International Journal of Economics, Business and Accounting Research (IJEBAR)

Peer Reviewed – International Journal

Vol-4, Issue-3, 2020 (IJEBAR)
E-ISSN: 2614-1280 P-ISSN 2622-4771
https://jurnal.stie-aas.ac.id/index.php/IJEBAR

ANALYSIS OF CASH EXPENDITURE EFFECTIVENESS

THROUGH THE ACCOUNTING INFORMATION SYSTEM OF PT.
TELKOM INDONESIA REGIONAL DIVISION V

Mutiara Rachma Ardhiani1, Yuni Sukandani2, Siti Istikhoroh3, Yurida Sasmita4

University of PGRI Adi Buana, Indonesia
Email: mutiara@unipasby.ac.id

Abstract: This study aims to analyze the procedures and effectiveness of cash
expenditure through the accounting information system of PT. Telkom
Indonesia Regional Division (Divre) V. This type of research is
descriptive qualitative with the Miles and Hubermen model as a method
of analysis. The results showed that the company had implemented
computerized financial management through SAP (System Application
and Product) and cash expenditure using the imprest fund system. The
use of accounting information systems and procedures aims to protect
assets and support the effectiveness of cash expenditure.

Keywords: accounting information systems, effectiveness, cash expenditure.

1. Background
Business is one of the most complex activities and requires careful thinking and careful action
in making decisions, especially in matters related to planning and evaluating the financial
business development of a business or company (Afkar, 2017: 1). Financial measures can be
generated easily if the company has an adequate information system so that at any time
management can read, analyze, and then make decisions immediately (Mariana et al., 2017: 32).
The accounting information system plays an important role in the management of
information regarding transactions related to the company's business activities (Krismiaji, 2015:
9). The accounting information system is used as a system that facilitates the management and
protection of company finances (Mulyani et al., 2018: 22). So that the company's finances are
always adequate in meeting the needs of the company, in addition to looking for sources of
funds, the company must also regulate the use of the funds obtained. To be able to regulate the
use of funds appropriately, companies need to control cash expenditure appropriately. This is
done so that the company's expenditure budget is under the initial plan that has been determined
(Lubis, 2017: 359).
Generally, the effectiveness of cash control is very much needed in carrying out business
activities as well as for maintaining the viability (continuity) of the company. Cash is an asset
that easily changes hands, therefore cash control must be done so that existing expenses can be
controlled from the sources of income obtained (Afkar,178: 2017).
PT. Telkom Indonesia Regional Division (Divre) V was chosen as research object based on
pre-research conducted by researchers indirectly and directly regarding the existing conditions
and problems. The indirect pre-research was carried out by digging up information through
online sources accessed from the company's official website. Data was obtained that PT.
Telekomunikasi Indonesia is a state-owned company in the field of telecommunications and
information media as well as edutainment of telecommunications infrastructure. PT.
Telekomunikasi Indonesia has 7 Regional Telkom offices spread across Indonesia. One of them

International Journal of Economics, Business and Accounting Research (IJEBAR) Page 184
International Journal of Economics, Business and Accounting Research (IJEBAR)
Peer Reviewed – International Journal
Vol-4, Issue-3, 2020 (IJEBAR)
E-ISSN: 2614-1280 P-ISSN 2622-4771
https://jurnal.stie-aas.ac.id/index.php/IJEBAR
is in East Java, namely PT. Telkom Indonesia Divre V, which is the Telkom office in charge of
business operations for the provinces of East Java, Bali, and Nusa Tenggara.
At the end of 2019, Telkom's financial performance increased in several posts. Profit for
the year amounted to IDR 23,200 billion or increased 12.1%, total assets of IDR 214,990 billion
or increased 4.2%, total liabilities of IDR 98,544 billion, or increased 10.9%. The increase in
total assets and liabilities was due to ongoing infrastructure development. But in the same year,
total equity was recorded at IDR 116,446 billion or a decreased 0.7% from the previous year.
Based on the data on the value of earnings, total assets and total liabilities have increased while
total equity has decreased. It is strongly worthy to conduct further research on what kind of
information system Telkom uses to manage its finances in a condition where debt and profits
are increasing, even though its capital has decreased.
Meanwhile, based on direct pre-research, the researcher went to and observed the existing
conditions and problems directly and obtained an overview of the cash expenditure activities
handled by the Finance Service Division. In carrying out its duties, the Finance Service Division
uses systemized accounting information to produce information about transactions as well as
protection for cash expenditure. The accounting information system that has been used by
Telkom, both in the head office and in the region, has used SAP (System Application and
Product) which is supported by FINEST (Financial Enhanced Supporting Tools). However, in
addition to the information from computerized accounting, the implementation of systemized
accounting information still has weaknesses, such as errors in data entry or nominal numbers
that affect journals for bookkeeping.

2. Literature Review
Effectiveness is the result of an administration that is funded following the results obtained from
the initial plan for the objectives of an institution. The measure of the effectiveness of cash
expenditures is an aspect of controlling cash expenditures in a business organization. Internal
protection of the cash out process will prevent errors or fraud so that cash expenditures can be
said to be effective (Zamzani et al., 2018: 111). Accounting information for cash expenditures
will be better if it has adequate and systemized control procedures. Manual and computerized
control systems will give different results, but they have the same goal, it is for the accuracy of
the information produced so that decision-makers can trust in making the right decisions
(Krismiaji, 2015: 357).
Cash expenditure is a transaction management activity related to cash out. Cash
expenditures are related to the company's main activities related to four transaction activities,
such as purchasing goods, recording debt, receiving goods, and paying off debts (Krismiaji,
2015: 343). The petty cash fund system is divided into two, they are the imprest fund system
and the fluctuating fund system (Ismail, 2015: 139). The imprest fund system is a petty cash
fund system that is formed and will be filled in according to the initial balance of petty cash at
the initial fund formation. Journals are made only at the time of formation, while during
expenditure, all transactions are not journalized but only the proof is archived. Meanwhile, the
fluctuating fund system is a petty cash fund system whose balance is always changing or
fluctuating from the initial balance of formation. This is because journaling is not only done at
the time of the formation of the initial balance but also when the cash expenditure transaction
occurs.
The accounting information system is a transaction data management system to process
output in the form of useful information in business processes including planning, operation,
and controlling (Krismiaji, 2015: 4). Accounting information systems can be implemented
without computer aids (manual), but also with computer aids or the latest information
technology, or through a combination of both (Krismiaji, 2015: 5).
The effectiveness of internal control of cash expenditures occurs through well-executed
company financial systems and procedures (Suryadi & Yulyana, 2016). The implementation of

International Journal of Economics, Business and Accounting Research (IJEBAR) Page 185
International Journal of Economics, Business and Accounting Research (IJEBAR)
Peer Reviewed – International Journal
Vol-4, Issue-3, 2020 (IJEBAR)
E-ISSN: 2614-1280 P-ISSN 2622-4771
https://jurnal.stie-aas.ac.id/index.php/IJEBAR
cash expenditure procedures is not optimal due to the application of an accounting information
system that does not support the existing expenditure transaction management process (Hartati,
Irwadi & Damayanti, 2017).
The cash expenditure procedure will be effective through the maximum implementation of
the cash expenditure control aspects contained in the procedure. Applying the elements of
internal control for cash expenditures correctly will affect the effectiveness of cash
expenditures. The suitability of the elements and objectives in a company's internal control
system procedures with the direct practice of controlling cash expenditures is an indicator that
cash expenditures are effective (Lisma & Oktariansyah, 2018).

3. Method
This research is a qualitative based on the view of postpositivism as a constructive interpretive
model, by looking at the social activity as a complex, balanced, and meaningful, through
interactions between the objects studied (Sugiyono, 2017: 25). Qualitative research is carried
out with natural objects, namely real objects, originally without engineering, even the presence
of researchers will not have an effect on the object under study. Meanwhile, the supporting tools
or facilities are the person (the researcher).
Sources of research data are primary and secondary data sources, with documentation,
observation, and interviews as data collection techniques. Then the research results obtained are
tested for validity through triangulation. Followed by the analysis of the model of Miles and
Huberman. From the results of this analysis, conclusions will be drawn and given input for the
company and further researchers.

4. Results
The results of research on the effectiveness of cash expenditures through the accounting
information system at PT. Telkom Indonesia Divre V shows that cash expenditures have been
implemented effectively and efficiently. This is evidenced by the implementation of a
computerized accounting information system using SAP and FINEST as supporting applications
that help smooth cash expenditure procedures with the existing imprest fund method such as
journal making and transaction documents related to filling, use, and accountability of imprest
funds.
The use of SAP applications and FINEST help control existing cash expenses with the
appropriate division of job descriptions and position. Only officers in the relevant field can
access that field, as well as check and reconciliation holders can only be accessed by Cash &
Bank Officers on SAP and FINEST. The posting process, recording transactions, archiving
transaction documents, and verifying transaction data can only be accessed by the Verification
Officer at SAP and FINEST.
There are restrictions and authorizations in signing cash expenditures automatically in SAP
and FINEST, so when the funds filled in the application do not match the limits of funds that
should be filled, the system cannot continue to the next data access until the data filled in is
under inputting systemized fund limitation data. This also included in filling imprest funds.
Every existing transaction must be accompanied by valid and complete documents and proof of
transactions. Both electronic transaction data entered in the system and non-electronic
transaction data in the form of a print out documents. If they are not complete and correct the
Finance Manager cannot approve of them. For each month reconciliation is carried out,
financial reporting to the head office via online posting and audit via the SAP system or auditors
coming directly to the office.
Provision of advances and replenishment of imprest funds using reimbursement systems
and virtual accounts. Journaling and posting are done online every day, precisely when there is a
transaction or according to the bill. In this case, the Verification Officer will cross-check the
evidence of the existing transaction as a requirement for disbursement of funds for each user, if

International Journal of Economics, Business and Accounting Research (IJEBAR) Page 186
International Journal of Economics, Business and Accounting Research (IJEBAR)
Peer Reviewed – International Journal
Vol-4, Issue-3, 2020 (IJEBAR)
E-ISSN: 2614-1280 P-ISSN 2622-4771
https://jurnal.stie-aas.ac.id/index.php/IJEBAR
it is not complete or not correct, the Verification Officer will return it to the user for correction
so that it can be approved by the Finance Manager.
Filing cash receipts that are included by each user or third party client is equipped with a
transaction proof number if it is complete and correct. The Verification Officer will check the
checklist column and stamp it in full when it has been paid. These results are consistent with
results of previous studies conducted by Lisma & Oktariansyah (2018), that the internal control
of cash expenditure includes the separation of duties, proof of cash that came with a proof
number of transactions, the company stamped paid each of the transactions on the evidence of
cash expenditures, so transactions already paid cannot be paid back when there is information
that it has been paid.
The implementation of cash expenditures controls has been supported by the internal
controls of the Sarbanes Oaxley Act (SOA) and Information Technology General Control
(ITGC) on the rules related to the procedures for application control. These results are in line
with the results of previous studies by Hartati et. al (2017) that the implementation and
procedures for implementing cash expenditures are declared effective if they have been
implemented according to the existing procedures in the company's internal cash expenditures
control system.

5. Conclusion
1. PT. Telkom Indonesia Divre V has managed and computerized its finances systematically
using information technology such as SAP (System Application and Product) as the main
financial system and supported by the FINEST application (Financial Echanced Supporting
Tools).
2. The Finance department handles cash expenditures for Regional V (East Java, Bali, and
Nusa Tenggara). The cash expenditures system applied is the imprest fund system.
3. The company's cash expenditures have been effective. This can be seen based on the use of
an accounting information system with SAP and FINEST, which is very supportive of
existing cash expenditure procedures. So the use of cash expenditure transactions by
procedures that apply to cash expenditure limits and authorization of existing transactions
are controlled simultaneously in the SAP system.

6. Implications
The implication of the results of the discussion of this research data is useful as additional
material, especially regarding the application of information generated from systemized
accounting, so that company considerations can be used in determining and implementing future
cash expenditure controls. Besides, the results of the discussion of this research data are useful
for companies in assessing and evaluating the current accounting information system to improve
future cash expenditure procedures to make them even better.
PT. Telekomunikasi Indonesia is expected to be able to develop better SAP and FINEST in
the future so that they are not only able to detect errors (fraud) but also automatically create
corrective journals, so for the branch office of PT. Telekomunikasi Indonesia Regional
Divisions I to VII spread across Indonesia can post more quickly for financial reporting. To
improve competence, company growth, maintain competitive advantage, and effectiveness of
cash expenditures, PT. Telekomunikasi Indonesia is also expected to be able to update the
accounting information system every year that can be applied to all branch offices of PT.
Telekomunikasi Indonesia Regional Division I to VII.

7. Research Limitation
The focus of this research is the analysis of the effectiveness of extracting information about the
cash expenditure through the accounting information system of PT. Telkom Indonesia Regional
Division V and documentation as facts on the required data. The research carried out only used

International Journal of Economics, Business and Accounting Research (IJEBAR) Page 187
International Journal of Economics, Business and Accounting Research (IJEBAR)
Peer Reviewed – International Journal
Vol-4, Issue-3, 2020 (IJEBAR)
E-ISSN: 2614-1280 P-ISSN 2622-4771
https://jurnal.stie-aas.ac.id/index.php/IJEBAR
three research objects i.e cash expenditures, cash expenditure control, and accounting
information systems. For further research, it is recommended to add new research objects that
are more complex and followed by the addition of research subjects from several other fields in
related companies.
References
Afkar, T. (2017). Penganggaran Bisnis. Surabaya: Unipa Pres.
Hartati, S., Irwadi, M., & Damayanti, I. (2017). Penerapan Sistem Informasi Akuntansi
Pengeluaran Kas pada PT Citra Bumi Sumatera Palembang. VI(I), 14–21.
Ismail. (2015). Akuntansi Bank: Teori dan Aplikasi dalam Rupiah. Jakarta: Prenada Media.
Krismiaji. (2015). Sistem Informasi Akuntansi. Yogyakarta: UPP SKIM YKPN.
Lisma, M., & Oktariansyah. (2018). Analisis Prosedur Pengeluaran Kas pada PT Jasa Raharja
(Persero) Cabang Sumatera Selatan. Jurnal Media Akuntansi, 1, 40–49.
Lubis, A. I. (2017). Akuntansi Keprilakuan. Jakarta: Salemba Empat.
Mariana, A., Syaban, S. I., Ma’ruf, W., & Suarni., A. (2017). Sistem Informasi Akuntansi.
Surabaya: UM Surabaya Publishing.
Mulyani, S., Suzan, L., Sagara, dkk. (2018). Sistem Informasi Akuntansi. Bandung: Unpad Pres.
Sugiyono. (2017). Metode Penelitian Bisnis (Pendekatan Kuantitatif, Kualitataif, Kombinasi,
dan R&D). Bandung: Alfabeta.
Suryadi, D., & Yulyana, Y. (2016). Evaluasi Sistem Pengendalian Internal terhadap Efektivitas
Pengeluaran Kas pada AJB Bumiputera 1912 Kantor Cabang Cimahi. Jurnal Akuntansi,
10(2), 1–74.
Zamzani, F., Mukhlis, & Pramesti, A. E. (2018). Audit Keuangan Sektor Publik untuk Keungan
Pemerintah Daerah. Yogyakarta: UGM Press.

International Journal of Economics, Business and Accounting Research (IJEBAR) Page 188