Finance and Accounting information systems used in Aviation sector Essay
Aviation industry: An overview
The air power industry traditionally grew due to increase in demand of concern travelers as the companies started spread outing their operations in different topographic points all over the universe. Furthermore rise and income of the people had a positive consequence on the touristry industry and therefore taking to the growing of air power industry. Deregulation and Privatisation of the air power industry provided further drift to its growing. In the last decennary, the growing rate in the air power industry has been approximately 7 % per twelvemonth. Thus air power industry remains a big and turning industry. It facilitates universe trade, touristry, economic trade and therefore taking to globalization.
Effect of information systems on the air power industry
Information Technology has affected the air hose industry to a great extent in assorted facets like Airline reserves, air-craft design, e-ticketing, simulators and preparation, GPS, RFID, security cheque, flight and airdrome direction and control. Flight and airport direction and planning includes flight information show systems, airport operational database systems, air traffic control, staff direction shows, invoicing and ledger systems etc.
IT has revolutionised the reserve systems such that it has become an industry of its ain. The five chief computerised reserves systems are Galileo, Sabre, Amadeus, Pegasus and worldspan. Since they interlinked different air hoses monetary value competition came into image. Then came on-line reserve system called E-Ticketing which further helped to cut down the costs since it lead to direct interaction between the rider and the air hose without inclusion of agents. The IATA has started an enterprise to change over all paper tickets to e-tickets to cut down wastage of paper. IT has besides led to the development of ego ser vie booths to cut down line uping issues and rush up cheque in procedure. IT besides developed wireless frequence designation technique to decide lost baggage issues. Other benefits of Information systems in air power industry have been GPS, Simulators, Security systems, charging bill and ledger systems etc.
Finance and accounting information system in air power industry
Along with other sections like human resource direction, gross revenues, selling, Information systems have besides been really utile in the fiscal section in the air power sector. The assorted information systems used by the finance and accounting section in air hose industry includes Aeronautical Billing System which handles airdromes grosss, Air traffic control charge, Aeronautical invoicing system affecting hard currency and recognition invoicing, ( Credit invoicing allows for multi currency invoicing ) and eventually Ledger systems which contains all the information about gross revenues and purchase leger and nominal leger. In add-on many systems can be developed holding following faculties: Bank rapprochement, Stock control, Payroll, Fixed plus registry, Purchase order processing etc.
One of the illustrations of information system which can be used by the finance and accounting section in the air power sector is Sirax Airfinance platform developed by Lufthansa systems.
Sirax Airfinance platform by Lufthansa systems
With regard to the uncertainnesss that air hoses are confronting today, Sirax Airfinance platform can turn out to be of great aid to the air hoses as it provides the right information at the right clip. It keeps the air hose updated about their operations and fiscal status. It provides the air hose with timely, accurate and valuable information that can non merely assist the peculiar air hose to reexamine the current schemes and runs but besides helps them to a great extent to make up one’s mind on the hereafter programs, schemes and runs.
See an illustration of Mark working as a selling executive in a XYZ air hose. He decides to used the telecasting media to establish a particular publicity. During accounting, Sirax Airfinance platform assisted Mark to place parts where the commercial was aired and compared it with ticket gross revenues in those peculiar parts. Besides he was able to compare current gross revenues with old month & A ; acirc ; ˆ™s gross revenues and besides with gross revenues in the parts where commercial was non aired. In this manner Sirax Airfinance platform helped Mark to measure the consequence of the promotional run statistically and assess whether it was successful or non. It besides helped Mark make up one’s mind the hereafter plans publicities and invent schemes consequently. This will assist XYZ air hoses to capitalise on future chances and increase their profitableness.
In state of affairss of crisis or in instance of unexpected fortunes, it is really necessary for the air hose to acquire entree of valuable accurate and timely information, which if non available can hold lead to risky effects.
This is where Sirax Airfinance platform helps an air hose to accommodate rapidly to an unexpected state of affairs with its & A ; acirc ; ˆ™ ability to supply valuable and accurate information at the right clip assisting in taking right determinations. Therefore Sirax Airfinance platform is divided into three faculties viz. :
Sirax Revenue Accounting
Sirax Cost Accounting
Sirax Business Intelligence
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Sirax Revenue Accounting
Sirax gross accounting is the most of import faculty of the Sirax Airfinance platform. It chiefly involves modern gross accounting, gross revenues, informations security and many other maps. It is the chief beginning of extremely utile gross information. It includes the undermentioned bomber faculties:
It carries out the whole procedure of back office accounting. Sirax is used to bring forth studies on commanding and be aftering information that are used by the top-level directors for doing determinations. It provides the air hoses with powerful gross revenues audit maps. Through mechanization it helps in cut downing labour and operation costs and at the same clip it improves the truth of gross accounting.
It provides accurate accounting and invoicing information about recognition card and debit card gross revenues. Gross saless include internal ( cyberspace, name Centre ) external gross revenues information ( i.e. agents ) and besides in-flight gross revenues and lading concern. Customer charge, recognition card glade, claim and charge back managing all these operations are done utilizing SiraxCredit.
SiraxLink links different air hoses and helps them to settle inter-airline claims cut downing mistakes and therefore work load and additions velocity of payment. Transportation, lading and processing of bills takes topographic point in SiraxLink.
It includes committee, menu and revenue enhancement audit and therefore it forms the complete gross revenues audit solution. It besides processes agent debit memo and controls the payment procedure. Reports are generated from revenue enhancement and menu audit in an ad hoc mode. It besides manages balanced histories.
There is a big sum if recognition card informations involved in air hose gross accounting. These informations are really sensitive and their security and confidentiality is a really of import issue. SiraxPCI fulfils the demands of International Payment Card Industry Security Data Security Standard ( PCI-DSS ) and is certified by the latest PCI criterion. In short, SiraxPCI maintains the security of of import informations and protects sensitive client informations.
It optimises complete lading gross accounting procedures and shops in-depth information about lading system. Interline charge and auditing are used an ad hoc describing tool.
Sirax Cost Accounting
The Sirax Cost Accounting faculty is a really utile tool for air hoses to optimise airdrome charges, fees, fuel costs and other flight related costs. It is divided into two sub faculties:
It is an airdrome bill confirmation system. It involves mechanization of auditing of station costs. It helps to place disagreements in the air hoses ain informations and the airdrome informations utilizing high grade of mechanization.
It controls the charges involved in flight motions. It calculates costs like costs of take-offs and landings along with parking and handling charges and the other costs can be added manually. It consists of a general leger where all these sums are booked. Besides SiraxCharge besides helps in planning of budgets and simulation of flight events utilizing the information it shops. In short, SiraxCharge is an effectual monitoring system.
Sirax Business Intelligence
This faculty is really of import as far as determination devising and future planning is concerned. Depending upon the information provided by the old two faculties, Sirax Business Intelligence provides valuable, accurate and timely information through direction studies. It provides the troughs with existent clip studies of air hoses gross revenues figures, flight gross information which helps air hoses to supervise their operations, optimize web and path constructions and do speedy and optimum determinations. It is besides divided into two sub faculties:
It integrates the concern intelligence package with the informations contained in Sirax Revenue Accounting. This helps to bring forth studies, charts, statistical informations which can be used to do productive and speedy analysis. It besides helps to execute ad hoc questions. Sirax View Contains four major information beginnings viz. gross revenues, gross, interline and productiveness which it uses for the coevals of studies.
It provides updated ( real-time ) information about the profitableness of the air hoses by taking into history air hoses grosss and costs. The analysis of the profitableness helps the air hose to do necessary alterations in its operations, path and web construction to rapidly accommodate to the new fortunes. Besides this tool helps the air hoses to compare current net incomes with old informations. It besides helps them to measure the current state of affairs of the company and demand for services which can help the air hoses to do determinations about future programs and schemes to capitalise on future growing chances. The truth of the consequences is defined by the integrating of assorted flight operations like flight planning, going control all within SiraxCockpit. Thus in short, SiraxCockpit is a really utile, accurate and fast coverage tool.
Therefore, Sirax Airfinance platform is a comprehensive tool which can be used an air hose company to acquire real-time accurate information on its fiscal and accounting operations and therefore it can go a really effectual information system in the finance and accounting section of air power sector.
Information systems non merely assist in bettering the quality of service in the air hose industry but its ability to supply seasonably and accurate information besides helps the air hose to cut down costs increase its net incomes. As engineering is altering and bettering twenty-four hours by twenty-four hours along with uninterrupted economic growing of developing states like India there is still a big range for farther development of information systems in the air power industry.