order not processed None Sales manager update the order
status

Uncollectible sales due to Require approval from the board of System check credit limit of the
customer not credit trustworthy directors customer
if the credit exceeds the limit
Risk and Control GJS
GJ Steel Company Limited

Risk Manual Control IT Control


Cannot make delivery as promise None Automate check of inventory
due to stock shortage availability

Incorrect sales order information Confirmation to the customer None

Incorrect shipment(pick the wrong Logistics staff check against the None
items or wrong quantity) sales order and The QC will check
the specification

Incorrect delivery (deliver to the The logistic service provider check Bill of lading is prepared based on
wrong customer/wrong address) the bill of lading against the sales sales order
order
Risk and Control GJS
GJ Steel Company Limited

Risk Manual Control IT Control


Inventory stolen Access control and CCTV Only authorized person can access
installment data which is manufacturing staff
and higher level manager will check
the level of inventory again.

Shipment not bill or delay in billing None None

Sales and receivable not recorded None Automate recording of sales, cost
or incorrectly recorded of goods sold, inventory after sales
are made

Invoice due not corrected None None


Risk and Control GJS
GJ Steel Company Limited

Risk Manual Control IT Control


Inventory returned not recorded The inventory warehouse staff has None
or incorrectly recorded to check with the claim form that
supplier sent back and debit
inventory credit cost of goods sold

Credit note incorrectly record AR account check against the None


approved claim form

Collection is stolen or not deposit None None


to the bank

Cash receipt not recorded Cashiers perform bank None


reconciliation daily
Risk and Control GJS
GJ Steel Company Limited

Risk Manual Control IT Control


Unauthorized deduction of Require the document, if there None
customer balances are no document,we will not
further the process.

Incorrect value of credit notes None None


Computer Related Control: Segregation of Duties GJS
GJ Steel Company Limited

Separating system development from computer operation NOT AVAILABLE

Separating the database administrator from other function NOT AVAILABLE

Separating new systems development from maintenance AVAILABLE

Separating data library from operations NOT AVAILABLE

Separating security administrator from any other functions NOT AVAILABLE


Computer-Related Control: Access Control GJS
GJ Steel Company Limited

Access Privilege Identification & password usage

Access privilege is given


differently according to Username and password are
employees’ roles required to give access to the
system
Managers define which
level each employee can
access
Computer-Related Control: Access Control (Cont.) GJS
GJ Steel Company Limited

To get a username and password for a newcomer…

IT department
HR staffs receive the requisition
prepare requisition
containing newcomer’s
information

HR manager IT department
Approve the requisition and create new username &
send to IT department* password before
newcomer start their work
*the information must be sent 3 days before newcomer come
to work
Computer-Related Control: Access Control (Cont.) GJS
GJ Steel Company Limited

Password format

8 digits of number Capital letter 1 Symbol

o Company policy requires employees to change their password every three months

o If employees decide to quit, the username& password will be deactivate by IT department


Disaster and recovery plan GJS
GJ Steel Company Limited

Business Recovery Plan (BRP)

Not officially written SAP 3 hours

• Back up system • Operation can working


• Backup database for 3 hours after disaster
• Replication of databases occur
Recommendation GJS
GJ Steel Company Limited

1. Use less paper


What should company do?
• Storing documents in electronic archives using data
compression software.
• Transfer documents by e-mail or through online
company’s system rather than sending a hardcopy.

2. Reduce duplication of work


What should company do?

• Customer’s return is approved by marketing manager then send


it to the warehouse. After that, the operation staff have to send
the document to the manager again for approval. This step can
be removed.
• Company should assign the responsibility of each staff clearly
Recommendation GJS
GJ Steel Company Limited

3. Improve productivity 4. Disaster and recovery plan

What should company do? What should company do?

• Set up disaster recovery team


• Hire more worker in IT
• All workers should know what to do in the
• Company has to segregate function of
IT function meantime and should review plans every year
Q&A
GJS
GJ Steel Company Limited

1. Nithitkarn Khantanawat 5902640480


2. Pattanan Peetakanont 5902640639
3. Peeraya Srisurapanont 5902640696
4. Poonyaporn Thassanasugarn 5902640795
5. Supakporn Boonlupyanan 5902641025
6. Vilasinee Kawinchiraphat 5902641165
7. Yanisa Vatcharasinthu 5902641207