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CHAPTER 2
THE SYSTEMS
This chapter shows and discusses the service flow, current
accounting system and proposed accounting system.
2.1 Service Flow
Figure 3
Service Flow
The service flow of the Janet’s Kakanin at iba pa starts if the customer
is willing to avail the service. If not, then end; if yes, then the employee will
take the order of the willing client. After the orders have produced then it will
be delivered to the designated store and the payment comes next and then
it is end of the transaction.
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2.2 Current Accounting System
2.2.1 Sales/Revenue Accounting Flow Chart
The owner will be collecting the
payments for their product delivered
in daily basis.
After collecting the payments, the
owner will count its collection.
After knowing its revenue, the money
will be kept and some of it will be
used for their operational expenses.
Figure 4
Sales Flow Chart
The Sales of Janet’s Kakanin at iba pa is on a cash basis, thus,
no collecting cycle is presented. In a day, the owner, consolidates
the collection of coins and record it as sales. There are five (5)
existing products as of this date which is the basis in generating its
income. Janet’s Kakanin atbp. is currently supplying four (4) existing
businesses, this includes Yolly’s Pancit Malabon, Kcc Supermarket,
Kcc Kakanin atbp., and Fitmart Kakanin atbp..
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2.2.2 Disbursement Flow Chart
The buyer will inquire first for
the product.
The buyer will choose to avail
or not. If not, then exit and if
yes, then avail the product.
After availing the product, the
buyer consult the seller to
requisite the material in order
to produce their product.
The seller will issue the
receipt to the buyer.
The payment will be cash
basis only and no credit
transactions.
Figure 5
Disbursement Flow Chart
Janet’s Kakanin at iba pa disbursement cycle involves
acquisition of raw materials. Raw materials will be purchased daily,
some are weekly or in monthly basis as needed in the production.
Utilities expense such as Gas will be purchased at the end of the month
or as soon as the utility is fully consumed.
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2.3 Proposed Accounting System
2.3.1 Sales/Revenue Accounting Flow Chart
The payment for their service should
be collected in a weekly basis so that
they can immediately provide the
expenses and other needs for their
business.
After collecting the payments, the
owner will count its collection per
store.
After counting the collection, they
should record the payments per store
in order to know if the operating store
is effective or profitable.
Lastly, the owner should be record
its Total Sales to the Microsoft excel
in order to provide Financial
Statements to the business.
Figure 6
Sales Flow Chart
The table above describes the proposed sales/collection
cycle. Janet’s Kakanin at iba pa is still on a manual process of
collecting and monitoring their revenue. The student is proposing to
use an upgraded app which is the Microsoft Excel. It is more
convenient and mistakes can be easily detected.
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2.3.2 Asset Acquisition/Capital Expenditures Flow Chart
The buyer will inquire first for the
product.
The buyer will choose to avail or not.
If not, then exit and if yes, then avail
the product.
After Availing the product, the buyer
will consult the seller to requisite the
material in order buy their product.
The seller will issue the receipt to the
buyer and the buyer will compile the
receipt.
After the receipt was issued the
buyer will approve the receipt.
The payment will be cash on basis
only and no credit transactions.
After the transaction, record the
disbursement.
Figure 7
Asset Acquisition/Capital Expenditure
Flowchart
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2.3.3 Expense Accounting Flow Chart
The owner would be received a bill
from the vendors. After that, the bills
will be compiled.
After issuing the receipt the buyer
approve the receipt.
The payment will be cash basis only
and no credit transactions.
Lastly, Record the bill to the
disbursement record.
Figure 8
Expense Flow Chart
The student is proposing to use an automated app to upgrade the
business’s standing in recording its disbursements and expenditures. It is
more efficient and reliable, easy to access data and makes recording of
transactions faster and convenient.
