Design of Inventory Card Simulation Application for MSMEs Using Extreme Programming
Muhammad Syahid Pebriadi1, Putriana Salman2, Tino Kemal Fattah3
1 Computerized Accounting Study Program, Politeknik Negeri Banjarmasin
2,3 Accounting Study Program, Politeknik Negeri Banjarmasin,
* Coresponding author: [email protected]
abstract
This research aims to create an inventory card simulation application that assists MSMEs in recording and controlling their stock of goods. Therefore, this study employs Extreme Programming as the research method, which ensures rapid development, flexibility, and customer-centricity. The main results of this research demonstrate a novel contribution by providing a web application that empowers MSMEs owners to efficiently make inventory card.
This application offers an intuitive user interface, real-time data updates, and customizable features tailored to MSMEs requirements, ultimately enhancing their financial management capabilities.
Keywords: Inventory Card Simulation, Web-based, MSMEs, Extreme Programming.
1. INTRODUCTİON
Inventory is goods that are stored and later sold by business operators at a certain time, depending on demand or future periods. Inventory of goods is essential for both trading and manufacturing businesses, including micro, small, and medium-sized enterprises (MSMEs), because it plays a vital role in running business operations and meeting customer needs. Therefore, MSME operators must manage their inventory effectively and carefully plan their procurement (Atmika, et al., 2023). The management of inventory involves applying inventory accounting in accordance with financial accounting standards (FAS), which includes recording and valuing inventory of goods for sale (PwC Indonesia, 2021). If inventory is not managed properly, it can have a negative impact on various aspects of the business, which can hinder its sustainability.
Some of these negative impacts include, firstly, the loss of sales opportunities. When inventory is not managed properly, a business unit may run out of stock when demand suddenly increases and fail to fulfill customer orders. As a result, the business unit can lose sales opportunities and customer trust. Secondly, there can be financial losses caused by holding too much inventory. Excessive inventory can lead to high storage costs. Thirdly, there is a risk of damage or expiration. This occurs when the inventory in the warehouse remains unsold for an extended period.
For some MSME operators, adopting financial accounting standards is considered burdensome due to their limited knowledge (Nur Diana et al., 2023). One common issue in MSMEs is that their business administration processes are manually conducted, leading to inventory management problems. However, the current technological advancements can be utilized to assist and alleviate business operators in recording and evaluating their inventory of goods. Consequently, the design of an information system or inventory application can aid MSME operators in managing their inventory of goods.
The use of accounting information systems can improve the performance of MSMEs (Renaldo et al., 2021). Hamundu (2021) measuring the readiness of accounting information systems in cloud computing using the TOE-TAM framework as one form of platform adoption for MSMEs. Sinarwati (2020) has created a mobile-based accounting information system that has a positive impact on SMEs using the application. This is evident from the more organized and well-structured business performance. Furthermore, the comprehensive research indicates that the use of accounting software can assist SMEs in determining whether their financial condition is healthy or not (Rahman et al., 2021).
This research aims to create an inventory card simulation application that assists SMEs in recording and controlling their stock of goods. This research will consider the challenges faced by MSMEs in financial management and how the use of XP can overcome these challenges to provide solutions that are more adaptive and responsive to the changing needs of MSMEs in the dynamic digital era. Thus, this research will make a significant contribution to the understanding and ability of MSMEs in managing their business finances in the digital era, while incorporating innovative software development methods such as Extreme Programming.
2. LİTERATURE REVİEW 2.1 Inventory
The Indonesian Institute of Accountants states in the Financial Accounting Standards for Micro, Small, and Medium-sized Entities (SAK-EMKM) that inventory is a current asset:
a) For sale in normal course of business; b) In the production process for subsequent sale;
and c) In the form of materials or supplies for use in production or service provision activities (Afiah & Samsinar, 2020; Syafira et al., 2023).
2.2 Inventory Recording Method 2.2.1. Perpetual Method
In this method, the cost of inventory and cost of sales are calculated and recorded at the time of each transaction by creating inventory cards for each type of item. These cards record the quantity and cost of goods purchased and sold, allowing the inventory balance to be known at any time without the need for physical inventory counting (Purnamasari et al., 2022).
2.2.2. Periodic Method
In the periodic method, the cost of ending inventory and the cost of goods sold are calculated and recorded at the end of the accounting period. Physical counting is conducted to determine the quantity of remaining goods in the warehouse, and then multiplied by the unit price. As a result, the inventory balance and the cost of goods sold cannot be determined at any point in time.
2.2.3. Web-Based Application
(Patel, 2019) This reference discusses the impact of web-based applications on business efficiency, and can explore how web-based applications can help MSMEs improve the efficiency of their financial management by facilitating access and analysis of financial data. (Johnson, 2020) This research deals with how MSMEs can utilize web-based tools in their financial management. So that it is able to explore how web-based applications can change the way MSMEs manage their finances, especially in terms of reporting and monitoring.
(Anderson, 2021)This reference discusses web-based financial tools in the context of comparative analysis, can examine the way web-based financial ratio applications are designed compared to similar tools in terms of functionality and benefits for MSMEs. (Lee,
2021) This research discusses the usability (ease of use) of web-based applications. So that it can explore how usability aspects can affect the adoption and effectiveness of web-based financial ratio applications among MSMEs.
A large amount of literature emphasizes the importance of digital tools and applications in addressing the financial management needs of MSMEs. Researchers has been exploring how web-based applications can empower MSMEs to make data-driven financial decisions, track performance, and ensure financial sustainability. The theme that appears in the literature is the impact of web-based financial ratio applications developed using Extreme Programming on MSMEs. Researchers (Wang & Liu, 2021; Kim & Park, 2022) has explored the results, including improved financial decision making, better financial performance, and increased competitiveness resulting from the implementation of such tools.
2.3 Extreme Programming (XP)
Extreme Programming (XP) is a software development methodology that emphasizes rapid, adaptive, and customer-oriented development. XP focuses on developing high-quality software and prioritizing customer needs by actively involving customers in the development process. Recent research has recognized the value of agile development methodologies, especially Extreme Programming, in the context of developing software applications for MSMEs. Research by Prabowo dan Kuswanto (2019) and Gupta et al. (2020) has demonstrated that XP's iterative, collaborative, and responsive approach fits the rapidly changing requirements and needs of MSMEs.
In XP, the development team works collaboratively and organized, focusing on developing high-quality, fast, and adaptive software. XP also puts customer needs first, allowing software developers to produce products that better meet customer needs.
Figure 1 Stages Extreme Programming
Other relevant research on the use of Extreme Programming by (Prabowo, et al, 2020) states that Extreme Programming is necessary due to rapid changes in application requirements during the development process. They perform the planning stages with problem identification and needs analysis, then proceed to design using UML diagrams, coding processes, and functionality and reusability testing. As a result, Extreme Programming helps make it easier for users to solve existing problems.
Gupta, R. (2017) Case studies covering the application of XP in the context of software development projects for small and medium-sized businesses. This reference can provide insight into the use of XP in application development that is appropriate to the scale of MSMEs. Smith, J. (2021) This research may include XP applications in software development for small businesses. Can evaluate how XP affects the results of development projects and their application in the context of MSMEs.
3. RESEARCH METHOD
This research employs a qualitative research approach, specifically adopting a case study design (Tomaszewski et al., 2020). A case study is a research method that provides an in-depth description of a particular case involving humans or events, with data obtained through interviews, observations, and documentation. The data utilized consists of secondary data, which includes inventory transactions such as sales, purchases, sales returns, and purchase returns for MSMEs, procedures for recording inventory transactions in MSMEs, and final inventory reports. The analysis method utilized by the author is descriptive, while the software development method to be used is Extreme Programming.
The analysis method employed by the author is the descriptive method, which involves determining, collecting data, classifying, and then creating an inventory stock card application for SMEs. The following are the steps in performing data analysis techniques:
1. Collecting data on sales, purchases, sales returns, and purchase returns of inventory for MSMEs over a period of 1 month.
2. Simulating the recording of inventory into stock cards based on the acquired data.
3. Software Development.
The software development method to be used is the Extreme Programming (XP) method. This method focuses on delivering high business value and being responsive to changing user needs. It has several advantages, including a focus on organized and collaborative teams, user-oriented iteration and rapid feedback, integrated testing
throughout the development cycle, and simplicity in design and code. XP also incorporates principles such as planning game, pair programming, continuous integration, and refactoring, which help improve software development quality and speed. In practice, XP has proven to enhance user satisfaction, reduce development time and costs, and produce more reliable and maintainable software (Shrivastava et al., 2021).
The stages of this software development method are as follows:
a. Planning.
This step involves analyzing system requirements. It will result in user requirement documents or can be seen as data related to user preferences when building the system. These documents will serve as a reference for system analysts to translate into programming languages.
b. Design.
The design process translates the requirements into a software design that can be estimated before coding. This process focuses on data structure, software architecture, interface representation, and procedural details (algorithmic). This step will create a document called software requirements. This document will be used by programmers to carry out system development operations.
c. Coding.
Coding is the translation of the design into a programming language that can be understood by the computer. It is done by a programmer who will translate the transactions required by the user. This step is the same as working on a system.
d. Testing.
This stage can be considered as the final step in software development. After conducting analysis, system design, and coding, the finished system will be used by the user. This stage is more specific to functional system testing using black box testing to assess the compliance of the system with the requirements (Xu et al., 2016).
4. RESULT AND DİSCUSSİON 4.1. Research Data
The research data collected includes initial inventory balance data, purchasing data, and sales data for commercial goods from the microbusiness P.V.M Hanifah Sport in Banjarmasin. The inventory samples taken consist of 3 items that were frequently sold,
namely tennis balls, vests, and Onyx glass trophies for the period of March 2022. The collected data is used as simulation data for creating the inventory card application.
4.2. Data Analysis
In this research, the inventory valuation method used is the FIFO (First In First Out) method. Here is the initial balance data, purchase data, and sales data for the three inventory items:
4.3. Software Development 4.3.1. System Analysis
The inventory card application is software designed to assist companies or businesses in managing and monitoring their stock of goods. This application provides an organized system for recording and tracking all aspects of inventory, including purchases, sales, and the quantity of available items.
Here is an explanation of some common features that can be found in inventory card applications:
Inventory Recording: Inventory card applications allow users to record each inventory item owned by the company. Recorded information may include product names, descriptions, serial numbers, categories, and other relevant attributes.
Purchasing and Receipt: This application enables users to record purchases of goods from suppliers. The recorded data includes the purchase date, quantity of items, unit price, supplier, and purchase invoice. After the items are received, this information is used to update the inventory automatically.
Sales and Delivery: Inventory card applications also allow users to record sales of goods to customers. Sales information, such as the sale date, quantity of items sold, unit price, customer, and sales invoice, can be recorded in the system. This data also reduces the available inventory quantity.
Inventory Monitoring: This application provides an overview of the quantity of goods available in inventory. By using inventory cards, users can track incoming and outgoing inventory, view the actual stock levels, and get information about items that are running low and need replenishing.
By using inventory card applications, companies can optimize their inventory management, reduce the risk of stock shortages or excess inventory, improve operational efficiency, and ensure the availability of the right goods at the right time
4.3.2. System Design
A context diagram is a type of diagram used in System Analysis and Design to assist in formulating system specifications or system requirement analysis. The context diagram provides a high-level overview of the entire system and also shows how the system interacts with external entities. The context diagram for the inventory card application can be seen in Figure 2. There are 3 entities: suppliers, finance, and the sales department.
Data Flow Diagram (DFD) Level 1 elaborates and maps the main data flows within the system and how these data interact with various processes within the system. DFD Level 1 is shown in Figure 3, which includes External Entities, Processes, Data Stores, and Data Flows. The involved entities are Operator, Supplier, and Inventory Manager. The processes involved include Order Goods, Record Incoming Goods, Record Outgoing Goods, and Report Generation. Data Stores include signed purchase orders, item stock lists, invoice archives, and outgoing item lists. Data flows include purchase data and item request data.
DFD Level 2 provides more detailed information compared to DFD Level 1. In this level, each major process in DFD Level 1 is divided into more detailed sub-processes. The main goal of DFD Level 2 is to provide a deeper understanding of data flow and data manipulation within the system. DFD Level 2 for sub-process 1 can be seen in Figure 4.
Entities involved are suppliers, processes include Checking Item Stock and Creating Purchase Orders. Data stores include item stock lists and purchase orders. Data flow consists of order data.
DFD Level 2 for sub-process 2 can be seen in Figure 5. The entity involved is suppliers.
The processes include validating purchase invoices and recording incoming goods. Data stores include purchase invoices and item stock. Data flow consists of item data.
DFD Level 2 for sub-process 3 can be seen in Figure 6. The entity involved is the Operator. Processes include recording item requests, checking item requests, creating outgoing item lists, updating item stock data, and signing outgoing item lists. Data store includes item data. Data flow consists of item data.
DFD Level 2 for sub-process 4 can be seen in Figure 7. The entity involved is the Inventory Manager. The process involves recording item requests. Data stores include reports and archives. Data flow includes item data.
Figure 2. Context Diagram
Figure 3. DFD Level 1
Figure 4. DFD Level 2 Sub Proses 1
Figure 5. DFD Level 2 Sub Proses 2
Figure 6. DFD Level 2 Sub Proses 3
Figure 7. DFD Level 2 Sub Proses 4
4.3.3. Database Design
The database in this inventory card application consists of 3 tables: the user table, the item table, and the transaction table. Detailed explanations regarding each table are as follows:
a. User Table (user) contains information about users registered in the application. This table has 6 columns: id, full_name, email, role, username, and password. The primary key column in this table is the id column. This table does not have a foreign key.
b. Item Table (barang) contains information about the list of items. This table has 5 columns: id, name, unit, price, and stock. The primary key column in this table is the id column. This table has a relationship with the transaction table.
c. Transaction Table (tabel_transaksi) contains information about transaction records for items that have been conducted. This table has 9 columns: id, date, receipt_number, receipt_type, item_id, quantity, price, total, transaction_type, and contact_id. The primary key columns in this table are the id column, and it has a foreign key column, which is the item_code.
Figure 8. Database Design
4.3.4. User Interface Design
The interface design stage is a stage for creating rough sketches of the application or website's interface. It is typically used to establish the initial layout in a design. This design utilizes tools or sketching applications like draw.io. The interface design for the inventory card application includes the following pages: Login Page, Dashboard Page, Incoming Goods Page, Outgoing Goods Page, Incoming Goods Report, Outgoing Goods Report, and Stock or Inventory Card Report.
4.3.5. System Implementation
The login page (Figure 9) is a crucial component in many web applications that require user authentication. This page serves as the gateway between regular users and protected areas of the system that require user identification. The primary purpose of the login page is to verify the user's identity.
The Dashboard page (Figure 10) is a visual interface that presents important information in a concise and comprehensive manner. The dashboard is designed to simplify complex information into a more easily understandable form.
The incoming goods entry form page (Figure 11) is used to record details about items or products that have just been received or entered into the warehouse or store. The goal is to ensure that all incoming goods are recorded accurately and organized systematically within the system for reporting and future stock checking purposes.
The outgoing goods entry form page (Figure 12) is used to record details of items or products that are leaving or being taken from the warehouse or store. This is important to ensure that all movements of goods are accurately recorded within the system.
The incoming goods report feature (Figure 13) is a crucial component of the Inventory Card application. This feature allows users to generate reports on items that have entered the warehouse or store during a specific period. The incoming goods report feature helps track and monitor incoming goods, enabling better inventory management and warehouse operations.
The outgoing goods report feature (Figure 14) is an important part of the Inventory Card application. This feature allows users to generate reports on items or products that have left the warehouse or store during a specific period.
The stock or inventory report feature (Figure 15) is an integral part of the inventory card system. Its purpose is to provide a clear and accurate overview of the inventory or stock of goods in a specific location, such as a warehouse or store. With this report, companies can
monitor their inventory levels and make informed decisions about when to purchase more items or when to sell or distribute existing goods.
Figure 9. Login Page
Figure 10. Dashboard Page
Figure 11. Incoming goods entry form page
Figure 12. Outgoing goods entry form page
Figure 13. Incoming goods report feature
Figure 14. Outgoing goods report feature
Figure 15. Stock or inventory report feature
5. CONCLUSİON
This research successfully developed an inventory card application specifically designed to assist micro, small, and medium-sized enterprises (MSMEs) in managing their inventory of goods. This application provides an effective solution for recording and controlling stock items, allowing MSMEs to optimize their inventory management. It integrates various aspects of inventory, including purchases, sales, and stock monitoring, into one organized system. This enables MSMEs to have better visibility of their inventory and avoid the risks of stock shortages or excess. It is designed with a user-friendly interface,
making it accessible to users, including MSMEs who may not have a strong technical background. Features such as the login page, dashboard, and forms for recording incoming and outgoing goods simplify the inventory management process.
Furthermore, it provides real-time data on inventory, enabling MSMEs to make better decisions about when to order more goods or when to sell specific products. This can improve operational efficiency and reduce costs associated with uncontrolled inventory.
Additionally, it offers reporting features that help MSMEs track and monitor incoming and outgoing goods. These reports are valuable not only for management purposes but also for auditing and compliance with regulations. The use of this inventory card application has had a positive impact on the MSMEs that have adopted it. Businesses have become more organized, efficient, and competitive in the market.
Therefore, the development of this inventory card application can be considered a significant step in supporting MSMEs in managing their inventory more effectively and enhancing their competitiveness in the market. The application provides an affordable and user-friendly solution that can be adopted by MSMEs of various skill levels and business scales.
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