Benefits & System Capabilities Of The Direct Sales & Accounting System

System benefits

Currently Especially for You Jewelers has a partly manual and partly automated financial system that is limited in terms of analyzing the effectiveness of specials, tracking accounts receivable and storing customer information. In general, developing integrated information systems creates three types of benefits for organizations – operational, tactical and strategic (Doom, 2010).

The implementation of a new direct sales and accounting system will create the following advantages for Especially for You Jewelers. The company’s daily business operations will be more streamlined, and management will be able to track loss and profit data with high accuracy and will have access to details of profit and loss. The second benefit is also operational – since all sales and payments will be recorded, the company will be able to analyze receivables and optimize them (so this feature also will improve tactical and strategic decisions). Thirdly, the company will have a customer database and will be able to collect information about its customers. Basing on this information, Especially for You Jewelers can make unique offers to its customers and accumulate business intelligence (Cassidy, 2005).

The fourth benefit relates to the operational and tactical levels. Since the operations that are currently handled manually will be automated, Especially for You Jewelers will be able to improve performance and accuracy of financial operations, and, consequently, customer satisfaction, since all operations will be performed faster and more securely. Finally, the fifth benefit will be advanced customer service – the customers will be able to view their sales, payments, special offers and receivables, and such transparence will create a competitive advantage for Especially for You Jewelers compared to other small jewelry companies that do not offer automated customer service.

System capabilities

In order to create the benefits described in the previous section, direct sales and accounting system should have the following system capabilities:

  • store the information about the customer – personal data, payment type and method, additional information;
  • store detailed sales information – sale date, terms of payment, items and their costs (with links to the inventory system), the involvement of specials;
  • provide the information about specials – terms, timeframe, customers or types of customers involved;
  • show profit/loss reports for the selected time frame and for the selected products;
  • show information about accounts receivable, aged accounts and customer credit balance;
  • provide reports for analyzing profitability of specials;
  • offer detailed account reports for customers both for the company and for the customer.

Possible scenarios for the direct sales and accounting system

There are many scenarios for using the new direct sales and accounting system. Three possible scenarios are: Record new sale, View profit and loss report, Issue notice letters to aged accounts. Record new sale scenario is based on the following actions: a customer contacts a sales manager and places an order; the sales manager verifies customer information, creates a new order, adds order items, agrees on payment terms and finalizes the order. Activity diagram for this scenario is shown on Fig. 1 and use case is described in Table 1.

View profit and loss report is described as follows: Especially for You Jewelers executive or sales manager runs the profit and loss report, selects the time frame, selects a product or a particular sale if necessary, and views the profit/loss information for the selected items. Activity diagram for this scenario is shown on Fig. 2 and use case is described in Table 2. Issue notice letters to aged accounts scenario refers to the following set of actions: sales manager opens the receivables report, clicks “issue notice letters”, edits the letter text if necessary, enters the number of days for marking accounts as aged and confirms sending the letters. Activity diagram for this scenario is shown on Fig. 3, and use case is described in Table 3.

Activity diagrams and use case descriptions for the scenarios

Record new sale

Figure 1. Activity diagram for Record new sale scenario

 

Use case name Create new sale
Scenario Record new sale
Triggering event Customer contacts sales department to make a purchase
Brief description When a customer contacts the company to make a purchase, the sales manager verifies customer information, creates a new order, agrees on payment terms, adds order items and finalizes the order
Actors Customer, Sales Manager
Related use cases Get details of special agreement; check product availability; verify customer information; create new customer record
Stakeholders Sales department (recording sale, adding products, finishing the sale), marketing department (offering specials), financial department (tracking receivables), executives (analyzing profit/loss data, improving receivables).
Preconditions Customer record must be present in the database; product records must be present in the database; the requested number of products should be available in the inventory
Post-conditions Order record should be created and linked to customer record; order product records should be added; payment terms should be added; receivables record should be created; the number of products in the inventory should be updated.
Flow of activities Actor:

1. The customer contacts the company

2. Sales manager asks for customer information and enters it

3. Sales manager creates a new order

4. Sales manager discusses order details and payment terms with the client, and enters order details

5. Sales manager enters the products requested by the client

 

 

 

6. Sales manager finishes the order

7. Sales manager informs the customers about the total sum and finalizes the order

 

System:

 

 

2.1. Verify customer information

 

3.1. Create a new order

 

4.1. Save order and payment details

 

 

5.1. Verify the existence of the product requested by the client, verify that there are enough items in the inventory, add the product to the order

6.1. Calculate final payment, update receivables and save order

7.1. Finalize order

Exception conditions If the customer information is incorrect, sales manager should receive more accurate information from the customer. If customer record is not present in the system, the sales manager should pass to the use case Create a new customer record. If the required product record is not in the database, the sales manager should place a request to order such product in the future and explain the situation to the customer. If the product is not present in the inventory, the sales manager should ask the customer whether to remove this item from order or choose a back-order.

Table 1. Use case – Create new sale

View profit and loss report

Figure 2. Activity diagram for View profit and loss report scenario

Use case name Show profit/loss report
Scenario View profit and loss report
Triggering event Executive or sales manager requests a profit/loss report
Brief description Especially for You Jewelers executive or sales manager runs the profit and loss report, selects the time frame, selects a product or a particular sale if necessary, and views the profit/loss information for the selected items.
Actors Executive or Sales manager
Related use cases Show notification regarding invalid credentials; show error notification for profit/loss report parameters
Stakeholders Executives, financial department, sales managers (analyzing profit/loss)
Preconditions There were sales in the chosen time frame; the credentials entered by the actor are valid; report parameters are valid
Post-conditions Report parameters, user information and report formation date/time are added to logs
Flow of activities Actor:

1. Executive or sales manager (the actor) runs the profit/loss report and enters own credentials

2. The actor enters time frame, sale or product (optional)

System:

1.1. Show report parameters page

 

 

2.1. Verify if report parameters are correct

2.2. Select all matching sales records, determine profit/loss per product/sale/order as specified

2.3. Show the report

Exception conditions If there were no sales in the chosen timeframe, the report will show the notification about this. If the credentials entered by the actor are not valid, the system will show error notification page and prompt to re-enter credentials. If the report parameters are not valid, the system will show a notification and highlight incorrectly entered parameters on the report parameter page.

Table 2. Use case – Show profit/loss report

 

Issue notice letters to aged accounts

Figure 3. Activity diagram for Issue notice letters to aged accounts scenario

Use case name Send notice letters
Scenario Issue notice letters to aged accounts
Triggering event Sales manager runs receivables report and launches the Notice Letters functionality
Brief description Sales manager opens the receivables report, clicks “issue notice letters”, enters the number of days for marking accounts as aged, edits the letter text if necessary, and confirms sending the letters.
Actors Sales manager
Related use cases Show notification regarding invalid credentials, change notice letter text, retrieve customer information, send email
Stakeholders Sales department (notify clients to make their payments on time), financial department and executives (improve the dynamics of receivables and handle bad debts)
Preconditions The credentials entered by the sales manager are valid; there are aged accounts with payment delayed by more than the given number of days
Post-conditions Notice messages are sent to clients; sales records are updated with information about notice, notice date and link to text; transaction details are added to logs.
Flow of activities Actor:

1. Sales manager runs the receivables report and enters credentials

2. Enter the minimal number of days for sending notice

 

3. Change notice text, if necessary

 

4. Send notice letters

 

System:

1.1. Verify the credentials

1.2. Show report parameters page

 

2.1. Select unpaid sales records with duration equal or greater than the given number of days

3.1. Show current notice letter text

3.2. Update notice letter text

4.1. Select all customer accounts associated with the previous query and extract their contact details

4.2. Create email with notice letter text, add customer-specific information, send email

4.3. Update receivables records

4.4. Show notification about successful sending of notices

Exception conditions If the credentials entered by the sales manager are not valid, the system will show error notification page and prompt to re-enter credentials. If there were no aged receivables within the indicated timeframe, the report will show the notification about this.

Table 3. Use case – Send notice letters

System vision document

Introduction

Currently Especially for You Jewelers does not have an integral sales and accounting system, as there is a combination of manual and automated efforts. There are numerous issues associated with the existing system, such as inability to track receivables, lack of information for analyzing the effectiveness of specials, etc. Thus, Especially for You Jewelers needs a new automated direct sales and accounting system that will improve the company’s financial performance and make the organization more competitive.

Business needs / requirements

The requirements for the direct sales and accounting system are the following: the system should record every sale and include cost data from the inventory system. There should be a profit/loss report and receivables report. Customer records should be stored in the system along with purchase information so that the company could study customer preferences and make special offers. The system should track credit balances and aged accounts for customers, and there should be a functionality to show credit history reports and to show special notice letters.

Product / solution overview

The system would keep customer records, sales and order details records, specials records, receivables and payment records. System functionality will allow connecting with the inventory system to retrieve costs and remaining inventory items. The system will provide functionality for adding and updating customer records, sales and payments. The solution will have a number of reports such as profit/loss report, receivables report with notice messaging functionality, credit history report and customer-focused report (for customer view).

Scope and limitations

The system is flexible and additional reports might be added upon request. However, the system is intended for small/medium business use, and if the company grows further, there might be a need to replace different systems with an integral ERP solution.

Other needs

There will be a need to interact with the inventory system and to create an API for exchanging data between the inventory system and the direct sales and accounting system.

 

References

Beynon-Davies, P. (2013). Business Information Systems. Palgrave Macmillan.

Cassidy, A. (2005). A Practical Guide to Information Systems Strategic Planning. CRC Press.

Doom, C. (2010). An Introduction to Business Information Management. Asp / Vubpress / Upa.

Satzinger, J., Jackson, R. & Burd, S.D. (2011). Systems Analysis and Design in a Changing World. Cengage Learning.

The terms offer and acceptance. (2016, May 17). Retrieved from

[Accessed: November 26, 2021]

"The terms offer and acceptance." freeessays.club, 17 May 2016.

[Accessed: November 26, 2021]

freeessays.club (2016) The terms offer and acceptance [Online].
Available at:

[Accessed: November 26, 2021]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: November 26, 2021]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: November 26, 2021]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: November 26, 2021]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: November 26, 2021]
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