Professional Documents
Culture Documents
University of Bahrain
College of Business Administration
Accounting Department
ACCOUNTING
INFORMATION SYSTEM
"Madaris Uniforms W.L.L"
By:
Marwa Aref 20181760
Ranya Ebrahim 20193793
Ali Ebrahim 20206515
Manar Jaafar 20193747
Mohammed Mahmood 20175300
DR.Mohamed Zaki Yassin
“Sec:10”
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Contents
Introduction to the report……………………………………………………………………………………….…………….3
Users……………………………………………………………………………………………..........................………………6
Business Cycle…………………………………………………………................................................................8
Revenue Cycle……………………………………......................................................................................9
Expenditure Cycle……………….......................................................................................................10
Production Cycle…………………......................................................................................................11
Hierarchical flowchart.................................................................................................................15
Recommendations………………………………………………………………………………………………………………….21
Conclusion………………………………………………………………………………………………………………………………22
References………………………………………………………………………………………………………………………………24
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Introduction to the report:
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Introduction to the report:
This report reflects the student's understanding of the course and is also an actual
application of what has been studied on this course.
4
Company introduction (overview):
The company was established on 9/7/2019 and another branch was
established on 27/7/2021.Their first branch was in Tashan.
Madaris Uniforms company specializes in tailoring and tailoring clothes for
commercial and industrial companies in the Kingdom of Bahrain.It is a
company in the Kingdom of Bahrain that is famous for tailoring as it is one
of the best shops ever and many big companies in Bahrain deal with it.
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Users:
External
• The government is the most user.
• Ministry of Health
• Bapco company
• Haji Hassan Group
• NASS Company
• Ministry of Interior Customs
• Business firms that have a mutual benefit contract
• And companies selling products and some other companies.
Interns
• investors
• The owners of the company
• Administrative staff.
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Vision and mission:
The company's mission is:
to achieve leadership and excellence in clothing production in Bahrain.
That the company be one of the most famous companies specialized in the
production of clothing in Bahrain.
Company values:
The company's values are customer satisfaction and finding the best.
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Business Cycle
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Revenue Cycle
This cycle deals with the collection of cash or receivables, in return for providing
goods or services for customers, such as service fees or charges, rental revenues,
consulting revenues. The revenue cycle involves interactions with your
customers.You sell goods or services and get cash. These are the recurring
business activities and information processing processes involved in the process of
providing goods and services to customers and receiving payment for sales. The
goal of the revenue cycle is to provide the right product at the right price in the
right place where the customer needs it at the right time.
Give Goods ---›Get Cash
The transactions in the revenue cycle include: Handle customer inquiries, Take
customer orders, Approve credit sales, Check inventorv availability, Initiate back
orders, Pick and pack orders, Ship goods, Bill customers
, Update sales and Acts Rec. for sales, Receive customer payments, Update Acts
Rec. for collections, Handle sales (returns, discounts, & bad debts), Prepare
management reports and Send into to other cycles.
In relation to the revenue cycle in a Madaris company, they take the finished goods
from the production cycle which is from the company's sewing factory, then they
distribute the clothes and sell them to buyers or users. Then the sales manager will
give the financial cycle the money from the revenue they got from the sale, and
also they will provide the data about this process to the general ledger and
reporting syste
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Expenditure Cycle
This cycle is done to record all financial transactions and any amount spent during
the fiscal year being processed. Therefore, it contains all the accounts carried out
by the accountant, starting with the daily entry’s accounts, and ending with the
financial statements. The expenditure cycle involves interactions with your
suppliers. You buy goods or services and pay cash.
Give Cash ----›Get Goods
In this cycle, Management forecasts company’s needs, evaluate the means of
financing. Like loans, then take actions needed, based on specific scenarios.
Other transactions in the Expenditure cycle include Requisition goods and services,
Process purchase orders to vendors, receive goods and services, Store goods,
receive vendor invoices, Update accounts payable for purchase, approve invoices
for payment, Pay vendors, Update accounts payable for payment, Handle purchase
returns. discounts. and allowances, Prepare management reports.
and send it into other cycles.
In relation to the expenditures cycle in a Madaris company, the cycle and the
financial department in the company gives the expenses cycle the funds to
purchase raw materials such as pieces of cloth, needles, sewing tools and
machines, and everything you need for sewing for the production cycle to finished
goods. They then give the data to the company's general ledger and reporting
system.
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Production Cycle
The production cycle expresses the average time between purchasing raw
materials, converting them into final products, and ending with selling them. Some
also express it as the time between paying money for raw materials and receiving
money from selling finished products. In the production cycle, raw materials and
labor are transformed into finished goods.
Give Raw Materials & Labor ---› Get Finished Goods
Other transactions in the production cycle include Design products, (Forecast, plan,
and schedule production), Requisition raw materials, Manufacture products, Store
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finished goods, accumulate costs for products, prepare management reports and
Send info to other cycles.
In relation to the production cycle in a Madaris company, the human resource staff
in the company hires distinguished workers in sewing to work in the factory in the
production cycle. Then the production cycle of workers produces the final goods
and gives them to the revenue cycle for sale, and the expenditure cycle buys the
raw materials that the sewing factory needs in the production cycle. Finally, this
cycle gives data to the company's general ledger and reporting system.
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Optimum is an integrated system to automate the management of human resources
and salaries, all the requirements for managing human resources, personnel affairs,
and salaries, and it includes the full cycle of recruitment and the employment file
as well. It controls the employee's file in terms of personal data, employment data,
promotions, and increases, as well as attendance data. The human resources cycle
involves interactions with your employees. Employees are hired, trained, paid,
evaluated, promoted, and terminated.
Give Cash -> Get Labor
Other transactions in the human resources cycle include Design products, (Recruit,
hire, and train employees), Evaluate and promote employees, Discharge
employees, Update payroll records, pay employees, Process timecard and
commission data, Prepare and distribute payroll, Calculate, and disburse tax and
benefit pavements, prepare management reports, and Send info to other cycles.
In relation to the human resource/payroll cycle in a Madaris company, first, the
financial cycle gives money to human resources, then the human resources hire
workers to work in the production cycle for sewing. Then you give the company's
general ledger and reporting system the data that shows what it has done in this
cycle.
Financing Cycle
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Finance is concerned with identifying the needs of individuals, organizations, and
companies in terms of cash resources and determining ways to collect and use
them, considering the risks associated with their projects. Accordingly, the term
financing combines the following: The study of money and other assets.
Management and control of these assets. The financing cycle involves interactions
with investors and creditors. You raise capital (through stock or debt), repay the
capital, and pay a return on it (interest or dividends).
Give Cash - › Get Cash
Other transactions in the financing cycle include Forecast cash needs, SE securities
to investors, borrow money from lenders, pay dividends to investors and interest to
lenders, retire debt, prepare management reports, and send it into other cycles.
In relation to the financing cycle in a Madaris company, in this cycle, the financing
cycle gives money to human resources to hire employees and finances the
expenses cycle for the purchase of raw materials and all that companies need in
terms of operating expenses such as raw materials or fixed company expenses and
all that. But at the same time, you receive the money from the revenue cycle that
came from the sale of finished goods such as clothing. In the end, you give data
about all the operations you perform to the company's general ledger and reporting
system.
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In the end, the company's General Ledger and Reporting System collects all the
data for each session in the company and converts it into information for internal
and external users. This helps users decide whether to participate in a Madaris
company.
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Hierarchical flowchart of Madaris uniforms
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Data flow diagram of Madaris uniforms
This diagram describes the flow of work, input, output, billing, and payment
between all the involved parties. It starts with making orders by customers,
processing orders by the company, making output plans -weather through
requesting materials supply from the supplier or productive capacity planning if
materials are made for production, ordered products are prepared for sales to
intended customers, while bills are made for payment by customers.
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Accounting Information System for Madaris Company:
AIS- Is a structure that a business uses to collect, store, manage, process,
retrieve, and report its financial data so it can be used by accountants,
consultants, business analysts, managers, chief financial officers (CFOs),
auditors, regulators, and tax agencies. It is a method of tracking accounting
activities that is computer-based and makes use of information technology
resources. An AIS combines cutting-edge information technology with
conventional accounting techniques, such as the use of Generally Accepted
Accounting Principles (GAAP).
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data online, where it will always be available to you and will remain secure
even if your computer is stolen or damaged.
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Strength of Accounting Information System for Madaris Company:
Improved Security: Sage 50 software usage results in greater security and
compliance with financial rules and guidelines.
Learning Curve: who are unfamiliar with the software may face a learning
curve that will require time and resources to overcome.
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Cost: Buying and maintaining the software may be expensive, and not all
firms may be able to afford it.
Data Security Risks: risk can arise from using technology to access and
store financial data, including the possibility of hacking and data breaches.
To reduce these dangers, it is crucial to employ the proper security
measures.
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Regularly Back Up Data: Data backup on a regular basis helps ensure that
financial records are not lost in the event of a failure or interruption of
technology. This may entail data backup to an external hard drive or a secure
cloud-based storage system.
Conclusion:
Madaris Company and their accounting information system. Madaris Company
manages several business cycles, including the revenue cycle, expenditure cycle,
production cycle, human resources/payroll cycle, and financing cycle. They use an
accounting information system that includes an integrated system and Sage 50
accounting software to manage their financial and accounting information
efficiently.
In the revenue cycle, Madaris Company takes finished goods from the production
cycle, distributes them to buyers or users, and gives the financial cycle the sales
revenue. The company also records the data in the general ledger and reporting
system. In the expenditure cycle, Madaris Company receives funds from the
financial cycle to purchase raw materials for the production cycle. The company
records the data in the general ledger and reporting system. In the production cycle,
Madaris Company's human resource staff hires workers for the sewing factory,
who produce the final goods for the revenue cycle and purchase raw materials for
the expenditure cycle. The company records the data in the general ledger and
reporting system. In the human resources/payroll cycle, Madaris Company's
financial cycle gives money to human resources to hire employees. The company
records the data in the general ledger and reporting system. In the financing cycle,
Madaris Company's financial cycle provides money to human resources and the
expenditure cycle for operating expenses, while receiving money from the revenue
cycle for sales revenue. The company records the data in the general ledger and
reporting system.
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Madaris Company's accounting information system is a computer-based system
that helps collect, store, manage, process, retrieve, and report financial data. It
allows the company to track accounting activities more efficiently, such as
revenue, expenses, customer information, employee information, and tax
information. The software uses a database structure to store data, and a query
language is used to build the structure, allowing for table and data manipulation.
The accounting information system provides a variety of fields for entering data
and changing data that has already been captured. The system also offers several
benefits, including enhanced security, reduced costs and staffing requirements,
greater mobility, and flexibility, 24/7 support, and easier collaboration with teams
and consultants.
However, the software may have some limitations for larger firms with more
complex financial needs, and employees who are unfamiliar with the software may
need training and support to use it effectively. Additionally, data security risks can
arise from using technology to store and access financial data.
Overall, the use of Sage 50 accounting software has provided Madaris Company
with a tool to manage their financial resources efficiently and make informed
business decisions. By addressing the weaknesses and implementing the
recommended measures, the company can further enhance the system and ensure
that it meets its evolving financial needs and requirements.
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References:
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