CHAPTER I COMPANY PROFILE Company Name: MedCheck Pharmacy MedCheck Pharmacy is coined from the words medical and

check which in turn means being approved for offering the RIGHT medicine. Company Location: Main Office: Governor Pack Road, Baguio City, 2600, Benguet Magsaysay Branch: Rillera Building, Magsaysay Avenue, Baguio City, 2600, Benguet Session Branch: Abellera Building, Session Road, Baguio City, 2600, Benguet Contact Details: Main Office: 074 654 3210 / 0927-123-9876 Magsaysay Branch: 074 442 4310 / 0915789043 Session Branch: 074 229 9087 / 09168907654 Vision: To be one of the most preferred medical provider that is trusted by doctors, recommended by people, and ascertained to secure the health of the nation. Mission: To give the society commendable services, to answer expectations, and to satisfy and delight customer wants and needs through an atmosphere of professionalism, respect and effective communication. Objectives: 1. Exceed customer expectation with superior pricing 2. Increase the number of customers by more than 30% per year 3. Develop the business that itll survive off its own cash flows 4. Maintain low overhead and operating costs 5. Maintain a competitive edge over other pharmacies

HISTORY Having continuously elevating levels of prices in the mid 1990s, Mr. and Mrs. Cabriol decided to import medicines from different places. The need of their community, in Baguio City, for affordable medicines pushed them to build MedCheck, coined from the words Medical and Check. From the name itself, the pharmacy aims to give medical assistance to the people that is RIGHT and JUST. People deserve right treatment, afterall. Since almost all drug stores way back then sell their medicines in bulk, the owners decided to sell them in lower number of units, thus, starting the tingi -tingi concept in drug stores. This was decided upon due to the number of people who wanted to purchase medicine but cannot do so because of its volume and its price. 10 successful years after its establishment, the company decided to put up a branch in Magsaysay road, same province. But this did not stop MedCheck from widening its market reach. 5 years after branching out to Magsaysay, MedCheck established its second and newest branch, nearer to commercial sites, along Session road. MedCheck has been known in the market for almost 20 years and have faced different crisis in this span of time; competitors came, global crisis existed. However, due to the owners perseverance and its customers trust, MedCheck remained to exist in the market. Because for them, as long as people need medical products, MedCheck will always exist.

PRODUCT LIST AND DESCRIPTIONS I. Medicines 1. Analgesic- is a drug that's used to relieve pain without causing decreased consciousness. 2. Antipyretics- cause the hypothalamus to override an interleukin-induced increase in temperature. 3. Non-steroidal anti-inflammatory drugs- are drugs that provide analgesic and antipyretic (fever-reducing) effects, and, in higher doses, anti-inflammatory effects. 4. Anesthetic- is a drug that causes anesthesiareversible loss of sensation. They contrast with analgesics (painkillers), which relieve pain without eliminating sensation. 5. Antihistamine- are drugs that combat the histamine released during an allergic reaction by blocking the action of the histamine on the tissue. 6. Antidotes- substance which can counteract a form of poisoning 7. Antiepileptic- a drug used to treat or prevent convulsions (as in epilepsy) 8. Anti-infective- an agent that is capable of acting against infection, either by inhibiting the spread of an infectious agent or by killing the infectious agent outright. 9. Anti-migraine- is a medication intended to reduce the effects or intensity of migraine headache. 10. Anti-neoplastic- are drugs inhibiting or preventing the growth and spread of neoplasms or malignant cells. 11. Immunosuppressives- are used to prevent the rejection of transplanted organs and tissues, treat autoimmune diseases and other are non-autoimmune applied to inflammatory diseases. 12. Antisepticsare antimicrobial substances that living tissue/skinto reduce the possibility of infection, sepsis, or putrefaction. 13. Diuretics- provide a means of forced which elevates the rate of urination. 14. Antianginal- is any drug used in the treatment of angina pectoris, a symptom of ischaemic heart disease.

15. Psychotherapeutic medicines- include medicines used in generalized anxiety and sleep disorders, depressive disorders, obsessive compulsive disorders, psychotic disorders, etc. 16. Muscle relaxants- group of different drugs that each has an overall sedative effect on the body. 17. Gastrointestinal medicines- are used to prevent diseases related to the digestive tract 18. Medicines on the respiratory tract- includes antiasthmatic, antitussives, expectorants, immunoglobulins, etc. 19. Medicines for ears, nose, throatprescribed by EENT doctors for proper protection of ears, nose and throat for possible diseases. 20. Vitamins- are drugs used primarily for boosting the immune system, keeping the body protected from diseases. II. Hospital Materials 1. Abdominal Binder- an item used for low back strains, abdominal hernias, hysterectomies or other post-operative abdominal and torso support. 2. Abdominal Carbon Dioxide Flow Control Cock- an item designed for attachment to irrigation tubing. May include either a male or a female luer connector. 3. Abdominal Pad- an item used as a dressing to absorb drainage during operations and treatment of patients. 4. Abscess Drainage Kit- a group of items consisting of catheter, stylets, dilators, wire guide, needles, connecting tube, and other related items. 5. Absorbent Gauze- a cotton in the form of plain woven cloth, conforming to recognized medicinal standards. It is normally supplied in bolt, fold or roll form. 6. Adhesive Bandage- a compress of absorbent gauze or other suitable material, affixed to a film or fabric, coated with a pressure-sensitive adhesive substance 7. Anesthesia Inhaler- a metal grid, sometimes covered with wire gauze, designed to fit over the mouth and nose of a patient for the administration of anesthesia. 8. Catheter And Tube Bag- an elongated cylindrical or square-shaped container made of cotton duck. 9. Cotton Tape Roll- a tightly rolled and stitched cylinder which is free of loose threads and raw edges. 4

10. Ankle Brace- an orthopedic appliance designed to support the ankle after injury or surgical procedures. 11. Automatic Syringe- a device consisting of a barrel, plunger, three-way check valve, tubing, and needle. It is designed to draw liquid from a reservoir and deliver measured amounts to a receiver or to inject parenteral doses. 12. Balloon Catheter Retrieval Sheath- a sterile, disposable device designed to be used for removal of circumferentially ruptured angioplasty balloon catheters from the puncture site. 13. Bandage- a piece of material, varying in shape and size, applied to body or limb. 14. Cardiopulmonary Resuscitation Face Mask- an item designed to cover the patient's face during the administration of cardiopulmonary resuscitation. 15. Dispensing Needle- an item designed to be attached to an ampule for dispensing a specific medication dosage. 16. Dispensing Pin- a spike used with a rubber stoppered vial for administering solutions for injection. 17. Ice Bag- an item used for cold applications. 18. Immobilization Extremity Splint Kit 19. Inhaler Tube- a rubber or plastic tube, having end connections which connect oxygen tanks to rebreathing apparatus. 20. Medicinal Nebulizer- a device which employs an air blast in a chamber to vaporize a fluid. The chamber has jets and may have a baffle. 21. Purified Cotton- a bulk absorbent cotton which conforms to recognized medicinal standards for purified cotton. 22. Safety Hypodermic Syringe- a sterile, disposable item which consists of a barrel, plunger, and plastic lock hypodermic safety device on syringe. 23. Sterile Surgical Gauze Pad- an absorbable, sterile surgical gauze pad that is xray detectable and used invasively in patient. II. Hygiene-related Products 1. Hair Care Shampoo- Any of various liquid or cream preparations of soap or detergent used to wash the hair and scalp.

Conditioner- sometimes called cream rinse, are often used in hair care alongside shampoo, to improve the texture and appearance of human hair.

2. Facial Cleanser Facial scrub and foam- a thick substance which you use to clean the skin on your face thoroughly Whitening cream- a substance applied commonly after washing, to remove dead skin and promote whiter skin. Day cream- applied after washing, to protect skin from UV rays. Facial Toner- applied normally at night to cleanse the skin and shrink the appearance of pores 3. Underarm care Deodorant- used to prevent underarm perspiration and body odor. Razors- used to eliminate, shave pubic hair Ex. Sanitary Napkin, Panty liners, Tissues and wipes 5. Oral Care- used to protect, prevent oral diseases, strengthen teeth, etc. Ex. Floss, Mouthwash, Toothbrush, toothpaste 6. Skin Care- used to whiten and protect skin from harmful UV rays. Ex. Lotion, Alcohol, Cream, Hand lotion, sunscreen

4. Feminine Hygiene Products- used to compensate feminine needs

SEQUENCE OF OPERATIONS The operations of MedCheck pharmacy starts with the Inventory department wherein they are going to assess the inventories available for sale and the products or units that are to be restocked. They will then make a list of the things or products needed and pass it to the Administration for approval. After which, data gathered will be used for making purchase orders and transact with different laboratories and suppliers of the products that are sold in the pharmacy. These laboratories include VG laboratories, FREN group of companies, USANA Medical company (for different types of medicines); BELLO group of companies, UNILIVER (for cosmetics and other hygienic products) and 2 other companies, a total of 7 suppliers. There are also 3 contingent suppliers in case of emergency. The Inventory Department will also transact with the Finance Department for the budget allotted for the purchase and examine the costs. The Finance Department will in turn keep a record about the new inventories that are to be acquired, outflow of cash if the purchase will be paid immediately and/or record the increase in the accounts payable if it is not paid with cash. The suppliers will send the ordered products to the main branch and will be received and recorded by the Inventory department and is allocated to the main branch and its other branches. One of the major operations of MEDCHECK Pharmacy is the sales operations. Products are segregated according to their general classification- hospital-related materials, hygienic products, and Medicines. The sales of the pharmacy are also classified according to the type of customers (hospitals, retailers, over the counter customers, and other business establishments). In cases of sales to hospitals, retailers and other business establishments, requests are received through purchase orders. After signing contracts and other papers of approval, the pharmacy will deliver the products to the buyers. The Inventory department will record the sales and the reduction of inventory. The Finance Department will also record the sales for either receipt of cash or an increase in the accounts receivable. The products are delivered through the use of a container van and usually delivered to 7 retailers, 3 hospitals and 3 other business establishments.

In case of over the counter sales, the products sold will be immediately recorded as a sale and all other transactions are recorded as cash so no further problems are encountered, except for returns which are recorded as either a direct loss or addition to the inventory depending on the case o reason of return and its corresponding action according to the companys business rules.
Figure 1.1 Major Operations of MedCheck Pharmacy

BUSINESS RULES I. Inventory Management 1. All drug shipments should be delivered unopened to the pharmacy. 2. Purchase returns should be separated from those in stored in the pharmacy for sale. 3. Inventories are to be accounted and classified through the general classifications enlisted in the companys product list. 4. Non-usable and expired drugs are to be stored in a separate area until final disposal. 5. If the manufacturers expiry date states the month and year but not the date, the expiry date is the last day of the month indicated. 6. Inventory count is to be done monthly and inventory check are to be done weekly. 7. Inventories are accounted for using the FIFO method. II. Sale and Disposal 1. Sales should be accounted for outright and immediately after transaction. 2. Sales returns due to non compliance to standards should be stored in an area, same with those expired, to settle all medicines for final disposal. 3. Bulk sales to hospitals and other smaller drug stores are entitled to 3% percent discount. 4. Accounts and notes receivables (only from wholesale) are subject to interest at 5% per annum. 5. Senior citizens are entitled to 20% discount on all products. III. Returning of drugs 1. Returned drugs with no receipt, should not be accepted as sales returns. 2. Only those that are returned within 48 hours are entitled for exchange. 3. Returned products (fault of employee, incorrect product given) are entitled for an exchange for other products initially asked by the customer.

IV.

Records 1. Books, receipts, and invoices are to be kept in the accounting office for record keeping purposes. 2. Books are to be closed periodically. 3.All purchases, purchase returns, sales, sales returns, disposal are to be recorded immediately in the books.

V.

Operations 1. Operations are done 24 hours a day and 7 times a week. 2. Due to continuous operations, shifting of employees is practiced from7 am-3 pm, 3 pm-11 pm, and 11 pm-7 am.

VI.

Branch Transactions 1. Shipments are to be delivered after notification by branch. 2. Shipments to branch are to be accounted at cost. 3. Branch inventories are only acquired from the main office. Outside purchases are not allowed. 4. Monthly financial statements are to be reported by the branch to the main office. Financial statements include statement of financial position, income statement and cash flows. 5. Branch inventories are to be tracked through its monthly income statement reflecting the branchs beginning and ending inventories. 6. Branchs income is to be remitted monthly net of branchs commission. 7. Branch return of inventories are to be treated the same as the return from customers.

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CHAPTER II

PROBLEMS AND THEIR BACKGROUND 20 years of existence. MedCheck already existed in the market that long. However, throughout this span of time, different concerns arose and Inventory Management has been the most difficult to deal with. Paper based record keeping has always been the norm in our society, for years. People have been bearing with several issues like reliability, security, and, storage, that comes with paper based system. Unfortunately, that society includes MedCheck Pharmacy. MedCheck uses a manual information system to record inventory flows (supplies, inventories that were sold, and those that were disposed) in paper form, therefore, much resources like paper are being used and, in time, being wasted due to the number of transactions in its everyday operations. Moreover, having data stores, like in filing cabinets, brings an unproductive use of storage space. Keeping records in papers could lead business documentation at risk as well in case of fortuitous events like fire as there would be no back up. In addition, accounting for all of these, manually and individually, will not just waste resources, but time and effort too. Due to its manual-based system, ordering and retrieval of data became more time-consuming. Response on information requests takes a lot of time because there is current unavailability of records since files are stored in filing cabinets. There are chances too that data may not be retrieved which do not just affect other pending transactions but may also create bad impression to clients as there is poor customer service. Another difficulty that is taking place in the business is that operations became highly labor-intensive than usual. As progress occurs, the entity is force to require continuous monitoring to ensure that each transaction is accounted for and that products are maintained at the appropriate quantity. It is also more difficult to share inventory information throughout the business, because the lack of computerization makes accessing inventory records a more cumbersome process. What is more 11

lamentable is the thought that the time spent monitoring inventory levels could just be used on more productive activities for the business. Last but one of the most important factors to consider is that the pharmacy inventory system relies heavily on the actions of people, making it less reliable and less accurate due to human error factor. People might forget to record a transaction or simply may commit inaccurate data on the products being purchased, sold, and disposed. This results in needless additional orders that increase the business's inventory carrying costs and, in much crucial circumstances, may lost customers loyalty and trust.

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PROPOSED SOLUTION The swift evolution of technology has given society, particularly the business world, an apparent upshot. Developments are seen even in the least segment of almost every business entity for the purpose of them becoming up to date. A sound instance is the gradual modification from manual-based to computer-based information system. As a growing pharmacy in the city, MedCheck needs to adapt to this change. MedCheck needs an Information system that would allow the company to a more efficient monitoring of the medicine stocks and medical supplies. Status updates of the medicines and medical supplies will be recorded using perpetual accounting (Accounting for inventories status after every transaction). The system should also possess the name of product, date manufactured, manufacturer and supplier, distributors, and date of expiration. One of the objectives of this proposal is to lessen the use of unnecessary resources such as paper. One computer is to be given for each department: Inventory, Administration, and Finance. These computers should be networked for easy access on inventory status. Employees (Cashier) are only allowed to input sales data on the system. Inventory department is entitled to an input-and-read access on inventory flow data. Finance department is also entitled to an input-and-read access but limited to cash flow data only. Administration, on the other hand, is only allowed to view information processed by other departments. This Information system will not only save time and effort, but will also conserve resources.

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SCOPE AND DELIMITATION The coverage of this study is focused on the nature of the activities that Medcheck undergoes in its daily operation such as recording transactions that the entity is engaged and accounting for inventories being purchased, sold and disposed in the course of the accomplished and anticipated dealings. In other words ,this study merely limits itself on every aspect of the business's undertakings that has an impact in its performance as a growing entity but primarily focused on MedCheck Pharmacy as a seller rather than a buyer of merchandise. The information system provides a basis for recording sales and purchases. It records the quantity for each item at the end of each period. It encompasses the inventory system that supplies statements on the businesss previous and current stocks. These include valuing the inventory, measuring the change in inventory and planning for future inventory levels. The value of the inventory at the end of each period provides a basis for financial reporting on the balance sheet. Measuring changes in inventory that allows the company to determine the cost of inventory sold during the period. The inventory level and changes allow the company to plan for future inventory needs. Consequently, MedCheck business will adopt a general model for their own use. This means that in the proposed information system, the authorized people must be able to track sales of a product and match it against their existing inventory to regulate how much stock they keep to hand and how much it costs them to do so. Perceptibly, this is necessary for any business in order to run efficiently. This study is delimited to the preparation, implementation, and

evaluation of a prototype of the MedChecks computer-based information system. It is centered on the enhancement and not the entire alteration of the previous system that the business used. Hence, the proposed information system is rather an improved replica of the old system in an advance, upgraded, comprehensive and time-conserved manner.

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FEASIBILITY STUDY I.OPERATIONAL Operation makes up the daily activities the business is engaged. From dealing with customers to administering its different departments, operation plays a vital role in its every move that makes its superiorly essential to bear in mind. Thus, it can deliberately be assumed that modifying the information system that the business is currently using leads to certain changes in the everyday undertakings. Trading the old system and settling for a new one alone would not affirm betterment of the enterprise. Nevertheless, some major advantages with regards to the businesss operation are the following: If the intend Information System will be used, more work will be accomplished by the employees and the use of unnecessary resources will decrease. To make it more specific, an example of such will be the time spent for searching or retrieving data from the pharmacys books of records. Instead of utilizing time for this activity, employees may allocate their time for more beneficial activities, like serving customers with their needs and wants. Communication in different departments will become easier not only to the company, but as well as to their suppliers and distributors, since, only one data monitoring process is circulating in the business. Monitoring of inventories will then be outright and immediate. This proposal is not just beneficial for the company itself but to the customers as well. Due to the decrease in time allotted for different tasks, employees may transact with customers faster. Delay in providing services will be eliminated. Therefore, it might lead to an increase customer satisfaction. Conversely, the information system, if being applied, would not just affect the operation itself but the people behind the functionality of the business daily operation. Since, paper-based system is being replaced by computer-based system, hired employees who are accustomed to human-powered process will have to undertake skills standard development trainings. On the contrary, multiple benefits 15 structure of the operations of its

will be obtain in the light of training the compa nys like boosting the morale of the staffs, increasing their productivity and giving the organization the competitive advantage it needs in these tough economic conditions. II. TECHNICAL Putting up an Information System requires a set of resources to make its purpose possible. Giving up some of these resources is essential to benefit the company in the long run. Requirements includes: financial, human and technical resources, all of which are certainly available. MedCheck pharmacy, with its 20 years of penetration in the market, it can absolutely afford to compensate the financial needs of the application of this system since the companys outflow of financial resources is way less than its inflows. Man power needs, on the other hand, are outright available since the system is to be operated by the current employees themselves and maintenance are to be performed by the analyst and the programmer. On the part of the technical resources, six desktop computers worth P25,500 each (specifications can be seen in cost and benefit analysis), three point of sale receipt printers for the three counters valued at P4000, three data printers for each departments which cost P3300 and one wholesale/retail printer for bulk and special form of sales worth P10,500 and any technical-related needs can be acquired easily with the dependable supplier at point of purchase. III. SCHEDULE
Figure 2.1 Assumed Time Table for Information System Availability

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The Information System, as estimated, will be available in 5-6 months. After this period, data and other necessary information may be accessed outright. However, maintenance is to be offered whenever errors and changes occur. Being an investment, the information system is a long term investment. It is expected to benefit the company until the time that advancements that are more suitable to new needs of the company exist. By that time, it will be the decision of the company whether to retain the old Information system and update changes or to fully alter it. IV. ECONOMIC The Information System will benefit the company economically. Basically, as stated on the problems encountered by the company, paper resources and efforts are used all the time. However, this information system will decrease usage of such resources, therefore minimizing costs incurred. In the short run, the company might not be able to realize costs reduced since such resources are at a minimal effect compared to the information system. Economically speaking, application of the information system is a matter of measuring opportunity cost: either you give up capital for the moment and gain benefit in the long run or you spend money at a lower cost for the moment and let it accumulate for the future. This proposal will minimize future costs, since information systems are expected to give benefit for a long term and will serve as an investment at the same time. Revenues, on the other hand, are expected to flow faster into the company. Using manual-based information system needs a lot of time to facilitate transactions with customers, thus, making revenues be realized below par. Introduction of this system will increase the rate of realization of revenues since faster accommodation of customers will occur. In line with the cost benefit analysis that is presented below, the benefit amounted to P747,400 exceeds cost of P 482,400 which significantly denotes that the proposed system is considered necessarily to be pursued. Economic effects of this proposal are not expected to be realized outright. Taking to consideration that it is an investment, benefits will took effect in gradually. 17

COST BENEFIT ANALYSIS I. COSTS

DETAILS Initial Costs Research Cost Computer *Purchase Price of six computers **Purchase Price of seven printers Freight and handling costs Physical Installation and assembly cost Costs Related to the System Labor and Development Costs System analyst fee Programmer fee Cost of Testing Other Costs Staff training Maintenance Additional Operational costs TOTAL COSTS

AMOUNTS

10,000

P153,000 P 32,400 7,000 8,000 200,400

100,000 120,000 220,000 17,000

10,000 15,000 10,000 35,000 P482,400

(Note: The values are only estimates using their present values and fair market values. The values are estimated at the end of the first accounting period when the system is applied.)

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Research Costs- a research is done to know if the new technological process that will be introduced to the business would bring future and sustainable economic benefits. This research also involves technological, economical, and operational feasibility studies and cost benefit analysis.

Cost of computer and printer- the purchase price of the computer including printer plus other directly attributable costs like installation cost, and delivery and handling costs. At the end of the period, the value of the new computer will be reduced due to depreciation. The carrying amount of the computer is computed by subtracting the depreciation from the purchase price. But since the fair market value is used, the value shown above is at its prevailing market value at the end of the period. The cost shown above is the cost of 6 computers. Each computers are bought at a price of P25,500

Installation and Assembly Costs- this is the cost incurred while making the asset of the computer available for use.

Labor and development Cost- this is the cost incurred for the services of a system analyst and the programmer. The amounts are totaled for the period of 6 months which is the period estimated for the completion of the system.

Cost of Testing- this is incurred in the series of trials to test if the system is already operational and it is also used to check errors in the system so they would be corrected.

Staff training- before the actual performance of the system, the staff, especially the one responsible for the stocks or inventories should be trained on the proper usage of the system. This is very essential to prevent errors. The cost is incurred for the payment of the trainer. The manager and other employees related to the inventories will also be trained.

Maintenance- this is essential to prevent fast deterioration and obsolescence of the computer. It depends on the discretion of the management whether to let the 19

analyst and programmer to be on this service or to outsource another personnel in maintaining the system. Additional Operational Costs- for the additional computer or the longer hours used for the system, of course, other expenses like electricity would increase. The value presented is the estimated increased in the expense for the period.

II. BENEFITS Operational Benefits Return on Investment Increase in market Intangible benefits Goodwill Safety Error prevention Speed New Asset TOTAL P250,000 15,000 10,000 12 ,000 287,000 200,400 P747,400 P200,000 60,000 P260,000

( Note: the monetary values are just estimates based on their prevailing market rate) Return on investment- this is simply the impact of the new developments applied to the business. This will determine if the revenues generated by the pharmacy with the use of the new system would exceed the costs. Increase in Market- due to fast and reliable customer service, it is expected that the number of customers would increase. Safety- Once data is entered into a computer, it is safe. The chances of losing data are remote, especially when you perform regular system backups. In manual systems, paper pads can be lost or damaged more easily. 20

Error prevention- Cutting down on errors made is an advantage that the sytem can bring to the pharmacy. Speed- Using codes can quicken the way in which the pharmacy operates. Codes help keep better track of these essentials by processing quickly and precisely. Also, when taking inventory, they not only reduce the amount of time to calculate per item, they also can reduce the amount of employees required to work on calculating the stock.

Goodwill- this will be increased due to strong brand name, good customer relations because their needs will be addressed immediately because of the new system, good employee relations and any patents or proprietary technology. Goodwill also determines the relationship of the business to its suppliers. This is very important because this will reflect the sales of the pharmacy and how much customers trust it.

New Asset- because the computers are new, there will be an increase in the asset of the entity. Also, it is expected that the asset will perform effectively and efficiently at a long period of time.

*Computers to be purchased together with their specifications and corresponding costs are shown below: Processor (CPU):Intel Core I3 3.1 Ghz Motherboard: ASUS P8H61-MLE Motherboard Ram: 2 Gb DDR3 Ram CORSAIR Hard Disk: 500 Gb Sata HDD Western Digital Optical Drives: Sony 24x DVD Writer Sata Keyboard: Logitech Classic Keyboard Mouse: Logitech M100 Optical Mouse USB Monitor: 15.6 LED Monitor AOC Cabinet: Intex Flame ATX Cabinet With Front USB and Sound Operating System: Microsoft Windows XP Professional Cost per Computer Number of computers to be purchased Total costs of computers P5,800 P4,700 P 850 P4,050 P1,200 P 350 P 450 P4,150 P 950 P3,000 25,500 6 153,000

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**Printers with their respected costs are presented on the following: Three Point-of-sale printers Product Name : Epson TM-U220B Dark Grey Dot Matrix Receipt Printer Cost of printer Number of printers Total costs of printers One wholesale /retail printer Product Name : Three Data printers Product Name : Epson Workforce 500 all-in-on Cost of printer Number of printers Total costs of printers Total cost of printers (P12,000 + P10,500 + P9,900) P 3,300 3 P9,900 P32,400 Epson LQ-300+ II P10,500 P 4,000 3 P12,000

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CHAPTER III Context Diagram

23

Diagram 0

24

Level 1 (1.0)

25

Level 1 (2.0)

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DATA DICTIONARY ACCOUNT CASH SALES a) Process Name: Account Cash Sales b) Description: Accounting for Cash Sales is a basis of the invoice price to be billed to the customer by computing the amount due net of discounts taken c) Process No.: 2.2 d) Process Description: Input Data Flow(s): Gross Amount Due Output Data Flow(s): Net Amount Due Multiply Gross Amount Due by (1- Cash Discount) and by (1-Special Discounts) ACCOUNT CREDIT CARD TRANSACTIONS a) Process Name: Account Credit Card Transactions b) Description: Accounting for Credit Card Transactions includes the receipt of actual cash payment of the entity from authorized banks c) Process No.: 2.3 d) Process Description: Input Data Flow(s): Gross Amount Due Output Data Flow(s): Payment by Bank If payment by bank is made, transaction is then accounted for with the same treatment as cash sales ACCOUNTS RECEIVABLE a) Descriptions: Reflects the companys right to collect against other entities. b) Alternate name(s): Sales on Account c) Data structure: From 4.0 to 5.0 d) Volume and Frequency: Approximately once a week ACCOUNT RECEIVABLES a) Process Name: Account Receivables 27

b) Description: Accounting for Receivables includes the recognition of the customers obligation and the right of the entity to collect an amount inclusive of the gross amount due subject to interest. c) Process No.: 2.4 d) Process Description: Input Data Flow(s): Gross Amount Due Output Data Flow(s): Net Amount Due Multiply Gross Amount Due by (1+Interest Rate) ACCOUNTING DATA a) Description: Data that supports the accountability of a given transaction with inventories iinvolved in it. b) Alternative name: Assess value of data c) Origin: Inventory, Cash Sales, Accounts Recievable d) Destination: Produce Reports e) Data Structure: ACCOUNTING DATA = {AMOUNT} + {PRODUCT} AMOUNT = {NUMBERS} PRODUCT = PRICE + PRODUCT DESCRIPTION + PRODUCT QUANTITY PRICE = {NUMBERS} QUANTITY = {NUMBERS} NUMBERS = {0-9) LETTERS = {A-Z} f) Volume and frequency once a day ADDITIONAL INVENTORY DATA a) Description: Data that represents the replenishment or new stocks added to inventories on hand b) Alternative name: Purchases, Purchased inventory c) Origin: Update Inventory d) Destination: Inventory e) Data Structure:

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ADDITIONAL INVENTORY DATA= [SUPPLIER NAME/ SUPPLIER ACCOUNT] + {PRODUCT PURCHASED} + DATE + BILL ADDRESS + AMOUNT PRODUCT PURCHASED= {PRODUCT ORDERED} PRODUCT ORDERED= {PRODUCTS} PRODUCTS= PRODUCT NAME + STOCK NUMBER + DESCRIPTION + QUANTITY PURCHASED + PRICE f) Volume and Frequency: three times a week ALLOCATE INVENTORY a) Process Name: Allocate Inventory b) Description: Allocation of Inventory is concerned with the segregation of inventory to be delivered to the branch accounted for as Investment in Branch c) Process No.: 3.0 d) Process Description: Input Data Flow(s): Inventory Status Output Data Flow(s): Shipments to Branch AUTHORIZED BANK a) Description: Authorized Banks are external entities that facilitates payment in behalf of credit card user-customers. b) Alternate name(s): Financial Institution c) Input Data Flow(s): d) Output Data Flow(s): Credit Card Approval BRANCH a) Description: Branches are external entities in substance but internal in form. They are treated as extensions of the Main Office b) Alternate name(s): Extension c) Input Data Flow(s): Shipments to Branch d) Output Data Flow(s): Branch Reports; Branch Inventory Returns

BRANCH INVENTORY RETURN a) Description: these are data pertaining sending back inventories coming specifically from the branch.

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b) Alternative name: Branch trade returns c) Origin: Branch d) Destination: Update Inventory e) Data Structure: BRANCH INVENTORY RETURNS= [BRANCH NAME/BRANCH ACCOUNT] + {PRODUCTS RETURNED} + DATE DATE={NUMBERS|LETTERS} BRANCH NAME= {LETTERS} BRANCH ACCOUNT= {NUMBERS|LETTERS} PRODUCTS RETURNED= {PRODUCTS} PRODUCT= STOCK NUMBER+PRODUCT NAME + DESCRIPTION + QUANTITY + PRICE STOCK NUMBER= {NUMBERS} PRODUCT NAME={LETTERS} DESCRIPTION={NUMBERS|LETTERS} QUANTITY={NUMBER} PRICE={NUMBER} f) Volume and Frequency: once or thrice in every 3 weeks BRANCH REPORTS a) Description: a set of financial statements that ,as a whole, are reported in the main entity by its branch which is helpful in monitoring the branchs performance and issuing combined reports b) Alternate name(s)- Local office reports c) Input data flows: Branch d) Output data flows: Produce Reports e) Data structure BRANCH REPORTS = [BRANCH NAME|BRANCH ACCOUNT]+ [FINACIAL STATEMENT] + DATE BRANCH NAME={LETTERS} BRANCH ACCOUNT=NUMBER+LETTERS

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FINACIAL STATEMENT= {STATEMENT OF FINACIAL POSITION} +{ STATEMENT OF COMPREHENSIVE INCOME }+ {STATEMENT OF CHANGES IN EQUITY}+ STATEMENT OF CASH FLOWS} STATEMENT OF FINANCIAL POSITION= ASSETS + LIABILITIES+HOME OFFICE CURRENT ACCOUNT STATEMENT OF COMPREHENSIVE INCOME=REVENUE+EXPENSES+[PROFIT] STATEMENT OF CHANGES IN EQUITY=HOME OFFICE CURRENT ACCOUNT+[PROFIT|LOSS] STATEMENT OF CASHFLOWS= INFLOWS+OUTFLOWS ASSETS= {LETTERS+NUMBERS} LIABILITIES= {LETTERS+NUMBERS} HOME OFFICE CURRENT ACCOUNT=LETTERS+NUMBERS REVENUE={LETTERS+NUMBERS} EXPENSES={LETTERS+NUMBERS} PROFIT={LETTERS+NUMBERS} INFLOWS= {LETTERS+NUMBERS} OUTFLOWS={LETTERS+NUMBERS} DATE=MONTH+DAY+YEAR MONTH={JANUARY-DECEMBER} DAY={NUMBER} YEAR={NUMBER} LETTERS={A-Z} NUMBERS={0-9} f) Volume and frequency once every month CASH RECEIPTS a) b) c) d) Description-The payment of the customers for their purchases they bought. Alternative name-Proceeds, Revenue Origin- Manage Sales Destination- Cash Sales

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e)

Data structure

CASH RECEIPT= INVOICE NUMBER+INVOICE DATE+(CUSTOMER NAME)+{PRODUCT}+AMOUNT +(PAYMENT METHOD) INVOICE NUMBER={NUMBER} INVOICE DATE=MONTH+DAY+YEAR MONTH={JANUARY-DECEMBER} DAY={NUMBER} YEAR={NUMBER} CUSTOMER NAME=GIVEN NAME+MIDDLE NAME+SURNAME GIVEN NAME={LETTERS} MIDDLE NAME={LETTERS} SURNAME={LETTERS} PRODUCT=PRODUCT NAME+DESCRIPTION+QUANTITY ORDERED+PRICE QUANTITY ORDER={NUMBER} PRICE= {NUMBER} AMOUNT=[CASH|CREDIT CARD] PAYMENT METHOD=[CHECK I ACCONTS RECEIVABLE I CASH|CREDIT CARD] LETTERS={A-Z} NUMBERS={0-9} CASH RECEIPTS={CASH RECEIPT} f) Volume and Frequency : Approximately 75 times an hour (over the counter sales) and once a week (wholesale) CASH SALES a) b) c) d) Descriptions: Includes total revenue earned, inventory sold, and payment received from customers Alternate name(s): Sales Data Structure: From 4.0 to 5.0 Volume and Frequency:; Approximately 75 per hour and once a week

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e) Data Structure: CASH SALES=NET AMOUNT DUE NET AMOUNT DUE=QUANTITY OF THE INVENTORY+{PRODUCT NAME}+LIST PRICE + {DEDUCTION OF DISCOUNTS TO SENIOR CITIZENS AND OTHER SPECIAL CUSTOMERS} DEDUCTION OF DISCOUNTS TO SENIOR CITIZENS AND OTHER SPECIAL CUSTOMERS=GROSS AMOUNT+RELATED DISCOUNT RELATED DISCOUNT={NUMBERS} GROSS AMOUNT={NUMBERS} PURCHASE NUMBER = {NUMBERS} PRODUCT = PRODUCT NUMBER + [ PRODUCT NAME/ PRODUCT DESCRIPTION ] + QUANTITY ORDERED + PRICE PRODUCT NAME = {LETTERS} PRODUCT DESCRIPTION = {LETTERS} QUANTITY ORDERED = {NUMBERS} PRICE = {NUMBERS} LETTERS = {A-Z} NUMBERS = {0-9} f) Volume and Frequency: Approximately 75 times an hour

CHECK INVENTORY a) Process Name: Check Inventory b) Description: Checking of Inventory includes verification of orders availability on the companys currently held inventories available for sale. c) Process No.: 1.1 d) Process Description: Input Data Flow(s): Order Request Stock Request Inventory Status Output Data Flow(s): Notice of Order Unavailability Available Ordered Data 33

 IF Order is in Inventory THEN Add Order to Available Orders for Confirmation COMPUTE SALES a) Process Name: Compute Sales b) Description: Computing of Sales includes the usage of the list price per product and quantity ordered by the customer resulting to the gross amount receivable from customers c) Process No.: 2.1 d) Process Description: Input Data Flow(s): Sales Confirmation Output Data Flow(s): Gross Amount Due Multiply list price per product by the quantity ordered CONFIRM SALE OF INVENTORY a) Process Name: Confirm Sale of Inventory b) Description: Once the system verifies that orders are available, it should notify the customer for confirmation and account inventories to be sold as reserved. c) Process No.: 1.2 d) Process Description: Input Data Flow(s): Available Ordered Data Validated Order Data Output Data Flow(s): Purchase Confirmation Reserve/Stockpile Validated Order Data COMBINED FINANCIAL STATEMENT a) Description: financial statement that brings together the assets, liabilities, net worth, and operating figures of two or more affiliated entities which contributes to the determination of the businesss stand at a given time. b) Alternate name(s) Combined reports c) Origin Produce Report d) Destination Manager, Finance

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e) Data structure : CONSILIDATED FINANCIAL REPORTS = BANK STATEMENT + SALES + CASH FLOWS + INVENTORY BANK STATEMENTS = CASH DEPOSITS + CASH WITHDRAWALS CASH DEPOSIT = {NUMBERS} CASH WITHDRAWALS = {NUMBERS} LETTERS={A-Z} NUMBERS={0-9} f) Volume and frequency once every month CREDIT CASH APPROVAL a) Description- a payment card is electronically linked to an account or accounts belonging to the cardholder. These accounts may be deposited in advance. b) Alternative name: Charge card payment, Stored Value Card c) Origin -Authorized Bank d) Destination- Manage Sales e) Data structure : CREDIT CARD PAYMENT=INVOICE DATE+CUSTOMER NUMBER+[COMPANY NAME|ADDRESS]+ACCOUNT NAME +AMOUNT+TYPE OF CARD+OFFICIAL RECEIPT NUMBER INVOICE DATE= MONTH+DAY+YEAR MONTH={JANUARY-DECEMBER} DAY={NUMBER} YEAR={NUMBER} CUSTOMER NUMBER= {NUMBER|LETTER} COMPANY NAME=COMPANY NAME+COMPANY SLOGAN COMPANY ADDRESS=ADDRESS ADDRESS= (P.O. BOX NUMBER) + STREET + CITY +(COUNTRY) + ZIPCODE AMOUNT=ACCOUNT CODE+AMOUNT TYPE OF CARD= [VISA/MASTERCARD/OTHERS]

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ACCOUNT NAME=NAME OF CUSTOMER+ACCOUNT NUMBER+EXPIRATION DATE+SIGNATURE OF PAYOR NAME OF CUSTOMER=GIVEN NAME+MIDDLE NAME+SURNAME GIVEN NAME={LETTERS} MIDDLE NAME={LETTERS} SURNAME={LETTERS} CREDIT CARD PAYMENTS={CREDIT CARD PAYMENT} LETTERS={A-Z} NUMBERS={0-9} f) Volume and Frequency : Approximately thrice a week

CUSTOMERS a) Description: Customers are external entities that are considered as the blood of the business. They are the end users and consumers of the products the business offers. b) Alternate Names: Clients c) Input Data Flow(s): Invoice d) Output Data Flow(s): Sales returns, payment

REDUCTION RECEIVABLE a) Description: a data that updates the records of account receivables that have been canceled due to customers payment that occur after a certain period o time. b) Alternative name: Credit Memo for Accounts Receivable c) Origin: Update Sales d) Destination: Account Receivable e) Data Structure: GROSS AMOUNT DUE=QUANTITY OF THE INVENTORY+{PRODUCT NAME}+LIST PRICE PURCHASE NUMVER = {NUMBERS} PRODUCT = PRODUCT NUMBER + [ PRODUCT NAME/ PRODUCT DESCRIPTION ] + QUANTITY ORDERED + PRICE 36

PRODUCT NAME = {LETTERS} PRODUCT DESCRIPTION = {LETTERS} QUANTITY ORDERED = {NUMBERS} PRICE = {NUMBERS} LETTERS = {A-Z} NUMBERS = {0-9} f) Volume and Frequency: Thrice every one week

FINANCE a) Description: The Finance Department is the one responsible for managing the companys cash flows. b) Alternate name(s): Accounting c) Input Data Flow(s): Combined Financial Reports d) Output Data Flow(s): -

INVENTORY a) Descriptions: Inventories are merchandise bought from suppliers that are to be sold to other entities b) Alternate name(s): Merchandise c) Data Structure: From 2.0 to 5.0 d) Volume and Frequency: Approximately 75 times per hour INVENTORY REDUCTION a) Description-The data that is send to inventory to inform the data store about the removal of inventory due to defective and expired stocks. b) Alternate name(s) Decrease, Lessen c) Origin Update Inventory d) Destination Inventory e) Data Structure INVENTORY REDUCTION = PRODUCT CODE+PRODUCT NAME+ QUANTITY PRODUCT CODE={NUMBERS+LETTERS} PRODUCT NAME= {LETTERS}

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QUANTITY = {NUMBERS} LETTERS={A-Z} NUMBERS={0-9} f) Volume and frequency once every week

GROSS AMOUNT DUE a) Description: Data that concerns with the aggresgate outstsanding amount owed by the customer to the entity due to compliance of past transactions b) Alternative name: Aggregate sales amount c) Origin: Compute Sales d) Destination: Account Cash Sale, Account Receivable, Account Credit Card Sale e) Data Structure: GROSS AMOUNT DUE={ORDER DESCRIPTION} PRODUCT = PRODUCT NUMBER + [ PRODUCT NAME/ PRODUCT DESCRIPTION ] + QUANTITY ORDERED + PRICE PURCHASE NUMBER = {NUMBERS} PRODUCT NAME = {LETTERS} PRODUCT DESCRIPTION = {LETTERS} QUANTITY ORDERED = {NUMBERS} PRICE = {NUMBERS} LETTERS = {A-Z} NUMBERS = {0-9} f) Volume and Frequency: Approximately 75 times an hour (over the counter sales) and once a week (wholesale) INVENTORY SOLD a) Description: Inventories sold are deductions to currently held inventories available for sale. b) Alternative name: Sales c) Origin: Order Inventory d) Destination: Inventory

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e) Data Structure INVENTORY SOLD = ORDER STATUS + { PRODUCT } + QUANTITY ORDERED PRODUCT = PRODUCT NUMBER + [ PRODUCT NAME/ PRODUCT DESCRIPTION ] PRODUCT NUMBER = {NUMBERS} PRODUCT NAME = {LETTERS} PRODUCT DESCRIPTION {LETTERS} QUANTITY ORDERED = {NUMBERS} LETTERS = {A-Z} NUMBERS = {0-9} f) Volume and Frequency: Approximately 75 times an hour (over the counter sales) and once a week (wholesale) INVENTORY STATUS a) Description: Inventory status contains data that reflects the condition of the inventories. b) Alternative name: Stock condition c) Origin: Inventory d) Destination: Order Inventory e) Data Structure INVENTORY STATUS = { PRODUCT} + QUANTITY AVAILABLE PRODUCT = PRODUCT NUMBER + [ PRODUCT NAME/ PRODUCT DESCRIPTION ] + QUANTITY ORDERED + PRICE QUANTITY AVAILABLE= PRODUCT LIST + QUANTITY PRODUCT LIST = {LETTERS} QUANTITY = {NUMBERS} NUMBERS = {0-9} f) Volume and Frequency: Approximately 75 times an hour (over the counter sales) and once a week (wholesale)

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INVOICE a) Description- A business document issued any time when sale takes place. b) Alternative name- Bill, Proof of Purchase c) Origin- Manage Sales d) Destination : Customers e) Data structure : INVOICE=INVOICE NUMBER+ISSUED DATE+SALES NUMBER+COMPANY NAME+COMPANY ADDRESS+(CUSTOMER NAME)+{PRODUCT}+AMOUNT INVOICE NUMBER={NUMBER} INVOICE DATE=MONTH+DAY+YEAR MONTH={JANUARY-DECEMBER} DAY={NUMBER} YEAR={NUMBER} COMPANY NAME=COMPANY NAME+COMPANY SLOGAN COMPANY ADDRESS=ADDRESS ADDRESS= (P.O. BOX NUMBER) + STREET + CITY +(COUNTRY) + ZIPCODE CUSTOMER NAME=GIVEN NAME+MIDDLE NAME+SURNAME GIVEN NAME={LETTERS} MIDDLE NAME={LETTERS} SURNAME={LETTERS} PRODUCT=PRODUCT NAME+PRODUCT CODE+PRODUCT TYPE+PRICE+EXTENTED PRICE+VAT QUANTITY ORDER={NUMBER} PRICE= {NUMBER} VAT= PERCENTAGE OF ORDERED PRODUCT AMOUNT=[CASH|CREDIT CARD] LETTERS={A-Z} NUMBERS={0-9} INVOICES= {INVOICE} f) Volume and Frequency : Approximately once a week

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ISSUE INVOICE a) Process Name: Issue Invoice b) Description: Issuance of Invoices is the same as billing the customer the amount due net of discount or inclusive of interest. c) Process No.: 2.6 d) Process Description: Input Data Flow(s): Net Amount Due Output Data Flow(s): Invoice

MANAGER a) Description: A Manager is the one responsible for planning, controlling, operating, and leading the company in decision making. b) Alternate name(s): Head Operator c) Input Data Flow(s): Combined Financial Reports d) Output Data Flow(s): -

MANAGE SALES a) Process Name: Manage Sales b) Description: Manage Sales is concerned with the receipt of payment from customers and the appropriate treatment for payment whether subject to discount or interest, etc. c) Process No.: 4.0 d) Process Description: Input Data Flow(s): Sales confirmation Payment Credit card Approval Output Data Flow(s): Invoice Cash receipts Receivables

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NET AMOUNT DUE a) Description: Data that concerns with the amount owed by the customer to the entity due to compliance of past transactions net of any discounts and balance adjustment b) Alternative name: Net Sales c) Origin: Account cash sales, account receivable d) Destination: Issue invoice e) Data Structure: NET AMOUNT DUE=QUANTITY OF THE INVENTORY+{PRODUCT NAME}+LIST PRICE + {DEDUCTION OF DISCOUNTS TO SENIOR CITIZENS AND OTHER SPECIAL CUSTOMERS} DEDUCTION OF DISCOUNTS TO SENIOR CITIZENS AND OTHER SPECIAL CUSTOMERS=GROSS AMOUNT+RELATED DISCOUNT RELATED DISCOUNT={NUMBERS} GROSS AMOUNT={NUMBERS} PURCHASE NUMBER = {NUMBERS} PRODUCT = PRODUCT NUMBER + [ PRODUCT NAME/ PRODUCT DESCRIPTION ] + QUANTITY ORDERED + PRICE PRODUCT NAME = {LETTERS} PRODUCT DESCRIPTION = {LETTERS} QUANTITY ORDERED = {NUMBERS} PRICE = {NUMBERS} LETTERS = {A-Z} NUMBERS = {0-9} f) Volume and Frequency: Approximately 75 times an hour (over the counter sales) and once a week (wholesale) ORDER INVENTORY a) Process Name: Order Inventory b) Description: Order of Inventory is the process concerned with the receipts of orders from customers and the actual processing of orders, checking, confirmation, and recording. 42

c) Process No.: 1.0 d) Process Description: Input Data Flow(s): Order Request Inventory Status Stock Request Output Data Flow(s): Purchase Confirmation Sales Confirmation Inventory Sold

ORDER REQUEST a) Description: Order requests are products demanded by customers with the willingness and ability for purchase b) Alternative name: Purchase demand c) Origin: Customers d) Destination: Order Inventory e) Data Structure ORDER REQUEST = ORDER NUMBER + ORDER DATE [CUSTOMER NAME /CUSTOMER ACCOUNT] + SHIP ADDRESS + BILL ADDRESS + {PRODUCT} + AMOUNT ORDER NUMBER = {NUMBERS} ORDER DATE = MONTH + DAY + YEAR MONTH = {JANUARY DECEMBER} DAY = {NUMBERS} YEAR = {NUMBERS} CUSTOMER NAME = FAMILY NAME + GIVEN NAME + MIDDLE NAME CUSTOMER ACCOUNT = {NUMBERS} SHIP ADDRESS = ADDRESS ADDRESS = STREET + CITY + [ STATE/PROVINCE ] + (COUNTRY) + ZIPCODE BILL ADDRESS = ADDRESS ADDRESS = STREET + CITY + [ STATE/PROVINCE ] + (COUNTRY) + ZIPCODE

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PRODUCT = PRODUCT NUMBER + [ PRODUCT NAME/ PRODUCT DESCRIPTION ] + QUANTITY ORDERED + PRICE PRODUCT NAME = {LETTERS} PRODUCT DESCRIPTION = {{LETTERS} PRODUCT NUMBER = {NUMBER} QUANTITY ORDERED = {NUMBERS} PRICE = {NUMBERS} LETTERS = {A-Z} NUMBERS = {0-9} ORDERS = {ORDER} f) Volume and Frequency: Approximately 75 times an hour (over the counter sales) and once a week (wholesale) PAYMENT a) Description -Payment is the settlement of a customers obligation to an entity on financial basis b) Alternative name Settlement c) Origin-Customer d) Destination : Manage Sales e) Data structure: PAYMENT=PAYMENT INVOICE NUMBER+AMOUNT+DATE+ PAYMENT METHOD +CUSTOMER NAME+{PRODUCTS}+ APPROVAL OF RECEIVER PAYMENT INVOICE NUMBER={NUMBER} AMOUNT=[CASH|CREDIT CARD] DATE=MONTH+DAY+YEAR MONTH={JANUARY-DECEMBER} DAY={NUMBER} YEAR={NUMBER} PAYMENT METHOD=[ACCONTS RECEIVABLE I CASH|CREDIT CARD] CUSTOMER NAME=GIVEN NAME+MIDDLE NAME+SURNAME GIVEN NAME={LETTERS} MIDDLE NAME={LETTERS} 44

SURNAME={LETTERS} PRODUCT=PRODUCT CODE+PRODUCT NAME+PRODUCT DESCRIPTION+QUANTITY ORDERED+PRICE+VAT PRODUCT CODE={NUMBERS} QUANTITY ORDER={NUMBER} PRICE= {NUMBER} VAT= PERCENTAGE OF ORDERED PRODUCT LETTERS={A-Z} NUMBERS={0-9} PAYMENTS={PAYMENT} f) Volume and Frequency: Approximately 75 times an hour (over the counter sales) and once a week (wholesale) PRODUCE REPORTS a) Process Name: Produce Reports b) Description: Producing of Reports includes the production of financial statements such as Statement of Financial Position, Income statement and Statement of Cash Flows c) Process No.: 5.0 d) Process Description: Input Data Flow(s): Branch Reports Accounting Data Output Data Flow(s): Combined Financial Reports PURCHASE CONFIRMATION a) Description: Data that concerns with the verification of orders initially placed by customers b) Alternative name: Acquisition verification c) Origin: Order Inventory d) Destination: Customers e) Data Structure: PURCHASE CONFIRMATION = PURCHASE NUMBER + PURCHASE DATE + {PRODUCT} + AMOUNT 45

PURCHASE NUMVER = {NUMBERS} PURCHASE DATE = MONTH + DAY + YEAR MONTH = {JANUARY-DECEMBER} DAY = {NUMBERS} YEAR = {NUMBERS} PRODUCT = PRODUCT NUMBER + [ PRODUCT NAME/ PRODUCT DESCRIPTION ] + QUANTITY ORDERED + PRICE PRODUCT NAME = {LETTERS} PRODUCT DESCRIPTION = {LETTERS} QUANTITY ORDERED = {NUMBERS} PRICE = {NUMBERS} LETTERS = {A-Z} NUMBERS = {0-9} f) Volume and Frequency: Approximately 75 times an hour (over the counter sales) and once a week (wholesale) PURCHASE RETURN a) Description: data that pertain to returns to suppliers due to defects and/or expiration. b) Alternative name: returns to suppliers c) Origin: Update Inventory (returns) d) Destination: Suppliers e) Data Structure: RETURNED INVENTORY FROM CUSTOMER AND BRANCH= [SUPPLIER NAME/SUPPLIER ACCOUNT] + {PRODUCT RETURNED} + DATE SUPPLIERS NAME= {LETTERS} SUPPLIERS ACCOUNT= {NUMBERS|LETTERS} PRODUCT RETURNED=PRODUCT PRODUCT= PRODUCT QUANTITY + DESCRIPTION + QUANTITY + PRICE f) Volume and Frequency: once or twice in every 2 weeks

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RECEIVABLES a) Description- Claims held against customers and others for money, goods, or services. b) Alternative name- Bill Outstanding c) Origin- Manage Sales Payment d) Destination- Accounts Receivables e) Data structure : RECEIVABLE=DATE+REFERENCE NUMBER+[COMPANY NAME|CUSTOMER NAME]+COMPANY ADDRESS +AMOUNT+SIGNATURE OF PAYOR DATE=MONTH+DAY+YEAR MONTH={JANUARY-DECEMBER} DAY={NUMBER} YEAR={NUMBER} REFERENCE NUMBER={NUMBER} COMPANY NAME=COMPANY NAME+COMPANY SLOGAN COMPANY ADDRESS=ADDRESS ADDRESS= (P.O. BOX NUMBER) + STREET + CITY +(COUNTRY) + ZIPCODE CUSTOMER NAME=GIVEN NAME+MIDDLE NAME+SURNAME GIVEN NAME={LETTERS} MIDDLE NAME={LETTERS} SURNAME={LETTERS} AMOUNT=ACCOUNT CODE+TOTAL AMOUNT TO BE PAID+(PENDING/DUE AMOUNT)+DUE DATE ACCOUNT CODE={NUMBERS+LETTERS} REFERENCE NUMBER= PURCHASE CODE+EXPIRATION DATE LETTERS={A-Z} NUMBERS={0-9} RECEIVABLES={RECEIVABLE} f) Volume and Frequency : Approximately once a week

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RECORD SALE OF INVENTORY a) Process Name: Record Sale of Inventory b) Description: Recording Sale of Inventory is the recognition of orders as outright sale c) Process No.: 1.3 d) Process Description: Input Data Flow(s): Inventory Reserved for Sale Output Data Flow(s): sales Confirmation Record transaction as VALID SALE Deduct Sales from currently available inventories RETURNED INVENTORY FROM CUSTOMERS AND BRANCH a) Description: Data confirming the return of inventories coming from customers and branch b) Alternative name: Branch and Customer returns c) Origin: Update Inventory (returns) d) Destination: Inventory e) Data Structure: RETURNED INVENTORY FROM CUSTOMERS AND BRANCH= {PRODUCT RETURNED} + [CUSTOMER NAME/ CUSTOMER ACCOUNT/BRANCH NAME] + DATE PRODUCT RETURNED= {PRODUCTS} PRODUCT=PRODUCT CODE + DESRIPTION +QUANTITY + PRICE f) Volume and Frequency: five to six times in every three weeks RETURNED INVENTORY TO SUPPLIERS a) Description: data confirming the return of inventories to suppliers and will in turn lessen the inventory on hand b) Alternative name: Purchase returns c) Origin: Update Inventory d) Destination: Inventory e) Data Structure:

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RETURNED INVENTORY TO SUPPLIERS= [SUPPLIER NAME/ SUPPLIER ACCOUNT] + {PRODUCT RETURNED} + DATE PRODUCT RETURNED={PRODUCTS} PRODUCTS= PRODUCT NAME + PRODUCT CODE + DESCRIPTION + QUANTITY RETURNED + PRICE f) Volume and Frequency: twice a month depending on the amount of expired stocks SALES CONFIRMATION a) Description- Approval of sale for accounting purposes b) Alternative name-Authentication c) Origin- Order Inventory d) Destination-Manage Sales e) Data structure : SALES CONFIRMATION=ORDER NUMBER+SALES DATE+ACCOUNT NAME +AMOUNT+QUANTITY+(PAYMENT METHOD) ORDER NUMBER={NUMBER} SALES DATE=MONTH+DAY+YEAR MONTH={JANUARY-DECEMBER} DAY={NUMBER} YEAR={NUMBER} ACCOUNT NAME=GIVEN NAME+MIDDLE NAME+SURNAME GIVEN NAME={LETTERS} MIDDLE NAME={LETTERS} SURNAME={LETTERS} AMOUNT=ACCOUNT CODE+AMOUNT ACCOUNT CODE={NUMBER} QUANTITY=PURCHASE CODE+PURCHASE DESCRIPTION+(AVAILABILITY OF PRODUCT) PURCHASE CODE={NUMBER+LETTERS} PAYMENT METHOD=[CHECK I ACCONTS RECEIVABLE I CASH|CREDIT CARD] LETTERS={A-Z} 49

NUMBERS={0-9} f) Volume and Frequency : Approximately 75 times an hour (over the counter sales) and TEI a week (wholesale) SALES RETURNS a) Description: these are date concerning returns coming from past sales transactions. These datas purpose is to update the inventory system on the additional inventory obtained from the returns of customers or own branches. b) Alternative name: trade returns c) Origin: Customers d) Destination: Update Inventory e) Data Structure: SALES RETURNS= [CUSTOMER NAME| CUSTOMER ACCOUNT] + {PRODUCTS RETURNED} + DATE DATE=MONTH+DAY+YEAR MONTH={JANUARY-DECEMBER} DAY={NUMBER} YEAR={NUMBER} CUSTOMER NAME={LETTERS} CUSTOMER ACCOUNT={NUMBERS+LETTERS} PRODUCTS RETURNED={PRODUCT} PRODUCT= PRODUCT CODE + DESCRIPTION + QUANTITY RETURNED + PRICE PRODUCT CODE= {NUMBERS+LETTER S} DESCRIPTION={NUMBERS+LETTERS} QUANTITIES RETURNED= {NUMBER } LETTERS={A-Z} NUMBERS={0-9} f) Volume and Frequency: thrice in every 2 weeks STOCK REQUEST a) Description: Stock request is a notification for inventory replenishment sent by the branch to the home office 50

b) Alternative name: Inventory demand c) Origin: Branch d) Destination: Order Inventory e) Data Structure: STOCK REQUEST = STOCK NUMBER + STOCK REQUEST DATE + BRANCH NAME + SHIP ADDRESS + BILL ADDRESS + {PRODUCT} + AMOUNT STOCK NUMBER = {NUMBERS} STOCK REQUEST DATE = MONTH + DAY + YEAR MONTH = {JANUARY-DECEMBER} DAY = {NUMBERS} YEAR = {NUMBERS} BRANCH NAME = COMPANY NAME SHIP ADDRESS = ADDRESS ADDRESS = ADDRESS = STREET + CITY + [ STATE/PROVINCE ] + (COUNTRY) + ZIPCODE BILL ADDRESS = ADDRESS ADDRESS = ADDRESS = STREET + CITY + [ STATE/PROVINCE ] + (COUNTRY) + ZIPCODE PRODUCT = PRODUCT NUMBER + [ PRODUCT NAME/ PRODUCT DESCRIPTION ] + QUANTITY ORDERED + PRICE PRODUCT NUMBER = {NUMBERS} PRODUCT NAME = [LETTERS} PRODUCT DESCRIPTION = {LETTERS} QUANTITY ORDERED = {NUMBERS} PRICE = {NUMBERS} LETTERS = {A-Z} NUMBERS ={0-9} f) Volume and Frequency: Approximately once a week SUPPLIERS a) Description: Suppliers are external entities that provides goods as merchandise b) Alternate name(s): Dealer, Merchant c) Input Data Flow(s): Purchase data; Purchase returns 51

d) Output Data Flow(s): Supply Data SUPPLY DATA a) Description: Supply data are additions to currently held inventories available for sale b) Alternative name: Purchases c) Origin: Suppliers d) Destination: Update Inventory (Stock Replenishment) e) Data Structure SUPPLY DATA = [SUPPLIER NAME/ SUPPLIER ACCOUNT] +{ PRODUCT } + AMOUNT SUPPLIER NAME = FAMILY NAME + GIVEN NAME + MIDDLE INITIAL SUPPLIER ACCOUNT = {NUMBERS} PRODUCT = PRODUCT NUMBER + [ PRODUCT NAME/ PRODUCT DESCRIPTION ] + QUANTITY ORDERED + PRICE PRODUCT NUMBER = {NUMBERS} PRODUCT NAME = {LETTERS} PRODUCT DESCRIPTION ={LETTERS} QUANTITY ORDERED = {NUMBERS} AMOUNT = {NUMBERS} NUMBERS = {0-9} f) Volume and Frequency: Approximately once a week UPDATE INVENTORY a) Process Name: Update Inventory b) Description: Update Inventory is concerned with either addition or reduction of inventory due to purchases, returns and disposal c) Process No.: 2.0 d) Process Description: Input Data Flow(s): Branch Inventory Returns Sales Returns Inventory Status Supply Data Output Data Flow(s): Purchase Returns 52

Returned Inventory from Customers and Branch Returned Inventory to Supplier Purchase Data Additional Inventory Data Inventory Reduction UPDATE SALES a) Process Name: Update Sales b) Description: Update Sales is a process of restating cash sales into its current status, acknowledging changes happened, such as addition to sales c) Process No.: 2.5 d) Process Description: Input Data Flow(s): Payment Output Data Flow(s): Cash Sales Receivable Reduction IF Payment is for offsetting Accounts receivable THEN Deduct payment from outstanding Accounts Receivables Recognize payment as sale VALIDATED ORDER DATA a) Description: Data concerning official orders agreed upon by the entity and the customer b) Alternative name: Verified Request c) Origin: Costumer d) Destination: Confirm Sale of Inventory e) Data Structure: SALES CONFIRMATION=ORDER NUMBER+SALES DATE+ACCOUNT NAME +AMOUNT+QUANTITY+(PAYMENT METHOD) ORDER NUMBER={NUMBER} SALES DATE=MONTH+DAY+YEAR MONTH={JANUARY-DECEMBER} DAY={NUMBER} YEAR={NUMBER}

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ACCOUNT NAME=GIVEN NAME+MIDDLE NAME+SURNAME GIVEN NAME={LETTERS} MIDDLE NAME={LETTERS} SURNAME={LETTERS} AMOUNT=ACCOUNT CODE+AMOUNT ACCOUNT CODE={NUMBER} QUANTITY=PURCHASE CODE+PURCHASE DESCRIPTION+(AVAILABILITY OF PRODUCT) PURCHASE CODE={NUMBER+LETTERS} PAYMENT METHOD=[CHECK I ACCONTS RECEIVABLE I CASH|CREDIT CARD] LETTERS={A-Z} NUMBERS={0-9} f ) Volume and Frequency: Approximately 75 times an hour (over the counter sales) and once a week (wholesale)

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Use Case Name: Confirm Sale Use Case ID: UC1 Description: The customer will sent an order request of products. The manager will confirm the sale of the product. This will be recorded by the accountant. Precondition: The customer can be anyone. He could be an individual or an entity like a hospital, retailer, or other retailers. Trigger: An order is processed into sales transaction. Basic Flow: The customer provides the order and the payment. Result: The confirmation of sale or an invoice will be sent to the customer. If the sale is paid directly, the accountant will issue an official receipt. Name: Confirm Purchase Use Case ID: UC2 Description: The manager will place orders to the suppliers. The suppliers will in turn confirm the purchase. The purchase will be accounted for by the accountant. Precondition: The suppliers are those whom the pharmacy are in contracted with. Trigger: An order is submitted to the supplier. Basic Flow: The manager will place the order to the suppliers and the accountant will provide the payment. Result: The supplier will send the merchandise together with an invoice. Name: Place Order (to suppliers) Use Case ID:UC3 Description: The manager will place order to the suppliers. The supplier will confirm the order. Precondition: The list of supplies needed is already pre-determined before issuing an order to the supplier. Trigger: The order is sent to the supplier. Basic Flow: The order is sent and the accountant of the pharmacy will receive a confirmation of purchase. Result: The orders will be confirmed by the supplier and the merchandise will be sent. 55

Name: Send Payment Use-Case ID: UC4 Source: Requirement Description: After receiving the invoice from the Supplier, the Accountant is going to send money to the supplier as the payment of the products we have purchased. Precondition: The party sending the payment must be a member of the entity. Trigger: A new products were received. Basic flow: The entity is to order products to the supplier and once that the orders are confirmed and invoice is send, the accountant is to send payment to the supplier Result: An increase in inventory of the products and in cash disbursement account

Name: Receive Invoice Use Case I.D.:UC5 Description : The entity will receive a printed record of the products they have

bought and the amount charge as a request for payment Precondition: The entity shall pay for the products theyve bought/ ordered. Trigger: The entity ordered products to the supplier and the supplier will send back a receipt. Basic Flow: The entity will order products to suppliers and the suppliers will send an invoice for the entity to know how much they were going to pay. Result: The entity will know how much theyve ordered and pay it. Name: Account purchase of inventory Use case I.D. : UC6 Description : The entity will receive a printed record of the products they have bought and the amount charge as a request for payment Precondition: The entity shall pay for the products theyve bought/ ordered. Trigger: The entity ordered products to the supplier and the supplier will send back a receipt. Basic flow: The entity will order products to suppliers and the suppliers will send an invoice for the entity to know how much they were going to pay. 56

Result: The entity will know how much theyve ordered and pay it. Name: Place Stock Request Use Case ID:UC7 Description: The branch will place a stock order. The manager will now process the order. The manager will confirm the sale and will be recorded by the accountant. Precondition: The branch has provided list of product to be sent. Trigger: A request from the branch will be sent to the manager. Basic Flow: The branch will send report and stock request to the manager. The manager will process the report and the request. Result: The stock order will be recognized and will be performed. Name: Process Order Use Case ID:UC8 Description: An order is received from a customer. This order will be processed by the manager. Precondition: Orders are inclusive from all customers. Trigger: An order is received from a customer. Basic Flow: When an order is received, the manager will place the order into the system. Result: The orders will be confirmed and consequently paid to the suppliers. Name: Place Order ( fr customer) Use Case ID:UC9 Description: The customer will send an order request to the manager. The manager will process the order and then the manager will now confirm the sale and will be recorded by the accountant. Precondition: The customer can be anyone. He could be an individual or an entity like a hospital, retailer, or other retailers. Trigger: An order request is received from suppliers. Basic Flow: The manager will confirm the request of the customer. Result: The order will be placed into the system and later the ordered merchandise will be sent to the customers. 57

Name: Account Sale of Inventory Use Case ID:UC10 Description: The customer will pay for the merchandise bought. The accountant will take into account the payment made by the customer. Precondition: The customer can pay on cash basis, on credit, or through the use of credit card. Trigger: The customer places the payment into the hands of the accountant. Basic Flow: The accountant will verify the payment of the customer. Result: The accountant will send invoice to the customer. Name : Send Invoice Use Case I.D.: UC11 Description : The system identify the customer goods that was purchase to determine how much was his/her outstanding balance. Precondition : The customer shall pay what he/she ordered. Trigger: The system identify the order and it send an invoice to customer for furthur payment. Basic Flow : Customer allot the corresponding information needed in invoice together with the payment of the ordered product. After that the customer may pay in his/her choice if cash basis, receivable or in credit card term. It is issued any time when sales takes place. Result : Customer makes payment and the sale is recognized. Name: Receive payment through credit card Use Case I.D.:UC12 Description: It describes the payment of the client through credit card. Then the system will identify if the credit card is authorize or not by the bank. If it is authorize by the bank, the system will give a confirmation but if it is not authorize the system will reject it. Precondition : The client shall be in good faith or active payor in his/her presciptive bank as a cardholder.

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Trigger: Client shall identify the corresponding information needed in order for the system to monitor its inventory. After it the system sends authorization message to the bank. The system will now incurred a sale. Basic Flow : Client assign the corresponding information required by the system such as credit card number and the card expiration date. The system will recognize the payment. Result: A slip will be given to the customer as a proof of billing. Name: Receive cash payment Use Case I.D.: UC13 Description: It describes the payment of the customer through cash basis over the counter. The system will give a confirmation if the sale is verified or not. Precondition: The customer paid the product they bought. Trigger: The customer shall give a related confirmation before the salle will occur. Basic Flow: The customer fill up an order form or give a prescription letter from the physician before the system will distinguish the product name and price. After accepting the order thats the only time the system will give a confirmation of a sale. Result: Sale is realized by the entity. Name: Receive payment on account Use Case I.D.: UC14 Description: It describes the payment of the purchaser through account basis over the counter or from telephone call (branch,hospital) orders. Precondition: The purchaser shall be an entrust client of the entity. Trigger: The purchaser will pay accounts. Basic Flow: The purchaser make certain pledge to the entity before the system will accept the sale. The order will be remove from the system when certain confirmation materialize. Result: The sale will be knowledgeable when the purchaser and the entity agreed when will be the payment.

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USE CASE DIAGRAM

INVENTORY SYSTEM
SEND PAYMENT

RECEIVE INVOICE

ACCOUNT PURCHASE OF INVENTORY

CONFIRM PURCHASE

ACCOUNTANT

SUPPLIER
PLACE ORDER

CONFIRM SALE SEND INVOICE

PROCESS ORDER
RECEIVE PAYMENT IN CREDIT CARD RECEIVE PAYMENT THROUGH CASH RECEIVE PAYMENT IN A/R

BANK

MANAGER
ACCOUNT SALE OF INVENTORY

BRANCH REPORT

ORDER REQUEST

CUSTOMER

PLACE STOCK ORDER

BRANCH
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PROTOTYPE

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CHAPTER IV

CONCLUSION The analysis shows that the benefits exceed the cost and this gives rise to the conclusion that the system should be employed to the pharmacy. The main benefit of the system to the business is reflected on its operations. The Inventory System will bring an easier way of recording, measuring and monitoring the changes in the outstanding inventories. Instead of physically counting and listing all the products, youll know their balances with just some clicks away. Also, since the system saves every single transaction created concerning the inventories, it would be possible to know past transactions because of the ability of the system to retrieve past information. This will in turn bring good response from every side of the business- the customers and the suppliers. It is also important to take in consideration its sustainability in the long run. On the succeeding years of the operation of the business, the inflow of profit to the company will be greater considering that the costs incurred in applying the system will be offset on the first year of operation. RECOMMENDATION As mentioned, the only constant in this world is change, and information technology development is the one which are most affected by these changes. In the next five years, the emerging information system and technology that may affect the application of information system in the business may lost its tract. The increasing competition among businesses like where MedCheck is designated is deemed to develop new technology and tools to help them to stay competitive or even survive in the market and to serve the changing demand of their customers. Considering a drastic revolution that the society must expect, future changes are held to be undefined, thus, the business must be prepared to adapt and to resolve problems that may arise in the forthcoming. At present, it is highly recommended that the business must actively identify the different alternatives that can be applied to their operations so as to become 67

successful, taking into consideration adapting Information systems. As customers are vital to the business, certain strategies must be applied in order to improve existing customer relations. Information technology as a strategy for business improvement involves a number of processes, of which technology plays a significant role. In order to apply this successfully and effectively, analytical techniques must be utilized in order to assess the various features related to information technology that can be used in the petroleum industries. Through these techniques, business operators will be able to identify problem areas in advance and develop options that will resolve them.

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