Accounting

Data Flow ofInformation System

Youth Saving Bank
Assignment
Expenditure & Revenue Cycle
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Lecturer : Josua Tarigan, Phd, CMA, CFP, CSRA, CIBA

Adeline Nathania Cheng/ D12180144

Gabriella Gunawan/ D12180146
Cathlyn Putri Endhy/ D12180297
Chapter 1 2

Introduction to the Company

TABLE OF CONTENTS
Table of Contents...................................1
1. Introduction to the Company ...........2
1.1 Company Background 2

1.2 Introduction to Systems Documentation Technique 2

2. Accounting Business Cycle 3

2.1 Expenditure Cycle of Youth Saving Bank 4

2.1.1. Context Diagram..................5
2.1.2. Data Flow Diagram 6

2.1.3. Flowchart 7
3. Conclusion and Summary 8

3.1 Threats and control of Expenditure cycle 4

1.1 Company Background

PT Youth Saving Bank Tbk, or commonly named as Youth Saving Bank abbreviated as (YSB)
is a newly formed Indonesian bank founded on February 16, 2016. It is a middle-sized bank focusing
on the young generation to raise awareness on savings and assisting the youth who wants to build their
start-up companies by offering various banking services and the main one is the credit services for
clients who would like to borrow money as their business’s capital.

Currently PBI have a total of 60 employees working in the Bank. As for the Organization
Structure the 20 employees divided into 3 level of position with Director, General Manager, and 8
Divisions with each division consists of 4-5 employees. Though the bank is new, PBI is striving to
grow in this new era.
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1.2 Introduction to Systems Documentation Technique

Accounting information system documentation uses media such as diagrams in exemplifying
the flow of accounting and finance data and how the system work as a whole. Documentation
comprises information regarding data entry, processing, storage, information output, until the control
of a system itself and is usually complemented by a narrative description. A narrative description is the
written step-by-step summarized explanation that happens within the system components and the way
they will later interact with each other. This process usually utilizes the readily available software in
the market.
This assignment paper will further discuss the following documentation tools in a more specific
manner:
1. Data flow diagram (DFD), a graphical model of data sources, data flows, transformation
processes, data storage, and data destination that is mainly used in accounting information
systems to analyze an existing system.
2. Flowchart, a graphical descriptive model of a system. There are few types of flowcharts,
including:
1. Document flowchart, which reveals the flow of documents and information between
departments or areas of responsibility.
2. System flowchart, which shows the relationship among the input, processing, and
output in an information system.
3. Program flowchart, which shows the sequence of logical operations a computer
performs as it executes a program.
b. Business process diagram, graphical descriptions of the business processes used by a company.
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2.1 Expenditure Cycle of Youth Saving Bank

Youth Saving Bank’s expenditure cycle concludes the service provided for its clients who
want to borrow money or take a loan with a purpose to fulfill their needs. The procedure starts with the
authentication of the bank’s clients credibility by completing the application form which include the
profile of the applicant, their ability to repay the loan and also the contract between the banks and the
customers, as well as the data of the clients such as identity card (KTP).

In the next stage, the client’s application form will be analyzed (credit analysis). The current
status of the customer is examined in detail by the credit department. After they had finish the credit
Chapter 2 5

Accounting Business Cycle

analysis, the customer’s data will be kept in the customer database matched to the terms and conditions
of the banks in terms of the profitability of the borrowers.

The credit department would then provide an analysis report. Thereafter, the credit
administrator will send an authorization or approval note to the next phase, which either establishing a
new account or updating the current account (if customer have an account). The person who
responsible for creating or updating the account, the front office, will need to update the account
database that contains sensitive details regarding the borrowers.

The unsigned contract and the consumer agreement note will be submitted to the notary
public right after the savings accounts has been established or updated. The notary or solicitor shall
legalize the contract and hand it bac to the credit department. After that, the credit department will
record the acceptance of the disbursement to the finance department, where the cash will be disbursed.
Once the disbursement has been completed, the finance people will update the account receivables
database and submit the disbursement details to the accounting department, who will update the ledger

2.1.1. Context Diagram

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2.1.2. Data Flow Diagram

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2.1.3. Flowchart
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Threats and control of Expenditure cycle

No Threat Control
1 Approve loan to unreliable customer Utilizing integrated database for the reliable
Chapter 3 9

Conclusion and Summary

clients and analyse customers thoroughly

Segregation of duties and check the balance
2 Theft of checks
of debit and credit every end of the day
Regular backup with copies being stored off-
3 Loss or destruction of master data
site, disaster recovery plan
Restriction of access to the master data,
Unauthorized disclosure of sensitive
4 encryption, different password & ID for each
information
authorized employee
3.1 Threats and control of Expenditure cycle

Having an impeccable expenditure and revenue cycle for middle sized banking company such
as YBS is a challenge and an exceptionally huge step in sustaining in the industry. As of YBS, the
bank had just actualized and implement an effective cycle in terms of productivity and dependability
the organization's cycles are generally computerized; they are done consequently once an errand has
been accomplished or wrapped up. Hence, it guarantees that there is insignificant mistake during the
cycle processes. Such error would ruin the cycle and generates issues that disturb the cycles.

In general, the expenditure cycle is simple in its outer surface, but the underlying processes are
complexly developed through years of development and improvement. The process itself is very
important; accepting non credible clients could be critical, it would be a bad debt instead of revenue.
The incremental changes then ensure that processes are impeccable yet efficient. One way to improve
the processes is to utilize more of cloud computing in the processes in order to maintain an efficient yet
cheaper way of delivering service.

Concerning the income cycle itself, it was really a more straightforward cycle contrasted with
the expenditure. Be that as it may, its importance is irrefutable. Improperly crediting the portion sum
could be terrible and badly arranged to both the client and the bank. As of YBS, the bank has just
actualized a computerized framework to credit the records, so improperly deducting the record could
nearly be completely smothered.
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