DESIGN AND IMPLEMENTATION OF A FIXED ASSET MANAGEMENT INFORMATION SYSTEM (A CASE STUDY OF UNITED AFRICAN COMPANY OF NIGERIA (UACN) DEVELOPMENT COMPANY PLC LAGOS)
With the rapid development in Computer Technology, most organization have embraced the use of computer resources in its activities to enable them achieve its set down objectives. Electronic data processing is a wonderful tool which is used extensively in financial accounting to implore performance and accuracy.
The principle aims of a fixed asset management information system is to create automatic, understandable and efficient system that will eliminate the problems of determining the asset depreciation and value of the conventional system.
The work identifies the various handicaps and significance of fixed asset system in the introductory section, so that proper solution could be proffered.
Moreso, the project critically evaluates some concepts of fixed asset depreciation in the review of past literature.
However, the existing system and its operation was clearly studied to infer proper understanding of the manual approach and justification for a system support. Hence, the new systems design that provides the input and output specification, file analysis form, the piecemeal for the program design.
Furthermore, the project explicit shows the algorithms that really produce the source code and flowchart under the umbrella of project documentation the work explains how the new system could be used via the function keys, password, modification and finally recommendation that will assist in system maintenance.
ORGANIZATION OF WORK
This project work is organized into seven, chapter one introduces the fixed asset information system, depreciation, the statement of the problem, purpose of the study, aims and objectives, scope, constraints, assumption and definition of terms.
Chapter two tackled about reviews of related literature with emphasis on method of depreciation.
Chapter three presents the description and analysis of the existing system. There are facts finding methods organizational structure objective of the exiting system, input, process, out put analysis, justification for he new system.
In chapter four, design of the new system, the output and input specification and design procedural chart system, flow chart and system requirement.
Chapter five deals with the implementation under this title program design. Program flow chart, source program and test run were discussed.
Chapter six discussed the documentation and chapter seven summarizes the work under recommendation and conclusion.
TABLE OF CONTENTS
Organization of work
Table of Figures
Table of Contents
Statement of Problem
Aims and Objectives
Scope of the Study
Definition of Terms
Description and Analysis
Fact Finding Methods
Objective of the Existing System
Input, Process and Output Analysis
Information Flow Diagram
Problems of the Existing System
Justification for the New System
Design of the New System
Input Specification and Design
Output Specification and Design
TABLE OF FIGURE
1. Analysis of sum of the year depreciation
2. Analysis of double declining balance depreciation
3. Organizational Structure
4. Information flow diagram
5. Output design for individual asst category
6. Output design for summary
7. (A – D) Input specificationfig. 4.1 Procedure chartfig 4.2 System flowchart
fig 5.1 (A – D) Program flowchart
Fixed asset management information system is a sub-operation in financial accounting that take care of the degeneration of asset usefulness because of this responsibility. Asset management and depreciation is very important in any organization.
Asset management and deprecation is a content of every balance sheet and then proper attention should be given on how asset are depreciated to provide complete and accurate information that will assist management in planning and policy making.
This is why it is important to design a fixed assed management information system
STATEMENT OF THE PROBLEM
To determine the fixed asset value and depreciation in every organization has been a problem.
Hence, there are limited number of staff working in the account department which makes the existing asset account to be delegated to some staff by their departmental heads at the end of each period. The handling of Asset Account by numerous staff creates positing error omission error and inaccurate calculated results.
Apart from that, there is no adequate record storage and disposal system which resulting in non-documentation of some existing asset are as well as continuous recording of scrapes. However, the method of asset depreciation being used in the existing system is ineffective.
Infact, the researcher shall by the end of this project provide a suitable solution to the pressing problems of fixed asset value and depreciation.
PURPOSE OF THE STUDY
The fixed asset management information system is cost effective and provides an interactive environment, makes job easier and simpler. Thus it will help the organization to know the various assets she have if location useful and non-useful ones, accurate recording of these assets and moreover assist them in planning and decision-making.
This will help the company in project allocation and proper accountability. Furthermore this project work will serve as a reference to both private and public organizations who are researching in this area and others that will appreciate benefit of automation.
AIMS AND OBJECTIVES
The objective of this project is to design a fixed asset management information system that will curb the problems and malpractices of the existing system. This automatic software facilities online recording and modifying of assets using electronic keyboard. It also enhances automatic depreciation of an asset, proper storage and speedy retrieval any asset value. However, the computerized system will provide management with various reports on depreciation expenses and accumulated depreciation at the end of every period. Hence a graphic operating environment is incorporated to the system so that the software will be easy to use and maintain.
This project mainly focuses on tangible asset of the company, via land, building, machinery vehicle and furniture. Although land is not depreciated due to its continuous nature, other fixed assets category depreciates and its depreciation depends strongly on the estimated life span of asset.
Moreover, all the acclaimed expenses that increases the cost of the asset are recorded in the estimated cost of the asset. This is made possible using modified submenu.
This project is limited only to the account section (ACITD) of the organization because it will be tedious to incorporate other activities of fixed asset into this work considering time and resources.
Also, the limited staff in the accounts section have little or no knowledge of electronic data processing and this is a hindrance.
Numerous parameter have seriously hindered the realization and full implementation of this project mostly is money, inadequate this software since the account department do not have the system support.
Generally, it is believed in this project that fixed asset continue, depreciating until it have completed its estimated life span. Meanwhile the asset stops depreciating once the book value is equal to or less than the scrape value and it is not useful to the organization and must be disposed.
It is also hoped that the result of this project will further contribute to a suitable practical basis of operation for fixed asset depreciation.
DEFINITION OF TERMS
It is important to define some basic terms used in this project.
FIXED ASSET: These are long term asset that are used in a firm to provide goods and services over a period of one year.
MANAGEMENT INFORMATION SYSTEM (MIS): It defines as a programme, which accesses internal (human resources, marketing accounting, production research) records to generate reports to the various levels of information.
BOOK VALUE: This is the estimated cost of the asset less total accumulated depreciation and condition ready for use.
ACCELERATED DEPRECIATION: Method of depreciation that records higher amounts of depreciation in the early years of an asset life and lower amount in later years.
ACCUMULATED DEPRECIATION: A contra account that accumulates the depreciation taken on asset over its useful life.
CAPITAL EXPENDITURE: Expenditure that are debited to an account to an accumulated depreciation account.
CONTRACT ACCOUNT: An account with a balance opposite normal balance.
COMPUTER HARDWARE: The major electronic component in a computer system and other peripheral attached to it.
DATA FLOW: Graphic representation and analysis of data movement processing transformation functions and data store.
DEPRECIABLE COST: This is the asset estimated cost less estimated storage.
DEPRECIATION: The allocation of cost of an asset over it useful economic life.
ESTIMATED COST: This is the acquisition cost plus other expenses that increases the asset value.
FILE: A collection of related records stored in a specific sequence.
IMPLEMENTATION: Consist of the design and installation of new system and the removal of the current system.
INPUT: The raw data, raw material, paper work, computer file, the energizing element that puts the system into operation.
MICRO-COMPUTER: A small relatively in expensive computer that is design to be used by individual at their own desk.
OUTPUT: The end product of the area under study. It can processed computer file.
PASSWORD: A unique word or string of characters that a program computer user must supply to meet security requirement before gaining access to the program or data.
SALVAGE VALUE: This is the appraisal scrape value of an asset.
SOFTWARE: The program control the operation of the computer.
STORAGE DEVICE: The various device whereby data and instruction are stored for immediate or future use..