Course Id: MIS441. Section: 01.

Assignment on Walton’s Accounting Information System

By HASHIB ARMAN

ID-1730339

Date of Submission: 28th April 2021.

Submitted to,

Mr. Mohammed Naveed Adnan Siddique

Department of Bachelor of Business Administration,

School of Business Studies,

Independent University, Bangladesh (IUB).

Bashundhara R/A, Dhaka-1229.

Contents
Letter of transmittal ...................................................................................................................................... 3
Acknowledgement ........................................................................................................................................ 4
Executive summary ....................................................................................................................................... 5
Literature review........................................................................................................................................... 6
Introduction .................................................................................................................................................. 7
Walton ....................................................................................................................................................... 7
Expenditure cycle of Walton ......................................................................................................................... 8
Revenue cycle of Walton .............................................................................................................................. 9
How Walton generates long term competitive advantage using AIS ......................................................... 10
References .................................................................................................................................................. 12
References .................................................................................................................................................. 12
Letter of transmittal

Mr. Mohammed Naveed Adnan Siddique

Independent University, Bangladesh (IUB)

Bashundhara R/A, Dhaka

Date: April 19th, 2021

Subject: Detailed report on Walton’s AIS

Dear Sir,

With due respect, it is my pleasure and honor to be your students and have this opportunity to
present this comprehensive research. While preparing for this study, I have given our best effort
in this tough time. I have tried to provide all relevant information regarding this research, and I
believe and hope that this research will provide you with a clear conception about my findings.

I gave my best to accumulate required information and I will be more than happy to answer any
question and clarify it fully to your understanding. Thank you for all your help and support
which helped me significantly in preparing this research.

Yours Sincerely,

Hashib Arman

1730339
Acknowledgement

This research work was a great learning experience for me. I am indebted to many people who
encouraged and supported us. Without their participation and assistance, the completion of the
thesis would be impossible. Hereby, we would sincerely like thank them for their patience and
valuable guidance.

Firstly, I would like to take this opportunity to thank our instructor Mr. Mohammed Naveed
Adnan Siddique for guiding us till the end. I deeply admire his experience and vast knowledge in
the field of research. I am truly grateful for him giving us a solid guideline for this research
throughout numerous consultations.

I would also like to expand our deepest gratitude to all those who have directly and indirectly
guided us in preparing this assignment. Many people especially our course mates have made
valuable comments and suggestions on this topic which gave me an inspiration to improve the
assignment by a large margin. I once again thank all the people who tried to help us to complete
this assignment.
Executive summary
Walton Technologies Corporation is a sister concern of R.B. Group of Companies Ltd., which is
now one of Bangladesh's leading businesses. It has a long-held ambition to be Bangladesh's
number one company in terms of both volume and turnover, which prompted it to expand its
market internally in order to establish itself as a high-quality achiever. Walton's state-of-the-art
plant in Chandra, Kaliakoir, Gazipur district, about 40 kilometers (25 miles) north of the capital
Dhaka, produces very high-quality and reliable refrigerators, freezers, air conditioners, and
motorcycles. With the slogan "Walton at Every Home," it began commercial production and
marketing in 2008. Walton regularly uses cutting-edge global technology in its product
development. Furthermore, Walton televisions and their components are produced at Walton
Micro-Tech Corporation, a sister concern of R.B. Group, in its plant in Gazipur. For their
excellent designs, uncompromising consistency, and affordable prices, Walton's products have
already won the hearts of millions of Bangladeshis. It is now a well-known brand name in every
Bangladeshi household. Walton is an ISO 9001:2008 Quality Management System (QMS) and
ISO 14100:2004 Environmental Management System (EMS) accredited organization. It is
attempting to transform its dream of becoming a pioneer into reality by producing high-quality
electrical and electronic goods using cutting-edge technology. Cell phones, generators, washing
machines, irons, and other Walton products are also available. Walton also intends to produce
vehicles, which would provide job opportunities for a significant number of residents.
Literature review
The expenditure cycle refers to the sequence of events that occur when goods and services are
purchased and paid for. The assessment of what needs to be bought, buying activities, receiving
supplies, and making payments to suppliers are all examples of these activities. The sales cycle,
where buying criteria are driven by the volume and form of customer orders, provides a large
portion of the input to the expenditure cycle. The requisition of goods and services, supplier
collection, ordering of goods and services, receipt of goods and services, and eventual payment
for them are all part of the expenditure cycle.

The revenue cycle is a collection of business operations and associated information processing
activities that continue to deliver products and services to consumers while collecting cash from
sales. The Income Cycle is a process that starts with credit authorization, then moves on to taking
goods, receiving goods, billing, and finally cash receipts.

Walton would aim to achieve an advantage over its rivals by meeting the demands of its
customers' goods and services. One thing that is not always obvious is that a company's virtual
resources will help it gain a competitive edge. Competitive advantage in information systems
refers to the use of data to gain business control.
Introduction
Walton
Walton is a new international electrical, electronics, vehicles, and other appliance brand with one
of the world's largest and best-equipped R&D facilities, which manufactures through various
subsidiaries under the Walton group headquarters in Bangladesh. Walton first entered the
electronics industry in 1977, producing electrical and mechanical products, and has since
extended its operations to include a wide range of other electronics fields that underpin virtually
every area of everyday life. The core to Walton's growth is its ability to vary manufacturing
capability and customize new product orientation based on customer demand. Thermoforming,
ABS/HIPS Sheet Extrusion, Magnetic Strip Extrusion, PP Hollow Sheet Extrusion, VMC,
Ultrasonic Welding, Injection Molding, Styrofoam Making, Hi Speed Power Press, Fin Press,
SMT pick and position, SPG printing system, AOI machine, Tamura wave solder machine, Auto
inserting machine are only a few of the world-class machineries that Walton employs in the
manufacture of its high-quality.

Accounting Information Systems (AIS) are systems that are used to keep track of a company's or
organization's financial activities. The scheme blends IT business technologies, such as
computers, applications, and user experience, with methodologies, controls, and accounting
techniques. Internal reporting data, external reporting data, and financial statistics are all
provided by the applications used to document transactions. Internal reporting statistics, external
reporting data, financial statements, and pattern tracking capabilities are also available in the
applications used to trace transactions. Decision-makers and top executives need this knowledge.

To ensure its global footprint WALTON is currently exporting its product to more than 20
countries which started in 2010.
Expenditure cycle of Walton
The expenditure cycle is a series of recurring business processes and related data processing
procedures associated with the procurement and payment of goods and services. The
procurement of raw materials, finished products, equipment, and services is the subject of this
section. The requisition of goods and services, supplier collection, ordering of goods and
services, delivery of goods and services, and actual payment for them are all part of the spending
period.

For Walton, the expenditure cycle like any other company focuses on two major set of activities.
These are purchases processing and cash disbursements procedures. Payroll and fixed asset
systems, which also support the expenditure cycle. The primary objective for the expenditure
cycle of Walton is to cut down total cost and maintaining inventory, supplies and services. When
we mention lowering down the total cost, we do not mean that we compromise the integrity of
the goods or the services. Walton being one of the manufacturers in electronics, holds its
suppliers and dealers in highest regards.

The expenditure cycle in walton follows the following four activities.

1. Ordering- Most products that must be ordered are required by the manufacturing process.
To do so, the machine estimates the supplies that must be on hand for planned processing
and subtracts on-hand and unallocated raw materials to arrive at the required quantities.
Alternatively, where products or services are required for a sale or administrative
purpose, the applicant completes a requisition form and submits it to the purchasing
department.
2. Receiving- after the order is placed and approved by the purchasing and order department
at walton, the manufacturing line receives the supplies. When non-standard products and
services are needed, the buying department researches potential vendors, chooses the
right one, and places a purchase order with them even if they are not regulars.
3. Approving supplier invoices- The accounts payable personnel enter supplier invoices into
the system as they arrive. To decide when the invoices should be charged, the software
compares them to the approving buying orders and obtaining details. At this point, there
will be a considerable amount of manual reconciliation activity. A collection of invoices
 has been accepted for payment as a result of this process. All the invoices are thoroughly
checked and before they are approved.
4. Cash disbursements- The system schedules payments to vendors according to each one's
fixed payment conditions. These conditions are pre-determined and fixed. When a
payment deadline is reached, the software processes a batch of deposits, which may be in
the form of checks or automatic funds transfers.

Revenue cycle of Walton

Cash flow management is critical for any company, but it is especially critical for small
companies, where every penny counts. This method, which includes currency, inventories, and
sales data, can only be aided by an accounting information system. A computerized system can
provide information even more quickly than manual accounting, making it an important method
for handling cash and inventory levels.

The revenue cycle is a series of ongoing commercial transactions and related information
processing processes involved with selling products and services to consumers and receiving
payment in cash. The primary goal of the revenue cycle is to deliver the right commodity to the
right customer at the right time at the right price.

Walton has showrooms and sales centers all around the country where everyday various
accounting events take place. The financial activities are recorded in software’s where all the
information of the transactions is stored in master files. This is also known as one of the key
steps of revenue cycle database.

Walton maintains four basic business activities performed in the revenue cycle. They are as
follows

1. Sales order entry- The revenue period starts when a customer places an order
online or physically. The method of entering purchase orders is usually handled
by sales departments. This procedure is divided into three steps: taking orders
from customers, verifying and accepting credit, and checking inventory
availability.
2. Shipping- Filling consumer orders and delivering desired merchandise is the
second important activity in the revenue cycle. The first step in fulfilling a
 customer order is to choose the appropriate products from inventory and package
them for distribution. After the order is confirmed the shipping department at
walton confirms the product order from the customer and ships it to desired
location.
3. Billing- Billing customers is the third phase in the sales cycle. It is all about
billing and keeping track with payments receivable. Billing for delivered goods
must be accurate and timely. Invoicing is merely an information retrieval
operation that repackages and summarizes data from the sales order entry and
delivery processes. Walton billing method is both cash and credit/debit cards.
During covid pandemic walton started shipping and billing computer hardware.
4. Cash collection- The cash collections function's main goal is to keep consumer
remittances secure. The most powerful monitoring procedure for minimizing the
risk of robbery is segregation of duties. There are three sets of responsibilities that
can be separated. Customer remittances are handled by the cashier at walton, who
then deposits them in the bank. The names and sums of all customer remittances
are listed on a remittance list, which is sent to accounts receivable.

How Walton generates long term competitive advantage using AIS

Computerized accounting systems make recording, processing, analyzing, and documenting sales
documents much easier. When a company executes a strategy in a different manner than its
opponents, it achieves a competitive advantage. Walton, for example, improves customer service
by giving consumers direct access to information.

Strategic, tactical, and technological capabilities can also be used to gain a competitive
advantage. These three types of competitive advantage will reinforce each other. The
accounting information system that is influenced by these three levels has the greatest chance of
significantly enhancing a company like Walton’s efficiency.
Walton generates long term competitive advantage when they use fully computerized accounting
information system. The benefits are as follows

1. Time wasted on manual operations can be cut in half. Computerized transaction keeping
can help Walton automate bookkeeping process. This digitalization can save hours of
time.
2. Errors are reduced, and accuracy is improved. Digital accounting in any firm like Walton
ensures every time that all data entered is correct and calculated precisely. This reduces
redundancy and improves accuracy at Walton.
3. Real-time financial information- computerized accounting are synchronized with real
time online bank accounts. This ensures that all the transaction and invoices are updated
real time.
4. Reduce expenditure on resources. By streamlining the accounting and bookkeeping
processes by using a computerized system employee at Walton does not need to spend
much time on financial information- which leads to cost saving.
5. More business results from faster record-keeping. Walton employees can spend more
time focusing on business operations and increasing profit margins thanks to automated
complex calculations, constant financial awareness, and less time spent processing and
checking your accounts.
References
(Abedin, 2013)

(Susanto, 2019)

(Azhar Susanto, 2019)

(steinbart)

References
Abedin, S. Z. (2013). risingbd. Retrieved from
https://www.risingbd.com/english/education/news/743

Azhar Susanto. (2019). INTERNATIONAL JOURNAL OF SCIENTIFIC & TECHNOLOGY

RESEARCH VOLUME 8, ISSUE 06, JUNE 2019. Revenue Cycle In Accounting
Information .

steinbart, R. &. (n.d.). Choice Assistance with summaries of Accounting Information Systems.

Susanto, A. (2019). INTERNATIONAL JOURNAL OF SCIENTIFIC & TECHNOLOGY

RESEARCH VOLUME 8, ISSUE 01, JANUARY 2019 . Information System For
Competitive Advantage.

unknown. (2018). accounting tools. Retrieved from

https://www.accountingtools.com/articles/2018/12/28/expenditure-cycle