As I attended a meeting with the PGM in our company yesterday on the automation in the requisition and processing of debit memos, we were asked by his son if the said automation would hasten the process of related transactions or would just only delay the operation.
The Debit Memo system is only a part of the whole accounting system where different charges are deducted from the suppliers’ account, these charges sometimes pertain to damaged items they have supplied to our company, promotional support for their items etc. It’s really hard for me at first (or even up to now) to learn the whole thing about this system because it really requires enough accounting knowledge… Thanks to the programmer who works on this system, he’s willing to help me understand some of those terms and processes that I am not familiar with.
So now, there is an existing system for the requisition of debit memos to return items to supplier for items with damage, stain (for clothings etc.), or inoperable devices etc. This is only a type of form (to be filled up) or transaction for debit memo. There are other debit memo forms or types like Price Rebate—for mark up/down prices during sale, each of these types are done by filling up of different requisition of debit memo forms. The request for debit memo for returned items thus requires a form to be filled up and approved by authorized individuals so to perform the deduction from supplier’s account. This form is passed to different sections before it reaches the accounting department.
Now, PGM suggested that instead of this form, he wants it to be automated. So, the transaction shall be done on computer. A designated person shall enter all the Request for Debit Memo forms (still a form shall be filled up for the basis of what will be entered into the program), this program will be accessed by different authorized individuals to check and validate the requisition and lastly, the accounting department will verify the transaction and then make vouchers.
Now, going back to his question, I say yes, it would hasten the process because no forms will be passed from a section to another which sometimes causes delays in the transaction. The automation will provide better transaction processing. Moreover, accuracy for the PLU items and its descriptions are ensured since in forms, handwritten PLUs and descriptions sometimes do not match which will take real good time to verify these from the one who prepared the requisition form. Stock adjustments will be performed automatically since this program will be directly linked to an existing system for stocks control which means minus one task for us at MIS. Really, I believe the operation will provide less time for a transaction to be completed than that of the existing system. There are yet disadvantages for the new system like in case of power failure, database corruption, program errors if any and few other cons that we may encounter later (we can always go back to basic anyways in case…hehe) but positively, the system is equipped with pros that makes it more reliable, faster and accurate than the existing system.
Since, I have not answered him yet with his question (while he was asking that question, our HR manager suddenly came up to the office and broke into our conversation to bring some odd information to our PGM that made him postponed our meeting yesterday to some other day), I am preparing myself to present to him the advantages and disadvantages of both systems (existing and automated system) and further provide a flow chart to understand the differences in the operations between them so he himself can decide whether to go for the transitions or not… GOOD LUCK TO ME… =)
The Debit Memo system is only a part of the whole accounting system where different charges are deducted from the suppliers’ account, these charges sometimes pertain to damaged items they have supplied to our company, promotional support for their items etc. It’s really hard for me at first (or even up to now) to learn the whole thing about this system because it really requires enough accounting knowledge… Thanks to the programmer who works on this system, he’s willing to help me understand some of those terms and processes that I am not familiar with.
So now, there is an existing system for the requisition of debit memos to return items to supplier for items with damage, stain (for clothings etc.), or inoperable devices etc. This is only a type of form (to be filled up) or transaction for debit memo. There are other debit memo forms or types like Price Rebate—for mark up/down prices during sale, each of these types are done by filling up of different requisition of debit memo forms. The request for debit memo for returned items thus requires a form to be filled up and approved by authorized individuals so to perform the deduction from supplier’s account. This form is passed to different sections before it reaches the accounting department.
Now, PGM suggested that instead of this form, he wants it to be automated. So, the transaction shall be done on computer. A designated person shall enter all the Request for Debit Memo forms (still a form shall be filled up for the basis of what will be entered into the program), this program will be accessed by different authorized individuals to check and validate the requisition and lastly, the accounting department will verify the transaction and then make vouchers.
Now, going back to his question, I say yes, it would hasten the process because no forms will be passed from a section to another which sometimes causes delays in the transaction. The automation will provide better transaction processing. Moreover, accuracy for the PLU items and its descriptions are ensured since in forms, handwritten PLUs and descriptions sometimes do not match which will take real good time to verify these from the one who prepared the requisition form. Stock adjustments will be performed automatically since this program will be directly linked to an existing system for stocks control which means minus one task for us at MIS. Really, I believe the operation will provide less time for a transaction to be completed than that of the existing system. There are yet disadvantages for the new system like in case of power failure, database corruption, program errors if any and few other cons that we may encounter later (we can always go back to basic anyways in case…hehe) but positively, the system is equipped with pros that makes it more reliable, faster and accurate than the existing system.
Since, I have not answered him yet with his question (while he was asking that question, our HR manager suddenly came up to the office and broke into our conversation to bring some odd information to our PGM that made him postponed our meeting yesterday to some other day), I am preparing myself to present to him the advantages and disadvantages of both systems (existing and automated system) and further provide a flow chart to understand the differences in the operations between them so he himself can decide whether to go for the transitions or not… GOOD LUCK TO ME… =)
