Guide questions for designing Accounting Information System suitable for

merchandising business:

I.

ACCOUNTING-RELATED TOOLS:
Do you have a computerized accounting system?

II. ECONOMIC ACTIVITIES:

PURCHASING OF INVENTORY:
1.
2.
3.
4.
5.

How do you make an order to your supplier?

How do you pay your order (Mode of Payment)?
How do you manage inventory (stored)?
How frequent is the inventory management?
How is the ordered inventory checked (e.g. by individual counting, by sample from
the ordered batch, etc.)?
6. How is the inventory (stored + new) updated?
7. Is there a segregation between the old inventory from the new (ordered)?
8. How do you return items to the supplier, in case of defects/damages?
PRICING OF INVENTORY:
1. How do you set the price of your product?
2. How do you offer sale?
PROCESSING OF SPOILED/DAMAGED/DEFECTIVE MERCHANDISE:
1.
2.
3.
4.
5.
6.
7.
8.
9.

How do you return items to the supplier, in case of defects/damages?

Do you offer a refund of products returned by a customer?; If yes, how?
Do you offer product replacement?; If yes, how?
Do you maintain returns and allowances account for items returned?
Do you have criteria for accepting/approving the merchandise returned by a
customer?
What do you do for goods returned by a customer that is defective?
Does your supplier approve immediately your returned merchandise?
What do you do for goods returned by a customer that is a wrong item?
What do you do to goods that are replaced by the supplier?

PERSONNEL:
1. Do you have a person in-charge for managing inventory?
a. Is this person also in-charge for managing spoiled inventory?
2. Do you have a person in-charge for managing cash receipts?
3. Do you have a person in-charge for disbursements?
a. Is this person in-charge for managing expenses not related to purchase of
inventory?
b. Is this person in-charge for payment of ordered merchandise?
c. Is this person responsible for keeping source documents related to payments?
4. Do you have a person in-charge for managing/monitoring debts and liability?
5. Do you have a person in-charge for managing salaries?

FINANCIAL DATA PROCESSING:

Who approves the transaction for:

Purchase of inventory?
Implementing sales promos?
Paying disbursements?
Return of merchandise from customer?
Return of merchandise to supplier?
Refund, if any?

What necessary documents are prepared for the following:

Purchase of inventory?
Implementing sales promos, if any?
Payment of salaries, if any?
Return of merchandise to supplier, if any?
Return of merchandise from customer, if any?
Payment of expenses, if any?
What is the process of recognizing net income (after the deduction of tax and
expenses)?
Enumerate the process.
What documents are necessary to prepare, if any
Who verifies the income as to its truthfulness?

(EXTRA SHEET IS PROVIDED, IN CASE IT IS NECESSARY. IF THE EXTRA SHEET IS

USED, LABEL THE ANSWERS PROPERLY.)