SUMMER TRAINING REPORT
HEINZ INDIA PRIVATE LIMITED
PLANT ACCOUNTING IN HEINZ INDIA PVT.LTD.
UNDER SUPERVISION OF :-
UNDER GUIDENCE OF:-
SUBMITTED BY: RAVENDRA YADAV
A. PREFACE B. ACKNOWLEDGEMENT C. INTRODUCTION • HEINZ • • • • HEINZ IN INDIA HEINZ VISION HEINZ VALUES STRUCTURAL ENVIROMENT 6 7 8 9 10-14 15 16 17 18 19 20 21 22-23 24 25 26-27 28-30
D. PLANT FINANCE EFFICIENCY E. PLANT ACCOUNTING F. OBJECTS OF PLANT ACCOUNTING G. ACCOUNTING PROCESS AT A GLANCE H. USERS OF PLANT ACCOUNTING INFORMATION I. FUNCTIONS OF PLANT ACCOUNTING J. FLOW CHART K. PLANING DPARTMENT L. PREPARATION OF INDENT PR, PO M. FLOW CHART OF INDENT PR, PO N. PURCHASE • • PURCHASE ORDER TERMS AND CONDITIONS FOR PURCHASE ORDER • ROLE OF FSU 31
P. QUALITY ASSURANCE DEPARTMENT • • QUALITY ASSSURANCE DEPARTMET ROLE OF Q/A DEPARTMENT
Q. FACTORY STORES • • PROCESS OF WORKING IN FACTORY STORES OF HEINZ PROBLEMS IN FACTORY STORES & SUGGESTIONS 37 38-39 40 41 42 43-44 45 46-47 48 49-50 51 52-55 56-57 58 59 60 R. SYSTEM ANALYSIS AND PROCESS S. ENTRY PATTERN OF A/C’S IN COMPANY T. STEPS FOR SERVICE PROCUREMENT U. PAYMENTS • • • • • • • • • • • • PAYMENT SYSTEM PAYMENT PROCEDURE IN HEINZ SERVICE BILL ADVANCE PAYMENT CONSEQUENCES OF DELAY IN PAYMENT POINTS RELATED WITH PAYMET SYSTEM DEPARTMENT RELATED WITH PAYMENT SYSTEM MODE OF PAYMENT REPORT FOR CONTROL REASONS FOR DELAY IN PAYMENT RECOMMENDATIONS CONCLUSION 34-36
V. SAPMLES OF 3
Finance Officer & ----------------------. I have experienced the automated accounting process and other efficient payment procedure. BIBLIOGRAPHY
For the compulsory training required for my course M. I have selected HEINZ INDIA PRIVATE LIMITED. It stands second in the world among food product companies next to nestle. Mainly. It is certified by ISO – 9000. J. Heinz Company is a well known player in FMCG category. Heinz India Limited is one of the American paradigms. section Head of finance & Accounts division --------------------.A.for sparing there valuable time for this purpose. I would like to extend my sincere thanks to the factory authority for allowing me for this training . During my training I have been associated with different areas of finance & accounts division of HEINZ INDIA PRIVATE LIMITED & learned about how to bridge gap between theoretical knowledge & practical working .• • •
INVOICE YELLOW SLIP WHITE SLIP
61 62 62 63
W. H. I have explored many other areas of finance & accounts division. ALIGARH.B. MANZURGARHI.
. Finally.(Senior Assistant in H.R. This project report is the culmination of the Six weeks project work undertaken by me at HEINZ INDIA PRIVATE LIMITED.(Assisstent in Finance) for his support. Several people with whom I have interacted have contributed significantly to the successful completion of my summer project. situations and persons integrate to provide the background for accomplishment of task.ACKNOWLEDGEMENT
No task is a single man effort various factors.(Assistant in H. I am heartly grateful to -----------------------------------------(Charted Accountant) for giving me the opportunity of working at HEINZ INDIA PRIVATE LIMITED. I am very grateful to ---------------------------------------. MANZOORGARHI ALIGARH.) who willingly responded to my innumerable questions and whose contribution is invaluable. And for enlightening me about the subject of the project as well as for his continuous encouragement. assistance and valuable suggestions throughout this project and report preparation. His moral support and continuous guidance has enabled me to carry out my work effectively.R) and ---------------------------. This project would not have been completed effectively without their participation. I am thankful to -------------------------------------. who gave me their precious time. without which this summer project wouldn’t have been success.
with 150 brands holding number-one and number-two positions across five continents and more than 50 countries. taste and nutrition to people eating at home. and a market capitalization of approximately $15 billion. The company has more than 30. the company continues to deliver on its tradition as the “ Pure Food Company”.000 employees worldwide and 11. Heinz is most international U.Johnson. showcased by Heinz Ketchup. Meals and Snacks.
Heinz provides superior quality. Infant/Nutrition. with more than $10 billion in global sales as of Fiscal 2009. President and CEO William R. Under the leadership of chairman. at restaurents. The company has a world-class portfolio of powerful brands.
TOP 15 BRANDS
. The world’s Favourite Ketchup. at the office and “on-the-go”.HEINZ AT A GLANCE
The H.S.S.000 employees in the U.Heinz Company is one of the world’s leading marketers and producers of nutritious foods in three categories : • • • Ketchup and Sauces.-based food company.J.
we enjoy the number-one or number-two market position. woman and child on the planet. Key Heinz markets are segmented as North American Consumer Products. Foodservice. Pennsylvania. Heinz Company. Europe.J. Asia Pacific and Rest of World. Our commitment to providing a variety of wholesome foods. For millions of families the world over.HEINZ
A World of Good Food
The H. is the most global of all U. In more than 50 of those countries.-based food companies. headquartered in Pittsburgh. it isn’t ketchup. Heinz provides delicious. nutritious and convenient foods for families in 200 countries around the world.S. with an unwavering emphasis on health and wellness. “if it isn’t Heinz. U. We sell 650 million bottles of Heinz ketchup every year and approximately two single-serve packets of ketchup for every man. Heinz is synonymous with ketchup. makes Heinz like no other company on earth.S.”
. Famous for our iconic brands on five continents.
The First Name in Ketchup
Throughout the world.
Nycil . whether you’re at home.with extra growing power. a valued partner in the community. Heinz in India provides taste and nutrition through globally trusted products like Heinz Tomato Ketchup and strong local products like Complan . 8
. dining out.Mahek bhara swaad. and developing nutritious and innovative foods for today's families.. Nycil and Sampriti.the refreshing energy drink..500 employees of Heinz are hard at work. Heinz also markets an ever-expanding selection of other great tasting foods.The Good Food Company
INRODUCTION OF HEINZ INDIA
Heinz came to India in 1994 by taking over the Family Products Division of Glaxo with powerful brands such as Complan. Glucon-D . In short. and infant/nutrition. perfecting fresh ideas. Heinz India is fully integrated into the global Heinz operations employing high standards in quality at its state-of-the-art manufacturing facility at Aligarh in the State of Uttar Pradesh. Heinz is committed to enriching your family’s eating experience. Our core products include ketchup. Heinz is a trusted name for consumers. which comprise approximately 70% of our global sales.creating new products. Glucon-D. This manufacturing facility is HACCP certified and follows GFMP (Good Food Manufacturing Practices) to deliver nutritious and safe food products to our discerning consumers.the most effective prickly heat powder and Sampriti Ghee . sauces. on any given continent. snacks. meals. and a great investment with tremendous growth potential. Among them are our 15 Power Brands. the 32. or “on the go!”
Satisfying Tastes and Appetites Around the World
At any given moment.
Passion Risk tolerance Excellence Motivation 9
. iconic brands like Complan & Heinz and category leaders like Glucon D & Nycil are being nurtured with a combination of formulation and flavour upgradation. to people everywhere”. Adhering to standards. To become renounced in commercial as well as social. packaging innovations and new positioning strategies with strong equity quotients.”
“The words Premier Food Company Offering Nutrition.Heinz products synergize the three pillars of the Heinz tradition namely TRUST. Be a company with a strong and motivated workforce. TASTE & NUTRITION. “Today. Delivering high quality products. Superior Tasting Food. Satisfying customer’s needs.
We spot consumer and customer needs and meet them with simple. take accountability and balance the short.
Heinz Worldwide: A Pure Food Company
Team Building & Collaboration .
Integrity .We deliver on commitments. act with the highest ethical standards and ensure
that our products are of the highest quality.We define a compelling. Results .We embrace great ideas from everywhere
and everyone and respect all individuals. sustainable future and create the path to achieve it.and
Innovation Empowerment Respect
Chairman’s Four Imperative
Drive Profitable Growth Remove the clutter Squeeze the cost Measure & Recognize Performance.We always tell the truth.
Heinz – the original Pure Food Company – is dedicated to the sustainable health of people."
HEINZ INDIA BRANDS
. the planet and our Company.Heinz India Private Limited
"As the trusted leader in nutrition and wellness.
m and the entire area is divided into small wooden partition. The capacity of water cooler is 60ltr/hr. Finance department 10. Engineering Department 9.It is concerned with the accounts and budgets preparation.
its functions are: 13
. There are many tube lights. H. Factory Service Unit(FSU) 8. Every separated area is allotted to every single employ.(Personal) Department 5. fans. 500sq. They are as follows:1.R. Milk Procurement Department 11. There are eleven departments in the campus. 24hrs chilled and pure water supply. moveable chairs. Production Department 2. Quality Assurance Department 3.Total area covered by the building of department is appro. Distribution & Planning Department 7. Safety Department
FINANCE DEPARTMENT: . Retail Packing Unit 4. Purchase Department 6.
income tax. Training. service tax. Purchase and expenses accounts control.
II: R . and job rotation. Their functions are: • • • • Selection and Recruitment of employees. promotion. Their functions are: I: Processing area: • • To conduct the dairy activities effectively To dry up the skimmed milk for the preparation of COMPLAN.• • • • • • •
Fund management and budgetary control. contract. Statutory and audit compliance. Revenue budgeting and sending it to the main corporate office. Maintaining the record of temporary casual.U: This unit is set up for the purpose of packaging the products.
PRODUCTION DEPARTMENT: -This department is concerned with production of
FMCG goods. excise duty. and apprentice workmen. Maintaining the personal record. Wages administration.
.This department is concerned with managing people
and matters therewith. Estimation of taxes – sales tax.
PERSONNEL DEPARTMENT: . Variance analysis and information technology.P . Mandi-Samiti tax.
Company almost Bear a loss of Rs. Activities are also coordinated by members of canteen .M operation is the president of the sports club. Lakhs per annum.
QUALITY ASSURANCE DEPARMENT: . Company`s own staff only runs canteen. REST ROOMS: -There are 4 rest rooms to facilitate the workers in the evening and nightshift both.
ENGINEERING DEPARTMENT: .In this committee there are 14 members. Development . 15
. it is a collective work of intelligent people with a team of well trained and experienced people in quality assurance department. annual function of cultural programmes. • To provide effluent treatment and pollution control.Its main function are as follows: • To provide support to operation and maintenance of various equipment used in production process.
HEINZ INDIA PRIVATE LIMITED is committed to: • Procurement . It has different timing for lunch of management staff and workers and is situated in one building only.CANTEEN: Canteen is providing food on highly subsidies rate. so as to ensure that customers confidence is generated and maintained consistency.As the name indicates quality is just not an
accident . The committee coordinates the activities of sports club members like annual sports. games. picnic tours. keeping focus on needs of customer by establishing and maintaining proper facilities necessary for controlled production consistency in a sanitary manner . production and Marketing of safe clean wholesome foods of high quality . G. SPORTS CLUB: . • Establishing and Maintaining appropriate operating and monitoring procedure necessary for controlled production and every person is responsible for product integrity and safe guarding quality environment competent to carry out his responsibilities.It caters approx 500 person daily.
PURCHASE DEPARTMENT: -Its main functions are
• • Material procurement. To conduct milk purity test. To provide storage and refrigeration to the milk.
MILK PROCURMENT UNIT: . • • Ensure compliance of ISO norms.
SAFETY DEPARTMENT: -For the purpose of providing safety and security to the
company from various contingencies. Safe transportation of milk collecting centers to the company . It has been divided into several zones.•
Achieving high safety. Ensure safe unloading of stocks and no discrepancy with ledger balance. Its main functions are: -
Maintenance of quality assurance department and lab equipments.Its main functions are
• • • • Collection of milk from the various collecting centers.
.This department is concern about management of
inventory and control. Its main functions are – • Ensure storage of material under hygienic condition and meet good food manufacturing practice standards. Asking for quotation and their evolution. To conduct quality test of raw material and Packaging materials.
STORAGE DEPARTMENT: . occupation health and environment standards establishing internal review procedures to ensure compliance of applicable laws and regulation.
P state FACTORY ACT1950. Its aim to make safety and health working condition to the employees in the organization. Security alert around the factory / boundary wall area. At the time of any contingency. Watch the working condition like water facility. Companies own staff is engaged for security. the security officers appointed for different zoned & perform their responsibilities. food facility etc. Controlling and guarding the movement of guards at the gate. The company is also obeying the rule of U.Every department in the company has been equipped with fire extinguishers and first aid boxes. The working condition of the organization is obeying the FACTORY ACT1948. Their main functions are – • • • • • • • • Safety of employee and company` s property.
PLANT FINANCE EFFICIENCY
Schedule Production/ Procurement (purchase) Request for Quotations Quotations P.O(Purchase order ) Materials
PLANT ACCOUNTING G.N(Goods Receipts Note)
Quality Assurance Department Plant Finance
:-Accounting is the art of recording . and other association of persons and institutions in a certain prescribed rules and regulations on the basis of some definite system for fulfillment of certain objects.
. In simple. corporation. in a manufacturing unit that is established in ALIGARH. In simple Accounting is Book-keeping. PLANT mean a unit that is established in ALIGARH for manufacturing purpose. According to American Institute of Certified Public Accountants ( AICPA). firm. company. PLAN have so many meanings but here. Book-keeping is art as well as science of recording business transactions of an individual. PLANT ACCOUNTING is recording of information in monetary terms. Firstly.PLANT ACOUNTING
Plant Accounting comprises two words that is PLANT and ACCOUNTING. transactions and events which are of a financial character and interpreting the results thereof. classifying and summarizing in a significant manner and in terms of money.
1956 as under this Act it is compulsory for the companies to maintain accounting record. To satisfy the taxation authorities. To know the assets and liabilities of the Business at a particular date.
2-Other objects:• • • • • • • To know about the position of goods. To know about the progress or downfall of Business. To know as to what amount is to be paid to a particular person or what amount is to be received from a certain person on a particular date. To make estimates for future. To have detailed information about capital employed in the business.Analysis & Interpretation
5. To the case of the companies to comply the provisions of the Companies Act. To know the requirements of business at a particular time.OBJECTS OF PLANT ACCOUNTING
1-Main objects are:• • • • • To know profit or loss of Business for a certain period. To know about the errors and frauds of employee. To know the position of cash.
Journal or its Subsidiary Books
Purchase Return Book
Sale Return Book
Bills Receivable book
Bills Payable Book
2. Classification (Ledger) 3. Analysis & Interpretation
. Trial Balance 4. Final Accounts
Trading Account Profit & Loss Account Balance sheet
5.ACCOUNTING PROCESS AT A GLANCE
USERS OF PLANT ACCOUNTING INFORMATION
Following chart indicates various types of users of Plant Accounting Information that utilize information in best manner:-
USERS OF PLANT ACCOUNTING INFORMATION
Proprietor Management Employees
Record of a Unit which is established in Aligarh and It is Heinz Pvt. It is FMCG Company and the owner of this company is H.
.FUNCTIONS OF PLANT ACCOUNTING
Following functions are given below: To Record Business Transactions To Indicate Earning Capacity And Financial Position To Satisfy Govt. Officers To Comply Legal Requirements To Assist Management To Protect Assets To Depict True And Fair Position
PLANT ACCOUNTING is a Book keeping.Heinz. Ltd. i.J.e.
Request for Quotation
Checking by FSU
GRN in SAP by 103 movement
GAN by Quality Assurance Department
Material Passed / Approved Issue to Production
Invoice Finance Department Bill Process and Others Payment to Vendor
periods. 2. Planning is a main department of any organization. Check with shortage department.
Budget: . 3. needs and demand company purchase raw material.The budget provides a guidance regarding the amount of capital that may required for procurement of capital assets during the budget period. Most of the planning relate to individual proposals According to this production required raw materials purchase with this following procedure: Make a list for required raw material with the help of indent. values. After that they make a budget.The budget forecasts
the quantity & value of purchase required for
production. Make target according demand of product in market the manager select the target. Purchase be purchased. It gives quantity-wise. make budget. estimate required fund. Sales Budget: . 4. Production Budget: . Planning is decided the future needs and demand. periods. According to future plan.The budget of forecast total sales in terms of quantity. 1. items.The budget is based on sales budget. areas etc. Capital Expenditure Budget: .PLANNING DEPARTMENT
Planning & Control has become the primary function of management these days. money-wise & period-wise information about the materials to
. areas etc. It forecast quantity of production in terms of item.
4. forecasting etc. It states the estimation amount of cash payment receipt and the estimation of cash payment and the likely balance of cash in hand at the end of different period. Purchase requisition should be clear Required product name Product quantity Product quality Time Terms & Conditions
And send it in purchase department
Problem in Planning and Control Department: If the estimated product is more than requirement than they create a problem.If any disturbances that create a problem. If planning is not accurate about purchase of raw material. 6. If the target is not accurate like demand is more and supply is less than that’s create a problem and company going in loss. And make final purchase requisition. 3.It is a slip which contains required material list with other
specification ---1. In all the condition if the company bearing loss. Less coordination with other department. If any wrong details about payment procedure that create a delay in payment at a time.The budget is a forecast of cash position by time period for a specific duration of time. required time limit.
Purchase Requisition: .
. According to step by step they make a budget and make whole things and procedure in advance . 2. Cash Budget: . No accurate/proper idea about inventory material in factory store. Than they are not fulfill all payments or time and property. 5.5.
After planning in planning department purchase department’s duties and responsibility arise means purchase department forecast the demand of FMCG product and they check that material is available in stores or not .If the requirement of goods is available in stores so they can received goods from factory stores.PREPARATION OF INDENT. Misplacing in sending to planning department
. If H. which contains the required material with standard quality and quantity and time and make after singing of H.D not present than delay in signing.D of concern department it complete.
After issued the indent slip user send the indent in store and storehouse workers check the requirement of the user and issue the purchase requisition. Indent signed by H.
It is a slip. It the required material is not available in stores then they purchase department prepare indent Firstly we have to understand what is indent.O.O. Writing problem.D send to engineering on behalf of the indent slip.O. Misprinting. PR.
PROBLEMS IN PURCHASE DEPARTMENT:• • • • • Standard may be incorrect and wrong.
FLOW IN –INDENT. PO
USER INDENT STORES PLANNING DEPARTME NT PURCHASE REQUSITION
PURCHASE DEPARTMENT REQUEST FOR
. PR .
» Purchase department get quotation and then select it in following way» Purchase department may be negotiating with vendors on the basis of quotations. » This request for proposal sends to specific vendors. » Then purchase department make a purchase order.) when they accept or get purchase requisition that they make a request for proposal
Request for proposal: . (3.PURCHASE ORDER
Purchase department raised a purchase order (P. » When the vendor receipts this request for proposal than they send quotation .4Parties ).Request for proposal is a slip which contains information about
material quantity and required time for product. “It is a Document which is made by purchase department and sends to selected vendor or vendors”.
Quotation:-Quotation is a type or rate list of required material and make by the vendor’s
according to standards of required material. It contains – * Purchase order no * Vendor’s full name and address * Delivery address * Delivery time * Terms and conditions 29
.O. This is making for vendor’s quotation and this is a pre stage for making purchase order.
P. system of Heinz India Private Limited.A.* Standards * Product quantity
* Product quality * Specified time * Product rate * Tax code/ rate * Made of payment * Payment credit period * Payment place * Transportation name and address * And many other information » All the fields are properly checked by purchase department and send to vendors by post.
. » Purchase department make its entry in S.
Printing Cylinder Development. INSPECTION & REJECTION:
The goods shall be in accordance with the sample and/or satisfy our specifications fully. Die & mould making. tolerance is ± 5%. QUANTITY:
The supplier will be responsible for any shortage / pilferage / leakage at any point / time prior to receipt of goods by the buyer.TERMS AND CONDITIONS FOR PURCHASE ORDER
1. For Raw and Packing Materials. Materials received after the physical verification will be further subjected to Quality Inspection and the rejects on this account along with that rejected online while on packing will be intimated to the vendor for replacement or cost debited to the vendors account depending on the quantity of rejection. All goods delivered are subject to our inspection and approval before acceptance. 31
. and all goods rejected for inferior quality and/or failure to satisfy our specifications / samples / drawings will be returned at the supplier's expense. 2. the rejected materials will lie entirely at supplier's risk and responsibility. Replacement of such defective goods shall be dispatched with in 48 hours from the receipt of information of rejection. The supplier will have to make its own arrangements to remove the rejected materials at its own expense either from the buyer's factory or from any other place of storage. The supply quantities shall be strictly within the tolerance allowed and any quantity beyond this limit will not be accepted. without approval from Purchase Department. Prior approvals has to be taken in case of developmental works before commercial supply such as in Printing Plates making. etc#
3. Till they are not removed. For other materials tolerance is 2%. QUALITY.
B deliveries the vendor will be responsible for transit worthy packaging of goods to eliminate any chance of pilferages
5. If the consignment cannot be delivered within the delivery date mentioned in this order. quantity. c) Certificate of Analysis is a must along with the consignment for the applicable material without which. Buyer has the right to refuse acceptance of the material in case of delayed delivery. PACKING:
i.5% per week on the total value of the ordered items.O. DOCUMENTATION: Along with the consignment to the destination:a) Duplicate copy of the Excise Commercial Invoice / Gate pass cum Invoice depending on applicability of Excise Duty (Original invoice must be sent to person raising purchase order) b) Original copy of Challan mentioning the item. the buyer shall have the rights to impose a penalty & 0. DELIVERY:
In the event of delivery not being effected by due date mentioned in this order. the vendor can inform the buyer in writing 15 days in advance of the scheduled delivery date quoting reasons for such delays.
6. if any.4. If the reasons are found to be acceptable. the consignment is liable for rejection. 32
. The net weight/length/numbers and batch number/item name should be marked clearly and conspicuously on each container / package iii. extension of delivery time will be granted. rate and Purchase Order no. Goods must be securely packed to withstand all hazards up to the destination. otherwise we will make alternate sourcing arrangement. The buyer also reserves the right to make alternate sourcing and the cost differential. In case of Ex-Godown / F. ii. along with the additional transportation costs will be debited to the vendor's account.
8. In the event of your subsequently . PENDING ORDERS:
. e) Duplicate copy of the Road permit / Waybill duly endorsed by the sales tax authorities at the check post.
All designs / drawings / patterns / artworks etc provided by the buyer will remain sole property of the buyer and shall be maintained securely by the vendor and shall not be used for any other purpose than authorized by the buyer.obtaining a refund of the whole or any part of such taxes. These are to be returned to the vendor immediately on completion of the work without tampering. concerned tax authorities for any reason whatsoever. you shall be liable to forthwith refund to us such amount of refund without our having to make any claim on you in this behalf.d) RR/AWB.
7. STATUTORY & LEGALITY:
Whenever the prices charged by you includes excise duties whether or not shown separately in the invoice you shall furnish a Gate Pass clearance invoice in support of such payment of any other permitted document in accordance with the excise law to enable us to claim set off of such amount under the Modvat CENVAT scheme wherever available or failure to furnish such document will entitle us to deduct the appropriate excise duty amount from your payment. JURISDICTION:
Any dispute arising out of this contract shall be subject to the Jurisdiction of courts having jurisdiction over the area where the buyer's registered office is situated.LR in case of Domestic vendors clearly mentioning the consignee / destination and the company name. duties etc. The materials to be supplied under this purchase order shall comply with all the local legislation and regulations. where ever road permits / waybills are applicable f) The equipments and spares are to be guaranteed / waranteed for the maximum period from the date or receipt and shall be replaced along with replacement cost in case of premature failure within the warrantee/guarantee period.
» Pests control and infestation control. has F. The Co.. » To provide fumigation to the raw material and packed Products.U. » Maintaining temperature for different goods. Godown and Other places in the factory.S. machines.
ROLE OF FSU
F. Its functions are as follows: » Cleaning the production units.Delivery challans/ invoices should be raised as per pending orders.S. which are mainly the food products. Separate challans / invoices should be prepared for separate pending orders.U (Factory Service Units):ALL MATERIALS
FACTORY SERVICE UNIT (FSU)
Heinz has a wide range of products. 34
. which mainly looks after the hygiene delivery of goods INTO the factory is located. » Maintaining account for incoming and outgoing materials.
QUALITY ASSURANCE DEPARTMENT:• It is a quality assurance department that checks specified quality of product.» Examination of every material Truck or Vehicles carrying material is conducted by FSU according standard parameters to curb infestation.
• And if reject than given code is 124 and product is returned back to vendor. » chamber is a place where infested material is made disinfested. • Goods are accepted after only checking the of quality department. • Any rejection in quality assured product is going on vendor and given code is 122.
Factory receive note 103 Goods Received Acceptance Note 105 Finance
. • If the product is up to mark with required quality than that check and give the code is
Its main functions are: -
Maintenance of quality assurance department and lab equipments. keeping focus on needs of customer by establishing and maintaining proper facilities necessary for controlled production consistency in a sanitary manner . HEINZ INDIA PRIVATE LIMITED is committed to: • Procurement .
Establishing and Maintaining appropriate operating and monitoring procedure necessary for controlled production and every person is responsible for product integrity and safe guarding quality environment competent to carry out his responsibilities. Check invoice for quality department and factory receive note. Development . production and Marketing of safe clean wholesome foods of high quality . occupation health and environment standards establishing internal review procedures to ensure compliance of applicable laws and regulation. 36
Achieving high safety. then the quality assurance department will prepare GAN . so as to ensure that customers confidence is generated and maintained consistency. After that information record is in Factory stores.
ROLE OF QUALITY ASSURANCE DEPARTMENT
When the material enter in the company firstly cleaned in FSU and then match the sample with bulk quantity by the Q/A department. if the bulk quantity is according to specimen and the term and condition.
Form 38/ Form C & any Laves Form.
PROCESS OF WORKING IN FACTORY STORE OF HEINZ INDIA PRIVATE LIMITED
Firstly Factory Store receives the material from the Gali house and match the material from Purchase order. if infested : -
This slip is given when material is returned to the supplier due to
Now material reach to the factory store & factory store check all the document As : Excise Invoice.It shows the clearance of material from PCI. PCI (Pest Control India) check the material to find out the consignment. is infested or not an issue White /Red /Green slips.•
To conduct quality test of raw material and Packaging materials. Goods Carrier Note In Factory Stores material is unloaded in designated place /Godown : 37
GREEN SLIP: infestation. Material is fumigated in quartine chamber .
In case of rejection.
According to the nature of the material. Factory store make 3 copies of GRN : For Purchase department. the amount of rejected material is adjusted in other Acceptance Note) and make the entry of this in SAP and give a code to this entry in
consignment or makes Credit Note for supplier. If
material`s quality is according to the purchase order and everything is ok .
Factory Store checks the material `s quality at the time of receiving of Goods. If the quality of material is not according to our standard . it is directly sent to the supplier. Factory stores make GRN ( Goods Received Note ) and make the entry in SAP software and give a code to this entry in 103 movement.
. In case of Raw & Packaging material ..e. after checking & receiving the material by If the material is according to our standard. For supplier.quality Assurance Department having a right to reject this and make the entry of rejection in SAP & give a code to this entry in124 movement.
Factory stores make the GRN for : Raw Material & Packaging material. For Self. Quality Assurance Department does not
check the goods i. Quality Assurance Department check the quality of the material : 105.
In case of General Consummerable Goods. they make GAN (Goods
Factory stores . General Consummerable goods. According to the quality of the material.
HEINZ INDIA` s store Dep. For Factory Stores. from factory stores . does all the transaction in MIGO.
. make the Material Requisition Slip and send to the factory stores. company make the Material return report For supplier.. If the material is returned to the supplier . Any damage / Shortage is recorded in consignment.e. When it is not finished. note is written on delivery
challen of the supplier and company is obtained a damage / shortage certificate from the transports / driver of the truck.CREDIT NOTE: . Material in excess of the capacity is returned to the supplier / has to be seggrated
for fault are diverted to the city / Godown.
If the material and other inventories send to other heads / dep.It is note which is made for supplier to return the amount and in case of
excess of material. In case of damage / Shortage. company`s planning & stock control Department is
informed for the insurance survey before making GRN. Foreman of dep. which material is come first in stores. For Purchase Dep. For Account Dep.
and make 4 copies of this: HEINZ INDIA PRIVATE LIMITED use FIFO (first in first out) method of pricing of material i. In this condition supplier is Creditor of the company. other purchased material cannot issue. is issued first.
Order quantities do not match with purchase order. Tax code problem. Typing Problem. Data is not entering at the time of receiving of material. Make entry at the time of receiving. Connectivity Problem. Improve the system efficiency of this system.PROBLEM IN FACTORY STORES
Material comes according to lot size. Expenditure control procedure. Factory manager having limit but increase its limit size. 40
. Misprinting problem.
SUGGESTION FOR FACTORY STORES
Material purchase after making Purchase order. Vendor name is misprint and unclear.
A. 5. 3.P. Application software. 41
.A. Easily handle. It is based on standard costing. The using S.A.P. 1. Company makes accountability and responsibility and employees do their work very quickly. Advantage of S. 2. (System.P. Aligarh. The company used its 40B version. was developed I 2000 in Heinz India Private Limited.P. Warning system. Its monitored and controlled by head quarter in Mumbai. 6.. S. All the clerical work done through S. analysis and process). The company used very advance.
SYSTEM ANALYSIS AND PROCESS (SAP)
Heinz India Private Limited is a full computerized company.A.A.P. Easy track of all locations Losing paper work. 4. Online. Fast service. name S.
Nothing is deleting only edit. 42
. while Heinz India Private Limited is full-computerized company and it use SAP as recoding tool for all the information and data with specified SAP number. It is monitored and controlled by head quarter in Mumbai. 9. Aligarh. verification User Department Finance Department Goods Receivable Note (GRN) Goods Acceptance Note (GAN) Rejected Goods/Material SAP Entry 103 105 124
103: Material supplies by vendor to company is check for the quantity at the time of receiving of
goods by stores department and makes goods receivable note (GRN) and make an entry in SAP system of the received material / assets and it provided a code in SAP as 103. Full data available. 8. SAP was developed in 2000 in Heinz India Private Limited. Stores Q.7..
Example of SAP Entry:
SAP as Recording Tool in the Company
System Analysis and Process (SAP) is ERP software package. The Company used its 40B version..
A. The Excise Credit also provided to the goods/material in SAP with 105 at the time of making GRN. MIRO is a transaction by which all the entries are to be made in the SAP. Cr. department to check the quality of received
goods according to the standard of the company and then makes a goods acceptance note (GAN) and makes an entry in SAP with code 105 and Rejected goods which has not standard quality has coded in SAP with 124.
ENTRY PATTERN OF ACCOUNTS IN THE COMPANY
All the entries of accounts of the company are processed through MIRO. Turbine) → Note:-In SAP System the entry pattern of accounting is done with the symbol of Negative (− and ) positive (+) for credit and debit respectively.g. • WIP → Dr. Dr.105: After receiving the material it provided to Q. Cr.
Final Stage (Ready to Use) Cr.) → (− ) 43
→ → →
Dr. Cr. • Assets (e.
Transaction Pattern in MIRO is as follows:
User/Engineering Department • WIP (work in progress) • GR/IR • Basic Excise Duty • Aligarh Cenvat Clearing ↓ Finance Department • GR/IR • Aligarh Cenvat Clearing • Vendor ↓
→ → → →
Dr. Dr. it defined as follows:Credit (Cr.
or der In voice
C re ation of se rvice specifications S ou rce determ ination V e ndor selec tion B id invitation process (iss ue o R FQ s f ) E nter/com pare quotation s
Invoice verifica tion S ervic e acceptance E ntry of services pe rform ed P urchas e orde r m onitoring
P urc hase order
© SA P AG 1999
P a ym ent
S tep s in th e P rocurem ent o f E xtern al S ervices
D e term ination ofre quire m e nts Kar l E instein
U ser depa rtm e nt P M P lant M aintena nce P S P roje ct S ys te m S M S ervice M anage m ent
B an k tran sfe r 9.Debit (Dr.
O.PAYMENT SYSTEM OR PROCEDURE
PLANNING AND CONTROL DEPARTMENT PURCHASING REQUISITION PURCHASING DEPARTMENT REQUEST FOR PROPOSAL VENDORS VENDOR MATERIA L FACTORY STORE Q/A DEPARTMENT 103 105 QUOTATION S PURCHAS E ORDER
INVOICE FINANCE DEPARTMEN T BANK PAYMEN T
CHEQU eEE B.E RTGS/N EFT
.PAYMENT PROCEDURE IN HEINZ INDIA PVT. If margin of rates is hedge in vendor’s quotation than purchase manager ask to vendor for this difference. After that this indent goes to H. Purchase order is a slip. He/she may be select 2 or 3 quotation with small quantity and part purchase of product and finally make a purchase order.Makes an indent slips for requirement of product with full description of quality. Planning department check the material in store and estimate the future requirement of product. He/she send a chalaan list with purchase4 order to wards vendor. the vendor sends the quotation – in quotation clearly mention the rates of every product with standard are present they also include tax rate and transportation rates of product. machine part etc. which contains the whole description about quality.D. Purchase manager select any quotation. rate and time limit and also includes all taxes and extra charges of transportation. What is the difference in product with other? And after whole comparison he/she selects the quotation. LTD
Firstly the direct user of product. of the same concern department and after accepting and signing by H. Make a purchase requisitation in which whole description of required product is present with stander quantity and specifically mention time limit.D. According to company demand of product. quantity and standards.O.O. Purchase requisitation goes to send purchase department. Purchase department make a request for proposal and send to all different and specific vendor for quotation. this slip goes to planning department. He/she may be negotiating on this rate list with vendors. which is suitable as rate and standard by comparing in all quotation. quantity.
If all are correct and right then they clear bill for payment with the help of different modes and ways basically all raw material purchase by bill of exchange and other payment is done by cheque.Vendor supplies goods towards a delivery place. quality department check the
a right to reject and on acceptance of that goods and make a reject material entry in SAP system with the code of 124
Goods receivable notes
Q. Aligarh used a new technique of payment is electronic fund transfer or retail time gross settlement. Firstly goods check the product quantity at a time of receiving or goods and make goods receivable notes (GRM) and make an entry in SAP system of the product and gave a code to this entry is 103. If the product is according to our standards than they make a goods acceptance notes (CAN) and make this entry in Heinz India Private Limited SAP system and gave a code is 105.
. If the material is not up to mark of our standards than quality department having ■ : After checking and receiving of material /goods by factory store. In Heinz India Private Limited. quality of product. A. factory store and quality assurance department with invoice. Finance manager check all details tax and code. which is done by purchase department. Department
Goods acceptance notes
After that finance department manager/ person checks all entry.
Management Level Managing Director Vice President/ Director Vice President General Manager Grade I Grade II Grade III Grade IV
.00.should be signed by the functional head and the Managing Director.000 Upto Rs. Payment of cash for services received should preferably be avoided. 10. Service Agreement/ Contracts whose total value exceeds Rs. 50.50.50. professional fees. 10. warehouse/ office rent.00. 7.000 Upto Rs.000 Upto Rs.
The limits for authorization of purchase order of services areBranches Over Rs.00. Any exceptions should be approved by the Vice President Finance and CFO.00.000 Upto Rs. 1.00.or more.00. 5.10.SERVICE BILLS
• • • • • •
Service expenses will include expenditure on freight . 1.000/.000 Upto Rs. 5. Purchase of all services should be done from approved vendors and routed through the purchase department.000 Upto Rs. 3. 5. repair & maintenance.000 HO & Factory Over Rs. 25. 5.000 Upto Rs. A purchase order should be raised for services of value Rs. 5. courier charges etc.000 Upto Rs. co-packer charges.00.00.000 Upto Rs. Payment for services should be made by cheque only against original bill/ invoice / cash memo and supported by purchase order.000 Upto Rs.000 Upto Rs.00.5000/.000 Upto Rs. 5.
Managing director authority for over 50. Vice president 7. No fresh advance should be given to the same vendor until previous advances have been settled and accounted for any acceptations solved by Financial Manager and Directors. Grade 1 9.ADVANCE PAYMENT
• Fuel.00.with authority of planning manager and general manager.000 advances payment.
.The advance payment request prepared by the procurement Department Should be signed by General Manager-Supply . MD 5. authority limit over 50. Advance payment for availing cash discounting on purchases of coded raw and packing material and service should be paid as per instruction of procurement department .00.00.000 up to 5.
10. 1. 00. Generalmanager 8.000 up to 50. Spare etc . Sugar capital machinery. 000
Every quarter end list of pending advance should be prepared by the finance department and circulated at their respective location.000 upto10. All such advance should ideally be adjusted in the same month in which they are should preferably be approved by the finance controller. 3. The concerned department should take appropriate follow –up action to settle the advance amount. 11. Vice president/Director 6.00.00.000 up to 25. 2. Chain and financial controller besides authorized by appropriate levels of management as per applicable limits. Management level 4.
50.50. Coded items include all ingredients. Intermediate products and fuels.000 over 30 lakh 30 lakh 30 lakh over Rs.00. Director Vice president General president Grade 1 Grade II Grade III UP to 30 lakh 30 lakh 30 lakh 30 lakh 7.12.30.Coded itmes include all items other than ingredients and packaging materials
.000 5 lakh 5 lakh 1 lakh 50 thousands.000
Affiliate purchase include finished product purchased for high sea sales.000 7.000 Affiliate Purchase over 5.000 5. The authority limits for approval of purchase order is given below :Management level Coded item M.50.00. non-coded 5 lakh 5 lakh 30 lakh 15 lakh 7. Packing materials.D. Non.00.
CONSEQUENCE OF DELAY IN PAYMENT
• Less trust of vendors • Stop production • Delay in supply product • Take more cost • Old and good vendor do not want to retain a business relations • Less in good will in market • Mostly work done on goodwill
o Advanced payment o Credit product o Any mishappening o Good relation o Negotiation in price of production o Profit making effect
Vendors do not want to supply product they want advance payment 51
If the payment amount is less than purchase order amount than finance manager for payment of this invoice. vendor name delivery address.
Individually and properly check all the entry by finance manager in detail before clearing a payment.P. originality of invoice. address. date.A.•
Money block in advance payment
More working capital requirement
May be delay in payment and delay in supply and goods and this stage production will be stopped. if they require material is not present
POINTS RELATED WITH PAYMENT SYSTEM
Check the entry in S.. by purchase department factory store and quality assurance department
Match with invoice which given by vendor with goods Check details like tax code.
And if the invoice payment amount is more than purchase order amount than finance manager does not allow for payment of this invoice. purchase order no.
Delivery place. Purchase date d. g. Include all taxes k. It should having proper elements a. It is important for payment and other work. i. Delivery date c. Send by the vendor when they place goods 3. Vendor Name f. Transportation name and address h. Specified product name. And other terms and condition 4. It should be original 2. photocopy or duplicate
If not having any one of them element which is shown above. j. Purchase order no. b.
PROBLEM IN INVOICE FOR DELAY IN PAYMENT •
If invoice is not original.
If payment rate is more than purchase order rate
. Rate e. All the entry is correct and clearly mention. It is a slip which contains the const/ rate invoice is a type of bill and send by the vendor/ supplier.It is a legal document for any company. Company name. Its characteristic are 1.
If having any incorrect entry
DEPARTMENT RELATED WITH PAYMENT SYSTEM
Engineering/ User Department ↓ Planning Department ↓ Purchase Department
generally payment through at PAR Cheque.↓
Factory Store ↓ Quality Verification Department ↓
Finance Department ↓ Payment
MODE OF PAYMENTS
After verify the invoice /bill the finance manger has right to make payment with different mode of payment.
According to Income Tax Act under section 40(a) (3) the payment through the cash of not more than Rs. 20000/-.
Cash payment is avoided in Heinz But still used @2%
o In less amount o Urgent payment
Cash: • • •
Cash payment means direct payment in monitory terms.E.PAYMENT
special or restricted In case of not negotiable crossing the title of the transferee can be better than of transferor
A cheque may be crossed by the drawer.• •
Cheque is a bill of exchange drawn on a specified banker and payable on demand (see 6 of negotiable instrument) It is species of a bill of exchange with two additional qualifications o It is always drawn on a specified banker o It is always payable on demand
• • •
90% payment is done by Cheque in Heinz India Private Limited (Aligarh unit) Crossing of Cheque: When a Cheque bears across its face two parallel transverse line. or the holder or the banker
. the Cheque is said to be crossed
• • •
The payment of a crossed Cheque can be obtained only through another banker The crossing may be general.
Bill of Exchange:
A bill of exchange is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to order of a certain person or to the bearer of the instrument (Section 5 of negotiable instrument). Parties to a bill: There are three parties to a bill of exchange 1.Drawer 2.Drawee 3.Payee
Drawer: A person who gives the order to pay or who makes the bill is called the drawer.
• • • •
Drawee: The person who directed to pay is called the drawee. Acceptor: When the drawee accepts the bill, he is called acceptor Payee: the person to wqhom the payment is to be made is called the payee Bearer: When the payee name is in a bill is a fictitious or non existing person, the bill is treated as a payable to bearer
In some cases, the drawer and the payee, or when a principal draws and the drawee may be one and the person.
• • •
The drawer of the payee who is in possession of the bill is called the holder. The holder must present the bill to the drawee for his acceptance. Indorser: When the holder indorses the bill, note or cheque to another he is called the indorser.
Indorsee: The person to whom the bill note of cheque is indorsed is called indorse 58
Essential element: o It must be in writing o It must contain an order to pay o It must be unconditional o It requires three parties - drawee, drawee, payee o It must be signed by the drawer o The sum payable must certain o It must contain an order to pay money o The formalities relating to number date place and consideration, through usually found in bills are not essential in law
A bill as originally drawn cannot be made payable to bearer on demand.
• Normal format of bill of exchange.
Bombay June 10/2007
Three months after date pay to Ram or order the sum of five thousand rupee, for value received To Sham 235, Subash Stamp Delhi -110006
. EFT(Electronic fund Transfer):
It is a modern technique by which money send one bank to another bank with the help of internet in a short period of time. This technique is implemented by Heinz India PVT.LTD. It is a easy and secured way of transferring money. Less time consuming. In this way we send the information of payment to bank and bank transfer the money in vendor’s account directly.
RTGS(REAL TIME GROSS SETTLEMENT)
• It is same like EFT but having a small difference is that – it is used when the company’s bank and vendor’s bank both are different ,then a reputed bank make as a mediator in between two bank and help in transferring money this process is called RTGS. • Company make payment all over India by the help of this new technology.
REPORT FOR CONTROL
Cash report, providing a comparison of actual developments with forecasts figure; are helpful in controlling and revision of cash forecast on a continue basis. Several types of cash report may be prepared. The importance ones are: Daily Cash Report: The daily cash report shows the opening balance, receipts, payment and the closing balance on a daily basis.
Daily Treasure Report:
it has to sale its marketable securities more frequently than if it holds a large cash balance. collection and disbursements must be properly monitored. This helps in consolidating funds at the head office. Hence the trading or transaction cost will 61
Optimal Cash Balance:
If a firm maintains small cash balance.
Control of Payables: By a proper control of payables a firm can conserve its cash recourses. Promoting Billing: Often there is time lag between the dispatch of goods and provisions of service and the sending of bills.
Monitoring Collection and Receivable: To enhance the efficiency of cash management. The actual are compared with budget figures and variance is calculated. marketing file securities debtors and creditors. Monthly Cash Report: This report has shown the actual cash receipts and payment on a monthly basis. This involves the following— Payment should be made only as and hence they fall due. Arrangements may be made with suppliers to set due dates of their bills to match with the company’s period of peak receipt. Payables and their disbursement may be centralized. reducing productive bank balance at the regional office and investing fund more effectively.An amplification of the daily cash report. the daily treasury provides a comprehensive picture of changes in cash. By preparing and sending the bill promptly a firm can ensure easier remittance.
However. Every document relating to the payment of cash needs the official authorization of the account executives. Absentism of employees Holidays Supplied goods are not approved by the quality assurance department at a right time System failure Supplier does not give proper document Sudden increase in the price of material during the course of transaction During the period of account closing 62
. v. at the other end of the spectrum is the investment in equity shares. at the other end of the bank.
Cash management In The Company:
This Company follows the centralized management of cash.
Option For Investing Surplus Funds:
A company often has surplus funds for short periods of time before they are required for capital expenditure. iv. the opportunity costs balance increases.
REASONS FOR DELAY IN PAYMENT
After analysis of plant accounting.trend to diminish if the cost balance becomes large. or some other purpose. iii. vi. lone. virtually a risk free investment. These funds may be deployed in variety of ways. vii. At one end of the spectrum is the term deposit in a bank. virtually a risk free investment. we find out various reasons for delay in payment – i. ii. repayment. which can produce highly volatile returns.
Company should laid such a policy strictly which ensure the payment on due date. which are having goodwill in the market. Instructing the suppliers for sending the proper document while placing the order. Minimize the account closing period. Maintain the adequate cash balance.
Non availability of adequate cash Work load Shortage of staff Misprinting and typing problem Non-following of the payment procedure Wrong entry in tax code.
1. 3. Assign another employee during the absenteeism of a regular employee. 7. xi. Minimize the paper work.viii. x. ix. 2. 8. Laying at flexible policies according to the market condition. 4. delivery in purchase order and in invoice. Conducting the special seminar for main supplier. 5. Train employee relating to payment system. xii. xiii. Choosing suppliers. 6. 10. 63
21. I have observed that the company (Heinz) effectively utilized the fund efficient operations of manufacturing that include all commercial activities like purchase of raw material. 15. Purchase order is send by the internet. salary. 17. payment of taxes. I have thoroughly examined all the aspects regarding payment system and have drawn following conclusion: 1.11.
The Heinz India private limited is one of the leading food companies in the world. Company gets more quotations and having different rates for more choice for selection to select a perfect quotation. Everyone gets benefit to see and send its quotations. Department is better coordinated with each other. 18. Try to modify the software. Company should launch the internal website for its Indian branch which should include detailed information about Aligarh branch as well as other production unit. 64
. Electronic fund transfer does payment and real time gross statement than it should fast rather than cheque and bill of exchange and transportation cost will be reduced. 12. Company invest his extra money in stock exchange and other place as for their need and demand—short term as well as long term investment or complete payment on discount rate of bills. 16. It has solid financial position. 13. Request for proposal is on web page of Heinz India Private Limited. production etc. 14. The company consists of latest technology to maintain best quality. Product sale is also handover in Aligarh unit may be the use of on line trading and traditionally. 20. 19. Better coordination among the entire department related to payment system.
including qualitative details and situation for fixed assets. 4. 6.
FORMAT OF INVOICE
. 5. P. Some time paper work makes a problem and it is also reasons for delay in payment. The company is maintained proper records showing full particulars.2. The entire employee related to payment system is well trained. Company gave full government tax and other duty with complete honesty. is a very good software programme and it makes payment system very easy and save the time. S. The company has kept proper book of accounts as required by law. A. 7. 3.
FORMAT OF MATERIAL IDENTIFICATION SLIP (for sampling)
. ALIGARH M/s…………….K Extraneous material…………………………… Transshipment Yes/No.. Signature Date: Please note that material……………………………………. ALIGARH To : FACTORY STORES.by transporter M/s……………………………………….received from
Truck/Material Clearance Slip
From: PEST CONTROL UNIT.White slip
FS-F-XX Rev No.Dispatched by Truck No………………………………………..…… ……………………………………………by Truck No……………………. Has been checked and found O.
Accounting Standards (AS 6 and AS10)
Company Web sites: www.
Data from the Past Records of the Company.gov.heinzindia.icai.
Other Web Sites: www.co
Amount Dr.in www.•
Company Records & Manual.heinz.in.
Cess Payable A/c To S.00 505000. Edu.00 1613. Dr.00 41612.00
1091816. Dr. A/c To CVAT Payable A/c To Edu. Dr.00 808.00
546612. Cess A/c To PLA A/c (Being transfer the tax amount in their account) PLA A/c To Bank A/c (Being Total
41504. Cess Payable A/c S.00 1091816.00 404000.Cess A/c To GRIR A/c To CVAT A/c (Being Goods receive in factory) GRIR A/c CVAT A/c To Vender A/c (Being entry create liability of vender) Vender A/c To Bank A/c (Being payment to vender) Buyer A/c To F.00
Dr. Dr. Cess Payable A/c To BED A/c To Edu.00 404.00
Dr.00 404000.G. Cess Payable A/c (Being goods sold to the buyer) Bank A/c To Buyer A/c (Being Amount received by buyer) CVAT Payable A/c Edu.00 41504.00 1613.00 806.
80696.00 546612. Edu.E.00 546612.00 404.00 80696.
Dr. Cess A/c To S.08/05/08
Inventory A/c BED A/c Education Cess A/c S.00 41504. Dr.00 108700. Edu.