Accounting Information System is the collection, storage, and processing of financial and accounting data that is used by decision

makers. It is generally a computer-based method for tracking accounting activity in conjunction with information technology resources. The resulting statistical reports can be used either internally or externally by management, other interested parties including investors, creditors and tax authorities. An AIS is an approach responsible for providing timely and accurate reports.

EXECUTIVE SUMMARY
Lotus Garden Asian Fine Dining and Suites traditionally keeps its accounting records manually. The Accounting Information System is created for the Lotus Garden Asian Fine Dining and Suites to enhance the efficiency of recording its business transactions. This manual serves as a basis in their accounting procedures and treatments in all their operations. This accounting manual pertains to the detailed Standard Operating Procedures of the firm which must be followed to carry out its operations correctly and in the same manner. This also includes the business profile, the various transaction cycles of the firm, the accounts used in recording and the proper way of journalizing. For better understanding, each of the account has a definition and the flow of their operations was properly identified.

COMPANY PROFILE
The Lotus Garden Philippines is the branch of the Lotus Garden Costa Rica. The business caters the needs of the tourists through their three main service segments namely, the Fine dining and Accommodation via The Lotus Garden Asian Fine Dining and Suites and their travel needs by Forest Canopy Tours. The management of the business is divided into four departments: Administrative Department, Finance Department, Operations Department and Marketing Department. Each department is headed by a manager and over all they have eighteen employees.

BASIC POLICIES ON SYSTEM AND ACCOUNTING

It includes accounting policies like:

Accounting Control

1. Installation of Effective Internal Control 2.General Safeguards and Control Assets

3. Payroll System and Procedures Main Features/Internal control System

BASIC POLICIES ON SYSTEM AND ACCOUNTING

1. Installation of Effective Internal Control
Every company must adopt measures of

safeguards and internal control to improve the

credibility and accuracy of its accounting records.

BASIC POLICIES ON SYSTEM AND ACCOUNTING

2.2 General Safeguards and Control Assets
2.1 Dual Control 2.2 Rotation Of personnel 2.3 Forced Leave of Absence 2.4 Scrutiny of Outside Activities of Personnel

2.5 Sound Policy in Hiring New Employees 2.6 Segregation of Duties

BASIC POLICIES ON SYSTEM AND ACCOUNTING

3. Payroll System and Procedures Main Features/

Internal control System 3.1 Payroll Preparation 3.2 Overtime 3.4 Pay Distribution

BASIC POLICIES ON SYSTEM AND ACCOUNTING

Other related policies

1. Cash disbursement System and Procedures

Safeguards and Control
2. Petty cash Fund System and Procedure Safeguards and control

BASIC POLICIES ON SYSTEM AND ACCOUNTING

1. Cash disbursement System and Procedures Safeguards and Control
1.1 Payments

1.2 Control of Checks

1.3 Bank reconciliation 1.4 Recording

BASIC POLICIES ON SYSTEM AND ACCOUNTING

2. Petty cash Fund System and Procedure Safeguards and control 2.1 Petty Cash Fund System and Custodianship 2.2 Petty cash Voucher 2.3 Restriction on Disbursements 2.4 Advances from Petty cash Fund 2.5 Petty cash Replenishment

BASIC POLICIES ON SYSTEM AND ACCOUNTING

Property and Equipment System and Procedures

Safeguards and Control 1. Approval of Capital Expenditures (Property and Equipment) 2. Record Keeping and Control Payroll System and Procedures Main Features/ Internal control System 1. Payroll Preparation 2. Overtime 3. Pay Distribution 4. Employees Earnings Record

BASIC POLICIES ON SYSTEM AND ACCOUNTING

Liabilities Safeguards and Control

1. Accounts Payable

2. Accrued Expenses

DATAFLOW DIAGRAM OF ACCOUNTING CYCLES

Open AP File (Voucher Payable) Check Register Payment Detail

Due Date, Amount Due

AP Sub Ledger ( Voucher Register)

Identify Liabilities Due

Voucher Packet Check Copy Prepare Cash Disbursement

Check

Supplier

Check Number, Payment Date Update AP Record Voucher Packet, Check Copy Close Voucher File Post to General Ledger AP Summary

Journal Voucher

JV Posting Detail

Approved Journal Voucher

Journal Voucher File

General Ledger

Figure 1: Cash Disbursement Cycle Data Flow Diagram

Payment Amount Received

AR Subsidiary Ledger
Check and Remittance Advice

Customer

Remittance Advice and Remittance List

AR Summary

Journal Voucher File

Open Mail, Prepare Remittance

Update AR Records
Approved Journal Vouchers

Cancelled Check

Remittance List Copy Check and Remittance List

Update General Ledger

Posting Data

Record and Deposit Checks

Returned Deposit Slips

Check receipts Journal Vouchers

General Ledger Records

Reconcile Cash Receipts and Deposits

Approved Journal Vouchers Remittance List

Bank

Journal Voucher File

Deposit Slip

Check and Deposit Slip

Cash Receipts Journal Company Cash Account

Figure 2: Cash Receipts Cycle Data Flow Diagram

Labor Distribution Summary Operations Department Job Ticket Update WIP Account Hours, Rate, Job Number Time Cards Work in Process

Journal Voucher Personnel Action Prepare Payroll Hours, Rate, Witholdings

Personnel Division

Employee (Payroll) Records Disbursement Voucher Prepare Cash Disbursement

JV Posting Detail

Approved Journal Voucher

Employees Paychecks Payroll Register Prepare Accounts Payable Amount, Due Date, Check Number General Ledger

Distribute Paychecks

Voucher Package Employees Paycheck Employee Prepare Cash Disbursements Amount, Date Employees Paychecks Check Register Voucher Package Check Copy

Voucher Register

Journal Voucher

Bank Payroll Check

Figure 3: Payroll Procedure Data Flow Diagram

Inventory Subsidiary Ledger Inventory Levels

Valid Vendor File

Name, Address, Terms AP Pending File Monitor Inventory Records Supplier Merchandise Requisition Purchase Order Copy 2 Prepare Purchase Order PO Copy 4 Set Up Accounts Payable Supplier

Invoice

PO, Rec. Rept.

PO, Rec. Rept.

Purchase Order

Amount Due, Due Date AP Sub-Ledger (Voucher Register) PO, Rec. Rep. Invoice

Purchase Order 4 (Blind Copy)

Open/Closed PO File

Purchase Detail

Journal Voucher

Bill of Lading, Packing Slip Receive Goods

Rec. Rpt. Copy 2

Purchasers Journal

Open AP Files (Voucher Payable)

Receiving Report Copy 3 Receiving Report Receiving Report Copy 5 Receiving Report Copy 4 Update Inventory Records JV Posting Detail Stores Receiving Report Quantity Received Journal Voucher File Inventory Subsidiary Ledger Post to General Ledger Approved Journal Voucher General Ledger

Inventory Summary

Figure 4: Purchase Procedures Data Flow Diagram

Stock Cards

3 Raw Materials Information 1 Determine the raw materials needed in the production Inventory Status 2 Prepare Three(3) Copies of material requisition Material Requisition 7 Signed the material requisition,. Release the raw material and update the stock cards 6 Raw Materials Process raw materials to finished goods Prepare three (3) copies of summary of Finished Goods Produced Production Personnel

Production Supervisor

Finished Goods and Finished Goods Produce 8 4 Update the Inventory records Material Requisition 5 Update the WIP Account Signed the documents, update the stock cards and finished goods to warehouse

Stock Cards

RW Inventory Records

WIP File Summary of FG produced

9 Update the inventory records

10 Remove the cost sheet from WIP

9.1 Changes in the inventory records JV 10.1 11 Update the general Ledger JV Summary of debit and credit to WIP are recorded in JV

Figure 5: Conversion Cycle Data Flow Diagram

Figure 6: Financing and Investment Cycle FINANCING AND INVESTING PROCESS LEVEL 1

2.0 Cash Disbursements Process

4.2
Apply for Loan

Settlement of Accounts / Payment

Financing Process

Approval of Loan Loan Application

Other Financial Institutions

Owner

Result of Loan Application Acquired PPE

4.1
Proceeds

Sale of Property, Plant and equipment

1.0 Cash Receipt Process

Acquisition of Property, Plant and equipment

Investing Process

Cash Payment or Deferred Payment

Suppliers & Other Creditors

FLOWCHART OF THE PROPOSED SYSTEM

Figure 6: Log In Procedure

Figure 7: Main Menu

Figure 8: General Journal

Figure 9: General Ledger

FINANCIAL STATEMENTS:
INCOME STATEMENTS
STATEMENT OF CASHFLOW BALANCESHEET

SAMPLE FORMS:
SALES ORDER
PURCHASE REQUISITION SALES INVOICE

JOURNALVOUCHER
GENERAL JOURNAL LEDGER CASH DISBURSEMENT VOUCHER

DTR
PURCHASE ORDER