Cycle Ledger and Reporting

CYCLE LEDGER AND REPORTING
Transaction processing systems in the enterprise can be done either manually or computeritation.Two processing system will affect the input, process, output, and control of data management.

1. Transaction processing systems manually
Transactions initiated manually from the original transaction will be recorded in special journals and a general journal according to the type.
2. The computerized transaction processing systems
Computerized transaction processing systems have essentially the same process with transaction processing system manually.

Some of the advantages of computerized transaction processing compared with manually processing transactions, among others:

• Transaction data can be entered through electronic devices and stored in Magnetic media of the documents stored in hardcopy.

•  Transaction data can be verified by program edit checks without having to involve a human to detect the presence of faults.
•  The addition of data can be done easily and the transaction can be identified quickly.

• Transactions can be posted quickly into the general ledger.

• Transaction processing and the manufacture of a trial balance can be done quickly.

• Financial statements and other reports can be made at any time without having to wait until the end of the period.

•  Can display the journal and ledger as a description of the transaction.

• Reports can be prepared quickly and easily which has been stored in the computer.

• Can be created quickly and analytical reports to the manager of the data that has been prepared in the computer.

SYSTEM ENTERPRISE RESOURCE PLANNING (ERP)

Weaknesses of computerized transaction processing system which traditionally is still not integrated application programs used in the system.
So that financial and non-financial information that is generated for the planning and operation  less control benefit. For cope better use of ERP systems.

WEB-BASED SYSTEM

Word web widw a communication network of information. For this system the company needed to be able to use it should be available the application program.
The main imput from cycle ledger and financial statements derived from the output of all other cycles.

PURPOSE GENERAL LEDGER SYSTEM

Describe the general ledger processing Financial system . Goal of general ledger system including:
a. To record accounting transactions appropriately and accurately.
b. To post in the appropriate accounts.
c. To maintain a balance in the number of debit and credit side.
d. Accommodate the needs of making adjusting entries.
e. To provide appropriate financial reports.

CHART OF ACCOUNTS (CHART OF ACCOUNT)

Chart of account is an account in a company that includes the assets, equity, income and expense-cost account .Composition code is in the chart of accout is designed according to the needs of internal and external information.


CLASSIFICATION IN CHART OF ACCOUNT

Classification of accounts should be reflation corporate activity.
Manufacturing companies need inventory accounts in a manufacturing requires three accounts (inventories of raw materials, goods in process and finished goods). Services company is more focused on transaction accounts design services ..

CODING LIST ACCOUNT.

Type of chart of accounts coding there are 2 of them:
1) Block the account codes.
In the design by using block codes sequentially accounts categorized into account classification by forming blocks, for example current asset. Benefit that if any new accounts can be inserted without changing the existing account code.
2) Group Account Codes.
In this design has a specific meaning, for example, account code 112 can be interpreted to present the first digit major category accounts (current assets), digit 2 represents the intermediate classification (cash), and classification of digits to represent the minor 3 accounts (cash in hand).

Account Receivable

Receivables represent receivables from the company to a third party arising from a transaction on credit. Basically receivables can be classified into 3 types, namely:
1. Company's accounts receivable is billed to the customer as a result of the sale of goods or services on credit, in which case the bill is not accompanied by a formal letter of agreement, but because of the element of trust and company policy in which the sales have set the terms of sale as 2/10, n/30. This means that receivables arising expected to be received within a maximum period of 30 days from the date of the transaction. If the customer pays in less than 10 days after the date of the transaction will be given pieces / discount of 2% of the sale price. Accounts receivable time periods less than one year that are reported as current assets.
2. Non-trade receivables consist of a variety of bills that are not included in accounts receivable and notes receivable. For example, accounts receivable to the employees, company directors, and the receivables to the company branches.
3. Notes receivable are receivables more formal than accounts receivable because in a written agreement requiring the debtor to the creditor to pay a sum of money mentioned in the appointment letter at a specific time in the future. Term notes receivable are generally more than 60 days, if the term note receivable of less than one year are reported in the balance sheet as current assets while notes receivable maturity of more than one year are treated as long-term receivables.

Sales (Placement) shares issued by the corporation

Sales (Placement) shares issued by the corporation will be able to obtain economic benefits or other benefits for companies that made ??with cash or other corporate assets owned by companies other than cash, the sale of the shares can be sold to other corporation at a price of nominal or above nominal value , so if sales showed above the nominal value of the company will make a profit (premium), and if the loss would gain loss (discount).
On this occasion what if the registration of the sale of shares, to clarify again, I will give an example in order to understand more clearly, illustrative examples:
A company established in 2009 with capital of the company amounted to $ 1,500,000 which consists of: 1000 shares with a nominal @ $ 1000 per share = $ 1,000,000 with a 10% preferred stock, and the company also has 1000 ordinary shares @ par $ 500 per share to = $ 500,000. and the transaction as follows:
1. The company sold 200 preferred shares at a price of $ 1,000 per share and the company also sold 200 shares of common stock at a price of $ 500 per share the journal entries to be recorded is the cash will be debited for $ 300,000 while the preferred stock and common stock credited to their respective recorded of $ 200,000 and $ 100,000.
2. The company sold 200 preferred shares at a price of $ 1000 exchange rate 110 and 200 shares of common stock at a price of $ 500 per share, then the journal is recorded into cash will be debited for $ 320,000 (110/100 x 200 x nominal $ 1,000 = $ 220,000 then added with 200 shares x $ 500 = $ 100 000 and a total of $ 320,000), while the preferred stock will be credited for $ 200,000, the premium on the stock of $ 20,000 and common stock for $ 100,000.
3. The Company sold 100 shares of preferred stock at a price of $ 1000 exchange rate 90 (exchange rate below 100%), the journal recorded is the cash and discount on stock will be record in debited for $ 90,000 and $ 10,000 (9/100 x 100 x nominal $ 1,000 = $ 90,000 ) while common shares that will be credited is $ 100,000.
4. The Company exchanged 100 shares of preferred stock at a price of $ 1000 nominal with the cost of land for $ 110,000, then to record the journal is Land will be debited for $ 110,000 while the preferred stock and premium on stock will be credited for $ 100,000 and $ 10,000.

Shares issued will usually be sold to investors, from the example above would indicate the recording cash increased by the sale of shares by the company and will also affect the capital increase recorded on the capital account of the sale of shares credited.

Recording the sale of shares (rate above 100%) will provide income, and profits will be recorded in the premium on the stock, while if the sale of shares (rate below 100%), the company will suffer losses and will be a discount on the stock. For premium on the stock and the discount on stock will be reported in the balance sheet group shareholders equity under share capital

Sale of shares can also be done with the first book to publishers with certain advances. Sale of shares in this way will be debited on account of cash and stock subscriptions receivable will be credited while the stock was subscribed for by the par value, of course, in this way the company will also be able to experience profits and losses.

GAAP: Generally Accepted Accounting Principles

Basically accounting principles were made to implement all the guidelines and act in accordance with the rules, then for it along with the principle of technological advances must be made in accordance with the rules. Financial accounting is based on the guidelines that have been tested so as to generally accepted accounting science is the science of the principles that are in accounting is not an exact science. Accounting principles to be formulated by a competent body.
Here will be given some explanation of the principles of accounting
1. Business entity concept, this concept is an entity separate from each other, that there is a clear dividing line. for example, the finance department should not be mixed with other parts.
2. Going Concern, this concept assumes an economic entity will continue its business and will not be dissolved, unless there is evidence to the contrary.
3. Using the Recording Monetary unit: all transactions that occur will be revealed in the record in the form of monetary unit at the time of the transaction. Monetary unit used is the currency of the country in which they stand. Example: Australian Dollar from the Australian monetary unit, and so on.
4. Objectivity principle, in this case arbitrarily created data should be trusted as a report that presents the right information and useful.
5. Time Period, the restrictions on time to be able to assess and report on the results of the business carried on. This is because the company is considered to continue to live in the future, so it is not possible to know if the profits or losses of the business we have to wait for the company closed first.
6. Historical Cost This principle sets the value to be reported in the financial statements. There are several ways that can be used in reporting the value in the financial statements include: Book Value, Present Value, Replacement Value, Market Value.
7. Consistency, according to this principle, the company is required to implement procedures and accounting methods of the same (consistent) from one period to the next.
8. Full Disclousure, in presenting the data or financial information of a company should be complete and there should not be concealed.
9. Material (Materiality): basically compiled based on basic accounting theory applied to the transactions that occur in a certain way. However, in practice not all transactions are treated in accordance with the theory.
10. Conservative (Konservatism): in principle, the financial statements are prepared in such a way with a lowered assessment. This is due to the cautious attitude of the management is reflected in the financial statements to anticipate the circumstances at the time were not obtained profit or loss.
11. Accrual Basic: to achieve its objectives, the financial statements prepared on the accrual basis. Thus, transactions and other events are recognized when they occur, not when cash or cash equivalents received or paid. Then, the transactions recorded in the accounting records and reported in the financial statements for the same period.