Sales & Credit Control Material Management Purchasing Payroll HR General Accounting Fixed Assets & CAPEX Daily Compare the production orders in SAP on a daily basis for top 10 variance items. Weekly Order types used are appropriate to the nature of transactions (e.g. deliveries to be billed, free samples, replacements against goods returned, defective goods, etc.). ZFSO is used for CCE, FOC supplies and appropriately approved through a block & release strategy. Compare the production orders (In SAP / ERP) with that uploaded in CF2000E for the period under review. Investigate into differences. (orders available in SAP/ERP and not in CF2000e should be seriously looked into. Likewise orders in CF2000e not available in SAP/ERP should get special attention). Weekly Proof of delivery information is available - both carrier's and customer's acknowledgement (signed and dated). Wherever a shortage/excess is noted on the deliver documents, is there a procedure to trace the reasons for such excess/shortages and initiate recovery if required, from the freight carrier. Check the process to ensure that goods are not diverted to other customers inadvertently (or) intentionally to provide unintended extended credit. All failed lots or cheeses from Dyehouse and Finishing have to be transferred to the FAIL storage location from the production orders. Weekly Goods returned are properly recorded and stock records promptly updated. Check whether production is issueing GT to cost centre other than approved cases. Weekly Orders received are checked against credit limits & overdue prior to dispatch of goods and except those that had been properly authorized; other breaches are "stopped". Are these parameters appropriately defined in SAP (or other systems) and reviewed at periodic intervals? Weekly Check delays between date of cheques/cash collections from customers and date of deposits into bank for EPZ customers only. Weekly Check if there is any COD from customers which is prohibited. Monthly Cut-off procedures are clearly identified and strictly adhered to. What is the process to ensure that all goods delivered are invoiced and all goods invoiced are delivered? Check the process followed for quality inspection for items received on consignment basis. All materials & services received are routed through Purchase Orders and comply with the Group guidelines. Any exceptions are identified and escalated for approval (e.g. auditors’ fees, royalty payments). Payments to casual workers are authorised and correctly controlled. Clear policy guideline exists with regard to lease/hire of vehicles and other amenities given to employees and periodic monitoring of such expenses. Is the Balance Sheet review process in place? Are assets (including real estate) adequately insured as instructed in the Capital Expenditure Policy? Monthly All prices (ZPRO & ZPNT) are updated in SAP and available for raising invoices? Is there authorization matrix with regard to the gross margins to be earned. Wherever sales are made to GKA customers, are GKA price lists available to confirm that prices charged are appropriate? Is there a database of items which were rejected due to defect (or quality complaints) and the actions taken to close them (e.g. replacements received/credit notes issued by vendor). Purchase invoices, GRN and orders are recorded and matched. All deductions are authorised and calculated correctly. Pool vehicle usages are restricted for business purpose only and log books are properly maintained. Are Control accounts in agreement with subsidiary ledger balances. Monthly Access to change rates/terms at the time of order entry is restricted and appropriately authorized. YPCM Report is generated on a monthly basis to review all changes made at the order level and appropriately authorized as per authority matrix. Are all cycle count & physical stock take differences posted into SAP only after approval through a park and release strategy? Is the access to post stock adjustments restricted? Purchase ledger is reconciled at least monthly to the purchase ledger control in the nominal ledger. Control accounts are reconciled monthly for net pay, statutory deductions such as PF, tax etc. Monitoring fuel consumption of company provided vehicle including pool cars. Are suspense accounts, Inter Office balances etc. periodically reconciled. Monthly Reasons for credit notes are analysed and exceptions are reported to management. The level of blocked stocks should be reviewed on a weekly basis. Stocks should be blocked due to following reasons only: - Returns from customers during quality check; - Inventory differences identified but not processed; Check for double payment/invoicing. All statutory deductions are paid in line with Government policy. All employees’ related expenses (including MDs) are approved as per one up principle and expenses approval policy. Other debtors and prepayments are reviewed monthly and are fully realizable and appropriate documents are available (wherever required) to substantiate its recoverability. Monthly Overdue account collection systems exist and are strictly adhered to. Supplies to overdue customers are strictly regulated. Confirm whether appropriate NRV provision is carried in the books and complied with Group Policy requirements. All non-statutory deductions are paid on a timely basis and/or in line with Group policy (e.g. pension fund). Business travel expenses must be incurred in line with policy and any exceptions are approved by MD. Other creditors and accruals (e.g. Inbound & outbound delivery, commissions, incentives, discounts & rebates, etc.) are reviewed monthly and are fully stated. Any excess accruals/amounts no longer required are identified and reversed. Monthly Confirm that WIP value as per FICO is supported by open production orders which are current and appropriately valued. All discontinued employees are removed from payroll register and bank instructions letter. An aged creditor’s ledger is produced and reviewed monthly. Monthly Check whether all items are enabled for backflush and manual backflush is disabled for movement type 261. All issues to cost centre are appropriately approved. Outstanding items in suspense and other clearing accounts (GRIR & consignment clearing & Employee Suspense) are current and valid. Monthly Compare the approved conversion factors with the factors set in the SAP and inquire into differences (greater than 5%). Provisions for known liabilities (e.g. bad and doubtful debts, customers claims, irrecoverable VAT, etc.) are adequate, comply with Group/Division policy and regularly reviewed.
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Sales & Credit Control Material Management Purchasing Payroll HR General Accounting Fixed Assets & CAPEX
DailyCompare the production orders in SAP on a daily basis for
top 10 variance items.
Weekly
Order types used are appropriate to the nature of
transactions (e.g. deliveries to be billed, free
samples, replacements against goods returned,
defective goods, etc.). ZFSO is used for CCE, FOC
supplies and appropriately approved through a
block & release strategy.
Compare the production orders (In SAP / ERP) with that
uploaded in CF2000E for the period under review.
Investigate into differences. (orders available in SAP/ERP
and not in CF2000e should be seriously looked into. Likewise
orders in CF2000e not available in SAP/ERP should get
special attention).
Weekly
Proof of delivery information is available - both
carrier's and customer's acknowledgement
(signed and dated). Wherever a shortage/excess is
noted on the deliver documents, is there a
procedure to trace the reasons for such
excess/shortages and initiate recovery if required,
from the freight carrier. Check the process to
ensure that goods are not diverted to other
customers inadvertently (or) intentionally to
provide unintended extended credit.
All failed lots or cheeses from Dyehouse and Finishing have
to be transferred to the FAIL storage location from the
production orders.
WeeklyGoods returned are properly recorded and stock
records promptly updated.
Check whether production is issueing GT to cost centre
other than approved cases.
Weekly
Orders received are checked against credit limits
& overdue prior to dispatch of goods and except
those that had been properly authorized; other
breaches are "stopped". Are these parameters
appropriately defined in SAP (or other systems)
and reviewed at periodic intervals?
WeeklyCheck delays between date of cheques/cash
collections from customers and date of deposits
into bank for EPZ customers only.
WeeklyCheck if there is any COD from customers which is
prohibited.
Monthly
Cut-off procedures are clearly identified and
strictly adhered to. What is the process to ensure
that all goods delivered are invoiced and all goods
invoiced are delivered?
Check the process followed for quality inspection for items
received on consignment basis.
All materials & services received are routed
through Purchase Orders and comply with the
Group guidelines. Any exceptions are identified
and escalated for approval (e.g. auditors’ fees,
royalty payments).
Payments to casual workers are
authorised and correctly
controlled.
Clear policy guideline exists with regard to
lease/hire of vehicles and other amenities given
to employees and periodic monitoring of such
expenses.
Is the Balance Sheet review process in place?
Are assets (including real estate) adequately
insured as instructed in the Capital
Expenditure Policy?
Monthly
All prices (ZPRO & ZPNT) are updated in SAP and
available for raising invoices? Is there
authorization matrix with regard to the gross
margins to be earned. Wherever sales are made
to GKA customers, are GKA price lists available to
confirm that prices charged are appropriate?
Is there a database of items which were rejected due to
defect (or quality complaints) and the actions taken to close
them (e.g. replacements received/credit notes issued by
vendor).
Purchase invoices, GRN and orders are recorded
and matched.
All deductions are authorised and
calculated correctly.
Pool vehicle usages are restricted for business
purpose only and log books are properly
maintained.
Are Control accounts in agreement with subsidiary
ledger balances.
Monthly
Access to change rates/terms at the time of order
entry is restricted and appropriately authorized.
YPCM Report is generated on a monthly basis to
review all changes made at the order level and
appropriately authorized as per authority matrix.
Are all cycle count & physical stock take differences posted
into SAP only after approval through a park and release
strategy? Is the access to post stock adjustments restricted?
Purchase ledger is reconciled at least monthly to
the purchase ledger control in the nominal
ledger.
Control accounts are reconciled
monthly for net pay, statutory
deductions such as PF, tax etc.
Monitoring fuel consumption of company
provided vehicle including pool cars.
Are suspense accounts, Inter Office balances etc.
periodically reconciled.
MonthlyReasons for credit notes are analysed and
exceptions are reported to management.
The level of blocked stocks should be reviewed on a weekly
basis. Stocks should be blocked due to following reasons
only:
- Returns from customers during quality check;
- Inventory differences identified but not processed;
Check for double payment/invoicing.All statutory deductions are paid
in line with Government policy.
All employees’ related expenses (including
MDs) are approved as per one up principle and
expenses approval policy.
Other debtors and prepayments are reviewed
monthly and are fully realizable and appropriate
documents are available (wherever required) to
substantiate its recoverability.
MonthlyOverdue account collection systems exist and are
strictly adhered to. Supplies to overdue customers
are strictly regulated.
Confirm whether appropriate NRV provision is carried in the
books and complied with Group Policy requirements.
All non-statutory deductions are
paid on a timely basis and/or in
line with Group policy (e.g.
pension fund).
Business travel expenses must be incurred in
line with policy and any exceptions are
approved by MD.
Other creditors and accruals (e.g. Inbound &
outbound delivery, commissions, incentives,
discounts & rebates, etc.) are reviewed monthly and
are fully stated. Any excess accruals/amounts no
longer required are identified and reversed.
MonthlyConfirm that WIP value as per FICO is supported by open
production orders which are current and appropriately
valued.
All discontinued employees are
removed from payroll register and
bank instructions letter.
An aged creditor’s ledger is produced and reviewed
monthly.
MonthlyCheck whether all items are enabled for backflush and
manual backflush is disabled for movement type 261. All
issues to cost centre are appropriately approved.
Outstanding items in suspense and other clearing
accounts (GRIR & consignment clearing & Employee
Suspense) are current and valid.
MonthlyCompare the approved conversion factors with the factors
set in the SAP and inquire into differences (greater than
5%).
Provisions for known liabilities (e.g. bad and doubtful
debts, customers claims, irrecoverable VAT, etc.) are
adequate, comply with Group/Division policy and
regularly reviewed.
Sales & Credit Control Material Management Purchasing Payroll HR General Accounting Fixed Assets & CAPEX
MonthlyInquire whether an input-output reco is performed on a
monthly basis. Independently compute the waste.
Are all known expenses/liabilities accrued/provided
for while preparing the unit results.
Monthly
Compare order quantity with production quantity. In case of
MTO, ensure that excess production is considered for
dormancy / slow moving provision.
Bank reconciliation is prepared and reviewed
regularly with explanation of unreconciled items.
QuarterlyOutstanding debts are fully supported by relevant
sales documentation (invoices, despatch notes).
Monitoring of OTV to check multiple purchase
are not being done from them.
Employee insurance such as
medical & life coverage premium
is calculated correctly and
updated for all employees.
Have all local statutory accounts/tax filing deadline
been met.
Any missing assets are appropriately charged
off after such investigation and approvals.
Quarterly
Unadjusted credits (collections, credit notes) are
periodically reviewed and matched against the
customer dues to reflect current and correct
status of the customers’ balances.
Supplier statements reconciled & differences
actioned.
QuarterlyAre prices negotiated for MuM linked to the
cost of base raw materials and inflation thereof?
QuarterlyAre purchases following three quotations
principle?
Quarterly
Any shipment received other than by sea route
(Air, courier, etc.) are appropriately approved as
per the authority matrix, after appropriate
review. Are all freight transactions
substantiated by a freight contract (inward – as
per group negotiated terms) and outward (as
per local contracts)?
QuarterlyEvaluate open PO and resolve long pending
cases.
Quarterly
Where suppliers' credit is taken, it is evaluated
against alternative funding cost and appropriate
advice is sought before incurring such additional
costs re advance to suppliers should be
restricted.
QuarterlyVendor background data are updated and
reviewed for accuracy.
Half yearly
Credit limits are regularly reviewed as per Group
Credit Policy (twice a year review) and changes are
properly authorised. Credit limits are aligned to
average sales for past 12 months and forecast
sales.
Physical stock count is done twice a year as per group
norms. Insure that count is done by a multifunctional team,
instructions have been issued, and count sheets do not
contain quantity. Enquire into the differences and whether
the explanations sound reasonable.
PO authorization matrix defined in SAP for
approval of purchase orders is in line with local
authorization matrix within the ambit of
delegation of authority (DOA) matrix issued by
Group. How does one ensure that the purchase
orders are not split to violate authorization
limits?
All pay changes are approved and
aligned with policy
Code of business conduct has been signed as
required by Group HR policy and conflicts If any
have been disclosed & appropriately actioned
by Unit?
Leased assets are separately identified and recorded.
Group cut-off levels are observed for
capitalisation of small value items and spare
parts. SAP functionality is used for monitoring
stocks at the same time writing off low value
assets.
Half yearly
Customers’ credit limits > $200k are approved as
per Group Credit Policy prior to posting these
credit limits in SAP (or other systems). Also data
on credit limit and balances >$200k and overdue
in those accounts are reported in BCS on a
monthly basis.
A supplier database is maintained and regular
suppliers are periodically evaluated for price,
delivery and quality. The evaluation process
should be evidenced. All items have multiple
sources of supply and in case of single source,
action plans are in place to address supply
disruption and is flagged off in Risk
Questionnaire.
Holiday pay provisions are
adequate.
Systems are adequate to monitor funds
committed (e.g. POs, contracts) and estimate
total project cost to assure early warning of
potential overruns or scope changes and
provide the basis for a supplemental
authorisation request before authorised
funds are fully expended.
Half yearlyIs purchase committee is functioning as per ToR
including location based committee?
Fund management such as
accounts preparation, balance
circulation etc of PF/WPPF/SAF
are properly done and updated.
Capital WIP accounts are periodically
reviewed and followed up with user
departments for timely capitalization and
providing depreciation.
Half yearlyPayment terms are optimised. Access to change