Elements of building the system Documentary cycle

Definition of the documentary cycle, the objectives of the documentary cycle, the difference between the documentary cycle and the accounting cycle, whether the documentary cycle is sufficient to enhance financial control in the company, the impact of technological progress on the documentary cycle, and the difference between the application of the documentary cycle in traditional methods and the automated system

Attia Hamdy - • Capital ERP for System Managment

Elements of building the system Documentary cycle :

Definition of the documentary cycle :

- The documentary cycle is the set of documents related to the accounting and administrative cycle of the company, on the basis of which the financial statements are issued, such as the statement of financial position and the statement of income, and they vary according to the operations in which the company is a party, whether these operations occur inside or outside the company, and whether these documents are issued internally by management, or externally from the parties with which the company deals.

The documentary cycle is one of the set of courses for financial accounting and is the first stage in the application of accounting processes. It represents the main element in which the document goes ... It is a flow map and the flow of processes that occur through which data is collected and recorded in the journal (currently in the system). Therefore, it is of great importance to the accountant and auditor within the company and the auditor as well, as it is the physical evidence on which it is based in control, as it documents the event and works to clarify all the details of the operations in an inadmissible manner.

Objectives of the documentary course :

1. Determine the tasks to be performed.

1. Separation of powers and responsibilities.

1. Used in the control of all financial and administrative work.

1. Linking departments that perform common tasks together and helping them work accurately.

1. Assist the management in making the right administrative decisions that are in the interest of the institution, based on accurate information through supporting documents for the event.

1. Collecting data and making reports that must be provided to management and managers to follow up the company's business

The difference between the documentary cycle and the accounting cycle :

They can be differentiated as follows :

Accounting Cycle :

It is the policies, procedures, method of conducting, analyzing, recording, tabulating and summarizing financial operations to reach financial statements that express reality honestly.

Documentary Courses :

They are the tools necessary for the work of the accounting and administrative cycle, from approved and legally sound documents, and with argument and support for the occurrence of financial and administrative operations in the company.

Is the documentary cycle sufficient to strengthen the financial control in the company ?

One of the most important methods of financial control is the segregation of functions, for example, the treasury employee who alone performs the cycle of receipts, the cycle of payments, the cycle of purchases and the cycle of sales, is prone to omissions and errors - and perhaps fraud or manipulation, God forbid.

Hence, the correct documentary cycles are sufficient to strengthen the financial control of the company, whenever we can separate the functions,

Separation of purchasing accountant, sales accountant, treasurer, storekeeper and other jobs

The impact of technological progress on the documentary cycle :

Technological progress has led to the complete transformation of the documentary cycle as follows :

In previous periods, the documentary cycle forms are printed in their various forms and the information they contain ...

About Us :-

Such as company name, address, registration number, document number ... etc

On the data supporting the transactions : -

Such as customer name, date, item name, quantity, price, value... etc

But at the present time the thought has completely changed with the presence of systems that work automatically, as they contain documentary cycle models to enter transaction data and then output the document when printing, and company information is added to these forms once in a lifetime when designing the printing model and can be modified when needed without the need to print other books and destroy old books .

The difference between the application of the documentary cycle in traditional methods and the automated system :

- Traditional methods: -

1- Print the document with all the information about the company and the data that will be entered

2- It is not possible to modify after the sale of the books and it is necessary to print again for the amendment

3- Recording the data on the paper document and then moving the document for review and approval

4- It is not possible to review and approve automatically

5- It is not possible to modify the document even if the senior management

6- Inability to oblige the official to record data

7- It is not possible to oblige the official to the basic data of the document

8- The data is entered in each document separately without benefiting from the previous entry

9- Recording the financial impact of the transaction through the financial officer

10- The registration or modification of the document cannot be limited to a specific person

11- Take a long time to extract the required reports

12- Not suitable for making quick decisions, so you need time for review and data completion

13- Do not help to compete due to the delay of the required information

14- The difficulty of reviewing and limiting the internal and external auditors located next to the document

- Automatic system :

1- Designing the document printing with all the information about the company and the data expressing the transaction

2- It is possible to modify the new information on the required document in a simple and quick way

3- Record the data on the system and then extract the document for signature and preservation

4- The review is done and the automatic is approved on the screen

5- The document can be modified by the person allowed to do so

6- Obliging the official to record the data due to the cessation of the next stages of the document on this data

7- Mandatory data can be specified by a user

8- The data is entered once, so the data is copied from the document previously or later to the document

9- The financial impact was recorded with the document saved from the preparer by preparing it at the initial operation of the system

10- Making powers for the user, so the document can only be prepared for the person who is allowed or modified by another person and not others

11- Reports are extracted quickly, accurately and expressively

12- Convenient to take quick escapes to record and review data in a timely manner

13- Helps to compete because of the presence of the required information upon request

14- The review is done on the screen by opening the program from anywhere and determining the sample quickly and easily

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