(ACN 441)

Delta Airlines and Singapore Airlines

Submitted By
Anwar Huda Shahaj- 1630712
Fahim Islam- 1610277
Tahmina Ali- 1610290
Kazem Reza Khan- 1631383
Md. Abu Saem Khandaker- 1421122
1st December, 2019

School of Business
Independent University, Bangladesh
PART 1:
Use of AIS at Beximco Pharmaceuticals

Beximco Pharmaceuticals Ltd. (BPL) is one of the largest manufacturers of pharmaceutical

products in the country. To manage this enormous business, to keep track of everyday
transactions, to facilitate management for different types of decision-making and to keep the
stakeholders informed with different kind of information in different times are a set of difficult
tasks for any company. Accounting Information System (AIS) is one of the major information
system that play a vital role in this regard.

Accounting Information System.

The dynamic and systematic Accounts and Finance department with established network and
different sophisticated and user friendly software are the keys for such organized and reliable
AIS that BPL possesses. Over the years the AIS of BPL has been developed to meet almost all
the accurate and timely information needs both for the internal and external requirements.

Accounting Information System of Beximco Pharma

AIS is a subsystem of a broader information system that encompasses all information generating
activities.
The AIS consists of:
People
Procedure
Information technology.
It performs the following three functions in the organization:
It collects and stores data about activities and transactions so that the organization can review
what has happened.
It processes data into information that is useful for making decisions that enable management to
plan, execute and control activities.
It provides adequate controls to safe guard the organization assets, including its data. These
controls ensure that the data is available when needed and that it is accurate & reliable.
Accounting Software
BPL uses a software known as ‘MAPICS’ which stands for ‘Management Accounting Planning
Information Control System’. This software was developed and launched by IBM corporation in
1980. Its Dos based. The software is a batch processing software. As BPL transactions occur in
batches.
BPL uses the following modules of MAPICS:
 General Ledger.
 Budget Preparation.
 Financial Ratio Analysis.
 Fixed Asset Accounting.
 Accounts Receivable.

Apart from MAPICS, BPL uses some other software for accounting purpose such as:
 Fixed Assets Management System.
 Payroll System.
 Inventory Control System.
 Sales and Billing System.
 Production Information System.
Expenditure Cycle of BPL
As the expenditure cycle is a recurring set of business activities and relates data with purchase
and payment of goods and services. Its main objective is to minimize the total cost of acquiring
and maintaining inventories, supplies and other necessary functions.
The three activities of expenditure cycle are:
Ordering goods
Receiving and storing goods
Paying for the goods

Activity 1: Ordering goods

Processing purchase order:
When inventory drops the department firstly identify the amount required then creates the list
and then gets approval from the head. It is then sent to the purchase department.
When it comes to property plant and equipment the user department creates a budget which is
then approved or disapproved by the department head. If approved the purchase requisition is
sent to the purchase department.

Documents and procedures:

The purchase requisition is a document that identifies the following:
1. requisition and item number
2. specifies the delivery location and date needed
3. specifies descriptions, quantity, and price of each item requested
4. may suggest a vendor
The purchase order document formally requests a product to be sold and delivered at the specific
place. It also promises to pay for the goods when the contract is accepted.
Activity 2: Receiving and Storing Goods, Supplies and Services
The next activity involves the receipts and storing of goods:

Documents and procedures:

Each report has specifics details about each delivery which include data received, shipper and
vendor, and purchase, order number. For each item there are numbers, description and quantity.

Activity 3: Pay for Goods and Services

1. The accounts payable department approves the invoice
2. The cashier is responsible for the payment

The Key decisions AIS helps to Identify:

1. The perfect amount of inventories should be stored
2. Which vendor or supplier has the best quality
3. Where the goods should be kept.

Information needs:
AIS provides vital information which are needed for decision making and useful for expenditure
cycle. For providing these information AIS must perform the following task.

 When and how much additional inventory to order.

 Select the appropriate vendors
 Verify the accuracy of vendor invoices.
 Whether purchase discounts should be taken.
 Efficiency and effectiveness of the purchasing department
 Analyses of vendor performance such as on-time delivery, quality, etc.
 Time taken to move goods from the receiving dock into production
 Percentage of purchase discounts taken
Input Information
Material Receiving Report (MRR) / Goods Receiving Report (GRR)
This report is produced by the inspection department or receiving department. This report shows
order number, name of the material and suppliers with date of arrival of products. This report is
also used as inspection report. Because it mentions information such as:
 Quantity ordered before quality test
 Quantity received after quality test
 Quality
 Whether as per specification or not
 Country of origin
 Deliver in time or not
 Pricing
 Legal requirements etc.

Invoice / Bill
This document is provided by suppliers that includes quantity, amount, bill number with data.

Output information
Output information can be of two types:
1. Information that effects the annual report figures.
2. Information for internal reporting.
MAPICS Entries:
Beximco’s software MAPICS is custom made for them which does both financial and
management accounting needs
 Database Entry
 Journal Voucher
 Database Entry: This entry is made to maintain a database of L/Cs and shipments. The entry
includes:
1. L/C Number
2. PC Number
3. Shipment Date
4. Retirement Date

Revenue Expenditure Cycle

Revenue Cycle:
The revenue cycle is continuous running business activity and has related data of processing
operating associated with goods and service for customers. It also includes collecting cash for
sales. It has four basic revenue cycle which are given below:
 Sales order entry
 Shipping
 Billing and accounts receivable
 Cash collections

Sales order entry:

Sales order entry process entails three steps:
1. Taking the customer’s order
2. Checking and approving the customer’s credit
3. Checking inventory availability
Shipping:
The second basic activity in the revenue cycle – filling customer orders and shipping the desired
merchandise entails two steps:
1. Picking and packing the order
2. Shipping the order

Billing and accounts receivable:

The third basic activity in the revenue cycle involves:
1. Billing customers
2. Updating accounts receivable

Cash collection:
The fourth step in the revenue cycle is cash collections. It involves:
1. Handling customer remittances
2. Depositing remittances in the bank

Conclusion
Keeping up with the competition of today’s worlds having everything, every time is a must.
There are two things that will give them a competitive edge they are:
 Quality of managerial decision.
 The ability to adapt to new technology
BPL has a reputation on maintaining their quality as proved by their market. They are also have a
adaptability to get into a new technology. Their MIS department is constantly working on the
development of new software and try to improve the current software. They are the first ever
company to implement ER solution system.
PART 2:
Company Background:
Allure is a clothing store, they manufacture designer cloths and accept “make to order”. For the
last few years they have emerged and their sell has increased in a huge number. One of the
reasons were their online selling. They have successful marketing campaign through Facebook
and Instagram and very popular among its targeted consumers. They have a vision of selling
internationally and grab international market mostly south and south west Asia.

Current Situation of Allure:

Allure is in a growth stage and slowly reaching its vision. Their sell is increasing day by day. The
owner Mrs. Seema Khondokar, is struggling to keep track of her business’s Comprehensive
Income Statement and balance Sheet. She lacks accounting knowledge. Earlier it was in her grip
and she could take decisions very easily, the scenario is different now. Moreover, she like to
keep her business information asymmetrically so that her vital information does not get out.
However, they produce Sari, Panjabi, gowns, bridal cloths etc.

Recommendation:
Allure should look forward to use an AIS software to solve their problems and achieve their
desired vision. “QuickBooks” is one of the simplest AIS software that gives a lot of options. On
the “Plus” subscription five users can access the software and with a click she might be able to
access all the necessary details to make decisions.

The facilities of “QuickBooks”:

 Cloud Accounting
 Expense Tracking
 Invoicing
 Accounting reports
 Cash Flow Management
 Accountant access
 Automatic backups
 Data security
 Free unlimited support
 REFERENCE:
 https://www.bishwobiddaloy.com/archives/1758
 https://www.scribd.com/document/238843435/Accounting-Information-Sytem-of-Beximco-
Pharma

 https://www.assignmentpoint.com/business/accounting/cost-accounting-information-system-
used-by-beximco.html.