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Faisal Corporation was established in early 2009 by an entrepreneur. The business
consists of retail store and corporate supplies.


Currently the business transactions i.e. purchase order generation to customer
order execution is manual. Inventory is maintained on excel worksheet. Similarly, all
cash payment and receipts is maintained in a register. Following systems even in
manual form are missing/weak

1. Ordering system

2. Inventory Management

3. Cash Management

4. Receivables/Payables system ( though the current business is on cash terms)

5. Invoicing Systems

6. Management Information System

Due to manual systems the business faces following key problems:

1. Weak tracking of cash flow and resultant excess/short cash

2. Inventory status is not up to date leading to excess/shortage situations

3. Delay in capturing the day transactions during days when the customer flow
is high.

4. Time wastage due to manual invoicing and resultant poor customer service

5. Lack of timely availability of management information for decision making


Our recommend consist of two phases:

The company needs to have a basic system of accounting and it should be on

computers. Following are the highlights of the systems requirements:

An excel “master-order” sheet should be developed indicating product, stocks
status as of weekend, quantities on order, quantities to order.

An order form should be on excel that indicates product; quantities required and
rate whenever the company wants to place an order. On every weekend all the
forms should be entered into master-order sheet. Similarly all the receiving should
be noted on the order form sheet so that entry could be made of these products in
inventory. A weekly print-out of the above files is kept for ready reference.

This would be the beginning of introduction of some systems and computerization

of ordering process.

Some type of product grouping /coding should be introduced. An excel sheet for
each month should be maintained indicating stock keeping unit (SKU) description,
month opening inventory, month purchases, month sales, closing inventory (auto
calculated). Every month an Inventory status report be printed and kept in record
for reference.

In phase II, the above sheet should be integrated with ordering system.

A “Day Cash Flow” excel sheet should be maintained for entry of daily cash receipts
and payments. Total of day cash receipt and payments that is being maintained in
Cash Register be transferred to “Day Cash Flow” sheet indicating date, opening
cash balance, receipts, payments, closing balance (which should match with
physical cash count).

The current bill book should be computerized i.e. the invoices should be printed
from computer. A basic software should be purchased that will give summary of sku
and quantities sold during the day. Even in cases where the customer does not ask
for invoice, the entry of sales should be made. This will enable the business to have
track of daily sales of each SKU.

In phase II, the invoicing system should be integrated with ordering and inventory
management system. This will result in availability of sales, stock, cash flow status
on daily basis.
Implementation of above recommendations will lead to availability of data on
computer and possibilities of generating various management reports on need


Cash Register per annum (200x 6 months) Rs. 1,200
Software for billing (one time) Rs. 10,000
Software for stocks & ordering (one time) Rs 10,000
Papers and Cartridges per annum Rs. 25,000