Accounting Information System in Beximco Pharmaceuticals LTD

We have identified one of the major components of the accounting information system of Beximco Pharmaceuticals LTD (BPL) – Expenditure Cycle —the technology, the output and users and the control mechanism related to this cycle. Some of them are input to the system, some work to process the input and some represent the output. The operational headquarter of BPL is linked to the corporate headquarters through fiber optic cable. It maintains the radio link between the factory and the head office and all distribution centers through dial up internet.

Beximco Pharmaceuticals LTD uses an accounting software ‘MAPICS’ for its transaction processing purpose. ‘MAPICS’ is the acronym of ‘Management Accounting Planning Information Control system. MAPICS is batch processing software. In BPL transactions are entered in batches for a month and the batch is then posted and reports are generated according to predesigned format. BPL uses the following modules of MAPICS:

  • General Ledger
  • Budget Preparation
  • Financial Ratio Analysis
  • Fixed Asset Accounting
  • Accounts Receivable
  • L C Monitoring system

Apart from MAPICS, BPL uses some other software for accounting purposes such as:

  • Fixed Asset Management System
  • Payroll system
  • Inventory Control system
  • Sales and billing system
  • Production Information system

Furthermore, MS Excel is broadly used by the accounts department.

The expenditure cycle of BPL includes:

  • Acquisition of raw and packing materials
  • Local Purchase
  • Import
  • Acquisition of fixed assets
  • Other revenue expenditure

The Accounting information system enables the functioning of acquisition and import of raw & packing materials in an efficient manner regarding the processing of purchase orders, receiving goods, materials and services, recognizing the liability and processing cash disbursement, opening and processing L/C etc. by using MAPICS software and MS EXCEL worksheets.
The acquisition of fixed assets functions are being kept by recording aspects regarding input information, information processing and output information followed by preparing external and internal reports. BPL maintains a separate module named “Fixed Asset Accounting” in MAPICS where journal entries are given to record the acquisition of fixed assets, replacement, renewal and disposition of fixed assets and related depreciation according to the rate. In the MAPICS, only control ledgers for principal categories of assets are kept. For the purpose of keeping subsidiary ledger, a separate software named ‘Fixed Assets Management System’ is used where another person gives entry for the same transaction. This is basically a duplication of work.
Keeping record of revenue expenditure namely factory overhead, administrative overhead, selling and distribution expense through recording aspects regarding input information, information processing and output information followed by preparing external and internal reports.

The Revenue cycle of BPL are as follows:

  • Receiving Customer inquiries and taking customer orders
  • Shipping goods to the customer &
  • Billing the customer
  • Handling sales return , Discount allowance and bad debts
  • Cash collection

The customers usually place order through internet or by mail. Regardless of how an order is initially received, the system quickly verifies customer creditworthiness, checks inventory availability and notifies the warehouse and shipping departments about the approved sale. The warehouse and shipping personnel enters data about their activities as soon as they are performed, thereby updating information about inventory status in real time. The invoice program generates paper or electronic invoices for customers who require invoices. The customers sends the payment through bank. The Software ‘Sales and Billing Systems’ are used to process all this activities. Each time the bank sends BPL a file containing remittance data, which the cashier uses to update the cash account balances and the accounts receivable clerk uses to update customer accounts.

The production Cycle of BPL are as follows:

  • Forecast , plan and schedule production
  • Request raw materials for production
  • Accumulate costs for product manufactured.

The sales department enters information about sales forecast and customer orders. The production planning department uses this information and current inventory levels develop the production schedule and create new records in the in the production order file to authorize the production of specific goods. The software Production Information system and inventory control system aids in the process. At the same time, new records are added to the work in process file to accumulate cost data. Materials requisition are sent to the inventory store department to authorize the release of raw materials.


The financing cycle of BPL are as follows:

  • Forecast cash needs
  • Sell securities to investors
  • Borrow money from lenders
  • Pay dividend to investors and interest to lenders

The treasury department estimates the needs of cash on the basis of past events and the information from other cycle. If cash required, the top level executives of finance department authorizes the borrowing of money from different lenders. The finance department issues debt instrument to lenders followed by the series of interest payments and the repayment of debt. Also, a company issues stock to investors to raise capital to meet the cash requirement to control cash inflows and cash outflows.


The General Ledger and reporting system are as follows:

  • Collecting information from other cycles and update the general ledger
  • Posting adjusting entries
  • Prepare financial statements
  • Producing Managerial reports


The General ledger are updated for each individual transactions happened in the other cycle. The treasures provides information for non-routine transactions to update the general ledger and those are also stored in the journal voucher file. Then the adjusting entries need to be posted after the initial trial balance has been prepared to follow revenue recognition principle and expense recognition principles. Even if it is needed, the correcting entries are given to counteract the errors found in the general ledger. Then an adjusted trial balance is prepared to lead to the next steps to prepare the financial statements. In the meantime the closing entries are given to zero out all the revenue and expense account and to transfer the net income to retained earnings. Then a management report is prepared in the form of budgetary statement to help management accountants plan and evaluate the information. We have also heard that accounts executives of BPL sometimes evaluate the performance based on the balanced scorecard and sometimes on benchmarking technique.

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