1. 1 WELCOME EVERYBODY TO THE PRESENTATION www.AssignmentPoint.com

2. 2 ACCOUNTING INFORMATION SYSTEM OF KEYA COSMETICS LIMITED www.AssignmentPoint.com

3. 3 Generally In KEYA Cosmetics has the following (AIS) business process -- Revenue process Expenditure Process Conversion Process Administrative process www.AssignmentPoint.com

4. 4 THE REVENUE PROCESS OF KEYA COSMETICS COMPANY LIMITED www.AssignmentPoint.com

5. 5 Major Processes in the Sales & Collections Cycle of Keya Cosmetics Sale of goods and services (Revenue) Payments received for goods and services (Collection) Goods returned by and claims received from customers (Returns) www.AssignmentPoint.com

6. 6 Some Goods of KEYA cosmetics www.AssignmentPoint.com

7. 7 Steps in the Revenue Process 1.Receiving customer orders 2.Authorizing credit terms and shipment 3.Confirming orders 4.Executing orders 5.Recording the shipments or services performed www.AssignmentPoint.com

8. 8 Steps in the Revenue Process (Cont.) 1.Receiving customer orders Computer controls: Customer checks Valid customer number Self-check algorithm Field checks Key characteristics Completeness of required fields Reasonableness checks Order quantities Product combinations Clear procedures for resolving computer red flags Periodic reports on Open Orders www.AssignmentPoint.com

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10. 10 Steps in the Revenue Process (Cont.) 2.Authorizing credit terms and shipment Computer controls Credit check for repeat customers Inventory availability Credit review for new customers Credit worthiness Existence Separation of Credit & Sales Departments When approved a Sales Order is produced Prenumbered and controlled www.AssignmentPoint.com

11. 11 Steps in the Revenue Process (Cont.) 3.Confirming orders Customer verification of sales order accuracy Items Quantities Price Confirm shipping date www.AssignmentPoint.com

12. 12 Steps in the Revenue Process (Cont.) 4.Executing orders Assembling goods for shipment Picking list (sales order) Verify items picked and update inventory Move items to shipping dock Ship ordered goods Packing slip (sales order) Verify items packed (agree picking & sales order) Shipping report and bill of lading Prenumbered and controlled Periodic reports on Open Shipments Separation of Warehousing & Shipping www.AssignmentPoint.com

13. 13 Ship Ordered Goods www.AssignmentPoint.com

14. 14 Steps in the Revenue Process (Cont.) 5.Bill the customer and record the sale Agree information on and existence of customer order, sales order, and shipping report. Prepare a Sales Invoice »Prenumbered and controlled »Computer controls Send sales invoice to customer Investigation of missing or repeated document numbers www.AssignmentPoint.com

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16. 16 Expenditure Processes of Keya Cosmetics www.AssignmentPoint.com

17. 17 Purchasing Processes www.AssignmentPoint.com

18. 18 Receive Purchase Requisition www.AssignmentPoint.com

19. 19 KEYA COSMETICS Purchase Requisition Department- Requisition no- Date-23.12.2011 Sl no- Product DescriptionQuantityRemark 1.Soap25 2.Detergent25 3.Ball soap25 4.Washing powder25 5.lip gel25 6.Shaving cream25 7.Vaseline25 8.Lotion25 Total 200 www.AssignmentPoint.com

20. 20 Keya Cosmetics NEED Making Decision Yes No www.AssignmentPoint.com

21. 21 KEYA COSMETIC Select Vendor B C D www.AssignmentPoint.com

22. 22 Sl no- Product DescriptionQuantityUnit PriceTotal Price 1.Soap2515375 2.Detergent2530750 3.Ball soap2512300 4.Washing powder25 625 5.lip gel25 625 6.Shaving cream2535875 7.Vaseline2515375 8.Lotion25701750 Total 5675/= Purchase Order Keya Cosmetics Date-23.12.2011 To B Company Order No- www.AssignmentPoint.com

23. 23 Receive And Inspect Goods KEYA COSMETICS www.AssignmentPoint.com

24. 24 DateDescriptionRfDr.Cr. 23.12.20 11 Purchase Dr. Account Payable Cr. 0000 Accounts Payable After Receiving Goods Get The Invoice and Do Match- If Match then Updates Accounts payables Record- If Not Then reconcile Vendor- KEYA COSMETICS www.AssignmentPoint.com

25. 25 Update Inventory Record KEYA COSMETICS www.AssignmentPoint.com

26. 26 Update General Ledger DateDescriptionDr.Cr.Dr. Balance Cr. Balance 23 Dec 2011 Purchase 0000 Total 0000 Accounts Payable KEYA COSMETICS www.AssignmentPoint.com

27. 27 Update General Ledger DateDescriptionDr.Cr.Dr. Balance Cr. Balance 23 Dec 2011 Accounts Payable 0000 Total 0000 Purchase KEYA COSMETICS www.AssignmentPoint.com

28. 28 Purchase Returns Processes Reasons for Returns: ►Goods received are unacceptable: ► Quantity or quality discrepancies ► Damage or defects ► Errors in the type of goods delivered or ordered ► Discrepancies in the terms of the purchase ► Timing issues KEYA COSMETICS www.AssignmentPoint.com

29. 29 Rejected Goods-Authorized Purchase Returns Processes KEYA COSMETICS www.AssignmentPoint.com

30. 30 Match Documents Purchase Returns Processes KEYA COSMETICS www.AssignmentPoint.com

31. 31 Debit Memo Purchase Returns Processes KEYA COSMETICS www.AssignmentPoint.com

32. 32 Accounts Payable DateDescriptionRfDr.Cr. 23.12.20 11 Account Payable Dr. Purchase Return Cr. 0000 Purchase Returns Processes KEYA COSMETICS www.AssignmentPoint.com

33. 33 Purchase Returns Processes Return Goods to the Vendor KEYA COSMETICS www.AssignmentPoint.com

34. 34 Purchase Returns Processes Receive Refund From Vendor KEYA COSMETICS www.AssignmentPoint.com

35. 35 Update Inventory Record Purchase Returns Processes KEYA COSMETICS www.AssignmentPoint.com

36. 36 Update General Ledger DateDescriptionDr.Cr.Dr. Balance Cr. Balance 23 Dec 2011 Purchase Return 0000 Total 0000 Accounts Payable KEYA COSMETICS www.AssignmentPoint.com

37. 37 Update General Ledger DateDescriptionDr.Cr.Dr. Balance Cr. Balance 23 Dec 2011 Accounts Payable 0000 Total 0000 Purchase Return KEYA COSMETICS www.AssignmentPoint.com

38. 38 Conversion process KEYA Cosmetics How organizations convert resources into salable products and services Chiefly applicable to manufacturing, but can be applied to service and retail as well Resources –Direct material –Direct labor –Factory overhead Systems –Job order –Process –Hybrid www.AssignmentPoint.com

39. 39 Conversion process of KEYA Cosmetics Resources –Material: major components of the finished product –Labor: salaries, wages and benefits of production personnel –Overhead: everything else in the production operation www.AssignmentPoint.com

40. 40 Systems –Job order: goods are differentiated; produced “to order” –Process: goods are homogeneous; produced in mass quantities –Hybrid: characteristics of both systems; for example, a standard unit is customized www.AssignmentPoint.com

41. 41 Conversion process of KEYA Cosmetics Documents Materials requisition –Production requests raw materials from warehouse –Originates in production –Terminates in warehouse Job cost sheet –Summarizes costs in job costing system –Originates in production –Terminates in accounting Labor time ticket –Accumulates direct labor data –Originates in production –Terminates in accounting www.AssignmentPoint.com

42. 42 Job cost sheet –Summarizes costs in job costing system –Originates in production –Terminates in accounting Labor time ticket –Accumulates direct labor data –Originates in production –Terminates in accounting Conversion process www.AssignmentPoint.com

43. 43 Financing process Common transactions also include: –Long-term debt transactions (issuance and repayment) Data needed: principal, coupon and market interest rates, term, number of interest payments per year, lender data –Dividend distributions Data needed: dividend type (cash, stock, property), shareholder identification data, amount of dividend, dates (declaration, record, distribution) www.AssignmentPoint.com

44. 44 A Partial Organization Chart of a Logistics Function www.AssignmentPoint.com

45. 45 Three Concepts of Business Logistics of KEYA Cosmetics Total Cost Concept Trade-off Concept Systems Concept www.AssignmentPoint.com

46. 46 Forms of Data Input Customer order Bill of materials Operations list/Routing slip Production schedule Production order Materials issue slip/Materials requisition Labor job-time ticket Move ticket/traveler Inspection report(s) www.AssignmentPoint.com

47. 47 The Administrative process of KEYA Cosmetics www.AssignmentPoint.com

48. 48 Administration Features On-Screen help is available for most functions.On-Screen help is available for most functions. Easily manage Products, Categories, Options, Customers, Shipping, Locations, Orders and much more.Easily manage Products, Categories, Options, Customers, Shipping, Locations, Orders and much more. Upload Product Images and Software Items from your browser to your web server.Upload Product Images and Software Items from your browser to your web server. Store shipping rates are calculated by order weight and/or price. The amount charged for shipping can be calculated via fixed price or percentage. Ability to assign Free Shipping to an individual product.Store shipping rates are calculated by order weight and/or price. The amount charged for shipping can be calculated via fixed price or percentage. Ability to assign Free Shipping to an individual product. Support for UPS, USPS and Canada Post online shipping rates.Support for UPS, USPS and Canada Post online shipping rates. Configure sales tax per postal / zip code, municipality, state or country (billing or shipping address).Configure sales tax per postal / zip code, municipality, state or country (billing or shipping address). www.AssignmentPoint.com

49. 49 Administrator KEYA www.AssignmentPoint.com

50. 50 Product Inventory KEYA www.AssignmentPoint.com

51. 51 Manage User KEYA Cosmetics www.AssignmentPoint.com

52. 52 Payment Server Pay Pal ServicePay Pal Service Visa Card ServiceVisa Card Service Debit Card ServiceDebit Card Service Credit Card ServiceCredit Card Service www.AssignmentPoint.com

53. 53 Thank You www.AssignmentPoint.com