January 28, 2013
Data Table Analysis
This brief will evaluate the design elements of the data tables from an accounting perspective for Kudler Fine Foods. An entity relationship diagram illustrating the existing data tables will be created. Recommendations that are needed for improvements to the data tables will also be outlined. This brief will show a pivot table using Kudler’s general ledger inventory data and there will be an explanation on how the information in the pivot table may improve decision making for management. Having a useable and informative data table can be an asset to a business in many ways. From an accounting perspective the data tables are simple and easy to read. There are four headings. They include the GL Code, inventory item, summary line item and the amount. The GL Code helps to identify which store the item is located at. For example, 12 stands for La Jolla, 13 identifies the store in Del Mar, and 14 identifies the Encitinitas store. The inventory item identifies what items are in inventory. At a quick look every manager can see what is in inventory at each store. The third column is the summary line item. This column identifies the store name and which department the item is located in. The last column is the total cost of the items in inventory. The data tables help the company to know what item is in inventory, where it is located, and the total cost of the inventory. An entity relationship diagram can be illustrated by using the existing data tables. According to Bagranoff (2008), an entity-relationship diagram depicts the entities and the direct relationship. There are four symbols used to help create the graphical documentation. The symbols are rectangles, diamonds, ovals, and connecting lines. The rectangles represent entities, an oval stands for an entity’s attributes, diamonds describe the relationship and the connecting lines show relationships. This diagram is a visual interpretation of what relationships of entities are. See appendix A. The inventory table is an important tool for assisting in what products are on hand and what products are needed to be ordered. Even though the table is simple to read and provides valuable data, there are improvements that can be made. The first improvement that would help in identifying what each store has in inventory is to rearrange the GL codes by store. Managers from each of the three stores would have the ability to see if another store has an item that they need in their inventory. Another improvement would be to add a category that would identify what each item cost. The total amount in inventory is listed but listing cost per item would help determine if the cost of the item is worth the quality of the product. A third improvement that would be beneficial to all three stores is the need to know how much of an item is in each store. It is not cost efficient to have a large inventory of items and not sell the product. If a store needs an item they can check if another store has it instead of ordering one. The table can also show what items they have in stock that are not selling. Depending on the items not selling, management will need to determine if the items are a loss or there needs to be a plan to get the items sold. Pivot tables help a business to have quick access to multiple types of information. These tables can take a lot of information and summarize it in an organized format. Decisions on how much of an item needs to be in inventory and what time of the year the items are needed can be made by using a pivot table to sort the data. Having current information at a moment’s notice is time efficient and cost effective. Another feature of a pivot table that improves decisions made by management is the ability to see the total costs for an item in inventory as well as what is in inventory. As items are sold or stocked on the shelves, the...