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Chapter 1
ORGANIZATIONAL BACKGROUND
Business Profile
A billing system is a combination of software and
hardware that receives call detail and service usage
information, groups this information for specific accounts
or customers, produces invoices, creates reports for
management, and records (posts) payments made to customer
accounts.
The billing process involves receiving billing records,
determining the billing rates associated with the billing
records, calculating the cost for each billing record,
aggregating these records periodically to generate invoices,
sending invoices to the customer, and collecting payments
received from the customer.
Billing system is very complex starting from network
elements that generate usage to the billing system to usage
collection, mediation, rating, and invoicing. If he has no
account, he signs up for a new account, else he signs in.
Then the user asks to conduct an order with the selected
service. The service may be prepaid where he has to pay to

have credits to use the service, or it may be postpaid,

where he has to pay if the service has installation or setup
fees, and later on he will pay for his usage of each billing
cycle.
AVR Full Hauz Furniture is owned and managed by spouses
Mario and Aileen Ramos. The corporation is registered with
the Securities and Exchange Commission. The firm has been in
the furniture business since 1996. Its business area or
showroom is located at Plaridel Street, Roxas City. They
have 12 employees serving Walk-in Customers, couples
starting a home and Families who would like to change their
home furnitures. Their mission is to provide high quality
products and service that can satisfy the needs and wants of
their customers. They sell various kinds of furnitures like
Sala sets, divider, dining table, etc.

All their products

are made with combined style, art, simplicity, and strength

for the best furniture designs.
The form they are using in billing for cash basis is
Official Receipt or the sales invoice and for installment is
charge invoice.
The business are currently using manual system, which
is pen and paper.

Problem Statement
After we conducted an interview the following problems
are being identified:
1. Unsecured record of payments from the customer
resulting in collecting twice.
2. Misplacing some of their records because they
dont have a safe place to store their records.
3. It is time consuming on computing or billing
their customers, track their payments and
balances because they operate in a manual manner.
4. Unable to identify the balances of each customer.
Project Objective
The main objective of this project is to be able to
make, create or design a billing system for AVR Full Hauz
Furniture.
Specific objectives:
1. To create a system that can secure the record of
payments from customers.
2. To create a system that can make an organized and
safe place for the customers billing records.
3. To create a system that can automatically compute
or bill the customers, track their payments and
balances.
4. To create a system that can identify the accurate
balances of each customers.

Scope of the Project

This project is conducted on October 1, 2016, Saturday,
at 2:00 pm, we conducted an interview at AVR Full Hauz
Furniture, Plaridel Street, Roxas City.
This project tends to create a Billing System that will
include the information of customers, billing for specific
accounts of the customers, produces invoices, creates
reports for management, and records payments made to
customer accounts.
It does not include the information of employees and
employees payroll.

Significance of the Project

The proposed billing system is beneficial to the
following:

The owner, it can save business money because he can

employ only one capable employee to use the system. It can
effectively reduce administrative overhead and the money,
therefore can be reinvested into more profitable areas of
the business
For the Cashier, it will make it easier and faster to
bill the customer, record the payment and the balances of
the customer. It can also minimize errors because the system
will automatically compile and generate invoices from the
datas.
For the customers, the system can benefit the customers
because when a customer has a question about the billing
process, it is important to have information easily
accessible so the company can provide answers quickly.
To the organization, it can secure the files and make
the operation faster when it comes to the billing. The
system can simplify reporting allowing the business to
identify their most profitable clients and customers.
Definition of Terms
The terms used in this project are the following:

Billing - The process of sending an invoice to

customers for goods or services

Form - a document with spaces in which to write or

enter data
Record - to write something down so that it can be used

or seen again in the future.

System - A system is a set of interacting or
interdependent component parts forming a

complex/intricate whole.
Invoices - a commercial document issued by a seller to
a buyer, relating to a sale transaction and indicating
the products, quantities, and agreed prices for

products or services the seller had provided the buyer.

Installment - any of several parts into which a debt or
other sum payable is divided for payment at successive
fixed times: to pay for furniture in

monthly installments
Cash basis - Cash basis refers to a major accounting
method that recognizes revenues and expenses at the
time physical cash is actually received or paid out.