Final Year Project Report

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CHAPTER 1- INTRODUCTION
1.1 Background
ELECTRONIC SYSTEM SOLUTIONS (PVT) LTD was established in March 2006, by the director of the company Mr.Vipul Hettige. This company was initially opened to satisfy electronic needs to other companies as well as personal customers. This company faces heavy demand of stocks due to tensed security environment. When a customer walks into the company or if there is a requirement from one of these companies a quotation is sent by a customer service representative after inquiring a verbal request of stock availability from store keeper and a pricing from the accounts department (checked from the current system).A customer can immediately purchase or create an order. Once the customer confirms his order and pays an advance the sales executive raises a job card manually for all equipment required and prepares a stock requisition. Then he submits the stores requisition to the stores to make arrangements for the delivery of goods.

The flow of stocks has never been managed by the poorly automated system used by the company. Hence in most cases half the items in the requisition are not available due to items already issued to other sales executives. Since most of the items are imported and due to the lack of stock availability, locally produced stocks have to be ordered immediately and are delivered to customers. Both customers and sales executives are frustrated due to lack of proper procedures and policies and the availability of proper equipment and information in time. The present system permits only for adding new details and for search existing details of customers, stocks and suppliers but never updated stocks once sold, nor did it alert the management when there was a requirement to re-order.

The General Manager (GM) administrator is responsible for all purchases he sources suppliers by getting through the internet and by writing to them and getting Performa invoices for items required for sale in the company then he gets the exchange control approval and sends the money by telegraph transfer through an international bank. Sometimes, there would be delays in sending the money due to the heavy list of Debtors, since customers delay payment for late delivery of goods and some items need warranty replacements as they may have been hit by lightning or power surges through frequent breakdown of the electricity in the country.

When the supplier get the payment he gets the goods ready to be shipped and requests a freight forwarder who makes the arrangements to collect the items and ships them ,a local agent gets the shipping documents such as commercial invoice , packing list and airway bill. The company pays for the freight charges and endorses the document from 1

the bank and submits it to the clearing agent. The agent prepares a customer declaration form known as cusdec which is a document by which the company pays all government taxes such as duty, sess surcharges, Value Added Tax(VAT),Social Responsibility Levy(SRL) and Port and Airport Levy (PAL). Once the customer approves the form the payment has to be arranged to the principle collector of customs through a bank. Then the payment is made and the goods are examined by the customs and are released to the clearing agent. The clearing agent transfers goods to the company’s stores and hands it over to the store keeper. The store keeper collects the commercial invoice and raises a Goods Received Note (GRN).

The storekeeper also creates bin cards for each and every item he receives and quotes the Commercial Invoice Number as reference in the Bin Card. He then stores the goods safely until they are issued.

When customer makes an order for the goods, the Sales Executive raises a Job Card giving the details of the Customer, the list of items and the value of goods he has ordered. The Sales Executive gets the approval from the GM and after he has received the advance payment, He takes the Job Card to get the items from the stores. The...
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