T.M.S CLOTHING LTD.

As-Sakib,Syed Md.11-19093-2

General ledger

and reporting system

Production cycle

Revenue cycle

Human resources or payroll

cycle

Expenditure

cycle

Financing cycle

Fund

Data

Data

Data

Data

Raw materials

Labo

r

Fund

Data

Finished goods

Customer

inquiry

Customer order

Previous order

Credit approva

l

Shipment of

goods

Check invento

ry Check

previous sales return

Send informati

on to other cycle

Yes

Yes

Yes

Yes Ye

s

Yes

Yes

No No

No N

o

No

No

No

REVENUE CYCLE

CUSTOMER INQUARY

Customer gives requirement. Color and design mentioned. Inquiry about the companies ability. Customer feel satisfied after

checking previous specimen products.

After taking the specimen product.

Judge it and analysis the product.

Customer give order. Order with some condition. Order may contain the

condition about “Fail loss”.

CUSTOMER ORDER

CREDIT APROVAL

CHECK INVENTORY

Most of transaction base on L.C.

Buyer show L.C against Performa invoice.

Submit actual invoice and bill off.

If big amount credit approval needed, management give it by measuring:

A. Bank strength of buyer.B. Take financial statement

from bank.C. Verify autheticness and

length of business.

Quality is assured by sampling. Ensure the availability of inventory. Ensure available inventory is

reserved safely. Inventory is sophisticated so try to

ensure room temperature perfect. If it have any chance of shortage

“purchase inventory”.

PREVIOUS ORDER ADJUSTMENT

SHIPMENT OF GOODS

In case of default, consider two things.

Reproduction cost.

Fail loss. Fully depends on buyer

requirement and order. If buyer is flexible,

company chose the least amount among reproduction and fail loss.

Dhaka to Chittagong tracking . Chittagong to destination voyage

on ship. Shipment goes on basis of:

CNF ( cost and freight) FOB( freight on board)

In CNF buyer pay for shipment. CNF could be:

CIF ( CNF with insurance) In FOB company pay for shipment

SALES RETURN

Usually no sales return.

If there is any try to adjust money with future invoice.

Have obligation to send money directly.

Requisition slip

Verification of

request

Select the

vendor

Purchase order

Receive goods and

services

Searching for

vendor

Store goods

Send informati

on to other cycle

Yes

Yes

Yes

Yes

Yes

Yes Ye

s

No No

No N

o

No

No

No

Receive vendor invoice

Yes

No

EXPENDITURE CYCLE

REQUISITION SLIP VERIFICATION OF REQUEST

If any purchase needed. Requisition slip claims to

account department. This company have no

procurement department.

Verification of raw materials and inventory is different.

Company has a certain chart for price of raw materials.

10% of adding value is granted. For office expenses accounting

department make verification.

PURCHASE ORDER

SEARCHING FOR VENDOR

Accounting department give “work order issue”.

Vendors give quotation. Accounting department

notice the cheapest quotation.

Search for vendor. Consider the competence. Also try to understand the ability of

vendor. Cheapest quotation may not be

considered.

SELECT VENDOR RECEIVE GOODS

Select the vendor. Contact with them. Confirm the order. Try to get some

exemption. Assign the term and

condition. Mention the process of

transportation.

Receive goods. Check that goods. Check the quality. If find faults,

contact with vendor.

STORE GOODS RECEIVE VENDORS INVOICE

After assuring quality, consider as inventory.

Consider process of store the goods.

Store the goods in ware house.

Vendor submit the bill.

Consider it for credit or cash.