INDEPENDENT UNIVERSITY BANGLADESH

Accounting Department, SBE

Autumn Term 2023

Marks:

Course title: Accounting Information System

Course No: ACN-441

Assignment title: Interrelated Business Cycle of Super Market and the Data Analytics

Class teacher: Dr Nushrat Jahan Date: 18/12/2023 Section: 02

Assistant Professor

Accounting Department

Student ID: 2030721 Name: Sajir Bin Zahir Class serial: 42

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 Super Market

Revenue Conversion Expenditure

Payrool & Human

Resources

Finance &
Accounting

Revenue Cycle
The processes a supermarket goes through from the time a consumer comes in to buy groceries until the
money earned is entered into the accounting system are all included in the revenue cycle. Ensuring efficient
operations, precise financial reporting, and eventually profitability is contingent upon this essential cycle.
Here's a breakdown of the key stages in a supermarket's revenue cycle:
1. Sales Transaction Recording: Accounting software and the inventory management system immediately
integrate sales data from the point-of-sale (POS) system. Purchase orders are initiated when stock levels
drop below predefined criteria, as sold products are subtracted from the inventory records. The supermarket
makes money from the sale since it is entered into the accounting system.
2. Customer Order & sales: Customers browse through aisles, choosing what they want. Each item is
scanned by the cashier, who enters the product's information, price, and quantity into the POS system.
Consumers can use loyalty programs, credit/debit cards, or cash to make payments. Payment data is
captured by the POS system.
3. Deposit Reconciliation: When their shift ends, cashiers balance the cash they received with the POS
information. Cash is secured by deposits. To guarantee accuracy, bank statements are compared with all
payment methods (cash, credit cards, etc.).
4. Credit Sales Management: When a consumer utilizes credit, certain predetermined standards are
applied to determine how creditworthy they are. Credit sales result in the creation of invoices that list the
products acquired, the total cost, and the payment deadline. To guarantee payments on time, the
supermarket keeps track of its receivables and employs collection techniques.

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5. Reporting & Analysis: Reports on product popularity, sales trends, customer demographics, and overall
performance are produced by analyzing sales data. Financial statements such as the income statement and
balance sheet include sales revenue, which provide information about the supermarket's financial standing.
Financial statements and sales reports are used to track performance, pinpoint opportunities for
development, and assist in decision-making for the organization.

Expenditure Cycle
The spending cycle at a supermarket controls the movement of money out, from ordering and receiving
items to paying suppliers, whereas the revenue cycle concentrates on generating revenues. It's equally
important for preserving financial stability and cost effectiveness.
Goods Receipt and Inspection: Receiving staff compares the quantity, quality, and specifications of the
items with the purchase order as they arrive. Stock levels are updated when items are received and entered
the inventory management system. Any differences between what was ordered and what was delivered are
reported to the supplier and quickly fixed.

Purchase Order Creation: The inventory department determines the requirement for purchases by
analyzing sales data and stock levels. The necessary products are given together with their quantity, specs,
and preferred delivery dates. Qualified suppliers are selected based on price, quality, and dependability
after comparing competitive bids. Purchase orders with the terms agreed upon are created and issued to
selected vendors.

Reporting and Analysis: Reports on supplier performance, cost trends, and procurement efficiency are
produced by analyzing expenditure data. Budget allocations and actual expenditure are compared to find
any variances and take remedial action. The performance of suppliers is routinely assessed considering
variables such as cost, lead times, and caliber of output.

Accounts Payable Management: After receipt, supplier invoices are checked for correctness against
purchase orders and delivery receipts. After verification, authorized staff approve invoices for payment. In
accordance with the terms of the agreement, payments are paid to suppliers, taking early payment discounts
or credit periods into account.

Conversion Cycle

Every supermarket aims to increase sales and profitability in the cutthroat world of retail. This is where the
conversion cycle, which aims to turn infrequent visitors into devoted patrons, comes into play. Building
enduring connections is the culmination of an ongoing process that begins with consumer attraction.

Conversion & Purchase: Smart purchases and larger basket sizes are promoted by well-timed suggestions,
eye-catching displays, and strategic product placement. Efficient payment methods such as mobile
payments, contactless solutions, and self-checkout kiosks reduce cart abandonment and speed up the
process.

Consideration & Engagement: A large assortment of premium, freshly made goods in a range of
categories meets the demands and tastes of a wide range of customers. Loyalty programs, exclusive deals,
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and competitive pricing encourage shoppers to select your store over rivals. Positive aspects of shopping
include the quick and easy checkout procedure, the clean and well-maintained facilities, and the kind and
informed personnel.

Awareness and Attraction: Customer curiosity is piqued and drawn in by visually appealing store displays,
engaging social media campaigns, and eye-catching advertising. Customers find it easy to visit and
purchase at this business because of its convenient location, plenty of parking, and simple layout.

Payroll & Human Resources

A specialized payroll and human resources (HR) department is essential for efficient operations and a
contented, productive team in the fast-paced world of supermarkets. Below is a description of their
principal functions within a supermarket setting:

Payroll reporting: Makes tax obligations, benefit expenses, and employee pay reports that offer
information for company decision-making.

Recruitment & Selection: Draws in and employs competent applicants for a range of grocery roles,
considering their qualifications, background, and cultural fit.

Compensation & Benefit Management: Effectively manages benefit programs and oversees employee
compensation packages, which include basic pay, bonuses, and incentives.

Big Data and Data Analytics for data-driven decision making

Big Data
In the context of supermarkets and retail, big data is essential for facilitating data-driven decision-making.
Supermarket personnel traverse a large ocean of data; each scan, swipe, and step have a narrative to tell.
Deep diving into this ocean, big data uncovers potent insights that enable data-driven decision making and
catapult supermarkets into prosperity.

Sales figures, customer demographics, product popularity: These are the checkpoints that direct tailored
offers and inventory management.

Loyalty card swipes, foot traffic patterns: These disclose underlying currents that influence focused
marketing campaigns and well-organized shop design.

Social media chatter, online reviews: These hints from below provide priceless information about
consumer attitude and new trends.

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Data Analytics
Data analytics becomes a superpower in the fast-paced world of supermarkets, where shelves are bursting
with options and customers' wallets are whispering their preferences. It converts unprocessed data into
useful insights, enabling supermarkets to make informed decisions that increase revenue and satisfy
customers.

Personalized Customer Experiences: Client’s secrets can be revealed through data. Analytics helps
convert infrequent buyers into devoted followers by customizing loyalty programs, suggestions, and
incentives to everyone's needs.

Dynamic Pricing and Promotions: Set your product prices to succeed. Based on demand elasticity,
customer segmentation, and competitive research, data analytics shows the best price strategies. Targeted
consumer engagement and sales are fueled by targeted discounts and promotions.

Efficient Operations and Cost Reduction: Data on staffing needs provides a narrative. Analytics
optimizes worker scheduling by considering periods of high consumer traffic, which lowers labor expenses
and raises service standards. Additionally, energy waste is made visible, enabling cost- and system-saving
system modification.

Big Data and analytics provide a wealth of knowledge to successfully negotiate the cutthroat retail
environment. Supermarkets can make well-informed decisions, streamline processes, and provide each
client with a tailored and enjoyable shopping experience by utilizing data.

References:
https://www.researchgate.net/figure/Supermarket-Revenue-and-Inventory-Cycle-and-
Enterprise-systems_tbl1_266055055
https://www.scribd.com/presentation/337868784/The-Revenue-Cycle
https://www.accountingtools.com/articles/expenditure-cycle

https://www.researchgate.net/figure/Supermarket-Revenue-and-Inventory-Cycle-and-
Enterprise-systems_tbl1_266055055
https://www.epaysystems.com/grocery-chain-workforce-hcm/

https://www.investopedia.com/terms/f/financialsupermarket.asp
https://expert360.com/articles/supermarket-retail-big-data
https://www.researchgate.net/publication/228847850_Data_driven_decision_support_to_su
permarket_layout
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