System Analysis on Apotek Kartini

GROUP 5
ARINA FELITA (12030117190235)
AHMAD ABDUL JABBAR (12030117190240)
PAULINE STEVINIA NUGROHO (12030117190242)
DEANEIRA GUPITA JATMIKO (12030117290245)

This Paper Is Made as A

Requirement for Final Assignment of Accounting information System

Lecturer

Surya Raharja, S.E., M.Si., Ph.D, CA.

FACULTY OF ECONOMICS AND BUSINESS

ACCOUNTING MAJOR

INTERNATIONAL UNDERGRADUATE PROGRAM

DIPONEGORO UNIVERSITY

SEMARANG, 2019
 Table of Contens
I. INTRODUCTION ................................................................................................................................ 3
II. SWOT AND SYSTEM ANALYSIS .................................................................................................... 5
A. SWOT Analysis ................................................................................................................................ 5
REVENUE CYCLE .............................................................................................................................. 7
EXPENDITURE CYCLE ..................................................................................................................... 8
HUMAN RESOURCES CYCLE ......................................................................................................... 9
GENERAL LEDGER AND REPORTING SYSTEM ....................................................................... 10
B. SOLUTIONS AND SUGGESTION ............................................................................................... 11
EXPENDITURE CYCLE ................................................................................................................... 11
GENERAL LEDGER AND REPORTING CYCLE .......................................................................... 14
HUMAN RESOURCES AND PAYROLL ........................................................................................ 16
REVENUE CYCLE ............................................................................................................................ 17
 I. INTRODUCTION
The word system is derived from Greek word Systema, which means an organized
relationship between any set of components to achieve some common cause or objective. A
system is an orderly grouping of interdependent components linked together according to a plan
to achieve a specific goal.

System analysis is the process of observing systems for troubleshooting or development

purposes. It is applied to information technology, where computer-based system require defined
analysis according to their makeup and design. It is also a process of collecting and interpreting
facts, identifying the problems, and decomposition of a system into its components. System
analysis is conducted for the purposes of studying a system or its parts in order to identify its
objectives. It is a problem solving technique that improves the system and ensures that all the
components of the system work efficiently to accomplish their purpose. The word analysis
defines what the system should do.

To analyze the system that is already exist in a company, we choose Apotek Kartini to
identify how does the system work in a pharmacy. Apotek Kartini is a family-owned pharmacy
and was established since 1972. We have performed an interview in order to get a brief insight
on how the revenue cycle, expenditure cycle, and human resources work in the company.

Apotek Kartini is a local pharmacy that located on Jl. Kartini No.42 D, Semarang.
Similar to other Pharmacies, Apotek Kartini sells medicine, medical equipment (such as first-aid
kit), as well as general hygiene utilities ( women needs, facial soap, etc. ). It was established on
13th of August,1972 and found by Gang Thiam Hoo. Customers also can purchase products by
phone to (024) 86041416 and it will be delivered on the desired location (though there may be
restriction of deliverance area).

In 1966, the founder of Apotek Kartini, Gang Thiam Hao, was working in a well-known
pharmacy in Indonesia which is Kimia Farma as a salesman. During his period of work, he also
started to acknowledge kinds of medicine. After six years of working in the field of health
sciences and gone through a lot of experience in safe and effective medication use, Gang Thiam
Hoo finally decided to establish his own pharmacy, Apotek Kartini, which named after where it’s
located.
 Gone through a long period of time, Apotek Kartini is one of success local pharmacy in
Semarang. With its integrity, truthfulness, and continuous satisfying quality of service, Apotek
Kartini has been appointed as a trusted pharmacy to the residents nearby.
 II. SWOT AND SYSTEM ANALYSIS
A. SWOT Analysis
SWOT (Strength, Weakness, Opportunity, and Threat) Analysis is a very useful
technique for understanding the strengths and weaknesses and identifying both the opportunities
open to the company and the threats that the company is facing. What makes it particularly
powerful is that SWOT can help to uncover opportunities that are well-placed to exploit. And by
understanding the weaknesses of a company, we will be able to manage and eliminate threats
that would otherwise catch whoever is in charge unaware. We will also be able to craft a strategy
that helps the company to grow and to compete with other competitors successfully in the
market.

The SWOT analysis for Apotek Kartini that we have concluded is explained below.

1. Strengths: Apotek Kartini has licenses, tax obligations and business retribution in
accordance with the applicable provisions, so that if there is an inspection from
the officer, Providing credit payments for customers who have met the
requirements, and they have pocketed a business permit and have contact
telephone numbers for bookings so customers don't have to come to the
pharmacy.

2. Weaknesses: There is still a lack of drug preparations on recipes that are often
needed by patients. And also, it often overwhelmed in work because there is still a
lack of workforce so customers must often wait long enough.

3. Opportunities: It has a strategic business place between the roadside and near the
hospital and they Offer credit payments from PBF (Large Pharmaceutical
Manufacturers) with competitive interest and discounts.

4. Threats: There are many similar businesses are Apotek Kartini, old and new
pharmacies equipped with Doctor Practices which resulted in increased
competition for them. And the significant one is Technological development.
There are many internet sites online pharmacies so promotions that are easy to
access see a list of goods and prices. Also, for technological development. There
are many internet sites online pharmacies so promotions that are easy to access
see a list of goods and prices
REVENUE CYCLE
 The revenue cycle is a recurring set of business activities and related information
processing operations associated with providing goods and services to customers and
collecting cash in payment for those sales. There are four basic activities of revenue cycle
:
o 1. Sales order entry
o 2. Shipping
o 3. Billing
o 4. Cash collections

In its transaction process, Apotek Kartini doesn’t issue payment proof (bill) to its buyers.The
products sold are recorded per tranasaction, and later on will be accummulared in the end of the
day to calculate daily cost of goods sold.

For delivery services, Apotek Kartini is registered on Halodoc platform. The "Pharmacy
Delivery" feature is managed by PT Mensa Medika Investama ("PT MMI") and connected to the
GO-MED feature managed by PT Aplikasi Karya Anak Bangsa ("GO-JEK") on the GO-JEK
application as a third party delivering the order. drugs or medical devices or household health
supplies to customer. So by registered at halodoc, if there is any customer who use the halodoc
application, the system will looking for the nearest pharmacy and then the medicine could be
sent by GO-JEK or they can take at those pharmacy.

Payment system at Apotek Kartini, the customer mostly using cash payment, but Apotek Kartini
also accept payment using debit card but it takes more time than cash payment.

The illustration in flowchart form of selling goods at Apotek Kartini in a flowchart form is
provided in the proceeding page.
EXPENDITURE CYCLE
 The expenditure cycle is a recurring set of business activities and related information
processing operations associated with the purchase of and payment for goods and
services. There are four basic activities os expenditure cycle :
1. Ordering materials, supplies, and services
2. Receiving materials, supplies, and services
3. Approving supplier invoices
4. Cash disbursements

In replenishing its supplies, Apotek Kartini order the products according to its needs. They
supplied the products through a direct salesman that goes store to store to get the purchase list of
each stores and will be processed from the supplier or by phone. In the end of each month,
Apotek Kartika will make the payments by collecting all of the bill of payments of the purchases
that has been made in that month from the suppliers.After making the payments,the suppliers
will send the payment receipt to the pharmacy.
Below is the illustration of replenishment of supplies in flowchart form.

HUMAN RESOURCES CYCLE

 The human resources management (HRM)/payroll cycle is a recurring set of business
activities and related data processing operations associated with effectively managing the
employee workforce. There 6 main tasks in human resources cycle :
1. Recruiting and hiring new employees
2. Training
3. Job assignment
4. Compensation (payroll)
5. Performance evaluation
6. Discharge of employees due to voluntary or involuntary termination

Apotek Kartini has a total 13 employees that works in the store form 8 am to 9 pm. There are
morning shifts and evening shift. On the morning shift there are 6 employees on duty and on the
evening there are 7 people on duty. The employees consist of cashier that receive the payment
from the customer service, customer service to serve the customers and give an option of
medication, storage assistant who help at the storage to restock the medicine from the storage,
pharmacist who have the license of pharmacist and come to the Apotek 3 times in a week just to
control the Apotek and check the medicine stock.

For the recruitment process, Apotek Kartini open the job vacancy through the newspaper or
directly put the announcement at the pharmacy. They have to send their CV and letter of
application with minimum educational background D3 pharmacy. After that they will select
some of them to come and have an interview.

Currently there are no regular evaluation of their service and so far they had served a satisfying
quality of service. However, in several occasion when the store is overcrowded, Apotek Kartini
can’t manage a fully good services because they couldn’t know which customer comes first so it
can cause which came first was not served first.

The payroll system is differentiated into two type, weekly and monthly, which varies between
employees. Their salary payment will be based on ther work performance as well as their record
on the daily time sheet. Apotek Kartini currently still using paper-based time sheet that has to be
filled manually every time they arrive and before off-duty.

GENERAL LEDGER AND REPORTING SYSTEM

In terms of reporting system, Apotek Kartini doesn’t have a fixed bookkeeping system. Apotek
Kartini simply calculate the profit by subtracting sales with cost of goods sold.

the calculation of income statement is also less detailed because lack of details of
information that are inputed, such as transactions that used petty cash and calculation of
depreciations.

Below are the Reports of Calculation of Cost of Goods Sold and the Income Statement for
Apotek Kartini.
B. SOLUTIONS AND SUGGESTION
EXPENDITURE CYCLE
An expenditure cycle is a set of purchasing decisions and actions. It's the repetitive
process of creating purchase orders and ordering goods and services, receiving these
items, approving the invoices for these items and services, and paying the invoices.
Assume that a company periodically buys office supplies. The expenditure cycle
would be creating purchase orders from various employee requests for more paper,
pencils and print cartridges, and calling the office supply store to place the order
using the purchase order. Once the items were delivered, accounting would approve
the invoice for payment and cut the check.

It is important for any company to establish a system for its expenditure cycle. Doing
so reduces fraud and the potential for fraud. Putting a system in place to standardize
the ordering process from when you order to who you order from and how you pay
significantly reduces the opportunity for embezzlement. Hence, if vendors must be
pre-approved or approved before ordering, no employee can “pay” fake or fraudulent
vendors. So, there would be no employee to write unauthorized checks. Therefore, a
written expenditure cycle can strengthen the company’s accounting and financial
infrastructure.

In replenishing its supplies, Apotek Kartini order the products according to its needs
and to pay it from cash disbursements in the end of month. They supplied the
products through a direct salesman that goes store to store to get the purchase list of
each stores and will be processed from the supplier. Although Apotek Kartini may
have a continuing cycle of replenishing its supplies from the supplier, it is still not
effective because Apotek Kartini does not make a detailed financial statements to
record all of the transactions. And does not track the purchases to make sure that the
goods are in hand correctly. Their purchasing system is also not clear. Without a
purchasing system and a clearly defined expenditure cycle, you have to personally
approve every purchase, every invoice and every vendor.

The solutions to the problems that are faced by Apotek Kartini can still be fixed. First
of all, Apotek Kartini can determine which goods and services need to be ordered.
Most goods to be ordered are needed by the production process. To do so, the system
calculates the components that need to be on hand for scheduled production and
substracts out on-hand and unallocated raw materials to arrive at the amounts or
administrative function. When goods are being purchase for ongoing production, the
system will present the purchasing staff with a preliminary purchase order, using the
preferred supplier state in the inventory master file for each item to be purchased.
Then the purchasing staff reviews and approves these orders, which are then either
sent electronically direct to suppliers, or printed and mailed to them. When non-
standard goods and services are being requested, the purchasing staff investigates
possible suppliers, selects the best one, and issues them a purchase order. As goods
are received, the receiving department accesses open purchase orders in the system
and enters the quantities received. When supplier invoices are received, they are
logged into the system by the accounts payable staff. The system then compares
these invoices to the authorizing purchase orders and receiving information to
determine whether the invoices can be paid. There can be a significant amount of
manual reconciliation work at this stage. The outcome is a set of invoices that
have been approved for payment. The system schedules payments to suppliers
based on the predetermined payment terms with each one. When a scheduled
payment date arrives, the system processes a batch of payments, which will either
be in the form of electronic funds transfers or checks.

Below is the illustration of replenishment of supplies solution in flowchart form.

GENERAL LEDGER AND REPORTING CYCLE

As been mentioned before, Apotek Kartini didn’t implement accounting cycle in their
reporting system which may leads to inaccurate financial report. Therefore, an
accounting cycle can be built to make sure the system is going well in the company
and can increase the work efficiency in the pharmacy. An accounting cycle is the
collective process of identifying, analyzing, and recording the accounting events of a
company. The series of steps begins when a transaction occurs and end with its
inclusion in the financial statements. Additional accounting records used during the
accounting cycle include the general ledger and trial balance.
Here we provide you the data flow diagram of the general ledger and reporting cycle
of Apotek Kartini.

I.
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
X.
XI.
XII.
XIII.

The data flow diagram begins its accounting cycle with the recording of
transactions using journal entries. The entries are based on the receipt of an invoice,
recognition of a sale, or completion of other economic events. After the company posts
journal entries to individual general ledger accounts, an unadjusted trial balance is
prepared. The trial balance ensures that total debits equals the total credits in the financial
records. At the end of the period, adjusting entries are made. These are the result of
corrections made and the results from the passage of time. Upon the posting of adjusting
entries, a company prepares an adjusted trail balance followed by the financial
statements. An entity closes temporary accounts, revenues and expenses, at the end of the
period using closing entries. These closing entries transfer net income into retained
earnings. Finally, a company prepares the post-closing trial balance to ensure debits and
credits match.

Below is the table of chart of accounts that can be included in the general ledger of
Apotek Kartika.
Chart Of Accounts

Account Account
Account Name Account Name
Code Code
100-199 Current Assets 400-499 Equity Accounts
101 Cash 410 Retained Earnings
102 Petty Cash
120 Accounts Receivable 500-599 Revenues
130 Notes Receivable 501 Cash Sales
150 Inventory 502 Credit Sales
160 Supplies 530 Miscellaneous Revenue
170 Prepaid Rent
200-299 Noncurrent Assets 600-799 Expenses
200 Land 600 Cost Of Goods Sold
210 Building 611 Wages Expense
215 Accumulated Depreciation-Buildings 620 Payroll Tax Expense
230 Equipment 630 Rent Expense
235 Accumulated Depreciation-Equipment 640 Supplies Expense
240 Furnitures & Fixtures 701 Depreciation Expense-Buildings
245 Accumulated Depreciaiton-Furniture & Fixtures 702 Depreciation Expense-Equipment
250 Other Assets 703 Depreciation Expense-Furniture & Fixtures
710 Income Tax

300-399 Liabilites 900-999 Summary Accounts

300 Accounts Payable 910 Income Summary
310 Wages Payable
321 Employee Income Tax Payable
322 FICA Tax Payable
323 Federal Unemployment Tax Payable
324 State Unemployment Tax Payable
360 Other Assets

HUMAN RESOURCES AND PAYROLL

Although the pharmacy still uses the traditional system, we don’t think it is realistic to
implement the digital system such as RFID because it will cost too much for a small retail store
like Apotek Kartini. Instead, there has to be a person to manage and oversee the manual time
sheet to avoid fraudulent acts. This job could be assigned to the cashier of the pharmacy, because
they’re the most trusted employees in the store by the owner.

As for the over-crowded situation, Apotek Kartini needs a better customer flow
management by setting a queue line in specific rush hours, and also to differentiate its queue
between customers who still needs consultation and those who only directly want buy the
medicine. This also can be supported by using the queue number system.

REVENUE CYCLE

As it’s already mention before, Apotek Kartini doesn’t issue payment proof (bill) to its
buyers. Although sometimes the pharmacy is crowded but we suggest they still give proof of
payments to the buyers since it’s important to give the proof. It is generally good practice to offer
a receipt to your customers at the time of purchase, regardless of the total amount.

Besides receipts, there are other types of proof of purchase that Apotek Kartini can give
to the customers, or that customers can use to prove that they purchased goods or services from
Apotek Kartini. Types of proof of purchase may include:

 a credit or debit card statement

 a lay-by agreement
 a warranty card showing the supplier’s or manufacturer’s details and the date or amount
of the purchase
 a serial or production number linked with the purchase on the supplier’s or
manufacturer’s database
 a copy or photograph of the receipt.

Because receipts is important as businesses keep copies of receipts for internal accounting.
Receipts allow for accurate tracking of sales and revenue. When a question arises about the
details of particular transactions, the company's bookkeeping or accounting department can
reference receipts. So neither the employee nor the buyers couldn’t misuse the transaction if
there’s no proof of payment.
 Since this is not a big company, we suggest apotek kartini to give a hand-writing receipts that
already inlude the business name which is Apotek Kartini, the date of supply, details on the
product or service, the price. To substract time, we suggest that the customer service already
prepared the paper that already has the business name, and date of supply.
Bellow is the suggestion illustration in flowchart form of selling goods at Apotek Kartini