Accounts Receivable record documents, that is, sales transactions, payments, etc., it is also known as a portfolio.
In the Company Representaciones Pitín this management is carried out manually which leads to a tedious and disorganized process when saving the information.
For this and many reasons we have decided to develop a program that makes it easier for this company to have better control of accounts receivable and that meets all the needs such as streamlining in an automated way for an excellent organization at the time of keeping financial statements.
This project consists of seven chapters, in which the first chapter we will observe the general aspects of the company, and little by little we will develop the chapters until we are able to present a paper prototype for making the screens and their subsequent installation in the company.
General aspects of the project
History of the problem
In 1990 Mr. Juvencio Ortiz, due to the needs of that time in terms of the services provided by this company, decided to found Representaciones Pitín in the city of Aguadulce, Province of Coclé, the purpose of which is to provide services to families from Aguadulce. Regarding the repair of electronic devices, watches, cell phones, it is also dedicated to the sale of electronic products, watches, cell phones, accessories for upholstery and hardware in general.
It began its work with its own investment, then this year a financing is made with the National Bank of Panama to expand the company, it is inaugurated on Rodolfo Chiari Representaciones Pitín Avenue, this company has become the pioneer in these tasks because its staff has vast experience in these trades.
Current situation or state of the problem
Due to globalization there is great competitiveness in our labor market, that is why all companies in our country must always be at the forefront of technological advances that are presented every day in order to obtain excellent performance and lightness in all aspects that they are realized in it.
Since its inception, the company Representaciones Pitín has kept all its reports manually, which is why it is slow and problematic, that is why it is necessary to implement an accounts receivable system to visualize the movement of the company, on the other hand, it wants to automate these accounts to eliminate document backlog.
General assumption
- With the creation of an automated system, it will be possible to streamline the collection of customers and eliminate the abundant stationery that the company handles.
Overall objective
- Create an automated accounts receivable system for the company in a faster, clearer and more precise way, which supports decision-making.
Specific objectives
- Design an accounts receivable system Quickly collect from customers Help the company to be more effective
Delimitation
For the elaboration of the data control, automation will begin as of January 2002.
The company representaciones Pitín does not have the necessary equipment to control accounts receivable, since this is carried out manually. The development of this system to be implemented will take us approximately a period of three months.
Scope or coverage
The accounts receivable project that we will carry out in the company representaciones pitín, located on rodolfo chiari avenue, in the city of aguadulce, province of coclé
Restrictions and / or limitations
- Lack of bibliography Lack of knowledge on the subject of accounts receivable.
Project justification
Importance
The purpose of this project is of utmost importance because it offers us a broader knowledge so that Representaciones Pitín can make improvements in the management of accounts receivable at the time it wishes, thus favoring the company; In addition, it will provide us with a clear idea of what the ups and downs of the company are in relation to others, on the other hand we will know the aspects that will be improved with the implementation of an automated system.
On the other hand, we can make use of all the knowledge acquired in Computer Systems I, which will help us to obtain a more effective control of accounts receivable.
This management is carried out manually, which leads to a slow and disorganized process when storing the information.
The implementation of our project will bring benefits both for the company and for us, it will help the company to project itself in a current way, putting itself in line with technological advances, which is very important for every company since with the use of technology all Processes will be carried out in a quick and orderly manner, thus achieving a better presentation letter to your clients and a better performance in their work, since this accounts receivable program will simplify all the processes that previously had to be carried out manually. Furthermore, this system can only be accessed by the accountant and the owner of the company.
Contributions
Among some contributions that the implementation of the software will bring to improve the accounts receivable area of "Representaciones Pitín" are:
- It will save you time and work that can be spent on other duties It will serve customers more quickly It will avoid the use of old methods and the accumulation of documents It will encourage other companies that are attracted by the reliability and profitability of the software to systematize its services. The company will be able to expand its horizons due to the streamlining of its accounts receivable system.
For these and many contributions the company will give a renewed image towards globalization.
With this system, the company Representaciones Pitín will work more efficiently, since we will create a system that will help the registration of clients in an organized way, it will also carry out the calculation of accounts receivable in an automated way without using the old methods On the other hand, a detailed report will be presented for the company to prepare its financial statements.
Methodological aspects
Problem Statement
As is our knowledge, the company "representaciones pitín" does not have an automated system to control accounts receivable.
This is carried out manually by: another part of the mathematical operations are carried out with the help of the calculator and when finished they are saved in the files.
Formulation of assumptions
- With the creation of a program for accounts receivable, it will be possible to obtain a more effective control. With this system you will save time in collecting from clients. With the creation of this system you will be able to offer clients personalized and efficient attention..
Instrumentation
For the subject under study we will use the interview and observation to collect information.
Interview
Selection of sample elements
We interview who is in charge of managing accounts receivable.
Among the most outstanding aspects of our interview we can highlight:
- Year of founding of the company Type of investment Need to found it The characteristics of the current system The benefits of a system that is faster The objectives pursued The investments required
Procedures for its realization
Our interview will be carried out at the facilities of the company in question, it will be framed in a series of questions both open and closed where the most outstanding characteristics of the accounts receivable were highlighted.
Observation
By attending the company to apply our survey, we were allowed to observe a little of how accounts receivable are carried, where we were able to see in a detailed way the development of the company in terms of our subject of study in order to establish the most important parts essential in the development of our project.
Observation methods
Aspects to observe:
1. Way in which accounts receivable are kept.
- The control that the data currently has. Way in which we can systematize the current system. Time required to carry out a transaction.
Kind of investigation
The directors of this project consider that this is a descriptive investigation.
Definition
The purpose of the researcher is to describe situations and events. This is to say how it is and how a certain phenomenon manifests itself. Descriptive studies seek to specify the important properties of people, groups, communities or any other phenomenon that is subjected to analysis.
These measure or evaluate various aspects, dimensions or components of the phenomenon to be investigated.
A descriptive study selects a series of questions and each one of them is measured independently, in order to determine what is investigated. It is important to note that the description of the study can be more or less general or detailed.
Although, of course, they can integrate the measurements of each of these variables to tell what the phenomenon of interest is like and how it manifests, their objective is not to indicate how the measured variables are related.
Descriptive studies focus on measuring as accurately as possible; In this class of studies, the researcher must be able to define what is going to be measured and how to achieve precision in this measurement. You must also be able to specify who should be included in the measurement.
Descriptive research, compared to the unstructured nature of exploratory studies, requires considerable knowledge of the area under investigation to formulate the specific questions it seeks to answer.
The description can be more or less deep, but in any case it is based on the measurement of each of the attributes of the phenomenon described. Descriptive studies can offer the possibility of predictions even if they are rudimentary.
Justification
We use Descriptive Research because it is the one that best adapts to the type of research that we will carry out since it meets most of the specifications, before mentioned a series of visits will be made to the store where the "Pitín Representations" system will be implemented where we will observe by a few days how the management and collection of accounts receivable unfolds and then take this information and draw an analysis of what the owner of the company needs, to later make a descriptive analysis of the situation that accounts receivable presents of said premises.
By doing a descriptive analysis, the analyst sees the situation or problem found in the company from another perspective, takes the appropriate measures and takes precise actions to solve the problem.
This project requires this type of research and thus will facilitate the development of our research project and with this a higher quality project will be carried out that can be used for the consultation of future generations.
Analysis of the results
From the Interviews
Question 1:
In what year was this company founded?
Answer 1:
The company was founded in 1990.
Analysis:
This company was founded in January 1990 in the city of Aguadulce, Coclé province, by Mr. Juvencio Ortiz Gómez after being unemployed. 12 years ago this company was founded in Aguadulce for the benefit of the people of Aguadulce and also the surrounding towns, since it has a suitable and trained staff to meet the needs of the public.
Question # 2.
Is the investment owned or financed?
Answer # 2:
In the first instance it was an own investment, then a financing was made with the National Bank to expand the business.
Analysis:
The Company Representaciones Pitín began its work with its own investment, in what was the living room of the old house of Mr. Juvencio Ortiz's parents with a few remodeling. After the business is started, the income is quite good and it is decided to request financing from the National Bank of Panama to remodel and expand what is now the Pitín Representations building.
Question # 3:
How did the need to found the company arise?
Answer # 3:
As a main need, the company was founded since the business where Mr. Juvencio Ortiz worked was closed. Furthermore, in Aguadulce the services provided in this company were needed.
Analysis:
Mr. Juvencio Ortiz was an employee of a company called El Esfdamientos Juvenil, owned by Mr. Carlos Yap. This company closed since, after the invasion, Mr. Yap was appointed ambassador to China. With the money from the liquidation the company was founded. In addition, Aguadulce needed a company that would provide the services offered by said company, since the entire country was economically devastated after a North American invasion and few people had capital to invest.
Question # 4:
What services does it provide?
Answer # 4:
It offers repair services for all types of household appliances, watch and cell phone repair. Electrical products, watches, cell phones, upholstery and general hardware are also sold.
Analysis:
This company has repair services for all types of electronic devices, watches, cell phone repair. It also offers merchandise for sale such as: cell phones, cards and accessories, upholstery materials, gardening, hardware, electrical, shoe store. The human service provided in this company is excellent since it has a qualified staff.
Question # 5:
How are accounts receivable kept in this company?
Answer # 5:
Accounts receivable are kept manually.
Analysis:
The system currently used in the company Representaciones Pitín is a manual system, where all the operations to be carried out in a transaction are carried out with the help of a calculator and the employee who is going to carry out the transaction with the client.
They are then recorded in the relevant invoices for accounts receivable to later be placed on file.
Question # 6:
How would you see the implementation of an accounts receivable system that is faster?
Answer # 6:
Great.
Analysis:
With the implementation of an accounts receivable system in the company, it would be of great help for everyone (employees and customers), since it is a better way to obtain better results with more agility, precision and accuracy and reliability and thus offer clients a more personalized and reliable attention when preparing the account statements that are going to be delivered to the client.
Question # 7:
What objectives do you pursue in putting this program into practice?
Answer # 7:
Obtaining faster and more accurate results as well as detailed reports for each client.
Analysis:
The creation of an automated system for Pitín Representations represents a great achievement, since, with this system, access to accounts receivable is easier, faster and more reliable, it also offers the company the possibility of opening the way to the new technology of tip that would put it to set the pace with the globalization that our country is currently experiencing.
Question # 8:
Would you be willing to invest in software and equipment?
Answer # 8:
They would be willing to invest.
Analysis:
The owner of this company is willing to invest in new equipment. Since the owner wants his company to be at the forefront of technological advances, even if this means that he must spend a large amount of money to obtain the software and hardware for the installation of an automated system that helps the company to carry a better control of your accounts receivable.
Of the Observations
Behavior to observe # 1:
The way in which accounts receivable are kept.
Observed behavior # 1:
Currently the accounts receivable are carried out manually.
Analysis:
The control of accounts receivable in Pitín Representations is currently carried out manually, which is a slow and tedious process that is done through the help of a calculator, the invoices for the collection of said accounts. This manual control is carried out by a slower and more problematic process since many times the company employee can be distracted and cause errors when preparing the invoice.
Behavior to observe # 2:
The control that the data currently has
Observed behavior # 2:
The data is managed manually and collected in a filing cabinet.
Analysis:
The data of the clients and their respective copies of invoices are collected in a filing cabinet that the company has. This manual control is carried out by an employee of the company who is trained for this type of task. This control is exposed to errors due to the accumulation of documents that the company has and the disorganization at the time of storing the information of each client.
Behavior to observe # 3:
How we can automate the current system.
Observed behavior # 3:
Creating a computer-based accounts receivable system
Analysis:
We will create a Visual Basic program for accounts receivable for Pitín Representations, which will speed up the process of filling out invoices, organizing information and filing documents. Thus, the company will have the fastest information at the time of request and in a precise and efficient manner, as well as the reports for the client and for the relevant financial statements to be prepared.
Behavior to observe # 4:
Time required to complete a transaction
Observed behavior # 4:
It takes about 4 minutes, depending on the type of client.
Analysis:
At the time of making our observations we could see that the accounts receivable were extremely slow, since, if the client already has an account with the company, preparing the invoice took around 4 minutes, but if the client is new it takes around 15 minutes since the client must first fulfill certain requirements that the company requests as a policy before opening a new account.
Analysis of the current system
Description of the current system
We have been able to realize that the current system that Representaciones Pitín has, is not an automated system, that is, it has a manual, archaic and practically obsolete system to keep your accounts payable, thus representing a way to handle data slowly, out of control.
Like any company, Representaciones Pitín, the client needs to fill out a series of requirements to be granted a credit (account receivable), such as: name of the interested party, check stub, ID number, telephone number and pay the half the amount you are going to carry. All of these requirements are done by hand.
Pitín Representations needs to keep a very precise control of its new clients, correct some errors (returns) and eliminating data to know what it has, to achieve this it is based on a system of invoices which carry their respective copies, everything is done manually.
System Presentation
Currently Representaciones Pitín carries out its accounts receivable transactions with a manual system for the accounting area, so it needs time every day to keep a detailed control of the company's position.
The company must have an accountant to carry out billing, accounts receivable and accounts payable operations.
Installing an automated system will improve the company's ability to control its merchandise.
User Community Identification
The user community can be detailed as follows:
- Manager: person in charge of decision-making. Accountant: in charge of keeping the necessary control for the following decision-making. Dependents: in charge of serving the public.
Entry / Exit Identification
- Entry ID:
We identify it or it is registered by the invoices, which one is delivered to the client and the copies rest with the company.
- Exit Identification:
- the sales invoices in the reports.
Functions, Limitations and Restrictions
Functions:
- Provide greater reliability in the collection of accounts Serve customers more quickly Staff will have more time to carry out other activities Better handling of all types of invoices It is a slow system and easily accessible for non-staff. Authorized. It is subject to many errors. It is unreliable.
Restrictions
- The manager is the only one who has access The person has to make a 50% payment
Data flow diagram
The data is the guide of the activities of the company. The analysis of a system knows the role of company data in organizations. Following the flow of data through business processes, which is the purpose of data flow analysis, tells analysts a lot about how the organization's goals are being achieved.
Data flow diagrams, as the name implies, a system of processes and any analysis of such a system must include both aspects.
Proposed system
Presentation of the proposed system
The accounts receivable system of Representaciones Pitín will generate the following reports:
- The payments made by each client. Outstanding balance of each client.
This will be carried out by means of a password for each seller, in order to identify them more easily.
With the creation of this system, the handling of data will be streamlined, which we will automate in order to achieve an excellent verification of the account statements of each client.
This control is carried out manually, this is somewhat slow, problematic and sometimes exposed to errors, which is why the new system seeks to streamline these transactions that currently take a long time to perform. With this system, the company will be able to expand its horizons due to the streamlining of its accounts receivable system, giving the company a renewed image towards globalization.
User Community Identification
We have decided to delimit the user community as it was previously:
- Manager: Person in charge of making decisions Accountant: In charge of keeping the necessary control for the following decision making Dependents: Responsible for serving the public
Entry / Exit Identification
Tickets:
- Invoice: The customer's invoice is prepared manually. Orders: Descriptions of the products are entered, their costs, among others. Payment Method: The payments made and their respective balances are recorded.
Departures:
- Payment reports Balance reports Sales invoice
Functions, Limitations and Restrictions
Functions:
With this system that we are going to automate, the following functions will be filled:
- Control of accounts receivable Control of invoices Control of account statements Saving time Increase productivity of the company
Limitations:
- Access to the system will only be made by the accountant. The company does not have personnel trained in handling databases.
Restrictions:
- The system code will only be accessible to the manager and the accountant.
Other Costs
Among the others in which the company should be included is the training of the accountant who is in charge of using the program with a value of 300.00
Estimated Benefits
Among the benefits that the company will have with the automation of the system, we can say that they are nothing more than the economic advantages that it will provide to the company, among which we can mention:
- Provide better control of accounts receivable Greater speed in the execution of tasks Adequate training in the management of the accounts receivable system Increase in employee productivity.
System feasibility
Technical viability
The system to be carried out will be viable since the company will have to incur in expenses for the improvement of accounts receivable, will be able to buy the software and will give a detailed explanation to the personnel who will use the system so that the viability is not limited.
Economic feasibility
The company does not have the necessary means to implement the system, so this project is not viable.
Operational feasibility
The program will be the same but there will be changes:
- Of the production since it will have the team to keep track of the accounts receivable. Clients will have a code which will speed up the handling of the data. Greater security since only the accountant and the owner will have access to this system.
Schedule feasibility
It implies the possibility that the established times for the implantation and operation of the system are fulfilled. Clearances must be taken into consideration, due to unforeseen situations. For this project there is an estimate for the implementation of the system of nine months.
ACCOUNTS RECEIVABLE SYSTEM FOR: "PITÍN REPRESENTATIONS"
Contributed by: Martina Velásquez
Angie Matos
Itzela Rodriguez
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