Supplier Payments
Supplier payments are payments that need to be paid to the company they bought their stock of. So if Boots needed to pay supplier payments this would mean that whatever supplier Boots bought their food and drink of these are payments that are to be made to the supplier. Boots gets sent an aged creditors report, this tells them the aged debts, will show the Finance Department who the company owes money to. This helps boots because they wont get behind with paying money they own to different people, so they wont get into deeper debt and that’s why Boots needs this type of method.
BACS (bankers automated clearing system)
BACS means that you can now pay the creditors directly into their own bank accounts. 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
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 to type in all the data into the computer so in finance they will use the keyboards to create databases on credit control and to create spreadsheets for budgeting. Boots use a mouse in finance because they need it to control what the computer is doing so when Boots to use the payroll program or forecasting then the company will need to use a mouse to control it. Random access memory is used in finance because it stores the programs and data that is being used so if Boots thepayroll program or creating a spreadsheet for budgeting then RAM is also being used and without it the system wouldn’t be able to work properly. A processor is used in finance because without it the computer wouldn’t be able to work. So all the tasks on the computer that are to do with finance like payroll and budgeting you wouldn’t be able to do. Cables need to be used in finance because the cables provide the electricity to the computer so without them the computers wouldn’t work. So tasks on the computer that involve finance you wouldn’t be able to do.
Boots use Microsoft Word and Microsoft Excel as their software for finance because with Microsoft Excel they will use this to create spreadsheets for budgeting. You can also create graphs from your information very easily. Boots use Microsoft Word in finance because they will use this to create Word documents to send to the suppliers telling what they want and how much they want.
The hardware and software above does do all the things needed to be done by that department as described in finance because if it didn’t their finance would be in jeopardy because all the calculations would have to be done by hand so this would take lots of time so other operation wont get done. Supplier payments wont get paid and bankers automated clearing system wouldn’t work properly so this could lead into a decrease in profit and eventually the company could go bankrupt.
