National Thermal Power Corporation Limited: Manual On Procurement and Stores Accounting November 2002

NATIONAL THERMAL POWER CORPORATION LIMITED
MANUAL ON PROCUREMENT AND STORES ACCOUNTING November 2002
A. F. FERGUSON & CO. NEW DELHI
CONTENTS
Process No.
01 02 03 04 05 06 07 08 09 10 11 12
Process
Introduction Allotment of Party code Sale of tender documents EMD receipt, refund and forfeiture Vetting of purchase orders and amendments Payment against purchases Processing of Freight bills Processing of Price Stores Ledger (PSL) Accounting for Scrap Material Accounting for sale of Scrap Material Physical verification of store items Accounting for Obsolete/ Slow moving items Accounting for Cash Purchases LIST OF FORMATS
Page no.
1 3 6 11 13 26 29 34 35 39 45 47
FORMAT Statement of tender documents sold Summary statement of sale of tender documents Schedule of sales tax and other duties payable on sale of tender documents Bid opening statement EMD Register Payment Release Authorisation (PRA) Bills Register Advances Sub- Ledger Status of a Vendor across all Account Codes Register for issue of sales tax forms Consolidated statement of payment released for issue of forms for concessional sales tax Statement of Tax payable LSC Register LC Register LC payment Register Advice note for establishment of FLC Conditions of FLC Break-up of FLC value MIS cum SRV SIV MRN MTN
Procurement and Stores Accounting
FORMAT NO SB/01 SB/02 SB/03 SB/04 SB/05 SB/06 SB/07 SB/08 SB/09 SB/10 SB/11 SB/12 SB/13 SB/14 SB/15 SB/16A SB/16B SB/16C SB/17 SB/18 SB/19 SB/20 1
FORMAT Priced stores ledger Statement of Scrap sold during the month Field Book for Stock verification-Materials Department Field Book Register- Other than Materials Department Field Book Register Stock Verification & Reconciliation Sheets Stock Discrepancy Voucher Stock Discrepancy Register Register for Obsolete / slow moving items List of new parties who have been unsuccessful in tender List of parties whose accounts have not been in operation for three years or more List of EMDs outstanding Report on unadjusted advances PRA received but pending for payment LSC s pending with bank for payment Statement of Payments released against FLC List of SRVs provisionally valued List of SRVs not received from Stores Department List of items where quantity is nil but value exists List of items where value is nil but quantity exists List of items where quantity or value is negative Rate variance report Statement of SDVs pending clearance Statement of Miscellaneous purchases/expenditure
FORMAT NO SB/21 SB/22 SB/23A SB/23B SB/23C SB/24 SB/25 SB/26 SB/27 SB/MIR/01 SB/MIR/02 SB/MIR/03 SB/MIR/04 SB/MIR/05 SB/MIR/06 SB/MIR/07 SB/MIR/08 SB/MIR/09 SB/MIR/10 SB/MIR/11 SB/MIR/12 SB/MIR/13 SB/MIR/14 SB/MIR/15
Introduction
This manual outlines the procedure for allotment of party codes, vetting of purchase orders and amendment to purchase orders, accounting for sale of tender documents, receipt, refund, and forfeiture of Earnest Money Deposit. This manual also deals with procedure for processing and payment of suppliers bills, freight bills and accounting for purchase of stores material. The accounting for issue of stores material for works, return of materials to stores, transfer in/out (to other units)of store materials, return of scrap material to stores, and sale of scrap have been included in the manual. The procedure for processing of PSL, Physical verification of stores, accounting for shortage/excess and creating provisions for obsolete and slow/non moving stores items and accounting for cash purchases are also detailed in this manual.
Process : Allotment of Party code Process brief :
Process No : 01
The process deals with the procedure to be followed for allotting codes to the parties by the Purchase department and their subsequent de-activation in the system. In respect of party codes the sections concerned should ensure the following: Party codes are serially controlled accounting location-wise across all LOAs / POs. One party does not have more than one code. Codes for parties whose accounts have not been in operation for three years or more are frozen in the system in order to prevent any unauthorized use of the same. Party codes for parties new to NTPC and who have been unsuccessful in a purchase tender are also frozen in the system. Any subsequent operation of such (i.e. frozen) party codes is to be done with the approval of HOD (Materials) in consultation with the HOF. Identification / flagging of SSI units is done at the time of allotting the party codes to facilitate information for disclosure regarding SSI units. Departments / sections involved in the process Purchase department Finance and Accounts department Stores Bill section
Procedure: Allotment of party code S.No 1 2 Person Frequency Responsible Immediately Allot codes to the new parties on Purchase receipt of request for tender department documents. Monthly Purchase Generate the following lists: department List of new parties who have been and F&A unsuccessful in any tender. List of parties whose accounts department Bill have not been in operation for Stores Section three years or more. Review the above lists jointly with the Purchase department and freeze the party codes in the system. Activity Remarks
Documents - Records Document Title List of new parties who have been unsuccessful in tender List of parties whose accounts have not been in operation for than three years or more Document Type MIR MIR Format Ref SB/MIR/01 SB/MIR/02 Frequency Monthly Quarterly Distribution Purchase department F&A department Purchase department F&A department
Process: Sale of tender documents Process brief
Process No : 02
The process lays down the procedure to be followed for sale of tender documents by the Purchase department and accounting thereof by F&A Department. While discharging this function, it is to be ensured that: Only draft/ pay order is accepted for sale of tender documents. Tender documents are issued only against a money receipt (MR) issued by the Cash and Bank section. The sale price of tender documents includes the elements of sales tax or any other applicable local tax and such amount is identified for each tender in order to facilitate the remittance of such tax collected. The Cash and Bank Section verifies the statement of tenders sold and indicates the BRV nos. in the statement of tenders sold.
Departments / sections involved in the process Finance and Accounts department Cash and Bank Section Purchase Department
Procedure: Sale of tender documents S. No. 1 Activity Receive request/application for the tender documents Person responsible Purchase department Frequency As and when Remarks
Authorise (on the application) for issue of tender documents and hand over the application to the vendor for deposit of the draft/ pay order with the Cash and Bank Section. Receive the authorized application Cash & Bank form along with the draft / pay section order. Check that the Request is authorized by the competent authority Draft/ pay order is in order Follow the procedures as per the Cash & Bank manual for preparation and authorization of BRV and
As and when Immediately
Same Day
S. No.
Activity deposit of draft/ pay order in the bank. Hand over a copy of the MR to the vendor. Receive the MR and issue the tender document to the vendor. Enter the details in the tender register. Receive a statement of tender documents sold against each tender from Purchase Department and enter the MR references. Generate JV to create liability for tax payable and a BPV for remittance of the sales tax for the taxes collected on sale of tenders.
Person responsible
Frequency
Remarks
3 4
Purchase Department Cash & Bank Section
As and when Weekly
Stores Bill By the Section/ scheduled Establishment date section/ Miscellaneous Bills section
Verify and authorize the JV and BPV in the system and sign on the hard copies as per IWA Prepare a challan for deposit of the sales tax and forward the same along with the authorized BPV to the Cash and Bank Section. Receive the challan and the Cash & Bank As and when authorized BPV along with the Section supporting documents. Follow the procedure as per Cash & Bank manual for preparation of cheque/draft for deposit of sales tax. Deposit the sales tax with the concerned authorities. Send a copy of the challan to the section concerned for their records. Generate a schedule of sales tax and Section other duties payable accounts and concerned. review the same.
By the scheduled date
Prepare and file the return for sales tax on monthly and yearly basis. Receive a summary statement of Cash & Bank Monthly 4
S. No.
Person responsible tender documents sold from Section purchase department for reconciliation of amount received against sale of tender documents
Activity
Frequency
Remarks
Documents - Records Document Title Statement of documents sold tender Document Type I Format Ref SB/01 Frequency Weekly Distribution - Purchase department - Cash and bank section - Purchase department - Cash and bank section - Cash and bank section
Summary statement of sale of tender documents
SB/02
Monthly
O SB/03 Monthly Schedule of Sales tax and other duties payable on sale of tender documents Monthly and year-end O Monthly/ returns of sales tax Yearly Legends: I Input O Output R Report/Register MIR Management Information Report Accounting entries 1) Sale of tender documents Bank A/c Dr To sale of tender forms Foreign / Indian currency Cr To sales tax payable Cr 2) Sales tax remittance Sales tax payable To Bank A/c Dr Cr
Process: Accounting of EMD Process brief This process lays down the procedure to be followed in respect of:
Process No : 03
Receipt of EMD and accounting thereof Adjustment of EMD against security deposit in respect of successful bidders Refund of EMD to unsuccessful bidders Forfeiture of EMD Review of outstanding balances in EMD accounts The modes of EMD i.e. draft/ other instruments should be as per the tender document. This process covers EMD received through draft/ pay order. The process for receipt, custody, extension, release and forfeiture of EMD received in forms other than draft/pay order is covered in the manual on Bank Guarantees and other Non-cash securities. While discharging this function it is to be ensured that: The drafts/pay orders are checked for their correctness and validity at the time of opening of the tenders. The drafts/ pay orders along with the bid opening statement, are received in Finance Department immediately on opening of tenders. EMD of the unsuccessful bidders is refunded on completion of the purchase decision. In the case of successful bidder where the EMD is submitted in the form of BG, the BG is released only on submission of initial security deposit. In case the purchase order is not accepted by the successful bidder with in the specified time, action for forfeiture is initiated by the purchase department An EMD ledger is maintained to record tender wise and vendor wise EMD received, adjusted, refunded and forfeited. The total of party wise balances as per the EMD ledger is periodically reconciled with the EMD control account On placement of the Order, tender wise EMD account is closed At the time of releasing EMD, the amounts due from the same vendor in respect of any other transaction is ascertained and approval is taken from the HOD (Finance) for making adjustments, if required.
Departments/ sections involved in the process Finance and Accounts department Stores bill section Cash and Bank section Purchase Department
Procedure : Receipt of EMD S.No. 1 Person responsible Receive EMDs in the form of Cash & Bank drafts/pay orders along with bid Section opening statement. Verify and enter the details of the EMD in the system. Follow the procedures as per the Cash & Bank Cash & Bank manual for preparation Section and authorization of BRV and deposit of draft/ pay order in the bank. Generate and issue MR for the draft/pay order received. Record the MR reference on the bid opening statement. Activity Frequency Same day Remarks
Same day
Procedure : Adjustment/ Refund of EMD ` S.No Activity 1
Person Frequency Responsible Bill On Receive intimation from the Stores finalisation of Purchase Department for refund of Section Purchase EMD or for transfer of the EMD to decision. the Security Deposit (SD) account. Bill Same day Check that the intimation for Stores transfer of EMD to SD account is as section per the terms of the PO. Generate a JV for transfer of EMD to SD account. Follow the procedure detailed in the manual on Books Section for preparing and authorizing JV. Generate BPV to refund the EMD Stores after ensuring that the EMD has Section been received against the particular tender and is available.
Remarks
Bill By next day
Verify and authorize the BPV in the As per IWA system and sign on the hard copy.
Receive the duly authorized BPV Cash & Bank Same day alongwith the supporting documents. section Follow the procedure as per Cash & Bank manual for release of payment.
Procedure: Forfeiture of EMD S. No 1 Person Responsible Bill Receive an IOM from Purchase Stores department, with approval of the Section competent authority to forfeit the EMD. Generate a JV to transfer the EMD Stores Bill deposit to EMD forfeited account. Section Follow the procedure detailed in the manual on Books Section for preparing, authorizing and updating JV. Review of EMD Accounts Activity Frequency As and when Remarks
Same day
Procedure:
Review of EMD Account is to be regularly done by the F&A Department. Outstanding EMDs indicating tender-wise status, expiry of validity of bids should be generated on fortnightly basis. The list should be forwarded to the Purchase Department for review and necessary action. S.No 1 Activity Generate a list of EMDs tenderwise, age-wise, particularly EMDs lying beyond the validity of bids Forward the list to the Purchase Deptt for necessary action. Person Responsible Stores Bills Section Frequency Fortnightly Remarks
Documents-records Document Title Bid Opening statement Document Type O Format Ref SB/04 Frequency As and when EMD Register R SB/05 As and when List of outstanding EMDs MIR SB/MIR/03 Fortnightly Distribution Cash and bank section Purchase department Cash and bank section Purchase department Purchase department
Accounting Entries: 1) EMD received by draft / pay order Bank A/c To Earnest Money Deposit-Suppliers 2) Refund of EMD received by draft/pay order Earnest Money Deposit-Suppliers To Bank A/c 3) Transfer of EMD to security deposit account Earnest Money Deposit-Suppliers To Security deposit A/c 4) Forfeiture of EMD Earnest Money Deposit-Suppliers To Earnest money forfeited A/c Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
10
Process: Vetting of Purchase Orders and amendments Process brief
Process No: 04
The Purchase department raises purchase orders and issues amendments as and when a purchase/amendment decision is taken. F&A department vets the Purchase Order (PO) and amendments, where necessary as per instructions issued from time to time. While discharging this function it is to be ensured that: A PO/ amendment is authenticated on the system by F&A department, after concurrence. In case of POs with provision for rates as applicable on the date of supplies any change in the rates made by the Purchase department is authenticated by the Finance Department. In case the PO does not provide the firm rate for the material or rate/ amount of taxes and duties, and the same are subject to the rates applicable as on the date of despatch, then the bills processing section updates these fields in the system and the officer concerned authorizes the updation of the rate/amount in the system. The bills should be processed only on the basis of the finance-vetted PO, wherever applicable. The value/ provisions of securities like BG for advances etc., are as per the amended PO value/provisions.
Departments / sections involved in the process Finance and accounts department Stores bill section Purchase Department.
Procedure : Vetting of PO/Amendments S. No. 1 Person responsible Generate a PO/Amendment Order Purchase on the basis of concurred and department approved proposal. Activity Frequency As when and Remarks
Same day Forward one copy of the PO/Amendment to the F&A department Concurrence Section Within a Check the PO/amendment with the Concurrence day as approved proposal. Vet the Section PO/Amendment and update the per IWA same in the system.
11
Documents - Records Document Title Purchase Order Purchase Order Amendment Award/ amendment proposal Note: The computerised system should maintain the original PO as well as amendments thereto. The latest amendment should indicate the reference of the previous amendments. There should also be a provision to generate a consolidated PO inclusive of all amendments for record purposes after execution and closure of the PO. Document Type I I I Format Ref Frequency As and when As and when As and when Distribution Purchase department Stores Bill section Purchase department Stores Bill section Purchase department Concurrence section
12
Process: Payment against purchases Process brief
Process No.: 05
This process deals with release of payments to vendors as per the terms of the PO. The process pertains to release of: 1. Payments through cheque/draft. 2. Payments through Letter of Short Credit (LSC) 3. Payments through Letter of Credit (LC). The process deals with opening of Foreign LCs (FLC) and operation of Inland and Foreign LCs. The procedure for opening Inland LCs (ILC) is covered in the manual on Cash & Bank. While discharging the function it is to be ensured that: All the pre-requisites as per the terms of the PO have been met prior to release of payment Vendors account is credited only at the time of actual bill processing and not at the time of creation of provision. The stores liability account should be credited till such time. The relevant sales tax forms are issued and the sales tax register is updated for the same. Provisions for entry/purchase tax /other municipal taxes etc., wherever applicable, are made and discharged The SRVs are linked to the Store purchase account head based on the nature of store (construction / O&M stores), nature of item (stores, consumables, spares, etc.), material main group (steel, cement, etc), rotational / other stores items etc. as per the chart of accounts. The bill processing section should confirm the account head. The bill is processed for the actual quantity received. Security deposit as applicable is released on completion / compliance of all prerequisites as per the PO, on certification by the Purchase Department. At the time of releasing Security Deposit the amounts due from the same vendor in respect of any other transaction is ascertained and approval is taken from the HOD (Finance) for making adjustments, if any. A separate LC is opened for each PO. For payments through LCs, deviations, if any, in the documents vis--vis the terms of the LC, the same are attended to in time to avoid any demurrage/interest claims. Deductions for freight or any other incidental charges paid by NTPC on behalf of the supplier are noted on the SRV by the stores department. The details of deductions made from the vendors invoice are intimated to the vendor and Purchase department. Un-adjusted advances are reviewed periodically and age analysis is prepared, to ascertain action required for adjustment of advances. Confirmation of balances is obtained from the vendors periodically. 13
A quarterly report on payments due to SSI units is sent to Corporate Centre Once LC is opened all payments are made through LC only unless the LC is closed with the approval of the competent authority.
Departments/ sections involved in the process Finance and Accounts Department Cash and bank Stores Bill Purchase department
A: Procedure: Payment by way of cheques/drafts- Advances S. No. 1 Activity Receive the authorised Payment Release Advice (PRA) along with the supporting documents from the Purchase department and enter the same in the bills register. Check the following: PO provides for payment of advance The amount of advance has been calculated correctly The PRA is authorised as per DOP The requisite BGs have been received in the Cash and Bank Section and got confirmed from the issuing bank. Update the Bills register. Stores section Generate BPV, and forward it to the competent authority for authorization of payment. Verify and authorise the BPV. Sign Stores the hard copy of the BPV. section Forward the BPV along with a copy Stores of the PRA to the Cash and bank section section for release of payment Person responsible Stores Bills Section Frequency As and when Remarks
Bill
Same day
3 4
Bill Bill
Same day Same day
14
S. No. 5 6
Person Frequency responsible Follow the procedure as per Cash & Cash and Same day Bank manual for release of payment Bank section Generate a statement of PRA Stores received but pending for payment section Generate an age analysis report of advances outstanding, for review by HOF. Bill Weekly Monthly
Activity
Remarks
B: Procedure : Payment by way of cheques/drafts: Payment against SRV S. No. 1 Activity Person responsible Stores Bills section Bill Frequency As & When Remarks
Receive the authorised PRA along with invoice, SRV and other supporting documents from the Purchase /Stores department. Stores Check the following: Section PRA and SRV are approved as per IWA./DOP SRV is complete in all respects. The rate claimed is as per the PO and the quantity billed is as per SRV Ascertain the advance amount to be adjusted, if any, as per the PO terms and make the necessary deductions. In case the purchase department has advised any deduction from the bill, adjust the same. Make other deduction(s), if any, as per PO terms. Claim is lodged by Stores Dept for rejections, short supply and damage in transit. Generate JV for lodging claim on supplier/insurer Process the bill for payment.
Same day
Stores Bill Section
Same day
15
S. No.
Activity Generate a Purchase Journal Voucher (PJV) to account for the purchases and a BPV for the amount payable to the supplier. Generate a JV for lodging claim on supplier/insurer Verify and authorize the PJV and BPV (as per IWA) and JV and sign on the hard copy. Send the BPV along with the PJV to the Cash and bank section for release of payment. For verification and authorization of JV follow procedure as detailed in manual on Books Section File a copy of the PJV along with a copy of SRV and invoice in the PJV file (PJV serial number wise).
Person responsible
Frequency
Remarks
Stores Bill Section
Same day
Stores Bill Section
Same day
Endorse the details of the payment released on the PO Follow the procedure as per Cash & Cash and Bank manual for releasing the Bank section payment. Generate a statement of PRA Stores received but pending for payment. section Bill
Same day
Weekly
16
C: Procedure: Payment by way of cheques/drafts- Other Payments S. No. 1 Activity Receive approved PRA from the Purchase department and check the following: Person responsible Stores Bills Section Frequency As and when Remarks
3 4 5 6
The PRA is authorised as per DOP/IWA Liability exists in vendors account for the amount advised Update the PRA register. Stores section Generate BPV, and forward it to the competent authority for authorization of payment. Verify and authorise the BPV. Sign Stores the hard copy of the BPV. section Forward the BPV along with a copy of the PRA for payment to the Cash and Bank section. Follow the procedure as per Cash & Bank manual for releasing the payment. Generate a statement of PRA received but pending for payment. Stores section
Bill
Same day
Bill Bill
Same day Same day Same day Weekly
Cash and Bank section Stores section Bill
17
D: Procedure : Payment against Letter of Short Credit (LSC) S.No. 1 Person Frequency responsible Receive intimation of receipt of LSC Cash and As and when documents from the bank and Bank section intimate to the Stores Bills Section. Receive intimation from Cash and Stores Bank section and check the advance section copy of the documents with reference to the PO for the following: All the documents required as per the terms of the PO are available. LSC amount is as per the payment terms of the PO. Bills Same day Activity Remarks
In case of any discrepancies in the documents (as against that required as per the PO) intimate the same to the Purchase Department, for taking necessary action. Enter the details of the despatch Stores documents in the LSC register. section Generate a JV to account for the materials in transit and a BPV for the amount payable and forward it to the competent authority for authorization of payment.
Bills
3 4 5
Verify and authorise the BPV. Sign Stores the hard copy of the BPV. section Forward the BPV for payment to the Stores Cash and bank section section
Bill Bill
Same day Same day Same day
Follow the procedure as per Cash & Cash and Bank manual for releasing the Bank section payment Handover the cheque to the bank Cash & Bank
By next day
18
S.No.
Activity and receive the documents. Forward the documents to Stores Bills section.
Person responsible section
Frequency
Remarks
Receive documents from the Cash & Stores Bank Section. section Prepare a forwarding advice and send the documents to the Stores department.
Bills
Same Day
Generate a report of LSCs pending Stores Bills for payment and review for Section necessary action.
Weekly
19
E: Procedure: Payment through Letter of Credit (LC) S.No. Activity Person responsible Frequency Remarks
Opening of Foreign LC (FLC) 1 Receive two copies of the advice Stores note for establishing foreign LC in section the prescribed format from the Head of the Purchase department along with a copy of the PO. Check the following: PO provides for payment through LC. The amount is as per the PO. The Advice Note is duly sanctioned as per IWA. The details provided in the format are as per the PO.
Bill As & when
Enter the details of the Advice Note in the LC register. Prepare the following documents in Stores the prescribed formats: section Conditions of LC Break-up of LC value Covering letter to the HOD(F) of the concerned T&CC office/CC
Bill Same day
4 5 6
Verify and forward the documents to In-charge the HOF for approval. Stores Bill Approve and forward the documents HOF to HOF (T&CC)/ In-charge (CC). (Projects) Receive the duly approved advice note along with the specified documents from the project/ station for opening of the FLC. Prepare a request letter and application to the concerned bank for opening of the FLC. HOF(T&CC office)
Within a day of receipt Same day As and when
F&A Section, T&CC office
By the next day
20
S.No.
Activity Obtain approval of the competent authority and forward it to the bank.
Person responsible
Frequency
Remarks
Obtain the FLC and forward a copy of the same to the HOF of the Project/ station concerned. Enter the details of the FLC opened in the LC register
F&A Section, T&CC office F&A Section, T&CC office
Same day
21
Operation of FLCs 10 Receive documents from the bank and verify the same with the terms of the LC. In case of any deviations/ discrepancies in the documents obtain necessary clarifications from the project/ station concerned and on the basis of the clarifications take necessary action. 11 Receive the debit advice from the bank and ensure that the advice is as per the terms of the LC. Update the LC Register with the details of the advice. Follow the procedure as per Cash & Bank manual for accounting for the bank advice. Raise an IUA on the project/ station concerned as per manual on Books Section and forward the same to the unit along with the debit advice and the other documents received from the bank Generate a project/ station-wise statement of the payments released during the period on account of the project/ station and the IUA thereon and forward to the project/station concerned. Receive IUA from T&CC, update the LC register with the details of the advice. Account for the advice as detailed in the manual on Books Section.
HOF-T&CC office
As & When
F&A sectionT&CC Office
As and when
Same day
12
F&A- T&CC Office
Monthly
13
Stores Bill section-units
As and when
22
Operation of ILCs 14 Receive advance copy of the LC Stores documents from the contractor/bank Section and verify the same w.r.t. the terms & conditions of the LC. 15 In case of any discrepancy noticed in the advance documents, intimate the acceptance or otherwise of the same to Cash & Bank section for intimation to the bank. Receive the negotiated LC documents from the bank, update LC Register and forward the documents to Stores Bills Section. Forward the copy of LC documents to the Purchase Department. Stores Section
Bill
As & When
Bill
Same day
16
Cash & Bank section- units Stores Section Bill
As & When
17
Same day
18
In case of dispatch payment original LR/RR/BOL should be sent to the purchase department. Receive the debit advice from the Cash & Bank bank and forward it to Stores Bills Section Section. Follow the procedures as per the Stores manual on Cash & Bank for Section accounting thereof Bill
As and when
Within 2 days
Documents-records Document Title Payment Release Authorisation (PRA) Document Type I Format Ref SB/06 Frequency As and when Bills Register Report on Unadjusted advances PRAs pending for payments Advance Sub-ledger R MIR MIR R SB/07 SB/MIR/04 SB/MIR/05 SB/08 Monthly Weekly Monthly Distribution Cash and bank section Stores Bill section Purchase department Stores Bill section Stores Bill section Stores Bill section
23
Document Title Bank voucher Status of across all heads Purchase Voucher payment
Document Type I/O
Format Ref -
Frequency Within day receipt Bills a of of -
Distribution Cash and bank section Stores Bill section
vendors account Journal
R I/O
SB/09 Within day receipt Bills As when
Cash and bank section - Stores Bill section a - Cash and bank of section of - Stores Bill section
Register for issue of Sales Tax forms Consolidated statement of payment released for issue of forms for concessional sales tax Statement of tax payable LSC Register LSCs pending with bank for payment LC Register LC payment register Advice note for establishment of FLC Conditions of FLC Break-up of FLC value Statement of Payments Released against FLC Advances sub-ledger
R R
SB/10 SB/11 and - Stores Bill section
R R MIR R R O
SB/12 SB/13 SB/MIR/06 SB/14 SB/15 SB/16A
Monthly As and when Weekly
- Stores Bill section -Stores Bills Section Stores Bill Section F&A Purchase department T&CC F&A T&CC F&A T&CC F&A T&CC
As when
and -
O O MIR O
SB/16B SB/16C SB/MIR/07
As and when As and when Monthly Monthly
24
Accounting Entries: For payment of advance to suppliers/LSC payments 1) Advance to suppliers-GOI/Others/MIT Dr. To Bank A/ c Cr. (Advance type wise break up to be maintained in the system) 2) Processing of supplier bill and adjustment of advance Purchases-Foreign/ Indigenous To Suppliers control A/c To Advance to Suppliers-GOI/Others/MIT To Retention money/SD To Freight control A/c To Entry tax/Purchase tax payable A/c 3) Payment to suppliers Suppliers Control A/c To Bank A/C 4) Release of Security Deposit Security Deposit A/c To Bank A/c 5) For accounting of claim on supplier/insurer Claim on supplier A/c Claim on insurer A/c To Advances to supplier/MIT A/c Dr Dr Cr Dr. Cr. Dr. Cr. Dr. Cr. Cr Cr Cr Cr
25
Process: Processing of Freight bills Process brief
Process No.: 06
This process deals with the release of payments to transporters. While processing transporters bills it is to be ensured that: Each LR/GR is linked to the corresponding SRV In case payment is to be made to non-contracted transporter, Materials department has certified the reasonability of rate In case of freight paid by NTPC on behalf of the vendor, the same is recovered from the vendor Departments / sections involved in the process Finance and Accounts department Stores Bill Section Cash and bank Section Materials department Stores Section Procedure : Processing of Freight Bills S. No. 1 Person responsible Receive authorised freight bills from Stores Bills the Materials/Stores department and Section enter the details in the Bills Register. Check that: LR/RR copies are enclosed with the bill. Endorsed road permits are enclosed where applicable The Stores department has authorised the transporter bills The freight rates applied are as per the work order Enter the details of the freight bill in the system. Generate a JV and BPV and forward Stores them to the competent authority for section authorization of payment. Activity Frequency As and when Remarks
Bill
Same day
26
S. No. 3 4
Person responsible Verify and authorise the BPV. Sign Stores Bill the hard copy of the BPV. section Forward the BPV along with a copy Stores Bill of JV for payment to the Cash and section bank section Follow the procedure as per Cash & Cash and Bank manual for release of payment Bank section
Activity
Frequency Same day Same day
Remarks
Same day
27
Documents - records Document Title Bills Register Document Type R Format Ref. Frequency As and when Distribution
Accounting Entries: For passing of Transporter Bill 1) Freight Control A/C To Freight and incidental liability A/C To Income tax deducted at source payable 2) For release of transporters payments Freight and incidental liability A/c To Bank A/C Dr. Cr. Dr Cr Cr
28
Process: Processing of Price Stores Ledger (PSL) Process brief
Process No.: 07
This process deals with the procedure to be adopted for processing the Price Stores Ledger (PSL). The following documents are used to record transactions in the PSL. Stores Receipt Voucher (SRV) Material Return Note (MRN) Stores Issue Voucher (SIV) Material Transfer Note (MTN)
Receipts While valuing SRVs, ensure that: 1) The indigenous purchases are valued at the landed cost i.e. basic price, excise duty, sale tax, freight and other incidental expenses. 2) In case of imports, the cost of stores includes the following: (a) C.I.F. value of materials (b) Custom duty (c) Port charges, landing charges and clearing agent's commission (d) Local transport charges (e) Indian Agents Commission, if any (e) Other incidental expenses and local taxes, if any In case of an SRV containing several items with different custom duty rates, the custom duty amount for each individual item is absorbed at the applicable rates. 3) The amount payable for freight and other incidental expenses is debited to freight control account on payment of freight bills. At the time of valuation of receipts, freight and other incidental expenses are absorbed in material cost at a pre-determined rate. Each station should fix a pre-determined rate annually based on the value of freight vis--vis stores value. In case price basis is FOR site, freight & insurance are not loaded separately. The balance in the freight control account is reviewed at the end of each quarter and the nominal balance that may remain unadjusted is charged off to the P&L account. All receipts in respect of which the bills have not been received/ processed are provisionally valued at the PO rates. Adjust the provisional value at the time of actual bill processing. Charge off the difference, if any, in the purchase cost to inventory/ consumption as the case may be. The stores transferred from other units are valued at the rate intimated by the transferor unit. The cost of transport from the transferor store to the transferee store is charged to revenue expenditure. The Material Transfer Note contains the provisional/ final value of the material transferred and the materials are accordingly valued. The
29
provisional value is adjusted at the time of accounting for inter unit advices. Charge off the difference, if any, in the store transfer cost to the inventory/ consumption as the case may be. Any change in the valuation is effected through adjustment vouchers. Items in the nature of Fixed Assets (Bought out Assets) are booked to the relevant Fixed Assets head of account on receipt. Direct charge items such as office printing and stationery, office consumables, medicines etc. have been charged to expense head on receipts. For such items no priced stores ledger is maintained. However, quantity ledger is to be maintained.
Issues Store issues are of the following types: Issue to internal department against work order / expense head Issues to contractor on Free of cost(FOC) / loan basis. A contractor PSL in respect of the issue types should be maintained
For store issues carry out the following checks: Correct account heads have been allotted All relevant details for proper accounting of the issue are available in the SIV The pricing of issues is done based on the weighted average rate
Returns Value the unused stocks returned to the stores as follows: in case of departmental issues, on the basis of the prevailing PSL rate in case of issue to contractor on FOC basis, at the SIV rate after considering consumption on FIFO basis in case of issue to contractor on loan basis, at the SIV rate
For returns to stores carry out the following checks: Correct account heads have been allotted All relevant details for proper accounting of the return are available in the MRN
Transfers Valuation of transfer out is similar to Issues. Sub-store In case there is any sub-store, the consumption accounting should be done only on issue of material from the sub-store to the work. The quantity records should be maintained for
30
the material transferred by the main store to the sub-store and material issued by the substore to the final work. The priced stores ledger should be updated only on final issue by sub-store. The physical stock at sub-stores should form part of the total stock at the station/ project. The store document for issue of material by the main store to the sub-store would be the same as the Material Transfer Note but no financial entry should be passed based on this document. For issue of material by the sub-store an SIV should be prepared. A separate series of SIV should be maintained for sub-store physical accounting. Departments / sections involved in the process Finance and Accounts department Stores Bill Section Stores department
Procedure: Processing of Price Stores Ledger (PSL) S. No. 1 Person responsible Obtain cut off serial number of the PSL Section stores documents (SRV/ SIV/ MRN/ MTN) from the Stores department. Ensure the following: All receipts have been valued All the relevant details necessary for proper accounting is available in all the documents Close the monthly PSL. 2 Generate Journal voucher to account PSL Section for all issues, returns and transfer of material. Forward the JV to the competent authority as per IWA. 3 Verify and authorize the JV as per Approving Monthly the procedure detailed in the manual authority as on Books section. per IWA. Generate the following exception PSL Section reports: List of items where quantity is nil Monthly Monthly Activity Frequency Monthly Remarks
31
S. No.
Activity but value exists List of items where value is nil but quantity exists List of items where quantity or value is negative Rate variance report List of SRVs that have been provisionally valued
Person responsible
Frequency
Remarks
Review the above lists and identify the causes for such variations and the cases where the valuation needs to be rectified. Prepare a JV through Stores Adjustment SRV/ SIV to rectify the PSL. Get the JV and adjustment SRV approved by the concerned official as per IWA Documents - records Document Title MIS cum SRV SIV MRN MTN Price Stores Ledger (PSL) List of SRVs Provisionally valued. List of SRVs not received from Stores Dept. List of items where quantity is nil but value exists. List of items where value is nil but quantity exists. List of items where quantity or value is negative. Rate variance report
Document Type O O O O O MIR MIR MIR MIR MIR MIR
Format Ref SB/17 SB/18 SB/19 SB/20 SB/21 SB/MIR/08 SB/MIR/09 SB/MIR/10 SB/MIR/11 SB/MIR/12 SB/MIR/13
Frequency As and when Month end Month end Month end Month end Month end Month end Month end Month end -
Distribution Stores department Stores Bill section PSL Section - PSL Section - Stores Bills section - PSL Section - Stores Bills section - PSL Section - PSL Section - PSL Section - PSL Section 32
Accounting Entries: For issue of stores 1) Relevant revenue expenditure /issues to contractor A/C To Stores issue A/C 2) For Inter Unit stock transfer - OUT Concerned unit A/C To inter divisional transfer outward For Inter Unit stock transfer In/In Transit Inter divisional transfer in/MIT To Concerned unit A/C Dr. Cr. Dr. Cr. Dr. Cr.
33
Process: Accounting for Scrap Material Process brief This process deals with accounting for scrap generated.
Process No.: 08
It should be ensured that off-cut steel of size less than 3 meters returned by contractors or user department against issue of steel by NTPC in respect of construction work or repair and maintenance job should be accounted for as steel scrap. Other scrap and waste should be accounted for as and when sold. Departments / sections involved in the process Finance and Accounts department Stores Bill Section Materials department Purchase section Stores section
Procedure : Accounting for steel scrap material generated S.No 1 2 Activity Receive an MRN for scrap material from stores Value the MRN Prepare a JV to account for the Scrap. Follow the procedure as per manual on Book Section for preparation and approval of JVs Intimate Works Bills Section / O&M Bills Section the details of MRN For necessary accounting Person Responsible PSL Section PSL Section Frequency As and when Same day Remarks
PSL Section
Same day
Accounting Entries: For return of scrap material by contractor/user department 1) Scrap inventory A/C To Stores with contractor A/C Dr. Cr.
34
Process: Accounting for Sale of Scrap Material Process brief
Process No.: 09
This process deals with accounting for sale of scrap material. It should be ensured that in case of Inter State sales, C-Form has been obtained from the party wherever applicable. Departments / sections involved in the process Finance and Accounts department Stores Bill Section Cash and Bank Section Materials department Purchase section Stores Section
Procedure: Accounting for sale of steel and other scrap materials S. No 1 2 Person Responsible Receive the Sale Order from the Store Bills Materials department Section Receive the Delivery Order from the Cash & Bank Materials department. Section Receive DD/Pay Order from the party. 3 Generate BRV & MR deposit the drafts/ pay orders in the bank. Follow the procedure as per Cash& Bank manual for preparation of MR and for depositing the drafts/pay orders in the bank Forward the partys copy of MR to Materials Department. Endorse the MR reference on the Delivery Order and forward the same to the Stores Bills Section. Receive the SIV, wherever Stores applicable, for the quantity lifted Section from stores. Cash & Bank Section Same Day Activity Frequency As and when As and when Remarks
Bill As when
and
35
S. No
Activity Prepare an invoice as per the terms and conditions of the Sale Order.
Person Responsible
Frequency Within day receipt SIV Same day a of of
Remarks
Follow the procedure described in the manual on books section to prepare a JV to account for the sale of scrap material and tax payable. Generate a BPV for deposit of sales Stores tax. Section
Bill Within the statutory period for depositing sales tax
Verify and authorize the BPV in the As per IWA system and sign on the hard copy. Prepare a challan for deposit of sales tax and forward the same to Cash and Bank Section. Receive the challan and authorized BPV alongwith supporting documents. the the the Cash & Bank As the Section when and
Follow the procedure as per Cash & Bank manual for preparation of cheque/draft for deposit of sales tax. Deposit the sales tax with the concerned authorities. Send a copy of the challan to the section concerned for their records. Receive intimation from the Stores Materials department on completion Section of the Sale Order. Reconcile the transactions. If any amount is refundable to party, follow the procedure specified in Cash & Bank Manual for processing of payment.
Bill As when
and
36
S. No 7
Person Responsible Receive a statement of the scrap sold Stores Bill during the month from the Materials Section department. Reconcile the above statement with the invoices raised and the advances received on account of scrap sales
Activity
Frequency Monthly
Remarks
In case of sale of scrap through an Stores agent, receive duly approved bill for Section agency commission. Verify the amount with reference to the agreement with the agent and the delivery orders executed. Process the invoice for payment and generate BPV.
Bill
Monthly
Verify and authorize the BPV in the As per IWA system and sign on the hard copy. Forward the BPV along with the supporting documents to Cash & Bank Section. Same day
37
Documents - Records Document Title SIV Sale Order Delivery Order Invoice Statement of Scrap sold during the month Accounting Entries: 1) For deposit of money for sale of scrap Bank A/c To Other deposit payable A/c 2) For sale of scrap:(Steel) Other deposit payable A/c To Scrap inventory A/c To sale of scrap /misc expenses / A/c Miscellaneous expenses/Income A/c Stock adjustment A/c (Other than Steel) Other deposit payable A/c To sale of scrap A/c 3) For Payment of sales tax to the Government Other deposit payable A/c To Sales tax payable A/c Sales tax payable A/c To Bank A/c 4) For Payment of commission to MSTC Brokerage & commission A/c To Income tax deducted at source payable A/c To Commission payable A/c Commission payable A/c To Bank A/c Dr. Cr Document Type O I/O I/O O O Format Ref SB/22 Frequency As & When As & When As & When As & When Monthly Distribution
Dr Cr Dr/Cr Dr/Cr. Dr/Cr. Dr Cr Dr. Cr Dr Cr Dr Cr Cr Dr Cr
38
Process: Physical verification of store items Process brief:
Process No. : 10
The process deals with the procedure to be followed for physical verification of store items. The procedure for physical verification of fixed assets has been covered in the manual on Asset Accounting.. The object of verification is to ensure that: The materials (physically) are in accordance with the description and specification shown in the stock cards/ departmental registers/ stock ledger Actual (physical) balances of such stocks agrees with the balances appearing in the books and Excesses or deficiencies, if any, noticed in such verifications are properly investigated and accounted for
For verification, the stores are classified as follows: Construction stores Consumable stores and spares Scrap materials
For the stock verification programme, the stores/ stock should be categorised in terms of value as A, B, C where category A are high value, category B less high value and category C insignificant value items of inventory While carrying out physical verification, it is to be ensured that: The stocks at all locations whether in the stores depot/ store house or with a department, are verified by the stock verifiers All the materials with the storehouses are verified at least once a year During the stock verification period regular transactions relating to receipts, issues are suspended as far as possible During the verification the stockholder or his representative is present Any large discrepancies found as a result of stock verification between the numerical stock records and the physical balance are investigated on the spot and a detailed report is submitted thereon to the F&A department Proper arrangements exist for safe custody and proper storage of materials against unnecessary deterioration from weather or any other cause Calibration of scales and measurements are carried out at periodical intervals. The PSL and the Bin cards are properly made out and completed up to a particular period/ date so that the results of the verification can be examined for making
39
suitable adjustments/ action on the date of perusal and approval of the competent authority. Stock sheets for different categories and quantities of stores are clearly marked Entries are made in the stock sheets for every item found in stock All quantities in the Field Book are clearly traceable into stock sheets Brief remarks regarding the mode of physical verification such as average weighment, counted, measurement, book balance accepted, etc. are given in the Remarks column against all items that have been verified Each Field book folio, Stock Verification and Reconciliation Statements (SVRS), Stock Discrepancy Vouchers (SDV) is signed by the stock verifier and also the stock holder Stock verification of a new item is taken up only after the verification of the previous item on hand is completed The balance quantities as per bin card/stores records are tallied with balance quantity as per PSL
While scrutinising the Stock verification and Reconciliation Sheets (SVRS) it should be seen inter-alia that: Independent explanations have been furnished against individual discrepancies and that excesses under some items have not been adjusted against shortages in dissimilar items In case of items accounted for in numbers large differences do not arise In case of discrepancies arising as a result of improper classification, the improper classification is rectified first and the shortage/excess are established thereafter Information in respect of receipts not pertaining to the company i.e. erroneously received is identified and the action taken to return them to the party concerned is indicated
Department / section involved in the process Finance and Accounts department Stores Bill section Stores department
40
Procedure : Physical verification of store items S. No. Verification 1 Prepare the programme for stock Physical verification and circulate the same to verifier the concerned officials. At least one month in advance of start of stock verification programme. The programme of stock verification should be clearly laid down in terms of the location and the items to be verified Activity Person responsible Frequency Remarks
2 3
Ensure that the arrears in the posting HOD of stock On receipt of of stock registers/ cardex are carried holding notice out. departments Obtain certificates from the stock holder certifying: All postings in respect of receipts, issues, adjustments, etc have been carried out in stock ledgers, cardex cards and stock registers Individual quantities and other particulars in respect of materials received but SRVs pending posting Issues made without SIVs i.e. either SIVs not posted/ prepared Take down the description, code Physical number and closing balance shown verifier in the stock register/Cardex card in the Field Book. Compare the same with the balances appearing in the Bin card and endorse the results on the Bin Card. In case of any differences, record in the Field Book (PartI) of Form No.1
Daily
The book balances in respect of items, which have not been verified, should not be recorded in the field book.
41
S. No.
Activity Note the abstract results of the verification in the Field Book (Part II) of Form No.1 at the end of each day.
Person responsible
Frequency
Remarks
Obtain stockholders signature on the Field Book. Extract the results of stock Physical verification from the Field Book to verifier the Stock Verification & Reconciliation Sheets (SVRS). Prepare a Stock Discrepancy Voucher (SDV) for the differences. Note the SDV no. on the hard copy of the SVRS, Field Book and Bin cards. Obtain the stockholders signature on the SVRS and SDV.
By next day
Forward the SVRS and SDV to the Stores department and F&A department. Receive the SDV from the stock Stores Bill As & When verifier. section/PSL Section Update the details in the SDV register and prepare a JV to account for the discrepancies pending investigation. Follow the procedure specified in the manual on Books section for preparation & updation of JVs.
42
Investigation & Final adjustment of discrepancies 6 Forward to HOP a proposal for constitution of a committee comprising of members from Materials, Finance and one other department. HOD C&M Dept Immediately
7 8
Investigate the discrepancies and Investigating recommend the course of action. Committee Receive approval of the competent Stores authority for write-back/ write off of section discrepancies. Update the SDV register and prepare a JV for the write-back or write off of provisions created. Follow procedure outlined in the manual on Books Section for JV approval and updation in system. Prepare a report on SDVs pending Stores Bills clearances Section Review the above necessary action report for HOF Bills Immediately on receipt of approval
Quarterly
43
Documents - Records Document Title Field Book for materials dept Field Book for other than materials departments Field Book Register Stock Verification & Reconciliation Sheets Stock Discrepancy Voucher Stock Discrepancy Register Statement of SDVs pending clearance Document Type I/O I/O R O O R MIR Format Ref SB/23A SB/23B SB/23C SB/24 SB/25 SB/26 SB/MIR/14 As and when Frequency Distribution - Stock holder - Stock holder - Stores Bill Section - Stock holder - Stores department - Stores Bill Section - Stock holder - Stores department - Stores Bill Section - HOF
Quarterly
44
Process: Accounting for Obsolete / Non / Slow moving items Process brief
Process No.
: 11
A periodical review of the movement of store items should be carried out to identify obsolete/Non/slow-moving items. Such obsolete / slow moving items should be segregated from the main stores and provision should be made for the depreciation in value. Departments / sections involved in the process Finance and Accounts department Stores Bill section Stores department
Procedure : Obsolete / slow moving items S. No. 1 Activity Identify and prepare a list of obsolete / slow moving items. Forward a copy of the list to the competent authority for approval to transfer the material to obsolete and slow moving items register and give a suitable estimation of the realisable value of such items. 2 Upon receipt of approved list Stores prepare an adjustment SIV for department segregation of the obsolete / slow moving items from the PSL to the register for Obsolete / slow moving items. Forward a copy of the approved list and adjustment SIV to the Stores Bill section 3 Make a provision for obsolescence Stores in the value of such items Generate a section JV and get the JV approved by competent authority as per IWA. Bill Immediately on receipt of approved list Immediately on receipt of approved list Person responsible Stores department Frequency Every months six Remarks
45
S. No.
Activity Follow the procedure as per manual on Books Section for JV approval and updation .
Person responsible
Frequency
Remarks
Sale of obsolete / slow moving items Follow the same procedure as Stores outlined in this manual for sale of section scrap materials in process no 10
Bill
Documents - Records Document Title Register for Obsolete / slow moving items Document Type R Format Ref SB/27 Frequency As and when Distribution - Stores department
Accounting entries; 1) For making provision for obsolescence in stores Provision for obsolescence in stores A/C To provision for obsolescence on stores A/C Dr Cr
46
Process: Cash Purchases & Payments through Imprest Process brief
Process No.: 12
This process deals with cash purchases and payments through imprest for purchases/works of petty nature.. Purchases/works are sanctioned by various departments against which a formal LOA/PO is not issued. The payments for such purchases/works are released directly by the company based on the bills submitted, or by an employee through imprest sanctioned to him, or from staff advance sanctioned for the purpose, or is reimbursed to the employee for the amount spent and sanctioned. While discharging this function, it is to be ensured that a periodic MIS is generated showing details of the expenditure incurred for an account head / sanctioning authority for that period. Departments / sections involved in the process Finance and Accounts department Departments concerned Procedure: Cash Purchases & Payments through Imprest S.No 1 Person Responsible Prepare a statement of expenditure Concerned incurred out of imprest sanctioned. employee Prepare proposal for expenditure to be incurred. estimated Activity Frequency As and when Remarks
Attach the relevant supporting documents. Get the proposal approved from the competent authority. Forward the original copy of the approved proposal to the Bills section concerned along with the supporting documents. Check that the proposal is duly approved Miscellaneous Within a day Bill section of receipt Enter the following details in the system:
47
S.No
Activity Expense account head Employee code Sanctioning authority code Payee name and address Narration of expense Amount of expenditure Amount to be adjusted against advance payment and net amount to be paid, if any Imprest amount to recouped
Person Responsible
Frequency
Remarks
3 4 5
Generate a JV (in case of adjustment of advance) and BPV/CPV for the amount payable. Attach the approved proposal and supporting documents to the JV / BPV/CPV. Follow the procedure for preparation and authorization of JV/BPC/CPV as per manuals on Books Section and Cash & Bank Section. Forward a copy of the BPV/CPV to the Cash and Bank section along with the approved proposal for release of payment. Follow the procedures as per Cash and Bank manual for release of payment Generate the following statements : Account head wise / sanctioning authority wise total expenditure incurred. Forward the statement to the concerned official for review.
Miscellaneous Bills Section
Same day
Cash and Same day Bank section Miscellaneous Quarterly Bills Section
Document - Records Document Title Statement of miscellaneous purchases/expenditure Document Type MIR Format Ref SB/MIR/15 Frequency Quarterly Distribution - O&M Bills section
48
Accounting entries 1) Payment of advance / Imprest to employee Advance to staff adjustable A/c OR Imprest A/c To Bank A/c 2) Adjustment of advance/imprest to employees Relevant expenditure head A/c To Advance to staff adjustable A/c (OR) To Imprest A/c 3) Direct payments/ reimbursements Relevant expenditure A/c To Bank A/c Dr. Cr. Dr. CR. Cr. Dr. Dr. Cr.
49
INDEX OF FORMATS FORMAT Statement of tender documents sold Summary statement of sale of tender documents Schedule of sales tax and other duties payable on sale of tender documents Bid opening statement EMD Register Payment Release Authorisation (PRA) Bills Register Advances Sub- Ledger Status of a Vendor across all Account Codes Register for issue of sales tax forms Consolidated statement of payment released for issue of forms for concessional sales tax Statement of Tax payable LSC Register LC Register LC payment Register Advice note for establishment of FLC Conditions of FLC Break-up of FLC value MIS cum SRV SIV MRN MTN Priced stores ledger Statement of Scrap sold during the month Field Book for Stock verification-Materials Department Field Book Register- Other than Materials Department Field Book Register Stock Verification & Reconciliation Sheets Stock Discrepancy Voucher Stock Discrepancy Register Register for Obsolete / slow moving items List of new parties who have been unsuccessful in tender List of parties whose accounts have not been in operation for three years or more List of EMDs outstanding Report on unadjusted advances PRA received but pending for payment LSC s pending with bank for payment Statement of Payments released against FLC List of SRVs provisionally valued FORMAT NO SB/01 SB/02 SB/03 SB/04 SB/05 SB/06 SB/07 SB/08 SB/09 SB/10 SB/11 SB/12 SB/13 SB/14 SB/15 SB/16A SB/16B SB/16C SB/17 SB/18 SB/19 SB/20 SB/21 SB/22 SB/23A SB/23B SB/23C SB/24 SB/25 SB/26 SB/27 SB/MIR/01 SB/MIR/02 SB/MIR/03 SB/MIR/04 SB/MIR/05 SB/MIR/06 SB/MIR/07 SB/MIR/08
50
FORMAT List of SRVs not received from Stores Department List of items where quantity is nil but value exists List of items where value is nil but quantity exists List of items where quantity or value is negative Rate variance report Statement of SDVs pending clearance Statement of Miscellaneous purchases/expenditure
FORMAT NO SB/MIR/09 SB/MIR/10 SB/MIR/11 SB/MIR/12 SB/MIR/13 SB/MIR/14 SB/MIR/15
51
SB/01 STATEMENT OF TENDER DOCUMENTS SOLD Tender description --------------Tender number ----------------Rate per tender document -------------Sl. No. Party Draft/Pay Order Name Code Number Date
Tax Element-----------------No. MR Date

Tax (Rs) Remarks
Amount (Rs)
Total Prepared by --------------------Authorised by ------------------Authorised by..
Note: The statement is to be generated by Purchase department. The statement is to be authorized by Purchase department & Cash & Bank section.
52
SB/02 SUMMARY STATEMENT OF SALE OF TENDER DOCUMENTS For the month ended ------------------S. No Tender document No. No of documents sold Amount (Rs) Basic Tax Total amount (Rs) Remarks
Total No of tender documents sold : Prepared By -------------------------------------------Authorised By -------
53
SB/03 SCHEDULE OF SALES TAX AND OTHER DUTIES PAYABLE ON SALE OF TENDER DOCUMENTS
FOR THE MONTH ENDED ----------------------------------
S. No
Tender No. No
BRV Date
Account code
Amount (Rs) Sales Tax Other Duties
Total (Rs)
Remarks
Prepared By----------------
Authorised By -------------------
54
SB/04 BID OPENING STATEMENT
As on-------------Tender description --------------Tender number ----------------Date of bid opening ----------------
Bid sl. no.
Vendor Name Code Form No.
EMD received
Signature
Remarks
Date
Drawn On
Amount (Rs)
Prepared by --------------------------Vetted by.
Approved by ----------------------
Note: The statement should be prepared by Purchase department and vetted by the Finance member present at the bid opening. A copy of the statement acknowledged by the Cash and Bank section should be retained in the bid opening file.
55
SB/05
EMD REGISTER As on -------------Instrument BRV Voucher (BPV/ JV) No Date Remarks
Sl. No
Tend er No.
Vendor
Name
Code
Type
Control No.
Ref. No.
Date
Amount (Rs)
No
Date
Amount (Rs)
Refund/ Transfer to Security deposit/ Forfeited
56
SB/06
PAYMENT RELEASE AUTHORISATION (PRA)
Department/ Section ---------------No --------------------Date ---------------------PO No.----------------------Date------------Vendor Name-------------------Code-------------Certified for release of Rs/FC.-------------------- as per the details provided below: Invoice Date Amount (Rs/FC) Gross Deduction Amount Certified for release (Rs/FC) Net Remarks
No
Total amount as per PO--------------------------Amount released till date-------------------------Amount Certified for release---------------------
Encl: (supporting documents attached) 1.-----------------2.----------------3.----------------Prepared By ----------------------------
Authorised By --------------------
Note : The PRA should be prepared and approved by the Purchase department and should be authorised by the competent authority. In case of any pre-condition to release of advance (say receipt of BG) then the same should be indicated in the remarks column.
57
SB/07
BILLS REGISTER Sl. Date PRA PO

No. Date Name Code No. Date Amount (Rs/FC) No Date
No
Vendor
Invoice
BPV
Amount (Rs/FC)
Remarks
No.
Date
58
SB/08 ADVANCES SUB- LEDGER For the period -----------
Account Code ---------------Contractor Name ------------Contractor Code -------------Type Voucher PO Particulars Date Opening Balance Dr Amount (Rs) Cr No
Remarks
No
Date
Closing balance
Note: The format would be applicable for all sub-ledgers advances/ creditors Additional information (say C Form No in case of creditors) should be provided in the Remarks Column or in a separate column
59
SB/09
STATUS OF A VENDOR ACROSS ALL ACCOUNT CODES AS ON --------------------------
Vendor Name Vendor Code Account Code Description Order Reference Balance (Rs) Debit Credit
Total
60
SB/10 REGISTER FOR ISSUE OF SALES TAX FORMS PO Date Issued On (date) No Amount (Rs) Vendor Name Code Sales Tax Amount Sales tax Form Remarks
S. No
No
Prepared By -----------------------------------
Authorised By ----------------
61
SB/11 CONSOLIDATED STATEMENT OF PAYMENT RELEASED FOR ISSUE OF FORMS FOR CONCESSIONAL SALES TAX Vendor Sales Tax Amount Issued On (Date) No Bill Number Bill Date Sales Tax Form Remarks
S. No
BPV
No
Date
Name
Code
Amount (Rs)
Prepared By ---------------------------------
Authorised By -------------------
62
SB/12 STATEMENT OF TAX PAYABLE Vendor Name Code Issued On (date) No Amount (Rs) Sales Tax Amount Bill Number Bill Date Sales tax Form Remarks
S. No
BPV
No
Date
Prepared By ---------------------------------
Authorised By -------------------
63
SB/13 LSC REGISTER Vendor Name No Date No Date No. Date Code Bank Name LSC Invoice LR/RR no. Amount (Rs) Remarks
S. No
PO
No
Date
64
SB/14
LC REGISTER
Bank: LC Limt sanctioned----------LC Limit available----------S. LC Beneficiary No No. Date Name Code Contract No Shipment Negotiati ons Rs/FC Re Eqvlt. Rs/FC Re Eqvlt. Validity Amount Negotiated Amount Rs/FC
Balance LC Value Re Eqvlt.
Remarks
Note: LC Register is to be maintained Bank wise for all LCs
65
SB/15
LC PAYMENTS REGISTER
LC No & date : LC Validity : For Shipment/ Negotiation Validity Extension details: Invoice No Date Amount FC/Rs Re eqvlt. Balance LC Value (FC/Rs) Remarks
Contract/ PO No & Date: Name of Beneficiary :
S. No
Date of Negotiation
Opening balance
66
SB/16A Reference No : -----------Date : -------------
ADVICE NOTE FOR ESTABLISHMENT OF FOREIGN LETTER OF CREDIT
Sl. No
Particulars
Details
1 2 3 4 5
7 8
Allowed/ Disallowed Disallowed/ Allowed
10
Originating Department Contract Co-ordinator Description of package Contract/ P.O. No and Date Name and address of the Party in whose favour the LC is to be established Name and address of the Advicing Banker (in case specified by the Supplier) Method of advising LC (letter/ fax. Etc.) Amount for which LC is to be established/ enhanced/ reduced Indicate the following parameters as required in the LC: a) Port/ place of Shipment b) Port/ place of Discharge c) Delivery terms as per contract d) Validity of LC required (date) - For shipment - For negotiation e) Partial shipment f) Transhipment g) Country of origin to be mentioned in the LC In case of CIF Contracts, indicate the following
67
Sl. No Details
Particulars
11 Beneficiary/ NTPC Beneficiary/ NTPC
12
13 14
15
16
17
18
a) Percentage of insurance cover to be specified in the LC b) Risks to be covered in the Insurance Policy Indicate clause reference in the LOA/ contract governing the LC terms and conditions Bank charges relating to LC opening and negotiation in India to be borne by Bank charges outside India to be borne by Additional/special condition to be incorporated in the LC (if any) Particulars of CPG/ BG No & date - Amount - Issuing Bank - Valid till Particulars of Import License - License No - Date of issue - Amount - Valid till If items are to be imported under Open General License (OGL) the following are to be completed : a) Foreign Exchange sanction No (if applicable) b) Indicate the OGL appendix No of the Import policy under which the above import of goods are covered c) Confirm that the items being imported are not included in the banned/ restricted/ cannalised list in the policy Expected date of issue of MDCC
68
Sl. No Details
Particulars
19
20
Expected date of shipment for which this LC is being established Quantity of Equipment covered in LC
Unit price
Payment Terms
69
SB/16 B
CONDITIONS OF FOREIGN LETTER OF CREDIT Purchase Order No & Date
Sl. No
A
Particulars
Details
General Terms and Conditions 1 2 3 4 Name and address of beneficiary Name and address of advising bank Method of advising LC Validity details (in the country of beneficiary)
Airmail Full text Telex Expiry date --------- quarters from the date of establishment Valid for shipment upto -------Valid for negotiation upto ---------
LC coverage - Equipment portion - Spares portion Merchandise details - Equipment - Materials Shipment Terms & Conditions
--------% FOB+ ------% Insurance +----% Freight ------% CIF Package ----Project ------
1 2 3 4 5
C
Delivery Terms Port of shipment Port of discharge Partial shipment Transshipment
FOB/CIF ----Allowed/ Prohibited Allowed/ Prohibited
Documentary conditions (for releasing despatch payment) 1 2 ( whichever is applicable) ( ) Signed commercial invoices in sixtuplicate certifying that the equipment/ spares are in accordance with Openers letter of award No. / Purchase Order No. ( ) Airway bills duly signed, stamped and marked Freight prepaid/ to pay made 70
in favour of purchaser (original + 2 copies)

OR
( 3 4 5 6 7 8 ( (
) Full set of clean on board Bill of Lading to order blank endorsed marked Freight prepaid/ to pay made in favour of purchaser
9 10
11 12 D 1 2 3 4 5
) Detailed packing List 3 copies ) Original Material Despatch Clearance Certificate issued by NTPC (or waiver thereof) ( ) Factory/ Manufacturers test/ inspection certificate 3 copies ( ) Insurance Premium receipt 3 copies ( ) Freight paid memo 3 copies ( ) Insurance policy or certificates in duplicate Covering marine, war-risks, strikes, riot and civil commotion (SRCC), malicious damage, theft, pilferage and non-delivery (TPND), Institute cargo clauses (all risks), damage by rain, sea, fresh water, mud, hooks, and/or contract with other cargo irrespective of percentage of WPA/ FPA from shippers warehouse to Openers warehouse plus 60 days. The policy shall not be for less than ----------------- of CIF value of equipment/ spares shipped and shall be in the same currency as the Letter of Credit. All claims payable in India ( ) Sellers certificate confirming that the advance documents as required under clause ----- of the Letter of award/ Purchase order has been sent to the purchaser along with the consignment ( ) Sellers certificate confirming that cable has been sent to the purchaser and the named insurance company within 24 hours of delivering the goods into the charge of the air/ sea carrier giving full particulars for the purpose of insurance as per clause ------- of the contract/ purchase order 1 copy ( ) Warranty Certificate as per clause ----- of Contract/ Purchase Order - 1 copy ( ) Certificate of compliance as per clause ------of Contract/ PO - 1 copy Additional conditions (as provided in the PO) ( ) All bank charges outside India shall be to the account of the beneficiary ( ) Shipping documents must be prepared for negotiation within ------ days of shipment ( ) Insurance and freight shall be payable at actuals on production of documentary evidence subject to the ceiling indicated in the LC break-up given in Annexure III ( ) The negotiating bank shall send telex intimation of date and amount of negotiation to the opening bank two working days before negotiation ( ) This LC is covered under OGIL ---- of present export and import policy
71
SB/16C
BREAK-UP OF LC VALUE
Contract/ Purchase Order No & Date : S. No Item Description (as per contract/ PO) Quantity Unit FOB price Total FOB
Total FOB price Add: Freight & Insurance Total CIF price Less Indian Agents commission payable, if any Amount payable under LC
72
SB/17
MATERIAL INWARD SLIP CUM STORES RECEIPT VOUCHER (SRV) SRV No Vendor Name and code SRV Date PO No and date Material Type Invoice / Challan No and date Material Description Transaction code Indentor Code Unloading Report No and date LR/RR No and date Carrier Name & No Sl. Material Description UOM Quantity Rate No Code Invoiced Received Rejected Stock (Rs) Value (Rs)
Total Inspecting Officer --------------------------------------
Received By -----------------------------------
73
SB/18 STORES REQUISITION CUM ISSUE VOUCHER (SIV) Cost Centre/ Contractor WO Number/ Details Indenting Deptt & code Description UOM Quantity Requisit Issued ioned Rate (Rs) Value (Rs)
SIV No SIV Date Transaction code Requisition Date Account Head Sl. Material No Code
Total Indentor -----------------------------Received By -----------------------------
Store Keeper ---------------------------Approved by ----------------------
74
SB/19 MATERIAL RETURN NOTE (MRN) Indentor Indentors MRN No Return Date WO Number Cost Centre Contractor Description UOM Quantity Returned Accepted Account Head Rate (Rs) Value (Rs)
MRN No MRN Date SIV No SIV Date Transaction code Material Code
Sl. No
Total Inspection Remarks : Inspecting Officer ---------------------------------------Officer (Authorising Return) -----------------------------
Store Keeper -------------------------
75
SB/20 MATERIAL TRANSFER NOTE (MTN) Project Code Carrier Name LR/RR No LR/RR Date
MTN No MTN Date Reference No Reference Date Transfer Location Material Type Material Code Description UOM Quantity Indente Transferre d d Account Code Rate (Rs)
Sl. No
Value (Rs)
Total Inspection Remarks :
Store Keeper ----------------------------
Material Engineer (Transfer) -----------------------------
Material Engineer (Receipt) -----------------------------
76
77
SB/21 PRICED STORES LEDGER Receipt Rate (Rs) Value (Rs) Quantity Rate (Rs) Value (Rs) Issue Balance Quantity Value(Rs)
FOR THE PERIOD ---------------------------UOM Document Quantity Description
Type & Date No Material Code
Opening balance
Total
78
S. No
SB/22 STATEMENT OF SCRAP SOLD FOR THE MONTH ENDED ------------------------Material Scrap Sale Remarks Code Description UOM Quantity Rate Amount Party
Total
79
No. Part I Stores Deptt Date Commenced Code No Sl.
Section Date Completed Class
FIELD BOOK FOR STOCK VERIFICATION (Materials Deptt) No. Part II Particulars No/ Weight/ Remarks Measurement Total on hand (as contained in Part I)
Location of stores Description of Mode of physical item verification
Quantity (Unit)
Total
Add Is ledger Deduct ledger
Balance Depot B
Differen (Depot L
Stock V Holder Sr. Engi Note: In case a method of sampling is adopted for verification the sample method should be spelt out clearly
80
SB/23B Form No 1A
FIELD BOOK FOR STOCK VERIFICATION (Other than Materials Deptt) Sl. Main Group Code No Description No. Part II Unit
No. Part I Stores Deptt
Section
Date Commenced Location of stores Mode of physical verification Stock Holder Quantity (Unit) Total Bal. as per physical verification Initials of: Stock verifier Stock Holder
Date Completed
Code No
Class
Sl.
Description of item
Stock register
Difference
SDV
Stock Verifier
Sr. Engineer of Stock Holder
81
SB/23C FIELD BOOK REGISTER
Sl. No
Field Book No
Matls Deptt Others
Date issue
of Name of Initial of Date of Remarks stock stock return of verifier verifier book
82
83
STOCK VERIFICATION AND RECONCILIATION SHEETS No Date of verification: S. No Code No (1) UOM (2) Description (3) Ref to Field Book Form No (4) Quantity Verified (5) Date
Card Balance (6)
Stock Holder -----------------------------Stores Officer -------------
Stock Verifier --------------------------
Contd
84
SB/24
STOCK VERIFICATION AND RECONCILIATION SHEETS (Contd) No Date of verification: Accounts Ledger (8) Rate (Rs) (9) Value (Rs) (10) Reasons for shortage (11) Adjusted/ Proposed to be adjusted (12) Remarks (Ref. To SDV indicated) (13) Date
Stock Holder -----------------------------Stores Officer -------------
Stock Verifier -----------------------
85
SB/25 STOCK DISCREPANCY VOUCHER No S. No SVS No UOM

Material
Date
Quantity
Value (Rs)
Item
Code
Excess
Shortage
86
SB/26
STOCK DISCREPANCY REGISTER JV No & Date Qt y Debit Credit Valu e (Rs) Rema rks Valu Qty e (Rs) Lo Group Quantity cat of ion stores/ U Ex Name O ces of M s materi al Prov ision al JV refe renc e Date of App rova l of Com p auth Valu Stoc Date of sub of SDV to e k Sh (Rs) Hol SH Stores der ort Bills (SH) ag Sectio e n
Sl . n o
No SVS & No Da te of SD V
Stock Verifi er
87
SB/27 REGISTER FOR OBSOLETE / SLOW MOVING ITEMS Item Description: Code : Document UOM Receipt Issue Balance Type Number Date Quantity Value Quantity Value Quantity Value (Rs) (Rs) (Rs)
88
SB/MIR/01 LIST OF NEW PARTIES WHO HAVE BEEN UNSUCCESSFUL IN TENDER For the period ------------------S. No TENDER No Date Party Name Code Remarks
89
SB/MIR/02
LIST OF PARTIES WHOSE ACCOUNTS HAVE NOT BEEN IN OPERATION FOR THREE YEARS OR MORE As on --------------Party Name Code Account Code P.O. reference No. Date Closing Balance (Rs) Date when account last operated Remarks
Prepared by ---------------------
Authorised by ---------------
Note: The balances can be under more than one account for a party, therefore closing balance should be indicated account head-wise The list should be prepared by the F&A Department
90
SB/MIR/03
LIST OF EMDs OUTSTANDING As on-------------Vendor Date Receipt EMD Code Type No. Date Amount (Rs) of of Validity period Instrument Remarks (indicate the reasons for delays in release/ adjustment)
Sl. No Description Name
EMD control No.
Tender
No
Total Prepared by ---------------------------
91
SB/MIR/04 REPORT ON UNADJUSTED ADVANCES As on ------------------Voucher No. Date Remarks
Account Code -------------------Vendor PO No Date Amount (Rs) Dr Cr Age analysis (no of months) (Rs) 0-3 3-6 6-9 9-12 > 12
Name Vendor A
Code
Sub Total Vendor B
Sub Total
Total
Prepared By ----------------------------Authorised By -------------------Note: This report is to be generated for all sub-ledgers maintained for a vendor.
93
SB/MIR/05
PRAs RECEIVED BUT PENDING FOR PAYMENT As on -----------------------Department Received On Vendor
PRA
No
Date
Name
Code
Amount (Rs/FC)
Remarks
TOTAL Authorised By -------------------------
Prepared By --------------------------------------
Note:
The statement is to be prepared by the F&A department The reasons for non-processing of the PRA should be recorded in the Remarks column.
95
SB/MIR/06
S No
Reasons
Bank
No
LSCS PENDING WITH THE BANK FOR PAYMENT As on --------------LSC Vendor PO Date Amount(Rs) Name Code No Date
Prepared By ----------------------------
Authorised By ----------------------------
96
SB/MIR/07 STATEMENT OF PAYMENTS RELEASED AGAINST FLC
Station / Project: Value (FCY) FCY INR Date of Negotiation No Date Amount Invoice Balance Value (FCY) LC Validity Period
S. No
No
LC Date
Prepared By ---------------------------------------
Authorised By -----------
97
SB/MIR/08 LIST OF SRVs PROVISIONALLY VALUED As on -----------------------No SRV Date Vendor Name Code PO No Date Value (Rs) Remarks
Total Prepared By --------------------------------------Authorised By ----------------------
98
SB/MIR/09
LIST OF SRVS NOT RECEIVED FROM STORES DEPTT. As on -----------------------SRV No Date Vendor Name PO Code No Date Value (Rs) Remarks
Total Prepared By ---------------------------------------------------Authorised By ---------
99
SB/MIR/10 LIST OF ITEMS WHERE QUANTITY IS NIL BUT VALUE EXISTS As on -------------------------S. No Material Value as per PSL Remarks (Rs) Code Description
Total Prepared By ----------------------------------------Authorised By ------------------------
Note: The reasons for nil quantity and the action to be taken i.e. Adjustment SRV/SIV should be indicated in the Remarks column
100
SB/MIR/11 LIST OF ITEMS WHERE VALUE IS NIL BUT QUANTITY EXISTS As on -------------------------S. No Material UOM Quantity as per Remarks PSL Code Description
Note: The reasons for nil value and the action to be taken i.e. Adjustment SRV/SIV should be indicated in the Remarks column
101
SB/MIR/12 LIST OF ITEMS WHERE QUANTITY/VALUE IS NEGATIVEAs on -------------------------S. No Code Material Description UOM Quantity Value as per PSL (Rs) Remarks
Note: The reasons for the negative quantity/ value and the action to be taken i.e. Adjustment SRV/SIV should be indicated in the Remarks column
102
SBMIR/13 S. No Code (1) (2) RATE VARAIANCE REPORT For the month ended -------------------------Material Issue Rate Closing rate of current of previous Description month month (Rs) (Rs) (3) (4) (5) Percentage increase of (4) over (5) (6) Remarks
(7)
Note: The reasons for the increase should be indicated in the Remarks column
103
SB/MIR/14 STATEMENT OF SDVS PENDING CLEARANCE UOM Material Quantity Value (Rs) Remarks Date Item Code Excess Shortage
S. No
SDV
No
105
SB/MIR/15 STATEMENT OF MISCELLANEOUS PURCHASES/EXPENDITURE TOTAL AMOUNT SPENT THROUGH NOTE SHEETS Account Head ----------Account Code -----------------No Document Ref. Date Approved By Particulars of expense Amount (Rs) Remarks
Total
106

National Thermal Power Corporation Limited: Manual On Procurement and Stores Accounting November 2002

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National Thermal Power Corporation Limited: Manual On Procurement and Stores Accounting November 2002

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NATIONAL THERMAL POWER CORPORATION LIMITED

MANUAL ON PROCUREMENT AND STORES ACCOUNTING November 2002

A. F. FERGUSON & CO. NEW DELHI

Procurement and Stores Accounting

Procurement and Stores Accounting

Process : Allotment of Party code Process brief :

Procurement and Stores Accounting

Procurement and Stores Accounting

Process: Sale of tender documents Process brief

As and when Immediately

Procurement and Stores Accounting

Purchase Department Cash & Bank Section

As and when Weekly

By the scheduled date

Procurement and Stores Accounting

Summary statement of sale of tender documents

Procurement and Stores Accounting

Procurement and Stores Accounting

Procurement and Stores Accounting

Procedure : Adjustment/ Refund of EMD ` S.No Activity 1

Bill By next day

Procurement and Stores Accounting

Procurement and Stores Accounting

Procurement and Stores Accounting

Process: Vetting of Purchase Orders and amendments Process brief

Procurement and Stores Accounting

Procurement and Stores Accounting

Process: Payment against purchases Process brief

Procurement and Stores Accounting

Same day Same day

Procurement and Stores Accounting

Stores Bill Section

Procurement and Stores Accounting

Stores Bill Section

Stores Bill Section

Procurement and Stores Accounting

Same day Same day Same day Weekly

Cash and Bank section Stores section Bill

Procurement and Stores Accounting

Same day Same day Same day

Procurement and Stores Accounting

Person responsible section

Procurement and Stores Accounting

Bill As & when

Bill Same day

Within a day of receipt Same day As and when

F&A Section, T&CC office

By the next day

Procurement and Stores Accounting

F&A Section, T&CC office F&A Section, T&CC office

Procurement and Stores Accounting

F&A sectionT&CC Office

F&A- T&CC Office

Stores Bill section-units

Procurement and Stores Accounting

Cash & Bank section- units Stores Section Bill

Procurement and Stores Accounting

Document Type I/O

Frequency Within day receipt Bills a of of -

Distribution Cash and bank section Stores Bill section

vendors account Journal

SB/09 Within day receipt Bills As when