Feedback and Recommendations regarding UBS Mini Blogging Projects DAC 2183 May 2013 Session...

Finally, I am here for the last posting regarding the UBS Mini Blogging Project for the subject DAC 2183 Accounting Information Systems I (May 2013 session). Many advantages that I got from doing this project.

First and foremost, I, Asvinnya A/P Sangaram, would like to take this opportunity to extend my highest appreciation and gratitude to our lecturer, Sir Noreffendy Mohamed who has inspired us and guided us in the achievement of this project. I would also like to say our thanks to the owner of Kedai Gunting Rambut Murugan, Mr Murugan who is willing to cooperate with us and give us the information we needed for our UBS project. Not to be forgotten, we also want to extend our thanks to our parents for their moral support and ideas given to us.

For this last posting, I am very happy and glad that I have successfully completed this project within the time given. This mini blogging project have provided me with benefits which I can recall back on what we have learned in the class and to test back on our understanding about the terms that we have found during our UBS learning session.

Lastly, for my feedback on this mini blogging project is, I would say that there are a lot of things that I have learned from this mini blogging project. Mini blogging gives me the experience to explore and be creative by choosing my own background layout, fonts, and adding music and pictures to my blog.

We use this blog basically to update our progress of the UBS project and some topics of the Sage UBS accounting system. It was really simple,fast and efficient way to update those information and was really fun too. Besides that, by having this blog, I was able to express what we have learned in class by writing and posting it in the blog and this helps us to understand the topics better. I would conclude that the mini blogging project gives many advantages and I would definitely recommend this project to be used again in the future. Thank you...

Identify and elaborate the differences of UBS terms below :

1) Deleting individual data vs Deleting all data in the UBS system


• Deleting Individual Data > Means that it will only delete the transaction and the batch titles data. The chart of account and also the opening balance will remain and will not be deleted.


There are 2 steps to delete transactions :-


i. Step 1


* Go to the batch that contains the transaction.
* By using V.EDIT function at 1. Transactions File Maintenance, edit the debit and credit side of the transaction as following :-


a) Key in all (10) asterisk (**********) in Reference Number Field
b) Change the amount to 0.00 on both debit and credit
c) And then Click the SAVE button.


ii.Step 2


* Go to 7. Housekeeping, 4. File Organisation.
* Click Unmark All button, then Mark on Delete Unwanted Transactions and then Click OK button.


• Deleting All Data > Means that all saved transactions, account numbers and the batch titles of data will be deleted. We can partially clear or delete all of the data in the system. To do so, we need to go to Housekeeping, Clear Files/Generate Sample Chart, and then we just need to choose the first option which is "Clear both chart of accounts & transactions" and then click OK.

2) Backup vs Restore

• Backup > Is a compression of multiple data files into one compressed file and then we need to transfer the compressed file to the floppy disk. Go to file and select backup and restore click backup.Click on backup button then click on ok button to start on compressing data files into a compressed file,named as backup.acc. After that, we need to rename the file with a new file name, so that it will be easy for us to do another backup file.

• Restore > It means to decompress the compressed file from the floppy disk/USB flash drive in order to recover back the multiple original data files which should be stored back into the UBS system. Before we want to do the Restore, we need to make sure that the name of the file is BACKUP.ACC because the UBS system can only read BACKUP.ACC file.

3) Add Entry vs Quick Entry

• Add entry > This is a single transaction entry procedure. When we key in amount in the debit side, we have to key-in the credit side as well in order to complete the double entry concepts. We must remember to click the 'SAVE' button once we have done adding amount in the debit and credit sides, if not all the transaction that we have done will lost.
  
• Quick Entry > This is a double transaction entry procedure. Once we enter one side of the double entry, the system will generate the other side of the entry automatically. What we need to do is just to nominate the Master Account. For Master Account, we can choose any double entry account which means that the account's entry will be handled by the system.

4) Lock vs Unlock Batches

• Lock batches > This is a step in order to prevent the batches from loss when we delete the transactions. We can choose any batches for us to lock by doing a few steps, which are by going to 'Transactions > Organise Batches'. We just need to highlight the batches that we want to lock and click 'Lock' button. There will be a symbol of letter 'L' at the side of the batches column which means that it is already locked.

• Unlock Batch > To unlock the batches, we need to go to administrative tools at 7.Houskeeping. Enter the UBS password, click on tools tab and then, click on number 6 item and click apply. After that, highlight at the batches, erase at L.Transaction column and L. Status column than exit. When we check back, we can edit the transactions on that batches. The symbol of letter 'L' will be disappeared from the batches.

5) Special Account vs Non-Special Account

• Special accounts > There are two groups, which are the group that requires certain function and for the accounts that require certain specification to obtain the effects when we want to print the reports. The examples of the first group is the group that requires certain function is like stock account, manufacturing account, payment voucher and etc. For the second group, the group for the accounts that require certain specification to obtain the effects when we want to print the reports are like header settings, spacing single line, subtotal and etc.

Special Accounts :

3010/000 Bank PV

3030/000 stock BS

6020/000 closing stock

6010/000 opening stock

7000/000 Manufacturing Account

• Non-Special accounts > This is an account that do not require certain function or certain specifications. It will result by not giving any effects when we print the reports.

Share your experience when doing the manual accounting process from source documents until ledger entries...

Firstly, we have to get the source documents such as bills, receipts, cash book, invoice and cheque from the company we have chosen.

Once we have got all the source documents and have been approved by Sir Noreffendy, we began to take up our further step to finish our UBS project. We have to perform a manual accounting process by converting the source documents to journals and ledgers for a six month period. Sir Noreffendy asked us to convert the data from the source documents to journals and ledgers in order to avoid any mistakes from arising when we key-in the data into the UBS system. This step actually tested our skills in accounting entries whether we still remember those entries or not and also testing us on how long we take to convert the data.

It was actually difficult to convert the data when we began doing it. We also need to check all source documents one by one so that there are no errors during the conversion. Particularly, we have to check the date that the transaction took place. So, it take us a long time to settle with the work. But, we managed to do it within our targeted time.The conversion mostly involved bills and cash book.

For our company, the expenses are such as electricity and water, internet, rent, labour salary and Indah water. This is just a small company so we do not have many transactions to be converted. 

We successfully converted the transactions into journals and ledgers and have been approved by Sir for us to proceed with the next step.

It is really challenging to complete this project. We hope that we can do our best..=)

What do you understand by the function of ''Accounting Assumption Page'' for your UBS project?

Accounting Assumption here means that assumptions made to support accounting data that have no evidence but have been included in the computerized project. There are few assumptions made in my UBS project. Assumptions can be made through an interview with the owner of the company or from past data.

Based on the research that we carried out, there are some accounting assumptions we have made.

1. All payments to the seller are made by cash

After an interview with the owner of the company, we got to know that all the purchases of goods made by the company are paid using cash only. They have never used credit transaction for purchasing the goods. Therefore, in our transactions (journal and ledger), there is no credit terms.

2. No creditors exist

There are no creditors exist in this company because they only purchase goods in a small amount of money. Moreover, the owner said that they will go by themselves to get the goods and pay the cash immediately to purchase the goods. For example, this is similar like if we go to a supermarket to purchase goods, we will purchase the goods immediately by paying cash.

3. No debtors exist

There are no debtors exist as all the customers need to pay cash once they have cut their hair. Moreover, customers are not allowed to owe money after they have cut their hair.

4. All expenses are made by cash

All the expenses made such as internet, electricity, labour salary, rental and Indah water are paid using cash. Expenses are not allowed to be made by installment and all the expenses need to be paid on time.

5. Lack of documents

There is no documents to show that rental and labour are being paid. As the owner said that they do not have complete documents because those expenses are paid by cash.

Assumptions are traditions and customs which have been developed over a period of time and well-accepted by the profession. Accounting assumptions provide a foundation for recording the transactions and preparing the financial statements. These assumptions are held true when accountants prepare the financial statements and when users read them. In effect, accounting assumptions provide a level of foundation to help prevent misunderstandings between and among accountants and users. There are four BASIC assumptions that are considered as cornerstones of the foundation of accounting :

• Accounting entity assumption
• Money measurement assumption
• Going concern assumption
• Accounting period assumption

Accounting entity
Accounting entity assumption states that the activities of a business entity are kept separate from its owners and all other entities. In order words, according to this assumption, business unit is considered a distinct entity from its owners and all other entities having transactions with it. For example, if the owner brings in cash or any other assets, it will result in the increase in assets of the business and capital of the firm. This capital represents firm's liability to the owner. The expenses of the owner paid by the firm's assets are recorded as withdrawals from the business. This means the profit and loss account will show the revenues and expenses related to the business entity only. Thus, balance sheet will show the assets and liabilities of the business entity only. This assumption is followed in all organizations irrespective of their form.  

Money measurement

This assumption requires use of monetary unit as a basis of measurement. For example, the currency of the country where the organization is to report its operations. This implies that those transactions which cannot be measured by monetary unit will not be recorded in the books of accounts. Monetary unit is supposed to provide a common yardstick to measure the assets, liabilities and equity of the business. It also indicates that certain information is important to state the true and fair picture of the entity will not be recorded in financial accounting books if it cannot be expressed in terms of money. Examples of monetary units are the Ringgit Malaysia, pound sterling in the United Kingdom and Peso in Mexico.

Going concern assumption
The financial statements are prepared assuming that the business will have an indefinite life unless there is evidence to the contrary. The business is called ' going concern ' thereby implying that it will remain in operation in the foreseeable future unless it is to be liquidated in the near future.

These assumptions :
- Assumes that a business will continue to operate for the foreseeable future
- Allows cost and revenues to be allocated to future accounting period
- Provide more realistic value of business assets.  

Accounting period assumption
This assumption permits the accountant to divide the lifespan of the business enterprise into different time periods known as ' accounting period ' ( quarterly, half-yearly, annually) for the purpose fo preparing financial statements. Hence, financial statements are prepared for an accounting period and results thereof are reported on periodic basis.