Phoenix Appliance Center Co.
Business Process Key Decisions
Purchasing
Sales
Quality, Process Improvement
& Change Management
Customer Service
Product/Service Delivery
Asset Management
Information Needs
 Purchase High
Quality Inventories
to meet the
demand of
customers.
 Purchase enough
inventories to
supply orders and
unexpected
demand.
 Product
management,
including, price
changes, handling
damaged products,
and returns.
 Delivery and
quality of the unit's
offerings to
customers.
 Innovate product
and adapt changes.
 Treat Customers
with high care.

 Deliver Products
with care to
prevent products
from scratch and
being destroyed.
 Maintain Assets
used for business
 Stock Level of
Inventory
 Amount of Each
Inventories to be
purchase.
 Discounts
 Quality of Product
 Quantity of product
 Price Changes
 Trends on Product
 Total Sales
 Number of Product
Sold
 Discounts given to
Customers
 Selling Price
 Product Trend
 Customer Feedback
 Details about the
Products to be
delivered
 Type of Delivery
 Location or place of
delivery
 Delivery personnel
 Assets to be
maintained
 Phoenix Appliance Center Co.

operation.  Useful life of Assets

 Efficient use of  Use of assets in
assets for a higher business.
level of
productivity.
Customer Strategy &  Creation and  Trends on Products
Relationships (Marketing) implementation of  Environment of the
a strategy designed location of the
to grow the business.
business.
 Presentation of
store and
advertising
displays
Performance Management  Provide a Quota  Number of Sales per
and Criteria for Sales Agent
each Employee to  Monthly sales forecast
meet the set goals  Employee Evaluation
and sales.  Employee Record
 Give incentives to
sales employees
with the highest
number of sales to
motivate
employees to work
harder.

4. Transaction Cycles
Expenditure Cycle
1. Purchasing
2. Quality, Process Improvement & Change Management
3. Asset Management
4. Performance Management
5. Marketing
 Phoenix Appliance Center Co.

Sales Revenue Cycle

1. Sales
2. Customer Strategy & Relationships (Marketing)
3. Customer Service
4. Product/Service Delivery

5. Activities Involved in the transaction cycle

Expenditure Cycle
1. Purchasing or Ordering of Merchandise
2. Payment for Administrative Services
3. Return of merchandise due to defects
4. Payment of merchandise ordered.
5. Salaries Paid to employees
6. Advertising and Promotional Activities

Sales Revenue Cycle

1. Selling of merchandise
2. Delivery of merchandise
3. Invoicing and cash Receipts
4. Sales return of merchandise
5. Payment from customers.
6. Collection from Receivables

6.
 Phoenix Appliance Center Co.

Business Activity Source Document

Expenditure Cycle
1. Purchasing or Ordering of Merchandise Invoice
2. Payment for Administrative Services Cash Disbursement Receipt
3. Return of merchandise due to defects Goods Return and Debit Memo
4. Payment of merchandise ordered. Cash Disbursement Receipt
5. Salaries Paid to employees (Payroll) Time Card, Time Book and Employee Earnings Record
Card
6. Advertising and Promotional Activities Cash Disbursement Receipt

Sales Revenue Cycle

1. Selling of merchandise
2. Delivery of merchandise
3. Invoicing and cash Receipts
4. Sales return of merchandise
5. Payment from customers.
6. Collection from Receivables
Sales Order, Sales Invoice
Delivery Receipt/ Shipping Invoice
Accounts Receivable Invoice
Sales Return and Credit Memo
Cash Receipts, Cash Register Slips and Cash Bills.
Duplicate of Cash Receipts Issued.

7. Chart of accounts
 Phoenix Appliance Center Co.

CHART OF ACCOUNTS

Code Account Title

ACA000 Current Assets
ACA100 Cash on Hand
ACA200 Cash in Bank
ACA300 Check Clearing
ACA400 Petty Cash Fund
ACA500 Accounts Receivable, net
ACA510 Accounts Receivable
ACA520 Allowance for Bad Debts
ACA600 Advances to Employees
ACA800 Merchandise Inventory
ACA900 Prepaid Supplies
ACA1000 Input Tax
ACA1100 Other Assets

ANA000 Noncurrent Assets

ANA100 Land
ANA200 Building, net
ANA210 Building
ANA220 Accumulated Depreciation- Building
ANA300 Supplies & Office Equipment, net
ANA310 Supplies & Office Equipment
ANA320 Accumulated Depreciation- Supplies &
Office Equipment
ANA400 Furniture & Fixture, net
ANA410 Furniture & Fixture
ANA420 Accumulated Depreciation- Furniture &
Fixture

ACL000 Current Liabilities

ACL100 Accounts Payable
ACL200 SSS, PhilHealth & HDMF Payable
ACL300 Withholding Tax Payable
ACL400 VAT Payable
ACL500 Accrued Expenses

ANL000 Noncurrent Liabilities

ANL100 Notes Payable

ACR000 Capital and Reserves

ACR100 Jumaquio, Capital
 Phoenix Appliance Center Co.

ACR200 Jumaquio, Drawing

ACR300 Batayola Capital
ACR400 Batayola, Drawing
ACR500 Jornadal, Capital
ACR600 Jornadal, Drawing
ACR700 Income & Expense Summary

AT000 Turnover
AT100 Sales
AT200 Other income
AT300 Sales Discount
AT400 Sales Returns and Allowances

ACS000 Cost of Sales

ACS100 Cost of Sales
ACS200 Salary Expense
ACS300 Utility Expense
ACS400 Supplies Expense
ACS500 Transportation Expense
ACS600 Repairs & Maintenance
ACS700 Depreciation Expense
ACS800 Bad Debts Expense
ACS900 Miscellaneous Expense

ANIE000 Non-Operating Income and Expenditure

ANIE100 Clearing
ANIE200 Rounding
ANIE300 Opening Balance

ATX000 Taxation and Extraordinary Items

ATX100 Income Tax Expense

8.
Attribute BOOKS Of ACCOUNTS
General Cash Receipts Cash Sales Purchase
Journal Journal Disbursement Journal Journal
1 Date Date Date Date Date
2 Particulars Particulars Particulars Particulars Particulars
3 Amount Amount Amount Amount Amount
4 Account Account Title Account Title Account Title Account Title
 Phoenix Appliance Center Co.

Title
5 Reference Reference Reference Reference Reference
Number Number Number Number Number
6. Journal Journal Entry Journal Entry Journal Entry Journal Entry
Entry

Attribute SUBSIDIARY LEDGER

Accounts Inventory Property, Accounts
Receivable Subsidiary Plant and Payable GENERAL
Subsidiary Ledger Equipment Subsidiary LEDGER
Ledger Subsidiary Ledger
Ledger
1 Date Date Date Date Date
2 Particulars
3 Amount Amount Amount Amount Amount
4 Reference Reference Reference Reference Account Title
Number Number Number Number
5 Reference

9. Organizational Chart – ashlee

General Manager ( Owners)

 Phoenix Appliance Center Co.

- Responsible for the legal requirements of the business

- Responsible for the payment of expenses of the business

- Responsible for the monthly payroll

- Ensure the creation and implementation of a strategy designed to grow the business

- Responsible for purchasing of merchandise.

- Product management, including ordering, receiving, price changes, handling damaged

products, and returns.

- Ensure overall delivery and quality of the unit's offerings to customers

- Evaluate and decide upon key investments in equipment, infrastructure, and talent

Supervisor

- Responsible for the day-to-day operations of the business

- Responsible for checking the level of inventory every month

- Overall care of staff and their well being

- Presentation of store and advertising displays

- To handle problems and questions to customers

- Responsible for reporting the operation of the business to the manager

Bookkeeper

- Record all transactions and post debits (costs) and credits (income).

- Produce financial statements and other reports for supervisors and managers.
 Phoenix Appliance Center Co.

Cashier

- Responsible for Handling cash

- Responsible for the issuance of the official receipt and for receiving payments

Sales Assistant (Helper)

- Responsible for assisting the customers.

- Responsible for distributing the order of the prospective buyer

- To handle problems and questions to customers

 Phoenix Appliance Center Co.

Name of report
Member Information Needed Flow of Information Level of Information Type of Report
needed

Non-
Horizonta
Vertical Summarized Detailed Mandatory Mandato
l
ry
Business Financial Financial Statements
Transactions, reports, Daily Sales
General
Administrative tasks,   Report, Workforce 
Manager
and Employees Management Reports
Information and Inventory report,
Business Transaction,
Employees Data, Cash Count Sheet
Store Manager Merchandise   Report, Financial 
Information, and Reports
Inventory Level
Daily Sales Report,
Cash Receipts
Business Financial
Journal,
Bookkeeper transactions and   
Disbursement
Business Information.
Journal, and Purchase
Journal,
Merchandise
Cashier Information, Business   N/A 
Information
Merchandise
information, Marketing
Sales Assistant   N/A 
Information and
Business Information
 Phoenix Appliance Center Co.

IT CONTROLS EXISTING PRACTICE

I. Information Security
User Access Controls
Physical Access Controls
Network Access Controls
Log Analysis
II. Confidential and Privacy
Encryptions
III. Processing Integrity and availability
Input Controls
Processing Controls
Output Controls
 Biometric Identification and Passwords.
 Locks, security guards, and CCTV.
 Antivirus Software (SMADV).
 Audit Log.
 Authentication and File System
 Input of resources and Data Entry.
 File labels and cross-footing.
 Reconciliation and Data Transmission
Controls.