Credit control is a database and it tells the company when payments
need to be made. By implementing a credit control procedure manual
Boots are enforcing the company's individual characteristics. They are
showing they have management and company values that will inform their
customers that they have presence, confidence, diligence, and that
they are prepared. Companies that have these values are less likely to
suffer from late payment or bad debt (aged debts). Controlling their
company's credit, when they no longer control their debtors the cost
of financing their company's cash flow is at the mercy of those very
same debtors. Boots need this ...view middle of the document...
Increasingly suppliers are receiving payment directly into their Bank Account via BACS, the automated clearing system. This means that cleared funds are available on the day you are paid - unlike the time delay associated with cheques, there is no possibility of cheques getting lost or delayed in the post, you are saved the time and trouble of paying cheques into your bank account, accounting procedures are simplified and administrative costs reduced.
Boots would use this when they owe money to the suppliers because they have bought their food from them like the sweets the drink they sell. Boots needs this because when they pay the creditors by cheques they can get lost so the creditors will think that they haven't paid causing the company to go into debt with the creditors.
Payroll is a special program to calculate the monthly payroll and it prints out payslips automatically. So Boots would use this at the end of the month when they want to pay their staff so the computer knows whether to send the money directly to the staff's bank, give the staff it in cash or give them it in a cheque. It is needed so there is no confusion on who gets what money and no one will need to add all the money out it is done for you automatically.
Description of ICT system used in finance
The hardware that is needed to perform the tasks above is monitors, keyboards, mouse's, random access memory, a processor, and cables (see previous pages). The software that boots use in finance is Microsoft Excel and Microsoft Word (see previous pages).
Boots use this hardware in finance because the monitors display all the information what is stored on the computer just like a television set. So they use the monitors because they need them to perform all the tasks on the computer that are to do with finance like looking at previous profits. They use keyboards because they are used...