Questions to Client Replies / Comments UK Replies / Comments US Bullet Points / Notes Gaps (Prima faci)

via goods inwards receipts and PO

How do you match purchase order information to AP
invoice information?
via goods inwards receipts and PO order-
Vendor invoice processed using APID screen.
Enter vendor #, invoice #, invoice date and PO
#. Correct PO located enter qty, unit price as
per invoice, details calculated, result invoice
matched to PO.
order-Vendor invoice processed using
APID screen. Enter vendor #, invoice #,
invoice date and PO #. Correct PO
located enter qty, unit price as per
invoice, details calculated, result invoice
matched to PO.

Fixed Assets are treated in the same

Fixed Assets are treated in the same way as way as goods purchase. PO raised
goods purchase. PO raised and vendor and vendor invoice matched as above.
How do you match vendor information to your fixed invoice matched as above. Spreadsheet is Spreadsheet is updated upon receipt of
assets systems when purchasing assets? updated upon receipt of vendor invoice. vendor invoice.

Do you want to be able to update or change the

accounting distribution information for line items in your
purchase orders? yes yes

grouped for deflation reporting into

electronics/EMD/indirect/metallic/metals/non- alphabetical by vendor name, numerical
What is the basis for your vendor category breakdown? metallic/sourced product/internal by vendor ID no.
Are vendors
Are vendors categorized
categorized for
for financial
reportingtracking
purposes? yes no
purposes? yes no
K Rajini Rao:
Discuss in detail as to the Sales tax is paid when billed. If no tax
application of the use tax
What are the requirements for reporting tax payments VAT- monthly returns and business rates is billed we accrue tax and pay a use
(e.g. company, rate or tax authority)? annual invoice paid over 10 months. tax to the state
System generated from AP and manual tax invoices posted to specific G/L
How do you record taxes within the GL? journals - GL vat input a/c accounts
Is there a requirement to support multiple bank
accounts? yes no
Is there a requirement to support foreign currency bank
accounts? yes no
What disbursement (document) types are currently Vendor invoice, expense reports, debit
processed through these bank accounts? Direct Debits, Standing Orders, BACS, TT memos and vendor credit memos
purchasing manager authorises terms ie:
How are your current payment terms structured? 30days- 60 days 2% 20 days, Net 75 days
Do you use percentage due or amount due? amount due amount due
K Rajini Rao:
If the due date is
Are due dates calculated based on a specific day of the calculated based on a
month or on a number of days from the payment terms number of of
specific day days from-
the month payment terms
how are payment terms
date? specific day of the month date
30 -60 days
Is there a provision for discounts within the current
payment terms? yes yes

How are discount dates calculated - based on a

specific day of the month or on a number of days from number of days from payment terms
the payment terms date? number of days from payment terms date date
Is there a requirement to use multiple discount levels at
present or in the future? yes no
10-15 per month, payments made mainly via
How many checks do you write/produce per period? BACS approx. 100 per week
request bank to place "stop", adjust ledger no policy. request bank to place "stop",
What is your policy to cancel checks? accordingly adjust ledger accordingly
Is there a requirement to use Wire Transfers? yes yes
Is there a requirement to process Manual Payments? If
so, is a separate bank account used? yes, but a separate bank account is not used no
Is there a requirement to process Partial Payments? no no
Is there a requirement to process Pre-Payments? yes COD shipments
Is there a requirement to process Recurring Payments? yes no
Advance payment is processed via APDS to
What is the current procedure for vendor advances? the appropriate vendor a/c in AP n/a
How are vendor advances reconciled when the invoice Invoice is processed to vendor a/c and
is submitted? matched to advance payment via APPA. n/a
Do you have a priority system for payments? no no
What is your current payment cycle? (How often do you Every 2 weeks 1 small ie: Expenses, Couriers
print checks?) & 1 large Main Suppliers once per week
If recurring payments are used, what is the normal
period cycle for these payments? monthly n/a
Are allthere
Is/will invoices
be apaid in local currency?
requirement to use multiple No. Paid in GB pounds, Euros & Dollars yes
currencies? yes yes
Do you have a minimum or maximum payment amount
per check? no no

no policy. Check with bank to ascertain

What is the policy/procedures for handling stop Check with bank to ascertain cheque is not cheque is not cashed. Write cheque
payments? cashed. Write cheque back to ledger. back to ledger.

Void payments are written back using APCV

What is the policy /procedures for handling void screen reference to cheque and cash set A/P voids in fourth shift (APCV), then
payments if they have been recorded? number. voids in Fleet windows
Void manual cheques are attached to
What is the policy /procedures for handling void counterfoil in cheque book as physical no policy. A/P voids in fourth shift
payments if they have not been recorded? evidence. (APCV), then voids in Fleet windows
Do you pay any vendors on a priority basis according to
funds available? no no
Is there a requirement to prioritise payments? no no
Who enters invoices and how often? Accounts Payable clerk - daily A/P - daily
Do you receive invoices at a central location? yes yes
How do you physically store invoices once entered into
the computer? filed in vendor order in folders file cabinet
Are invoices billed to distinct companies, cost centers
or other? yes Billed to distinct companies
How many invoices per period do you enter? 250/300 month approx. 150 per week

Do you have security requirements on who can enter

data (invoice processing, payment processing, and
check processing)? yes yes
How are invoices identified (numbered)? vendor’s vendors invoice number, then vendor
invoice number, date, or next allocated number? invoice number date if number not avail.
How many liability accounts do you use? 2 22

Can you identify any frequently used expense

distributions within your current system (for example,
rent or telephone payments)? yes rent, phone, operating leases
Are these recurring expenses for fixed or varying rent is fixed, phone varies, operating
amounts? varying and fixed leases fixed
Is there a requirement to match invoices to related Yes, but not with utility bills, although readings
purchase orders? are checked yes
 pack slip comes from stockroom,
How are you currently matching invoices to purchase matched to invoice, matched in fourth
orders? See line 3 above shift to PO
Will some invoices never have purchase orders? yes yes
Should invoices be matched completely, partially or
both? both completely
Do you perform 2, 3, or 4 way matching of invoices? 3 3 way
Do you currently have any tolerance levels for
matching? (Price Tolerance, Quantity Ordered Yes. For certain custom manfactured items ,
Tolerance, Quantity Received Tolerance, or Tax eg: cartons, labels, metal machine parts +/-
Tolerance?) 10% yes
Would you like to approve your invoices on-line, by
batch or have both options? both both
What is the internal approval process for an invoice in Matched against PO or signed off by a proper department manager signs off
your organization at present? Director. based on Matrix
Are there situations where an invoice needs to be
placed on hold and then manually released? yes yes
Describe the approval process when invoices need to Manual held invoices would need to be A/P puts on hold in fourth shift, releases
be placed on hold and manually released? approved by the Purchasing Manager from hold upon mgr. Approval

Where an invoice needs to be placed on hold and then

manually released, can these invoices be "posted" to
the General Ledger? yes yes
How often do you "post" information to your General
ledger? daily daily
Do you use Cash or Accrual Based Accounting? Accrual based accounting Accrual
Do you post (or wish to post) in detail or in summary to
the general ledger? detail detail
When do you start your AP close? 3 days prior to GE fiscal month end last Wednesday of the month
Do you have any documentation on your AP close? yes yes
Do you allow posting invoices back to prior periods? no no
Is there a requirement to track duplicate vendor
information within the Payables system? yes no
What other audit requirements are needed? duplicate invoices/payments
Do you need to restrict access to certain functions? yes Yes

grouped for deflation reporting into

electronics/EMD/indirect/metallic/metals/non-
Which vendors should be grouped and why? metallic/sourced product/internal
For the purpose of Invoice Aging Reports, what aging monthly aging, monthly unvouched
periods are currently in use? current, 1-30, 31-60, 61-90. 90+ aging
Is there a need to define any additional aging periods? no no
Do you have to pay other businesses in different Set of
Books within the same GL no Yes
Will you need to make payments to businesses in
different GL set of books yes Yes
Is there a requirement to process employee expense
reports? yes yes
Is there a standard employee expense claim form? yes yes

employee fills out form, gets mgr

What is the current process to generate expense expenses are picked up on the monthly approval, A/P cuts check. Plus GE
payments to employees? payment run Online Expensing.
How frequently are employee expense claims
processed? monthly as needed, typically weekly
How many employee expense claims are processed? 10 3-4 per month

Are these expense claims assigned a special pay

priority - high or low? (Before/after other vendor
payments for example.) high no
What is the current procedure for employee advances? n/a no advances
How are these reconciled when the expense claim is
submitted? n/a Approved by manager and Finance
Do your employees have company credit cards? no yes
How are company credit cards handled? n/a Through standard GE processes
Questions to Client Replies / Comments UK Replies / Comments US

What types of customers do you have? Cash and credit customers Distributors, end users and other GE companies
How do you group your customers for credit limits/credit checks? we don’t group them N/A
How do you group your customers for statements? alphabetical N/A
How do you group your customers for interest charges for late
payments? don't charge currently We do not charge interest charges
How do you group your customers for payment rules? as per our credit terms N/A
How many customers do you have? 300/340 3500

Payment of the price and VAT shall be be due on or

before delivery unless otherwise agreed when it shall be
What type of payment terms do you provide? within thirty days of the date of the invoice Varies
Do you provide split term payment terms? no No
Do you provide discount payment terms? no No
Do you automatically number new customers as they are
created? yes but this is done manually Yes
Do you automatically number customer business purposes as
they are created? no No
Do you create reciprocal customer relationships whenever you
create a relationship between customers for tracking purposes? no Yes
Do you send customers statements? yes Yes, Charlotte send statements
Do you have multiple "remit tos"? yes Yes
How are multiple "remit tos" determined for each customer? amount is split between cust accounts Checks to one remit to, wire each to another
What credit information is tracked for each customer? trade references D&B rating, credit limit, days to pay
Do you have a prospect system separate from the receivables
customers? yes, but maintained on Microsoft Word Yes
Who has access to your customer database? sales office personnel Sales, Customer Service, Finance
the process IVMC is run within 4th shift after the item the process IVMC is run within 4th shift after the item has
has been shipped, this notifies 4thshift that an invoice been shipped, this notifies 4thshift that an invoice needs to
How do you receive notice to create/generate an invoice to bill a needs to be raised. The invoice is then printed when an be raised. The invoice is then printed when an invoice run
customer? invoice run is performed. is performed.
Do you regularly invoice customers for the same items? yes Yes
Do you use standard invoice lines with default pricing and default
accounting information? yes Yes
Do you ever use invoice forms and/or the invoice entry process yes, invoices and credits are also used to move
for transactions other than billing customers? cash/credit notes between customer accounts No. Use preprinted invoice
Do you use Debit Memos? no No
How are Debit Memos accounted for? n/a N/A
Why are Debit Memos used? n/a N/A
What items appear on Debit Memos? n/a N/A
Do you use Customer Account Credit Memos? yes Yes
How are Customer Account Credit Memos used? to represent returned items, price corr'n, discounts etc… Customer Service issues Credit memo
To credit returned material or correct errors on the
Why are Customer Account Credit Memos used? to correct invoices, move cash, to clear SIWO customers account
amt, reason for raising credit, Credit note number, date,
What items appear on Customer Account Credit Memos? tax, cust no., cust name and address returned product, credit for price variance, freight, sales tax
Do you enter invoices in batches? yes Yes
How are batch invoices defined? system generated batch no. System defined
What are the units of measure you use when you bill customers
for products and/or services? each as standard Qty and unit price
Do you require taxes to be established for use when preparing
invoices? yes Yes
Do you validate the tax rate against a Customer’s Ship To
address when preparing invoices? yes No, defaults to sold to
Do you bill customers in a foreign currency? yes Yes
Are there any other foreign currency issues regarding invoice
generation? no euro
How many invoice types do you have? 2 1
How frequently do you invoice your customers? daily daily
How do you track sales revenue on invoices? How is it reported? arir report/sale & orders report Revenue is tracked by product line
UPS, DHL, FedEx, Freight Forwarder or Customer
What different shipping methods do you use? Post, courier, air freight, sea freight selected carrier
How do you number your invoices? numerically, system generated numemric
Do you have standard default line items that you use? yes No
Do you have standard default line items that you use or are most
lines free format? both No
What type of units of measure do you use? each as standard qty and price
Do you have different price schedules dependent on customer or
volumes? yes Yes
How often are sales orders invoiced? 3 times a day daily
What is the criteria to invoice? order must have been shipped shipment
What items appear on your invoices (inventory? non-inventory?) both both
Who maintains your valid payment terms? What are they? Credit control, 30 days of the date of invoice GEI and Charlotte varies
What paper stock is used to print the invoices? pre printed continual 3 part Preprinted invoice forms
Where are the invoices printed? How many printers and where on one dot matrix printer in same office, yes pre-printed GEI, 1 printer used and it located in Customer Service, Yes
are they? Pre-printed forms? forms we use preprinted forms
 For payments by check: GE General Eastern Instruments
What remit to address is assigned for your invoices? GE Protimeter Plc address 12126 Collections Center Drive Chicago, IL 60693
Do you assign shipping charges for your invoices? yes Yes
How are shipping charges calculated? majority fixed Calculated from shipping machine
How do you calculate your tax charges? What are the rates? system generated tax rates are enter into the system by customer
How do you keep your tax rate information up to date? through 4th shift maintenance Tax rates are changed when needed
Why are credit memos used? to amend invoices, move cash or SIWO To enter returns and correct errors on invoices
How are the revenue, receivable, freight and tax accounts revenue is by product line, freight and tax go to the correct
configured for each invoice type? general ledger coding format of xx-xx-xx-xxxx freight or tax account
How are adjustments to closed periods handled? processed in next period Adjustments made in current period
Do you ever recognize revenue from a single transaction over
multiple periods? no Yes, these are service contracts
% per month example if 12 month contract we recogize
When do you recognize revenue? at time of shipment to customer 1/12 per month
How many General Ledger accounts do you distribute to? 3 35
create debtor at time of shipment/review daily until
When do you create or recognize outstanding receivables? cleared by payment When product is shipped an invoice is generated
Do you distribute earned and unearned revenue? What are the
GL accounts? only earned revenue/document sales revenue a/c nos. Yes, service contracts
Do you have unbilled receivables? vat/interest on GE cashpool No
Is revenue assignment associated with sales people information? no Yes
Do you assign non-revenue credit to sales people? no No
How do you maintain and assign salespeople to customers? n/a At the order line item level
Do you track Sales Territory Information? weekly pole reports Yes
How is Sales Territory Information for tracking purposes derived?
(for example, customer, salesperson, and so on) sales by country reports Rep Code
Do you maintain mandatory and/or optional reviews in your
orders cycle for credit risk, legal compliance, and/or other
approvals? yes, credit checks etc.. This is performed by Charlotte
Do you have sales representatives? How many? yes, 3 15 external reps.
How do you breakup territory for sales? n/a By geographic region
How do you assign commissions? we don't by product and rep code
Do you automatically determine the general ledger accounts for
specific transactions (for example, receivables, freight, tax,
unearned revenue, unbilled receivables, and so on) during
Invoice Entry? yes Yes
How do you enter/manage a credit amount owed to the customer credit bal. shows on cust acc. and is refunded upon a place against customer AR Balance if not used within 6
by your company? request in writing months it is moved to the Customer Advance account
How do you enter/manage a credit amount owed to your
company by the customer request a refund in writing N/A
Do you send customers statements? yes Yes
Do you ever adjust receivables? no, except throught bad debt write off Yes
How do you adjust receivables? through bad debt write off Credit memos, write-offs
depends on write offs, the system will automatically write
Do you limit the amounts when adjusting receivables? off a debit balance less than .99p Yes
customers are placed into buckets depending on age of
What do your agings look like? debt See attached
Do you have multiple "remit tos"? yes Yes
How are multiple "remit tos" determined for a customer? amount is split between cust accounts By payment method
What credit information is tracked for each customer? aging credit limit and payment history
Do you charge finance charges? not at present No
How do you charge finance charges? n/a N/A
Do you send dunning letters to customers? yes Yes
Do collectors actively call customers on delinquent items? yes Yes
What is the process for tracking actions to collect on delinquent
accounts? a manual diary system is kept Notes on item and or account
Is the process for tracking actions to collect on delinquent
accounts automated? manual Follow up flags can be set to automate process
Do terms and conditions of customer agreements and/or payment
terms change based upon the status of their accounts? no Yes
Do you monitor your collectors performance? yes Yes
What metrics are used to monitor collections performance? past dues as a % of total debt Past due > 60 days, Total past due, collection effciency %

through the artb, exported into excel and data sorted.

This is done on a weekly basis, and customers are
How do you monitor customer account status? chased on a daily basis Check the system and pull reports
We have separate portfolios and customers accounts can
Do you have a separate aging for collectors? no be aged by portfolio
Do you use Debit Memos? no No
How are Debit Memos accounted for? n/a N/A
Why are Debit Memos used? n/a N/A
What items appear on Debit Memos? n/a N/A
Do you use Customer Account Credit Memos? see line 29 Yes
Credit memo is applied against outstanding invoice or
How are Customer Account Credit Memos accounted for? see line 30 invoices
Why are Customer Account Credit Memos used? see line 31 To credit returns, price variances, freight or sales tax
What items appear on Customer Account Credit Memos? see line 32 part number, description and amount
How are adjustments to closed periods handled? see line 62 N/A
How do your customers generally pay invoices?single check --
single invoicesingle check -- multiple invoicesmultiple checks --
multiple invoices all Both
Do you use more than one bank account and/or cash account? no Yes
Do you have customers who pay other customers’ invoices? no Yes
Do you use lockboxes? no Yes
How many lockboxes do you use? n/a 1
What types of payments are received and input? (for example,
check, cash, and so on) cheque, cash, credit/debit cards, bacs, tt's checks, credit cards, ach's, wires

Checks received into bank lockbox. ACH/Wires into

post, bank statement, c/c report. Items are manually
How do you receive and input payments? entered onto system
Do you receive deposits and/or prepayments? we receive pre payments
Do you receive non-customer related payments? yes
How are non-customer related payments accounted for? manually entered onto system
How do you handle payments without remittance information? refer to AR ledger
differenct bank account, credit cards via ACH - checks are
keyed by bank and transmitted nightly to our system
Yes
Yes
manual journal entry when check hits lockbox
call the customer

Barclays are notified and investigate the payment on our

behalf (for all bacs/or transfer payments) Cheques that
are received with no customer detail what so ever are
return to the bank on which they are drawn against, with
How do you handle payments from unknown sources? a covering letter explaining why call the bank
What are your policies and procedures about adjusting
payments? we don't adjust payments N/A
What are your policies and procedures about reversing
payments? duplicated entries are reversed after verification Payments are only reversed if cash is misapplied
How often do you adjust payments? n/a N/A
How often do you reverse payments? infrequently Not often
How many payments do you receive in a month? between 750 to 900 2000
How many checks are returned by the bank in a period? none, 2 received in last year 1 every 3 to 4 months
What are the reasons for checks being returned by the bank? insufficient funds NSF
Who applies cash? Credit controller Cash app team
Keyed by bank and file transmitted nightly, balance is
How is cash applied? manually applied manually by cash team
Do you create chargebacks (Debit Items) for customer
deductions? no Yes
How do you enter/manage a credit amount owed to the customer Credit remains on AR for 6 months then move to the
by your company? see line 79 Customer Advance Account
How do you enter/manage a credit amount owed to your
company by the customer see line 80 N/A
Do you send dunning letters to customers? see line 91 Yes
Do you default other information (payment terms, shipping, tax) at
the Customer Level? no Yes, payment terms and sales tax
Can this information be changed and updated at the time of order
entry? yes Yes
Do you require hard copy of the customer purchase order prior to
order entry? yes Yes
Do you do check customer credit prior to entering an order? system automatically checks Yes
Do you take orders only from approved customers? yes Yes
Do you use the invoice as a ship confirmation to the customer? yes Yes
Do you allow partial payments of invoices? no Yes
When do you send the invoice. With each shipment? yes Yes

we only have the facility to have one billing address per

custome account although we are able to have a number
How many "bill-to’s" do you maintain for each customer? of ship to addresses 1 bill to
no we have a separate shipping note that is sent with the
Do you use the invoice as a ship confirmation to the customer? goods, invoices are posted separate to the goods
Will credit memos be issued automatically upon return, or will you Credit memos are issued only after the returned product
have special procedures for credit memos? credits are manually raised after approval has been evaluated by Quality
How does the credit department get the return goods goodsin return docket with customer correspondence is
information? passed to customer service for the credit to be raised From our RMA System
Is a hard copy credit memo issued? yes Yes
How do you group your customers for credit limits, credit checks? see line 4 N/A
How do you group your customers for statements? see line 5 N/A
How do you group your customers for interest charges for late
payments? no Do not charge interest or finance charges
How do you group your customers for payment rules? by age of debt Signed Contracts or PO
Do you send customers statements? see line15 Yes
Do you receive deposits and/or prepayments? see line 116 Yes
Bullet Points / Notes Gaps (Prima faci)

is it not by creation of the "ship" transaction in f/shift??

examples??
Autoinvoice to be scheduled ???
what are they?

International Sales Rep Balances

What are the adjustments

What are the adjustment and approval limits

reference line no.

reference line no.
reference line no.
reference line no.
reference line no.
What is ACH. Are the credit card payments also coming in through the bank transmission or Lockbox

reference line no.

reference line no.

reference line no.
reference line no.
reference line no.

reference line no.

reference line no.
Questions to Client Replies / Comments UK Replies / Comments US

asset details maintained on

How do you maintain your spreadsheet, accounted for in
Fixed Asset Accounting summary level within 4th shift Manually using Best Fixed
data? general ledger Assets
Which
operations/processes do manual interface between Need to understand what
you want to streamline for spreadsheet and computer Oracle is capable of
Fixed Asset Accounting? system handling
Which
operations/processes do manual interface between Need to review current
you want to eliminate for spreadsheet and computer process to proposed
Fixed Asset Accounting? system process
Are there any time-
intensive Fixed Asset
Accounting
operations/processes that
need to be addressed? no Yes
How do you close an Add new Fixed assets to
accounting period for Fixed in line with our accounting Best and perform monthly
Asset Accounting? proceedures depr. Reports
Is the schedule to close an
accounting period for Fixed
Asset Accounting
documented? yes No
How long does it take to
close an accounting period
for Fixed Asset
Accounting? I/2 hour 30 minutes
How long should it take to
close an accounting period
for Fixed Asset
Accounting? few minutes Don't Know
Is closing an accounting
period for Fixed Asset
Accounting a hard close or
a soft close? hard close Soft
How are adjustments to
closed periods for Fixed
Asset Accounting
handled? processed in the next period N/A
How do you open an
accounting period for Fixed in line with our accounting
Asset Accounting? proceedures N/A
Is the schedule to open an
accounting period for Fixed
Asset Accounting
documented? yes No
How long does it take to
open an accounting period
for Fixed Asset
Accounting? ????????? N/A
Who performs the tasks
associated with opening an
accounting period for Fixed
Asset Accounting? Finance Manager Controller
Who performs the tasks
associated with closing an
accounting period for Fixed
Asset Accounting? Finance Manager Controller
Where in your accounting
cycle do you run standard
reports and statements for
Fixed Asset Accounting? at month end End
What business
performance statistics do
you monitor for Fixed Asset
Accounting? none None
What are your Fixed Asset
Accounting reporting
requirements with respect
to summary or detail asset
formats? Provide report purchases/disposals/depreci Detail Reporting of depr
listing. ation and asset value
What reports do you
currently generate to meet
your Fixed Asset
Accounting reporting
requirements? Provide
examples of each. Include
source (could be manual), asset
user, frequency, or number purchases/disposals/depreci
of copies. ation complete asset listing
Is there any Fixed Asset
Accounting reporting
requirement that your
current set of reports does
not meet? no No
Are your asset categories
unique for each
combination of asset cost
account in your general
ledger, depreciation
method, useful life and
prorate convention? yes Yes

Are fixed assets which use

the same asset account in
your general ledger, ever
split into more than one
group for accounting or tax
depreciation purposes? no
Do you group fixed assets
which use different asset
accounts for reporting
purposes? no Yes
Yes, Office Equip,
Do you have a special Leasehold Impr.,
name (alias) for each Production & Lab, Tooling,
category? no Computer, CIP
How is your corporate and
tax information stored now? ???????????? Best FA System
What systems are you
using to store asset,
vendor, employee and Hard copy of invoices,
location information
What is the current now? 4th shift, excel, word Asset Tags
accuracy of your asset
information? 100% 100%

long leasehold land

&buildings(over period of
lease)/plant&machinery(3 to
7 years)/fitting &equipment(4
What are your prorate to 8 years/ motor vehicles(5
conventions? years) N/A
Do you have any
depreciation ceilings? For
luxury items? no No
What are your Investment
Tax Credit rates, recapture
rates and ceiling rates? ??????? N/A
What are your depreciation
methods? straight line GE Policy
What are your useful lives? see line 30 GE Policy
How do you account for
prior period additions,
retirements or other
transactions in your general prior period transactions form No prior period
ledger? part of the brought balances adjustments
Do you depreciate leased
items, or leasehold
improvements? yes Yes
How many fixed assets
does your company own? 250 and the numbering
How are they numbered? 650 seq. is 000XXX
Do you need to track fixed
assets that are not
depreciated? no Yes
Do you track different
information for different
types of fixed assets? no Yes
What basic information Description, serial #, asset
about each asset do you type, value, date of purchase, location, date, depr
store?
Are your fixed assets vendor method, etc.
located in several
countries? no Yes
How do you number your
fixed assets? sequentially 000XXX
Do you have physical tags
on your fixed assets? yes Yes
Do you track leased assets
using Oracle Assets? no No
What is your oldest date
placed in service for your
fixed assets? 15 years 1990
Do you have standard
depreciation for your fixed
assets? yes Yes
Do you associate your fixed
assets with vendors? yes No
Do you use multiple
currencies when
purchasing, depreciating,
reporting or posting
financial information about
you fixed assets? yes No
What system do you use
presently to do your fixed
asset accounting? see above Best Fixed Assets
What systems do you use
to track and inventory your
fixed assets? 4th shift, excel, Best Fixed Assets
Does your current system
track asset possession by
employee, department, or
cost center? cost center/dept No
asset
What are your monthly purchases/disposals/depreci Original Amt, monthly
reporting requirements? ation Depr, total depr, NBV
Where are your fixed in premises at Marlow and at
assets located? subcontractors(tooling) Wilmington, UK, Hann
How do you report property
values for tax purposes? n/a Yes
Do you have special names
for each location (aliases)? no Yes
Do you assign fixed assets
to employees? yes No
In what countries are your
fixed assets located? United Kingdom USA, UK, Germany
Explain the accounting
structure and reporting each class of asset has a
methods used to unique general ledger code
consolidate your asset cost for balance sheet cost and
and depreciation depreciation and for p&l a/c Manually entered into
expenses? depreciation system from CIP account
Do you post your asset
financial information in
summary or detail to your
general ledger? in summary Summary
How many corporate
depreciation books do you
maintain? If more than one,
why? one 1

How many different tax

depreciation books do you
maintain in each of your
companies? How are they
used? one 1
Do you adjust depreciation
in your tax books? no Yes
Do you maintain any other
types of depreciation or
asset valuation books? no No
How often do you calculate
depreciation for corporate
accounting, tax, and capital
budgeting purposes? monthly Every Quarter
How many fixed assets do
you purchase each
accounting period? between 1 and 5 Varies

How often do you transfer

large numbers of fixed
assets from one person,
cost center, or location to
another? never rarely

How often, and for what

reasons, do you change
fixed asset depreciation
method or life for a single If Corporate changes
asset? never useful life or depr. Method
How often do you change
the useful life, depreciation
method, or prorate
convention of all fixed
assets in a category? never Rarely
How many retirements do
you do per period? between 1 and 3 Varies

Do you amortize
adjustments made in the
prior period over the
remaining useful life of the
asset or do you expense
the catch- up depreciation expense catch up in current Expense catch-up in
in the current period? period current month
Do you want your fixed
assets automatically added
from your feeder Accounts
Payable system? yes Yes
What Accounts Payable
system do you use? 4th shift 4th Shift
Do you ever retire fixed
assets in the same period
they were purchased? no No
How often do you perform
physical inventories of your
fixed assets? annually Once every 5 years
Do you cycle count your
assets? no No
Bullet Points /
Notes Gaps (Prima faci)
1. Items
1.1. Approximately, how many inventory items do you have?
1.2. Describe how you categorize items.
1.3. What basic information do you record about items:
1.3.1. description?
1.3.2. unit of measure?
1.3.3. category?
1.3.4. serial number?
1.3.5. lot and shelf life control?
1.3.6. receiving location?
1.3.7. inspection required flag?
1.3.8. shipping and order entry information?
1.3.9. purchasing information?
1.3.10. other?
1.4. Is there anything you track about items that might be considered out of
1.5. Describe how you record and track item revisions (change control).
1.6. Describe how you record cost information on items:
1.6.1. unburdened standard cost,
1.6.2. average cost,
1.6.3. material burden rate,
1.6.4. burdened standard cost,
1.6.5. estimated cost,
1.6.6. alternate costs,
1.6.7. pending costs.
1.7. How do you specify the cost of sales account for inventory transactions
1.8. Do you use cross-references with items? For what purpose?
1.8.1. old item number?
1.8.2. vendor part number?
1.8.3. other?
2. Transactions
2.1. What types of inventory transactions do you perform:
2.1.1. receive material from a vendor?
2.1.2. return material to a vendor?
2.1.3. receive customer returns (return material authorizations)?
2.1.4. release from receiving inspection?
2.1.5. transfer material between warehouses, manufacturing facilities or bra
2.1.6. transfer material between inventory subdivisions?
2.1.7. track material in-transit?
2.1.8. account issue and receipt?
2.1.9. unit of measure conversions?
2.1.10. view on-hand and available-to-transact quantities for a given item d
2.1.11. other?
2.2. How do you project availability for an item at any future point in time? (
3. Replenishment Planning
3.1. Describe what item planning methods you use:
3.1.1. master production schedule (MPS) planning?
3.1.2. material requirements planning (MRP)?
3.1.3. min-max planning (minimum quantity at which to reorder and maximu
3.1.4. reorder point planning?
3.1.5. other?
3.2. Do you use safety stock in any of your planning calculations?
3.3. How do you keep track of lead time required to procure or manufacture
3.4. Do you use a time fence to prevent items from being ordered before th
3.5. Do you keep track of order costs and carrying costs for items?
3.6. Are purchase requisitions automatically generated to maintain optimal
4. Forecasting
4.1. Describe how you forecast future demand for items.
4.2. How do you calculate demand history based on past transactions to pe
4.3. Do you use a statistical algorithm to generate a forecast based on any
4.3.1. service level (probability that an order can be filled immediately from
4.3.2. alpha factor (to smooth demand across periods)?
4.3.3. trend model (smooth on upward or downward trend in demand based
4.3.4. seasonality model (based on seasonal adjustments)?
5. Accuracy
5.1. How frequently do you perform a physical inventory?
5.2. Describe how you perform a physical inventory. Do you use physical in
5.3. Do you use cycle counting for inventory items? How do you decide wh
5.4. Do you assign ABC (activity based costing) classes to inventory items?
5.5. Describe how adjustments to quantity and value are made as the resu
6. Warehouse
6.1. Describe the structure of your organization. How many warehouses, re
6.2. Where are these units located?
6.3. Are the contents of each warehouse divided into subinventories?
6.4. Do you track items at the stock locator level (row, shelf, bin)?
7. Inquiries
7.1. What types of on-line inquiries do you require:
7.1.1. transaction inquiries – view all transactions made against inventory it
7.1.2. item inquiries – on-hand, planning, status, cycle count?
7.1.3. control inquiries – inventory valuation and cost information?
7.1.4. on-hand inquiries – view item quantities in subinventories, locators, i
7.1.5. other?
8. Reports
8.1. What types of reports do you require:
8.1.1. transaction reports?
8.1.2. management reports (on-hand, planning, accuracy, status)?
8.1.3. control reports (value your inventory and adjust costs)?
8.1.4. other?
8.2. Any special reporting requirements?
9. Interfaces
9.1. What internal systems are interfaced with inventory:
9.1.1. order entry?
9.1.2. distribution requirements planning?
9.1.3. barcoding?
9.1.4. purchasing?
9.1.5. receivables?
9.1.6. revenue recognition?
9.1.7. work in process?
9.1.8. engineering?
9.1.9. materials requirements planning?
9.1.10. bills of material?
9.1.11. accounts payable?
9.1.12. fixed assets?
9.1.13. general ledger?
9.1.14. human resources?
9.1.15. other?
9.2. Are there interfaces with any external systems:
9.2.1. EDI (vendor, freight partner, advanced shipping notice, customs)?
9.2.2. other?
10. Security
10.1. Describe duty separation requirements.
10.2. Are there any restrictions on inventory transactions by user or organiz
11. Other
11.1. List up to five best features of current system.
11.2. List up to five deficiencies of current system.
11.3. Are they any other special requirements that have not been discusse
12. Volumes
12.1. How many inventory items do you hold?
12.2. How many receiving transactions do you perform on average monthly
12.3. How many issue transactions do you perform on average monthly?
12.4. How many inventory organizations and warehouses do you have?
age or value)?