Chemical X Corporation

A Business Proposal
Presented to the
Faculty of the Department of Accountancy
School of Business and Economics
University of San Carlos
Cebu City, Philippines

In Partial Fulfillment
Of the Requirements for the course AC 526
Management Consultancy

Submitted by:

APALE, KRISTINE
BALANAY, ZYLE
CAMELLO, CHITHRA FAITH
CEJAS, ADREI ANNE
LAPECEROS, SHEENA MECHELLE
SABERON, KENT
SORIANO, TIFFANY CHRISTINE
SUMALINOG, ANVILLE MARIE
 12:00 PM-1:30 PM MW Group 4

March 1, 2017
COMPANY PROFILE

Chemical X Corporation was created to ultimately insure the satisfaction of our

valued clients by providing world-class quality products and personalized services there is.

Chemical X Corporation has a wide diversity of products that specifically conforms to

the customer’s needs because it is fully aware of the ever-advancing technology through

research and on the field of observation. The delivery and distribution system within the

province of Cebu is what the Chemical X call “A-1” that is “When and wherever you want it,

you got it”, and it has the mobilization and communication capacity substantiate it.

Chemical X Corporation is an organization that comprises a staff which is

fullyscreened based on their ability, experience and honesty. Self-motivation and willingness

to sacrifice to comply to the customer’s needs is the organizations groundwork. The

Chemical X team work as one, dream as one, a dream that by supporting, will help achieve

the customers goal and Chemical X as well.

The main office of Chemical X Corporation is located in Mandaue City, Cebu

Philippines.

Name of Company : Chemical X Corporation

Telephone No. : (032) 420-6360 / (032) 420-5898

Fax No. : (032) 345-6589 / (032) 345-1672

Nature of Business : COMPLETE SUPPLY OF LOCTITE SPECIAL

 ADHESIVES, MAINTENANCE REPAIR AND

OVERHAUL, RUST TREATMENT AND

CLEANING, COMPOSITES FOR PUMP

REPAIRS, BACKING MATERIALS,

GROUTING, JANITORIAL CHEMICALS,

PHOENIX LUBRICANTS.

Major Specific Lines : SOLE VISAYAS DISTRIBUTORS OF:

1. LOCTITE PRODUCTS – Thread locking, thread Sealing,Gasketing,

Retaining, Metal Repair System, Wear Protection-Reclaim and Repair,

Grouting, Floor and Concrete Repair, Anti-Slip Traction System, Rubber and

Belt Repair, Anti-Seize Lubricants, Rust Treatment and Cleaning, Bonding.

2. POLYMER PRODUCTS- Floor Care Line (Waxes, Sealer,Crystallizer,

Cleaners, Specialties), Custodial Equipment and Supplies (Floor Polishers,

Mop Squeezers, Mop Head, Mop Handle, and other tools and supplies).

3. 3M MASKING, PACKAGING, SURFACE PROTECTION, AND

SPECIALTY PRODUCTS – Packaging Solutions, SurfaceProtection

Solutions, Specialty Solutions, Masking Tapes – Crete, MaskingTapes – Fine

Line, Flatback, and Specialty, Masking Tapes 0 Large AreaMasking Systems,

and Masking – Specialized Applications.

4. 3M FACILITY, SAFE MAINTENANCE SOLUTIONS –Nomad Matting

System, Nomad Carpet System, Specialty Mats, Safety –Walk Treads,

Scotch- Brite Hand Pads, Wipes, Cleaning and MaintenanceChemicals,

Infection Prevention, Kitchen Cleaning – Food Safety, and FloorPads.

Narrative Description
Revenue Cycle: Sales Order System
 Person Activity

 Receives client’s order.

 Receive approved credit check.
Accounting Staff
 Issues 4 hard copies of sales invoice (client’s copy,
ledger copy, inventory copy and file copy)

 Issues a Pull-out Form, fax it to the warehouse and

Accounting Officer
gives the original copy to the logistics personnel.

 Receives the pull-out form and file it.

Inventory Personnel  Receives the Inventory Copy and checks stock records.
 Forwards the inventory copy to the warehouse.

 Receives the pull-out form and invoice.

 Picks goods according to the goods orderedby the
customer, attaches 3 sales invoice(client, ledger,
Warehouse-in-charge inventory copy forverification and files the pull-out
form).
 Sends the goods with the attached invoicesto the
delivery-in-charge.
 Issues 2 delivery receipts to be verified by the client
Administrative Staff
upon delivery.
 Delivers the goods to the customer/client.
 Let’s the client verify the three invoices andthe
Logistics Personnel Delivery Receipts.
 Leaves the client’s copies and return theother copies
for recording purposes and filing.
 Receives the Verified Inventory Copy.
Inventory Personnel  Updates the Inventory record in theInventory
Subsidiary Ledger and files it.
 Receives the Verified Ledger Copy andDelivery
Receipt and files it.
Accounting Staff
 Updates the Accounts Receivable in theAccounts
Envelope (jacket).
  Updates the Receivables in the system.
Accounting Officer
 Post to the General Ledger.
 Creates a Counter Receipt to be sent to customer for
Accounting Staff
billing.

Collector  Sends the Approved Counter Receipt tothe client.

Narrative Description
Revenue Cycle: Sales Return
Person Activity

 Informs the company about the problem with

Customer
the products.
  Prepare Return Slip
Accounting Staff
 Makes a credit memo.
General Manager  Signs the credit memo for approval.
 Goes to the customer’s place with a new stock
and checks the damaged unit/s. When
checking is done, he then asks the
Logistics Personnel complainant if they would like the unit/s to be
cancelled or replaced. If to be cancelled, he
gets the unit/s back. If to be replaced, he
replaces it with the new stock/s he is bringing.

 Adjusts the inventory records. (If the returned

stock can still be sold to other customers, no
adjustments needed. But if the stocks cannot
Inventory Personnel
be sold anymore, inventory record is adjusted
and sends a request for replacement to the
supplier.)

 Receives the invoice returned by the customer

to the supplier.
Accounting Staff  Updates the Sales Journal.
 Receives the Credit Memo and Updates the
AR Envelope.

 Makes the General Ledger, Financial

Accounting Officer
Statements and etc.

Narrative Description
Revenue Cycle: Cash Receipts System

Person Activity

 Issues a statement of account as a reminder for

Accounting Staff
the duepayment through fax or email.
  Distribute the collection’s receipt to the client for
the duepayment. (Secure another 2 copies for
Collector
verification)
 Receive voucher from clients and signs it
 Receives directly the check or cash as payment
from theclient after receiving the voucher (the
Accounting Officer client may deposit it directly to the bank
especially outside Cebu)
 Inputs data into the Accounts Envelope manually
 Reconciles the receipt and deposits into the
Computer System (Peach Tree Accounting
Accounting Staff
System).
 Turns over the received cash or check for deposit
Collector  Deposits check to the bank

Narrative Description KRISTINE

Expenditure Cycle I: Purchase Order

Person Activity

Inventory Personnel/Store Manager
 Monitors the Inventory level record using the
Inventory Subsidiary Ledger.
 Prepares two Purchase Requisition (PR) Slip. Sends
one copy to the accounting clerk while the other one is
used for reconciling with the receiving report from the

Accounting Clerk
Administrative Staff
Warehouse Staff
Bookkeeper
Narrative Description
Expenditure Cycle I: Purchase Order
Person
Inventory Personnel
Accounting Officer
warehouse staff. The copy is filed after reconciliation.
 Updates the inventory record and prepares a summary
and sends it to the bookkeeper.
 Basing on the PR Slip, prepare two Purchase Order
(PO) Slips. Send the two copies to the administrative
staff for authorization.
 Receives copies of the approved purchase order, sales
invoice from the vendor, and receiving report from the
warehouse staff.
 Reconciles the purchase requisition slip, approved
purchase order, sales invoice and receiving report then
files them after.
 Records the purchase details in the Purchase Journal
and records the liability in the accounts payable
subsidiary ledger.
 Summarized the entries in the purchases journal as a
journal voucher which is sent to the bookkeeper.
 Approves and authorizes the purchase order.
 Sends one copy of purchase order to the vendor
through fax.
 Receives the goods and counts them.
 Makes 3 copies of receiving report. One copy is sent to
the accounting clerk, another one is sent to the
inventory personnel/store manager, and the last copy is
filed.
 Receives the journal voucher and the inventory
summary.
 Reconciles the inventory amount in the general ledger
with summary
 Posts the accounts payable journal voucher to the
general ledger
Activity
 Monitors the Inventory record using the
InventorySubsidiary Ledger.
 Prepare Purchase Order and send to the supplier.
 Receives Sales Invoice from supplier together
 with thegoods.
 Create a Receiving Report.
 Records the purchase details in the Purchase
Journal.
 Sets up Accounts Payable in the Accounts
Envelope.
Accounting Staff
 Update the payables in the Peach Tree
AccountingSystem (computer).
Accounting Staff 
 Records the purchase details and updates the
Inventory Personnel
InventoryRecords in the Subsidiary Ledger.

Narrative Description
Expenditure Cycle I: Cash Disbursement
Person Activity
Accounting Officer  After setting up the AP in the previous system, th
AccountingDepartment identifies all the liabilitie
due with the use of thejackets and accounting
system. The monitoring of liabilities
usuallyhappens weekly.
 The Accounting Department prepares for the Cas
Disbursement. The entity uses a program called
Business Check Program which was given by
Union Bank for easy preparing of Cash
Disbursements. After filling up the check in the
program, it will be printed.
  Presents the printed voucher (Business Check) to
the General Manager for verification.
 Prepares the bank check and let the President affi
his signature for approval.
 Updates the AP Records in the Account Envelope
 Updates the AP Records in the system (Peach
Accounting Staff
Tree Accounting System).

Narrative Description
Expenditure Cycle II: Payroll System
Person Activity
 Checks the attendance sheet semi-monthly
 Enters the information into the Employee Payroll
Human Resource Manager Records
 Prepares three copies of Payroll Register
 Forwards to Administration for Approval
Administration  Approves Payroll Register
 Receives Approved Payroll Register
 Makes Payslip and Payroll Check
Human Resource Manager
 Forwards Payroll Check to the Bank
 Files one copy of Approved Payroll Register
Accounting Clerk  Receives a copy of Approved Payroll Register
and updates Cash Disbursements
 Creates two Voucher for proofs of disbursement.
 One of the vouchers is forwarded to the External
 Accountant and the other is filed within the
department together with the Approved Payroll
Register
 Receives a copy of the Voucher and updates
External Accountant General Ledger
 Files the Voucher
 Receives the Cash from the bank and the Payslip
together with the Approved Payroll Register
from the HR Manager
 Upon receiving the payroll envelope, the
Paymaster
employees verify the pay slip by affixing their
signatures
 Files the Verified Pay slip together with the
Approved Payroll Register