Sap tally bills consession

regarding entries regarding d expenses f al d branches f indiabulls in excel n posting in sap...... checking al d bills..........finding errors....... n 2 see everything is done within d rules f d co... i.e. d relaxation.........
APAR industries is an electrical and chemical industry…… Produce products like aluminum conductors and some oils…. PROJECT ON EXPENSE MNAGEMENT documents…..verify…..dupication…..feed excel……bdc(batch data collection) finance manager……

A summer training report On

EXPENSE MANAGEMENT AT INDIABULLS , GURGAON
Submitted in the partial fulfillment for the award of Master’s degree in Business Administration

Under the guidance:
Mr. Atul Gupta Miss Parul Bansal

submitted by:
Archana MBA

Indiabulls financial services limited
Indiabulls Financial Services Limited (IFSL) is one of the India’s leading Non-Banking Finance Companies (NBFC) which is primarily into extending retail and commercial loans and distribution of third party products.The lending business of IFSL is rapidly growing with loan assets (including assets managed by the company) of over Rs. 10000 crores as of March 31,2008 .IFSL, together with its subsidiaries and associate companies offers a varied product suite to its customers in the areas of consumer finance , vehicle loans , small business enterprise loans , home loans , loan against properties , commercial credit , loan against shares and providing loans toward Initial Public Offering ( IPO) financing for customers , etc. Indiabulls Financial Services Limited was incorporated on January 10, 2000 as M/s Orbis Infotech Private Limited at New Delhi under the companies Act,1956 with Registration No. 55-103183.The name of the company was changed to M/s Indiabulls Financial Services Private Limited on March 16,2001 due to change in the main objects of the company from Infotech business to investment & Financial Services business.It became a Public Limited Company on February 27,2004 and the name of company was changed to M/s Indiabulls Financial Services Limited. IFSL shares were listed on Indian Stock Exchange in September 2004.In 2006, pursuant to a restructuring and reorganization of its businesses, the company demerged its real estate business into a separate listed entity , Indiabulls Real Estate Limited ( IBREL ).In 2007, pursuant to a restructuring and reorganization of its businesses , the company demerged its securities business into a separate entity , Indiabulls Securities Limited ( ISL ). Indiabulls Financial Services Ltd ( IFSL ) is registered with Reserve Bank of India ( RBI ) as a Non-Banking Finance Company ( NBFC ) and categorized under the systemically important category of NBFCs.

Growth Story of Indiabulls

2000-01

Indiabulls Financial Services Ltd. established India’s one of the first trading platforms with the development of an in house team.

2001-03

• •

Indiabulls expands its service offerings to include Equity, F&O, Wholesale Debt, Mutual fund, IPO distribution and Equity Research. Indiabulls ventured into Insurance distribution and commodities trading. Company focused on brand building and franchise model.

2003-04

2004-05

• • • •

Indiabulls came out with its initial public offer (IPO) in September 2004. Indiabulls started its consumer finance business. Indiabulls entered the Indian Real Estate market and became the first company to bring FDI in Indian Real Estate. Indiabulls won bids for landmark properties in Mumbai.

2005-06

• • • • •

Indiabulls has acquired over 115 acres of land in Sonepat for residential home site development. Merrill Lynch and Goldman sac, one of the renowned investment banks in the world have increased their shareholding in Indiabulls. Indiabulls is a market leader in securities brokerage industry, With around 31% share in online trading, Farallon Capital and its affiliates, the world’s largest hedge fund committed Rs. 2000 million for Indiabulls subsidiaries Steel Tycoon Mr. LN Mittal promoted LNM India Internet venture Ltd. acquired 8.2%

Saurabh Mittal Chairman & CEO Vice-Chairman Director . is included in the prestigious Morgan Stanley Capital International Index (MSCI). Indiabulls has received an “in principle approval” from Government of India for development of multi product SEZ in the state of Maharashtra. Dev Property Development Plc.8 acres of land from Delhi Development Authority through a competitive bidding process for Rs 450 crores to develop residential apartments. KBD has acquired 35. Indiabulls ventured into commodity brokerage business. 3. Farallon Capital has agreed to invest Rs. Indiabulls Financial Services Ltd. Rajiv Rattan Mr. Sameer Gehlaut Mr. 2. 6. Sr. has subscribed to new shares and has also acquired a minority shareholding from the Company. Name Designation 1.stake.440 million in Indiabulls Financial Services Ltd. Mr. Kenneth Builders & Developers (KBD).. Management of IFSL The company was promoted by three engineers from IIT Delhi. • • • • • • Entered in a 50/50 joint venture with DLF.No.

Sachin Chaudhary Mr. Tejinderpal Singh Miglani Mr. Mukesh Garg Mr. SK Vishwanath Mr. Ashok Sharma Designation Chief Executive Officer Chief Operating Officer Chief Finance Officer Insurance business head Commercial credit business head Head of Underwriting for Mortgages Head of Commercial Vehicles Business Part of central strategy team Operations Head Risk Head Collection Head Collection Head Chief Administrative Officer Chief Technology Officer Group Officer . Rajesh Menon Mr. Gaurang Chandarana Mr. Gagan Banga Mr. Ajay Gupta Mr. DN Balasubramanian Mr. Manish Rai Mr. Anil Malhan Mr. Omdutt Sharma Mr. Kamal Batra Mr.Key Executive Officers Name • • • • • • • • • • • • • • • Mr. Amit Talgeri Mr.

P.V.54 3. 5. 3. Citigroup Global Capital Markets Mauritius Private Limited CLSA(Mauritius) Limited LNM India Internet Ventures Limited Farallon Capital Intitutional Partners L.94 2.05 2. Name of the Shareholder 1.Shareholding pattern of the Company ( as of the Company ) Sr.24 . Shareholding Percentage 14.No.97 3. Farallon Capital Partners L. 9.28 3.P.84 7.41 7.66 2. 10. 7. Sameer Gehlaut Rajiv Rattan Saurabh Mittal Oberon Limited Merill Lynch Capital Markets Espana S. 2. Goldman Sachs Investments (Mauritius) Ltd. 8. 6. 4.S.A.92 3. 11.49 4.

000 9.667.109.936. Inc.394 30.502.380. OTHERS TOTAL 2.855.075.918 252.091.69 1.376.959.386 22.507.861.593.12.353.660 7.854. 14.000.04 1. Quantum (M) Limited Orient Global Tamarind (Mauritius) Limited Deutsche Securities Mauritius Limited Smallcap World Fund. 2008 As at March 31.) Sources of Funds Shareholders' Funds Share Capital Share Warrants (Refer Note B 5(b) of Schedule 18) Reserves and Surplus Loan Funds Secured Loans Unsecured Loans Deferred Tax Liability (net) (Refer Note B 18 of Schedule 18) Total Application of Funds Fixed Assets Gross Block 2.895.005.000 108.900.69 36.039.164.02 100 Financial Results of Indiabulls Financial Services Limited Indiabulls Financial Services Limited Balance Sheet as at March 31. 2008 Amount (Rs.975.908.510 183.033 .22 2.301.992 524.803.) 3.150.918 73.572.595.697 28. 13. 15.983 140.844.696.257 As at March 31.861. 2007 Amount (Rs.696. 16.091 35.314 13.810 134.726 8.124 1.

609.713 14.278. Loans and Advances Sundry Debtors Cash and Bank Balances Other Current Assets Loans and Advances Less: Current Liabilities and Provisions Current Liabilities Provisions Net Current Assets Total 93.734 140164667992 75.104.303 69.152 743.427.093.054 7.725 20.189.828.378.698.630.400.044.431.125.080.045 449.422 7322482621 56.859 77.000 - 15.213 18.126.505 14809844853 22376854510 .509.862.438.015.713.453.977 11.320 136.374.115.358 184364862 1021497643 1.Less: Depreciation / Amortisation Net Block Capital Work in Progress/ Capital Advances Investments Deferred Tax Assets (net) (Refer Note B 18 of Schedule 18) Current Assets.106.343 4.656.000 1.992.909.403 16.448.308 167.740 148.859.044 431.011.205.645.697 187.138.707.258 3.614 73.517.242 16.911.

INTRODUCTION OF THE STUDY UNDERTAKEN .

Expense management .

it reduces employee productivity and can translate into unnecessary costs. define audit limits. Full integration with core financial systems streamlines the expense processing function. you can streamline and control the entire expense reporting process – including expense entry. Expense management improve accuracy and control over employee expenses Depending on your company’s needs.With Expense Management. reliability. your employees may have to comply with multiple expense reimbursement policies. and establish expense receipt requirements. managing. Expense Management automates the process of entering. reimbursement. and reporting expenses incurred while doing business. You also save time and further improve the accuracy of expense tracking by applying employee credit card transactions directly to expense reports. approval. The system captures complete and accurate data at every step and database-driven workflow eliminates misrouted or lost documents. As a result. you can increase compliance with corporate expense policies and ensure the accurate reporting of employee expenditures. giving you greater security. and auditing expense reports. your employees enjoy prompt and accurate payments. approving. and document control. each one outlining different rules on tracking. An automated system for managing your employee expenses— supported by strong internal controls—can save you time and money. eliminates the cost and errors associated with duplicate entries.Manual time and expense reporting can be inefficient and inconsistently controlled. Employees and managers are notified by email of documents that require their attention. Expense Management allows you to monitor and track spending with preferred suppliers and leverage this information to negotiate improved travel-related contracts and benefits for your employees. and provides faster cycle times for employee reimbursement. and audit—and ensure the timely and accurate reimbursement of employee expenses. Expense Management allows you to set up multiple expense categories. . by using built-in control features. And.

Feature/function Highlights • • • • • • • • • • • • • • • • • • • Processing of business expenses Consistent user interface Simplified data entry for expense reporting Configuration reimbursement process steps User –defined per diem functionality Workflow approvals Automatic exception notification Auditing capabilities User-defined policy definitions Multiple employee authority Individual or group employee profits Customized reimbursement policies Location specific policies Multicurrency capabilities Ability to charge to multiple business units VAT calculations Ability to import expenses from offline reports Direct employee reimbursement Direct credit card company reimbursement . you receive an immediate error notification so that you can proactively work with the employee to address the situation. By using built-in control mechanisms to automatically enforce policy rules and limits. you can establish customized payment processing and approval rules to ensure adherence to corporate reimbursement policies. accurately tracking preferred supplier spending. Expense Management improves control and creates substantial cost savings for your organization. and enforcing travel policies. you gain control over all travel and entertainment-related spending.With Expense Management. By streamlining the expense reimbursement process. If a policy limit is exceeded or if information is missing or inaccurate.

PRODUCT RANGE .

HOUSING LOAN BUSINESS & SME LOAN PRODUCT RANGE COMMERCIA L CREDIT COMMERCIA L VEHICLE LOAN LOAN AGAINST PROPERTY Business & SME Loans The Company offers business loans. considered as a retail product. to address the borrowing needs of the community of small businessmen by offering facilities such as credit lines and term loans for expansion and/or addition of facilities and other business purposes. The average maturity for such loans is 36months. The Company does a detailed credit analysis and appraisal for each of these customers financials. .

400 crores as of March 2008. The average maturity for such loans is 10-12 years. This product was introduced in early 2006 and the current portfolio is over Rs. Housing Loan The Company offers housing loans at floating rates to both customer segments (credible salaried and selfemployed persons). . Commercial Credit The Company provides business loans to the mid-size corporates and companies for expansion and/or acquisition of business and other business purposes. Commercial Vehicle Loans The Company provides secured financing for commercial vehicle and tractors to customers such as truck operators and farmers. The company entered this business in September 2007 and has a portfolio of over Rs. The average maturity for loans offered is 10-12 years.cashflows. Loan against Property The Company provides business loans to address the borrowing needs for self-employed segment by offering term loans for expansion and/or acquisition of business and other business purposes. The average maturity of such loans is 12 months. The lending is secured by way of equitable mortgage of properties (both residential and commercial). bank statements and assets. The average maturity for such loans is 36 months. The lending is typically secured with current assets as well as immovable property and fixed assets in some cases. 1700 crores as of March 2008.

and what type of expenses they are – Coverage of expenses .EXPENSE MANAGEMENT AT INDIABULLS Now we study some of the expenses which are incurred at INDIABULLS.

Epf expenses 17. Water expenses 23. Repossession charges g. Telephone expenses 11. Egm expenses 10. DSA Special Incentive 7. Salary expenses 13. Internet expenses 12. Xerox charges 29. Traveling expenses 2. Rent 9. Parking charges 3.1. Credit rating fees 5. Fax charges . Petty cash 25. Loss on fixed assets 21. FCU charges b. Legal verification d. Advertisement expenses 4. Client verification chargesa. FCI charges f. Repair and maintenance 6. Printing & Stationery 28. Audit fee 19. Bad debts 20. Postage & courier expense 27. Interest on car loan 18. Revaluation charges h. Tea expenses 24. ECS charges 8. Interest expenses 22. Valuation expenses c. Gratuity expenses 14. Lip charges e. ESI expenses 16. Electricity expense 26. Incentive expenses 15.

NATURE & PROCESSING OF EXPENSES

TRAVELING EXPENSE
These type of expenses are incurred by the employees of the company who do the official traveling.An amount is paid to these employees which has been

reimbursed by them.There is a travel policy, according to it the amount would be paid to the employee of company.

Travel policy
• • • • • • • This policy is applicable to all employees in all functions only for official travel outside city limits/locations. Detailed travel plan for the month should be approved by the business head/function head at the beginning of the month. In the case of day travel , the expense limit is 25%. The expense limit includes hotel , food , taxi , and telephone expenses incurred at the place of visit. In case employees do not submit bills for hotel & food 25% of per day limit would be paid per day. All travel claims need to be sent along with original bills & original boarding pass/ticket along with approval ( hard copy or mail ) Use of own vehicle for conveyance travel. Vehicle registration no. should be provided with the claims.

Process Overview

Finance Executive performs: • 7B. Finance Executive performs following key checks on the Expense Claim.e. Employee Reimbursements 7A. Verification of claim by Finance 1. claims will first be received by CBD and then forwarded to . 4. Accounting in SAP and claim disbursement • • Note: • Duplicate payment check (Key Control). (i. If the employee is unable to provide requisite documents / approvals. same vendor number with same amount for an expense type processed twice in the same month) Active employees check. date of joining etc) in case of relocation allowance 3. either through courier or hand delivery • Stamps the Expense Claim Form and updates Finance Control Sheet with claim details. as per defined checkpoints (Refer Annexure 2) (Key Control): • Verifies if Expense Claim Form is completely and properly filled by the employee • Verifies if expense is approved as per Authority Matrix (Refer Annexure 3) and Expense Reimbursement policy (Mobile / Travel / Conveyance) / Relocation policy (Refer Annexure 4) • Verifies if appropriate supporting documents are attached* • Validates if invoice more than 60 days old is approved by the CEO *Note: Following are acceptable supporting documents for Employee Reimbursement related claims: • Original mobile / hotel bill • Exception approval by Business Head in case of duplicate bill • Annexure providing journey details • Relocation details (relocation address.Process Workflow and Key Controls 7. (i. If all documents are complete and appropriate approvals exist.e. based on updated employee data received from HR (Key Control). if the claimant is still active with the company or has already resigned) When CBD will be implemented for employee reimbursements. 2. Finance Executive: Receives the Expense Claim Form (Refer Annexure 1) along with appropriate approvals and supporting documents from employees. Finance Executive follows-up with the employee for missing documents / approvals. If all documents are not complete as per defined supports and / or appropriate approvals do not exist as per authority matrix and in accordance with Expense Reimbursement policy. Verification of claim by Finance A. the expense is rejected by Finance.

7. (Key Control) Verifies bank account details of employees against the data received from HR (Key Control) Submits the payout sheet along with journal vouchers and obtains signatures of bank signatories on the payout sheet (Key Control) Prepares a Bank Letter along with supporting annexure Submits the Bank Letter. AVP Finance verifies the annexure. 7B. Note: In case of travel reimbursement. uploads the BDC (Refer Annexure 8) in SAP and e-mails log file back to the Executive. Finance Executive parks the entry and AM verifies and posts the entry in SAP). as per ‘Reimbursement Schedule’ (Refer Annexure 5). 2. Finance Executive rejects the expense. signs the Bank Letter and annexure and submits all documents to bank signatories. • • • • 4. If it is a duplicate payment / inactive employee. e-mails the BDC and submits all Expense Claim Forms along with supporting documents to Finance Officer. 8. payout sheet. Finance Executive: Prints journal voucher from SAP Attaches respective Expense Claim Form with the journal voucher Prepares a payout sheet with bank account details E-mails the payout sheet and submits all journal vouchers to Finance Officer for verification Finance Officer / AM : Performs a count check on the payout sheet (i. AM Finance e-mails the annexure and hand . B. verifies payout sheet against journal voucher. tallies the number and value of items in the BDC file against the same in payout sheet) In case of travel reimbursement. individual claims are processed in SAP through the ‘park and post method’ (i. Verification of claim by Finance respective Finance Executive / Officer. 6.e.7A. initials the annexure and submits all documents to AVP Finance. Accounting entry is posted in SAP (Refer section IV for accounting entries). 3. Accounting in SAP and claim disbursement 1. Accounting in SAP and claim disbursement Finance Executive prepares a BDC of reimbursement details. after tallying details with the approved payout sheet (Key Control).e. AM Finance verifies employee and bank account details in the annexure. supporting annexure and vouchers to AM Finance for verification • • • • • 5. Finance Officer verifies all Expense Claim Forms. Bank signatories sign the Bank Letter and annexure.

No expense is reimbursed either through cheque or in advance. 11. end Submission of Finance Control Sheet at month- • Finance Officer updates the ‘Finance Control Sheet’ (Refer Annexure 6) on WD+15 of each month. as a normal process. 9. 10. that were processed during the period. . Annexure 7) for management review and further action.delivers hard copy of the Bank Letter annexure to the Bank. • Finance Manager prepares a ‘Monthly Expense Metrics’ (Refer Note: All employee reimbursements are credited to respective employee’s salary account. Field boy delivers the Bank Letter and annexure to the Bank and obtains bank stamp on copy of the Bank Letter. providing an expense-wise update on invoices reimbursed. Finance Officer files the stamped copy of Bank Letter for record (for a period of 7 years). highlighting the number of invoices more than 60 days old.

Dr. Cr.Key Accounting Entries Stage of posting entry in SAP At the time of recognizing liability Traveling Expense Boarding and Lodging Expense Air Traveling Expense To Employee (vendor) At the time of disbursing payment Employee (vendor) To Bank GL Head Dr. SAP Code 58040004 58040037 50100174 . Cr. Dr. Dr.

Mandatory Data Fields for SAP narration . Authority Matrix 4. Expense Reimbursement Policies 5. Monthly Expense Metrics 8. Finance Control Sheet 7. Checkpoints 3. Expense Reimbursement Schedule 6.Annexure 1. Expense Claim Form 2.

Expense Claim Form .1.

.

Finance Control Sheet 3.2. as part of narration: • • Invoice Number (in Reference field) Invoice Date (in Document Date field) Period of Expense (in Narration field) Nature of Expense (in Narration field) Branch Name (in Cost Center field) Product (in Narration field) • • • • .Mandatory Data Fields for SAP narration Following fields are mandatory to be recorded in SAP.

3. FCI charges Valuation charges Legal verification charges LIP charges FCU charges FCI charges ( field credit investigation ) This part include the verification of address. . 5. The expenses incurred in this type of verification comes under LIP charges.CLIENT VERIFICATION CHARGES Many customers apply for the loan to company. salary statement etc. Client verification charges include following charges-------1.The expenses incurred in the valuation are referred as valuation expenses. 2.The expenses incurred in the client verification are referred as client verification charges.bank statement . All the above verifications are done by the vendors hired by the INDIABULLS. vender do claim its expense amount. After doing verifications .and the expenses incurred in these verifications are called as FCI charges. Valuation expenses This part includes valuation of property which the customer has been claimed.whether to issue loan to the client or not.Then the company does client or customer verification. Legal verification charges The company verifies – has the customer taken loan from other institutions or not? Are the EMI ‘s continous or not ? LIP charges ( liquid income profile ) This part includes the verification of the customer’s current income. contact .office . 4.

Process Overview .

.

Dr. Cr. Dr. Dr. Dr. Dr.Key Accounting Entries Stage of posting entry in SAP At the time of recognizing liability GL Head SAP Code LIP Charges/ Valuation Expenses/ Legal Verification Expenses/ FCU (Fraud Control Unit) Charges/ FCI. Dr. Dr. Tvr and Other charges/ Repossession Expenses/ Parking Expenses/ Revaluation Expenses/ Legal Expenses To Vendor To TDS Dr. Dr. Cr. Dr. Checkpoints . Dr. Cr. 62000020 62000012 62000019 62000010 62000009 58241027 50100069 58241026 58040013 At the time of making vendor payment 2) Service Tax Refund 3) Vendor To Bank 4.

.

Branch Control Sheet .5.

Appropriate Department Control Sheet finance Control Sheet .

. The company here by appoints the service provider & the service provider here by accepts the appointment to render the services more fully described in the agreement to the company. The service provider carries on the business of providing certain kinds of services that are more fully described in the agreement and for the providing of which the service provider has been engaged by this company under this agreement and has represented to the company that it would be able to render such services in a timely .REPRIR AND MAINTENANCE Following are expense items covered under the Expense Group Repairs and Maintenance • • • • • • Office Maintenance AMC Software AMC Hardware Computer AMC Hardware Generators AMC Air Conditioners Repair & Maintenance The AMC is made on the day. efficient and professional manner. The schedule also sets out an estimate of the expenses that the service provider would incur in rendering the services which the company has agreed to reimburse. month & year specified in the schedule to this agreement between the two parties : company and the service provider.

Process Overview .

.

Dr. Expense Service Tax Clearing To Vendor 2. Expense To GR/IR 4.Key Accounting Entries Stage of posting entry in SAP At the time of recognizing liability GL Head PO-backed invoices – 1. Dr. Dr. Dr. Cr. Dr. Service Tax Refund To Service Tax Input Clearing 3. Cr. Dr. Service Tax Refund To Service Tax Clearing PO-backed invoices (AMC) – 1. Vendor To Bank Non-PO backed invoice1. Cr. Vendor Dr. Cr. Dr. GR/IR Service Tax (Input Clearing) To Vendor To TDS 2. GR/IR Service Tax (Input Clearing) To Vendor To TDS 2. Dr. Dr. Cr. Cr. SAP Code . Vendor To Bank 4. Cr. Expense To GR/IR 3. Dr. Cr. Dr. Cr. Cr. Dr. Cr.

Cr.62100049(IHFL) . 50100036 58242001 50100044 50100045 50100047 50100048 50100051 58040024(IFSL. ICL). Service Tax Refund To Service Tax Clearing Expense Codes 1) Expense (Office Maintenance) Expense (Security Charges) Expense (AMC Software Expenses) Expense (AMC Hardware Computer) Expense (AMC Hardware Generators) Expense (AMC Air Conditioners) Expense (Repair & Maintenance) Expense (Computer Repair) Cr.To Bank 3. 58165006. Dr.

Branch Control Sheet .

Finance Control Sheet .

COMMUNICATION EXPENSES Following are expense items covered under the Expense Group Communication: • • • • Postage and Courier Charges MPLS Charges Telephone Expenses (Fixed/WLL) / Mobile Internet bandwidth .

Process Overview .

.

Also the decisions about nature of the advertisement i.e television . magazines or hoardings etc. the advertisement company raise the bill to the company of the specified amount. are taken by this team.ADVERTISEMENT EXPENSE There is a team in MUMBAI branch of INDIABULLS which look after all the advertisement decisions. The advertisement companies are hired by this team.The amount paid for the advertisements are decided by this team. . After providing services .

Process Overview .

Checkpoints 6.Marketing Control Sheet .

finance Control Sheet .

STAFF WELFARE EXPENSES Following are the expense items covered under the Expense Group Staff Welfare Staff Welfare Recruitment and Training Tea and Refreshments Water Staff Welfare Conference Expenses Incentives .

Process Overview .

.

Checkpoints 7.Branch Control Sheet .

vendor and the company comes to an agreement. . the company would issue loan to the customer. These vendors provide customers to the company and do charge some commission from company. After verification . The commission rate of these vendors will be decided in the agreement and the commission rate depends on the loan amount that has been issued to the customer ( the customer provided by the vendor ) . Before providing customer to the company. And these vendors provide customers to company.DSA Special Incentive The company appoints some vendors.

Process Overview .

.

In INDIA . A proper description about the customer is being forward to the TECH SOLUTION.CREDIT RATING FEE What is CREDIT RATING ? A credit rating assesses the credit worthiness of an individual .The largest credit rating agencies (which lend to operate world wide ) are Moody’s . or even a country. ECS CHARGES Electronic clearance system INDIABULLS maintain a proper EMI system after issuing loan to the customer. Standard and Poor’s and Fitch ratings. these agencies do charge some fees for providing services. There is no universal credit rating as such . and thus leads to high interest rates . rather each individual lendor credit scores based on its own wish list of a perfect customer.This fee is referred as CREDIT RATING FEE. After that the do insurance of all its employees. A poor credit rating indicates a high risk of defaulting on a loan . CREDIT RATING AGENCIES In United States . In United Kingdom . After verification . Operation department do confirm all the transactions. Credit ratings are calculated from financial history and current assets and liabilities. Equifax . Equifax and Callcredit. corporation . A credit rating tells a lendor or investor the probability of the subject being able to pay back a loan. After getting information . the main credit bureaus are Experian . This is referred as EMPLOYEE STATE INSURANCE. And the .e TECH SOLUTION. For an effective EMI system has hired some vendor i. Transunion. the main credit reference agencies for individuals are Experian . or the refusal of a loan by the creditor. ESI expense Employee state insurance INDIABULLS get registered itself under the govt. TECH SOLUTION verifies all the transactions from customer’s bank. The employee contribution remains 1. ICRA and CRD (Credit Registration Office ) . the main credit bureaus are CRISIL . TECH SOLUTION forward invoice having information regarding verified transactions to HO. After that the claimed amount would be paid to the TECH SOLUTION.75% of gross salary. Therefore it is regarded as an expense for the company. So .

.employer’s contribution remains 4. Epf EXPENSE Employee provident fund In employee provident fund . employer’s contributions referred as an expense for the company.75% of gross salary. Therefore . Therefore employer’s contribution is taken as expense for the company. the employee’s contribution remains 12% of the basic salary . So . this would be referred as an expense for the company. And the employer’s contribution also remains 12% of the basic salary. GRATUITY EXPENSE The gratuity is paid to those employees of the company who has been working for the company since 5 years.

FINDING AND ANALYSIS Objective of developing standard operating procedure .

Lac VP CFO > 1 Fin Lac Travellin g Exp Exp Business Exp EVP / CEO VP SM Fin Sr Mag Om Singh < 1 <50k.Key objectives of developing standard operating procedures around the process of expenses processing are: • • • • • • • Ensuring employee reimbursement claims are in accordance with Expense Policy Enabling accounting of payments and liabilities at correct amounts. Lac CFO > 1 Lac . CEO > 1 Fin <1Lac. in correct accounting period and based on appropriate authorization Enabling efficient receipt of goods / services in accordance with Purchase Order raised / Vendor Agreement Ensuring timely and accurate reimbursements to employees Ensuring timely and accurate payments to vendors Ensuring timely and accurate payments to regulatory authorities Ensuring compliance to applicable laws and regulations Authorization matrix of expenses payments of INDIABULLS Expen se Appro val Exp/ CAPE Nature X/ of Statut Expenses ory Paym ent Credit Rating Fees/ Opinion Categor y of Expense s User Exp Business Exp CEO Dep Head Payment Approval Final Approval Cont rol Finance Sr Mag Om Singh < 1 <50k. CEO > 1 Fin <1Lac. in correct accounts. VP Lac. VP Lac.

Lac CFO > 1 Lac SM HR VP Fin . Group CAO & CEO > 1 Lac ESI Exp/R ec Statutory Payment s VP Fin Sr Mag Om Singh < 1 <50k. VP Lac. VP Lac. CFO > 1 Lac Staff Welfare Exp MRE As per Agree ment SM Adm SM Fin Sr Mag <50k. CEO > 1 Fin <1Lac. Lac CFO > 1 Lac Exp Incent/C omm CEO Process/ CFO Ops Sr Mag CEO <50k. CEO > 1 Fin <1Lac. CFO > 1 Lac Om Singh < 1 Lac.Advertise ment Expenses Exp Business Exp CEO VP Mkt SM Fin Sr Mag Om Singh < 1 <50k. VP Lac. Lac CFO > 1 Lac FCI Charges Exp Business Exp Risk Head/ Ops Head VP Risk / Ops Sr Mag Om Singh < 1 <50k. Lac CFO > 1 Lac SM Fin VP Ops ECS Charges Exp Business Exp Ops Head SM Fin Commiss ion and Brokerag eMarketin g Associate s Sr Mag Om Singh < 1 <50k. VP Lac. CEO > 1 Fin <1Lac. VP Fin <1Lac. VP Fin <1Lac. CEO > 1 Fin <1Lac.

Lac CFO > 1 Lac Repairs & Maintena nce Vehicle Exp GRE VP Admin SM Adm VP Adm Sr Mag Om Singh < 1 <50k. Finance Executive follows-up with the employee for missing documents / approvals. If all documents are complete and appropriate approvals exist. if the claimant is still active with the company or has already resigned) • • • • • • • • • . If all documents are not complete as per defined supports and / or appropriate approvals do not exist as per authority matrix and in accordance with Expense policy. VP Lac. CEO > 1 Fin <1Lac.e. 2. CEO > 1 Fin <1Lac. the expense is rejected by Finance.e. same vendor number with same amount for an expense type processed twice in the same month) Active employees check. VP Lac. If the employee is unable to provide requisite documents / approvals. based on updated employee data received from HR (i. Finance Executive performs: Duplicate payment check (i.Telephon e Expenses Exp MRE As per Agree ment SM Adm SM Fin Sr Mag Om Singh < 1 <50k. either through courier or hand delivery Stamps the Expense Claim Form and updates Finance Control Sheet with claim details. Lac CFO > 1 Lac Process workflow Verification of claim by Finance Finance Executive: Receives the Expense Claim Form along with appropriate approvals and supporting documents from employees. as per defined checkpoints Verifies if Expense Claim Form is completely and properly filled by the employee Verifies if expense is approved as per Authority Matrix Verifies if appropriate supporting documents are attached* Validates if invoice more than 60 days old is approved by the CEO 1. Finance Executive performs following key checks on the Expense Claim.

Field boy delivers the Bank Letter and annexure to the Bank and obtains bank stamp on copy of the Bank Letter. e-mails the BDC and submits all Expense Claim Forms along with supporting documents to Finance Officer. . after tallying details with the approved payout sheet . tallies the number and value of items in the BDC file against the same in payout sheet) Verifies bank account details of employees against the data received from HR . If it is a duplicate payment / inactive employee. Finance Officer verifies all Expense Claim Forms. 2. Accounting entry is posted in SAP. Submits the payout sheet along with journal vouchers and obtains signatures of bank signatories on the payout sheet Prepares a Bank Letter along with supporting annexure Submits the Bank Letter. 5. AVP Finance verifies the annexure. Finance Executive: • • • • Prints journal voucher from SAP Attaches respective Expense Claim Form with the journal voucher Prepares a payout sheet with bank account details E-mails the payout sheet and submits all journal vouchers to Finance Officer for verification Finance Officer / AM : Performs a count check on the payout sheet (i. 6. Finance Executive rejects the expense. AM Finance e-mails the annexure and hand delivers hard copy of the Bank Letter annexure to the Bank. 4. Authorised signatories sign the Bank Letter and annexure. initials the annexure and submits all documents to AVP Finance. Submission of Finance Control Sheet at month-end • • • • Finance Officer updates the ‘Finance Control Sheet’ on WD+15 of each month. 3.Accounting in SAP and claim disbursement Finance Executive prepares a BDC of reimbursement details.e. payout sheet. uploads the BDC in SAP and e-mails log file back to the Executive. supporting annexure and vouchers to AM Finance for verification 1. signs the Bank Letter and annexure and submits all documents to authorised signatories. providing an expense-wise update on invoices reimbursed. 7. AM Finance verifies employee and bank account details in the annexure. Finance Officer files the stamped copy of Bank Letter for record (for a period of 7 years).

• Finance Manager prepares a ‘Monthly Expense Metrics’ for management review and further action. highlighting the number of invoices more than 60 days old. that were processed during the period. .

LIMITATIONS .

Field boy delivers the letter and annexure to the bank and obtains bank stamp on the copy of letter. AM verifies bank account details of all employees specified in annexure. then team leader uploads BDC in SAP. After it executive prepares BDC ( batch data collection ) and submits BDC to his/her team leader along with all expense claim forms . AVP verifies and signs bank letter and annexure . CBD ( central billing desk ) forward it to finance department. They have to remember the policies so many times. it is a very lengthy process. Also they need to remember the employee’s limits so many times. it takes a lot for taking approval from higher authority. So . Executive receives the Expense Claim Form along with appropriate approvals and supporting documents. Bank signatories sign bank letter and annexure . Sometimes it may happens . Processing of expenses takes a lot of time Initially bills are received at HO. Officer verifies payout sheet with bank account details. approvals and supports as per defined checkpoints. I At last reimbursement credited to the employee salary account or credited to the vendor account. Then executive updates finance control sheet and verifies the expense claim form . Officer prepares bank letter and supporting annexure. Approvals from higher authority need to be required Approvals from higher authority need to be required. Then . Then executive prepares payout sheet with bank account details. AM e-mails the annexure and hand delivers hard copy of bank letter and annexure to the bank. Therefore . . Officer verifies payout sheet and obtains signatures of bank signatories. Therefore executives faces many problems. mobile and conveyance policies.Changing of policies at regular basis Management changes policies at regular basis especially traveling . it results in delaying the payments.

Suggestions .

.  policies like traveling policy . It can also be sufficient that signatories would receive the bills after checked by team leader. Because they have to remember the policies so many times. it do create problems for executives. Thus . mobile and conveyance policy should not changed at regular basis. should be minimum. After it the bills are forward to signatories . By doing so . it leads to decreasing their efficiency. Then senior manager signs the bills. it will help in reducing the expense processing cycle. Otherwise . Formalities require like team leader checks all the bills and signs it .

69 .

70 .