University of San Carlos Downtown

Campus
P. del Rosario St. Cebu City, Philippines 6000

A Company study of

AD COLD
LOGISTICS
In partial fulfillment of
Accounting Information System
(AC 508)

Submitted by:
Agravante, Bill Gates
Boncales, Julius Christian
Fernandez, Jasmine Marie
Mojado, Jan Kyle
Olandag, Vanessa Mae
Pasaje, Geschille Ann Esther
Tidalgo, Mike Joshua
Toral, June Meryllar Lorenz
Yamomo, Trisha Leanne
 March 2017

Table of Contents
 AD COLD LOGISTICS
CABANCALAN, CEBU CITY
Tel: 4011682
COMPANY PROFILE
General Business Activities: AD COLD LOGISTICS has been established to provide
service to move cold products around the Cebu City and provinces around it. For
the meantime, we are currently serving one company but eyeing to develop
connections with more companies.
We started AD Cold Logistics/ Winter Wyvern Logistics because we felt the need
of other entities here in Cebu that they lack transportation. That was the start of
our business we immediately attended to their need.
We decided to make logistics our business because both of my parents are still
employed so they needed a business where hands-on was not really a need and
they could visit the business rather than everyday at least once a week. And we
thought that during the time when we started logistics was the much needed
service by the companies and so we thought we can't let this chance just go
away.
How did we start? Needless to say, like others it was a rough start. Purchasing
the vehicles was already a pain, so we had to loan. Next we had to penetrate the
market, we couldn't compete with the much trusted and have started earlier
logistics companies. Therefore, we had to adjust our price, diving down to the
lowest price we can offer and have a really minimal profit. We had to do this or
else we wouldn't be able to reach what we have now.
Range of Places

Amount (in pesos) Destination

6,000 Toledo, Balamban
5,500 Danao, Bogo, Bantayan, MInglanilla,
Carcar, Dalaguete, Barili, Moalboal
3,000 Opon, Ayala, Sm, Colon, Labangon,
Robinsons, Jy, Maguikay, Talamban

Company Strategy
Purpose: To be a leader in logistics industry by providing affordable
prices
Vision: To provide quality services that exceeds the expectations of
our esteemed customers.
Mission statement: To build long term relationships with our
customers and clients and provide exceptional customer services by
pursuing business through innovation and advanced technology.
Core values: We believe in treating our customers with respect and
faith. We grow through creativity, invention and innovation. We
integrate honesty, integrity and business ethics into all aspects of our
business functioning
Goals: Regional expansion in the field of property management and
develop a strong base of key customers.

Increase the assets and investments of the company to support

the development of services.
To build good reputation in the field of real estate and property
management and become a key player in the industry.
Organizational Chart

CEO/Owner

Chief
Operating
Officer

Receiving
Secretary Drivers
Staff
Narrative Report
AD-COLD Logistics organizational chart shows that they are headed by the
CEO. The CEO is also the owner of the company. The Chief Operating Officer
headed the second-level of the hierarchy. The officer plans, directs, and oversees
a company's operational policies, rules, initiatives, and goals. He executes the
long-term and short-term plans and directives of the organization by
implementing judgment, vision, management, and leadership. The Chief
Operating Officer is followed by the secretary, who documents the transactions
and appointments of the company. The Receiving Staff also has the same
hierarchy as the secretary and is responsible for confirming the completion of the
transactions. Lastly, the drivers are the ones responsible for delivering the
products and the one who makes sure that the necessary documents are signed
upon receiving the delivery.
Recommendation
Our recommended organizational chart involves the CEO/Owner as the head
of the entire company. It is followed by the Administrator whose primary duty is
to ensure that the organization operates with efficiency. The Administrator also
serves as the representative of the CEO and the link of the employees to the
CEO. The Administrator is then assisted by the Secretary. The Secretary is
responsible for supporting the organization in a variety of ways such as
bookkeeping, communications, scheduling, data entry, and receives anything
that goes to the Administrator for the CEO. The next level of the hierarchy is
composed of three positions. First, The Chief Operating Officer plans, directs, and
oversees a company's operational policies, rules, initiatives, and goals. Just as
the previous descriptions states, he helps execute long-term and short-term
plans and directives of the organization by implementing judgment, vision,
management, and leadership.
The COO has people under him, namely: Secretary, Receiving Staff,
Drivers and Inventory Controller. The Secretary helps the Chief Operating Officer
with his schedules and the paper works that needs to be done. The Receiving
Staff confirms the completion of the transactions that has been done. The drivers
are responsible for the delivery. The Inventory Controller track various aspects of
inventory to make sure that the deliveries are on schedule and are all properly
deployed.
Second, The Chief Finance Officer is accountable for the administrative, financial,
and risk management operations of the company. He includes the development
of a financial and operational strategy, the metrics tied to that strategy, and the
ongoing development and monitoring of control systems designed to preserve
company assets and report accurate financial results. The people under the Chief
Finance Officer are as follows: Accountant and Cashier. An accountant performs
financial functions related to the collection, accuracy, recording, analysis and
presentation of a business, organization or company's financial operations while
the cashiers responsibility is to receive and disburse money and process debit
card, or both, and credit card transactions.
Lastly, The Human Resources Manager originates and leads Human Resources
practices and objectives that will provide an employee-oriented and high-
performance culture that emphasizes empowerment, quality, productivity, and
standards; goal attainment, and the recruitment and ongoing development of a
superior workforce. The Human Resources Manager is responsible for the
development of processes and metrics that support the achievement of the
organization's business goals. The Human Resources Manager coordinates the
implementation of people-related services, policies, and programs through
Human Resources staff; reports to the CEO; and assists and advises company
managers about Human Resources issues. This recommended organizational
structure is a clearer depiction of segregation of duties. This will in turn lead to a
better internal control environment within the entity.
RECOMMENDED ORGANIZATIONAL CHART

CEO/Owner

ADMIN Secretary

Chief Chief Finance HR Manager

Operating Officer
Training and
Secretary Accountant Development

Receiving Cashier Recruitment

Staf
Inventory Legal
Controller
Driver
 Service Revenue

REVENUE CYCLE
Customer FLOWCHART
Customer
(Goldilocks)

Narrative

Information System
SAR

SAR Billing
SAR is given to the*
accounting office

Customer
(Goldilocks)

Cash Receipts

Cash
SAR
Sales Order Processing
Sales order processing is the generation of an internal document within a
business enterprise that authorizes the consummation of a sales transaction.
Sales order processing occurs after receipt of a sales order from a customer. In
the case of AD-COLD Logistics, the branch of their customer will issue an order
that indicates the goods and the number of goods to be delivered to them. The
process is still quite unclear since it is not indicated.
Companys Accounting System
The entity uses a computer based accounting system. The said system was
internally generated and is being used for all transactions likewise with recording
and all other transactions the entity may have.
Who are eligible to manipulate the system?
The owners are hands-on on their business needless to say; they are the only
ones who can manipulate the system.

Contrac
t

Providi
CHEQU
E ng of
Service

Summa
Submit ry of
tion of SAR
Billing ( 15
days)

Cash Receipts
A cash receipt a written document that is produced by a company each time it
receives money for goods or services. The customer and the company both keep
a copy of this document. In the case of AD-Cold Logistics, they use the SAR as
reference.
Recommendation
We would like to add a computer system that would store the transaction done
by the customer. So that when there will be some accidents that would result
into losing of the data stored. In this way we can make sure that all of the
transactions made will be safe and be secured.
 Submitting
EXPENDITURE
of CYCLE

Rejected Notifying Package Acknowled

of accepted ge receipt
packages of check
Package

Goldilocks
receives
Approving acknowled
of gment
payment
to AD

Submitting
of
Check document
issued s or SAR

Narrative
AD Logistics submits package to Goldilocks, when Goldilocks received the
package, they immediately notify AD Logistics of the package received. After
notifying, they check the package received and then decide whether the package
is acceptable or not.
If no, they will return the package to AD Logistics and the first process begins
again.
If yes, it means they accept the quality of the package and so the cycle begins.
After accepting the quality of the package, Goldilocks will approve the payment
to AD Logistics by issuing check.
When received, AD Logistics immediately acknowledges the receipt they
received from Goldilocks by giving them an acknowledgement.
After this process, thats the time where Goldilocks submits complete documents
or SAR to accounting for consolidation and accounting records.
Recommendation
Businesses need materials and supplies to produce goods and services the
reason of the existence of the expenditure cycle. AD Logistics' expenditure cycle
follows its pattern on how cash flows out from the company. We recommend they
include the type of cash outflow like for example payments of debt because as
we all know, expenses are not the only source of cash outflow in a company.
They should also have a list of their daily need like maintenance to estimate the
budget.
Payroll

P2 Distribute salary
P1 Employee Owner
P3

Other P3
Employees
Records time Read into and Payroll
calculates payroll Register

Withdraw
Record Withdrawal
Slip

Remits cash
Payroll
Persons Involved Procedures
Employee 1. Monitors/ Records present,
absences and tardiness
2.Gives records to the owner
Owner 1. receives records
2. Read and calculates the payroll to
register
3. Withdraws cash
4. Receives Cash
5. Distribute salary to employees
Other Employees 1. Receives cash
 Fixed Assets
Acquisition

Employee Owner Purchase Asset

OR

P-1

Requests for Purchase P-2

of asset
Purchase
Yes Withdraws cash from Withdrawal
bank Slip

No

Owner will
Informs employee inform
employee that
the request
has been
denied
MAINTENANCE DISPOSAL
Owner

Employee

Checks for damages on P-1

the assets Verify and assess
P-2
damage
P-3

Damaged
P-4
Yes Report damages Replace
Yes
Disposal of Asset
P-1

P-2

No

No
Clean the asset
FIXED ASSETS
Persons Involved Procedures
Employees 1. Request for new asset
2. Inspects assets for damages
3. Reports damages to assets
4. Clean Assets

Owner 1. Decides if he should purchase the

asset or not
2. Purchases the asset
3. Asses if damaged asset should be
disposed of
4. Orders for the disposal of assets

Repair and Maintenance

Quarterly preventive maintenance for both mechanical and refrigeration
On the road problems will be handled by the shop we have a contract with
Gasoline- Full tank every day before returning to the garage
Garage: Either immediate wash or twice a week.
1000 per car every month
Financial Reporting Cycle
Persons Involved Procedures
Owner 1. Keeps the source documents
2. Prepares and fills up BIR forms
AD Cold Logistics does not journalize or make any entry with their transactions.
The owner keeps the source document SAR, and the one who prepares and fills
up BIR forms.

Recommendation
Follow proper accounting procedures.
Set up and maintain proper financial statements.
Hire an experienced accountant.
Bibliography
http://hiring.monster.co.uk/hr/hr-best-practices/recruiting-hiring-advice/job-
descriptions/chief-operating-officer-job-description.aspx
https://en.wikipedia.org/wiki/Organizational_structure

http://www.irishjobs.ie/careeradvice/administrator-job-description/

http://www.investopedia.com/ask/answers/04/042204.asp

https://www.thebalance.com/sample-human-resources-manager-job-
description-1919125
Source Documents:
Service Acknowledgement Receipt (SAR)