COST ACCOUNTING

ASSIGNMENT-1

MANAGEMENT REPORTING SYSTEM

Management Reporting System: A New Marriage between Management and Financial Data through Management Science
This paper reports a significant combination of a linear-programming model of the Liberty, a communication system which visually depicts the model's output by electronically-produced graphics, and a planning concept which has produced a new, more sensitive approach to asset/liability management of a banking organization in an increasingly volatile financial environment. During the past decade, banks generally have increased leverage and reduced liquidity, thereby making them increasingly vulnerable to interest rate volatility. The Management Reporting System (MRS) described is a practical and unique approach in marrying the various sophisticated disciplines necessary for effective management given such constraints. Liberty's Chairman credited the system with 25 per share of the 1973 Operating Earnings and noted that the mix of bank assets and liabilities now can be guided by precise, automated facts, rather than by mere seat-of-the-pants instinct. In its 1972 Annual Report, the Corporation stated its 1973 earning's goal because of the reliable way our Management Reporting System has functioned in 1972. That objective was met even though economic conditions were vastly different than assumed. The MRS's use permitted the timely adjustments necessary to manage earnings and achieve the publicly stated objective. The paper also explores a more realistic and sensitive approach to liquidity management developed at Liberty. Its impact and value was not only demonstrated during the 1974 liquidity crunch but by its adoption at several of the leading banks across the United States.

What is the Management Reporting System?

The Management Reporting system is a set of reports that provide the information necessary to make business decisions about running the store. The Management Reports inform you about the sales and margin, about Merchandising issues, about inventory, and about deals.

Management Reporting:Up to date management information is essential for the control of a service business, enabling the right decisions about business streams, clients, projects and employees. timeworks simple table structure, with Actual ledgers, Budget ledgers and Invoice in Progress ledgers, as well as all transaction types (TIMESHEET, EXPENSE, INVOICE and DISCOUNT) sharing the same data structure, enables the development of unlimited multi-dimensional reports. Typical reports might include: o Work in Progress by Employee Department, Project Business Stream, Account Manager, Company, etc. o Invoice Value by Business Stream, Account Manager, Accounting Period, etc. o Discounts from Standard Fee Rates by Client Business Sector, etc. o Achieved Consulting Rates by Employee, Company, etc. o Average Assignment Duration by Business Stream, Employee, etc. o Utilisation by Employee, etc. o Margin by Employee, etc. Whilst there are no 'standard' reports in timework, the possibilities offered by user-definable calculations, user-definable analysis and the uniform data structures of the system, are endless. Systems work provides an inbuilt wizard for the definition of Inquiry Profiles. These prepare data for formatting using Crystal reports. Alternatively INFORs renowned Vision suite or reporting tools are available for drill-down, analysis and integration with Excel. In addition, systems work enables the definition of Active Schedules. These are simple but powerful tables available to Employees in the Professional Services Workbench for reporting revenues, costs, work in progress, project plans, employee schedules, etc. MODULES:1 Timesheets 2 Attendance Forms 3 Expense Forms 4 Billing 5 Budgeting and Forecasting 6 Resource Planning 7 Accounting Integration

8 Management Reporting 9 Project Management 10 Transaction/Credit Card Import 11 Customer Services Workbench 12 Professional Services Workbench 13 Security 14 Multi Company 15 Multi Language 16 Multi Currency Financial Management Reporting System Overview Want to offer consistent reporting regardless of software? Need a template for preparing quick and easy management accounts? This is an extremely flexible, powerful & easy to use reporting tool, branded for your Practice. With Accountancy Practices and their flexible client needs, the Financial Management Reporting System can easily produce past reports, switch between monthly and quarterly reporting, and produce Year End Forecasts. The System also produces a variety of graphs and ratios, along with some analysis of these, providing you with highly presentable client reports. The Financial Management Reporting System template features include: o o o o o o o o o o o o Flexible template for all accounting systems Monthly or quarterly reporting Reports including Profit & Loss, and Balance Sheet Various graphs Ratio Analysis Aged debtors and creditors Click of a button presentation reports produced No knowledge of Excel formula needed Easy worksheet layout with marked areas and drop-down choices Automatic updates and notifications Designed for Excel for Windows versions 2000 to 2007 Branded for your business

Financial Management Reporting System - Features The Financial Management Reporting System template features include: o Flexible template for all accounting systems o Monthly or quarterly reporting o Reports including Profit & Loss, and Balance Sheet

o o o o o o o o o

Various graphs Ratio Analysis Aged debtors and creditors Click of a button presentation reports produced No knowledge of Excel formula needed Easy worksheet layout with marked areas and drop-down choices Automatic updates and notifications Designed for Excel for Windows versions 2000 to 2007 Branded for your business

Flexible Template for All Accounting Systems:This template can be used for records in any accounting software you or your client uses. Presenting sample reports to potential clients means these reports are what you can provide. Monthly or Quarterly Reporting:A simple drop-down selection means you can easily switch between monthly or quarterly reporting. Great for producing a report by quarters at the year end! Click of a Button Presentation Reports:There's no need to keep copies of large files, or provide clients with the entire Excel template each reporting period. Minimal Excel Knowledge and with a Simple Layout:With a simple layout and areas marked where entries can be made, this Excel template lets you focus on the figures themselves. Automatic Updates and Notifications:When a new version of the Financial Management Reporting System is released, your Excel template will automatically notify you and your clients that a new version is available. Updating is then easy with a 'click of a button' to update all data from the previous version. Branded for your Business:As with most of our Excel templates, these are branded to build your business image. Accountants and Bookkeepers will easily provide professional reports to clients. Development Desk You're not just getting a template, but an ongoing service. You might have slightly different needs to what this template does, or your needs might change in the future.

You also get ongoing development to meet your needs now, and in the future. Our Development Desk is free and easy to use for all members and template purchasers. There's no need for you to spend time on formula, or trying to add functions - let us do it for you. So if there's something you would like, save yourself the trouble and let us know!

Financial Management Reporting System - Creating Management Accounts Reports:-

Benefits
The original set of reports provided with the Equity system was Changed and added to many times as the system evolved. As a result, Inconsistencies had crept in, and the information was not always Reliable.

There was a need to revamp the reports completely, taking a fresh look At what information is required by store management and aiming the New reports directly at those needs. The new Management Reports system offers the following advantages: Consistency of data Reliability of calculations Flexibility for users

Consistency and Reliability:The new reports all use the same formulas for report calculations. For Example, in the old reports, margin was calculated in several different Ways, some accurate and some not. Extensive testing both at head office and in pilot stores ensures that the information contained in the reports is reliable and correct. Ease of Use The system comes with a comprehensive set of standard reports that will meet most needs. Most stores will not need to create customized Reports. The reports are easy to schedule and run. Flexibility For stores that want additional information, we introduced the ability to create customized reports to meet their individual needs. This includes: adding and deleting columns on the reports specifying the sort sequence Subtotaling and grouping specifying selection criteria so you can zero in on your area of Interest (such as including only inactive products, products on a Specific deal and so on)

TYPES OF MANAGEMENT REPORTS:Sales and Margin reports: - Tell you about the overall profitability of the store. Merchandise reports: Tell you about in-stock positions and product Presentation.

Inventory reports: Deal reports: -

Tell you the value of your inventory. Help you prepare for deals and evaluate the results of both corporate and in-store deals

The four types of reports provide you with information about four different views or aspects of your business. Business View: A term used throughout the Management Reporting System. It provides a way of grouping similar reports and enables you to filter the list of reports on your screen, in order to avoid scrolling. 1. Sales and Margin:The Sales and Margin business view includes the following reports: Product Performance Product Performance Comparison Daily Sales by Type Weekly Sales by Type Sales to Date Sales and Margin Condensed Margin Margin 2. Merchandise:The Merchandise business view includes the following reports: Merchandise Merchandise with Suggested Bin Cap Service Level 3. Inventory Reports:The Inventory business view includes the following reports: Inventory Evaluation Inventory Evaluation Comparison

4. Deal Reports:The Deal business view includes the following reports: Deal Merchandising Deal Price Verification Deal Sales

ENTERPRICE APPLICATION:Enterprise systems, also known as enterprise resource planning (ERP) systems provide an organization with integrated software modules and a unified database which enable efficient planning, managing, and controlling of all core business processes across multiple locations. Modules of ERP systems may include finance, accounting, marketing, human resources, production, inventory management and distribution.

Supply Chain Management (SCM) systems enable more efficient management of the supply chain by integrating the links in a supply chain. This may include suppliers, manufacturer, wholesalers, retailers and final customers.

Customer Relationship Management (CRM) systems help businesses manage relationships with potential and current customers and business partners across marketing, sales, and service.

Knowledge Management System (KMS) helps organizations facilitate the collection, recording, organization, retrieval, and dissemination of knowledge. This may include documents, accounting records, and unrecorded procedures, practices and skills.

Developing Information Systems "The actions that are taken to create an information system that solves an organizational problem are called system development (Laudon & Laudon, 2010)". These include system analysis, system design, programming, testing, conversion, production and finally maintenance. These actions usually take place in that specified order but some may need to repeat or be accomplished concurrently. System analysis is accomplished on the problem the company is facing and is trying to solve with the information system. Whoever accomplishes this step will identify the problem areas and outlines a solution through achievable objectives. This analysis will include a feasibility study, which determines the solutions feasibility based on money, time and technology. Essentially the feasibility study

determines whether this solution is a good investment. This process also lays out what the information requirement will be for the new system. System design shows how the system will fulfill the requirements and objectives laid out in the system analysis phase. The designer will address all the managerial, organizational and technological components the system will address and need. It is important to note that user information requirements drive the building effort. The user of the system must be involved in the design process to ensure the system meets the users need and operations. Programming entails taking the design stage and translating that into software code. This is usually out sourced to another company to write the required software or companys buy existing software that meets the systems needs. The key is to make sure the software is user friendly and compatible with current systems. Testing can take on many different forms but is essential to the successful implementation of the new system. You can conduct unit testing, which tests each program in the system separately or system testing which tests the system as a whole. Either way there should also be acceptance testing, which provides a certification that the system is ready to use. Also, regardless of the test a comprehensive test plan should be developed that identifies what is to be tested and what the expected outcome should be. Conversion is the process of changing or converting the old system into the new. This can be done in four ways: Parallel strategy Both old and new systems are run together until the new one functions correctly (this is the safest approach since you do not lose the old system until the new one is bug free). Direct cutover The new system replaces the old at an appointed time. Pilot study Introducing the new system to a small portion of the operation to see how it fares. If good then the new system expands to the rest of the company. Phased approach New system is introduced in stages. Anyway you implement the conversion you must document the good and bad during the process to identify benchmarks and fix problems. Conversion also

includes the training of all personnel that are required to use the system to perform their job. Production is when the new system is officially the system of record for the operation and maintenance is just that. Maintain the system as it performs the function it was intended to meet.

OBJECTIVES AND GOALS:New administrative processes are simple and cost-effective. Duplicate data entry is eliminated and the use of shadow systems is reduced by 95%. The indirect cost rate is lowered. Targeted savings in the areas of purchasing and administrative staffing are achieved. Processes deliver timely, accurate, relevant, consistent, accessible management information. The frequency of data feeds from external systems is increased. Whenever possible, data input is changed from batch process to real-time input by users. Reconciliation effort is reduced by 90%. Central systems are sufficiently flexible to capture any data considered relevant by users. Users are given direct access to data, and the tools to derive and analyze management information. Data definitions are consistent. The new processes facilitate and improve management decisions. Data can be summarized consistently at all levels. Decision making focuses on the substance of the decision rather than the quality or consistency of the data. Incentives for good management are built into the process. Information is available to all units and managers to measure performance against goals. Quantifiable performance goals are part of operational units' planning process. Full financial impact of decisions (cost and revenues) is analyzed before program and staffing decisions are made. The MIT community perceives real and tangible advantages of the new processes Benefits of the financial system flow directly to the "real" endures of MIT business processes -- faculty, students, and researchers. Administrative staffs are able to maximize their skills and abilities, and fully and effectively utilize all available tools (especially SAP R/3). Financial control and reporting on all MIT-administered accounts is improved. A "culture of service" is

supported and enhanced within the administrative support areas.M"Best business practice" is used wherever appropriate and possible.