BUSINESS SCOPE

KK Technology business is based on milling and sales of parboiled RICE

The company buys paddy rice and allow it to go through 4 stages of production process
and come out with at lease three final products like Grade 1 parboiled rice, grade 2
parboiled and sortex reject.

STANDARD OF PROCEDURES:
INVOICING PROCESS
PREPARATION OF INVOICE TO CLIENTS AND FOLLOW UP
WALK-IN CUSTOMERS

Walk-in customers are attended to by the Showroom Officers who

would raise a pro forma invoice/Quote after agreeing on the product
and price.

The accounts department generates system invoices to be signed off

by the Marketing Manager

The Cashier raises receipt for cash/cheque/transfers collected.

If the mode of payment is by cheque/transfer, products would not be

released to the customer until the payment is confirmed or credited
to bank account.

CREDIT CUSTOMERS

Transactions with our credit customers are guided by the credit

control policy of the Company. A system Pro forma invoice/Quote is
raised by the sales person.

Credits can only be granted to approved customers based on some

criteria set by the MD/CEO.

Sales Invoices are raised as soon as signed copies of the waybills

are received by Customers and this will be attached to the approved
quotes earlier generated.

The Salesperson should ensure that invoices are dispatched to the

customer within 24 hours.
 Invoices raised shall contain the following information: name of
the client, date of issue, invoice number, payment term i.e due date,the
bank details for payment and the endorsement of the authorized signatories
together with other default important information.

FOLLOW-UP ON ORDERS/INVOICES

The Salesperson constantly follows up invoices dispatched to

clients to ensure that they are paid on due date. (Hence, system
should set up a reliable ageing analysis)

Queried invoices are resolved promptly by the Salesperson and

whenever there is an error /irregularity on the invoice submitted,
a credit note/invoice reversal module that will have a direct link
to all invoices generated would be raised to cancel such invoice
and the correct one issued. All credit notes, supported with
documentary evidence must be signed off by the MD/CEO.

We need to close the gap between the period of order placement and
actual delivery. When there is a delay in servicing an order, the
Sales Person managing the customer should raise the red flag so
that appropriate measures can be taken to resolve any perceived
bottleneck.

The Credit Control Officer shall prepare an ageing report on key

customers and high volume transactions at the end of each month.

Payment advice, transfer instructions and cheques are obtained by

the Sales team and forwarded to finance department for receipting
and recording.

For non LPO transactions, products should not be released to

customers until the outstanding balance is received and confirmed
in our bank statement.

Inventory Department
The inventory system in use is perpetual and the valuation method is FIFO. However, stock counts will be
done at least, twice in a year and adjustments are made after the counts.

ORDER PROCESSING

Having generated the order by sales department, the order should be approved manually by the sales
manager.

The store/Inventory that is in charge of receiving into the system should then take care of system proper
check/approval and receiving into the system.

RECEIVING GOODS

On taking delivery of goods from the supplier, the security department registers truck details and the
product being delivered.

Deliveries are witnessed by:

The store receiving officer,

A security personnel.

Having checked the quantity of the goods received by the Storekeeper. A Goods Receipt Note (G.R.N.) is
then prepared by the receiving officer to acknowledge receipt of the goods. This is usually in 3 copies.

Accounts Copy - Accounts department

Duplicate copy – Store Copy

Duplicate Copy – Book Copy

Goods Receipt Notes are to be signed by:

The receiving officer,

The Inventory Accountant

At the receipt of this item, the inventory module and bin cards are updated.

In case of a new stock category, a new bin card is raised and goods are arranged in their appropriate
shelves.

RETURN INWARD
Return inwards/rejected items should be properly documented and passed on to finance department for appropriate
treatment.

For samples, the store keeper must raise the necessary documents and get it approved from supervisor who will
then ensure proper adjustments are made and the accounts updated on the system. the finance should quote the
customer’s name. Note, the finance should quote the customer’s name.

Procedure:
The sales person will fill a stock requisition note which shall be duly approved by Sales manager. The requisition
note will be given to storekeeper for treatment then to finance for treatment before the samples shall be released.
Whenever the sample is returned the storekeeper will raise a GRIN(goods returned inward note) and update the
necessary documents including the requisition note quoting the GRIN number and give the sales person his/her
own copy for reference.

ISSUING

The Production Manager receives the order and prepares Production order sheet – to determine what
products are needed to produce.

A material requisition voucher will be raised by the storekeeper as authorization to issue to production
floor. The MRV is approved by Production Manager.

The issued raw material is posted into the system by the accounts department while the store updates the
bin cards.

The bin card is updated each time there is an issue, and bin card balance is agreed to physical count.

Stock records are maintained on the bin card, and system.

 Random samples of stock are selected at the end of each month for counting to ensure that the bin
card/system balance agrees with physical quantity.

 A general stock taking exercise shall be conducted quarterly in all our locations across the Group.
Shortages/Surpluses identified should be thoroughly investigated and necessary adjustments passed.

 The Management reserves the right to recover the value of stock shortages from the Storekeeper’s
salary if the anomaly cannot be resolved.

 Return inwards/rejected items should be properly documented and passed on to finance department
for appropriate treatment.

For samples, the store keeper must raise the necessary documents and get it approved from
supervisor who will then ensure proper adjustments are made and the accounts updated on the
system. the finance should quote the customer’s name.

Any goods taken out on stop gap, exhibition or otherwise by sales reps will be charged to their
accounts and taken out when returned to the store or back to Supplier i.e, SOKOA. This will help to
take care of adjustment of the value initially brought in to the system.

ITEM RETURNED OUTWARD FOR CONVERSION:

In this case, the item being sent to Supplier, Sokoa precisely, for conversion should be sent with a debit note together
with the waybill. That is, the store keeper must ensure he raises the waybill, send to finance, Inventory Accountant
for necessary adjustments and preparing of a debit note to supplier before releasing the item for delivery.

For old stock, the debit note will be charged at the old cost price while the current cost price will be used for new
stock. This cost template is suggested because of some values the supplier will still get from the item being returned.

From supplier’s end, the supplier, Sokoa will raise an invoice to TCCL for item being converted to based on Sokoa’s
selling price.

RECEIPT PROCESS
Customer issues cheque/direct credit and Informs Sales team when payment for invoice falls due
Sales Collects cheque/remittance advice from customer and sends to accounts department
For direct credit/transfers, receivable officer sends mail when alert is received and sales person in charge of
the particular customer gives detail of the invoice paid.
Accounts Deposits customer cheques, Confirms direct credit and issues receipt (after confirmation).
Account Posts into the system with deposit slip/receipt number/reference number.

PAYMENT PROCESS
Finance department collects suppliers invoice though procurement/store officers and generates suppliers invoice
through one of the Account payable modules depending on the transaction involved.

The invoices are arranged in order of priority and payment requests are raised for approval by the CFO.

After approval, Cheque and cheque payment vouchers are raised, approved and posting are made in to the system
using vendor payment and payment modules or as the case may be.

For inventory items invoicing, purchases module is used while service purchase module is used for service transaction.