NATIONAL THERMAL POWER CORPORATION LIMITED

MANUAL ON SALES ACCOUNTING November 2002

A.F.FERGUSON & CO. NEW DELHI

Manual on Sales Accounting

CONTENTS Process No 01 02 03 04 05 06 07 08 Process Introduction Billing and accounting for sale of energy Realization from beneficiaries and allocation of realization to the stations Raising of credit notes for rebates Intimation for surcharge on overdue payments Reconciliation of dues with beneficiaries Reconciliation of ESO with REBs Accounting for sundry debtors - Year-end provision for bad and doubtful debts and tariff adjustments Payment of Statutory levies on generation/ sale of electricity LIST OF FORMATS Format Consolidated Invoice for Sales Energy Bill Water Cess Bill Revision Bill Incentive Bill Statement of Allocation of Sales to Stations Debtors Ledger-Beneficiary wise Debtors Ledger-Station wise Statement of Realisations form beneficiaries Credit notes for Rebates Intimation of Surcharge on overdue payments MIR FORMATS Age-analysis of debtors Reconciliation statement with Beneficiaries SEB-wise report on Sundry Debtors Reconciliation Statement of ESO billed & ESO as per JMR Legends used in the manual: I Input O Output R Report/Register MIR Management Information Report Format No. SA/01 SA/02 SA/03 SA/04 SA/05 SA/06 SA/07 SA/08 SA/09 SA/10 SA/11 SA/MIR/01 SA/MIR/02 SA/MIR/03 SA/MIR/04 Page No 4 13 19 21 23 25 27 28

Manual on Sales Accounting

INTRODUCTION This manual outlines the procedure to be followed in respect of sales accounting. The manual covers the processes for 1. Billing and accounting of sale of energy 2. Realization of dues from beneficiaries 3. Allocation of realizations to stations 4. Raising of credit notes for rebates 5. Intimation of surcharge on late/non-payment of dues 6. Reconciliation of dues with beneficiaries 7. Reconciliation of ESO with REBs 8. Accounting of sundry debtors 9. Making provision for bad and doubtful debts 10. Payment of statutory levies on generation/sale of energy

The responsibility of billing for sale of energy and realization from beneficiaries rests with RHQs. The RHQs has also to perform the other activities such as reconciling the outstanding dues with the beneficiaries, review the debtors sub-ledgers and making year end provisions, if any. The important guidelines for sales accounting are as follows:

GUIDELINES
Recognition of Income Sale of energy is to be accounted for on accrual basis at the applicable tariff rates (as per CERC/ PPA/GOI/provisionally decided by NTPC). In respect of power stations where tariffs are yet to be notified the sales should be accounted for on provisional rates and the necessary adjustments to be made after the tariff is notified. The incentives/ disincentives should be accounted for on accrual basis based on the applicable tariff notifications. In case tariff has not been notified the accounting should be done on provisional rates. Surcharge on late/ non-payment of dues by sundry debtors for sale of energy is not treated as accrued due to uncertainty of its realization and is therefore accounted for on receipt.

Other guidelines: All the components of revenue from sale of electricity such as Fixed charges, energy charges, fuel price adjustment etc., should be reflected at the gross value (i.e. without adjusting for rebates, if any) under the respective account heads. Rebates allowed to customers should be reflected separately under Finance charges.

Manual on Sales Accounting

Revenue from sale of electricity prior to commercial declaration of the unit (precommissioning income) should be set -off against the pre-commissioning expenses. Own consumption of power for construction works at station, township power consumption, etc should be valued at the variable cost of generation and should be shown in sales with a debit to the respective expense heads under power charges. Electricity duty paid on township consumption should be included in the cost of power charges The amount debited to stations by CC on account of Income-tax should be shown as Provision for income-tax in the books of the station. The credit for income tax recoverable from beneficiaries passed on to stations by the billing units i.e. Regional Head Quarters (RHQ) should be shown as Income tax recoverable and as a deduction from Provision for income-tax in the P&L account. At the year-end the debtors outstanding should be reviewed and a provision should be created for bad and doubtful debts (as considered necessary)

Manual on Sales Accounting

Process: Billing and Accounting for Sale of Energy

Process No : 01

The process lays down the procedure to be followed for billing and accounting for sale of energy on the basis of the applicable tariff and Energy Sent Out (ESO) as per the Global Energy Account ( GEA) issued by the Regional Electricity Boards (REB) or as per the Joint Meter Reading (JMR) as the case may be. While discharging this function it is to be ensured by the billing centre that: A consolidated invoice is raised on a monthly basis for each beneficiary for the energy sent out in the immediately preceding month as well as for supplementary bills (on account of tariff amendment, revision in global A/c. revision of bill of earlier months, revision in FPA rates of earlier months, etc. or due to any other reasons) of the previous periods. Separate calculation sheets for each type of revision is prepared and enclosed as annexures to the consolidated invoice. Departments involved in the process Finance and Accounts Department (finance- commercial) RHQ Commercial Department, RHQ F&A Department (finance- commercial) Station

Procedure: Billing for Sale of energy S. No. Activity Sale of energy 1 Send the following to RHQ- F&A Dept: Global account / JMR for all the RHQ stations for the preceding month Commercial including inter regional transfer of power Price of fuels as per PSL and F&A Gross Calorific Value (GCV) of Station O&M fuel duly certified. station In case of gas stations where multi-fuel is used , the total cost of fuel and the total calories from fuel F&A Station O&M station DeptDeptDeptDeptMonthly By 2nd of the month Person responsible Frequency/ Timing Remarks

Manual on Sales Accounting

S. No. -

Activity Certificate of open cycle generation from the REB (in case of gas stations) Details of payment of levies such as electricity duty/water cess/water charges, etc. Details of any other charges like transportation charges for gas (wherever to be billed separately)

Person responsible Commercial Dept-RHQ F&A Station F&A Station DeptDept-

Frequency/ Timing

Remarks

Receive all the (above) inputs and F&A prepare the calculation sheet for the Departmentcurrent energy bill including the RHQ pooled rate billing for inter regional transfer of power. Supplementary bill/Debit Note

Immediately after the receipt of the data

Send the following to the Regional HQ F&A Dept. Changes in tariff, if any, Corporate Commercial Department

As and when

Previous period amendments in Commercial Department Global accounts RHQ

Change in already billed FPA F&A Dept. Stations rate due to any reason Certification of open cycle Commercial operation for previous months, Department if not already billed (to prepare RHQ MOPA calculation sheet) Certificate of loss of generation Commercial due to backing down upto the Department latest available month for RHQ

Manual on Sales Accounting

S. No.

Activity incentive billing

Person responsible

Frequency/ Timing

Remarks

Details of advance income tax Corporate payments or any adjustments of Commercial Income Tax on final assessment Water Cess to be billed to F&A Dept. Stations Beneficiaries

Amount of Minimum Guarantee F&A Dept. Off-take (MGO) charges, if any Station Any other changes in previously billed ratesquantities, amount, etc. due to any reason. Receive all the above inputs from the stations concerned and prepare the calculation sheets for each of the supplementary bills to be raised on beneficiaries. Dept. concerned F&A Department, RHQ By the 2nd of the following month

Prepare a consolidated invoice F&A ( current and supplementary) Department, RHQ Obtain the approval of invoices F&A from the competent authority and Department, forward the approved invoices to RHQ the Beneficiaries with copies to : Corporate Commercial Department Regional Commercial Department Respective stations Commercial coordinators

Immediately after receipt of data Immediately

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Person responsible Generate a Journal Voucher to F&A account for the invoices raised and Department, for transferring sales to stations RHQ concerned. Authorize the JV and follow the process as per Books manual for updating JV and for raising IUA (for sales) on stations. Check the IUA (for sales) received F&A from the RHQ and generate a JV to Department Station account for the sale of energy. Authorize the JV and follow the process as per Books manual for updating the JV Receive letters from Beneficiaries F&A regarding verification and Department, acceptance of the bills raised on RHQ them and enter the details of the unverified/disputed amounts and the reasons thereof in the system.

Activity

Frequency/ Timing Immediately

Remarks

As and when

As and when

The system should maintain the beneficiarieswise and bill wise details

Document - Records Document Title Global account from REB Certificate of loss of generation due to backing down Statement of changes in tariff Previous period amendments in Global account Statement of MGO charges Details of advance Document Type I I I I I I Format Ref Frequency/ Timing Monthly As and when As and when As and when Monthly As and Distribution F&A Department, RHQ Commercial Department, RHQ F&A Department, RHQ Commercial Department, RHQ F&A Department, RHQ Commercial Department, RHQ F&A Department, RHQ Commercial Department, RHQ F&A Department, RHQ Commercial Department, RHQ F&A Department, RHQ

Manual on Sales Accounting

Document Title income tax payments or any adjustments of Income tax on final assessment MOPA certification for previous months Consolidated for sales Invoice

Document Type

Format Ref

Frequency/ Timing when -

Distribution Commercial Department, RHQ F&A Department, RHQ Commercial Department, RHQ Corporate Commercial Department Regional Commercial Department Respective stations Commercial coordinators Corporate Commercial Department Regional Commercial Department Respective stations Commercial coordinators Corporate Commercial Department Regional Commercial Department Respective stations Commercial coordinators Corporate Commercial Department Regional Commercial Department Respective stations Commercial coordinators Corporate Commercial Department Regional Commercial Department Respective stations Commercial coordinators

I O

SA/01

As and when Monthly

Energy Bill calculation sheet

SA/02

Monthly

Water Cess calculation sheet

Bill

SA/03

Monthly

Revision calculation sheet

Bill

SA/04

Monthly

Incentive calculation sheet

Bill

SA/05

Monthly

Manual on Sales Accounting

Document Title Statement of Allocation of sales to stations Accounting Entries For sale of energy

Document Type O

Format Ref SA/06

Frequency/ Distribution Timing Monthly Stations

In RHQ Books ( for current bill) Sundry Debtors for sale of energy Inter Unit CC Fund A/c (sales) Station In Station Books Inter Unit CC Fund A/c (sales) RHQ Sale of energy - Fixed charges Sale of energy - variable charges Sale of energy - FPA Recovery Sale of energy - ED and Cess recovery Sale of energy - UI charges Sale of energy-Incentive / Disincentive Sale of energy other charges For adjustments to sale ( Supplementary bills) In RHQ Books Sundry Debtors for sale of energy Inter Unit CC Fund A/c (sales) Station In Station Books Inter Unit CC Fund A/c (sales) Station Sale of energy - Energy charges Sale of energy - FPA Recovery Sale of energy - ED and Cess recovery Sale of energy - UI charges Sale of energy-Incentive / Disincentive Sale of energy other charges Dr/Cr Cr/Dr Cr/Dr Cr/Dr Cr/Dr Cr/Dr Cr/Dr Dr/Cr Cr/Dr Dr Cr Cr Cr Cr Cr/Dr Cr/Dr Cr/Dr Dr Cr

Manual on Sales Accounting

For inter-region sale of power In Importing Regions books Debtors for sale of energy Inter Unit CC Fund A/c Exporting Region In Exporting Regions books Inter unit CC Fund A/c Importing region Inter Unit CC Fund A/c Station Income-tax Reimbursable from Beneficiaries Payments made by CC transferred to stations In CC books Inter Unit CC A/c Stations Provision for Income-tax In Station books Provision for Income-tax Inter Unit CC A/c CC Billing by RHQ In RHQ Books Sundry Debtors A/c To Inter Unit Stations In Station Books Inter Unit RHQ A/c Income tax recoverable from Beneficiaries/ s (For transfer of sundry debtors at year-end) In RHQ Books Inter Unit CC Fund A/c (sales) Station Sundry Debtors for sale of energy Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr

Manual on Sales Accounting

In Station Books Sundry Debtors for sale of energy Inter Unit CC Fund A/c (sales) RHQ Dr Cr

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Process: Realization from Electricity Boards and allocation of realization to the stations Process brief

Process No: 02

This process lays down the procedure to be followed for accounting of realizations from beneficiaries and allocation of the same to the stations. The responsibility of realization of dues from the beneficiaries lies with the Commercial Coordinators. The realizations are generally in the following forms: Through negotiation of LCs By way of cheques/ drafts Central Appropriations Other than cash

While discharging this function the commercial coordinators should ensure that: The cheques/drafts collected are promptly deposited in the local collection bank accounts maintained at the various billing centres The collections are remitted to the designated banks at CC on the same day The details of the collections are communicated on a daily basis to RHQs (F&A Department/ Commercial Department) and CC (Commercial Department / Treasury Section)

While discharging this function the Regional Finance and Accounts department should ensure that: The LCs are operated on the due dates as per the conditions of the LC The collections and the corresponding bank charges are duly accounted for The bank charges debited by bank are reasonable The Bank Reconciliation Statement of collection accounts are prepared periodically and in time LC charges are accounted for as per the provisions of the applicable scheme/notification Allocation of realizations to the power stations The realizations from beneficiaries are to be allocated to all the stations. The allocation should be made as per the details provided by the beneficiaries. In case the details are not provided, efforts should be made to obtain the same from the Beneficiaries. The basis for allocation of realizations is as follows: Realization( in cash) Realization against identified bills The realization should be allocated based on the details of the payment provided by the beneficiaries. 11

Manual on Sales Accounting

Ad-hoc collections from Beneficiaries In respect of an ad-hoc amount received from Beneficiaries (i.e. the amount is not identified to any bill) then the same is to be allocated to the stations in the ratio of the undisputed outstanding station-wise debtors position. Recoveries on account of surcharge Recoveries on account of surcharge should be allocated to the stations in the ratio of the surcharge balance outstanding Realization (other than Cash ) In respect of realizations made in a form other than cash (say securitisation of debtors by issue of bonds) the same should be carried out as per the scheme prescribed in this respect. The realizations are to be allocated to the stations on a proportionate basis of the undisputed outstanding Departments involved in the process Finance and Accounts Department(Cash and bank section and finance-commercial section)RHQ Finance and Accounts (Treasury Section) CC

Procedure : Realizations from Beneficiaries S.No Activity Person Responsible Frequency/ Timing Remarks

Realization through operation of LCs 1 Receive copy of Letter of Credit from Commercial Dept. RHQ. F&A Department RHQ F&A Department RHQ As and when an LC is opened/amend ed On due date of LC negotiation

Prepare the documents required to be submitted for operation of the LC including the following: - Invoice for the amount to be negotiated through LC - Sight draft for the amount receivable against the LC - Certificate of correctness of the bill

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S.No 3

Activity raised Forward a letter to the banker for negotiation of the LC along with a copy of the documents (as per the terms of the LC) Receive the bank advice for realization of the LC amount and intimate the same to: Commercial group, RHQ Finance Treasury group, CC

Person Responsible F&A DeptRHQ

Frequency/ Timing Immediately

Remarks

Generate a BRV to account for the receipt along with a statement of allocation to the stations Authorize the BRV and follow process as per Cash& bank manual for updating of BRV

F&A DeptRHQ

Immediately

5 6

Follow up with the banks and ensure that F&A Deptthe funds have been remitted to CC RHQ Cash and Generate a BPV to transfer the funds Bank Sectionrealized to CC. RHQ Authorize the BPV and follow process as per Cash& bank manual for updating of BPV

Immediately Same day

Collections other than through LCs 7 Receive intimation of the realization (along with the necessary details) from the collection centre RHQ- F&A Dept As and when

Cash and Generate a BRV for the amount received from Beneficiaries along with allocation Bank SectionRHQ to the stations. Authorize the BRV and follow process as per Cash& bank manual for updating of BRV

Same day

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S.No 9 10

Activity

Person Responsible

Frequency/ Timing Immediately Same day

Remarks

Follow up with the banks and ensure that F&A Deptthe funds have been remitted to CC RHQ Cash and Generate a BPV to transfer the funds realized to CC and intimate the Corporate Bank SectionRHQ Treasury Group. Authorize the BPV and follow process as per Cash& bank manual for updating of BPV Receive CPA payment and deposit the cheque in the bank and generate BRV to account for the receipt and for transfer of credit to the RHQ through IU-CC account Receive allotment letter for bonds issued by the Beneficiaries against the outstanding dues and after exercising all checks as per the Investment Manual. Generate a JV for accounting of sales realization and for transferring the realization to RHQs. Authorize the JV and follow the process as per Books manual for updating the JV and for raising IUA on RHQs Receive an IUA from CC on account of the funds realized through Central Appropriation/Bonds Generate a JV to account for the realization Authorize the JV and follow the process as per Books manual for updating the JV Ensure that IUAs in respect of all the funds transferred have been received. CC-Treasury

11

As and when

12

CC Investment Cell

As and when

13

F&A Dept RHQ

As and when

14

On receipt of the bank advice/ statement generate a BPV to account for the bank charges after ensuring that the bank charges are as per the agreed rates Authorize the BPV and follow process as per Cash & bank manual for updating the BPV Generate a statement of realizations from

F&A Dept RHQ

As and when

15

F&A Dept-

Fortnightly

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S.No

Activity the beneficiaries and after approval by the competent authority forward the same to the Treasury Group, CC

Person Responsible RHQ

Frequency/ Timing

Remarks

Allocation of realizations to power stations 16 Allocate the realizations to the various stations (based on the details provided by the beneficiaries/ on a pro-rata basis of the debtors outstanding) and generate a Realization statement (station/ beneficiaries-wise) F&A DeptRHQ Monthly

Allocation of LC charges, other charges, etc to stations 17 In case the LC charges are to be borne by NTPC, generate a BPV debiting the various generating stations on account of LC charges, etc. on the basis of allocation of the realizations Authorize the BPV and follow process as per Cash & bank manual for updating the BPV F&A DeptRHQ Monthly The LC charges to be borne by NTPC/ beneficiaries should be as per the scheme prescribed in this respect

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15

Document - Records Document Title Debtors Ledger - beneficiary wise - Station wise Statement of Realization from Beneficiaries Accounting Entries Accounting for realizations (through LC or direct) Region Books On receipt of payment Bank A/c Sundry Debtors for sale of energy On remittance to CC Inter-unit CC Fund A/c CC Bank charges (other than LC charges) Bank A/c CC Books Bank A/c Inter Unit CC Fund A/c RHQ Accounting for realizations through Bonds CC Books Investment in Bonds A/c Inter Unit CC Fund A/c RHQ Region Books Inter-unit CC Fund A/c CC Sundry Debtors A/c Dr Cr Dr Cr Dr Cr Document Type R O Format Ref. SA/07 SA/08 SA/09 Frequency/ Timing As and when Fortnightly Distribution Treasury Section, CC

Dr Cr Dr Dr Cr

Accounting of L.C. charges, other charges, etc. (if charges are to be borne by NTPC) In RHQ books L.C. charges Bank A/c Dr Cr

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Inter unit CC Fund A/c Station LC charges, etc. allocated to stations

Dr Cr

In case LC charges are to be borne by Beneficiaries then the realizations should be shown net of LC charges In Station books L.C. charges Inter Unit CC Fund A/c RHQ Dr Cr

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Process: Raising of credit notes for rebate Process brief:

Process No: 03

The process lays down the procedure to be followed for raising of credit notes for the rebate amount due to the Beneficiaries as per the applicable terms and conditions. While discharging this function it is to be ensured that: The credit notes are generated at the end of the month based on the realizations made during the month. Allocation of rebate Rebate should be allocated to the stations based on the details given in the payment advice received from the beneficiaries. Incase such details are not available the rebate amount should be allocated to stations in the proportion of the amount of bills pertaining to respective stations. Departments involved in the process Finance and Accounts department, RHQ

Procedure: Raising of credit notes for rebates S. No 1 2 Activity Compute the amount of the rebate (as per the Scheme/Notification) and enter the details in the system Generate the credit note for the rebate amount and forward the same along with the computations to the competent authority for approval Generate a JV to account for the credit note. Authorize the JV and follow the process as per Books manual for updating the JV Forward the copies of the duly approved credit notes to the beneficiaries, Commercial Dept, CC and Commercial Dept, RHQ Person Responsible Finance & Accounts Dept RHQ Finance & Accounts Dept RHQ Frequency/ Timing Monthly by 10th of next month Monthly by 10th of next month Remarks

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Document - Records Document Title Credit rebates notes for Document Type O Format Ref SA/10 Frequency/ Timing Monthly Distribution Beneficiaries Commercial Dept RHQ/ CC

Accounting entries Accounting of rebate In RHQ books Rebate allowed A/c Sundry Debtors for sale of energy Inter unit CC Fund A/c Station Rebate allocated a/c In station books Rebate allocated a/c Inter unit CC Fund A/c RHQ Dr Cr Dr Cr Dr Cr

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Process: Intimation for surcharge on overdue payments Process brief:

Process No : 04

The process lays down the procedure to be followed for intimating the surcharge amount due from the beneficiaries on account of overdue outstanding While discharging this function it should be ensured that: The rate of surcharge should be as per the terms and conditions of applicable tariff / PPA The surcharge is to be accounted for on receipt as other income Departments involved in the process Finance and Accounts department, RHQ

Procedure: Intimation for surcharge on overdue payments S. No 1 Activity Generate a report of the bill wise outstanding and the surcharge amount thereon as per the terms and conditions of the Tariff/PPA and forward the statement of outstanding and the surcharge statement as computed to the competent authority for approval Intimate the beneficiaries of the surcharge amount due from them Forward the copies of the intimation to the Commercial Department, CC Commercial Department, RHQ Commercial Co-ordinators (Collection) stationed at beneficiaries Headquarters Document - Records Document Title Intimation of surcharge on overdue Document Type O Format Ref SA/11 Frequency/ Timing Monthly Distribution F&A Department, RHQ Person Responsible Finance & Accounts Dept RHQ Frequency/ Timing Monthly Remarks

Finance & Accounts Dept RHQ

Monthly Within 2 days of close of the month

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Document Title payments

Document Type

Format Ref

Frequency/ Timing -

Distribution Beneficiaries Commercial Department RHQ/ CC Co-ordinators (Collection)

Accounting Entries (only on receipt of surcharge) In RHQ Books Sundry Debtors for surcharge (to the extent received) Inter Unit CC Fund A/c (other income) Station Inter Unit CC Fund A/c (sales Realization) CC Sundry Debtors for surcharge In Station Books Inter Unit CC Fund A/c (sales) RHQ Other Income Dr Cr Dr Cr Dr Cr

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Process: Reconciliation of accounts with Beneficiaries Process brief:

Process No: 05

The process lays down the procedure to be followed for reconciliation of the debtors balance as per NTPC with the respective beneficiaries. While discharging this function it is to be ensured that: A report on the age-wise outstanding of the debtors is regularly generated and reviewed The accounts with the beneficiaries should be reconciled on a quarterly basis. Departments involved in the process Finance and Accounts department, RHQ Commercial Department, RHQ

Procedure: Reconciliation of accounts with Beneficiaries S. No 1 Activity Prepare a statement of amount outstanding (along with a statement of age-analysis) with the beneficiaries as at the quarter- end taking into account the following: Balance as at the beginning of the period Bills raised during the period (including supplementary bills) Realizations during the period Rebate, if any (allowed during the period) Generate a statement of the surcharge amount due from the beneficiaries Forward the statements to the respective beneficiaries for reconciliation Reconcile the balances with the beneficiaries and prepare a statement of differences/ disputes and forward the same to the competent authority for the necessary action to be taken for resolution of the disputes Generate an SEB-wise report on Person Responsible Finance and Accounts Dept - RHQ Frequency/ Timing Quarterly Remarks

2 3

Finance and Accounts Dept - RHQ Finance and Accounts Dept, RHQ

Quarterly Immediately The reconciliation statement should be jointly signed by respective RHQ and respective beneficiary. Quarterly

4.

Finance and

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S. No

Activity Sundry debtors providing the details of billing, realizations, rebates allowed, etc and after approvals of the competent authority forward the same along with the age-wise analysis statement to CC

Person Responsible Accounts Dept, RHQ

Frequency/ Timing

Remarks

Document - Records Document Title Age-analysis of debtors Reconciliation statement with Beneficiaries SEB-wise report on Sundry Debtors Document Type MIR MIR MIR Format Ref. SA/MIR/01 SA/MIR/02 SA/MIR/03 Frequency/ Timing Quarterly Quarterly Quarterly Distribution CC Beneficiaries CC

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Process: Reconciliation of ESO with REB Process brief:

Process No: 06

The process lays down the procedure to be followed for reconciliation of the ESO as per the global account received from the REB and the ESO as per the Joint Meter Reading (JMR). While discharging this function it is to be ensured that: The reconciliation is carried out on a quarterly basis and differences, if any, is intimated to the REB for necessary adjustments A provision should be created for the difference between the global account and the JMR at the year-end in the books of account Departments involved in the process Finance and Accounts department, RHQ

Procedure : Reconciliation of ESO with REBs S.No 1 Activity Receive the invoice for sale of energy / supplementary bill raised on the Beneficiaries from RHQ and compare the ESO as invoiced with the JMR Generate a statement of differences between the ESO billed and that as per the JMR Update the statement on the basis of any revisions to the global account received from the REB 3 Forward the statement to RHQ Receive the reconciliation statement from the stations. Compare the same with the Global account and forward it to the Commercial Dept to take the necessary follow-up action with the REBs Obtain a status report on the differences as reported by the stations and the settlement of the F&A DeptRHQ Person Responsible F&A DeptStation / RHQ F&A DeptStation Frequency/ Timing Monthly Remarks

Monthly

As and when Monthly Within 3 days

F&A DeptRHQ

Half-yearly

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S.No

Activity same from the Commercial Department, RHQ for review and follow up action

Person Responsible

Frequency/ Timing

Remarks

Document - Records Document Title Reconciliation statement of ESO billed and ESO as per the JMR Accounting entries Accounting of JMR Global Account difference In RHQ books Sundry Debtors- others Inter Unit CC sales - Stations In station books Sales Inter Unit CC sales - RHQ Dr/Cr Cr/Dr Dr/Cr Cr/Dr Document Type MIR Format Ref. SA/MIR/04 Frequenc y/ Timing Quarterly Distribution F&A Department, RHQ HOF, RHQ

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Process: Accounting for sundry debtorsYear-end provision for bad and doubtful debts and Tariff adjustments Process brief: Provision for bad and doubtful debts

Process No: 07

The process lays down the procedure to be followed for accounting for sundry debtors and creating a provision for bad and doubtful debts at the year-end. While discharging this function it is to be ensured that: The debtors account (beneficiaries-wise and station-wise) is maintained and updated by RHQ At the year-end, the balance in the debtors account duly certified by the Statutory Auditors is transferred to the respective stations. The debtors outstanding and the age-analysis of the debtors should be reviewed and a provision should be created at the year-end for the doubtful debts, as considered necessary. The provision so created is to be certified by the Statutory Auditors and transferred to the respective stations The balances as transferred by the RHQ are to be reversed in the books of the station on the first day of the next year and transferred to the concerned RHQ. Provision for Tariff adjustments Wherever the bills have been raised on provisional tariff the accounting of billing should be reviewed in the light of latest developments in the process of finalization of tariff such as proceedings before the CERC etc. and sales accounted for should be adjusted accordingly pending revision in actual billing at the year end. Accounting Entries : Provision for bad and doubtful debts Sundry Debtors Dr Cr

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Process: Payment of Statutory levies on generation/ sale of electricity Process brief:

Process No: 08

This process lays down the procedure to be followed for payment of statutory levies (such as electricity duty, Cess/Duty on auxiliary consumption, water cess, etc) on generation/ sale of electricity. While discharging this function it is to be ensured that: The statutory duties as applicable are to be paid by the stations to the authorities The payments as above are intimated to RHQs for raising invoice on beneficiaries Departments involved in the process Finance and Accounts department, RHQ/ Station

Procedure: Payment of Statutory levies on generation/ sale of electricity S.No 1 Activity Prepare and send station performance report to the F&A Dept Station Receive the station performance report from the O&M and prepare a statement of the statutory levies/ duties duty payable (on generation and sales) for the month Generate a JV and prepare the challans, any other documents for the amount payable Authorize the JV and follow the process as per Books manual for updating the JV Forward the same to the competent authority for approval Prepare and authorize the BPV and forward the same to the Cash and Bank Section to release the payment Authorize the BPV and follow process as per Cash & bank manual for updating the BPV Person Responsible O&M DeptStation Finance & Accounts Dept- Finance Commercial Section, Station Frequency/ Timing By 2nd of the month Monthly Remarks

Finance & Accounts Dept Finance Commercial Section, Station

Within the time limit specified for deposit of dues

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S.No 4

Activity Follow up with the Cash and Bank Section for receipt of duly paid challans on the due dates Receive the challans from the Cash and Bank section and intimate the amount paid on account of statutory levies to the RHQ File the Statutory return to the appropriate authority for the amount paid.

Person Responsible Finance & Accounts Dept Finance Commercial Section Finance & Accounts Dept- Finance Commercial Section, Station Finance & Accounts Dept- Finance Commercial Section, Station

Frequency/ Timing As and when

Remarks

As and when

On the due dates

Document - Records Document Title BPV Document Type O Format Ref. Frequency/ Timing As and when Distribution Cash and bank Section

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SA/01 CONSOLIDATED INVOICE To

(beneficiary address) Dear Sir, Given below are the details of energy Bill. You are requested to release the payment for the same at the earliest BENEFICIARY: Invoice Date : S. No Station From Date To Invoice No : Bill No Bill Amount (Rs) (A) Last date of payment : Itax/Cess Total Amount (B) (A +B)

Total
Rupees (in words) Note: Rebate is not applicable on the amount (b) E&O.E For and on behalf of NTPC Limited (Authorised Signatory)

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SA/02
Energy Bill For the period From --------To --------

Bill No
Name of Beneficiary : Beneficiary Address: Power Plant : Energy Supplied: (in Kwh)

Date of Issue
Last date of payment : Reference : Total ESO : (in Kwh) Rate (Rs) Amount (Rs)

Billing Details: S. No Description Fixed charges (Rs in crores)/ year Variable charges (P/Kwh) FPA rate (P/Kwh) MOPA Rate (P/Kwh) ED/Water Cess (P/Kwh)

UI charges Total
Rupees (in words) :

FPA Details Formula

Inputs Parameters FPA Rate E&O.E

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SA/03
Water Cess Bill For the period From --------To --------

Bill No
Name of Beneficiary : Beneficiary Address: Power Plant : S. No Energy Supplied (Kwh) Description

Date of Issue
Last date of payment : Reference : Total ESO: ----------------- (Kwh) Rate (Rs) Amount (Rs)

Total Rupees (in words) : E&O.E For and on behalf of NTPC Limited (Authorised Signatory)

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SA/04
SUPPLEMENTARY/REVISED BILL For the Period From ------ To ------Date of Issue: Last Date of Payment: Notification Ref: REA Reference Revised Energy (kwh): Revised Total ESO (kwh): Revised Rate (Rs) A Claimed Rate (Rs) B Revised Amount (Rs) C Claimed Amount (Rs) D Net Amount (Rs) E=C-D Prev. Bill No &date:

Bill No

Name of Beneficiary:

Address :

Power Plant:

Energy Claimed (kwh):

Total ESO Claimed (kwh): S. No DESCRIPTION

Total Rupees (in words):

FPA / MOPA Details: Formula Input Parameters Note: The revision bill should be prepared in respect of amendments to the amount already billed on account of any or all of the following: Changes in tariff Amendment to global accounts Change in FPA rate Certificate of open cycle operation for previous months, not already billed Adjustment to income-tax on final assessment Others In respect of each of the above items, the detailed calculation sheets should be provided

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SA/05 Bill No
Name of Beneficiary: Address : Power Plant: Billing Details S. No INCENTIVE BILL For the Period From ------ To ------Date of Issue: Last Date of Payment: Ref:

Description

Rate (Rs)

Amount (Rs)

Cumulative Incentive upto ----------Incentive Already claimed upto -----Net Incentive Now Billed Rupees (in words) Note : Provide the detailed calculation for computation of incentive as per the applicable tariff E&O.E SA/06

STATEMENT OF ALLOCATION OF SALES TO STATIONS

Station : Period : Beneficiary

Fixed charges

Rs

Variable charges Rs

FPA Rs

MOPA Rs

W. Cess Rs

Incentive/ Disincentive Rs

Electricity Duty Rs

Income tax Rs

Others Rs

Total Rs

Total

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SA/07 Debtors Sub-Ledger (beneficiary wise) For the period -----------------------------Account code: Name : (beneficiary) Code: Voucher type

Section
Vr. No Sl. No

Particulars

Bill/ Cheque No Date

Amount (Rs) Debit Credit

001 ----------------------- Power Station

Opening Balance Closing Balance

002 ----------------------- Power Station

Opening Balance Closing Balance

003 ----------------------- Power Station

Opening Balance Closing Balance

Ledger Balance Note : In case of the realisations in the form of LC/DD/any other mode , the details should be recorded in the column Bill/cheque No and date

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SA/08 Debtors Sub Ledger (Station wise) For the period -----------------------------Account code: Name : (Station) Code: Voucher type

Section
Vr. No Sl. No

Particulars

Bill/ Cheque No Date

Amount (Rs) Debit Credit

001 ----------------------- (BENEFICIARY)

Opening Balance Closing Balance

002 -----------------------(BENEFICIARY)

Opening Balance Closing Balance

003 ----------------------- (BENEFICIARY)

Opening Balance Closing Balance

Ledger Balance Note : In case of the realisations in the form of LC/DD/any other mode , the details should be recorded in the column Bill/cheque No and date

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SA/09 Statement of Realisations from Beneficiaries For the fortnight ended ----------------Sl. No Beneficiary Realisation Date Amount (Rs) Mode Type (LC/ Cheque/ DD/Bond/Others) Remarks No Date

Total

Prepared By Checked By -------------------------------------Note: The report to be sent by RHQ to Treasury Group, CC

----------------------------------------------

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SA/10 CREDIT NOTE FOR REBATE

beneficiary : Dear Sir, Given below are the details of the rebate as per the ---------------------------- (provide reference of the relevany notification/scheme, etc) Sl. No For the month of -------------------No : Date :

Station

Bill Amount (Rs) 3 XXXX XXXX

ED and Cess
Sales Auxiliary Power Consumption 5 XXX XXX Total

Amount eligible for Rebate 7 (3-6) XXXX XXXX

2 A B Total

4 XXX XXX

6 (4+5) XXX XXX

Amount paid through LC directly 8 XXXX XXXX XXXX XXXX

Rebate percentage

Rebate Amount (Rs) 10 XXX XXX XXX XXX

9 XX XX XX XX

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SA/11
SURCHARGE AMOUNT ON LATE/ NON PAYMENT OF DUES Beneficiary : Address Dear Sir,

Given below are the details of the surcharge due from you on account of late/ non payment of dues. You are requested to pay the amount of surcharge immediately.
Particulars Surcharge upto previous month ending ____________________________ Add: Surcharge for the month Cummulative surcharge upto month ending __________________________ Note : The detailed calculation sheet for the surcharge amount should be enclosed Amount (Rs)

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MIR/SA/01 AGE-ANALYSIS OF SUNDRY DEBTORS

For the Quarter ended -------------------------

Rs. Lakhs SEB

Balance outstanding

Age-analysis of outstanding
0-6 months 6-12 months 1-2 years 2-3 years 3-5 years More than 5 years

Prepared By: F&A Department, RHQ

Distribution: ED (RHQ) F&A Deptt (CC)

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SA/MIR/02 RECONCILIATION STATEMENT WITH ----------------------- (BENEFICIARY)

Sl. No Particulars As on --------------------------As per NTPC (Rs) As per BENEFICIARY (Rs)

Difference
(Rs)

Reasons

Energy Bills (including Revised/ Supplementary Bill) 1 Balance as on ----------------------- (end of previous quarter) 2 3 4 5 Add: Billing during the Quarter Less: Realisation during the quarter Less: Rebates Balance as on ------------------ (end of current quarter)

Surcharge Bills 1 Balance as on ----------------------- (end of previous quarter) 2 3 4 Add: Billing during the Quarter Less: Realisation during the quarter Amount outstanding as on ------------------ (end of current quarter) Authorised By ------------------------------

Prepared By -----------------------------------Note: The following should be attached to the reconciliation statement : Details of the differences Details of bills raised during the quarter (station-wise) Details of realisations The statement/ confirmation received from the beneficiary

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MIR/FSA/03 SEB-WISE REPORT ON SUNDRY DEBTORS For the Quarter ended --------------------SEB Particulars Opening Balance Billing for the period Adjustment Billing Realisation LC charges Rebates Closing Balance

Total Prepared By:

F&A Department, RHQ Distribution: ED (Region) F&A Deptt (CC)

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SA/MIR/04
RECONCILIATION STATEMENT OF ESO BILLED AND ESO AS PER JMR Station : S. No Month Billed as per Global account (Mus)

ESO
As per JMR (Mus) Difference (Mus)

Remarks

Total Prepared By ---------------------------Authorised Signatory -----------------

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MIR/FSA/03 SEB-WISE REPORT ON SUNDRY DEBTORS For the Quarter ended --------------------Opening Balance Billing for the period Adjustment Billing Realisation LC charges Rebates Closing Balance

SEB

Particulars

Total
Distribution: ED (Region) F&A Deptt (CC)

Prepared By:

F&A Department, RHQ

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SA/MIR/04
RECONCILIATION STATEMENT OF ESO BILLED AND ESO AS PER JMR Station : S. No Month Billed as per Global account (Mus)

ESO
As per JMR (Mus) Difference (Mus)

Remarks

Total Prepared By ---------------------------Authorised Signatory -----------------

Manual on Sales Accounting