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Published by: Hasan Shadab on Jan 02, 2014
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Total Environment Building Systems Private Limited

Automatic Payment Process
Date of creation: 23rd February, 2009

Created by: Rajendra M.Prasad

Questions: Q: 1) How do you post payments? Which G/L accounts are used? Which additional account assignments (for example, cost centers) do you need for bank postings, bank charges accounts, cash discount accounts, and exchange rate differences? A: a) By Using T.code F-53 we do the posting of payments, b) GL accounts are used as follows. GL account Bank account Remarks 125000 Axis Bank All kinds of Vendor payments 124100 Citi Bank EMI payments for which PDC’s or standing instructions issued 124500 HDFC Bank Salary payments c) As of now we are not using any additional account, however we will not discount if any valuable additional accounts that can be used. d) For Bank charges, presently we are entering manually by referring to bank statement e) Presently not having any cash discount accounts. If it is not a roundabout we can contemplate introduction of accounting for cash discount facility. f) Exchange rate differences do arise, as there are overseas payments dealing with other currencies.

Automatic Outgoing Payments

Q: 2) Do you wish to clear vendor invoices at the time of payment {or at the time the bank statement is posted (Phase II)}? A: We wish to clear vendor invoices at the time of payments. We are not clear what do you mean by clearing at the time of posting bank statements. Please elucidate. Q.3 – Q-3 is Missing, we assume it is not relevant to us. Q: 4) How often do you make automatic payments?

A: Presently there is no automated payments system. Manual analysis of pending payments is being analysed on day-to-day basis.

Q: 7) How do you handle bank charges? A: As specified in reply (d) to Q. or any other criteria relevant for bank selection. EFT.1. Q: 10) How do you process your payment differences? A: By accounting debit note or credit notes or reversals as the case may be.. Incoming account. Directly transactions are effected in Main account. tax or other deductions made. . advance adjustments if any etc. Presently not having any cash discount accounts.1. Q: 11) how many vendor masters do you have? A: Roughly 2300 Vendors Q: 12) Which are the payment methods do you have? Like Cash. We would like to introduce annexure where the payment advice is not suffices the information that we want to furnish. vendor address. outgoing account and Main account.bank charges are handled manually at the time of reconciling the bank statement with the books of accounts. It is to be noted that we don’t operate presently .Suggest us an exhaustive standard format containing the information amongst other things mentioned herein. (In production). Q: 8) How do you handle Cash Discount? A: As specified in reply (e) to Q. If it is not a roundabout we can contemplate introduction of accounting for cash discount facility Q: 9) What information do you include in payment advice? A: Vendor name.. vendor invoice nos. Cheque DD. A: Bank Name Bank account Foreign Currency Payment Method Axis Bank 300010200000675 INR Cheque/Manager’s cheque/ Demand Draft/Real Time Gross Transfer (RTGS)/Wire transfer for foreign remittances HDFC Bank 0077232000002656 INR Cheque/Manager’s cheque/ Demand Draft/Real Time Gross Transfer (RTGS)/Wire transfer for foreign remittances Citi Bank 0900781008 INR Cheque/Manager’s cheque/ Demand Draft/Real Time Gross Transfer (RTGS)/Wire transfer for foreign remittances Q: 6) Whether All House bank master data is available or not? A: All the House bank has been created. by foreign currency. particulars of payments made. presently payment differences are being adjusted manually by passing necessary Journals.Q: 5) From which bank account(s) do you make payments? List the bank accounts by payment method.

Accounts upon which manual cheque is prepared and send it for approval and signature as mentioned in serial no .RTGS etc: A: We use following payment method. if multiple bank exists? A: Normally we are using selective bank-Axis.1. as mentioned earlier. debits will come to our account automatically from our banker’s end. Q: 14) If You Have ECS Facility with you banks. however we can arrange the same from the respective banks .. planned to introduce the authorization matrix once robust and well guarded APP and cheque printing facility is contemplated Q: 16) Kindly explain the cheque approval process before printing cheques A: Once the bills are processed by relevant delegated authorities.16. Q: 15) Kindly explain the authorization matrix (if any) when making Payment A: All payments are being authorized presently by Chairman and MD .2. 1. please elaborate the same A: Refer to the S. Q: 18) On what basis you decide the house bank while payment? Any fixed priority is there. as we are having cashcredit arrangements. 15 above. NO SOP’s documented. for salaries we are also using HDFC bank Account (ITPL Branch) besides Axis. as of now there is no formal documented work-flow that exists. which are all the banks? A: Generally we have given ECS facility for our EMI payments of vehicle loans and other secured loans wherein at periodical agreed intervals.no. Q: 17) Is any workflow exist in the present system for authorization / approval? If Yes. what is the Process. Vendor Payments Questions: . Marthahalli. Cheque/Manager’s cheque/ Demand Draft/Real Time Gross Transfer (RTGS)/Wire transfer for foreign remittances Q: 13) Do you have any pre printed cheque format. with the help of you we can certainly do this and legalise the same. payment is being authorized by Senior Manager. as there will be a standardized format for each of the banks. and advice format? A: Not readily.

1. ________________ Consultant – Rajendra M Prasad _________________ Business Process Owner . but it is not ruled out for future. Q: 2) How do you handle credit memos? A: Presently by passing manual interventions through JV’s -FB 65 & F-41 Q: 3) How do you handle cash discounts? A: Presently not having any cash discount accounts. Want to get more elucidation.Q: 1) How do you handle payables to vendors that are also customers? A: We don’t have vendors who are also as customer as of now . reversal or cancellation entries are being made. picked up for payment on need basis. Q: 5) Whether all Payment Terms are configured as per credit policy with vendors? Do you foresee any new payment term configuration? A: As specified in previous question the question of configuration presently does not arisen. we should plan when we move APP 1. If it is not a roundabout we can contemplate introduction of accounting for cash discount facility. Q: 4) Are you using Payment terms ? If so please list all Payment Terms which are in use A: No Payment terms being used .2. Q: 3) Do you need cheque reprint functionality? A: On regular basis no. However. In case of emergencies sufficient in-built measures and proper escalation of authorities are to be put in place for re-printing. Similar like Form-16 issued for Income-tax purposes.1. Presently we have vendors and customers in inter-companies. Q: 2) Explain VOID Cheque process which are currently in place? A: Through manual intervention. Others Questions: Q: 1) How do you release invoices that have been blocked for payment? A: Presently we have not foreseen this.

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