Finance And Accounting Information System Accounting Essay

One of the richest and largest Indian air hoses and the market leader in the domestic sector Jet Airways started as a major commercial Indian air hose on 5th May 1993 with a fleet of four Boeing 737-300 aircraft. The most of import domestic hubs are located at Mumbai and Delhi and the international hub is located at Brussels airdrome, Belgium. The air hose is owned by London man of affairs Naresh Goyal and it operates more than 400 flights to 67 finishs across the universe. On 12th April 2007 Jet Airways announced that it would take over Air Sahara for a sum of US $ 340 million dollars in an all out hard currency trade. It renamed Air Sahara as Jet Lite which was used as low cost bearer. It presently consists of 10,019 employees. An confederation was formed between Jet and its challenger Kingfisher air hoses in October 2008 which is chiefly an understanding on codification sharing of both domestic and international flights, cut downing wastage of fuel and sharing of flight plans. The market portion of jet air passages is 26.9 % in footings of entire figure of riders which makes it the market leader in the air hose travel.

Need for Information Systems in Airlines

In the present market scenario information which is given to the computing machine has to be processed at a higher rate and transferred to the appropriate sections of the company for farther usage and storage so that the information can be accessed at any clip. Besides parametric quantities such as security and public presentation should besides be taken into consideration. The direction of information is the 1 most of import portion of the air hose industry and it can non be done manually in todayaa‚¬a„?s present market scenario hence a fast information direction system is required which has to cover certain major countries in the air hoses sector. The different types of information systems which are used are-

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Finance and Accounting Information System

Gross saless and Marketing Information System

Fabrication and Production System

Human Resources Information System

These information systems are the chief constituents which are further divided into many degrees and sub-levels harmonizing to the complexness of the air hose company i.e. the assorted sections, the assorted services which are given. Jet airways has implemented the information systems by taking into history assorted demands they have to carry through and the assorted services that need to be implemented to go the market leader in the domestic air hoses sector.

Finance and Accounting Information Systems

The finance and accounting systems keep path of the air hoses fiscal informations and the financess which flow in and out of the air hoses. Jet airways is utilizing a gross accounting system for rider minutess which has been founded on the old ages of expertness and perusal of the assorted parametric quantities which are to be included in the system. The Airlines Financial Management system which is being used by Jet Airways is from Kale Industry solutions. The package which is used is besides provided by Kale and it has a figure of challenges which have to be overcome.

Expense Accounting and Budgeting challenges in Jet Airways Finance Software

The information which is obtained has to be processed and the disbursals, net incomes etc have to be stored and besides transferred to the right sections for farther analysis and storage. The assorted challenges which occur are-

The Finance section is responsible for the disbursals occurred during assorted services such as refueling, landing, amusement services at many locations around the universe. The disbursals occurred at different parts of the universe are ne’er equal and therefore a path of the disbursals is made by the system. In the past these were carried out utilizing spreadsheets and reckoners and the debit and recognition was entered manually which was clip devouring. Hence the mechanization of these procedures was the lone staying solution. The package was to be developed by garnering all demands that the proficient experts required in the presence of the stakeholders.

The Finance section is responsible for the aggregation of information from different airdromes and treat the information to make monthly studies and direct them to the central office of the air hose to be stored. The entire disbursal budget had to be calculated manually which was clip and manpower devouring therefore the solution was to develop a system which could execute the undertakings in less sum of clip and bring forth the necessary end product. A multi-tiered application with entree to the web browser was developed to get the better of all the defects.

Earlier all the fiscal information was processed at one location merely and therefore there was a demand for decentalisation i.e. the information would be divided and each processing centre would have lone portion of the informations and hence the analysis of the informations would be more accurate and therefore the net income would increase. The solution was to make databases at each processing centre and the databases would be able to pass on with each other and therefore the processed information can be shared among different air hose personal.

The air hoses have a job in covering with the manpower budgets and overhead budgets as it involves a series of complex mathematical computations which can non be done utilizing spreadsheets or reckoners. The solution is to develop an machine-controlled system Capex which replaces the older manual system and hence saves a batch of clip and attempt.

The manual systems are now being replaced by sophisticated Finance systems which increase the productiveness and net income of the air hoses and besides give a much more elaborate analysis of the informations.

KALE Financial Management Solutions Software

Net income is the chief motive for any air hoses utilizing the available resources and budget. The finance direction system developed by Kale is designed to optimise the processing of the fiscal information into information in a short sum of clip. Hence over 80 air hose companies including jet air passages are utilizing the fiscal system developed by Kale.

The fiscal system developed consists of 4 constituents which are given as-


DOC Audit

Finesse MBS

Federal protective service

Dashboard- The splashboard is the art of change overing big sum of natural informations into actionable information which is the footing for taking strategic determinations in every section of the organisation. The splashboard is based on a alone KPI ( Key Performance Indicator ) theoretical account which is helpful in mapping assorted parametric quantities of the air hoses like finance, operations and human resources. The main commercial officer can personalise the splashboard as per his demands which consequences in better determination devising and increased net income. The cardinal characteristics of the splashboard are-

The type of Cardinal public presentation indexs can be selected with the aid of the splashboard gas pedal from the pre-defined KPIaa‚¬a„?s.

The interface is synergistic and customizable and user-friendly

The package can be integrated into other air hose operational systems easy

The public presentation of the system can be monitored utilizing the KPI theoretical accounts

The package can do determinations based on the information and the KPI theoretical accounts

DOC Audit- Direct Operating Costs collectible Audit services relate to the assorted employee direction such as land handling, catering, airdrome handling and pilotage of the aeroplanes. They account for 70 % of the entire gross of the DOC and therefore necessitate to be decently managed. The cardinal characteristics of the DOC are-

Process Efficiency-The cost escapes are identified through seller bill rapprochement which is efficient to calculate the informations in existent clip to happen the cost escapes and better the efficiency of the system. Merely the sanctioned bills are sent for farther processing and colony.

User Authorization- The information can be accessed merely by the authorised personal and any invalid bill information can be corrected by them.

MIS reports- The over-billing and variance analysis studies are transported to the authorised personal.

Finesse MBS- The Miscellaneous Billing colonies has a new set of criterions in the modern air hoses industry as there are many challenges in automatizing the procedure as the MBS is the least machine-controlled country where the procedure have been done manually. The Simplified Interline Settlement provides an chance to reengineer the procedure and to do it centralised and standardised thereby cut downing charge costs and bettering hard currency flows. Using Kale the system is improved upon and it does non alter the internal IT package it merely upgrades the package. It allows enables Ad-Hoc communicating between the different sections. There is a extremely strong contract direction system The Key characteristics of the MBS are-

Service Management-The services are grouped and mapped under the SIS class and charge codifications and are besides mapped under GL history codifications.

Contract Management-This defines the assorted contracts, revenue enhancements, surcharges which the air hoses have signed

Flight MBS- It is the ability to specify inward and outward charge services for flight agendas

Service fulfillment- The information is captured in this instance and scanned to cut down manual labour.

SIS, accounting interface-Creation of information system for SIS outward charge and processing SIS inward charge.

Flight Profitability System- FPS is fundamentally a system which provides the flight waies with least sum of disbursals occurred and other standard operational critical information and other commercial information which increases the net incomes of the system. Kaleaa‚¬a„?s sophisticated Flight Profitability system provides all the old characteristics in add-on to new 1s such as reduced processing clip and better flight paths. The Features of FPS are:

Actionable Reporting & A ; Dimensional Analysis

Flight simulation

Path analysis

Multidimensional coverage


Pull offing information of transnational imperium can non be done manually in todayaa‚¬a„?s turning economic system, most of the procedures need to be automated to salvage clip and money. Jet air passages like any other air hose has many ends in head such as net income, better client service and hence for the fiscal section Kale industries was chosen to supply for the fiscal direction system which has given first-class consequences as Jet airways is the major domestic air hose with a market portion of 26.9 % . The package performed to all specifications and therefore more than 80 air hose companies are utilizing the package. The Information system used for rider reserve is ifly which is an IBS solution.


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