DESIGN AND IMPLEMENTATION OF A FIXED ASSET MANAGEMENT INFORMATION SYSTEM (A CASE STUDY OF UNITED AFRICAN COMPANY OF NIGERIA (UACN) DEVELOPMENT COMPANY PLC LAGOS)

ABSTRACT

            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

Title Page

Abstract

Organization of work

Table of Figures

Table of Contents

CHAPTER ONE

Introduction

Statement of Problem

Aims and Objectives

Scope of the Study

Constraints

Assumption

Definition of Terms

CHAPTER TWO

Literature Review

CHAPTER THREE

Description and Analysis

Fact Finding Methods

Organizational Structure

Objective of the Existing System

Input, Process and Output Analysis

Information Flow Diagram

Problems of the Existing System

Justification for the New System

CHAPTER FOUR

Design of the New System

Input Specification and Design

Output Specification and Design

File Design

Procedure Chart

System Flowchart

System Requirements

CHAPTER FIVE

Implementation

Program Design

Program Flowchart

Pseudo codes

Source Program

Text Run

CHAPTER SIX

Documentation

CHAPTER SEVEN

Recommendation

Conclusion

References

TABLE OF FIGURE

2.1              Analysis of sum of the year depreciation

2.2              Analysis of double declining balance depreciation

3.1              Organizational Structure

3.2              Information flow diagram

4.1              Output design for individual asst category

4.2              Output design for summary

4.3              (A – D) Input specification

fig. 4.1 Procedure chart

fig 4.2  System flowchart

fig 5.1 (A – D) Program flowchart   

CHAPTER ONE

INTRODUCTION

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.

SCOPE

            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.