Regional Accounts Process

Sr. Process As-Is Situation To-Be Situation

No.

CUSTOMER LEDGER
1 Sales Order SOF is processed via email with MS-Excel
Form (SOF) attachment
2 Accounting Sales Collection ('SC') document is punched
Customer by the Depot Operator. But SC is not an
collections accounting document and is not posted into
Customer Ledger. Hence, even if, Customer
collections (Demand Drafts/Cheques/RTGS)
are deposited at the Depot location, the
entry is to be passed by Regional Accountant
vide Bank Slip ('BS') which is posted into
Customer Ledger. All SC documents against
which no BS are generated, ought to
represent post-dated cheques in hand
SOF to be integrated with invoicing module
Duplication of work should be avoided. Depot
Operator is able to raise invoice only to the
extent of the credit period and credit limit
entered into the Customer Master by the
Regional Accountant. Single accounting
document should permit credit limit to be
released to the extent of the collections
received, except in case of Post-dated Cheques
where dual entry is necessary- once at the time
of receipt pre-invoicing & once at the time of
deposit.

3 Ageing of Unadjusted Credits are to be knocked off Unadjusted Credits should appear only in case
Debtors when advance collections are not adjusted at of advance collections where invoice is pending
the invoicing stage, distorting ageing of to be raised
debtors

4 Cheque Date of Debit Note (DN) / Credit Note (CN) / Invoice Amount should be shown as outstanding
Bouncing / Journal Voucher (JV) forms the basis of the against the original date of the invoice:
Rectification Debtors Ageing. For eg., in respect of a 30 31.08.10 and not the cheque dishonour date:
entries days' sale Invoice dtd. 31.08.10, BS dtd. 05.10.10
30.09.10, DN is dated 05.10.10 and in ageing
statement, invoice amount is shown in Oct-
10 outstanding in lieu of Aug-10 outstanding

5 Channel CF limit is updated in the Customer Master. In-built bridge between ICICI Customer
Financing (CF) Invoicing is permissible to the extent of the Accounts & SAP collection module
limit updation limit available. However, manual monitoring
is done for CF cheque payment by the
Customer

6 Sales Return Sales Return by the Direct Silvassa Customer Sales Return Module to be available which
is recorded via Stock Adjustment Note (SAN), facilitates live updation of both Stock and
with no auto-effect into the Debtors Ledger, Debtors Ledgers
warranting passing of JV thru inter-unit
control account

7 Customer On Customer Evaluation, Customer Master is
Master updated with Customer Name, Customer
Updation Address, Salesperson Name, TIN Nos., Credit
Terms, Discount applicability, etc. However,
there is no unique identification code,
preventing overlapping of entry in the
Customer Master. Hence, same/similar
Customer Name may be entered with
different credit limits.
Regionwise Customer Code should be generated
by default when updating Customer Master,
with alert pop-up flashed, when same
Customer is being updated. Similarly, there
should be a provision for alloting Salesperson
Code, ABM Code, RBM Code for building in
hierarchy of Sales team attached to a
particular Customer. Codes should be not
merely in the master format, but should be
amenable for report generation

8 Incentives & CN issued for Target vs. Achievement and for Computations for release of credit notes should
Discounts discounts/incentives not passed on vide be automated
invoice, subsequent to manual workings
Regional Accounts Process
Sr. Process As-Is Situation To-Be Situation
No.
9 Group Scheme Configuration not allowed for free scheme Scheme Master should permit differential
Master quantity available above a defined threshold schemes, in terms of rupee value (absolute per
Updation principal quantity. For eg., in case 5 packs of ltr.), % of rupee value, quantititative,
Lube XHD Plus 20W-40 are to be allowed accepting varying slabs and other scheme
above 5000 ltrs. of principal quantity, then parametres
such free quantity cannot be issued vide
principal invoice and zero/nominal value
invoice is raised
Regional Accounts Process
Sr. Process As-Is Situation To-Be Situation
No.

STOCK LEDGER
10 Product Master Presently handled by Silvassa Quality Control SKU code to be available for report generation.
Updation With several suffixes to the same SKU, MIS
generation/Sales analysis becomes time-
consuming

11 MRP With no bar coding, Batch No. & Month-Year Stock Statement, aparting from Ageing for
classification of Manufacture is not captured into the classifying slow & non-moving stocks, should
of stocks system, leading to manual checking, which give details of MRP categories
may give rise to fraud/error in dispatching
invoiced stocks

12 Issues / Write Prompt is given on using 'tab' key, but 'down Data operator, irrespective of the key used /
off when nil / arrow' key permits invoicing and WONs, other modalities, should not be allowed any
inadequate leading to negative stock balances. Further, entry permitting negative stock balances
stock balance in case same SKU is repeated in the invoice,
pop-up for insufficient stock balance is not
displayed

13 Indenting / Corporate Indenting System (CIS) is in use Customer-wise Indent + Buffer stocks should be
Forecasting where truck-wise indents are processed for tracked and placed through the same system to
all India Depots. CIS is not integrated with avoid duplication / overlapping
RMS

GENERAL LEDGER
14 Financial Accounts are restricted to Trial Balance, and Each Region/State/Depot should be a profit
Reporting costing is not intergrated, due to which centre, with separate Profit & Loss A/c and
(Profit & Loss Region's Profit & Loss A/c and Balance Sheet Balance Sheet
A/c and are not generated
Balance Sheet)

15 Report Consolidated Report for different time- Alternate consolidation options should be
Consolidation periods or all units not available. At available via user-defined reports option
Corporate level, consolidated trial balance, P
& L A/c and Balance Sheet not generated for
Regions + Plant

16 Fixed Assets XL working for computations done for Fixed Fixed Assets Schedule should part of same ERP,
Schedule Assets Schedule as per Companies Act and as where Purchase Order emanates a Purchase Bill
per Income-tax Act. Entries in Schedule not which is further tracked into Schedule as per
linked to RMS entries Companies Act & Income-tax Act, with
Depreciation posting

17 MIS Generation Revex Budget vs. Actual, Capex Budget vs. Provision for user-defined reports option should
Actual, Cash vs. Credit Sale Report, Cost- be made
centrewise Expense Reports are generated in
XL

SUPPLIER LEDGER
18 Expense Common entry is booked for various expense There is zero tolerance for discharging
booking heads, some attracting Service Tax and/or Statutory Liabilities, and hence should be
TDS. But linkage to Service Tax/TDS modules amenable to linkages to all accounting
is with reference to Purchase Bill ('PB') and documents
not to other accounting docyments ('BP', 'CP',
'JV' & 'CN').