Understanding Auditing
Auditing words contain many meanings, ranging from the smallest to the most extensive. When viewed from the most narrow sense, can berartiengechekan auditing or checking the accuracy of the calculation of the physical existence of the accounting records. While the broader sense includes review and assessment of the decisions and performance management within the organization.
Alvin A. Arens
Auditing the activities of collecting and evaluating evidence that information can be quantified, from an economic entity, to determine and report the level of concordance between the information with predetermined criteria
The American Accounting Association
As a systematic process to obtain and evaluate evidence objectively, with regard to asersi (statements) about the actions and economic events, to ensure the level of keseuaian asersi with the criteria, and communicate results to interested users
Sawyer
Sebua Internal Audit is a systematic, objective appraisal by internal auditors for various operations and controls within the organization, to determine whether:
Financial and operating information is accurate and reliable
Corporate risk are identified and minimized
External regulations and internal policies and procedures are good and followed
Criteria for good operation and have been met
Resources have been used efficiently and economically and
Organizational objectives have been achieved.
All this is intended to assist the organization in carrying out their responsibilities effectively
The Institute of Internal Auditors, 1999
Internal Audit is assurance and consulting activities are independent and objective dirancanag to provide added value and further the activities of an organization by helping the organization achieve its objectives. The focus of internal audit activities include the assessment and improvement of the effectiveness of risk management and control of the company. All activities are conducted with the normative approach and regular
Kamis, 19 November 2009
CLASSIFICATION OF THREE MAJOR FINANCIAL RATIOS
CLASSIFICATION OF THREE MAJOR FINANCIAL RATIOS
Put simply there are 3 (three) ratio is always used in financial analysis:
Solvency ratio
Profitability Ratios
Activity Ratio
RATIO solvency
Company's ability to meet all short-term liabilities and long on time
Company's ability to meet all financial obligations if the company in liquidasi
Liquidity
The Company's ability to pay short-term obligations in a timely manner
Current Ratio:
(Current assets / current debts) X 100%
Quick Ratio
((Current assets - inventory) / Debt smoothly) X 100%
Solvency ratio
Long Term
((Current Assets + fixed assets) / Total debt) X 100%
Debt to Equity Ratio:
(Own capital / Total debt) x 100%
PROFITABILITY RATIOS
Financial ratios to measure the potential earnings of a company
1. RESULTS OF SALES
2. RESULTS FOR INVESTMENT
3. EARNINGS PER SHARE
RESULTS OF SALES
Profitability ratio of percentage of income meningdikasikan
Disposable income / SALES
RESULTS FOR INVESTMENT
Profitability ratio that measures the performance income earned for every dollar invested
Disposable income / TOTAL OWN CAPITAL
EARNINGS PER SHARE
Measuring the amount of dividends payable to shareholders of the company
NET PROFIT / NUMBER OF SHARES OF ISSUED
ACTIVITY RATIO
Financial ratios to evaluate the use of assets of a company by its management
MEASURING THE EFFICIENCY IN THE USE OF A RESOURCE COMPANY WITH RESPECT TO PROFITABILITY
Shows COMPANIES PROFITS TO GET MORE THAN OTHER COMPANIES IN THE SAME RESOURCES
Inventory turns RATIO
Measures the average number of stock sold and in stock for a year
RATES OF SALES / INVENTORY AVERAGE = (RATES OF SALES / (INVENTORY AT BEGINNING OF YEAR-END OF YEAR)
Put simply there are 3 (three) ratio is always used in financial analysis:
Solvency ratio
Profitability Ratios
Activity Ratio
RATIO solvency
Company's ability to meet all short-term liabilities and long on time
Company's ability to meet all financial obligations if the company in liquidasi
Liquidity
The Company's ability to pay short-term obligations in a timely manner
Current Ratio:
(Current assets / current debts) X 100%
Quick Ratio
((Current assets - inventory) / Debt smoothly) X 100%
Solvency ratio
Long Term
((Current Assets + fixed assets) / Total debt) X 100%
Debt to Equity Ratio:
(Own capital / Total debt) x 100%
PROFITABILITY RATIOS
Financial ratios to measure the potential earnings of a company
1. RESULTS OF SALES
2. RESULTS FOR INVESTMENT
3. EARNINGS PER SHARE
RESULTS OF SALES
Profitability ratio of percentage of income meningdikasikan
Disposable income / SALES
RESULTS FOR INVESTMENT
Profitability ratio that measures the performance income earned for every dollar invested
Disposable income / TOTAL OWN CAPITAL
EARNINGS PER SHARE
Measuring the amount of dividends payable to shareholders of the company
NET PROFIT / NUMBER OF SHARES OF ISSUED
ACTIVITY RATIO
Financial ratios to evaluate the use of assets of a company by its management
MEASURING THE EFFICIENCY IN THE USE OF A RESOURCE COMPANY WITH RESPECT TO PROFITABILITY
Shows COMPANIES PROFITS TO GET MORE THAN OTHER COMPANIES IN THE SAME RESOURCES
Inventory turns RATIO
Measures the average number of stock sold and in stock for a year
RATES OF SALES / INVENTORY AVERAGE = (RATES OF SALES / (INVENTORY AT BEGINNING OF YEAR-END OF YEAR)
RESPONSIBILITY CENTER: CENTER OF INCOME AND EXPENSES
RESPONSIBILITY CENTER: CENTER OF INCOME AND EXPENSES
Responsibility center is an organization that is led by a manager who is responsible for the activity undertaken. In essence, the company is a collection of centers of responsibility, which is represented by a box on the organizational chart. Responsibility centers then form a hierarchy.
The nature of accountability Answer Center
Center appeared to realize the responsibility of one or more purposes (goals). In this case a company's senior management to determine a number of strategies to achieve goals. Center works to implement the responsibility of the strategy. The ideals of the organization have been achieved if each responsibility center has accomplished his goal.
Picture of how the responsibilities of each center are as follows:
Input Output
Goods of resources or services
used,
measured from
costs
Capital
Responsibility center receives input in the form of: raw materials, labor and services. By using capital for working capital, equipment and other assets, the central responsibility of carrying out certain functions, with the ultimate goal to change inputs into outputs.
Relations between Input and Output
Management is responsible for ensuring the optimal relationship between inputs and outputs. Disejumlah responsibility centers, the relationship between inputs and outputs are reciprocal and direct.
For example: in the production department, in the form of input raw materials become part of finished goods.
Control here focused on the use of minimum inputs required to produce the required output according to specifications and quality standards are correct, timely, and in accordance with the amount requested.
Measuring Input and Output
How to measure the input:
Most of the inputs used by the central responsibility can be expressed in physical measures of work-hours, liters of oil, reams of paper, and kwh of electricity.
In the management control system, the units of quantity are then translated into monetary terms; money is the common denominator that allows the value and variety of diverse resources to be combined and combined.
Value for money from a particular input is usually calculated by multiplying the physical quantity at a price per unit (ie, number of hours worked multiplied by hourly rate).
Monetary amount generated from these calculations are referred to as the "cost". Cost is a monetary measure of the amount of resources used by a central responsibility.
Measuring output is not as easy to measure inputs.
Example: income per year is an important measure of the output of an organization oriented to profit, but does not describe the entire organization's performance during the year.
In a non-profit organizations, perhaps there is no benchmark for a quantitative output. There are some that use an estimate or use substitute numbers (surrogate numbers), but know the limitations of the estimate or replacement numbers are.
Efficiency and Effectiveness
The concept of input, output, and the cost can be used to explain the meaning of efficiency and effectiveness, which are two criteria by which the performance of responsibility centers assessed. The second term is almost always used in a comparison and not in an absolute sense.
Efficiency is the ratio of output to input, or the amount of output per unit of input.
A Responsibility Center is more efficient than accountability Answer Center:
1) if the use amount of resources fewer than the Responsibility Center B, but produce the same amount of output, or
2) use of resources but produce the same amount of output is greater.
The first criterion does not require that the output dikuantitatifkan; but is necessary to assess the output and the second is almost the same unit. Assuming that the central responsibility to satisfactorily carry out the work and the size of each job can be compared, then the units with lower inputs (ie, lower cost) is more efficient.
In the second criterion where the input is the same but with different outputs, then the required number of quantitative measures of output; so is a more difficult calculation.
Effectiveness is determined by the relationship between the output produced by a central responsibility of destination.
The greater the output contributed to the goal, the more efektiflah unit. Effectiveness tends expressed in terms of subjective and nonanalitis-like, "Performance Campus A is the best, but campus B has somewhat decreased in recent years.
Efficiency and effectiveness related to each other; each responsibility center should be effective and efficient. in short, a major responsibility will be efficient if done the right thing, and will be effective when doing things right.
Role Profit
The main purpose of profit-oriented company is to obtain a satisfactory profit. Since profit is the difference between income (output size) and cost (input size), then the profit is a measure of efficiency.
Profit is also an important measure of effectiveness. Thus, the profit is used as a measure of efficiency and effectiveness of profit-oriented companies.
Types of Responsibility Center
There are 4 types of responsibility centers, classified according to the nature of input and / or monetary output was measured for control purposes: revenue center, load centers, profit centers and investment centers.
Revenue Center
At the center of income, an output (ie, income) measured monetarily, but there is no formal effort made to connect the input (ie, the burden or cost) with the output. (If the burden associated with income, then the unit will become a profit center).
In general, income is the central unit of marketing / sales that did not have the authority to set the selling price and is not responsible for the cost of goods sold from the goods they are marketed. Actual sales or orders measured against budgets and quotas, and managers are considered responsible for the burden that occurs directly in the unit, but the main measure is income.
Load Center
Load center is the central responsibility of the input measured monetarily, but the output is not.
There are two common types of load centers:
1. Load Center engineering
2. Load Center policy
Two load center is associated with two types of fees:
1. Engineering costs, ie costs which amount properly and adequately be estimated with reasonable reliability. Examples: factory costs for direct labor, direct materials, components, equipment, and necessities.
2. Policy costs (the cost of managed) are not available cost estimation technique. In the center of policy burdens, the costs incurred depending on management assessment of sufficient numbers in certain circumstances.
Burden Center for Engineering
The Center has the characteristics:
1. input-input can be measured in monetary
2. input-input can be measured physically
3. optimum amount of dollars and inputs required to produce one unit of output can be determined.
Load center techniques usually found in manufacturing operations. Warehousing, distribution, shipping by truck, and similar units in the marketing organization biases classified into the load center techniques.
Load Center Technical Chart
Relationship Example
optimal
be determined
Input Output Work Function
(dollars) (physical) Manufacturing
Burden Center for Policy
Load Center policy units include administrative and support (such as accounting, law, industrial relations, public relations, human resources), R & D operations, and almost all activities of the center pemasaran.Output these costs can not be measured monetarily.
In a major policy burden, the difference between budget and actual costs is not a measure of efficiency. This is only a difference between the budgeted input and actual input and does not include the value of output.
Load Center Exhibit Policy
Relationships
not optimal
be determined
Input Output Work Function
(dollars) (physical) research
and
development
Research and development activities usually have a half-tangible results in the form of patents, new products or new processes.
There is no scientific way to determine the optimum scale of research and development budget. Companies simply use a percentage of average income as a basis.
Performance measurement R & D activities, the information through progress reports (progress reports), and became the basis for management to make judgments about the effectiveness of the project.
Revenue Center Exhibit
Input not
related
with output
Input Output Work Function
(dollars only for the (dollar marketing
costs Revenue)
Direct)
There are two types of activities under the marketing center, which control different from one another:
1. Activity logistics / order fulfillment / logistics order
The activities include: transportation to distribution centers, warehousing, shipping and delivery, submission of accounts and activities related to credit and billing functions of accounts receivable.
Responsibility centers that perform these functions are fundamentally similar to the load centers in the plant. To reflect the costs at various volume levels can be controlled through the application of standards and adjust your budget. For example: work documents covering the activities of logistics and billing accounts receivable can be completed quickly and at low cost through the Internet.
2. Marketing activities / search order
The activities include test marketing; formation, training, and supervision of sales personnel (sales force); advertising, and promotion penjualan.Untuk evaluate the effectiveness of marketing activities more difficult. Because it is unknown how exactly the optimal amount to be issued, then the search costs orders can not be measured from the target cost, but based on sales targets.
Profit Center Exhibit
Input not
related
with output
Business Unit Input Output
(dollars (dollars
costs) profit)
Investment Center Exhibit
Input
related
capital
used
Input Output Capital business unit
(dollars are used (dollars
costs) profit)
The following management control system to load centers in general policy.
The characteristics of general control:
- Preparation of Budget
Management made the decision to the central budget burdens separate policy from the load center techniques. Furthermore, management determines whether a proposed operating budget to reflect the cost per unit of execution of tasks efficiently. In essence, the management burden of the central budget to formulate a policy to determine the amount of work to be done.
- Variation Fee
In making budget policy for the load center, the managers tend to agree with the changes associated with changes in the anticipated sales volume. For example, let add labor if sales volume went up, and to reduce the workforce if sales volumes are declining.
- Types of Financial Control
Financial control in the load center is the policy aims to control costs by including the managers to participate in the planning, discuss what steps taken, and what level of effort appropriate to each. So, in the load center policy, financial control became the main thing discussed at the planning stage before the costs occurred.
- Performance Measurement
Load center managers have the primary job policies to achieve output of a number of diinginkan.Membelanjakan "on budget" this is considered satisfactory; amount in excess of the budget is cause for concern, while significantly less than the budget indicates that the planned work was not finished implemented.
In the center of policy burdens, the financial statements is not a tool for evaluating the efficiency of a manager....
Responsibility center is an organization that is led by a manager who is responsible for the activity undertaken. In essence, the company is a collection of centers of responsibility, which is represented by a box on the organizational chart. Responsibility centers then form a hierarchy.
The nature of accountability Answer Center
Center appeared to realize the responsibility of one or more purposes (goals). In this case a company's senior management to determine a number of strategies to achieve goals. Center works to implement the responsibility of the strategy. The ideals of the organization have been achieved if each responsibility center has accomplished his goal.
Picture of how the responsibilities of each center are as follows:
Input Output
Goods of resources or services
used,
measured from
costs
Capital
Responsibility center receives input in the form of: raw materials, labor and services. By using capital for working capital, equipment and other assets, the central responsibility of carrying out certain functions, with the ultimate goal to change inputs into outputs.
Relations between Input and Output
Management is responsible for ensuring the optimal relationship between inputs and outputs. Disejumlah responsibility centers, the relationship between inputs and outputs are reciprocal and direct.
For example: in the production department, in the form of input raw materials become part of finished goods.
Control here focused on the use of minimum inputs required to produce the required output according to specifications and quality standards are correct, timely, and in accordance with the amount requested.
Measuring Input and Output
How to measure the input:
Most of the inputs used by the central responsibility can be expressed in physical measures of work-hours, liters of oil, reams of paper, and kwh of electricity.
In the management control system, the units of quantity are then translated into monetary terms; money is the common denominator that allows the value and variety of diverse resources to be combined and combined.
Value for money from a particular input is usually calculated by multiplying the physical quantity at a price per unit (ie, number of hours worked multiplied by hourly rate).
Monetary amount generated from these calculations are referred to as the "cost". Cost is a monetary measure of the amount of resources used by a central responsibility.
Measuring output is not as easy to measure inputs.
Example: income per year is an important measure of the output of an organization oriented to profit, but does not describe the entire organization's performance during the year.
In a non-profit organizations, perhaps there is no benchmark for a quantitative output. There are some that use an estimate or use substitute numbers (surrogate numbers), but know the limitations of the estimate or replacement numbers are.
Efficiency and Effectiveness
The concept of input, output, and the cost can be used to explain the meaning of efficiency and effectiveness, which are two criteria by which the performance of responsibility centers assessed. The second term is almost always used in a comparison and not in an absolute sense.
Efficiency is the ratio of output to input, or the amount of output per unit of input.
A Responsibility Center is more efficient than accountability Answer Center:
1) if the use amount of resources fewer than the Responsibility Center B, but produce the same amount of output, or
2) use of resources but produce the same amount of output is greater.
The first criterion does not require that the output dikuantitatifkan; but is necessary to assess the output and the second is almost the same unit. Assuming that the central responsibility to satisfactorily carry out the work and the size of each job can be compared, then the units with lower inputs (ie, lower cost) is more efficient.
In the second criterion where the input is the same but with different outputs, then the required number of quantitative measures of output; so is a more difficult calculation.
Effectiveness is determined by the relationship between the output produced by a central responsibility of destination.
The greater the output contributed to the goal, the more efektiflah unit. Effectiveness tends expressed in terms of subjective and nonanalitis-like, "Performance Campus A is the best, but campus B has somewhat decreased in recent years.
Efficiency and effectiveness related to each other; each responsibility center should be effective and efficient. in short, a major responsibility will be efficient if done the right thing, and will be effective when doing things right.
Role Profit
The main purpose of profit-oriented company is to obtain a satisfactory profit. Since profit is the difference between income (output size) and cost (input size), then the profit is a measure of efficiency.
Profit is also an important measure of effectiveness. Thus, the profit is used as a measure of efficiency and effectiveness of profit-oriented companies.
Types of Responsibility Center
There are 4 types of responsibility centers, classified according to the nature of input and / or monetary output was measured for control purposes: revenue center, load centers, profit centers and investment centers.
Revenue Center
At the center of income, an output (ie, income) measured monetarily, but there is no formal effort made to connect the input (ie, the burden or cost) with the output. (If the burden associated with income, then the unit will become a profit center).
In general, income is the central unit of marketing / sales that did not have the authority to set the selling price and is not responsible for the cost of goods sold from the goods they are marketed. Actual sales or orders measured against budgets and quotas, and managers are considered responsible for the burden that occurs directly in the unit, but the main measure is income.
Load Center
Load center is the central responsibility of the input measured monetarily, but the output is not.
There are two common types of load centers:
1. Load Center engineering
2. Load Center policy
Two load center is associated with two types of fees:
1. Engineering costs, ie costs which amount properly and adequately be estimated with reasonable reliability. Examples: factory costs for direct labor, direct materials, components, equipment, and necessities.
2. Policy costs (the cost of managed) are not available cost estimation technique. In the center of policy burdens, the costs incurred depending on management assessment of sufficient numbers in certain circumstances.
Burden Center for Engineering
The Center has the characteristics:
1. input-input can be measured in monetary
2. input-input can be measured physically
3. optimum amount of dollars and inputs required to produce one unit of output can be determined.
Load center techniques usually found in manufacturing operations. Warehousing, distribution, shipping by truck, and similar units in the marketing organization biases classified into the load center techniques.
Load Center Technical Chart
Relationship Example
optimal
be determined
Input Output Work Function
(dollars) (physical) Manufacturing
Burden Center for Policy
Load Center policy units include administrative and support (such as accounting, law, industrial relations, public relations, human resources), R & D operations, and almost all activities of the center pemasaran.Output these costs can not be measured monetarily.
In a major policy burden, the difference between budget and actual costs is not a measure of efficiency. This is only a difference between the budgeted input and actual input and does not include the value of output.
Load Center Exhibit Policy
Relationships
not optimal
be determined
Input Output Work Function
(dollars) (physical) research
and
development
Research and development activities usually have a half-tangible results in the form of patents, new products or new processes.
There is no scientific way to determine the optimum scale of research and development budget. Companies simply use a percentage of average income as a basis.
Performance measurement R & D activities, the information through progress reports (progress reports), and became the basis for management to make judgments about the effectiveness of the project.
Revenue Center Exhibit
Input not
related
with output
Input Output Work Function
(dollars only for the (dollar marketing
costs Revenue)
Direct)
There are two types of activities under the marketing center, which control different from one another:
1. Activity logistics / order fulfillment / logistics order
The activities include: transportation to distribution centers, warehousing, shipping and delivery, submission of accounts and activities related to credit and billing functions of accounts receivable.
Responsibility centers that perform these functions are fundamentally similar to the load centers in the plant. To reflect the costs at various volume levels can be controlled through the application of standards and adjust your budget. For example: work documents covering the activities of logistics and billing accounts receivable can be completed quickly and at low cost through the Internet.
2. Marketing activities / search order
The activities include test marketing; formation, training, and supervision of sales personnel (sales force); advertising, and promotion penjualan.Untuk evaluate the effectiveness of marketing activities more difficult. Because it is unknown how exactly the optimal amount to be issued, then the search costs orders can not be measured from the target cost, but based on sales targets.
Profit Center Exhibit
Input not
related
with output
Business Unit Input Output
(dollars (dollars
costs) profit)
Investment Center Exhibit
Input
related
capital
used
Input Output Capital business unit
(dollars are used (dollars
costs) profit)
The following management control system to load centers in general policy.
The characteristics of general control:
- Preparation of Budget
Management made the decision to the central budget burdens separate policy from the load center techniques. Furthermore, management determines whether a proposed operating budget to reflect the cost per unit of execution of tasks efficiently. In essence, the management burden of the central budget to formulate a policy to determine the amount of work to be done.
- Variation Fee
In making budget policy for the load center, the managers tend to agree with the changes associated with changes in the anticipated sales volume. For example, let add labor if sales volume went up, and to reduce the workforce if sales volumes are declining.
- Types of Financial Control
Financial control in the load center is the policy aims to control costs by including the managers to participate in the planning, discuss what steps taken, and what level of effort appropriate to each. So, in the load center policy, financial control became the main thing discussed at the planning stage before the costs occurred.
- Performance Measurement
Load center managers have the primary job policies to achieve output of a number of diinginkan.Membelanjakan "on budget" this is considered satisfactory; amount in excess of the budget is cause for concern, while significantly less than the budget indicates that the planned work was not finished implemented.
In the center of policy burdens, the financial statements is not a tool for evaluating the efficiency of a manager....
Destination Transaction Analysis
Destination Transaction Analysis
Analysis of the transaction is an early stage that must be done prior to recording. There are three things that must be done in transaction analysis, which identifies: a. Is the transaction a financial transaction. Transactions are classified as financial transactions if the transaction affects the position of assets, debt, and capital.
b. Which accounts are affected, increases or decreases, debited or credited.
c. How much value will be recorded.
Sample analysis of the transaction analysis of purchase invoices of goods, evidence of the transfer slip, proof of cash receipts and disbursements. Purpose transaction analysis is meant to determine which accounts are suitable for didebetkan and / or credited....
Analysis of the transaction is an early stage that must be done prior to recording. There are three things that must be done in transaction analysis, which identifies: a. Is the transaction a financial transaction. Transactions are classified as financial transactions if the transaction affects the position of assets, debt, and capital.
b. Which accounts are affected, increases or decreases, debited or credited.
c. How much value will be recorded.
Sample analysis of the transaction analysis of purchase invoices of goods, evidence of the transfer slip, proof of cash receipts and disbursements. Purpose transaction analysis is meant to determine which accounts are suitable for didebetkan and / or credited....
FOR ECONOMIC ANALYSIS OF DECISION
FOR ECONOMIC ANALYSIS OF DECISION
In production systems, functions and roles to be performed by a manager is to take decisions on matters relating to the alternatives of action that must be implemented by the production process. Several factors present in real conditions tend to increase the degree of difficulty and complexity of decisions to make, sort of:
• Factors of uncertainty about the future conditions, which it often brings difficulty in determining the form of potential and installed production capacity to be realized.
• The need to consider various criteria that must be met, such as quantity, quality, cost and so on.
• The pressures associated with the speed of decision-making time, which is often this will result in inappropriate decisions / thorough and far beyond the expectations exist.
• The conflicts that occur and that arise due to the diversity of opinion or pandangn / opinions of various parties involved in the decision-making process. This sort of thing happens because of differences in background and interests of various parties in seeing the problems to be resolved / decided.
Despite many difficulties and obstacles that must be faced, management can not not have to do studies, anaisis, followed by evaluation and decision making. Any problems encountered and must be solved, must first be analyzed and developed alternatives feasibility, both technically and economically, to then decide the most appropriate.
A draft or proposal of the projects, will be evaluated erdasarkan technical efficiency (physical) and economic efficiency. Technical efficiency is generally formulated as follows:
On the other hand, although economic efficiency is expressed as a ratio of output per input, but in this case is expressed in units of the economic units (money). General formulation as follows:
7.1 CYCLE FLOW OF MONEY (CASH FLOW) IN THE PRODUCTION PROCESS
The production process is always described as a process of metamorphosis (transformation) of the raw materials into finished products. From the flow of money, production systems must be able to convert the funds invested in the form of Long Term Assets atupuun working capital into finished products or services that can satisfy the demands (fever) there. The smooth production process, which is measured by effectiveness, efficiency and productivity of work, cycles will be able to facilitate the flow velocity of money (cash flow) that exists. Surely here is not only an efficient depends only production but also be determined by the smoothness of the process of marketing or product sales output.
Once the output sold, it happened once again the process of transformation of products / services into "cash" (cash) in the form of receipt or payment (revenue), which then flows back to a range of needs such as the following inivestasi for depreciation or the need to add capacity production (expansion) and operating costs. If there are remaining revenue, after deducting the total production costs (Fixed Costs + Variable Costs), then this would be an advantage (profit) company which in this case would be allocated for tax and divedends (profits distributed to owners of separation company).
7.2 CLASSIFICATION AND PRODUCTION COST STRUCTURE
In order to carry out the analysis and evaluation of alternatives related to the projects (products, services, processes or work facilities), it would require the ability to be able to identify the type and cost of existing types. To clarify the costs that must be spent in production activities, the following describes some types of common costs:
• Initial and Operating Costs. Start-up costs (first cost) is that expenses must be incurred prior to the beginning of the production activities carried out. These costs will usually be used to purchase machinery (production facility), installations, buildings and so on. This start-up costs tend to be large and have a strategic value that includes the long-term time dimension (long term). To get back the invested capital (investment), then it can be done through the cost of depreciation (Depreciation cost) whose magnitude will depend on the depreciation calculation method applied. Cost of origin issued only once for each of assets invested. Further costs are routinely incurred hahrus / periodic be classified in the form of operational and maintenance costs (operating and maintenance costs).
• Cost Direct and Indirect Costs. Direct costs (direct costs) are costs that can be directly identified with a particular production process or product output (production output) is produced. For example here includes the costs of direct materials, components, direct labor, and so on. Here, the cost will be calculated in detail for each unit of output produced products. The same thing as energy, supplies, utilities and other overheads cost items that can be linked directly with the department or a particular facility.
Whereas indirect costs (indirect costs) in this case can not be identified with a particular product or process. Cost for lighting, air conditioning, telephone, indirect materials / labor and so in this case could not be calculated detaol for each unit of output produced.
• Fixed Costs and Costs Not Fixed. In many cases the decision-making with respect to cost as one benchmark, often the decision will be based on production volume that must be fulfilled within a certain period. In connection with this analysis needs to known and identified the so-called fixed costs (fixed cost) and cost is not fixed (variable cost).
Costs associated with the operation of fasililtas-production facilities within a specific period in which the costs are relatively fixed / constant for the production activity took place and no matter the amount or volume of production the resulting known as fixed costs or fixed costs. For example the cost of depreciation, taxes, insurance, mortgage interest, rent buildings / equipment, indirect costs or overhead costs.
Further direct costs such as direct material cost, direct labor cost and the cost of packing (packaging) of this magnitude will tend to "stay" perunit output. These costs generally referred to as "unit variable cost"; where the total cost is total variable cost will depend on the amount or vary with the amount / volume of production.
Total Cost = Total Fixed Cost + Total Variable Cost
(TC) (TFC) (TVC)
When the cost of production or manufacturing cost (manufacturing cost) per unit of product to be known, then this can be obtained by the following formula:
Production Cost per unit Total Cost of Production
(USD / unit) Amount / produced by Production Volume
7.3 DEPRECIATION OF AN ECONOMIC ASSET VALUE (Depreciation)
Definitively, depreciation / depreciation can be expressed as berkutangnya value (value) of a "physical assets" such as machinery, production equipment, factory buildings, and other elements with increasing use of these assets. In the case in shrinkage can be classified in the form:
• Physical Depreciation (physical Depreciation)
• Depreciation of work function (functional Depreciation)
• Depreciation of the economic value / accounting (accounting Depreciation)
Depreciation is defined as a reduction in physical shape, size or physical dimensions of asset due to usage. A simple example of this can be seen on the wear occurs on the bearing (bearing) which arise as a result of friction, thinning thick boiler tubes due to corrosion, and so on. Penyusustan work function is defined as a reduction in work function and usefulness of an asset, which in this case was not caused by a decrease in physical ability, but because of changes in demand / needs (demand) that is technically and economically feasible asset is no longer applied. For example, a decrease of new technology that caused peralatanproduksi or automatically operated equipment which will cause long been a no longer economical to operate. While accounting penyusustan will analyze the reduced value of the dollar value measure (USD).
Depreciation or depreciation size will depend on the method applied menyusutan. With the selected method, the depreciation cost of adjustable constant per year or greater are made in the first years and continued to decline (small) in the following years. Main reason of depreciation for the year was made earlier are as follows
• Providing protection against the risk of an asset usangnya rapid innovation due to the fast growing technology.
• Depreciation large ditahun early withdrawal will accelerate all the costs incurred for such investments as the asset is still in its peak performance, in addition to the tax-relief to be paid.
To determine the amount of depreciation costs, there are 4 (four) common method was applied, namely:
• straight-line depreciation method (straight line Depreciation method)
• the number of digits method of depreciation (sum of the year digits Depreciation method)
• declining balance depreciation method (declining balance method Depreciation)
• reduced funding depreciation method (Depreciation sinking fund method)
Before the calculation of depreciation costs must first be obtained data relating to:
• initial costs (cost + installation cost) of assets (P)
• Estimated value of assets sold on tahunke-N or commonly known as "salvage value" (S)
• Age indicates the length of productive assets is to be operated economically (N)
7.3.1 STRAIGHT-LINE DEPRECIATION METHOD (STRAIGHT LINE METHOD Depreciation)
This method provides the possibility to shrink the value of an asset at a constant rate of depreciation during the period took place. Depreciation costing formulation can be stated as follows:
P = initial cost (USD)
S = Salvage value (USD)
N = Period of depreciation
Example:
Initial value of an asset is Rp 40.000.000, - and setimasi its salvage value Rp 10.000.000, -. Depreciation period for 5 years, the cost of depreciation each year is:
= 1 / 5 (Rp 40.000.000, - - Rp 10.000.000, -)
= Rp 6.000.000, --
Year Cost Depreciation
Book Value per year on
end
0
1
2
3
4
5 --
6,000,000
6,000,000
6,000,000
6,000,000
6,000,000 USD 40,000,000
USD 34,000,000
USD 28,000,000
USD 22,000,000
USD 16,000,000
Rp 10.000.000
7.3.2 ASSET DEPRECIATION METHOD METHOD WITH SUM OF YEAR Digits
This method will calculate the cost of depreciation (depreciation) in a given year bebrdasarkan digit ratio that year with the number of digit years (sum of year digits) where applicable depreciation period. SOYD method will provide the possibility of the value of an asset will continue to decrease in the rate of certain reductions. The amount of depreciation can be calculated based on the formulation as follows:
Year Cost Depreciation
Book Value per year on
end
0
1
2
3
4
5 --
10,000,000
8,000,000
6,000,000
4,000,000
2.000.000 Rp 40,000,000
IDR 30,000,000
USD 22,000,000
USD 16,000,000
USD 12,000,000
Rp 10.000.000
7.3.3 BALANCE DEPRECIATION METHOD DECREASING (Declining Depreciation BALANCE METHOD)
This method will result in depreciation costs in large numbers in the early years and then rapidly in the period according to the following year. The amount of depreciation in this case is calculated based on the percentage teretentu / face-to book value of assets in the year prior to the desired depreciation. The formula calculating the annual depreciation charge in this case stated sepereti follows:
where:% R = the desired percentage of depreciation per year
BVn-1 = book value in year n-1 (n = 1, 2, ..., N)
Year Cost Depreciation
Book Value per year on
end
0
1
2
3
4
5 --
0.25 x 40,000,000 = 10,000,000
0.25 x 30,000,000 = 7,500,000
0.25 x 22,500,000 = 5,625,000
0.25 x 16,875,000 = 4,218,000
(12,656,250 -10,000,000) = 2,656,000 IDR 40,000,000
IDR 30,000,000
USD 22,500,000
USD 16,875,000
USD 12,656,000
Rp 10.000.000
Note:
In the case above% R = 25% per year. Depreciation costs for the period to 5 in this case does not follow the formula / method defined, because in this case bound to estimate the value of salvage value of Rp 10.000.000, -.
In this method, the determination of shrinkage percentage (% R) is based on setimasi will cause incompatibility with the depreciation of the asset salvage value at the end of the period of depreciation. To be precise, the determination of% R in this case can be determined according to the following formulation:
it is thus in the case above, R-dilai% would be:
= 24.22%
7.3.4 DEPRECIATION FUND DECREASED METHOD (METHOD Depreciation Sinking Fund)
In this method the value of an asset will be reduced by the continued depreciation rate increase. This Dalammetode of interest (interest) the bank will take into account the consequences of the changes ebagai money value in accordance with the function of time (Time Value of Money). Based on this method, the annual depreciation is the sum total of the amount invested in asset values in the "sinking fund" at the end of the year from the amount of interest earned during the year. The formula for this method are as follows:
As an example of the above questions, then:
= USD 4,031,400
With regard to the interest rate (i = 20%), the annual depreciation is:
AD1 = Rp 4,031,400, --
AD2 = Rp 4,031,400, - + 20% x Rp 4,031,400, --
= Rp 4,837,600, --
Year Cost Depreciation
Book Value per year on
end
0
1
2
3
4
5 --
4,031,400
4,834,600
5,805,200
6,966,300
8,359,000 USD 40,000,000
USD 35,968,600
USD 31,131,000
USD 25,325,800
USD 18,359,500
Rp 10.000.000
7.4 ANALYSIS OF POINT HOME (BREAK EVEN ANALISYS)
Titk home Anilisa principal is a general economic analysis applied in the decision-making process. In analyzing the point home crow, have to overlook things like the following:
• Condition of the future related to changes in the level of certainty needs (assumed to be constant fever)
• Value for money will not change over the period of time running (Time value of Money)
To perform the calculation analysis, then it can be seen from the following relationships are:
Fortunately (profit) or loss (loss) (Z) = Total Revenue (TC) - Total Cost (TC)
When the Z value is positive, the favorable conditions that will be found. Conversely if Z value is negative, then the losses incurred. Thus begins this relationship can be further analysis as follows:
[Total Revenue] = [Total Cost]
(TR) (TC)
Selling price per Number of output Variable Cost Total Cost Total Output
Home production product unit remains (TFC) per unit of production output return
(P) principal (NBEP) (V) principal (NBEP)
With slight modifications the above formula can be made as follows:
NBEP =
Number of output Total Fixed Costs
production of the selling price per home - Variable Cost
main (NBEP) product units per unit of product
The difference between the P - V is called by the term "contribution per unit of output". From this analysis found the assumptions and limitations are as follows:
• The selling price per unit of product (unit price) or P will always be constant, regardless of the number of units of output that can be sold. In real conditions, the unit price will depend on the law of supply existing demand.
• variable cost per unit of output (V) is also considered constant. No matter how much the amount of output sold, here is not known a discounted price (discount price).
• Assumption P and V values are constantly providing new assumption that all costs associated with the (cost) or revenue (cost) would be linear).
• Analysts can only be applied to analyze the production facility that produces products for a single service (single output).
Next we will discuss the production activities that have been implemented in a manufacturing industry with the knowledge of the following data:
• Total fixed costs TFC = Rp 90.000.000 -/tahun
• The total variable cost TVC = USD 192,000,000, -/tahun
• The number of products manufactured / sold was for 12,000 units / year
• Total revenue from the sale of 12,000 units of these products is the TR = Rp 240,000,000, --
So the profit or loss will be obtained is:
Z = TR - (TFC + TVC)
Z = USD 240.000.000/th - (USD 9.000.000/th + USD 192.000.000/th)
= - Rp 42,000,000, -/th
Since Z is negative (-), then clearly state that there is a loss.
a) Pressing / lower Total Fixed Costs (TFC)
Step down the amount TFC prices can be done with the road:
• Reduce costs penyusustan (depreciation) is by using a specific depreciation method or enlarge the period of depreciation.
• Pressing the costs of promotion, advertising or other expanses sales.
• Implement cost savings, other overhead costs such as indirect costs, etc..
To find out how much the maximum total fixed costs in order to provide conditions of possibility of profit analysis can be done with BE. As we all know the terms achieved break even condition is biia Z = 0, so that TR = TC or TFC + TVC. In other words, the relationship can be obtained:
TFC = TR - TVC
TFC = USD 240,000,000, -/th - USD 192,000,000, -/th
TFC = USD 48,000,000, -/th
From the calculation results can be concluded that if the production process and the benefits desired in other words is assumed to remain the same, then the total fixed cost (TFC) should be suppressed less than USD 48,000,000.
b) Pressing / Lower Variable Cost per unit of output or unit cost variable (V)
Step down unit cost variable (V) can be implemented by:
• Implement improvements to the working procedures of standards or other working systems so that production processes can be implemented more effectively and more efficiently.
• Selecting materials that are cheaper, and easier / faster to produce, raise the technological level of production process by selecting a machine or production facilities are more productive options that can reduce the cost of direct labor (direct labor cost), energy saving and so on .
To find out how many units the maximum cost variables that can be tolerated so that the production process can be profitable, then the same way can be evaluated through the analysis of the calculation as follows:
Of the existing problems and obtained information that:
Unit Variable Cost = Total Variable Cost (TVC)
Volume products produced
V = USD 192.000.000/th = USD 16.000/unit
12,000,000 units / year
Clearly, in order to obtain an advantage in this case the unit variable cost (V) must be emphasized less than Rp 16.000, -. From the analysis, where the terms Z = 0 must be fulfilled, obtained the following relationship:
TR = TC
TR = TFC + TVC = TFC + ON
V = Rp 12.500, -/unit Yr
c) Raise the Price perunit or Unit Cost Items Price (P)
Although measures to raise the selling price is not an easy alternative to implement, but nevertheless it remains a pikihan can be taken by management in order to prevent themselves from losses. Based on the information data, obtained that:
Total Revenue (TR) = USD $ 240,000,000, -/tahun
where TR = P x N
Price = Total Revenue (TR)
Volume Sold Items (N)
P = Rp 240,000,000, -/tahun = Rp 20.000, -/unit Yr
12.000/unit/tahun
Obviously with P = Rp 20,000, will cause losses -/unit Yr because here TR
Z = 0; TR = TC or
P.N = TFC + NV
P = TFC + V
N
P = Rp 90.000.000 -/th + Rp 16.000, -/unit Yr
12,000 units / year
P = Rp 23.500, -/unit Yr
d) Increasing Number or Volume Unit Output (N) who made / sold
This step enables management to increase the amount of production output as much as possible (in accordance with the capacity terpasangnya) without worrying about these things can affect the total fixed cost (TFC). The greater the volume of production is produced, then the contribution of fixed cost per unit of output will be smaller. This course will be able to push the total to calculate the end. Back again to the concept of BE analysis stated in the previous pages, the basic formulation obtained as follows:
Number of output Total Fixed Costs
production of the selling price per home - Variable Cost
main (NBEP) product units per unit of product
NBEP =
From the results of calculations can be concluded that if you want to make profit, the amount / volume of product to be made should be increased more for 22,500 units / year. When N = 22,500 units / year this will lead only to reach break-even condition.
7.5. ENGINEERING ECONOMIC ANALYSIS (ENGINEERING ECONOMY ANALISYS)
Many projects engineering (engineering) that in reality there are often faced with alternative choices such as design, procedures, methods, and so on. Economic aspect has to do with the investment (fixed cost) is required, operational costs should be dikelarkan, overhead cost and others. Economic analysis techniques (engineering economy analisys) in this case will compare the differences of alternatives in this engineering project economic value of dinyatakandalam amount of money (cost). The best alternative would provide the smallest cost (economical).
7.5.1 PROCEDURE FOR EVALUATION & DETERMINATION PROJECT ALTERNATIVE TECHNIQUE AND problem
In evaluating the technical projects (engineering project) in order to determine the best alternative to be proposed, then the following procedure can be taken:
a) These alternatives should be clearly formulated before compared to one another. Here, each alternative must be equal or equivalent; in the sense that no significant in terms of functionality / usability, technical specifications and so on. Evaluation and determination of alternatives can only be done at least there are 2 (two) possibilities that might be proposed.
b) Any decision taken must also membari consideration to the consequences or impact that will happen later.
c) Further evaluation and / or decisions taken should be reviewed to satisfy the interests of whom? Is the interest of the project owners or the public / consumers generally? Analysis of BCR (Benefit Cost Ratio) is one way to assess this.
d) For each analysis and economic decisions are taken, then the money - as an economic unit the unit will be applied as the main benchmark. Here the differences are expressed in units appropriate physical units, and units of physical force is converted in units of the applicable unit of currency (USD or $).
e) There should be criteria in making decisions clearly. The main criteria for selection of the best alternative in this case lies in the alternative capable of using all available resources effectively and efficiently.
Problem evaluation and alternative selection of engineering projects, many of us have encountered in the form:
• Alternatives for the plant site selection
• Alternatives for the election of power generation (diesel power, hydropower, power plant, nuclear plants, etc.) and its procurement policies.
• And others.
7.5.2 THE CONCEPT OF INTEREST LOANS (INTEREST)
Term rates may be interpreted as rental value of borrowing some money for a certain time. Also of interest is defined as the rate of return (rate of return) of the amount of money invested. Some money comes from their own or borrowed (individual stocks, banks or other financial institutions), then the owner of the money would usually expect a "compensation" to the conditions in which the owner will not be able to use the money within a certain time period. In the cost analysis, this compensation will be calculated as one element of cost (cost), where the size of interest (interest) will be influenced by factors such as:
• Risks not return the money invested / borrowed for a variety of things such as losses, inflation and so on.
• The influence of the law of demand and supply (supply-demand) is associated with the funds for loans.
• overhead costs that must be paid for keeping clection book fees, and other administrative costs as well besides the length of the loan period.
• The rules are created / set by the government related to a specified amount of interest. For example in Indonesia, much interest will langnsung controlled by Bank Indonesia.
7.5.3 TYPE-TYPES OF INTEREST AND METHOD application
Interest rates are always expressed per year, unless there is another provision, when it states:
i = 18% / year
i = 1.8% / month
i = 4.5% / tri wulan
i = 9% / ½ years
So the statement above would have the same understanding. In a simple interest when considered as a sum of money received as a result of capital investment, then this will be interpreted as a gain (profit). Conversely, when interest is expressed as a sum of money received as rental payments (rental fee) from the loan money, then it could be interpreted as cost (cost).
7.5.4 CHANGES IN THE VALUE OF MONEY BECAUSE OF TIME AND DO THE INTEREST RATE
As already explained earlier that the money will have a specific interest rate when implanted in a specific time period. The relationship between interest and this time will bring us to the concept of change in the value of money within a specific time (Time Value of Money). Here the value of money will change according to the function of the time, because when the amount of money borrowed for a certain period, then the amount of money must be paid back next akanlebih than the number who had borrowed it. Difference value of the money paid back and the value of the borrowed money is what we call the interest or interests. In conditions where the interest rate (i)> 0, this will mean the value of money at different times will not be the same.
7.5.5 TYPE-TYPES OF INTEREST AND METHOD application
The amount of interest that must be paid in principle, will depend on 3 things:
• The length of time / rental period (n)
• The amount of fixed interest rate (i%)
• The method is applied to the determination of interest include the simple interest method (single interest) and methods are combined interest (compound interest).
In the single method of interest, the amount of interest here would be proportionately paid to the method of the loan period (n) multiplied by the amount of money borrowed. Simply put it can also be formulated as follows:
I = P.n.i
where P = amount of money saved / invested
i = interest rate (%)
n = period of time the loan during the applicable interest
7.5.6 INFLUENCE OF THE TIME VALUE OF MONEY, INTEREST (INTEREST) and their application ECONOMIC ANALYSIS IN ENGINEERING
Related to the change of the time value of money or interest factors, it is in some way a relationship can be found at the dollar value of past, present or the future by looking at the prevailing interest rates. Symbols / The following notation is then used in solve problems of economic analysis techniques:
i = rate / interest rate per period interest rate applicable (interest rete).
n = period interest rate determined in a certain period if not specifically stated the interest period is generally considered per year.
P = principal amount of money whose value is calculated / dielivalensikan in the future (Present Worth)
F = The amount of money whose value is calculated principal / dielivalensikan in the future (Future Worth) at the end of the period of interest (n). The amount of the value of F is the principal (P) plus the accumulated interest during the rental period.
A = Number of n single payment equal pay row (Uniform Series) done at each end of the period of interest tahnan (Annual Payment or annuity)
Furthermore, to analyze the relationship between P, F and A are expressed in the variables n and i% can be searched by specific formulations which will be explained the application.
a. SINGLE PAYMENT (SINGLE PAYMENT)
Analysis of the calculation here to find out the relationship between P and F value or otherwise set forth in accordance with the variables n and i%. Here the relationship is known formulation as follows:
1) a single payment of multiple factors (Single Payment Compound Amount Factor)
Used to find the price of M where the value of P, n and i% unknown. The formula used is:
F = P (F / P, i%, n) or
F = P (1 + i) n
2) Present Value Factor from Single Payment (Single Payment Present Worth Factor)
Present value factor (Present Worth Factor) is used to find the value of principal (P) where F, n, and i% unknown. Formulation can be written:
P = F (P / F, i%, n) or
P = F
b. PAYMENT IN THE SAME AMOUNT AS Series (respectively) AT EACH END OF YEAR PAYMENT OR ACCEPTANCE (UNIFORM SERIES ANNUAL END OF YEAR PAYMENTS RECEIPT OR)
Calculation analysis was applied here to find out the relationship between an A, C and F are expressed in accordance with the variables n and i%. There are four types of relationships formulations respectively can be explained as follows:
1) factor funds saved / paid in equal numbers in series (The Uniform Series Sinking Fund Factor)
Uniform series used to search for a price when the value of F, n and i% is known, where the formulation can be written as follows:
or A = F (A / F, i%, n)
2) Factors funds / capital absorbed back in the same amount respectively (Uniform Series Capital Recovery Factor)
This method is used to understand the how the money should be withdrawn in the same amount respectively (A) with interest i% during the period is n to fund a number of P that has been invested. Formulation is shown as follows:
Or
, Or A = P [A / P, i%, n]
3) Factor of funds collected from the same payments in a row (Uniform Series Compound Factor)
Used to find out how much money is collected (F) at the end of n-year period for interest payments seriap in the same amount respectively with i% interest rate. Formulation can be explained as follows:
F = A (F / A, i%, n)
4) The value of money now from the same payments in a row (Uniform Series Present Worth Factor)
In production systems, functions and roles to be performed by a manager is to take decisions on matters relating to the alternatives of action that must be implemented by the production process. Several factors present in real conditions tend to increase the degree of difficulty and complexity of decisions to make, sort of:
• Factors of uncertainty about the future conditions, which it often brings difficulty in determining the form of potential and installed production capacity to be realized.
• The need to consider various criteria that must be met, such as quantity, quality, cost and so on.
• The pressures associated with the speed of decision-making time, which is often this will result in inappropriate decisions / thorough and far beyond the expectations exist.
• The conflicts that occur and that arise due to the diversity of opinion or pandangn / opinions of various parties involved in the decision-making process. This sort of thing happens because of differences in background and interests of various parties in seeing the problems to be resolved / decided.
Despite many difficulties and obstacles that must be faced, management can not not have to do studies, anaisis, followed by evaluation and decision making. Any problems encountered and must be solved, must first be analyzed and developed alternatives feasibility, both technically and economically, to then decide the most appropriate.
A draft or proposal of the projects, will be evaluated erdasarkan technical efficiency (physical) and economic efficiency. Technical efficiency is generally formulated as follows:
On the other hand, although economic efficiency is expressed as a ratio of output per input, but in this case is expressed in units of the economic units (money). General formulation as follows:
7.1 CYCLE FLOW OF MONEY (CASH FLOW) IN THE PRODUCTION PROCESS
The production process is always described as a process of metamorphosis (transformation) of the raw materials into finished products. From the flow of money, production systems must be able to convert the funds invested in the form of Long Term Assets atupuun working capital into finished products or services that can satisfy the demands (fever) there. The smooth production process, which is measured by effectiveness, efficiency and productivity of work, cycles will be able to facilitate the flow velocity of money (cash flow) that exists. Surely here is not only an efficient depends only production but also be determined by the smoothness of the process of marketing or product sales output.
Once the output sold, it happened once again the process of transformation of products / services into "cash" (cash) in the form of receipt or payment (revenue), which then flows back to a range of needs such as the following inivestasi for depreciation or the need to add capacity production (expansion) and operating costs. If there are remaining revenue, after deducting the total production costs (Fixed Costs + Variable Costs), then this would be an advantage (profit) company which in this case would be allocated for tax and divedends (profits distributed to owners of separation company).
7.2 CLASSIFICATION AND PRODUCTION COST STRUCTURE
In order to carry out the analysis and evaluation of alternatives related to the projects (products, services, processes or work facilities), it would require the ability to be able to identify the type and cost of existing types. To clarify the costs that must be spent in production activities, the following describes some types of common costs:
• Initial and Operating Costs. Start-up costs (first cost) is that expenses must be incurred prior to the beginning of the production activities carried out. These costs will usually be used to purchase machinery (production facility), installations, buildings and so on. This start-up costs tend to be large and have a strategic value that includes the long-term time dimension (long term). To get back the invested capital (investment), then it can be done through the cost of depreciation (Depreciation cost) whose magnitude will depend on the depreciation calculation method applied. Cost of origin issued only once for each of assets invested. Further costs are routinely incurred hahrus / periodic be classified in the form of operational and maintenance costs (operating and maintenance costs).
• Cost Direct and Indirect Costs. Direct costs (direct costs) are costs that can be directly identified with a particular production process or product output (production output) is produced. For example here includes the costs of direct materials, components, direct labor, and so on. Here, the cost will be calculated in detail for each unit of output produced products. The same thing as energy, supplies, utilities and other overheads cost items that can be linked directly with the department or a particular facility.
Whereas indirect costs (indirect costs) in this case can not be identified with a particular product or process. Cost for lighting, air conditioning, telephone, indirect materials / labor and so in this case could not be calculated detaol for each unit of output produced.
• Fixed Costs and Costs Not Fixed. In many cases the decision-making with respect to cost as one benchmark, often the decision will be based on production volume that must be fulfilled within a certain period. In connection with this analysis needs to known and identified the so-called fixed costs (fixed cost) and cost is not fixed (variable cost).
Costs associated with the operation of fasililtas-production facilities within a specific period in which the costs are relatively fixed / constant for the production activity took place and no matter the amount or volume of production the resulting known as fixed costs or fixed costs. For example the cost of depreciation, taxes, insurance, mortgage interest, rent buildings / equipment, indirect costs or overhead costs.
Further direct costs such as direct material cost, direct labor cost and the cost of packing (packaging) of this magnitude will tend to "stay" perunit output. These costs generally referred to as "unit variable cost"; where the total cost is total variable cost will depend on the amount or vary with the amount / volume of production.
Total Cost = Total Fixed Cost + Total Variable Cost
(TC) (TFC) (TVC)
When the cost of production or manufacturing cost (manufacturing cost) per unit of product to be known, then this can be obtained by the following formula:
Production Cost per unit Total Cost of Production
(USD / unit) Amount / produced by Production Volume
7.3 DEPRECIATION OF AN ECONOMIC ASSET VALUE (Depreciation)
Definitively, depreciation / depreciation can be expressed as berkutangnya value (value) of a "physical assets" such as machinery, production equipment, factory buildings, and other elements with increasing use of these assets. In the case in shrinkage can be classified in the form:
• Physical Depreciation (physical Depreciation)
• Depreciation of work function (functional Depreciation)
• Depreciation of the economic value / accounting (accounting Depreciation)
Depreciation is defined as a reduction in physical shape, size or physical dimensions of asset due to usage. A simple example of this can be seen on the wear occurs on the bearing (bearing) which arise as a result of friction, thinning thick boiler tubes due to corrosion, and so on. Penyusustan work function is defined as a reduction in work function and usefulness of an asset, which in this case was not caused by a decrease in physical ability, but because of changes in demand / needs (demand) that is technically and economically feasible asset is no longer applied. For example, a decrease of new technology that caused peralatanproduksi or automatically operated equipment which will cause long been a no longer economical to operate. While accounting penyusustan will analyze the reduced value of the dollar value measure (USD).
Depreciation or depreciation size will depend on the method applied menyusutan. With the selected method, the depreciation cost of adjustable constant per year or greater are made in the first years and continued to decline (small) in the following years. Main reason of depreciation for the year was made earlier are as follows
• Providing protection against the risk of an asset usangnya rapid innovation due to the fast growing technology.
• Depreciation large ditahun early withdrawal will accelerate all the costs incurred for such investments as the asset is still in its peak performance, in addition to the tax-relief to be paid.
To determine the amount of depreciation costs, there are 4 (four) common method was applied, namely:
• straight-line depreciation method (straight line Depreciation method)
• the number of digits method of depreciation (sum of the year digits Depreciation method)
• declining balance depreciation method (declining balance method Depreciation)
• reduced funding depreciation method (Depreciation sinking fund method)
Before the calculation of depreciation costs must first be obtained data relating to:
• initial costs (cost + installation cost) of assets (P)
• Estimated value of assets sold on tahunke-N or commonly known as "salvage value" (S)
• Age indicates the length of productive assets is to be operated economically (N)
7.3.1 STRAIGHT-LINE DEPRECIATION METHOD (STRAIGHT LINE METHOD Depreciation)
This method provides the possibility to shrink the value of an asset at a constant rate of depreciation during the period took place. Depreciation costing formulation can be stated as follows:
P = initial cost (USD)
S = Salvage value (USD)
N = Period of depreciation
Example:
Initial value of an asset is Rp 40.000.000, - and setimasi its salvage value Rp 10.000.000, -. Depreciation period for 5 years, the cost of depreciation each year is:
= 1 / 5 (Rp 40.000.000, - - Rp 10.000.000, -)
= Rp 6.000.000, --
Year Cost Depreciation
Book Value per year on
end
0
1
2
3
4
5 --
6,000,000
6,000,000
6,000,000
6,000,000
6,000,000 USD 40,000,000
USD 34,000,000
USD 28,000,000
USD 22,000,000
USD 16,000,000
Rp 10.000.000
7.3.2 ASSET DEPRECIATION METHOD METHOD WITH SUM OF YEAR Digits
This method will calculate the cost of depreciation (depreciation) in a given year bebrdasarkan digit ratio that year with the number of digit years (sum of year digits) where applicable depreciation period. SOYD method will provide the possibility of the value of an asset will continue to decrease in the rate of certain reductions. The amount of depreciation can be calculated based on the formulation as follows:
Year Cost Depreciation
Book Value per year on
end
0
1
2
3
4
5 --
10,000,000
8,000,000
6,000,000
4,000,000
2.000.000 Rp 40,000,000
IDR 30,000,000
USD 22,000,000
USD 16,000,000
USD 12,000,000
Rp 10.000.000
7.3.3 BALANCE DEPRECIATION METHOD DECREASING (Declining Depreciation BALANCE METHOD)
This method will result in depreciation costs in large numbers in the early years and then rapidly in the period according to the following year. The amount of depreciation in this case is calculated based on the percentage teretentu / face-to book value of assets in the year prior to the desired depreciation. The formula calculating the annual depreciation charge in this case stated sepereti follows:
where:% R = the desired percentage of depreciation per year
BVn-1 = book value in year n-1 (n = 1, 2, ..., N)
Year Cost Depreciation
Book Value per year on
end
0
1
2
3
4
5 --
0.25 x 40,000,000 = 10,000,000
0.25 x 30,000,000 = 7,500,000
0.25 x 22,500,000 = 5,625,000
0.25 x 16,875,000 = 4,218,000
(12,656,250 -10,000,000) = 2,656,000 IDR 40,000,000
IDR 30,000,000
USD 22,500,000
USD 16,875,000
USD 12,656,000
Rp 10.000.000
Note:
In the case above% R = 25% per year. Depreciation costs for the period to 5 in this case does not follow the formula / method defined, because in this case bound to estimate the value of salvage value of Rp 10.000.000, -.
In this method, the determination of shrinkage percentage (% R) is based on setimasi will cause incompatibility with the depreciation of the asset salvage value at the end of the period of depreciation. To be precise, the determination of% R in this case can be determined according to the following formulation:
it is thus in the case above, R-dilai% would be:
= 24.22%
7.3.4 DEPRECIATION FUND DECREASED METHOD (METHOD Depreciation Sinking Fund)
In this method the value of an asset will be reduced by the continued depreciation rate increase. This Dalammetode of interest (interest) the bank will take into account the consequences of the changes ebagai money value in accordance with the function of time (Time Value of Money). Based on this method, the annual depreciation is the sum total of the amount invested in asset values in the "sinking fund" at the end of the year from the amount of interest earned during the year. The formula for this method are as follows:
As an example of the above questions, then:
= USD 4,031,400
With regard to the interest rate (i = 20%), the annual depreciation is:
AD1 = Rp 4,031,400, --
AD2 = Rp 4,031,400, - + 20% x Rp 4,031,400, --
= Rp 4,837,600, --
Year Cost Depreciation
Book Value per year on
end
0
1
2
3
4
5 --
4,031,400
4,834,600
5,805,200
6,966,300
8,359,000 USD 40,000,000
USD 35,968,600
USD 31,131,000
USD 25,325,800
USD 18,359,500
Rp 10.000.000
7.4 ANALYSIS OF POINT HOME (BREAK EVEN ANALISYS)
Titk home Anilisa principal is a general economic analysis applied in the decision-making process. In analyzing the point home crow, have to overlook things like the following:
• Condition of the future related to changes in the level of certainty needs (assumed to be constant fever)
• Value for money will not change over the period of time running (Time value of Money)
To perform the calculation analysis, then it can be seen from the following relationships are:
Fortunately (profit) or loss (loss) (Z) = Total Revenue (TC) - Total Cost (TC)
When the Z value is positive, the favorable conditions that will be found. Conversely if Z value is negative, then the losses incurred. Thus begins this relationship can be further analysis as follows:
[Total Revenue] = [Total Cost]
(TR) (TC)
Selling price per Number of output Variable Cost Total Cost Total Output
Home production product unit remains (TFC) per unit of production output return
(P) principal (NBEP) (V) principal (NBEP)
With slight modifications the above formula can be made as follows:
NBEP =
Number of output Total Fixed Costs
production of the selling price per home - Variable Cost
main (NBEP) product units per unit of product
The difference between the P - V is called by the term "contribution per unit of output". From this analysis found the assumptions and limitations are as follows:
• The selling price per unit of product (unit price) or P will always be constant, regardless of the number of units of output that can be sold. In real conditions, the unit price will depend on the law of supply existing demand.
• variable cost per unit of output (V) is also considered constant. No matter how much the amount of output sold, here is not known a discounted price (discount price).
• Assumption P and V values are constantly providing new assumption that all costs associated with the (cost) or revenue (cost) would be linear).
• Analysts can only be applied to analyze the production facility that produces products for a single service (single output).
Next we will discuss the production activities that have been implemented in a manufacturing industry with the knowledge of the following data:
• Total fixed costs TFC = Rp 90.000.000 -/tahun
• The total variable cost TVC = USD 192,000,000, -/tahun
• The number of products manufactured / sold was for 12,000 units / year
• Total revenue from the sale of 12,000 units of these products is the TR = Rp 240,000,000, --
So the profit or loss will be obtained is:
Z = TR - (TFC + TVC)
Z = USD 240.000.000/th - (USD 9.000.000/th + USD 192.000.000/th)
= - Rp 42,000,000, -/th
Since Z is negative (-), then clearly state that there is a loss.
a) Pressing / lower Total Fixed Costs (TFC)
Step down the amount TFC prices can be done with the road:
• Reduce costs penyusustan (depreciation) is by using a specific depreciation method or enlarge the period of depreciation.
• Pressing the costs of promotion, advertising or other expanses sales.
• Implement cost savings, other overhead costs such as indirect costs, etc..
To find out how much the maximum total fixed costs in order to provide conditions of possibility of profit analysis can be done with BE. As we all know the terms achieved break even condition is biia Z = 0, so that TR = TC or TFC + TVC. In other words, the relationship can be obtained:
TFC = TR - TVC
TFC = USD 240,000,000, -/th - USD 192,000,000, -/th
TFC = USD 48,000,000, -/th
From the calculation results can be concluded that if the production process and the benefits desired in other words is assumed to remain the same, then the total fixed cost (TFC) should be suppressed less than USD 48,000,000.
b) Pressing / Lower Variable Cost per unit of output or unit cost variable (V)
Step down unit cost variable (V) can be implemented by:
• Implement improvements to the working procedures of standards or other working systems so that production processes can be implemented more effectively and more efficiently.
• Selecting materials that are cheaper, and easier / faster to produce, raise the technological level of production process by selecting a machine or production facilities are more productive options that can reduce the cost of direct labor (direct labor cost), energy saving and so on .
To find out how many units the maximum cost variables that can be tolerated so that the production process can be profitable, then the same way can be evaluated through the analysis of the calculation as follows:
Of the existing problems and obtained information that:
Unit Variable Cost = Total Variable Cost (TVC)
Volume products produced
V = USD 192.000.000/th = USD 16.000/unit
12,000,000 units / year
Clearly, in order to obtain an advantage in this case the unit variable cost (V) must be emphasized less than Rp 16.000, -. From the analysis, where the terms Z = 0 must be fulfilled, obtained the following relationship:
TR = TC
TR = TFC + TVC = TFC + ON
V = Rp 12.500, -/unit Yr
c) Raise the Price perunit or Unit Cost Items Price (P)
Although measures to raise the selling price is not an easy alternative to implement, but nevertheless it remains a pikihan can be taken by management in order to prevent themselves from losses. Based on the information data, obtained that:
Total Revenue (TR) = USD $ 240,000,000, -/tahun
where TR = P x N
Price = Total Revenue (TR)
Volume Sold Items (N)
P = Rp 240,000,000, -/tahun = Rp 20.000, -/unit Yr
12.000/unit/tahun
Obviously with P = Rp 20,000, will cause losses -/unit Yr because here TR
Z = 0; TR = TC or
P.N = TFC + NV
P = TFC + V
N
P = Rp 90.000.000 -/th + Rp 16.000, -/unit Yr
12,000 units / year
P = Rp 23.500, -/unit Yr
d) Increasing Number or Volume Unit Output (N) who made / sold
This step enables management to increase the amount of production output as much as possible (in accordance with the capacity terpasangnya) without worrying about these things can affect the total fixed cost (TFC). The greater the volume of production is produced, then the contribution of fixed cost per unit of output will be smaller. This course will be able to push the total to calculate the end. Back again to the concept of BE analysis stated in the previous pages, the basic formulation obtained as follows:
Number of output Total Fixed Costs
production of the selling price per home - Variable Cost
main (NBEP) product units per unit of product
NBEP =
From the results of calculations can be concluded that if you want to make profit, the amount / volume of product to be made should be increased more for 22,500 units / year. When N = 22,500 units / year this will lead only to reach break-even condition.
7.5. ENGINEERING ECONOMIC ANALYSIS (ENGINEERING ECONOMY ANALISYS)
Many projects engineering (engineering) that in reality there are often faced with alternative choices such as design, procedures, methods, and so on. Economic aspect has to do with the investment (fixed cost) is required, operational costs should be dikelarkan, overhead cost and others. Economic analysis techniques (engineering economy analisys) in this case will compare the differences of alternatives in this engineering project economic value of dinyatakandalam amount of money (cost). The best alternative would provide the smallest cost (economical).
7.5.1 PROCEDURE FOR EVALUATION & DETERMINATION PROJECT ALTERNATIVE TECHNIQUE AND problem
In evaluating the technical projects (engineering project) in order to determine the best alternative to be proposed, then the following procedure can be taken:
a) These alternatives should be clearly formulated before compared to one another. Here, each alternative must be equal or equivalent; in the sense that no significant in terms of functionality / usability, technical specifications and so on. Evaluation and determination of alternatives can only be done at least there are 2 (two) possibilities that might be proposed.
b) Any decision taken must also membari consideration to the consequences or impact that will happen later.
c) Further evaluation and / or decisions taken should be reviewed to satisfy the interests of whom? Is the interest of the project owners or the public / consumers generally? Analysis of BCR (Benefit Cost Ratio) is one way to assess this.
d) For each analysis and economic decisions are taken, then the money - as an economic unit the unit will be applied as the main benchmark. Here the differences are expressed in units appropriate physical units, and units of physical force is converted in units of the applicable unit of currency (USD or $).
e) There should be criteria in making decisions clearly. The main criteria for selection of the best alternative in this case lies in the alternative capable of using all available resources effectively and efficiently.
Problem evaluation and alternative selection of engineering projects, many of us have encountered in the form:
• Alternatives for the plant site selection
• Alternatives for the election of power generation (diesel power, hydropower, power plant, nuclear plants, etc.) and its procurement policies.
• And others.
7.5.2 THE CONCEPT OF INTEREST LOANS (INTEREST)
Term rates may be interpreted as rental value of borrowing some money for a certain time. Also of interest is defined as the rate of return (rate of return) of the amount of money invested. Some money comes from their own or borrowed (individual stocks, banks or other financial institutions), then the owner of the money would usually expect a "compensation" to the conditions in which the owner will not be able to use the money within a certain time period. In the cost analysis, this compensation will be calculated as one element of cost (cost), where the size of interest (interest) will be influenced by factors such as:
• Risks not return the money invested / borrowed for a variety of things such as losses, inflation and so on.
• The influence of the law of demand and supply (supply-demand) is associated with the funds for loans.
• overhead costs that must be paid for keeping clection book fees, and other administrative costs as well besides the length of the loan period.
• The rules are created / set by the government related to a specified amount of interest. For example in Indonesia, much interest will langnsung controlled by Bank Indonesia.
7.5.3 TYPE-TYPES OF INTEREST AND METHOD application
Interest rates are always expressed per year, unless there is another provision, when it states:
i = 18% / year
i = 1.8% / month
i = 4.5% / tri wulan
i = 9% / ½ years
So the statement above would have the same understanding. In a simple interest when considered as a sum of money received as a result of capital investment, then this will be interpreted as a gain (profit). Conversely, when interest is expressed as a sum of money received as rental payments (rental fee) from the loan money, then it could be interpreted as cost (cost).
7.5.4 CHANGES IN THE VALUE OF MONEY BECAUSE OF TIME AND DO THE INTEREST RATE
As already explained earlier that the money will have a specific interest rate when implanted in a specific time period. The relationship between interest and this time will bring us to the concept of change in the value of money within a specific time (Time Value of Money). Here the value of money will change according to the function of the time, because when the amount of money borrowed for a certain period, then the amount of money must be paid back next akanlebih than the number who had borrowed it. Difference value of the money paid back and the value of the borrowed money is what we call the interest or interests. In conditions where the interest rate (i)> 0, this will mean the value of money at different times will not be the same.
7.5.5 TYPE-TYPES OF INTEREST AND METHOD application
The amount of interest that must be paid in principle, will depend on 3 things:
• The length of time / rental period (n)
• The amount of fixed interest rate (i%)
• The method is applied to the determination of interest include the simple interest method (single interest) and methods are combined interest (compound interest).
In the single method of interest, the amount of interest here would be proportionately paid to the method of the loan period (n) multiplied by the amount of money borrowed. Simply put it can also be formulated as follows:
I = P.n.i
where P = amount of money saved / invested
i = interest rate (%)
n = period of time the loan during the applicable interest
7.5.6 INFLUENCE OF THE TIME VALUE OF MONEY, INTEREST (INTEREST) and their application ECONOMIC ANALYSIS IN ENGINEERING
Related to the change of the time value of money or interest factors, it is in some way a relationship can be found at the dollar value of past, present or the future by looking at the prevailing interest rates. Symbols / The following notation is then used in solve problems of economic analysis techniques:
i = rate / interest rate per period interest rate applicable (interest rete).
n = period interest rate determined in a certain period if not specifically stated the interest period is generally considered per year.
P = principal amount of money whose value is calculated / dielivalensikan in the future (Present Worth)
F = The amount of money whose value is calculated principal / dielivalensikan in the future (Future Worth) at the end of the period of interest (n). The amount of the value of F is the principal (P) plus the accumulated interest during the rental period.
A = Number of n single payment equal pay row (Uniform Series) done at each end of the period of interest tahnan (Annual Payment or annuity)
Furthermore, to analyze the relationship between P, F and A are expressed in the variables n and i% can be searched by specific formulations which will be explained the application.
a. SINGLE PAYMENT (SINGLE PAYMENT)
Analysis of the calculation here to find out the relationship between P and F value or otherwise set forth in accordance with the variables n and i%. Here the relationship is known formulation as follows:
1) a single payment of multiple factors (Single Payment Compound Amount Factor)
Used to find the price of M where the value of P, n and i% unknown. The formula used is:
F = P (F / P, i%, n) or
F = P (1 + i) n
2) Present Value Factor from Single Payment (Single Payment Present Worth Factor)
Present value factor (Present Worth Factor) is used to find the value of principal (P) where F, n, and i% unknown. Formulation can be written:
P = F (P / F, i%, n) or
P = F
b. PAYMENT IN THE SAME AMOUNT AS Series (respectively) AT EACH END OF YEAR PAYMENT OR ACCEPTANCE (UNIFORM SERIES ANNUAL END OF YEAR PAYMENTS RECEIPT OR)
Calculation analysis was applied here to find out the relationship between an A, C and F are expressed in accordance with the variables n and i%. There are four types of relationships formulations respectively can be explained as follows:
1) factor funds saved / paid in equal numbers in series (The Uniform Series Sinking Fund Factor)
Uniform series used to search for a price when the value of F, n and i% is known, where the formulation can be written as follows:
or A = F (A / F, i%, n)
2) Factors funds / capital absorbed back in the same amount respectively (Uniform Series Capital Recovery Factor)
This method is used to understand the how the money should be withdrawn in the same amount respectively (A) with interest i% during the period is n to fund a number of P that has been invested. Formulation is shown as follows:
Or
, Or A = P [A / P, i%, n]
3) Factor of funds collected from the same payments in a row (Uniform Series Compound Factor)
Used to find out how much money is collected (F) at the end of n-year period for interest payments seriap in the same amount respectively with i% interest rate. Formulation can be explained as follows:
F = A (F / A, i%, n)
4) The value of money now from the same payments in a row (Uniform Series Present Worth Factor)
Accounting System
1.Dasar Accounting System
Accounting system (accounting system) is a method and procedure for mengupulkan, classify, summarize, and report financial and operating information of a company.
Accounting system developed through three steps when the company and subject to change.
The first step, the analysis (analysis) consists of
1) identification of the needs of the parties who need financial statements 2) determining how the system will present the information.
The second step, the accounting system was designed (desaigned) so as to meet the needs of its users.
In the last step, the accounting system applied (implemented) and used.
Internal control and data processing methods are essential in the accounting system. Internal controls (internal controls) are policies and procedures that protect corporate assets from misuse, ensuring that business information is presented accurately and ensure that laws and regulations have been followed.
Internal 2.Pengendalian
Internal control objectives is to provide reasonable assurance that:
a.Aktiva protected and used for the achievement of business objectives.
business b.Informasi accurate.
c.Karyawan comply with the rules and regulations.
Internal controls to protect assets from theft, embezzlement, or the placement of assets in an inappropriate location. One of the serious breach of internal controls is embezzlement by employees (employee fraud).
The elements of internal controls (elements of internal control) are:
a.Lingkungan control
Environmental control of a company includes all management and employee attitudes about the importance of controlling the factors among others, influenced by the philosophy and operating style of management. In addition, the structure of business organization which is the basic framework for planning and controlling operations also affect the control environment. Personnel policies including recruitment, training, evaluation, determination of salary, and promotion of employees also affect the control environment.
b.Penilaian risk
All organizations face risks. Examples of risks include changes in customer demands, competitive threats, regulatory changes, changes in economic factors such as changes in interest rates, and employee violations of company procedures. Once the risk can be identified, then the analysis can be done to estimate the magnitude of the risk impact and the level tersbut possibilities, and determine actions to meminimumkannya.
c.Prosedur control
Control procedures implemented to provide reasonable assurance that business objectives will be achieved, including embezzlement. Among these procedures are:
Competent employees, job rotation, and must leave.
The separation of responsibilities for related operations.
Separation operation, security of assets, and accounting.
Verification and security procedures.
d.Pemantauan
Monitoring of the internal control system will identify the location where the weaknesses and improve the effectiveness of these controls.
e.Informasi and communication
Valid information about the control environment, risk assessment, control procedures, and monitoring required by management to direct operations and ensure the fulfillment of reporting requirements and regulations.
3.Sistem Accounting Manual
Great a.Buku Assistant
Accounting system should be designed to provide information about the numbers of invoices to various customers (accounts receivable) and the amount to be paid to creditors (accounts payable).
If there are number of very large accounts with the same characteristics, these accounts can be grouped into a separate ledger called the subsidiary ledger (subsidiary ledger), which holds all the accounts balance sheet and income statement, called the general ledger (general ledger ).
Account for each customer arranged alphabetically in the subsidiary ledger called the subsidiary ledger accounts receivable (accounts receivable subsidiary ledger) or a big book customers (customers ledger). While account for each creditor arranged alphabetically in the subsidiary ledger called the subsidiary ledger business debt (accounts payable subsidiary ledger) or a big book of creditors (creditors ledger).
Special b.Jurnal
One way to process data more efficiently to the manual accounting system is to expand two-column journal to journal with many columns (multikolom). There are also special journal (special jornal) is designed for one type of transaction records relating to expenditure of money.
Transactions are common in small-scale service companies and medium and special journal used to record these transactions are as follows:
Provision of credit services in an income recorded in journal
Cash receipts from anywhere recorded in cash receipts journal
Purchases of goods on credit purchases are recorded in journal
Cash payments for anything recorded on the cash payments journal
Revenue and Billing 4.Siklus
Revenue Journal
The journal is only used to record revenues in credit services (fees earned on the account). Income received in cash are recorded on the cash receipts journal.
Cash receipts journal
All transactions involving cash receipts recorded on the cash receipts journal (cash receipts journal).
5.Siklus Purchases and Payments
Purchases Journal
Journal purchases (purchased jornal) is designed to record all purchases on credit (purchased on account).
Cash Payments Journal
Special column for the journal of cash payments (cash payment journal) is determined in the same manner as journal income, purchases, and cash receipts. The determining factor is the type of transaction that will be recorded and how often the transaction occurred.
6.Modifikasi of Accounting System Manual
Additional Maid Ledger
Generally, the subsidiary ledger for the accounts of many posts, which each have specific characteristics. For example a company could use the equipment subsidiary ledger to accommodate all matters related to the equipment purchased.
Journal of Modified Special
Companies can modify the journal, especially by adding one or more columns to record the transactions that often occur.
Computerized accounting 7.Sistem
A computerized accounting system similar to the manual accounting system. The main advantage of the computerized accounting system is the recording and posting transactions simultaneously, a high degree of accuracy, and speed of reporting. Accounting applications such as QuickBooks ® use.
8.E-Commerce
E-commerce is the use of the Internet to conduct business transactions. B2C e-commerce transactions involving the Internet between companies with pelangannya and also between a company with another company. E-commerce can be used to improve the speed and efficiency of revenue cycle / billing cycle and purchase / payment. Wider implementation of e-commerce include the planning and coordination of suppliers, customers, and product design process.
Accounting system (accounting system) is a method and procedure for mengupulkan, classify, summarize, and report financial and operating information of a company.
Accounting system developed through three steps when the company and subject to change.
The first step, the analysis (analysis) consists of
1) identification of the needs of the parties who need financial statements 2) determining how the system will present the information.
The second step, the accounting system was designed (desaigned) so as to meet the needs of its users.
In the last step, the accounting system applied (implemented) and used.
Internal control and data processing methods are essential in the accounting system. Internal controls (internal controls) are policies and procedures that protect corporate assets from misuse, ensuring that business information is presented accurately and ensure that laws and regulations have been followed.
Internal 2.Pengendalian
Internal control objectives is to provide reasonable assurance that:
a.Aktiva protected and used for the achievement of business objectives.
business b.Informasi accurate.
c.Karyawan comply with the rules and regulations.
Internal controls to protect assets from theft, embezzlement, or the placement of assets in an inappropriate location. One of the serious breach of internal controls is embezzlement by employees (employee fraud).
The elements of internal controls (elements of internal control) are:
a.Lingkungan control
Environmental control of a company includes all management and employee attitudes about the importance of controlling the factors among others, influenced by the philosophy and operating style of management. In addition, the structure of business organization which is the basic framework for planning and controlling operations also affect the control environment. Personnel policies including recruitment, training, evaluation, determination of salary, and promotion of employees also affect the control environment.
b.Penilaian risk
All organizations face risks. Examples of risks include changes in customer demands, competitive threats, regulatory changes, changes in economic factors such as changes in interest rates, and employee violations of company procedures. Once the risk can be identified, then the analysis can be done to estimate the magnitude of the risk impact and the level tersbut possibilities, and determine actions to meminimumkannya.
c.Prosedur control
Control procedures implemented to provide reasonable assurance that business objectives will be achieved, including embezzlement. Among these procedures are:
Competent employees, job rotation, and must leave.
The separation of responsibilities for related operations.
Separation operation, security of assets, and accounting.
Verification and security procedures.
d.Pemantauan
Monitoring of the internal control system will identify the location where the weaknesses and improve the effectiveness of these controls.
e.Informasi and communication
Valid information about the control environment, risk assessment, control procedures, and monitoring required by management to direct operations and ensure the fulfillment of reporting requirements and regulations.
3.Sistem Accounting Manual
Great a.Buku Assistant
Accounting system should be designed to provide information about the numbers of invoices to various customers (accounts receivable) and the amount to be paid to creditors (accounts payable).
If there are number of very large accounts with the same characteristics, these accounts can be grouped into a separate ledger called the subsidiary ledger (subsidiary ledger), which holds all the accounts balance sheet and income statement, called the general ledger (general ledger ).
Account for each customer arranged alphabetically in the subsidiary ledger called the subsidiary ledger accounts receivable (accounts receivable subsidiary ledger) or a big book customers (customers ledger). While account for each creditor arranged alphabetically in the subsidiary ledger called the subsidiary ledger business debt (accounts payable subsidiary ledger) or a big book of creditors (creditors ledger).
Special b.Jurnal
One way to process data more efficiently to the manual accounting system is to expand two-column journal to journal with many columns (multikolom). There are also special journal (special jornal) is designed for one type of transaction records relating to expenditure of money.
Transactions are common in small-scale service companies and medium and special journal used to record these transactions are as follows:
Provision of credit services in an income recorded in journal
Cash receipts from anywhere recorded in cash receipts journal
Purchases of goods on credit purchases are recorded in journal
Cash payments for anything recorded on the cash payments journal
Revenue and Billing 4.Siklus
Revenue Journal
The journal is only used to record revenues in credit services (fees earned on the account). Income received in cash are recorded on the cash receipts journal.
Cash receipts journal
All transactions involving cash receipts recorded on the cash receipts journal (cash receipts journal).
5.Siklus Purchases and Payments
Purchases Journal
Journal purchases (purchased jornal) is designed to record all purchases on credit (purchased on account).
Cash Payments Journal
Special column for the journal of cash payments (cash payment journal) is determined in the same manner as journal income, purchases, and cash receipts. The determining factor is the type of transaction that will be recorded and how often the transaction occurred.
6.Modifikasi of Accounting System Manual
Additional Maid Ledger
Generally, the subsidiary ledger for the accounts of many posts, which each have specific characteristics. For example a company could use the equipment subsidiary ledger to accommodate all matters related to the equipment purchased.
Journal of Modified Special
Companies can modify the journal, especially by adding one or more columns to record the transactions that often occur.
Computerized accounting 7.Sistem
A computerized accounting system similar to the manual accounting system. The main advantage of the computerized accounting system is the recording and posting transactions simultaneously, a high degree of accuracy, and speed of reporting. Accounting applications such as QuickBooks ® use.
8.E-Commerce
E-commerce is the use of the Internet to conduct business transactions. B2C e-commerce transactions involving the Internet between companies with pelangannya and also between a company with another company. E-commerce can be used to improve the speed and efficiency of revenue cycle / billing cycle and purchase / payment. Wider implementation of e-commerce include the planning and coordination of suppliers, customers, and product design process.
Definition of liabilities of Bank Management
Liabilities MANAGEMENT BANK
A. Definition of liabilities of Bank Management
Management of bank liabilities or liability of the bank management is a process whereby the banks trying to develop sources of funds through non-traditional loans in the money market or by issuing debt instruments to be used primarily for the benefit of credit demand.
B. Management Concept liabilities
Liabilities management, in principle, can be divided into 2 types namely the concept of liability reserve position management and loan liability management position.
Reserve liability management position
In meeting the liquidity needs of short-term according to this concept can be done through loans from the money market. Furthermore this concept allows the bank has a ratio of productive assets is a little less liquid so as to increase bank profits.
Weaknesses concept Reserve liability management position include:
1. the uncertainties about the cost to provide backup or relatively illiquid assets
2. possible unavailability of funds in financial markets which led to higher interest rates drastically
Figure 6.4-B will show in terms of management strategy to balance the bank balance after the withdrawal of deposits.
Loan Liability Management Position
Loan liability management position aims to increase the number of productive assets for a profit. Requirements to adopt this concept is the availability of liquid financial market with enough participants, and with adequate funds in which a bank can not influence market interest rates.
Figure 1.1 shows the increase in credit financed by borrowing money from the money market.
Figure 1.1 Forms Management liabilities
A. Basic concepts of Bank Balance Sheet
- Reserve Primary
- Backup secondary
- Investments
- Savings
- Capital
- Credit
B. Reserve Position Liability Management
C. Loan Positioning Liability Management
- Reserve Primary
- Backup secondary
- Credit
- Savings
- Capital
- Investments
C. Management Target liabilities
Liabilities management is very important in the management of bank funds for the main reasons as follows:
a. to minimize the cost of bank interest
b. the importance of relationships with customers
c. to counterbalance the rules in the field of monetary and banking.
Liabilities management targets can be seen in Figure 1.2
Figure: 1.2
Bank Interest Cost minimizing
The ability of a bank's interest in minimizing the cost of this will obviously influence the cost of funds are concerned. The factors that cause a group of borrowers are not sensitive to interest rates, among others:
Z indifference
Z lack of competition
Z the cost of purchasing a minimum
Z transaction costs
Z other factors such as politics, policies, services, incentives and trust.
The main problem in the interest rate sensitivity analysis is the bank's ability to perform customer segmentation or grouping based on changes in interest rates.
Importance of good relations with customers
As one of the factors why the bank's liabilities to the management side is to be able to meet the needs / requests of credit primarily by customers who are large companies. Customers are often classified as major customers (prime customers). Good relationship between banks with major clients is very important for banks and should be placed on a high priority. Benefits to be gained from this relationship in addition to the high spreads that can be generated from the credits.
The next things that need to be strengthened with the bank regarding the customer relationship is the factor share provider and offers complete banking services, fast and precise needs.
Offset rules
Restrictions on deposit interest rates will cause the bank can not attract all the funds offered primarily on the period of high interest rates. Restricted deposit interest rate will result in distortions and inefficient. Reserve shall in principle constitute an additional cost for the banks. The higher provision shall reserve the greater the additional costs.
Liabilities position
Liabilities consist of several main headings, in which each outposts in liabilities explain obligations (liabilities) both short-and long-term, and post capital (equity). Respective functions such liabilities are as follows:
Liabilities and equity side (liabilities) reflects the bank's balance sheet fund collection activities originating from various sources. Bank funds basically come from the public or third parties and the bank's own capital (equity). The order of the post balance sheet liabilities side is according to the format stipulated by Bank Indonesia as follows:
1. Giro
This heading consists of checking the rupiah and foreign currency belonging to third parties, which are stored in the bank and all branches both inside and outside the country. Current accounts can be withdrawn by check, transfer and other pay warrant.
Giro is the withdrawal of savings can be made at any time by using checks, giro bilyet, other means of payment orders or with the entry. Giro consists of checking account customers and other bank checking accounts.
Demand Deposits Demand Deposits or sometimes called a savings account Cheking that can be used as a means of payment and withdrawal can be done at any time by using checks, other means of command or entry way. Because of the nature of withdrawal can be done any time, then the gyro is a source of funds for banks is very unstable. For the customer's checking account with these properties will be very helpful and a means of payment more efficient. Therefore, this checking account are generally owned by clients that require payment to be more efficient in speeding up its business activities. Each owner has a current account (given) checkbook and bilyet giro as instruments to make withdrawals of funds and payment of a transaction. Checks can be used for a payment in cash transactions, checks can be drawn on the fiat or on behalf of and can not be canceled by the puller unless the check is listed as missing or stolen with missing evidenced by reports from the police. Check on the principle of unconditional order to pay a certain amount of money during delivery. According KUHD paragraph 205 "of each check must be paid on the day of his appointment even though the check presented for payment before the day is called segabai day / date of issue". The next time the grace period for payment shown on the check is 70 days from the date of its withdrawal.
While bilyet gyro is basically a command to the bank to transfer a certain amount of money bukukan the burden of fetching account on the date specified to the party listed on the warkat bilyet giro. Bilyet giro can not be withdrawn in cash but can only transfer. Bilyet giro payment orders are not unconditional, but payment will only be made in accordance with the effective date of expiration. Besides giro bilyet be canceled unilaterally pulling accompanied by pembatalannya reasons.
In the checking account, the bank provides the so-called reward checking services. GIRO services are of interest given by banks to the edge of the gironya balance. Tingak rates are relatively smaller compared with other deposits. Savings and current accounts is not actually a savings to get the flowers but simply used as a means to smooth business transactions. Therefore, savings deposits are widely used by the perngusaha who have activities that require payment in check form. For banks, these deposits is a source of low-cost funds but because of its withdrawal, the bank should really be following the withdrawal behavior of customers who in turn will affect the pattern of bank liquidity management.
Calculation of giro services each bank uses a different way. The derivation of commonly used services bank deposits among other things, based on daily balance and average balance per month. The derivation is highly dependent on bank management policies are concerned. Provision of services is usually limited to checking the amount of the minimum balance set by the bank. For example giro balances up to USD 5 Million diberkan no checking services. The greater the number of current accounts balance the greater the percentage of deposits are given.
Calculation of interest to determine the gyro services can be done by using a single rate system and the system of compound interest or the story. The system determines the interest rates with a single menggukana system is relatively simple because it uses one type of interest rates. While the system is more varied story interest and is calculated based on the provision of each service rate gyro for each of the balance of current accounts.
2. Another immediate obligation
That is the immediate obligation to pay, among others to the central government or the office of the State Treasury and Cash, interbank transfers, interbank call money and foreign currency travelers checks that have been sold. Included in this post is for money, a coupon that is due and all other obligations that term less than 15 days, such as call money.
3. Savings
Is the withdrawal of savings can only be done under certain conditions agreed upon but can not be withdrawn by check and bilyet giro. It consists of postal savings rupiah and foreign currency non-bank third property, which is stored in the bank and all branches both inside and outside the country.
Savings products currently varies widely after pakto 27, 1988. This happens because the banks are given the freedom to conduct their own savings. Besides the intense competition between banks in raising money through savings mobilization caused banks to create the kind of forced savings programs in addition to the more varied and interest rates are quite attractive prizes. The cost of funds derived from these savings can be classified as relatively expensive funds. Higher than giro service but less than the combined deposits. Combined calculation of these savings fund sources can be done based on the daily balance, average balance or the lowest balance of the savings.
Customers who want to take advantage of these savings in addition to the facility has a current account should also open a savings account at the same bank. This facility enables customers to enjoy higher rates of interest earned on savings accounts while still utilizing gironya. The mechanism of this product is done by every customer to be included as deposits deposits to savings accounts, while at the customer's interest or bilyet giro check and balance if it is found insufficient, then the respective bank can transfer from savings to checking account customers who previously had memberika authorizes the bank to transfer from savings accounts to checking accounts as needed to satisfy the lack of withdrawal.
4. Deposits
Is the withdrawal of savings can only be done at a certain time by agreement with the depository bank customers. This heading consists of time deposits, deposits on call, certificates of deposit and other similar deposits, which are stored in the bank and all branches both inside and outside the country. These deposits in rupiah and in the foreign exchange owned by third parties that withdrawal can be done by a certain time period in accordance with the agreement between the bank with customers.
This funding source has a key feature of the period is fixed, therefore, often referred to as fixed deposits generally have a maturity period of 1 month, 3 months, 6 months, 12 months, 24 months. These deposits can be withdrawn only at maturity by the party whose name is listed in bilyet deposits. Therefore, the savings deposits in the name. Further deposits are withdrawn by the depositors before the expiration period as has been agreed, the bank wearing a penalty to the rights of depositors and interest income are not counted by the bank for these deposits. To ease customers in the extension of time deposits, the bank provides the facility period giving automatic or automated rollover. An extension is valid for new deposits. To make it easier and profitable customers, depositors usually open savings accounts for example, savings in the bank concerned. And so on until the depositors decided to extend the deposit again. But for banks that want the interest transferred to another account and the interest is not taken, then the deposit rates may increase the principal amount of customer deposits.
Side bank, the source of funds is deposits of funds are classified as expensive compared to other funding sources. But profits for the bank is providing liquidity to the needs of these withdrawals can be predicted almost as accurately. These types of deposits as preferred by customers because they offer interest rates relatively higher than the deposits.
The amount of interest should be reduced still applicable income taxes for the final 15%.
5. Certificate of Deposit
Is the savings in the form of certificates of deposits transferable evidence of storage or deposit certificates of deposit sertificate is a proof-term deposit savings can be bought and sold. Form of savings is not so popular among the banks. Therefore, the banking funds sourced from this type of smaller amounts than other funding sources. These savings banks require permission in advance from the BI to banks that will issue certificates of deposit. But since pakto 27, 1998 that any bank can issue a certificate of deposit as an instrument association funds without permission from the BI, simply by telling it.
Characteristics of the certificates of deposit are as follows:
(Published by fiat in the bank specified time.
(Can be traded.
(It is a money market instruments.
(Interest paid in advance.
(Can be used as collateral.
6. Securities issued
Type liabilities position in this post are securities issued by banks that caused the obligation to pay for the banks in question both in rupiah and foreign currencies. Issued securities may include debt pengkuan letter or promissory note, money orders, and bonds.
7. Loans Received
Is all the loans received by banks including the Central Bank liabilities in the form of liquidity credit, discount facilities, and loans from other banks. In the world of banking cooperation are common in various forms such as providing assistance in the form of expert assistance (consultant) or in the form of working capital / capital. Financial aid is typically given as a course in the sense pinjamai short term, and medium-term. (For a maximum period of 7 days we call the call money, while those without a time limit in the sense that every moment can be captured by the first notice we call deposits on call. Loan borrowing is a common provision of bank loans into banks kua relatively weaker , such as government banks to the National Private Banks or foreign banks to the National Private Bank.
8. Subordinated Debt
Is obtained loans from related parties or from banks and other parties who meet certain requirements, such as the withdrawal period requirements / reimbursement in accordance with the provisions of Bank Indonesia
9. Other liabilities
This heading teridiri from other liabilities account balances, both in rupiah and foreign currencies that can not be incorporated into other posts. An example is the interest to be paid, tax bills and other obligations.
10. Capital
Equity or own capital also called consisting of:
™ for the bank's paid up capital of the Indonesian legal entities, in the form of capital or principal and compulsory deposits (for cooperatives) who actually had paid, namely the difference between the capital with a capital base that has not been paid. Capital in deposit for foreign bank branches, a net fund the headquarters and branch offices abroad. Net Fund is a difference between the balance of investment and the central office or branch offices abroad in branch offices in Indonesia with Kantar-investment balance of branch offices in Indonesia.
™ agio shares, in the form of excess capital deposits received by banks as a result of the stock price melibihi nominal value.
™ reserves, reserves of which is formed from the allowance for profit or net profit after deducting taxes, and owner approval or general meeting of shareholders meeting Arau founding member of the provisions or articles of association of each bank.
™ Capital contributions, capital contributions from other parties.
™ Difference in the financial statements
™ Difference in revaluation of fixed assets, the difference between the actual value of fixed assets and the value that has been recorded.
™ Profit-loss securities Unrealized
™ other comprehensive income
Capital Bank as a number of funds invested in various types of business (venture) the relevant banking. The bank's capital consists of own capital is sometimes referred to as "equity capital" (equity capital) is the investment made by the limited company of a bank. Whereas the second group is the senior capital (senior capital) is the bank's capital obtained from sale of bonds (bonds) and preferred stock (preferred stock): bonds were the papers term debt of more than a year and a particular interest simplex issued by private banks or state banks. The second is the preferred stock is stock that gives many the right to receive dividends or the profits which are distributed by banks and the property at the time of the dissolution of the corporation in advance of the ordinary shares.
A. Definition of liabilities of Bank Management
Management of bank liabilities or liability of the bank management is a process whereby the banks trying to develop sources of funds through non-traditional loans in the money market or by issuing debt instruments to be used primarily for the benefit of credit demand.
B. Management Concept liabilities
Liabilities management, in principle, can be divided into 2 types namely the concept of liability reserve position management and loan liability management position.
Reserve liability management position
In meeting the liquidity needs of short-term according to this concept can be done through loans from the money market. Furthermore this concept allows the bank has a ratio of productive assets is a little less liquid so as to increase bank profits.
Weaknesses concept Reserve liability management position include:
1. the uncertainties about the cost to provide backup or relatively illiquid assets
2. possible unavailability of funds in financial markets which led to higher interest rates drastically
Figure 6.4-B will show in terms of management strategy to balance the bank balance after the withdrawal of deposits.
Loan Liability Management Position
Loan liability management position aims to increase the number of productive assets for a profit. Requirements to adopt this concept is the availability of liquid financial market with enough participants, and with adequate funds in which a bank can not influence market interest rates.
Figure 1.1 shows the increase in credit financed by borrowing money from the money market.
Figure 1.1 Forms Management liabilities
A. Basic concepts of Bank Balance Sheet
- Reserve Primary
- Backup secondary
- Investments
- Savings
- Capital
- Credit
B. Reserve Position Liability Management
C. Loan Positioning Liability Management
- Reserve Primary
- Backup secondary
- Credit
- Savings
- Capital
- Investments
C. Management Target liabilities
Liabilities management is very important in the management of bank funds for the main reasons as follows:
a. to minimize the cost of bank interest
b. the importance of relationships with customers
c. to counterbalance the rules in the field of monetary and banking.
Liabilities management targets can be seen in Figure 1.2
Figure: 1.2
Bank Interest Cost minimizing
The ability of a bank's interest in minimizing the cost of this will obviously influence the cost of funds are concerned. The factors that cause a group of borrowers are not sensitive to interest rates, among others:
Z indifference
Z lack of competition
Z the cost of purchasing a minimum
Z transaction costs
Z other factors such as politics, policies, services, incentives and trust.
The main problem in the interest rate sensitivity analysis is the bank's ability to perform customer segmentation or grouping based on changes in interest rates.
Importance of good relations with customers
As one of the factors why the bank's liabilities to the management side is to be able to meet the needs / requests of credit primarily by customers who are large companies. Customers are often classified as major customers (prime customers). Good relationship between banks with major clients is very important for banks and should be placed on a high priority. Benefits to be gained from this relationship in addition to the high spreads that can be generated from the credits.
The next things that need to be strengthened with the bank regarding the customer relationship is the factor share provider and offers complete banking services, fast and precise needs.
Offset rules
Restrictions on deposit interest rates will cause the bank can not attract all the funds offered primarily on the period of high interest rates. Restricted deposit interest rate will result in distortions and inefficient. Reserve shall in principle constitute an additional cost for the banks. The higher provision shall reserve the greater the additional costs.
Liabilities position
Liabilities consist of several main headings, in which each outposts in liabilities explain obligations (liabilities) both short-and long-term, and post capital (equity). Respective functions such liabilities are as follows:
Liabilities and equity side (liabilities) reflects the bank's balance sheet fund collection activities originating from various sources. Bank funds basically come from the public or third parties and the bank's own capital (equity). The order of the post balance sheet liabilities side is according to the format stipulated by Bank Indonesia as follows:
1. Giro
This heading consists of checking the rupiah and foreign currency belonging to third parties, which are stored in the bank and all branches both inside and outside the country. Current accounts can be withdrawn by check, transfer and other pay warrant.
Giro is the withdrawal of savings can be made at any time by using checks, giro bilyet, other means of payment orders or with the entry. Giro consists of checking account customers and other bank checking accounts.
Demand Deposits Demand Deposits or sometimes called a savings account Cheking that can be used as a means of payment and withdrawal can be done at any time by using checks, other means of command or entry way. Because of the nature of withdrawal can be done any time, then the gyro is a source of funds for banks is very unstable. For the customer's checking account with these properties will be very helpful and a means of payment more efficient. Therefore, this checking account are generally owned by clients that require payment to be more efficient in speeding up its business activities. Each owner has a current account (given) checkbook and bilyet giro as instruments to make withdrawals of funds and payment of a transaction. Checks can be used for a payment in cash transactions, checks can be drawn on the fiat or on behalf of and can not be canceled by the puller unless the check is listed as missing or stolen with missing evidenced by reports from the police. Check on the principle of unconditional order to pay a certain amount of money during delivery. According KUHD paragraph 205 "of each check must be paid on the day of his appointment even though the check presented for payment before the day is called segabai day / date of issue". The next time the grace period for payment shown on the check is 70 days from the date of its withdrawal.
While bilyet gyro is basically a command to the bank to transfer a certain amount of money bukukan the burden of fetching account on the date specified to the party listed on the warkat bilyet giro. Bilyet giro can not be withdrawn in cash but can only transfer. Bilyet giro payment orders are not unconditional, but payment will only be made in accordance with the effective date of expiration. Besides giro bilyet be canceled unilaterally pulling accompanied by pembatalannya reasons.
In the checking account, the bank provides the so-called reward checking services. GIRO services are of interest given by banks to the edge of the gironya balance. Tingak rates are relatively smaller compared with other deposits. Savings and current accounts is not actually a savings to get the flowers but simply used as a means to smooth business transactions. Therefore, savings deposits are widely used by the perngusaha who have activities that require payment in check form. For banks, these deposits is a source of low-cost funds but because of its withdrawal, the bank should really be following the withdrawal behavior of customers who in turn will affect the pattern of bank liquidity management.
Calculation of giro services each bank uses a different way. The derivation of commonly used services bank deposits among other things, based on daily balance and average balance per month. The derivation is highly dependent on bank management policies are concerned. Provision of services is usually limited to checking the amount of the minimum balance set by the bank. For example giro balances up to USD 5 Million diberkan no checking services. The greater the number of current accounts balance the greater the percentage of deposits are given.
Calculation of interest to determine the gyro services can be done by using a single rate system and the system of compound interest or the story. The system determines the interest rates with a single menggukana system is relatively simple because it uses one type of interest rates. While the system is more varied story interest and is calculated based on the provision of each service rate gyro for each of the balance of current accounts.
2. Another immediate obligation
That is the immediate obligation to pay, among others to the central government or the office of the State Treasury and Cash, interbank transfers, interbank call money and foreign currency travelers checks that have been sold. Included in this post is for money, a coupon that is due and all other obligations that term less than 15 days, such as call money.
3. Savings
Is the withdrawal of savings can only be done under certain conditions agreed upon but can not be withdrawn by check and bilyet giro. It consists of postal savings rupiah and foreign currency non-bank third property, which is stored in the bank and all branches both inside and outside the country.
Savings products currently varies widely after pakto 27, 1988. This happens because the banks are given the freedom to conduct their own savings. Besides the intense competition between banks in raising money through savings mobilization caused banks to create the kind of forced savings programs in addition to the more varied and interest rates are quite attractive prizes. The cost of funds derived from these savings can be classified as relatively expensive funds. Higher than giro service but less than the combined deposits. Combined calculation of these savings fund sources can be done based on the daily balance, average balance or the lowest balance of the savings.
Customers who want to take advantage of these savings in addition to the facility has a current account should also open a savings account at the same bank. This facility enables customers to enjoy higher rates of interest earned on savings accounts while still utilizing gironya. The mechanism of this product is done by every customer to be included as deposits deposits to savings accounts, while at the customer's interest or bilyet giro check and balance if it is found insufficient, then the respective bank can transfer from savings to checking account customers who previously had memberika authorizes the bank to transfer from savings accounts to checking accounts as needed to satisfy the lack of withdrawal.
4. Deposits
Is the withdrawal of savings can only be done at a certain time by agreement with the depository bank customers. This heading consists of time deposits, deposits on call, certificates of deposit and other similar deposits, which are stored in the bank and all branches both inside and outside the country. These deposits in rupiah and in the foreign exchange owned by third parties that withdrawal can be done by a certain time period in accordance with the agreement between the bank with customers.
This funding source has a key feature of the period is fixed, therefore, often referred to as fixed deposits generally have a maturity period of 1 month, 3 months, 6 months, 12 months, 24 months. These deposits can be withdrawn only at maturity by the party whose name is listed in bilyet deposits. Therefore, the savings deposits in the name. Further deposits are withdrawn by the depositors before the expiration period as has been agreed, the bank wearing a penalty to the rights of depositors and interest income are not counted by the bank for these deposits. To ease customers in the extension of time deposits, the bank provides the facility period giving automatic or automated rollover. An extension is valid for new deposits. To make it easier and profitable customers, depositors usually open savings accounts for example, savings in the bank concerned. And so on until the depositors decided to extend the deposit again. But for banks that want the interest transferred to another account and the interest is not taken, then the deposit rates may increase the principal amount of customer deposits.
Side bank, the source of funds is deposits of funds are classified as expensive compared to other funding sources. But profits for the bank is providing liquidity to the needs of these withdrawals can be predicted almost as accurately. These types of deposits as preferred by customers because they offer interest rates relatively higher than the deposits.
The amount of interest should be reduced still applicable income taxes for the final 15%.
5. Certificate of Deposit
Is the savings in the form of certificates of deposits transferable evidence of storage or deposit certificates of deposit sertificate is a proof-term deposit savings can be bought and sold. Form of savings is not so popular among the banks. Therefore, the banking funds sourced from this type of smaller amounts than other funding sources. These savings banks require permission in advance from the BI to banks that will issue certificates of deposit. But since pakto 27, 1998 that any bank can issue a certificate of deposit as an instrument association funds without permission from the BI, simply by telling it.
Characteristics of the certificates of deposit are as follows:
(Published by fiat in the bank specified time.
(Can be traded.
(It is a money market instruments.
(Interest paid in advance.
(Can be used as collateral.
6. Securities issued
Type liabilities position in this post are securities issued by banks that caused the obligation to pay for the banks in question both in rupiah and foreign currencies. Issued securities may include debt pengkuan letter or promissory note, money orders, and bonds.
7. Loans Received
Is all the loans received by banks including the Central Bank liabilities in the form of liquidity credit, discount facilities, and loans from other banks. In the world of banking cooperation are common in various forms such as providing assistance in the form of expert assistance (consultant) or in the form of working capital / capital. Financial aid is typically given as a course in the sense pinjamai short term, and medium-term. (For a maximum period of 7 days we call the call money, while those without a time limit in the sense that every moment can be captured by the first notice we call deposits on call. Loan borrowing is a common provision of bank loans into banks kua relatively weaker , such as government banks to the National Private Banks or foreign banks to the National Private Bank.
8. Subordinated Debt
Is obtained loans from related parties or from banks and other parties who meet certain requirements, such as the withdrawal period requirements / reimbursement in accordance with the provisions of Bank Indonesia
9. Other liabilities
This heading teridiri from other liabilities account balances, both in rupiah and foreign currencies that can not be incorporated into other posts. An example is the interest to be paid, tax bills and other obligations.
10. Capital
Equity or own capital also called consisting of:
™ for the bank's paid up capital of the Indonesian legal entities, in the form of capital or principal and compulsory deposits (for cooperatives) who actually had paid, namely the difference between the capital with a capital base that has not been paid. Capital in deposit for foreign bank branches, a net fund the headquarters and branch offices abroad. Net Fund is a difference between the balance of investment and the central office or branch offices abroad in branch offices in Indonesia with Kantar-investment balance of branch offices in Indonesia.
™ agio shares, in the form of excess capital deposits received by banks as a result of the stock price melibihi nominal value.
™ reserves, reserves of which is formed from the allowance for profit or net profit after deducting taxes, and owner approval or general meeting of shareholders meeting Arau founding member of the provisions or articles of association of each bank.
™ Capital contributions, capital contributions from other parties.
™ Difference in the financial statements
™ Difference in revaluation of fixed assets, the difference between the actual value of fixed assets and the value that has been recorded.
™ Profit-loss securities Unrealized
™ other comprehensive income
Capital Bank as a number of funds invested in various types of business (venture) the relevant banking. The bank's capital consists of own capital is sometimes referred to as "equity capital" (equity capital) is the investment made by the limited company of a bank. Whereas the second group is the senior capital (senior capital) is the bank's capital obtained from sale of bonds (bonds) and preferred stock (preferred stock): bonds were the papers term debt of more than a year and a particular interest simplex issued by private banks or state banks. The second is the preferred stock is stock that gives many the right to receive dividends or the profits which are distributed by banks and the property at the time of the dissolution of the corporation in advance of the ordinary shares.
Distortions (economics)
Distortions (economics)
Distortions (economics) (or market imperfection) is that makes economic conditions that interfere with efficient lack of economic agents in maximizing social welfare in order to maximize their own welfare.
A condition which is used to measure the distortion is the deviation between the market price of the good and the marginal cost is the difference between the marginal rate of substitution in consumption and transformation of the marginal level of production. Such deviations may result from the monopoly, tariffs and import quotas, which in theory could cause some type of behavior is called business people passing. Source of distortion is uncorrected externalities, the tax discrimination in the price of goods or income, inflation, and complete information. Each of which can result in a net loss on the part of consumers. In ideal conditions where there is a state of perfect competition without market distortions resulting in a balance of supply and demand.
Distortions (economics) (or market imperfection) is that makes economic conditions that interfere with efficient lack of economic agents in maximizing social welfare in order to maximize their own welfare.
A condition which is used to measure the distortion is the deviation between the market price of the good and the marginal cost is the difference between the marginal rate of substitution in consumption and transformation of the marginal level of production. Such deviations may result from the monopoly, tariffs and import quotas, which in theory could cause some type of behavior is called business people passing. Source of distortion is uncorrected externalities, the tax discrimination in the price of goods or income, inflation, and complete information. Each of which can result in a net loss on the part of consumers. In ideal conditions where there is a state of perfect competition without market distortions resulting in a balance of supply and demand.
Understanding Consignment Sales
Understanding Consignment Sales
Sales consignment sales are also called surrogate, which suggests the goods (the owner) called the consignor (konsinyor) or observer, is the party receiving the deposit item is called consignee, commissioner. The terms of the sale according Harnanto Jonah Hadori are:
"Consignment is an agreement where the parties have the goods handed over a number of goods to certain parties to provide the commission with dijualkan" 3
Basically, all these consignment sales were:
- Element of the agreement
- Element owner of the goods
- Elements of goods entrusted party
- Elements of goods deposited
- Element sales
- Element commission
Ignoring one of these elements will make the transaction can not be called a consignment sale, therefore all these elements must exist at the time of consignment sales.
Accounting Treatment differences Regular Sales and Consignment Sales
Relationship Konsinyor and consignee in Consignment
Recording Method Consignment Sales
In principle, revenue is recognized when the consignment sale of goods made by the consignee consignment to a third party. If you need konsinyor sales reports or loss on the sale of goods on consignment, then the records must be held separately from regular sales transaction.
As for method of administration of merchandise, there are two alternatives, namely perpectual methods and Physic. If the consignment transactions recorded separately from other transactions, then any method used, the parties must be held account konsinyor "consignment goods". If the transaction is not recorded separately from other transactions, the delivery of goods on consignment note in the "memorandum". For each consignment agreements in the transaction accounts of goods entrusted to the consignee is basically account consignment goods which are for konsinyor supplies. Account was created as a control account for each of the consignee or a contra account for transactions made with the consignee consignment. If the account needs assistant konsinyor the maid's account held for each consignee. If the parties want konsinyor profit on sale of consignment must be determined separately, the accounts of goods on consignment for each consignee burdened cost of delivered goods to the consignee and all costs associated with the consignment. If sales have been made by the consignee of this account is credited. Profit or loss on sale of consignment bukukan eventually transferred from the estimated profit or loss on consignment to estimate the cost of income which summarizes the net result of all activities. Meanwhile, if the transaction requires konsinyor consignment must be combined with other ordinary transactions and business income is calculated price. Thus the income and expenses recorded in a consignment sale that summarizes the estimated joint business activities.
To record all transactions are recorded in verse journal, the accounting treatment for sale of consignment can be classified in:
1) Recording by a consignment which resolved completely.
If in a consignment contract has been completed at the time of the konsinyor will compile the financial statements at the end of each accounting period the recording procedure and the journal posts to be created by the delivery konsinyor goods, the sale of goods, payment of goods, and settlement finance, by the consignee to konsinyor are as follows:
a. Recording of the book deals konsinyor if konsinyor held separately from regular sales transaction.
Table 1
Recording differences in Konsinyor Books
Consignment sales transactions recorded separately
Method of Physical Perpectual and Methods
Method Perpectual
Physical Methods
1) delivery of goods on consignment
consignment goods xx
inventory of finished products xx
2) paid for shipping freight consignment goods xx
Cash xx
3) accepted sales calculations
a. recorded sales
xx receivables
xx consignment sales
b. recorded cost of goods sold on consignment HPP xx
xx consignment sales costs
consignment goods xx
4) revenue / cash remittances from consignee
Cash xx
xx receivables
5) closing / transfer of cash balances
account delivery of goods on consignment to the profit and loss
consignment goods xx
delivery of goods on consignment xx
consignment goods xx
Cash xx
xx receivables
xx consignment sales
Consignment HPP xx
xx consignment sales costs
consignment goods xx
Cash xx
xx receivables
delivery of goods on consignment xx
xx income
Source Jonah Hadori Hartanto, Advanced Financial Accounting, Edition I, First Edition, BPFE, Yogyakarta, 1981, 152 pages.
In the calculation of profit and loss statements, balance delivery consignment items deducted from the amount of goods available for sale in determining the amount of the regular cost of goods sold. Thus the journal still made even though no goods sold until the end of the fiscal year concerned.
b. Recording of the book consignee consignee if the transaction is held separately from regular travel transactions.
- Delivery of goods to the consignee. Here the consignee recorded on the consignee receipt of goods with a memorandum in his diary or in a separate book which was held for this purpose.
- Load the consignee must be defined in the consignment will dijurnal as follows:
consignment went xx
Cash xx
- The sale by the consignee, will dijurnal as follows:
Cash xx
consignment went xx
- Commission or profit that still must be accepted for the consignee will dijurnal as follows:
consignment went xx
commission on consignment sales xx
- Sending cash and consignment sales estimates by the consignee, will dijurnalkan as follows:
consignment went xx
Cash xx
c. Recording on konsinyor book. If the consignment transaction is not held separately from regular sales transactions
Table 2
Differences in recording Konsinyor Book
Sales transactions not Held Separate consignee
Method of Physical Perpectual and Methods
Method Perpectual
Physical Methods
1) delivery of goods on consignment
consignment goods xx
inventory of finished products xx
2) paid freight shipping freight xx
Cash xx
3) accepted sales calculations
a. recorded sales
xx receivables
xx sales
b. recorded cost of goods sold cost of goods sold xx
consignment goods xx
c. delete your account balance delivery of goods at the end of the fiscal year for items that have been sold
4) receiving / sending cash
Cash xx
xx receivables
consignment goods xx
delivery of goods on consignment xx
xx freight
Cash xx
xx receivables
xx sales
cost of goods sold xx
consignment goods xx
delivery of goods on consignment xx
Cash xx
xx receivables
Source Jonah Hadori Hartanto, Advanced Financial Accounting, Edition I, First Edition, BPFE, Yogyakarta, 1981, 153 pages.
Journal account balances to eliminate shipping consignment goods and accounts. Consignment items do not need to be made on physical methods, if at the time of delivery was not recorded in a journal book, but only in the form of memorandum.
d. Recording of the book consignment consignee if the transaction is not held separately from regular sales transaction.
- The delivery of goods to the consignee. Here, the consignee of goods consignment note with paragraph memorandum journals.
- Load the consignee specified on the consignment.
Party party consignee debit konsinyor estimates for the burden that must be charged to the credit konsinyor and approximate estimate of the asset or liability in question.
- Sales by the consignee.
Consignee as recorded on the consignment sale of used sales. Each verse is accompanied sales journal with a verse journal to record the load incurred by the konsinyor, for goods sold, estimated or expected purchase cost of goods sold debited and credited konsinyor party estimates.
- Commission or the profit that still must be accepted for the consignee.
Consignee party does not make a verse journal for commission or profit on sale of consignment. Revenue from sale consignee will be reflected in gross profit as a result of the consignee of the verses above journal was created.
- Delivery of cash and consignment sales estimates by the consignee.
Party consignee to the payment records with debit konsinyor estimates konsinyor and crediting the cash account.
2) Recording for the consignment is not resolved completely.
If the party should draw konsinyor financial statements at the end of each accounting period and the period of consignment agreement is still in progress or not all the goods sold on consignment by consignment, then the necessary adjustments to the items related to some unfinished products thoroughly until the end of accounting period .
The discussion is as follows:
a. Recording of the book if the transaction is a consignment konsinyor held separately from regular sales transaction.
At the end of the fiscal period booked konsinyor consignment sales reports, so that he can to record a gain or loss on the sale of goods on consignment until that date. Method of recording on consignment transactions recorded in the way in a consignment agreement that resolved completely, only the amount of sales recorded for the amount of consignment of goods sold on consignment. Recording of goods that have been issued by the consignee konsinyor or relating to the sale of goods on consignment must be allocated from each of the items have been sold or goods that have not sold.
Delivery of goods to the consignee originally recorded by debiting estimates consignment goods, at the time of the sale of the balance of goods on consignment is credited for the cost of goods sold on consignment by the consignee. This causes estimates consignment goods still contain debit balances. This debit balance states the cost of other expenses incurred on consignment goods are not sold. Approximate balance in a consignment of goods listed in the balance sheet as part of a final inventory of the company.
b. Recording of the book if the transaction does not konsinyor held separately from regular sales transaction.
If the consignment transaction records is not specified separately or combined with regular sales transaction, the parties konsinyor booked against the costs incurred in connection with the sale of the consignment into the books by debiting konsinyor estimated costs involved. However, if the consignment of goods entrusted to the consignee who has not sold, then these costs should be deferred pembebanannya. If konsinyor using perpectual method, the delivery of goods to the consignee recorded in the memorandum. When received the report from the consignee sales calculations, are treated the same as in case of a regular sales journal at the time of the post closing of the post along with the suspended journal costs associated with products not sold, by debiting the cost estimates for deferred pembebanannya cost allocation for items not sold and crediting the estimated costs that linger on products not yet sold.
Meanwhile, if using physical methods, the delivery of goods to the consignee originally recorded in the memorandum, at the time of the report received from consignment sales calculations, are treated the same as in case of regular sales. As for the costs incurred consignee who is still attached to products not sold, then the cost of a debit dijurnal goods on consignment, some still attached to the cost of products not yet sold. At the end of the period, the cost of goods sold on consignment and not transportation costs incurred konsinyor, which is still attached to products not sold will be credited and a consignment of goods to be debited, so the balance of goods on consignment to show the cost of goods on consignment and the cost -costs that linger on consignment goods are not sold.
c. Recording of the book consignee if the transaction is recorded separately and are not recorded separately from regular sales transaction.
Table 3
Differences Recording In consignee Books
If the Transaction recorded separately and
Not Logged In consignee
Transaction-Transaction
If the transaction is recorded in a separate consignment
If the consignment transaction is not recorded separately
Acceptance of goods on consignment
memo
memo
1. Cash sales
Cash ... ... ... ... ... ... .. xx
Goods commissions ... .... Xx
a) Cash ... ... ... xx
Sales ... ... xx
b) Purchase .... xx
Debt ... ... ... xx
2. Freight paid
Commission stuff ... xx
Cash ... ... ... ... ... ... ... .... Xx
Debt ... ... .. xx
Cash ... ... ... ... .. xx
4 a. Calculation of commission on the sale of goods commission
b. Delivery
and at the same time shipping calculation check sales results
a. Commission goods .... Xx
Commission income ... ... .. xx
b. Commission goods .... Xx
Cash ... ... ... ... ... ... ... ... .. xx
b. Debt ... ... xx
Cash ... ... ... ... xx
Source: Hadori Jonah and Harnanto, Advanced Financial Accounting, Edition I,
Printed First, BPFE, Yogyakarta, 1981, p. 159
The next recording process, namely the closure of the nominal accounts to the profit and loss account and balance transfers to profit or loss of profit is held as usual.
Accounting Treatment of Consignment Goods Returned and the consignee Payment
1. Consignment goods are returned
Where the goods are returned to pengamanat consignment (consignor), the accounts of goods on consignment must be credited with the cost of the goods concerned. The costs associated with activities to sell the goods (freight, packaging costs, assembly costs and return shipping costs), should be charged to the income for the period. Costs occur not be capitalized as part of basic goods are returned or not should be suspended pembebanannya, since it provides no benefits will be the future. In the case of returned goods due to damage, so the benefits are no longer worth the price point, then the decline in value must be recognized as a loss. If the repair costs needed to be able to sell these goods, the cost of repair (repair) should therefore be recognized as period costs.
2. Advances consignment
If the consignment transactions, konsinyor require an advance payment of consignment goods are shipped to the consignee, the acceptance of these advances can be dijurnal as follows:
Cash ... ... ... ... ... ... .... xx
Advances consignee ... ... ... ... ... ... ... ... xx
Advances of this consignee, should be presented as debt in the balance sheet until there is settlement of goods on consignment, then when payment dijurnal as follows:
Cash ... ... ... ... ... ... ... ... ... ... .. xx
Advances consignee ... ... ... ... xx
Receivables consignee ... ... ... ... .... ... ... Xx
Serving the influence Consignment Sales Transactions in the Financial Report for Konsinyor
These procedures should be used if you wish konsinyor serving more complete information either on consignment sales and regular sales, is to do a recording of consignment sales transactions separately from ordinary sales transactions. As for serving in the calculation of profit and loss statement can be done by:
1. Using sales data, cost of goods sold and cost of sales from consignment transactions separately from regular sales transaction.
2. Sales data, cost of goods sold and selling expenses in question are reported separately and parallel to the regular sales data. Thus be used when reporting the sale of goods on consignment is an important part of its distribution activities.
3. Presenting data in a consignment sale in the calculation of profit and loss statements, the reported profit or loss on consignment sales without sales data and presents the relevant costs, ie by adding or subtracting a consignment of income from ordinary sales gross profit.
Sales consignment sales are also called surrogate, which suggests the goods (the owner) called the consignor (konsinyor) or observer, is the party receiving the deposit item is called consignee, commissioner. The terms of the sale according Harnanto Jonah Hadori are:
"Consignment is an agreement where the parties have the goods handed over a number of goods to certain parties to provide the commission with dijualkan" 3
Basically, all these consignment sales were:
- Element of the agreement
- Element owner of the goods
- Elements of goods entrusted party
- Elements of goods deposited
- Element sales
- Element commission
Ignoring one of these elements will make the transaction can not be called a consignment sale, therefore all these elements must exist at the time of consignment sales.
Accounting Treatment differences Regular Sales and Consignment Sales
Relationship Konsinyor and consignee in Consignment
Recording Method Consignment Sales
In principle, revenue is recognized when the consignment sale of goods made by the consignee consignment to a third party. If you need konsinyor sales reports or loss on the sale of goods on consignment, then the records must be held separately from regular sales transaction.
As for method of administration of merchandise, there are two alternatives, namely perpectual methods and Physic. If the consignment transactions recorded separately from other transactions, then any method used, the parties must be held account konsinyor "consignment goods". If the transaction is not recorded separately from other transactions, the delivery of goods on consignment note in the "memorandum". For each consignment agreements in the transaction accounts of goods entrusted to the consignee is basically account consignment goods which are for konsinyor supplies. Account was created as a control account for each of the consignee or a contra account for transactions made with the consignee consignment. If the account needs assistant konsinyor the maid's account held for each consignee. If the parties want konsinyor profit on sale of consignment must be determined separately, the accounts of goods on consignment for each consignee burdened cost of delivered goods to the consignee and all costs associated with the consignment. If sales have been made by the consignee of this account is credited. Profit or loss on sale of consignment bukukan eventually transferred from the estimated profit or loss on consignment to estimate the cost of income which summarizes the net result of all activities. Meanwhile, if the transaction requires konsinyor consignment must be combined with other ordinary transactions and business income is calculated price. Thus the income and expenses recorded in a consignment sale that summarizes the estimated joint business activities.
To record all transactions are recorded in verse journal, the accounting treatment for sale of consignment can be classified in:
1) Recording by a consignment which resolved completely.
If in a consignment contract has been completed at the time of the konsinyor will compile the financial statements at the end of each accounting period the recording procedure and the journal posts to be created by the delivery konsinyor goods, the sale of goods, payment of goods, and settlement finance, by the consignee to konsinyor are as follows:
a. Recording of the book deals konsinyor if konsinyor held separately from regular sales transaction.
Table 1
Recording differences in Konsinyor Books
Consignment sales transactions recorded separately
Method of Physical Perpectual and Methods
Method Perpectual
Physical Methods
1) delivery of goods on consignment
consignment goods xx
inventory of finished products xx
2) paid for shipping freight consignment goods xx
Cash xx
3) accepted sales calculations
a. recorded sales
xx receivables
xx consignment sales
b. recorded cost of goods sold on consignment HPP xx
xx consignment sales costs
consignment goods xx
4) revenue / cash remittances from consignee
Cash xx
xx receivables
5) closing / transfer of cash balances
account delivery of goods on consignment to the profit and loss
consignment goods xx
delivery of goods on consignment xx
consignment goods xx
Cash xx
xx receivables
xx consignment sales
Consignment HPP xx
xx consignment sales costs
consignment goods xx
Cash xx
xx receivables
delivery of goods on consignment xx
xx income
Source Jonah Hadori Hartanto, Advanced Financial Accounting, Edition I, First Edition, BPFE, Yogyakarta, 1981, 152 pages.
In the calculation of profit and loss statements, balance delivery consignment items deducted from the amount of goods available for sale in determining the amount of the regular cost of goods sold. Thus the journal still made even though no goods sold until the end of the fiscal year concerned.
b. Recording of the book consignee consignee if the transaction is held separately from regular travel transactions.
- Delivery of goods to the consignee. Here the consignee recorded on the consignee receipt of goods with a memorandum in his diary or in a separate book which was held for this purpose.
- Load the consignee must be defined in the consignment will dijurnal as follows:
consignment went xx
Cash xx
- The sale by the consignee, will dijurnal as follows:
Cash xx
consignment went xx
- Commission or profit that still must be accepted for the consignee will dijurnal as follows:
consignment went xx
commission on consignment sales xx
- Sending cash and consignment sales estimates by the consignee, will dijurnalkan as follows:
consignment went xx
Cash xx
c. Recording on konsinyor book. If the consignment transaction is not held separately from regular sales transactions
Table 2
Differences in recording Konsinyor Book
Sales transactions not Held Separate consignee
Method of Physical Perpectual and Methods
Method Perpectual
Physical Methods
1) delivery of goods on consignment
consignment goods xx
inventory of finished products xx
2) paid freight shipping freight xx
Cash xx
3) accepted sales calculations
a. recorded sales
xx receivables
xx sales
b. recorded cost of goods sold cost of goods sold xx
consignment goods xx
c. delete your account balance delivery of goods at the end of the fiscal year for items that have been sold
4) receiving / sending cash
Cash xx
xx receivables
consignment goods xx
delivery of goods on consignment xx
xx freight
Cash xx
xx receivables
xx sales
cost of goods sold xx
consignment goods xx
delivery of goods on consignment xx
Cash xx
xx receivables
Source Jonah Hadori Hartanto, Advanced Financial Accounting, Edition I, First Edition, BPFE, Yogyakarta, 1981, 153 pages.
Journal account balances to eliminate shipping consignment goods and accounts. Consignment items do not need to be made on physical methods, if at the time of delivery was not recorded in a journal book, but only in the form of memorandum.
d. Recording of the book consignment consignee if the transaction is not held separately from regular sales transaction.
- The delivery of goods to the consignee. Here, the consignee of goods consignment note with paragraph memorandum journals.
- Load the consignee specified on the consignment.
Party party consignee debit konsinyor estimates for the burden that must be charged to the credit konsinyor and approximate estimate of the asset or liability in question.
- Sales by the consignee.
Consignee as recorded on the consignment sale of used sales. Each verse is accompanied sales journal with a verse journal to record the load incurred by the konsinyor, for goods sold, estimated or expected purchase cost of goods sold debited and credited konsinyor party estimates.
- Commission or the profit that still must be accepted for the consignee.
Consignee party does not make a verse journal for commission or profit on sale of consignment. Revenue from sale consignee will be reflected in gross profit as a result of the consignee of the verses above journal was created.
- Delivery of cash and consignment sales estimates by the consignee.
Party consignee to the payment records with debit konsinyor estimates konsinyor and crediting the cash account.
2) Recording for the consignment is not resolved completely.
If the party should draw konsinyor financial statements at the end of each accounting period and the period of consignment agreement is still in progress or not all the goods sold on consignment by consignment, then the necessary adjustments to the items related to some unfinished products thoroughly until the end of accounting period .
The discussion is as follows:
a. Recording of the book if the transaction is a consignment konsinyor held separately from regular sales transaction.
At the end of the fiscal period booked konsinyor consignment sales reports, so that he can to record a gain or loss on the sale of goods on consignment until that date. Method of recording on consignment transactions recorded in the way in a consignment agreement that resolved completely, only the amount of sales recorded for the amount of consignment of goods sold on consignment. Recording of goods that have been issued by the consignee konsinyor or relating to the sale of goods on consignment must be allocated from each of the items have been sold or goods that have not sold.
Delivery of goods to the consignee originally recorded by debiting estimates consignment goods, at the time of the sale of the balance of goods on consignment is credited for the cost of goods sold on consignment by the consignee. This causes estimates consignment goods still contain debit balances. This debit balance states the cost of other expenses incurred on consignment goods are not sold. Approximate balance in a consignment of goods listed in the balance sheet as part of a final inventory of the company.
b. Recording of the book if the transaction does not konsinyor held separately from regular sales transaction.
If the consignment transaction records is not specified separately or combined with regular sales transaction, the parties konsinyor booked against the costs incurred in connection with the sale of the consignment into the books by debiting konsinyor estimated costs involved. However, if the consignment of goods entrusted to the consignee who has not sold, then these costs should be deferred pembebanannya. If konsinyor using perpectual method, the delivery of goods to the consignee recorded in the memorandum. When received the report from the consignee sales calculations, are treated the same as in case of a regular sales journal at the time of the post closing of the post along with the suspended journal costs associated with products not sold, by debiting the cost estimates for deferred pembebanannya cost allocation for items not sold and crediting the estimated costs that linger on products not yet sold.
Meanwhile, if using physical methods, the delivery of goods to the consignee originally recorded in the memorandum, at the time of the report received from consignment sales calculations, are treated the same as in case of regular sales. As for the costs incurred consignee who is still attached to products not sold, then the cost of a debit dijurnal goods on consignment, some still attached to the cost of products not yet sold. At the end of the period, the cost of goods sold on consignment and not transportation costs incurred konsinyor, which is still attached to products not sold will be credited and a consignment of goods to be debited, so the balance of goods on consignment to show the cost of goods on consignment and the cost -costs that linger on consignment goods are not sold.
c. Recording of the book consignee if the transaction is recorded separately and are not recorded separately from regular sales transaction.
Table 3
Differences Recording In consignee Books
If the Transaction recorded separately and
Not Logged In consignee
Transaction-Transaction
If the transaction is recorded in a separate consignment
If the consignment transaction is not recorded separately
Acceptance of goods on consignment
memo
memo
1. Cash sales
Cash ... ... ... ... ... ... .. xx
Goods commissions ... .... Xx
a) Cash ... ... ... xx
Sales ... ... xx
b) Purchase .... xx
Debt ... ... ... xx
2. Freight paid
Commission stuff ... xx
Cash ... ... ... ... ... ... ... .... Xx
Debt ... ... .. xx
Cash ... ... ... ... .. xx
4 a. Calculation of commission on the sale of goods commission
b. Delivery
and at the same time shipping calculation check sales results
a. Commission goods .... Xx
Commission income ... ... .. xx
b. Commission goods .... Xx
Cash ... ... ... ... ... ... ... ... .. xx
b. Debt ... ... xx
Cash ... ... ... ... xx
Source: Hadori Jonah and Harnanto, Advanced Financial Accounting, Edition I,
Printed First, BPFE, Yogyakarta, 1981, p. 159
The next recording process, namely the closure of the nominal accounts to the profit and loss account and balance transfers to profit or loss of profit is held as usual.
Accounting Treatment of Consignment Goods Returned and the consignee Payment
1. Consignment goods are returned
Where the goods are returned to pengamanat consignment (consignor), the accounts of goods on consignment must be credited with the cost of the goods concerned. The costs associated with activities to sell the goods (freight, packaging costs, assembly costs and return shipping costs), should be charged to the income for the period. Costs occur not be capitalized as part of basic goods are returned or not should be suspended pembebanannya, since it provides no benefits will be the future. In the case of returned goods due to damage, so the benefits are no longer worth the price point, then the decline in value must be recognized as a loss. If the repair costs needed to be able to sell these goods, the cost of repair (repair) should therefore be recognized as period costs.
2. Advances consignment
If the consignment transactions, konsinyor require an advance payment of consignment goods are shipped to the consignee, the acceptance of these advances can be dijurnal as follows:
Cash ... ... ... ... ... ... .... xx
Advances consignee ... ... ... ... ... ... ... ... xx
Advances of this consignee, should be presented as debt in the balance sheet until there is settlement of goods on consignment, then when payment dijurnal as follows:
Cash ... ... ... ... ... ... ... ... ... ... .. xx
Advances consignee ... ... ... ... xx
Receivables consignee ... ... ... ... .... ... ... Xx
Serving the influence Consignment Sales Transactions in the Financial Report for Konsinyor
These procedures should be used if you wish konsinyor serving more complete information either on consignment sales and regular sales, is to do a recording of consignment sales transactions separately from ordinary sales transactions. As for serving in the calculation of profit and loss statement can be done by:
1. Using sales data, cost of goods sold and cost of sales from consignment transactions separately from regular sales transaction.
2. Sales data, cost of goods sold and selling expenses in question are reported separately and parallel to the regular sales data. Thus be used when reporting the sale of goods on consignment is an important part of its distribution activities.
3. Presenting data in a consignment sale in the calculation of profit and loss statements, the reported profit or loss on consignment sales without sales data and presents the relevant costs, ie by adding or subtracting a consignment of income from ordinary sales gross profit.
Definition, Definition, Tasks & Functions Human Resource Management / Human Resources - Economic Science Management - Human Resource Manager
Definition, Definition, Tasks & Functions Human Resource Management / Human Resources - Economic Science Management - Human Resource Manager
Human resource management is a process of dealing with various issues on the scope of the employee, employees, workers, managers and other workers to be able to support the activities of the organization or company to achieve its intended purpose. Part or unit that usually take care of tablespoons is the human resources department or in English is called HR or human resource department.
According A.F. Stoner human resource management is an ongoing procedure that aims to supply an organization with the right person to be placed in the position and the right position at the time the organization needs it.
Human Resources Department has a Role, Function, Task and Responsibilities:
1. Preparation and selection of labor / Preparation and selection
a. Preparation
In the preparatory process of planning is the need for human resources by determining the various jobs that may arise. What can be done is to estimate / forecast to the vacant job, the amount, time, and so forth.
There are two factors that need to be considered in the preparation, the internal factors such as the number of new employees needs, organizational structure, existing departments, and others. External factors such as employment law, labor pasa conditions, and so forth.
b. Labor recruitment / Recruitment
Recruitment is a process to find potential employees or candidates, employees, workers, managers, or a new labor tablespoons oraganisasi needs or company. In this stage of analysis diperluka existing positions to create a job description / job description and job specifications / job specification.
c. Labor Selection / Selection
Selection labor is a process of finding the right employment of the many candidates or candidates who have. Early stage needs to be done after receiving the applicant's documents is to see a resume / cv / curriculum vittae of applicants. Then from cv sorting applicants conducted between applicants who will be called with a failure to meet standards of a job. Then next is to call the selected candidates for the written test conducted examinations, job interviews / interview and other selection processes.
2. Development and evaluation of employees / Development and evaluation
Workers who work on the organization or company must master the job duties and responsibilities. It required a debriefing to the existing workforce can be better controlled and experts in their respective fields and improve performance. In this way the development and evaluation of employees to be very important starting from low-level employees or high.
3. Provide compensation and protection of employees / Compensation and protection
compensation is a reward for the contribution of employees regularly work from the organization or company. Appropriate compensation is very important and in line with labor market conditions existing on the external environment. Compensation is not in accordance with existing conditions can cause labor problems in the future or may cause harm to the organization or company. Protection also needs to be given to workers in order to carry out their work quietly so that performance and contribution of these workers can stay up from time to time.
Human resource management is a process of dealing with various issues on the scope of the employee, employees, workers, managers and other workers to be able to support the activities of the organization or company to achieve its intended purpose. Part or unit that usually take care of tablespoons is the human resources department or in English is called HR or human resource department.
According A.F. Stoner human resource management is an ongoing procedure that aims to supply an organization with the right person to be placed in the position and the right position at the time the organization needs it.
Human Resources Department has a Role, Function, Task and Responsibilities:
1. Preparation and selection of labor / Preparation and selection
a. Preparation
In the preparatory process of planning is the need for human resources by determining the various jobs that may arise. What can be done is to estimate / forecast to the vacant job, the amount, time, and so forth.
There are two factors that need to be considered in the preparation, the internal factors such as the number of new employees needs, organizational structure, existing departments, and others. External factors such as employment law, labor pasa conditions, and so forth.
b. Labor recruitment / Recruitment
Recruitment is a process to find potential employees or candidates, employees, workers, managers, or a new labor tablespoons oraganisasi needs or company. In this stage of analysis diperluka existing positions to create a job description / job description and job specifications / job specification.
c. Labor Selection / Selection
Selection labor is a process of finding the right employment of the many candidates or candidates who have. Early stage needs to be done after receiving the applicant's documents is to see a resume / cv / curriculum vittae of applicants. Then from cv sorting applicants conducted between applicants who will be called with a failure to meet standards of a job. Then next is to call the selected candidates for the written test conducted examinations, job interviews / interview and other selection processes.
2. Development and evaluation of employees / Development and evaluation
Workers who work on the organization or company must master the job duties and responsibilities. It required a debriefing to the existing workforce can be better controlled and experts in their respective fields and improve performance. In this way the development and evaluation of employees to be very important starting from low-level employees or high.
3. Provide compensation and protection of employees / Compensation and protection
compensation is a reward for the contribution of employees regularly work from the organization or company. Appropriate compensation is very important and in line with labor market conditions existing on the external environment. Compensation is not in accordance with existing conditions can cause labor problems in the future or may cause harm to the organization or company. Protection also needs to be given to workers in order to carry out their work quietly so that performance and contribution of these workers can stay up from time to time.
BASIC STRATEGY SET PROMOTION
BASIC STRATEGY SET PROMOTION
Promotions That Concerning Communications
Sharp part of the marketing tools is the message (message) which dikomukasikan directly to prospective buyers through the various elements of the promotional program. If prospective buyers know products company, means a particular impression has been conveyed (either positive or negative impression) with such a product can be regarded as a symbol of communication. It is in fact the product has an "image" in the minds of the prospective buyer, so a trademark or the name of it is a symbol that conveys a message to prospective buyers. Menkomunikasikan packaging of goods is also ideas to increase or decrease the product image. Price also shows the idea of quality, and consumer image of the product sold.
Realization of the way - the way in which aspect - aspect of this marketing program increase or decrease the image of the product confirmed the importance of communication factors - these factors and the importance of membentukunya such a way that gives the desired impression. However, the program is promosilah which the main communication channels to prospective buyers. He will help us to plan an effective promotional program, if we briefly review our theory of communication and its application to the development tunjuan promotion strategy.
How Communication Works
Basic elements of communication system is the source (source), Message (the message), and the destination (goal). Source of bias that someone (such as commercial officer) or komukasi organizations (such as television, newspapers, or magazines). If consumers are receiving the message has to understand the meaning of the message, he may react in different ways. That is, he may be sending the message further. Communication is between a salesman with a prospective buyer, we need to add a feedback element (feed back) into our concept. Summarized, for effective communication, he must:
1. Attention
2. Using a reference signal to the common experience of the sender (sender) and destination (destination) to be able to understand its meaning.
3. Generating personal needs within a goal (destination) and shows several ways unuk meet those needs.
4. Suggested a way to meet the needs of the group in accordance with the situation, where the objective of getting them at the time he moved to provide the desired taggapan by the source.
This confirms that the importance of the sales program in providing a method - the method appropriate to deliver information and messages to prospective buyers persuatif. And if the task was not carried out effectively, then the entire marketing program will fail.
Solidarity Campaign Setting
To determine the best way to sell products, basic decisions about the nature of the promotion mix might be most effective. Especially how advertising, kewiraniagaan, consumer promotions (contests, prizes, and offers a combination), and dealer promotional activities can be combined into sautu effective sales mix.
Promotion Methods
List of tools - an important promotional tool that can be used to build an effective program penjuaan, are:
1. Ads
2. Kewiraniagaan (Personal Selling)
3. Consumer Promotions. (Gifts, race, Offer Combination)
4. The method aims to stimulate dealer advertising and promotion.
5. Exhibitions and exhibitions.
6. Resiporitas
7. Warranty and service
8. Offer komperatitif.
Choosing a Method Promotion
Because many methods of promotion, then experience shows that different types of products will require a mix of sales materials yag berbedapula This can be compared digambarksndengan industrial product promotion strategy with consumer goods. This triggered the variation in traits - traits competing brands, and also differences in the brand policy, distribution channels and pricing policies, tend to require a difference in the promotion mix to achieve a favorable outcome.
The influence of factors - these factors to base the promotion strategy would be described in the article - the following article:
1. Brands Wisdom influence. A businessman (manufacture) may choose to sell by using its own brand, or with his own brand of the intermediaries, or without wearing the brand.
2. The influence of Distribution Channels. The decision - a fundamental decision about the distribution policy will also affect sales strtegi.
3. The influence of price policy. In determining the price for a product, many differences pratek can dijaankan. In the sutu, seorangpengusaha may decide to compete primarily on price, with the result that only a small margin that can be obtained from these sales activities.
4. The recommended approach to determining promsi strategy.
I K L A N
Ads can digunakn products by entrepreneurs (manufacturers) or by the manufacturer to carry out various tasks as follows:
1. Promote sales of a brand through retailers - retailers that now with a subscription - a new subscription, the making subscriptions - subscriptions are now mebeli more products from the pad of the past.
2. Helping the sales of branded products to consumers by giving the name and address of the selected retailers that provide these products.
3. If the product is sold from house to house, then that product advertising will help sell the brand, with paving the way for its sales force and provide guidance for the salesperson to follow.
4. Distribution separately helps to get a new product, or expand the distribution of an old product, by stimulating demand in the stores - retail shops through consumer advertising, and generate interest in the retailer of the product through advertising aimed at them.
5. Encourage retailers to hold exhibitions, advertising, and are actively selling the product.
6. Expand sales of an industry, or to fend off a worsening sales trends
Larger percentage of entrepreneurs and producers of advertising aimed at raise the share (market) is obtained from the seller's individual brands, the ads are intended to encourage the selective demand.
Assessing Opportunities for Exploiting Consumer Ads
Factor - an important factor to note is as follows:
1. Ads may be more effective if companies follow the trend of primary demand and not vice versa.
2. Which determines the company the opportunity to affect the demand is there ample opportunity for direferensiasi products.
3. Relative role of the hidden qualities of these products to consumers. This hidden quality is the opposite of the qualities that can be viewed and assessed.
4. Motive strong emotional purchase that can be used dlam advertising appeal to consumers.
5. Most important is whether it is operating and Management provides many ways for advertising and promotional products to reach the market to reach.
When are prioritized Better Ad Campaign in Solidarity
Determination process to be used the method begins with a careful assessment of the opportunities that can provide useful contributions to the achievement of goals dikendaki. Ad consumers kedaan should take precedence in the following:
1. If the assessment shows that the condition is very good for the influence that the condition is very good for consumers and influence the assessment to create a quick action through the purchase of consumer advertising.
2. If the analysis leads to the conclusion that is not important in kewiranigaan profitable marketing for this product.
3. If dealers and uasha promotion methods - other sales methods, when used alone, was less hopeful of increasing sales rather than consumer advertising.
Problems - Other Problems of Ad Management
Must take decisions about how much money must be spent for this ad.
1. The media should be chosen that will bring tesebut advertising message.
2. Arrangements must be made for the creation of effective advertising
3. Must take steps - steps to measure the efetivitas ikaln, through the pre - test, as a means to maximize the results from the money spent.
KEWIRANIAGAAN
Kewiraniagaan (Personal Selling) is the second most important element for the executive to determine the combination of promotion in getting orders. Kewiraniagaan goal is:
1. Orders for the product.
2. Make active retailers promote and show off the product sales places.
3. Make a wholesaler (wholesaler) in cooperation with employers (manufacturing) to actively sell the product or to encourage retailers to actively place with advertising sales and sales promotion efforts of others, and
4. Educate those who can influence the purchase to select the company and its products.
Factors - Factors Affecting the Use of Kewirniagaan
Kewiraniagaan (personal Salesmanship) turns out to be an effective method when relatively large amount of purchase, if cirri - product features require explanation and demostrasi, when the goods were purchased in a rare lapse, and if prospective purchase has a long model of the products she wanted to tambahakan rates.
If a consumer needs to sacrifice a lot of the surplus to buy an airplane television, a refrigerator, car or home, it is necessary to persuade power (persuasion) of the sales force to overcome the natural reluctance to buy from potential buyers. Kewiraniagaan aggressive tend to be the essential method for the marketing of such products.
Problems - Other Problems Concerning Management Salespeople
1. How to Recruit and salesperson with Caliber memiih desired.
2. How to train new salespeople so that they can perform their functions effectively.
3. Method salary / reward what to wear.
4. How to encourage people - the person to attempt a maximum in the job.
5. How to supervise people - these people so they use the best - best opportunity - an opportunity that is their area.
6. How to determine areas where people - people operate, and
7. How meniai salespeople's performance.
DEALER PROMOTIONS
Promotions dealers go round a third element into the mix meant by many manufacturing sales in an attempt to get the order. Promotions erbagai types include dealer ads, windows, and interior exhibition, product demonstrations, consumer contests, prizes, use a combination of supply, distribution of free samples - free, and activities - other activities aimed at increasing sales of a particular product brand.
Note that to identify the intermediary kebtuhan retailers by manufacturing brands that are related to the distribution policy of the company. So we followed a specific retailer distribution policy, it is necessary once it was taking steps menufactur - active steps to monitor the local sources with supplai this diindetifikasi brand.
So, the business - especially manufacturing efforts aimed at encouraging dealers to aggressively promote its brand. Dealer sales and advertising assistance may also be a means to facilitate the work dealership promotion. However, manufactur hold little or no advertising on its own brand name.
If the priority is Kewiraniagaan Retail, how far it takes Promotions Dealer?
If manufacturing retail distribution policy followed was elected (selected retail distribution), it is important for him to take active steps to ensure that the dealers identified himself as a local source of supply it. And if not, the desire to check the brand before making a decision to buy may be disappointed by not knowing where to go to get demontrasinya.
A product that requires personal kewiraniagaan aggressive (aggressive personal Salesmanship) by the dealer organization, then these efforts will be most effective if supported by a program of promotion of active dealers. Retail ads, exhibitions, and promotion can bring prospective - prospective buyer ketokonya or stimulate them to ask by phone or by mail. With such assistance, pre salesperson could use the time and talents effectively persuatifnya.
Campaign Encourages method Dealer
1. How far active ang dealer promotion is seen as crucial.
2. Is distribution selected or not.
3. Competitive practices, and
4. Costs related alternative methods.
CONSUMER PROMOTIONS
This consumer promotion aims to get a quick impact ditemapt pmbelian, perhaps together with one or more of the underlying objectives. This consumer promotion usage sngat controversial. It is clear that the need for a strong stimulus in the promotion of the program depends on whether the responses of early buyers (buying early respone) can or can not be expected from the combined effects of consumer advertising, and promotion kewirniagaan dealers.
So the consumer promotion is short-term practical tool which aims to stimulate an immediate response to place of purchase. When applied in appropriate circumstances, together - together with the element - another element in the promotion mix, so its use can give results in short janga. Will etapi, long-term benefits from the use of promotion is more difficult. If he is used to promote examples of coercion (forced sampling) of a new product, long-term benefits it may be achieved. And if it is used in the promotion of the brand that has tekenal and established (established brands), increasing its market share (share of market) is usually only temporary.
Determining combination Promotions
1. Deciding which method of promotion of the various methods which will be incorporated into this mix.
2. Determine whether it is possible to prioritize the most profitable consumer advertising consumer advertising, kewiraniagaan, dealer promotions, or use a method - other sales methods chosen for it. Taksirlah suitability of some of these methods to guide decision pengambilab.
3. Take a decision on how the method - the method is complementary promotion can be combined with the method - the preferred method is to terlaksanakan task - the task of selling the need for maximum effectiveness is achieved from the total mix (total mix) of this. Most of the promotion program is a combination of several methods.
APACS (Adaptive Planning and Control Sequence = Adjustments Planning and Supervision Order)
MSI study is berenaan with how the allocation of funds to blend the ad campaign, kewiraniagaan, and sales promotions in the marketing of products - new products. It also includes the promotion decision-making process from the time the work starts from the planning to the allocation of program funds for activities - certain activities.
According to APACS concept consists of 8 steps in decision-making process of that campaign, among others:
1. Formulate an issue and implement goals.
2. Assess the overall situation. Determine the market potential, manufacturing cost pricing policy, etc. as well as review past experiences.
3. Determine the tasks and get to know a tool - a tool.
4. Know the plan - a plan and mix - the combination alternative.
5. Taksrlah results - expected results. Use considerations and experience in line, field tests, and any management science techniques appropriate to predict the outcome based on the criteria for acceptable performance.
6. Review and decision by management.
7. Feedback from the results - the results and post audit.
8. Adjust the program if necessary. Revision or another strong goals, sub goals, and expenditure - expenditure required.
a) If at this stage no agreement can be obtained, or was this program is not possible, return to the previous stage and recycling (recycle) as needed.
b) Continue with the problem - another problem, if the plan has achieved a satisfactory allocation of the campaign.
B. FUND SET PROMOTION
The task is to determine campaign funds is a key factor, because the major decisions will be very influential on efetivitas promotion programs, and hence to profits. Its main purpose is to provide essential background for pendekan - for a total pendekan this promotion efforts in a particular year, or in terms of new products, for a period of several years.
APPROACH TO DETERMINE separately usual PERDANAAN
There are 4 methods on a common approach undertaken by the company - a company trading in real practice, among others:
1. Percentage of sales.
2. All funds are available
3. Competitive parity
4. Destination research
In conducting a survey of approaches to determine the advertising budget for the Association of National Advertisers few years ago, Ricard Webster declared that the installer ilan using two-way classification first - first suggested by CM Edwards and W.H. Horward:
1. Method of breakdown and
2. Method of life
Breakdown method is described as providing a number of funds that will dieluarkan (Disbursed) by the ads that are considered suitable, and the method is characterized builup-funding cirri analyze exactly how the money will be spent.
Percentage of Sales
A common approach under the classification breakdown is the number of round (lump sum) for the ad is determined by shifting their dollar sales by a certain percentage. The variation of this is to replace rencan percentage points with a certain dollar amount per unit and multiplying this number with the dollar sales (dollar sales).
Fixed Percentage Percentage Opponent Changed
This approach is quick and easy. The next gain is retained in the fund's limits - limits the ability of the company (because pengeluaranya associated with income). If all or most of its rivals in an industry using this method and applying the same percentage of sales, then the rival ads pengeuaran would think - about equal (proportional) with its market share (market share).
The most important is the fact that the fixed percentage method of sale is assumed that the funds must be ad meerupakan results achieved from the sale and not the cause of the increase in sales. In accordance with budget constraints, this percentage can be modified to reflect changes in competition, the responsiveness of the buyer, and the condition of the company.
If this ad terutamaa funds is determined by the amount of work to be done in any given year, executives may provide an amount for profit in the period when it is estimated that income in one or two next year will offset the expenditures figures.
Past Sales Future Sales opponent as Base
In the year - the year before, the percentage figures which are often used is the sale of the past to raise the ad. This approach may cause the fund is too small or too large, depending on how the sales prospects for the coming year with dibandngkan recent years past. Looking backward can also make a company lose its best opportunity to maintain or expand its position in the industry. The most serious weakness when it is used by fixed percentage of the sales and not make a sale.
Because of this ketrbatsan, the percentage of sales approach the past has largely been abandoned people. Instead, future sales is more widely used. If future sales is used, then the advertising revenue that would be more in accordance with market conditions than the estimates using past sales. However, it must be remembered that the percentage of sales approach this future is still giving tekananutama to maintain ad spending within limits - the company's ability bats, take into account the constraints - constraints of the operating budget for the coming year.
All the Funds Available
An extreme example of this breakdown is pendektan where a company to allocate a portion of the available likwidnya funds and funds that can be borrowed to support the advertising program. Seluaruh approach ono tresedia funds may be closer to supporting the implementation of tasks - tasks that need promotion of the fund when it was limited to an agreed percentage of sales in accordance with the operating budget of any given year.
Ads can be expected to deliver profitable results ultimately Sagat, but financial difficulties may occur if ignored short-term cash and credit limit on advertising expenses. Therefore financial management must bus campaign spending limits according to the company's ability. This leads to the most serious weaknesses of the approach to "all funds are available" this. The weakness is the lack of logical relationship between the provision of funds by advertising opportunity.
So approach "all funds are available" is most - most only be an urgent steps are temporary that may be able to meet the needs of a new company that is less funding, or a company working capital deficiency because of rapid growth.
Competitive parity
Guiding principle of competitive parity approach is that advertising revenue based on some systematic way to what is done by the rival. This approach may be well on the grounds that the ratio of these industries is the policy with the competition. In spite of this weakness, but can sikemukakan that this competitive parity approach can avoid war if the method of advertisements - which followed other methods to get funds this ad. Information on funds - funds which are usually not announced planned by the decision makers, and estimates of ad spending is obtained by organizations - research organizations through the calculation of advertising - advertising and media use published rate, generally available only after much time had passed.
Although the competitive parity is not meant to establish funds for new brand advertising, but this approach may be more defensible for a company with an established brand that is second or third rank in an oligopolistic industry. Advertising spending from the rival, of course, will mempengarui required amount of expenditure to achieve increased market share desired. But the grasp (responsivenses) market for corporate brand is also influenced by factors - other factors, such as advertising opportunities and effectiveness of the marketing mix (Marketing Mix).
A more sophisticated variation of this competitive parity approach is to make the product portion of the total ad pengualan industries with the desired portion of the market this brand. Ang market position achieved by a brand tends to be influenced by how he compared to the brand - brand rival views of product innovation, quality distribution organization, and also the amount allocated for expenditure kewiraniagaan (personal selling), sales promotion, and finally to the ad.
Research Objectives
Research is a method in which the work buidup be implemented that take precedence, while pendekan 'all funds are available', the percentage of sales approach, and competitive parity approach to using the funds in the money round for the ad which then broken - broken by a special type of method and media campaigns as deemed appropriate by the ad executive.
Under this method of research goals, the first - the first company research mlaksanakan as dalm guidelines set goals - goals that deserve to advertising next year. The approach of this research purpose, if applied correctly, clearly superior to the method - the method already discussed. This approach also means that management depends on research to get the facts - facts as the basis for decisions - decisions about the target - a suitable target, the appropriate method, and the amount of promotional effort is needed to achieve the desired objectives.
The main weakness of this approach to research purposes is commonly stated that he does not need to determine whether the decision to set goals that might provide a greater contribution than the cost to achieve them. This criticism has 2 (two) terms:
1. Although this approach requires the research objectives identified goals - goals that deserve, but he did not specify that the target - this target should be associated with the desired increase in sales. Target - This target is useful to guide you in planning promotional programs, but not much use for the development of advertising revenue determination. So to associate target komukasi degan results - the sale of ingenuity needed research, which is not stated as a requirement by the general definition of the methods of research purposes.
2. This method does not determine the research objectives that the value of achieving this goal is measured by the dihasilakannya additional income. This information is of course required if an alternative destination to be judged as appropriate and determined targets - the most appropriate target.
From the criticism was going to face challenges - challenges of the research problem:
1. Determine how much advertising is needed and what type to achieve goals - goals that have been determined
2. Assessing additional sales may be obtained from the achievement of goals - communication objectives have been determined.
Despite the difficulty challenging, but the approach that the research objectives have been modified it can direct the analysis and research to uasaha channel - a channel that gives hope.
Ads For Investment
Ads that have immediate effects are considered dapatah now sebgai costs (current expence), but the new ad gives the results in the future is to be an investment and should be treated that way. If management was willing menggap advertising as an investment and mennggu up to 3 years or more to be memunggut results, and to approve the strategy proposed advertising budget and take steps - steps to develop the full potential of this new brand. So the ads are expected to have long-term effects should be placed in the capital budget. Investment promotion should be competing for funds based on the returns (profitability).
The weakness of the ROI (return on investment / return on investment) this is the difficulty of estimating the rate of return earned from investing these ads. Problems - problems that were found include:
1. Distinguish ads from the advertising investment that allegedly has a long-term effects.
2. Estimating evaporation (evaporation) from the cumulative effect of advertising, and
3. Measuring the cumulative effects of advertising on the long-term sales volume and premium prices in the end.
Research To Determine Level of Expenditure
A basic problem to set advertising budget is to determine how much advertising is needed to achieve a predetermined target. Experiment with different levels of advertising expenditures in various test markets is one way to solve this problem. Please note that the researchers (sesearchers) is unable to obtain the cooperation of retailers to allow measurement of sales through retail audit approach (retailaudit appoarch).
Relationship Between Ad Spending By Portion Market Destination
The aim was to determine whether to develop guidelines that allows the analysis of past experience on the relationship between advertising expenditures to the goals of market share. Almost without exception, brands are developed for the study using adequate consumer products, introduced into the world trade by a skilled salesman (skilled sales force).
Relationship Between the Results of Communication Objectives - Sales Results
Manufacturing goods - durable goods that find it difficult, if not impossible, to measure the results - the results of advertising sales. This led them to megambil goals komukasi for their ads instead of the sales or portion of the target - the target indusrinya. Then there masalahuntuk decide whether goals - the desired goal is more valuable than the cost to achieve them. This experimentation approach produces the development of "schedule - the media" to set the advertising budget, a method which includes the categories of research objectives and related usage - practical use of the ideal approach - incremental already discussed.
Recognized that the effectiveness of an ad posted several times in a medium (such as a magazine) is the result of a series of filters think - about as follows:
The magazine has a total circulation of people - people who are potential buyers or "influencers".
1. Surely that read this magazine so much more.
2. Some people are smaller in number than the magazine's readers 'terdadah (Exposed)' on the page where the ad appears.
3. Some people are even less true - really pay attention to these ads.
4. Some young again received a conscious impression.
5. Conscious impression that:
# Make a couple of readers for the first time aware of the product.
# Strengthening awareness now existing in the person - someone else.
# Move some people from consciousness only to forable attitude.
# Move some people to buy.
By understanding the circuit filter (screening sequence), then the research carried out separately to determine the relationship between:
1. Impression - the impression conscious.
2. Awareness and attitude forable, and
3. Purchase products.
If hubunagn it has been determined, then the next step is to determine yng jmlah conscious impression can be obtained through a variety of media schedules. Advertiser (advertiser) can then determine the funding, the optimum ad.
Promotions That Concerning Communications
Sharp part of the marketing tools is the message (message) which dikomukasikan directly to prospective buyers through the various elements of the promotional program. If prospective buyers know products company, means a particular impression has been conveyed (either positive or negative impression) with such a product can be regarded as a symbol of communication. It is in fact the product has an "image" in the minds of the prospective buyer, so a trademark or the name of it is a symbol that conveys a message to prospective buyers. Menkomunikasikan packaging of goods is also ideas to increase or decrease the product image. Price also shows the idea of quality, and consumer image of the product sold.
Realization of the way - the way in which aspect - aspect of this marketing program increase or decrease the image of the product confirmed the importance of communication factors - these factors and the importance of membentukunya such a way that gives the desired impression. However, the program is promosilah which the main communication channels to prospective buyers. He will help us to plan an effective promotional program, if we briefly review our theory of communication and its application to the development tunjuan promotion strategy.
How Communication Works
Basic elements of communication system is the source (source), Message (the message), and the destination (goal). Source of bias that someone (such as commercial officer) or komukasi organizations (such as television, newspapers, or magazines). If consumers are receiving the message has to understand the meaning of the message, he may react in different ways. That is, he may be sending the message further. Communication is between a salesman with a prospective buyer, we need to add a feedback element (feed back) into our concept. Summarized, for effective communication, he must:
1. Attention
2. Using a reference signal to the common experience of the sender (sender) and destination (destination) to be able to understand its meaning.
3. Generating personal needs within a goal (destination) and shows several ways unuk meet those needs.
4. Suggested a way to meet the needs of the group in accordance with the situation, where the objective of getting them at the time he moved to provide the desired taggapan by the source.
This confirms that the importance of the sales program in providing a method - the method appropriate to deliver information and messages to prospective buyers persuatif. And if the task was not carried out effectively, then the entire marketing program will fail.
Solidarity Campaign Setting
To determine the best way to sell products, basic decisions about the nature of the promotion mix might be most effective. Especially how advertising, kewiraniagaan, consumer promotions (contests, prizes, and offers a combination), and dealer promotional activities can be combined into sautu effective sales mix.
Promotion Methods
List of tools - an important promotional tool that can be used to build an effective program penjuaan, are:
1. Ads
2. Kewiraniagaan (Personal Selling)
3. Consumer Promotions. (Gifts, race, Offer Combination)
4. The method aims to stimulate dealer advertising and promotion.
5. Exhibitions and exhibitions.
6. Resiporitas
7. Warranty and service
8. Offer komperatitif.
Choosing a Method Promotion
Because many methods of promotion, then experience shows that different types of products will require a mix of sales materials yag berbedapula This can be compared digambarksndengan industrial product promotion strategy with consumer goods. This triggered the variation in traits - traits competing brands, and also differences in the brand policy, distribution channels and pricing policies, tend to require a difference in the promotion mix to achieve a favorable outcome.
The influence of factors - these factors to base the promotion strategy would be described in the article - the following article:
1. Brands Wisdom influence. A businessman (manufacture) may choose to sell by using its own brand, or with his own brand of the intermediaries, or without wearing the brand.
2. The influence of Distribution Channels. The decision - a fundamental decision about the distribution policy will also affect sales strtegi.
3. The influence of price policy. In determining the price for a product, many differences pratek can dijaankan. In the sutu, seorangpengusaha may decide to compete primarily on price, with the result that only a small margin that can be obtained from these sales activities.
4. The recommended approach to determining promsi strategy.
I K L A N
Ads can digunakn products by entrepreneurs (manufacturers) or by the manufacturer to carry out various tasks as follows:
1. Promote sales of a brand through retailers - retailers that now with a subscription - a new subscription, the making subscriptions - subscriptions are now mebeli more products from the pad of the past.
2. Helping the sales of branded products to consumers by giving the name and address of the selected retailers that provide these products.
3. If the product is sold from house to house, then that product advertising will help sell the brand, with paving the way for its sales force and provide guidance for the salesperson to follow.
4. Distribution separately helps to get a new product, or expand the distribution of an old product, by stimulating demand in the stores - retail shops through consumer advertising, and generate interest in the retailer of the product through advertising aimed at them.
5. Encourage retailers to hold exhibitions, advertising, and are actively selling the product.
6. Expand sales of an industry, or to fend off a worsening sales trends
Larger percentage of entrepreneurs and producers of advertising aimed at raise the share (market) is obtained from the seller's individual brands, the ads are intended to encourage the selective demand.
Assessing Opportunities for Exploiting Consumer Ads
Factor - an important factor to note is as follows:
1. Ads may be more effective if companies follow the trend of primary demand and not vice versa.
2. Which determines the company the opportunity to affect the demand is there ample opportunity for direferensiasi products.
3. Relative role of the hidden qualities of these products to consumers. This hidden quality is the opposite of the qualities that can be viewed and assessed.
4. Motive strong emotional purchase that can be used dlam advertising appeal to consumers.
5. Most important is whether it is operating and Management provides many ways for advertising and promotional products to reach the market to reach.
When are prioritized Better Ad Campaign in Solidarity
Determination process to be used the method begins with a careful assessment of the opportunities that can provide useful contributions to the achievement of goals dikendaki. Ad consumers kedaan should take precedence in the following:
1. If the assessment shows that the condition is very good for the influence that the condition is very good for consumers and influence the assessment to create a quick action through the purchase of consumer advertising.
2. If the analysis leads to the conclusion that is not important in kewiranigaan profitable marketing for this product.
3. If dealers and uasha promotion methods - other sales methods, when used alone, was less hopeful of increasing sales rather than consumer advertising.
Problems - Other Problems of Ad Management
Must take decisions about how much money must be spent for this ad.
1. The media should be chosen that will bring tesebut advertising message.
2. Arrangements must be made for the creation of effective advertising
3. Must take steps - steps to measure the efetivitas ikaln, through the pre - test, as a means to maximize the results from the money spent.
KEWIRANIAGAAN
Kewiraniagaan (Personal Selling) is the second most important element for the executive to determine the combination of promotion in getting orders. Kewiraniagaan goal is:
1. Orders for the product.
2. Make active retailers promote and show off the product sales places.
3. Make a wholesaler (wholesaler) in cooperation with employers (manufacturing) to actively sell the product or to encourage retailers to actively place with advertising sales and sales promotion efforts of others, and
4. Educate those who can influence the purchase to select the company and its products.
Factors - Factors Affecting the Use of Kewirniagaan
Kewiraniagaan (personal Salesmanship) turns out to be an effective method when relatively large amount of purchase, if cirri - product features require explanation and demostrasi, when the goods were purchased in a rare lapse, and if prospective purchase has a long model of the products she wanted to tambahakan rates.
If a consumer needs to sacrifice a lot of the surplus to buy an airplane television, a refrigerator, car or home, it is necessary to persuade power (persuasion) of the sales force to overcome the natural reluctance to buy from potential buyers. Kewiraniagaan aggressive tend to be the essential method for the marketing of such products.
Problems - Other Problems Concerning Management Salespeople
1. How to Recruit and salesperson with Caliber memiih desired.
2. How to train new salespeople so that they can perform their functions effectively.
3. Method salary / reward what to wear.
4. How to encourage people - the person to attempt a maximum in the job.
5. How to supervise people - these people so they use the best - best opportunity - an opportunity that is their area.
6. How to determine areas where people - people operate, and
7. How meniai salespeople's performance.
DEALER PROMOTIONS
Promotions dealers go round a third element into the mix meant by many manufacturing sales in an attempt to get the order. Promotions erbagai types include dealer ads, windows, and interior exhibition, product demonstrations, consumer contests, prizes, use a combination of supply, distribution of free samples - free, and activities - other activities aimed at increasing sales of a particular product brand.
Note that to identify the intermediary kebtuhan retailers by manufacturing brands that are related to the distribution policy of the company. So we followed a specific retailer distribution policy, it is necessary once it was taking steps menufactur - active steps to monitor the local sources with supplai this diindetifikasi brand.
So, the business - especially manufacturing efforts aimed at encouraging dealers to aggressively promote its brand. Dealer sales and advertising assistance may also be a means to facilitate the work dealership promotion. However, manufactur hold little or no advertising on its own brand name.
If the priority is Kewiraniagaan Retail, how far it takes Promotions Dealer?
If manufacturing retail distribution policy followed was elected (selected retail distribution), it is important for him to take active steps to ensure that the dealers identified himself as a local source of supply it. And if not, the desire to check the brand before making a decision to buy may be disappointed by not knowing where to go to get demontrasinya.
A product that requires personal kewiraniagaan aggressive (aggressive personal Salesmanship) by the dealer organization, then these efforts will be most effective if supported by a program of promotion of active dealers. Retail ads, exhibitions, and promotion can bring prospective - prospective buyer ketokonya or stimulate them to ask by phone or by mail. With such assistance, pre salesperson could use the time and talents effectively persuatifnya.
Campaign Encourages method Dealer
1. How far active ang dealer promotion is seen as crucial.
2. Is distribution selected or not.
3. Competitive practices, and
4. Costs related alternative methods.
CONSUMER PROMOTIONS
This consumer promotion aims to get a quick impact ditemapt pmbelian, perhaps together with one or more of the underlying objectives. This consumer promotion usage sngat controversial. It is clear that the need for a strong stimulus in the promotion of the program depends on whether the responses of early buyers (buying early respone) can or can not be expected from the combined effects of consumer advertising, and promotion kewirniagaan dealers.
So the consumer promotion is short-term practical tool which aims to stimulate an immediate response to place of purchase. When applied in appropriate circumstances, together - together with the element - another element in the promotion mix, so its use can give results in short janga. Will etapi, long-term benefits from the use of promotion is more difficult. If he is used to promote examples of coercion (forced sampling) of a new product, long-term benefits it may be achieved. And if it is used in the promotion of the brand that has tekenal and established (established brands), increasing its market share (share of market) is usually only temporary.
Determining combination Promotions
1. Deciding which method of promotion of the various methods which will be incorporated into this mix.
2. Determine whether it is possible to prioritize the most profitable consumer advertising consumer advertising, kewiraniagaan, dealer promotions, or use a method - other sales methods chosen for it. Taksirlah suitability of some of these methods to guide decision pengambilab.
3. Take a decision on how the method - the method is complementary promotion can be combined with the method - the preferred method is to terlaksanakan task - the task of selling the need for maximum effectiveness is achieved from the total mix (total mix) of this. Most of the promotion program is a combination of several methods.
APACS (Adaptive Planning and Control Sequence = Adjustments Planning and Supervision Order)
MSI study is berenaan with how the allocation of funds to blend the ad campaign, kewiraniagaan, and sales promotions in the marketing of products - new products. It also includes the promotion decision-making process from the time the work starts from the planning to the allocation of program funds for activities - certain activities.
According to APACS concept consists of 8 steps in decision-making process of that campaign, among others:
1. Formulate an issue and implement goals.
2. Assess the overall situation. Determine the market potential, manufacturing cost pricing policy, etc. as well as review past experiences.
3. Determine the tasks and get to know a tool - a tool.
4. Know the plan - a plan and mix - the combination alternative.
5. Taksrlah results - expected results. Use considerations and experience in line, field tests, and any management science techniques appropriate to predict the outcome based on the criteria for acceptable performance.
6. Review and decision by management.
7. Feedback from the results - the results and post audit.
8. Adjust the program if necessary. Revision or another strong goals, sub goals, and expenditure - expenditure required.
a) If at this stage no agreement can be obtained, or was this program is not possible, return to the previous stage and recycling (recycle) as needed.
b) Continue with the problem - another problem, if the plan has achieved a satisfactory allocation of the campaign.
B. FUND SET PROMOTION
The task is to determine campaign funds is a key factor, because the major decisions will be very influential on efetivitas promotion programs, and hence to profits. Its main purpose is to provide essential background for pendekan - for a total pendekan this promotion efforts in a particular year, or in terms of new products, for a period of several years.
APPROACH TO DETERMINE separately usual PERDANAAN
There are 4 methods on a common approach undertaken by the company - a company trading in real practice, among others:
1. Percentage of sales.
2. All funds are available
3. Competitive parity
4. Destination research
In conducting a survey of approaches to determine the advertising budget for the Association of National Advertisers few years ago, Ricard Webster declared that the installer ilan using two-way classification first - first suggested by CM Edwards and W.H. Horward:
1. Method of breakdown and
2. Method of life
Breakdown method is described as providing a number of funds that will dieluarkan (Disbursed) by the ads that are considered suitable, and the method is characterized builup-funding cirri analyze exactly how the money will be spent.
Percentage of Sales
A common approach under the classification breakdown is the number of round (lump sum) for the ad is determined by shifting their dollar sales by a certain percentage. The variation of this is to replace rencan percentage points with a certain dollar amount per unit and multiplying this number with the dollar sales (dollar sales).
Fixed Percentage Percentage Opponent Changed
This approach is quick and easy. The next gain is retained in the fund's limits - limits the ability of the company (because pengeluaranya associated with income). If all or most of its rivals in an industry using this method and applying the same percentage of sales, then the rival ads pengeuaran would think - about equal (proportional) with its market share (market share).
The most important is the fact that the fixed percentage method of sale is assumed that the funds must be ad meerupakan results achieved from the sale and not the cause of the increase in sales. In accordance with budget constraints, this percentage can be modified to reflect changes in competition, the responsiveness of the buyer, and the condition of the company.
If this ad terutamaa funds is determined by the amount of work to be done in any given year, executives may provide an amount for profit in the period when it is estimated that income in one or two next year will offset the expenditures figures.
Past Sales Future Sales opponent as Base
In the year - the year before, the percentage figures which are often used is the sale of the past to raise the ad. This approach may cause the fund is too small or too large, depending on how the sales prospects for the coming year with dibandngkan recent years past. Looking backward can also make a company lose its best opportunity to maintain or expand its position in the industry. The most serious weakness when it is used by fixed percentage of the sales and not make a sale.
Because of this ketrbatsan, the percentage of sales approach the past has largely been abandoned people. Instead, future sales is more widely used. If future sales is used, then the advertising revenue that would be more in accordance with market conditions than the estimates using past sales. However, it must be remembered that the percentage of sales approach this future is still giving tekananutama to maintain ad spending within limits - the company's ability bats, take into account the constraints - constraints of the operating budget for the coming year.
All the Funds Available
An extreme example of this breakdown is pendektan where a company to allocate a portion of the available likwidnya funds and funds that can be borrowed to support the advertising program. Seluaruh approach ono tresedia funds may be closer to supporting the implementation of tasks - tasks that need promotion of the fund when it was limited to an agreed percentage of sales in accordance with the operating budget of any given year.
Ads can be expected to deliver profitable results ultimately Sagat, but financial difficulties may occur if ignored short-term cash and credit limit on advertising expenses. Therefore financial management must bus campaign spending limits according to the company's ability. This leads to the most serious weaknesses of the approach to "all funds are available" this. The weakness is the lack of logical relationship between the provision of funds by advertising opportunity.
So approach "all funds are available" is most - most only be an urgent steps are temporary that may be able to meet the needs of a new company that is less funding, or a company working capital deficiency because of rapid growth.
Competitive parity
Guiding principle of competitive parity approach is that advertising revenue based on some systematic way to what is done by the rival. This approach may be well on the grounds that the ratio of these industries is the policy with the competition. In spite of this weakness, but can sikemukakan that this competitive parity approach can avoid war if the method of advertisements - which followed other methods to get funds this ad. Information on funds - funds which are usually not announced planned by the decision makers, and estimates of ad spending is obtained by organizations - research organizations through the calculation of advertising - advertising and media use published rate, generally available only after much time had passed.
Although the competitive parity is not meant to establish funds for new brand advertising, but this approach may be more defensible for a company with an established brand that is second or third rank in an oligopolistic industry. Advertising spending from the rival, of course, will mempengarui required amount of expenditure to achieve increased market share desired. But the grasp (responsivenses) market for corporate brand is also influenced by factors - other factors, such as advertising opportunities and effectiveness of the marketing mix (Marketing Mix).
A more sophisticated variation of this competitive parity approach is to make the product portion of the total ad pengualan industries with the desired portion of the market this brand. Ang market position achieved by a brand tends to be influenced by how he compared to the brand - brand rival views of product innovation, quality distribution organization, and also the amount allocated for expenditure kewiraniagaan (personal selling), sales promotion, and finally to the ad.
Research Objectives
Research is a method in which the work buidup be implemented that take precedence, while pendekan 'all funds are available', the percentage of sales approach, and competitive parity approach to using the funds in the money round for the ad which then broken - broken by a special type of method and media campaigns as deemed appropriate by the ad executive.
Under this method of research goals, the first - the first company research mlaksanakan as dalm guidelines set goals - goals that deserve to advertising next year. The approach of this research purpose, if applied correctly, clearly superior to the method - the method already discussed. This approach also means that management depends on research to get the facts - facts as the basis for decisions - decisions about the target - a suitable target, the appropriate method, and the amount of promotional effort is needed to achieve the desired objectives.
The main weakness of this approach to research purposes is commonly stated that he does not need to determine whether the decision to set goals that might provide a greater contribution than the cost to achieve them. This criticism has 2 (two) terms:
1. Although this approach requires the research objectives identified goals - goals that deserve, but he did not specify that the target - this target should be associated with the desired increase in sales. Target - This target is useful to guide you in planning promotional programs, but not much use for the development of advertising revenue determination. So to associate target komukasi degan results - the sale of ingenuity needed research, which is not stated as a requirement by the general definition of the methods of research purposes.
2. This method does not determine the research objectives that the value of achieving this goal is measured by the dihasilakannya additional income. This information is of course required if an alternative destination to be judged as appropriate and determined targets - the most appropriate target.
From the criticism was going to face challenges - challenges of the research problem:
1. Determine how much advertising is needed and what type to achieve goals - goals that have been determined
2. Assessing additional sales may be obtained from the achievement of goals - communication objectives have been determined.
Despite the difficulty challenging, but the approach that the research objectives have been modified it can direct the analysis and research to uasaha channel - a channel that gives hope.
Ads For Investment
Ads that have immediate effects are considered dapatah now sebgai costs (current expence), but the new ad gives the results in the future is to be an investment and should be treated that way. If management was willing menggap advertising as an investment and mennggu up to 3 years or more to be memunggut results, and to approve the strategy proposed advertising budget and take steps - steps to develop the full potential of this new brand. So the ads are expected to have long-term effects should be placed in the capital budget. Investment promotion should be competing for funds based on the returns (profitability).
The weakness of the ROI (return on investment / return on investment) this is the difficulty of estimating the rate of return earned from investing these ads. Problems - problems that were found include:
1. Distinguish ads from the advertising investment that allegedly has a long-term effects.
2. Estimating evaporation (evaporation) from the cumulative effect of advertising, and
3. Measuring the cumulative effects of advertising on the long-term sales volume and premium prices in the end.
Research To Determine Level of Expenditure
A basic problem to set advertising budget is to determine how much advertising is needed to achieve a predetermined target. Experiment with different levels of advertising expenditures in various test markets is one way to solve this problem. Please note that the researchers (sesearchers) is unable to obtain the cooperation of retailers to allow measurement of sales through retail audit approach (retailaudit appoarch).
Relationship Between Ad Spending By Portion Market Destination
The aim was to determine whether to develop guidelines that allows the analysis of past experience on the relationship between advertising expenditures to the goals of market share. Almost without exception, brands are developed for the study using adequate consumer products, introduced into the world trade by a skilled salesman (skilled sales force).
Relationship Between the Results of Communication Objectives - Sales Results
Manufacturing goods - durable goods that find it difficult, if not impossible, to measure the results - the results of advertising sales. This led them to megambil goals komukasi for their ads instead of the sales or portion of the target - the target indusrinya. Then there masalahuntuk decide whether goals - the desired goal is more valuable than the cost to achieve them. This experimentation approach produces the development of "schedule - the media" to set the advertising budget, a method which includes the categories of research objectives and related usage - practical use of the ideal approach - incremental already discussed.
Recognized that the effectiveness of an ad posted several times in a medium (such as a magazine) is the result of a series of filters think - about as follows:
The magazine has a total circulation of people - people who are potential buyers or "influencers".
1. Surely that read this magazine so much more.
2. Some people are smaller in number than the magazine's readers 'terdadah (Exposed)' on the page where the ad appears.
3. Some people are even less true - really pay attention to these ads.
4. Some young again received a conscious impression.
5. Conscious impression that:
# Make a couple of readers for the first time aware of the product.
# Strengthening awareness now existing in the person - someone else.
# Move some people from consciousness only to forable attitude.
# Move some people to buy.
By understanding the circuit filter (screening sequence), then the research carried out separately to determine the relationship between:
1. Impression - the impression conscious.
2. Awareness and attitude forable, and
3. Purchase products.
If hubunagn it has been determined, then the next step is to determine yng jmlah conscious impression can be obtained through a variety of media schedules. Advertiser (advertiser) can then determine the funding, the optimum ad.
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