Input To a Sales Ledger System Bearing in mind what we expected to find in a sales ledger, we can say typical data input into sales ledger system is as follows. Amendments Amendments to customer details, eg change of address, change of credit limits etc Insertion of new customers Deletion of old “non-active” customers Transaction data relating to: Sales transaction, for invoicing Customer payments...
Tuesday, June 29, 2010
Monday, June 28, 2010
(191)-ACCOUNTING FOR MODULES
Accounting for Modules Accounting for Debtors A computerized sales ledger will be expected to keep the sales ledger up-to-date, and also it should be able to produce certain output. The output might be produce daily, monthly, quarterly or periodically. Example- responses to file interrogations, or customer name and address lists printed on adhesive for dispatching circulars or price lists. What we...
Tuesday, June 22, 2010
(190)-INTEGRATED SOFTWARE
Integrated Software Each module may be integrated with the others, so that data entered in one module will be passed automatically or by simple operators request through into any other module where the data is of some relevance. For example, if there is an input into the invoicing module authorizing the dispatch of an invoice to a customer, there might be automatic links: To the sales ledger, to update...
Monday, June 21, 2010
(189)-MODULES
Modules A module is a program which deals with one particular part of a business accounting system.An accounting package will consist of several modules. A simple accounting package might consist of only one module (in which case it is called a stand-alone module), but more often it will consist of several modules. The name given to a set of several modules is a suite. An accounting package, therefore,...
Friday, June 18, 2010
(188)-USING AN ACCOUNTING PACKAGE
Using an Accounting Package When a user begins to work with an accounting package he will usually be asked key in a password. Separate password can be used for different parts of the system, for example for different ledgers if required. The user will then be presented with a “menu” of options such as “enter new data” or “print report” or a windows type screen with buttons and icons. By selecting...
Wednesday, June 16, 2010
(187)-ADVANTAGES AND DISADVANTAGES OF ACCOUNTING PACKAGES
Advantages and Disadvantages of Accounting Packages Advantages Advantages of accounting packages compared with a manual system are as follows. The packages can be used by non-specialists. A large amount of data can be processed very quickly. Computerized systems are more accurate than manual systems. A computer is capable of handling and processing large volumes of data. Once the data has been input,...
Monday, June 14, 2010
(186)-ACCOUNTING PACKAGES
Accounting Packages Computer programs are the instructions that tell the electronics how to process data. The general term used for these is software. Some application software is devoted specifically to an accounting task, for example a payroll package, a fixed asset register or a stock control package. Other applications have many uses in business, including their use for accounting purposes. Packages...
Wednesday, June 9, 2010
(185)-SUMMARY ABOUT RATIO ANALYSIS
Summary about Ratio Analysis In our post number (164) to (184) has gone into quite a lot of detail about basic ratio analysis. The ratios you should be able to calculate and/or comment are as follows. Profitability ratios Return on capital employed Net profit as a percentage of sales Asset turnover ratio Gross profit as a percentage of sales Debt and gearing ratios Debt ratio Gearing ratio Interest...
Monday, June 7, 2010
(184)-SHAREHOLDERS' INVESTMENT RATIOS
Shareholders’ Investment Ratios Dividend yield Dividend yield is the return a shareholder is currently expecting on the shares of a company. It is calculated as follows. Dividend yield = (Dividend on the share for the year / Current market value of the share) X 100 Shareholders look for both dividend yield and capital growth. Obviously, dividend yield is therefore an important aspect of a share’s...
Thursday, June 3, 2010
(183)-SHAREHOLDERS' INVESTMENT RATIOS
Shareholders’ Investment Ratios Earning per share (EPS) It is possible to calculate the return on each ordinary share in the year. This is the earnings per share (EPS). Earnings are profits after tax, preference dividends and “extraordinary items” (separately disclosed, large and very unusual items), which can either be paid out as a dividend to ordinary shareholders or retained in the business. EPS...
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