Expenditure Cycle at Sports Goods Galore

This assignment delves into the operational and functional aspects of the expenditure cycle at Sports Goods Galore. It examines how the business determines its values and benefits by assessing accounting information and strategic data. The analysis utilizes financial statements, reports, and a framework of Data Flow Diagrams (DFDs) to illustrate the processes involved in the expenditure cycle. Additionally, the assignment touches upon the role of Enterprise Resource Planning (ERP) systems in streamlining these processes.

ACCOUNTING
INFORMATION
SYSTEMS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
QUESTION 1...................................................................................................................................3
1...................................................................................................................................................3
2...................................................................................................................................................4
3...................................................................................................................................................5
4...................................................................................................................................................6
QUESTION 2...................................................................................................................................7
1...................................................................................................................................................7
2...................................................................................................................................................7
3...................................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Accounting is the set of the activities that are generally used by an organisation or a
management to analyse the business situation and their approaches of attaining profits and
revenue (Zach, Munkvold and Olsen, 2014). Similarly, the report is specifying information about
the accounting information system and its structuring in the organisation named Sports Goods
Galore which is a multi-store retail business that sells sporting equipment and all of their
products are purchased by the business are stored to the central warehouse.
QUESTION 1
1.
It is important that organisation should implement systematize planning which could help
them in managing and controlling the enterprises functions and entire kinds of operations.
Likewise, Sports Goods Galore should also introduce a computer based system that could assist
them in handling the organisational activities in effective manner. Their management team of the
organisation should analyse the situation faced by their business and staff members and
accordingly ascertain the type of implementation they need to do in their resources planning
system (Tenhiälä and Helkiö, 2015). In addition to this, the organisation should maintain a
regular up-gradation of the system so that the team could implement and apply changes to
present structure. This would enable them to achieve following opportunities and advantages:
 By adopting and implementing Enterprise Resource Planning (ERP) software, an
organisation can gain the option of accurate forecasting. As accurate forecasting is
generally used in inventory section for determining the required and available stock levels
for keeping maximum efficiency of the organisation.
 Integrating the activities of various departments in a systematic manner which ensures
them the process of communication, productiveness and efficiency.
 Application of ERP software eliminate the problem and issues of coordinating alterations
and changes that are addressed among the entire organisational systems (Nwankpa, 2015).
 ERP software gives an option of accessing information from a single source that enables
the organisation and their aspects to make effective and strategical decisions.

2.
The main aim of any organisation is to increase their marketing values and position in the
sector in order to attain high form of benefits and revenue. In that context, the team of Sports
Goods Galore need to address a proper origin of sources that are crucial for them in building
effective action plans which makes them lead the business to greater heights. In that respect, the
organisation should select the best and upgraded system of ERP which should support them in
ascertaining values and increase the level of customers' morale (Chou and et.al., 2014). Before
this, they have to assess the number of organizational processes and operational activities that
are placed under ERP.
This assessment would be beneficial for Sports Goods Galore and their managerial team
members for evaluating information and content of each and every organisational processes that
are controlled, monitored and managed by ERP. Moreover, following are the areas of
organisational processes that comes under ERP systems:
 Manufacturing processes – ERP helps the organisational team in maintaining the
approaches and operations related to:
◦ Engineering
◦ Resource & capacity planning
◦ Material planning
◦ Workflow management
◦ Quality control
 Financial sector – ERP assist in storing, calculating and maintaining computer data and
information regarding the organisation financial activities that includes:
◦ Accounts payable
◦ Accounts receivable
◦ Addressing total amount of fixed assets and liabilities
◦ Cash management and billing system
 Human Resource – The main areas of ERP helps the HR team in conducting functions
and operations that are:
◦ Recruitment
◦ Record keeping
◦ Generating compensations

◦ Conducting training
◦ Management of personnels
 Supply Chain Management -
◦ Supply chain planning
◦ Supplier scheduling
◦ Processing claims
◦ Sales order administration
◦ Transportation and distribution
 Projects
◦ Costing all the operations for completing the projects
◦ Billing activities
◦ Evaluating required, available and availed time and expenses.
 Customer Relationship Management (CRM)
◦ Performing sales and marketing functions
◦ Servicing the customers online and telephonic media
◦ Connecting to customers and placing 'after sales support'
3.
Organisation should maintain their approaches of performing the business task in a
systematic and innovative manner that should allow them to gain equivalent form of benefits and
overall profits by the entire set of managerial operations. ERP helps them in working and
executing the business task as per their manner and structure a route for attaining better profits
and overall achievements (Lin, Zhao and Wei, 2014). In that regard, it is vital for the
organisational team of Sports Goods Galore to determine and understand the ERP functionalities
in the business which would help them in ascertaining values and gain higher form of benefits.
In addition to this, it has been evaluated that ERP mostly focuses on some specific areas
and processes of organisation in order to maintain the effectiveness of the system and its
approaches. The key modules of the ERP system in respect of Sports Goods Galore are:
 Human Resource Module (HR): ERP module of HR helps the team of the organisation
to manage employee's information and records their related features, determining job
descriptions and other functions like performance, skill matrix, time & attendance
tracking (Ganore, 2013).

 Inventory Module (IM): The main object of this module is to maintain the level of stock
with the organisation so that they can avoid the situations of bulk orders, excess of
inventory, empty stock, etc. Placing online values and information enables the user to
control from any part (Kurbel, 2013).
 Sales and Purchases Module (SPM): This type of ERP module helps the management
team in accessing the number of sales and purchases made during the accounting period.
 Financing and Accounting Module (FAM): As per this module, the organisation could
upload their entire financials activities and accounting actions over the server which
enables them to evaluate future possibilities.
4.
The main purpose of introducing ERP needs to determine by the organisational aspects
that should be clear, accurate, appropriate and feasible. As creating a link and developing the
dimensions of ERP processes and systems requires proper attention and professional knowledge
so that proper forms of results could be achieved and accomplished by the teams (Grossman and
Walsh, 2014). In that context, the Sports Goods Galore should ascertain the values of ERP
according to and considering the following aspects: Evaluating ERP system: This step of ERP requires to be properly and effectively
performed by the organisation and their team members. As the further efficiencies and
abilities of the ERP is depending on the step of evaluation. Purchasing an ERP scheme: It is crucial that team should define an appropriate scale of
budget by identifying each and every ERP system as per their effectiveness and values.
ERP system should be cost effectual and acquirable by the organisation and they need to
compare.
 Implementing an ERP system: In the end, the selected ERP system is required to be
appropriately implemented in the organisation (Jeng and Dunk, 2013). This process needs
to be done by the help of experts and experienced persons that are having qualified and
professional knowledge about the system.

QUESTION 2
1.
2.
Illustration 1: Context diagram for the expenditure cycle at Sports Goods Galore

3.
Illustration 2: Level 0 logical DFD for the expenditure cycle at Sports Goods Galore

CONCLUSION
The report is articulating about the operational and functional activities of the business
determines the values and benefits by assessing the accounting information and strategical data of
the business. The accounting information of the organisation is generally evaluated by their
financial statements and reports generated in a particular year.
Illustration 3: Flowchart system for Sports
Goods Galore

REFERENCES
Books and Journals
Chou, H. W. and et.al., 2014. Knowledge sharing and ERP system usage in post-implementation
stage.Computers in Human Behavior. 33 (2). pp.16-22.
Grossman, T. and Walsh, J., 2014. Avoiding the pitfalls of ERP system
implementation. Information Systems Management. 21(2). pp.38-42.
Jeng, D. J. and Dunk, N., 2013. Knowledge management enablers and knowledge creation in
ERP system success. International Journal of Electronic Business Management, 11(1),
p.49.
Kurbel, K. E., 2013. Enterprise Resource Planning and Supply Chain Management. Springer
Berlin Heidelberg.
Lin, R., Zhao, X. and Wei, G., 2014. Models for selecting an ERP system with hesitant fuzzy
linguistic information. Journal of Intelligent & Fuzzy Systems. 26(5). pp.2155-2165.
Nwankpa, J. K., 2015. ERP system usage and benefit: A model of antecedents and outcomes.
Computers in Human Behavior. 45(2). pp.335-344.
Tenhiälä, A. and Helkiö, P., 2015. Performance effects of using an ERP system for
manufacturing planning and control under dynamic market requirements. Journal of
Operations Management. 36(2). pp.147-164.
Zach, O., Munkvold, B.E. and Olsen, D.H., 2014. ERP system implementation in SMEs:
exploring the influences of the SME context. Enterprise Information Systems. 8(2). pp.309-
335.
Online
Ganore., P., 2013. Basic Modules of ERP System. [Online]. Available
through:<http://www.esds.co.in/blog/basic-modules-of-erp-system/#sthash.t8WAskU9.dpb
s>.[Accessed on 25th August 2016].