Chemical X Corporation

A Business Proposal
Presented to the
Faculty of the Department of Accountancy
School of Business and Economics
University of San Carlos
Cebu City, Philippines

In Partial Fulfillment
Of the Requirements for the course AC 526
Management Consultancy

Submitted by:

APALE, KRISTINE
BALANAY, ZYLE
CAMELLO, CHITHRA FAITH
CEJAS, ADREI ANNE
LAPECEROS, SHEENA MECHELLE
SABERON, KENT
SORIANO, TIFFANY CHRISTINE
SUMALINOG, ANVILLE MARIE

12:00 PM-1:30 PM MW Group 4

March 1, 2017
COMPANY PROFILE

Chemical X Corporation was created to ultimately insure the satisfaction of our valued

clients by providing world-class quality products and personalized services there is.

Chemical X Corporation has a wide diversity of products that specifically conforms to

the customer’s needs because it is fully aware of the ever-advancing technology through research

and on the field of observation. The delivery and distribution system within the province of Cebu

is what the Chemical X call “A-1” that is “When and wherever you want it, you got it”, and it

has the mobilization and communication capacity substantiate it.

Chemical X Corporation is an organization that comprises a staff which is fully screened

based on their ability, experience and honesty. Self-motivation and willingness to sacrifice to

comply to the customer’s needs is the organizations groundwork. The Chemical X team work as

one, dream as one, a dream that by supporting, will help achieve the customers goal and

Chemical X as well.

The main office of Chemical X Corporation is located in Mandaue City, Cebu

Philippines.

Name of Company : Chemical X Corporation

Telephone No. : (032) 420-6360 / (032) 420-5898

Fax No. : (032) 345-6589 / (032) 345-1672

Nature of Business : COMPLETE SUPPLY OF LOCTITE SPECIAL

ADHESIVES, MAINTENANCE REPAIR AND

OVERHAUL, RUST TREATMENT AND

CLEANING, COMPOSITES FOR PUMP

REPAIRS, BACKING MATERIALS,

GROUTING, JANITORIAL CHEMICALS,

PHOENIX LUBRICANTS.

Major Specific Lines : SOLE VISAYAS DISTRIBUTORS OF:

1. LOCTITE PRODUCTS – Thread locking, thread Sealing, Gasketing, Retaining,

Metal Repair System, Wear Protection-Reclaim and Repair, Grouting, Floor and

Concrete Repair, Anti-Slip Traction System, Rubber and Belt Repair, Anti-Seize

Lubricants, Rust Treatment and Cleaning, Bonding.

2. PHOENIX LUBRICANTS - Gasoline Engine Oils, Diesel Engine Oils, Marine

Engine Oils, Motorcycle Oils, Automotive Greases, Transmission Oils

3. POLYMER PRODUCTS- Floor Care Line (Waxes, Sealer, Crystallizer,

Cleaners, Specialties), Custodial Equipment and Supplies (Floor Polishers, Mop

Squeezers, Mop Head, Mop Handle, and other tools and supplies).

4. 3M MASKING, PACKAGING, SURFACE PROTECTION, AND

SPECIALTY PRODUCTS – Packaging Solutions, Surface Protection

Solutions, Specialty Solutions, Masking Tapes – Crete, Masking Tapes – Fine

Line, Flatback, and Specialty, Masking Tapes 0 Large Area Masking Systems,

and Masking – Specialized Applications.

5. 3M FACILITY, SAFE MAINTENANCE SOLUTIONS – Nomad Matting

System, Nomad Carpet System, Specialty Mats, Safety – Walk Treads, Scotch-

Brite Hand Pads, Wipes, Cleaning and Maintenance Chemicals, Infection

Prevention, Kitchen Cleaning – Food Safety, and Floor Pads.

Narrative Description
Revenue Cycle: Sales Order System
Person
Accounting Staff
Accounting Officer
Inventory Personnel
Warehouse-in-charge
Administrative Staff
Logistics Personnel
Inventory Personnel
Administrative Staff
Accounting Staff
Accounting Officer
Activity
 Receives client’s order.
 Receive approved credit check.
 Issues 4 hard copies of sales invoice (client’s copy,
ledger copy, inventory copy and file copy)
 Issues a Pull-out Form, fax it to the warehouse and
gives the original copy to the logistics personnel.
 Receives the pull-out form and file it.
 Receives the Inventory Copy and checks stock records.
 Forwards the inventory copy to the warehouse.
 Receives the pull-out form and invoice.
 Picks goods according to the goods ordered by the
customer, attaches 3 sales invoice (client, ledger,
inventory copy for verification and files the pull-out
form).
 Sends the goods with the attached invoices to the
delivery-in-charge.
 Issues 2 delivery receipts to be verified by the client
upon delivery.
 Delivers the goods to the customer/client.
 Let’s the client verify the three invoices and the
Delivery Receipts.
 Leaves the client’s copies and return the other copies
for recording purposes and filing.
 Receives the Verified Inventory Copy.
 Updates the Inventory record in the Inventory
Subsidiary Ledger and files it.
 Receives the Verified Ledger Copy and Delivery
Receipt and files it.
 Updates the Accounts Receivable in the Accounts
Envelope (jacket).
 Updates the Receivables in the system.
 Post to the General Ledger.
 Creates a Counter Receipt to be sent to customer for
billing.
Collector  Sends the Approved Counter Receipt to the client.
Narrative Description
Revenue Cycle: Sales Return
Person Activity

 Informs the company about the problem with

Customer
the products.
Accounting Staff  Prepare Return Slip
Accounting Officer  Makes a credit memo.
General Manager  Signs the credit memo for approval.

 Goes to the customer’s place with a new stock

Logistics Personnel
and checks the damaged unit/s. When
checking is done, he then asks the
complainant if they would like the unit/s to be
cancelled or replaced. If to be cancelled, he
gets the unit/s back. If to be replaced, he
replaces it with the new stock/s he is bringing.

 Adjusts the inventory records. (If the returned

stock can still be sold to other customers, no
adjustments needed. But if the stocks cannot
Inventory Personnel
be sold anymore, inventory record is adjusted
and sends a request for replacement to the
supplier.)
 Receives the invoice returned by the customer
Accounting Officer to the supplier.
 Updates the Sales Journal.
 Receives the Credit Memo and Updates the
Administrative Staff
AR Envelope.
 Receives the company’s documents every
Retainer/ External Accountant month for making of General Ledger,
Financial Statements and etc.
Narrative Description
Revenue Cycle: Cash Receipts System

Person Activity

 Issues a statement of account as a reminder for

Accounting Staff
the due payment through fax or email.
 Distribute the collection’s receipt to the client for
the due payment. (Secure another 2 copies for
Collector
verification)
 Receive voucher from clients and signs it
 Receives directly the check or cash as payment
from the client after receiving the voucher (the
Accounting Officer client may deposit it directly to the bank
especially outside Cebu)
 Inputs data into the Accounts Envelope manually
 Reconciles the receipt and deposits into the
Computer System (Peach Tree Accounting
Accounting Staff
System).
 Turns over the received cash or check for deposit
Accounting Officer (SOD)  Deposits check to the bank
Narrative Description
Expenditure Cycle I: Purchase Order
Person Activity
 Monitors the Inventory record using the Inventory
Inventory Personnel
Subsidiary Ledger.
 Prepare Purchase Order and send to the supplier.
 Receives Sales Invoice from supplier together
with the goods.
Accounting Officer
 Create a Receiving Report.
 Records the purchase details in the Purchase
Journal.
 Sets up Accounts Payable in the Accounts
Administrative Staff
Envelope. (Have an actual AP Sub. Ledger)
 Update the payables in the Peach Tree Accounting
Accounting Staff
System (computer).
 Records the purchase details and updates the
Inventory Personnel
Inventory Records in the Subsidiary Ledger.
Narrative Description
Expenditure Cycle I: Cash Disbursement
Person Activity
 After setting up the AP in the previous system, the
Accounting Department identifies all the
liabilities due with the use of the jackets and
accounting system. The monitoring of liabilities
usually happens weekly.
 The Accounting Department prepares for the Cash
Disbursement. The entity uses a program called
Business Check Program which was given by
Accounting Officer
Union Bank for easy preparing of Cash
Disbursements. After filling up the check in the
program, it will be printed.
 Presents the printed voucher (Business Check) to
the General Manager for verification.
 Prepares the bank check and let the President affix
his signature for approval.
 Updates the AP Records in the Account Envelope.
 Updates the AP Records in the system (Peach
Accounting Staff
Tree Accounting System).
Narrative Description
Expenditure Cycle II: Payroll System
Person
Human Resource Manager
Accounting Officer
Human Resource Manager (Pay Master SOD)
Accounting Officer
Accounting Staff
External Accountant
Activity
 Checks the attendance sheet semi-monthly
 Enters the information into the Employee Payroll
Records
 Prepares Employee Pay slip
 Issues a check for all the employees’ total
salaries
 Withdraws the check from the bank.
 Gives the cash withdrawn to the Human
Resource Manager.
 Creates a voucher for proofs of disbursement.
 Allocates the cash payments and places the cash
inside each of the employee’s payroll envelope.
 Upon receiving the payroll envelope, the Human
Resource Manager let the employees verify the
pay slip by affixing their signatures and files it.
 Records the transaction manually
 Reconcile the records using the computerized
accounting system.
 Updates Accounts Payable.
 Receives the necessary details and updates the
General Ledger.
Narrative Description
Financial Reporting System
Person
Accounting Officer
External Accountant / Retainer
General Manager
Activity
 Records the transactions in appropriate
transaction file.
 Presents the recorded transaction files and
receipts to the External Accountant/ Retainer.
 Receive transaction files and receipts.
 Process the Financial Statements.
 Submits the Financial Statement to the Company.
 Obtains the Financial Statements (Balance Sheet,
Income Statement, Other Comprehensive Income,
Cash Flows and Changes in Owner’s Equity).
 Reviews and verifies the contents of the Financial
Statements.