ABUAN

AGGREGATES

Group 6:
Abobo, Danah Mae P.
Dalligos, John Enoch M.
Olarte, Leika Gay S.
Orfiano, Florence V.
Company Profile and Background

Name: Abuan Aggregates

Address: 37 Gov. Joaquin Ortega Ave., Madayegdeg,

City of San Fernando, La Union

Owner: Napoleon Abuan, Jr.

Company Profile and Background

Abuan Aggregates, a family owned business passed from

one generation to the other, is a business that is selling
concrete products. It was established by Mrs. Monica Abuan as
Abuan Concrete Products in 2000. Mrs. Abuan came up with
this kind of business because she wants to invest her money in
to a business that will surely give her a good return. The owner
also took the opportunity of the high demand in concrete
products as well as the good location of land that they owned.
Company Profile and Background

It was later changed into Abuan Aggregates when it

was passed to Mr. Napoleon Abuan,Sr. in 2004. In
the year 2014, it was passed to Mr. Napoleon Abuan,
Jr., retaining its name as well as its business address.
Company Profile and Background

PRODUCTS:
sand and gravel
decorative blocks
concrete posts
boundary stones
well covers
concrete well rings
concrete hollow blocks
culverts or concrete pipes gravel
Company Profile and Background

ORGANIZATIONAL CHART
Revenue Cycle Process

A. Sales Order Procedure

1. Receive Orders
The sales department manager receives
customer order either through phone call or personal
appearance of the customer in the office. The sales
manager prepares two copies of order slip containing
the type of product, quantity and mode of payment
desired.
Revenue Cycle Process

2. Approve Order
The sales manager approves the customer orde
r upon the receipt of full payment for cash/check or
ders and partial payment for cash on delivery
orders.
Revenue Cycle Process

3. Pick Goods
The sales manager will communicate to the
warehouse manager the details of the customer order
through giving the order slip. The warehouse manager
will check the sufficiency of the current inventory for
the customer order. If the inventory is insufficient, the
production manager will allow its workers to produce
more. Otherwise, the goods will be prepared for
pick up.
 Revenue Cycle Process

4. Ship Goods
The warehouse manager will inform the delivery de
partment that the goods are ready to be delivered
to the customer. The goods are to be delivered to the
customer together with the copy of order slip as well
as the bill.
Revenue Cycle Process
5. Bill Customer
If the customer chose cash or check as mode of payment,
the sales manager will immediately issue the official receipt
as well as the second copy of the order slip.
If the customer chose cash on delivery as mode of payment,
the sales manager will prepare two copies of official receipt,
one is issued to the customer while the other is filed. Upon
the receipt of the customer of the goods ordered, the delivery
manager will prepare two copies of official receipt for the pay
ment of the customer for the balance as well as the applied
delivery charges. The sales manager will then issue the
delivery receipt and one copy of the official receipt while the
other copy of official receipt is sent back to the sales
department for filing.
Revenue Cycle Process

6. Update Inventory Records

The warehouse manager updates the in
ventory records upon the shipment of the g
oods ordered.
Revenue Cycle Process

B. Cash Receipts Procedures

1. Record and Deposit Cash and Checks

The deposit of checks is being done by the sales
manager upon the receipt of document.
The sales manager will update the sales documents
upon the receipt of any cash or check payments for
the partial or full payment of the customers.
DOCUMENT
FLOWCHART
Internal Control

1. Sales Department
The bulk of the transactions are being done by the
sales manager in the sales department. For cash on
delivery orders, it is the policy of the business to req
uire at least 50% down payment either in cash or I n
check. The issuance of official receipt is made upon t
he acceptance of payment, either partial or full, fro
m the customer.
 Internal Control

2. Warehouse and Delivery Department

Only one person is managing both the warehouse an
d delivery department. The issuance of the delivery re
ceipt is being made if the customer chose to let the bu
siness deliver the order. For cash on delivery orders, th
e delivery manager is responsible for the issuance of off
icial receipt for the acceptance for the full payment an
d applied delivery charges, if any.
Internal Control

3. Cash Control
The business does not allow credit sales. The ap
proval of sales only happens upon the full or par
tial payment of the customers.

4. Inventory Control
The update of inventory records is being don
e upon the picking of goods by the warehouse dep
artment.
Strengths
All transactions are on the cash basis because of the
risk of uncollectible accounts.
The time of transfer of goods to the customers is
shorter because the warehouse, production and
delivery department has the same manager. This
allows the manager to monitor the state of the
inventory thus, reducing the risk of insufficient
inventory.
If customers meet the required quantity of orders, the
business will shoulder the delivery charge. This
strengthens the client relationship of the business.
Weaknesses and Recommendations
ABUAN
AGGREGATES

Group 6:
Abobo, Danah Mae P.
Dalligos, John Enoch M.
Olarte, Leika Gay S.
Orfiano, Florence V.