Start

Marketing Proposal

Design

Planning/Project

Material

Stores

Issue to Production

Production

Ship to Site for Assembly

 Advance Payments
Advance payments are the part of a sum due that is paid in advance for goods or services, while
the balance included in the invoice will only follow the delivery.

Advance Payment
Material
( (PO present with
Request generated
Advance Payment)

Sent to Fin Dep with

required Documents

PO discrepant (Sent
back to material)
Verification of
documents

PO approved

No

Cash flow Kept in Finance Dept

Yes

Batch Generation

Cheque Prepared

Batch Finalization

Signed by Authorized
person

End
Handed over to Buyer
Advance Payment Request- if the PO has an Advance Payment Request the material
department forwards it to the Finance Department along with the PO and other documents.

Document Verification- the Finance Department verifies the PO along with other documents. If
there are some discrepancies in PO, it is sent back to the material department.

Cash flow- Once the verification is done the finance department will check the availability of the
cash flow. If there is enough cash flow the batch would be finalized and cheques would be
prepared to be sent to customers. If there is not enough cash flow the PO would be kept in
Finance Department until the availability of cash.

Cheques prepared- the cheques are prepared and signed by the authorized person and handed
over to the buyer.
The Marketing Department gets the orders from the customers and sends the enquiry to the
proposal department.

The Proposal Department gets input from the design department and project department and
finalizes the budget.

According to the buyers specification the design team will prepare a blueprint of the order and
will forward it to project department. The design team will generate an AMR (Additional
Material Requirement).

The Project Department will generate a PRP as against the design created by the design
department.
A PO is generated when the materials are brought. If there is any deviation in the amount of
budget and the actual price, it is sent to the finance department and has to be approved by the
authorized person. If the PO has an Advance Payment Request the material department forwards
it to the Finance Department.

It is sent to the Finance Department along with the PO for verification.

The Finance Department verifies the PO along with other documents. If PO is not present
with the documents or there are some discrepancies in it, the PO is sent back to the
material department.
Once the verification is done the finance department will check the availability of the
cash flow. If there is enough cash flow the batch would be finalized and cheques would
be prepared to be sent to customers. If there is not enough cash flow the PO would be
kept in Finance Department until the availability of cash.
The cheques would be signed by the authorized person and given to customer for
payment.

Once the amount is approved and material is purchased, the store receives the actual material and
issues it to production.

The material is then produced and shipped to the site for assembly.