INTRODUCTION

Coca-Cola is the world's leading manufacturer, marketer and distributor of

nonalcoholic beverage concentrates and syrups. Company manufactures beverage
concentrates and syrups and, in certain instances, finished beverages, which we sell to
bottling and canning operations, authorized fountain wholesalers and some fountain
retailers. They also market and distribute juice and juice-drink products. In addition, they
also have ownership interests in numerous bottling and canning operations.
In order to maintain the quality of product, Coca-cola company applied the best system to
their company, one of them is accounting information system.accounting information system
(AIS) is the system of records a business keeps to maintain its accounting system. This includes the
purchase, sales, and other financial processes of the business. The purpose of an AIS is to
accumulate data and provide decision makers (investors, creditors, and managers) with
information. So, in this paper we try to explain the accounting information system that Coca-cola
company use and we hope the reader can understand and get new knowledge from this paper.

COCA-COLA COMPANY PROFILE

The Coca-Cola Company is the worlds largest beverage company, The Coca-Cola
Company markets four of the worlds top-five soft-drink brandsCoca-Cola, diet Coke,
Sprite and Fanta. And now currently the company has offered two new products in this
market, Sprite 3G and Fanta Citrus. Sprite 3G is doing its business successfully and meeting
the expectations of the management by capturing market share of Dew quickly but on the
other hand the second newly introduced product is not meeting the expectations and still
struggling to find out a proper place in the market but it is expected that the company may
stop its production of this product in near future. Their beverage offerings encompass
nearly 400 brands, including coffees and teas, juices and juice drinks, sports drinks and
waters as well as carbonated soft drinks. With operations in more than 200 countries, they
have a diverse workforce of approximately 50,000 individuals. Together with their
subsidiaries and bottling partners, they strive to be an integral and contributing member of
each of the communities where they operate. The Coca-Cola Company is the world's
leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and
syrups, with world headquarters in Atlanta, Georgia.

The Company and its subsidiaries employ nearly 31,000 people around the world. Syrups,
concentrates and beverage bases for Coca-Cola, the Company's flagship brand, and over 230
other Company soft-drink brands are manufactured and sold by The Coca-Cola Company
and its subsidiaries in nearly 200 countries around the world. By contract with The CocaCola Company or its local subsidiaries, local businesses are authorized to bottle and sell
Company soft drinks within certain territorial boundaries and under conditions that ensure
the highest standards of quality and uniformity.

Operational Structure All Over the World

The Company's operating management structure consists of five geographic groups. The
North America Group comprises the United States and Canada. The Latin America Group
includes the Company's operations across Central and South America, from Mexico to the
tip of Argentina. The Greater Europe Group stretches from Greenland to Russia's Far East,

including some of the most established markets in Western Europe and the rapidly growing
nations of Eastern and Central Europe. The Africa and Middle East Group encompasses the
Middle East and the entire continent of Africa. The Asia Pacific Group has operations from
India through the Pacific region including China, Japan, and Australia. In past it was seen
that the company was paying more attention to European and American region but now it is
recognized that the Middle East region is much more attractive as compare to those areas
due to intensity of population and some such markets which are still not captured by any of
the firm. So, now the firm is paying more attention towards these areas to increase market
share of the company in these countries. The visit of chairman in 2005 is an evidence of this
fact that company is now focusing on this region tomaximize its share in this market.
According to the management of the firm, they are working on a plan to achieve about 50%
of the market share by 2011.

Mission of Coca-Cola Company

From their heritage to their mission to the people who bring their products to thirsty
consumers, The Coca-Cola Company is a part of lives everywhere. Their Mission is
To Maximize Share-Owner Value over Time. In order to achieve this mission, they must
create value for all the constituents they serve, including their consumers, their customers,
their bottlers and their communities. The Coca-Cola Company creates value by executing a
comprehensive business strategy guided by six key beliefs:

Consumer demand drives everything they do.

Brand Coca-Cola is the core of their business.

They will serve consumers a broad selection of the nonalcoholic ready-to-drink

beverages they want to drink throughout the day.

They will be the best marketers in the world.

They will think and act locally.

They will lead as a model corporate citizen

Objective
The ultimate objectives of their business strategy are to increase volume, expand
their share of worldwide nonalcoholic ready-to-drink beverage sales, maximize their longterm cash flows, create economic-value-added by improving economic profit and creating
such an image of the company that the consumers start differentiating their product from
other competitors. The Coca-Cola system has more than 16 million customers around the
world that sell or serve their products directly to consumers. They keenly focus on
enhancing value for these customers and helping them grow their beverage businesses.
They strive to understand each customer's business and needs, whether that customer is a
sophisticated retailer in a developed market or a kiosk owner in an emerging market.

There are nearly six billion people in the world who are potential consumers of their
Company's products.

Their success in achieving their mission depends on their ability to

satisfy more of their beverage consumption demands and their ability to add value for their
customers. They achieve this when they place the right products in the right markets at the
right time.
Ultimately, their basic task to perform in a market like Pakistan should
be to confirm the availability the products all over the country because it is observed that
one of the main reason of low market share of this brand in Pakistan is unavailability of the
products in most of the areas.

ORGANIZATIONAL STRUCTURE
Following table shows different Departments in Coca-cola company along with their
respective functions
Department
Accounts Department

Function
To prepare monthly, quarterly and annually Accounts,
Costing, Budgeting & Forecasting. To handle payable and
insurance, Inventory & Stores etc.
Finance Department
Arranging Finance and negotiate over coat of finance, To
handle sale, receivable, debtor aging, cash and bank etc.
Internal Audit
To monitor the implementation of internal procedures,
policies internal control systems and repot any violation.
Detection and control of financial risk and frauds.
Information Technology
Development of SAP program, Networking, Hardware
Department
Maintenance
Human Resource
Hiring new manpower, satisfaction, Motivation, Appraisals
etc
Health Environment &
ISO Audit and ISO implementation, Internal safety &
Security (HEC)
environmental awareness and health improvement.
Production Department
To undertake production activity and maintain desired
production volume
Electrical & Instrument
Maintain and economies electricity consumption,
Installation and maintenance of Electrical & Electronics
Instruments
Mechanical Department
Installation and maintenance of plant and machinery.
Research and Development Product development, product improvement and
(R&D)
economies production cost by discovering raw material
substitute or change in production process.
Quality Control
Maintain quality and deal with complaints
Project Department
To design and build structural design of new plant to be
installed.
Marketing & Sale
To increase existing demand, to work as organizations
intelligence in large outer environment, customer
satisfaction, advertisement, smooth dispatch, rationing of
products in case of excess demand

DATA FLOW DIAGRAM

System decomposition

payroll

The diagram above show us the decomposition of each department cycle that Coca-cola
Company have.

Context DFD

Context diagram shows major data flows into and out of system. Therefore, detailed data
flows within the system are not shown on this type of diagram.

SALES CYCLE

In the DFD above we can see the flow of major cycle that start with the sales cycle .
The destination in this diagram is from customer to customer to make it more clear
we provide the sales cycle in detail next page.

The sales cycle starts with customer order, because the manufacturing company is
only receive the big order and have a special price. There are a negotiation with the
customer, then after the negotiation process and make a deal with customer, then
continued to customer order processing and will move to the next cycle, Planning
cycle.

We provide recomendation sales flowchart to the company that can support their
data flow diagram.

PLANNING CYCLE

MANUFACTURING CYCLE

In this cycle, it start from the production schedule that has been scheduled by
planning department. While the schedule have arrived, the production department
get their production order and they will start the production. While, the raw material
division will check and give the information about raw materials that ready to use in
production process. Before and after the production process, they should have data
for the previous and updated raw materials. Then, after the production have
occurred, this manufacturing department will give an information or notice of
completion to the package and shipment department. Before that, they will send the
complete product to the product inventory, and the system will update the current
number of product that available in their storage.
Production Process
The environment of the production hall is very clean unlike of other players of the
industry. In Multan plant, there are two lines of production in which all the products
can be produced by making an adjustment in syrup and concentrate. Production
process starts with washers

where all the bottles are washed before filling. In washer 24 bottles are entered in a
row at a time and the washer is capable of containing 300 cases at a time.
This washer consists of 3 tanks:
Tank 1: Caustic 1 to 1.5% - Temperature 45 to 85 centigrade
Tank 2: Caustic 3 to 4% - Temperature 65 to 75 centigrade, Stabilon 0.4 to0.5%
Tank 3: Cold water and air, Below 0 centigrade
Due to too many fluctuations in temperature, all the germs are killed and removed.
After this some light men inspect all the bottles. These people are performing jobs
for maximum of 20 minutes at a time then a next pair comes in their place and so on.
Next step is of mixing the syrup and water and filling them in bottles. For this
purpose water is obtained from a depth of more than 510 ft. Carbo Cooler is used for
mixing the syrup and water and then bottles are filled. After filling and marking date
and time of production light men again check bottles.
Three light men are working in the plant and their duties are given below:
First -----Check brand, breakage and dirtiness.
Second---Check cleanliness.
Third ---- Level of liquid after production.
Due to such an effective system of quality controlling, plant is certified by ISO. The
more important certificate is TCCQS (The Coca Cola Quality System), which is
awarded by the company itself to a limited number of plants. It is given to only 65
plants out of 1000units and Multan plant is one of them.
The last function of maintenance is performed in down season of November,
December or January by shutting down the plant for 15 to 30 days depending on the
situation. According to production department, current capacity is sufficient to meet
the increasing demand by 2009 but after that there will be a need for expansion.

Recommendation
We recommend this flowchart to be use by coca cola company in their near future.

PURCHASING CYCLE

It is issued for the purchase of any thing, which is already not available in the store.
So first of all, we see the information from the production schedule to know how
much the materials for the production needed. Than we make the purchase
requirement, it is sent to purchase department. Purchase Department will have to
receive three or four quotations from various vendors according to rates and quality
offered and will be select one vendor which rates & quality is suitable. After this it
will be made comparative statement for further process. But PR must be approved
by :
Department in charge that is in need.
Accounts Manager.
TGM.
After that, we will communicate to the supplier to get the info update and purchase
the product. After purchase, goods are sent to store and GRN (Goods Received Note)
is issued that is also authorized by :
Store In charge.

 Department in charge that is in need.

Recommendation
We recommend this flowchart to be use by coca cola company in their near future.

PACKAGE & SHIPMENT CYCLE

In this cycle our job is to pack and send the product to the customer. There are two
place that will send the finished goods to be pack, we get it from manufacturing floor
directly after the production job complete and inventory floor that also has the
products. And both of the place will give the shipment notice than the package and
shipment process can be start. After the process is finish than we can make delivery
and invoice notice as the requirement for the further process which is deliver the
products that has been packed to the customer.

Recommendation
We recommend this flowchart to be use by coca cola company in their near future.

PAYROLL CYCLE

Payroll cycle systems are separate in many companies because integration was
generally not feasible using early data processing technology. Also, different events
generate data and two different professions were interested in using the data. As a
result, many companies (and their employees) became accustomed to having payroll
data processed by the accounting function and personnel data processed by the
human relations function. Now that modern information technology makes
integration more feasible, employees in some companies are still likely to resist
suggestions for change because they are comfortable with the old way of doing
things. In addition, employees within the accounting and personnel functions
probably feel some degree of "ownership" of "their" data, and this is taken away
when control of these data is transferred to a centralized data base function.

The most important tasks performed in the HRM/payroll cycle are:

Recruiting and hiring new employees

Training
Job assignment
Compensation (payroll)
Performance evaluation
Discharge of employees (voluntarily or involuntarily)

PAYROLL CYCLE ACTIVITIES

The five basic activities in the payroll cycle:
1. Update payroll master data
2. Validate time and attendance data
3. Prepare payroll
4. Disburse payroll
5. Disburse taxes and miscellaneous deductions
UPDATE PAYROLL MASTER FILE
The HRM department provides information on new hires, terminations, changes in
pay rates, and changes in discretionary withholdings.
Appropriate edit checks, such as validity checks on employee number and
reasonableness tests are applied to all change transactions.
Changes must be entered in a timely manner and reflected in the next pay period.
Records of terminated employees should not be deleted immediately as some yearend reports (e.g., W-2s) require data on compensation for all employees during the
year.
The payroll department also receives notification of changes in tax rates and other
payroll deductions from government agencies, insurers, unions, etc.
These changes occur periodically.
VALIDATE TIME AND ATTENDANCE DATA

Some employees are paid on an hourly basis.

Some employees earn a fixed salary, e.g., managers and professional staff.
Sales staff are often paid on a straight commission or base salary plus commission.
Increasingly, laborers may be paid partly on productivity.
Some management and employees may receive stock to motivate them to cut costs
and improve service.
PREPARE PAYROLL

The employees department provides data about hours worked.

A supervisor confirms the data.
Pay rate information is obtained from the payroll master file.

DISBURSE PAYROLL
Most employees are paid either by:
Check
Direct deposit

In some industries, such as construction, cash payments may still be made,

but does not provide good documentation

DISBURSE PAYROLL TAXES AND MISCELLANEOUS DEDUCTIONS

The employer pays some payroll taxes and employee benefits directly
The employer withholds federal and state taxes from employee paycheck,
along with Medicare tax, and the employees share of Social Security.
May also withhold voluntary deductions such as union dues, United Way
contributions, credit union savings, retirement contributions, etc.
In addition, the employer pays:
A matching amount of Social Security
Federal and state unemployment taxes
The employer share of health, disability, and life insurance premiums, as well
as pension contributions
Some companies offer flexible benefit plans, sometimes called cafeteria-style benefit
plans.
These plans offer a menu of options.
The company must periodically prepare checks or EFT to pay tax and other liabilities.
Recommendation

We recommend this data flow diagram to be use by coca cola company in their near future.

FINANCIAL REPORTING CYCLE

This cycle starts with a business event. Bookkeepers analyze the transaction and record it in
the general journal with a journal entry. The debits and credits from the journal are then
posted to the general ledger where an unadjusted trial balance can be prepared.
After accountants and management analyze the balances on the unadjusted trial balance, they
can then make end of period adjustments like depreciation expense and expense accruals.
These adjusted journal entries are posted to the trial balance turning it into an adjusted trial
balance.

Now that all the end of the year adjustments are made and the adjusted trial balance matches
the subsidiary accounts, financial statements can be prepared. After financial statements are
published and released to the public, the company can close its books for the period. Closing
entries are made and posted to the post closing trial balance.
At the start of the next accounting period, occasionally reversing journal entries are made to
cancel out the accrual entries made in the previous period. After the reversing entries are
posted, the accounting cycle starts all over again with the occurrence of a new business
transaction.

CONCLUSION
Coca-cola company is the biggest beverages company in the world, they reach their position
because they have a good system in the company,one of the systems is accounting
information system. A well-designed AIS gives a business a consistent way to view and
analyze financial information and has three basic function to the company.

Collect and Store Data

One function of an accounting information system is to efficiently and effectively collect and
store data about business activities and transactions. The system must capture transaction
data on source documents, record transaction data in journals to present a chronological
record of transactions, and post data from journals to ledgers that sort the data by account
type.

Provide Information

The second function of an accounting information system is to provide information useful

for making decisions. This information usually involves reports in the form of financial
statements and managerial reports.

Provide Controls

The third function of an accounting information system is to incorporate controls to ensure

the accurate recording and processing of data. The system must make certain that the
information that comes out of the system is reliable, ensure that business activities are
efficient and in line with management's objectives and keep business assets safe.
So it is very important to a company if they want to have a good company to design the
accounting information system well.

REFFERENCES
http://www.ehow.com/list_6402203_basic-functions-accounting-informationsystem.html#ixzz33eRkojbS
http://www.coca-colacompany.com/careers/student-zone

http://id.scribd.com/doc/26929961/Accounting-Information-System