INTRODUCTION

As per Section 21(a) of the Act, the utility of CESU has been vested in TPCODL
from 01.06.2020 (the “Effective Date”) .
As per the Share Acquisition Agreement, TPCL has acquired 51% of the equity
shares of TPCODL. Therefore, TPCL and GRIDCO shall hold 51% and 49% of
the equity shares respectively in TPCODL.
Previously there was an accounts manual in CESU, which was followed for
maintaining the books of accounts and financial reporting. There were five digit
account heads in CESU covering the assets, liabilities, incomes and expenses.
Those five digit account heads were used in TallyERP9 for day to day accounting
in accounting units.
After formation of TPCODL, it was decided to use six digit account
codes and to shift to SAP software instead of TallyERP9 for easy consolidation of
the accounts of TPCODL with its holding company TPCL. Again migration to
SAP has its advantages of inbuilt internal control mechanism, data security and
best accounting practice as per the global standard. Therefore instead of five
digit account heads, six digit account heads were allotted. Those new codes
were migrated to SAP software.
During the above process it was felt to make a concise accounts
manual for the end users. In SAP most of the practice followed in previous
accounts manual is same as before with the use of new six digit account heads.
In case of material management and procure to pay process , there is a massive
change from the previous practice keeping the best practice of SAP. Except
those process other process are the same as before. This concise accounts
manual has been prepared covering the area of same practice using new
account heads of six digits. For ready to use old account heads has been
mentioned in most of the entries along with the new six digit account heads.

This can be used as a guide book for the users in day to day accounting in
TPCODL. As it is based on the previous accounts manual, the descriptive part
has been curtailed with direct approach to the entry part.

SALES & OTHER INCOME

Account Group : 23, 46, 48, 61, 62 & 78- Previously used

This chapter deals with accounting of Sale of Energy, Security deposit, Revision of
bills and Other Income.

Assessment:

On the basis of the information from IT CELL of TPCODL, the finance section at the
divisional level will pass Assessment of revenue entry through journal as mentioned below.

Page 1 of 26
 Debit Credit
Sundry Debtors for sale of Power ( Electricity Charges including 100000
Demand Charge Under different Categories)- 112020 to 112022
112021 200000
112022 300000
Sundry Debtors for sale of Power- Electricity Duty- 112030 25000
Sundry Debtors for recovery of cost of Meter – 112032 30000
Sundry Debtors for payment of Monthly Minimum Fixed Charges – 35000
112036

40000
Sundry Debtors for other Charges( like Customer Charge,
Reconnection Charge etc)- 112038

To
Revenue from Sale of Power – ( Electricity Charges including 100000
Demand Charge Under different Categories)- 300000 to 300002
300001 200000
300002 300000
To Electricity Duty Payable- 214230 25000
To Revenue from Sale of Power – Monthly Minimum Fixed 35000
Charges- 300010
To Recovery of Meter cost ,service lines and capacitors- 300012 30000
To Miscellaneous Charges from Consumers -Reconnection fees- 10000
300015
To Miscellaneous Charges from Consumers -Service connection
fees-300016
To Miscellaneous Charges from Consumers -Customer Charges 30000
& others-300017
To Delayed payment surchages-302001 10000
To Overdrawal Penalty – 302002 5000

The above entry has to be passed in two steps in SAP.

1st step is Parking of the above entry- A junior person will pass the above entry in SAP using the transaction
code FV50.
2nd step is the passing of the parked document. The transaction code is FBV0.
The important thing is the maker of the document who park the document cannot post it. So long as the
document is not posted , it will not affect the GL balances.
Refer Demonstration video-1

(b) Every day from the field units cash, cheque, bank drafts shall be received at the division office with the
collection information in form of DC sheets or some consolidated report . Sometimes the counterfoil of cash

Page 2 of 26
deposits shall be received at the division along with DC sheet or collection summery in form of consolidated
report. It present ISU module has not been implemented, so all collection shall be put in a control head like
23.100 previously. Only at the month end when ED software will run then collection bifurcation will come out.
Instead of 23.100 the new GL code will be 112050-Sundry debtor for collection.

When cash, cheques,drafts will be received at the division office , the entry has to passed in SAP in the same
way as above using the maker, checker mechanism.
The transaction code for maker or parking of the document is FV50.
Passing of the parked document shall done using transaction code-FBV0.
The entry shall be as under.
Debit Credit
Cash and cheques in Hand-114004

To Collection from debtors.-112059 ******

On the next day when the cash, cheques, drafts are deposited, the contra entry shall be passed as under.
I have taken the example of SBI of BCDD-I for depositing cheques drafts, cash etc.
Debit Credit
Bank A/c 11109325244 SBIN BCDD-I-114055 ******

Bank A/c 50200022076100 HDFC BCDD-I- 114054 ******

Bank A/c 127511100000025 ANDB BCDD-I- 114052 ******
To Cash and cheques in Hand-114004 ******

When counter foil is received only at the division with statement of collection. The division has to use the
same date on the counter foil for passing the transaction as under.
Debit Credit
Bank A/c 50200022076100 HDFC BCDD-I- 114054 ******
To Collection from debtors.-112059 ******

All the above entry can be passed following the maker checker mechanism using the same two numbers of
transaction codes as above. The demonstration is there in Demonstration video-1.
At the month end when the ED software will run, the division has to pass the collection and
collection contra entries as per the present practice using the same two numbers of transaction

Page 3 of 26
codes for maker and checkers. One difference is using the new GL codes of six digits against
five digit GL codes. In the following example old code has been given first and five digit new
code has been written on the last of the description for better understanding and applications.

Debit Credit
23.100- Collection from debtors.-112059 ******
23.301- Collection from LT consumers-112050 ******

23.302- Collection from HT consumers-112051 ******

23.303- Collection from EHT consumers-112052 ******

23.321- Collection of ED from consumers-112070 ******

23.342-Collection of Recovery of cost of meter-112072 ******

23.343-Collection from consumer for theft of power-112073 ******

23.344-Collection from consumer for penalty-112074 ******
23.345- Collection From Temporary Connection-112075 ******
23.346-Collection of Monthly Minimum fixed charges-112076 ******

23.347-Collection from consumers for other charges-112078 ******

23.348-Collection from consumers for Reliability Surcharges-112077 ******

Collection contra entry has to be passed as under.

Debit Credit
23.311- Collection from LT consumers-Contra-112060 ******

23.312- Collection from HT consumers-Contra-112061 ******

23.313- Collection from EHT consumers-Contra-112062 ******

23.331- Collection of ED from consumers-Contra-112080 ******

Page 4 of 26
 23.352-Collection of Recovery of cost of meter-contra-112082 ******

23.353- Collection from consumers for theft of power- Contra-112083 ******

23.354- Collection From Consumers for Penalty-Contra-112084 ******

23.355- Collection From Temporary Connection- Contr-112085 ******
23.356-Collection of Monthly Minimum fixed charges-contra-112086 ******
23.357-Collection from consumers for other charges-Contra-112088 ******

23.358-Collection from consumers for Rel. Surc(Contra)-112087 ******

23.101-Sundry Debtors for Sale of Power-LT-112020 ******

23.102- Sundry Debtors for Sale of Power-HT-112021 ******

23.103- Sundry Debtors for Sale of Power-EHT-112022 ******

23.201- Sundry Debtors for Electricity Duty-112030 ******

23.701 -S.Debtors for Recovery of Cost of Meter-112032 ******

23.702 S.Debtor for Recovery for Theft of Power-112033 ******

23.703 S.Debtor for Recovery of Penalty-112034 ******

23.704 S.Debtor for Temporary Connection-112035 ******

23.705- S.Debtors for Pyt of MMFC-112036 ******

23.706- Reliability Surcharge-112037 ******

23.790- S.Debtors for Other Charges-112038 ******

(d) The Divisional computer cell will provide the rebate allowed to the customers on monthly basis ,
which will be accounted for through Journal entry as mentioned below.
Debit Credit
78.821-Rebate to consumers for timely payment of *****
Dr.
bill-LT - 414007
78.822-Rebate to consumers for timely payment of Dr.
*****
bill- HT – 414008
78.823-Rebate to consumers for timely payment of *****
bill- EHT – 414009

To

Page 5 of 26
Sundry Debtors for sale of Power *****
( Electricity Charges including Demand Charge under
different categories) - 112020 to 112022

3.1.7 Electricity Duty:

Total of electricity duty collected from all categories of Consumer during the month was adjusted
against 23.321 was adjusted against sundry debtors through collection contra entries. The collection
figure was transferred to 46.302 by debiting 46.301 as per the previous practice. Again DCV was
passed for deposit of Electricity Duty by debiting 46.303 and crediting the ED bank. The same
practice shall continue, only the GL account code has been replaced instead of old five digit GL
codes.
The same mentioned here as under. The new code has been provided with the old code for better
understanding and application.

Collected ED adjustment .

Debit Credit
46.301- Electricity Duty Payable-Provisional-214230 ******

46.302- Electricity Duty Payable-Final Assessement (collected ******

Amount)-214231

When Electricity duty has been deposited in the government account. Instead of two numbers of GL
codes for ED collection adjusted and ED deposited, only one code is used both for collection
adjustment and ED deposited in SAP for which new six digit code 214231 shall be used.
Debit Credit
46.303- Electricity Duty Paid-214231 ******

24.302-Bank A/c 11109325244 SBIN BCDD-I-114055 ******

Following returns are required to be filed in duplicate with Government of Orissa for CESU as
required under Rule 7 Orissa Electricity Duty Rules, 1961:

Page 6 of 26
 Particulars Periodicity To be
submitted by
1. Return in duplicate showing Half year Within 60 days
information regarding ending from expiry of
energy supplied to consumers 30th September half year.
electricity duty charged there and
on recovered and paid to 31st March.
Government (Form A).

2. Return in duplicate of Year ended Within 3 months

Electricity Duty for year 31st March. from close of
ended 31st March. financial year.
(Form B)

Further necessary books of Account is to be maintained as per the format prescribed under Rule 6 of
the Electricity (Duty) Rules,1961.

3.1.8 Accounting for Penalty imposed on Consumers.

When penalty imposed on consumers for different reasons by the competent authority, the same
will be intimated to the Divisional Computer cell. The Divisional computer cell will provide the details
of bills raised to the accounts section at the end of the each month. On the basis of such statement,
the finance section at the division level will account for the same through journal as follows :
The same practice shall be followed instead of old GL, new GL codes to be used.

Debit Credit

23.702-Sundry Debtors for recoveries- theft of power – 112033 *****

23.703-Sundry Debtors for recoveries of Penalty - 112034 *****

To 61.710-Penalty for Theft of Power – 300013 *****

To 61.720-Penalty from Consumers – 300014 *****

3.1.9 Bill Revision

Accounting entry for the downward revision:

Revenue from Sale of Power – ( Electricity Charges including
Demand Charge Under different Categories)- 300000 to 300002
Electricity Duty Payable- 214230 *****
Revenue from Sale of Power – Monthly Minimum Fixed *****

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 Charges- 300010
Recovery of Meter cost ,service lines and capacitors- 300012 *****
Miscellaneous Charges from Consumers -Reconnection fees- *****
300015
Miscellaneous Charges from Consumers -Service connection *****
fees-300016
To Miscellaneous Charges from Consumers -Customer Charges *****
& others-300017
Delayed payment surchages-302001 *****
Overdrawal Penalty – 302002 *****
To Sundry Debtors for sale of Power ( Electricity Charges *****
including Demand Charge Under different Categories)- 112020 to
112022
To Sundry Debtors for sale of Power- Electricity Duty- 112030 *****
To Sundry Debtors for recovery of cost of Meter – 112032 *****
To Sundry Debtors for payment of Monthly Minimum Fixed *****
Charges – 112036

*****
To Sundry Debtors for other Charges( like Customer Charge,
Reconnection Charge etc)- 112038

Figures pertaining to earlier year(s) i.e. other than the year in which bill revision has been made shall be
taken as prior period income (Code 65.210) Now new GL codes to be used 304000.

Page 8 of 26
c) Accounting for Upward Revision:

Debit Credit
Sundry Debtors for sale of Power ( Electricity Charges including *****
Demand Charge Under different Categories)- 112020 to 112022
Sundry Debtors for sale of Power- Electricity Duty- 112030 *****
Sundry Debtors for recovery of cost of Meter – 112032 *****
Sundry Debtors for payment of Monthly Minimum Fixed Charges – *****
112036

*****
Sundry Debtors for other Charges( like Customer Charge,
Reconnection Charge etc)- 112038

To
Revenue from Sale of Power – ( Electricity Charges including *****
Demand Charge Under different Categories)- 300000 to 300002
To Electricity Duty Payable- 214230 *****
To Revenue from Sale of Power – Monthly Minimum Fixed *****
Charges- 300010
To Recovery of Meter cost ,service lines and capacitors- 300012 *****
To Miscellaneous Charges from Consumers -Reconnection *****
fees-300015
To Miscellaneous Charges from Consumers -Service *****
connection fees-300016
To Miscellaneous Charges from Consumers -Customer Charges *****
& others-300017
To Delayed payment surchages-302001 *****
To Overdrawal Penalty – 302002 *****

.
3.3.0 Security Deposit from Consumers:
The process of receipt of security deposit is same as before . The only difference is the use of
new six digit GL codes instead of old codes.
When security deposit money is included in 23.100-Sundry debtor for collection. or 112050
in new GL code. We can pass entry to transfer the same as under at the month end when
running ED software is complete and allocation is found out.

Debit Credit
23.100- Collection from debtors.-112059 *****

To

48.101 Security Deposit From Consumers-LT-220010 *****

Page 9 of 26
 48.102 Security Deposit From Consumers-HT-220011 *****

48.103 Security Deposit From Consumers-E.H.T-220012 *****

Interest on security deposit to consumers, the entry is same as before but only difference is
using of new GL codes instead of old five digit GL codes.

Debit Credit
78.710-Interest on Security Deposit from Consumers –414006 *****

To

46.928-Income Tax deducted at source from interest *****

payment on Security deposit from Consumers-214101
-
48.301 to 48.303-Interest Payable on Security Deposit from *****
Consumers –214311 to 214313

(b)
Debit Credit
48.301 to 48.303-Interest Payable on Security Deposit from *****
Consumers – 214311 to 214313
To
23.101 to 23.103-Sundry Debtors for sale of Power *****
( Electricity Charges including Demand
Charge Under different Categories)- 112020 to 112022

At the month of march of every year provision for interest on security deposit has to be provided as per the
previous practice with the reversal of the same in the 1st day of the next year. Only difference is new GL
codes shall be used instead of old GL codes.

allowed for each month and the

The Divisional computer cell will provide the category wise rebate
same shall be accounted for through journal by passing the following entry :
Debit Credit
78.821-Rebate to consumers for timely payment of bill *****
- LT - 414007
78.822-Rebate to consumers for timely payment of bill *****
- HT – 414008
78.823-Rebate to consumers for timely payment of bill *****
- EHT – 414009
23.101 to 23.103-Sundry Debtors for sale of Power *****
( Electricity Charges including Demand
Charge Under different Categories)- 112020 to 112022

Page 10 of 26
 3.7.0 Reconciliation:

3.7.1 At Division level the sub ledger for HT/EHT consumers will be maintained manually/ through computer.
For LT consumers the sub ledger will be generated through computer at the computer cell of the concerned
Division. In future on switching over to ERP Package for billing purpose, the entire sub ledger for different
category of consumers will be generated through the computer. At the end of each quarter proper
reconciliation has to be made between Sub ledger balances with General ledger balance for different
category of consumers under 23 Group. This shall be done without considering the opening balances i.e. only
transactions for the quarter (either net Dr or net Cr.) shall be compared with General Ledger Balance. This
shall be done by obtaining summary figures from IT Billing Section month wise in respect of the following
from each category wise (a) Assessment (b) Bill revision (c) Collection and comparing the same with
accounting entries passed. In case the same does not tally, necessary reconciliation shall have to be done at
the Divisional level by next quarter end.
Annexure – III-1
Statement of Downward Revision of Bill for the Month of ________________

Category Total Break up financial Breakup of Component wise revision

Amount year wise of revised
of amount
Revision Financial Amount Electricity Over Elect. Delayed Other Total
Year Charges drawal Duty Payment Charges
incuding penalty Surcharge
demand
Charges

Total

Annexure – III-2
Statement of Upward Revision of Bill for the Month of ________________

Category Total Break up financial Breakup of Component wise revision

Amount year wise of revised
of amount

Page 11 of 26
 Revision Financial Amount Electricity Over Elect. Delayed Other Total
Year Charges drawal Duty Payment Charges
incuding penalty Surcharge
demand
Charges

Total

Annexure – III - 3

Statement of Temporary Service Connection for the month of _____________

Sub-division: Division:

Sl. Name & Period Estimated Amount Amount Collected

No. Address of Electricity
of the to be used
Consumer

E.C. E.D. Total MR. E.C. E.D. Total

No.

Total

Page 12 of 26
Cash , Bank transactions for temporary advance, imprest etc.:-

Imprest –

24.210 – Permanent imprest with officers/staffs-108123 Dr

To 24.110-Cash in hand General cash-114003 Cr

Temporary Advance –
Account code to be debited
24.220-Temporary Advance with disbursing officers-108124 Dr
To 24.110-Cash in hand General cash-114003 Cr
To 24.401- General bank- 114051- Bank A/c 127511100001909 ANDB BCDD-I Cr
(If paid through cheques/bank transfer in favour of officials)

Settlement of temporary advances.

Respective Head of Expenditures-Refer to the new GL codes Dr.
To 24.220-Temporary Advance with disbursing officers-108124 Cr.

Similarly for imprest settlement the entry shall be as under.

Respective Head of Expenditures-Refer to the new GL codes Dr.
To 24.210-Temporary Advance with disbursing officers-108123 Cr.

Postage purchase Postage in Hand –

76.112 – Postage & Telegram -421035 Dr.

To To 24.110-Cash in hand General cash-114003 Cr.

The closing balance at the end of every month should be counted physically with
reference to the register of postage stamps .

Page 13 of 26
 2. Such closing balance will be accounted for through journal by debiting 24.120-
Postage Stamp on hand and crediting 76.112- Postage & Telegram. Such entry
will be reversed on the 1 st of succeeding month. New code to be used as under with the
same practice is as under.
24.120-Postage Stamp on hand-114005 Dr.
76.112 – Postage & Telegram -421035 Cr.

Contra entry shall be passed with the same practice. The only difference is use of new
GL codes instead of old codes.
4. The cheques which might not have been encashed within six month of issue shall be

treated as stale cheque and the same will be accounted as under.

24.401- General bank- 114051- Bank A/c 127511100001909 Dr.
ANDB BCDD-I

To 46.910 Stale Cheque Account. -214305 Cr.

Fresh cheque shall be issued only on receipt of old cheque. On issue of fresh cheque the

same will be accounted for in the General Cash Book as under.

46.910 Stale Cheque Account. -214305 Dr.

To 24.401- General bank- 114051- Bank A/c 127511100001909 Cr.

ANDB BCDD-I

Comparison has to be made for debits appearing in the Bank statement for payment /charges
debited by bank directly. The total amount of Bank Charges for the month will be accounted for
as under.

Page 14 of 26
 78.881-Bank Charges.414001 Dr.

To 24.401- General bank- 114051- Bank A/c 127511100001909 ANDB BCDD-I Cr.

In the same way bank charges has to be accounted for each bank book at the month end. The
only difference is using new GL codes for each bank account as defined.
Power Purchase:

The same accounting procedure has to be followed for power purchase bill as before.
Only instead of five digit GL codes six digit GL codes shall be used in SAP. Under the
following entry in addition to the old GL codes new GL codes are used after the
description of the old GL codes for understating and application in SAP. For power
purchase liability only one GL code has been created i.e 210003 instead of six numbers
of codes previously used.

70. 144 Power purchase -400000 Dr. ****

70.145 Transmission Charges -400001 Dr. ****
70.146 SLDC Charges -400002 Dr. ****
70.147 Year end adjustments -400050 Dr. ****
70.148 DPS Charges on Power Purchase due-400003 Dr. ****

70.149 Fuel Price Adjustment Charges - 400004 Dr. ****

To
41.115 Sundry creditors for purchase of power -210003 Cr. ****

41.115 Sundry creditors for purchase of power-210003 Dr

To
Bank A/c 380804040131025 UBIN RES-114259 Cr.

Materials Purchase: Already standard SAP procure to pay process has been implemented.
For that purpose separate document is available for day to day transactions.

Page 15 of 26
 Capitalisation of different work :
Accounting entry for capitalization of Capital Works through JV is as follows:
Respective GL codes shall be used. Refer the exact new GL codes. The first three
digits 117 is used with XXX.
10.xxx – Land and land rights-117XXX Dr. *****
10.xxx- Building-117XXX Dr. *****
10.xxx - Other Civil Works-117XXX Dr. *****
10.xxx- Plant & Machinery -117XXX Dr. *****
10.xxx- Lines, Cable Networks etc. -117XXX Dr. *****
To 14. xx1 – Capital Work in progress – Material-117XXX *****
To14.xx2- Capital work in progress – Labour Payment-117XXX *****
To 14.xx3- Capital work in progress – Overhead-117XXX *****
To 14.xx4- Capital work in progress – 117XXX *****
Contract Payment(Turnkey Contract)

Total Expenditure and adjustment of 6% Supervision Charges will be accounted

for through journal by passing the following entry.
47. xx1 : 6% Deposit Works – Deposit-218005 Dr. *****

To 75.910: Employees cost charged to deposit works -408999 *****

For capitalisation of 6% deposit Work total estimated cost (100%) as per the
Estimate Register will be capitalized through journal by passing the following
entry..
10.xxx – Fixed Assets-117XXX Dr. *****
To 55.110- Consumer’s Contribution towards cost of ******
capital Assets-218001

Page 16 of 26
 INTER - UNIT TRANSACTIONS

Account Groups : 31, 32, 33, 34, 36 & 37 previously used.

same practice shall be followed with the new six digit GL codes.

ESTABLISHMENT EXPENSES

After generation of pay roll, the same will be accounted for through a Journal voucher by
passing the following entry. In the new GL no separate GL codes has been provided for
executives and non executives with respect to component of salary.
75.201-Salary – Basic, Special Pay, Grade pay –(Executive) -408000
Dr.
75.202-Salary – Dearness allowance (Executive)-408001
Dr.
75.203-Salary – H.R.A (Executive) 408002
Dr.
75.204-Salary – Medical Allowance (Executive) 408034
Dr.
75.205-Salary – Incentive Allowance (Executive ) -408009
Dr.
75.206-Salary – Other allowance (Executive) -408009
Dr.
75.207 - Conveyance allowance (Executive) -408003
Dr.
75.208-Fixed Travel Allowance (Executive) -408037
Dr.
75.301 -Salary – Basic, Special Pay, Grade pay (Non-Executive) 408000
Dr.
75.302-Salary – Dearness allowance (Non-Executive) -408001
Dr.
75.303-Salary – H.R.A (Non-Executive) 408002
Dr.
75.304-Salary – Medical Allowance (Non-Executive) 408304
Dr.
75.305-Salary – Incentive Allowance (Non-Executive ) 408009
Dr.
75.306-Salary – Other allowance (Non-Executive) -408009
Dr.
75.307-Conveyance allowance (Non-Executive) 408003
Dr.

Page 17 of 26
 75.308-Fixed Travel Allowance (Non-Executive) 408007
Dr.
75.401-Salary (Contractual) -421101
Dr.
75.402-H.R.A (Contractual) -421101
Dr.
75.403-Other Allowances (Contractual) -421101
Dr.
75.602 – Stipend to Apprentices 408038
Dr.
To
27.101- Loans and advances to Staff – IB – House building -108105
27.102- Loans and advances to Staff – IB – Car-108106
27.103 - Loans and advances to Staff – IB – Scooter/Motor Cycle-108107
27.105 - Loans and advances to Staff – IB – Others-108108
27.106 - Loans and advances to Staff – IB – Special House building Adv.-
108109
27.203- Loans and advances to Staff – IB – Salary Advance-108112
27.208 - Loans and advances to Staff – Festival Advance-108114
27.210 – Loan and advances to staff – Wage Board Advances-108115
44.401 – Income Tax deducted at source on salaries-214105
44.402-- Employees Own Contribution to PF-GPF-214315
44.403—Employees Own Contribution to PF-CPF-214316
44.404-- Employees Own Contribution to PF-CPS-214317
44.405-- P.F. Advance Recovery-GPF-214318
44.406 – P.F. Advance Recovery-CPF-214319
44.407 – P.F. Advance Recovery-CPS-214320
44.430 – Salary life insurance premium recovered-214321
44.431 – House rent recovery-214322
44.461- Professional Tax Payable-214323
44.465 – Other liability (Bank Loan) payable-214324
44.310 – Salary payable-212002

Disbursement of Salary:
The net salary payable to different employees should be disbursed through transfer of
amount to the employees’ respective Bank accounts or through Account Payee Cheque.
The entry passed shall be as under.
44.310 – Salary payable-212002 Dr. *****
To To 24.401- General bank- 114051- Bank A/c ******
127511100001909 ANDB BCDD-I

Page 18 of 26
 (ix) Any amount deducted from salary towards Employees Own Contribution to PF-
GPF/CPF/CPS and Recovery of PF Advance-GPF/CPF/CPS shall at first instance
be transferred to Liability To PF Trust-44.501.-214300 In addition to the same,
matching (Statutory Percentage) Employer’s Share in respect of CPF subscribers is payable
to PF Trust. A journal is to be prepared by debiting Employer’s Share -CPF -75.617-
408100 & crediting Liability to PF Trust--44.501-214300 At the time of remittance to
PF Trust JV shall be passed in SAP by debiting the Liability to PF Trust--44.501-
214300 and credit the new bank GL.
Advances and their adjustments in SAP shall be the same using the new GL codes as
under.
Type of Advance Entries to be passed for adjustment
27.201 – TA Advance -108110 76.132-Traveling
Exp.-410500 Dr.
To 27.201 – TA Advance-108110 cr
27.202 – TTA Advance-108111 76.132 –Traveling Exp. -410500
Dr.
To 27.202 – TTA Advance-108111
27.203 – Salary Advance -108112 Adjusted against salary payble
27.206 – Medical Advance-108113 75.613 – Medical Reimbursement-408215
Dr.
To 27.206 – Medical Advance-108113
To 44.350 – Liability for other Staff
Payment -212003
27.208 - Festival Advance -108114 Adjusted against Salary payble
27.210 – Wage Board Advance -108115 Adjusted against Salary payble

27.212- LTC Advance -108116 75.607 – Leave Travel Concession -

408211 Dr.
To 27.212- LTC Advance-108116
To 44.350 – Liability for other Staff
Payment-212003
27.213 – Other Advances -108117 76.xxx- Admn. & General Exp.-421035
Dr.

Page 19 of 26
 To 27.213 – Other Advances-108117

Bonus :
Treatment of bonus is same as per the previous practice. Instead of old GL new GL
codes shall be used as under.
Bonus entry shall be passed for the amount payable by debiting to codes
75.604/605/606 – Bonus (to different category of employees)-
408019/408019/421101 and crediting to code 44.220- Bonus Payable-
212001. The payment of bonus to the employees will be accounted for
through JV by debiting 44.220- Bonus Payable.-212001
and crediting the bank account.
Reimbursement of Medical Expenses :

75.613 – Medical Reimbursement-408215 Dr.

To 27.206 – Medical Advance-108113
To 44.350 – Liability for other Staff Payment. -212003
On payment, the same will be accounted for by debiting 44.350 – Liability for other
Staff Payment.

Leave encashment :
journal by passing the following entry.
75.609 - Earned Leave encashment-408205 Dr.
To 44.350 – Liability for other Staff Payment-212003
On payment the same will be accounted for through JV by debiting 44.350 – Liability
for other Staff Payment.

Terminal Benefit Expenditure Accounting :

i) Employees’ Contribution to Provident Fund:

The accounting practice is same as before. Instead of old GL codes, new six digit GL codes shall
be used in SAP.
ii) PF Advance recovery:
The amount recovered from Salary through pay bill towards recovery of Refundable Advances is
credited to following heads through Journal.
Recovery of PF Advance-GPF-44.405-214318
Recovery of PF Advance-CPF-44.406-214319

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Recovery of PF Advance-CPS-44.407-214320
Amount payable to PF Trust is credited to Liability to PF Trust--44.501-214300 and debited
to Recovery of PF Advance—GPF/CPF/CPS. At the time of remittance to PF Trust , a DCV is
to be prepared debiting the Liability to PF Trust--44.501-214300 .

iii) Employer’s Contribution to Provident Fund/Pension Fund :

GPF subscribers are not entitled for Employer’s Share benefit as they enjoy Pension benefit
under OCS Pension Rule-1992 as applicable to the employees of State Government. In respect
of CPF subscribers, matching contribution of 12% of Basic Pay including GP and DA is payable
to PF Trust. A journal entry will be passed by debiting account head Employer’s
Contribution-CPF--75.617-408100 crediting Liability to PF Trust--44.501-214300. At
the time of payment to PF Trust a DCV is to be prepared debiting Liability to PF Trust--
44.501. In respect of CPS subscribers, matching contribution of 10% of Basic Pay including GP
and DA is payable to Pension Trust. A journal entry will be passed by debiting account head
Employer’s Contribution-CPS--75.618-408101 crediting Liability to Pension Trust--
44.501-214300. At the time payment to Pension Trust a DCV is to be prepared debiting
Liability to Pension Trust--44.501-214300.

IV) Payment of advance and final settlement of PF:

Payment of advance and final settlement of the subscribers are processed at Trust level and
Cheques /DD is prepared in favor of the subscribers directly and forwarded to respective
accounting units for handing over to the Subscribers. Only a register is to be maintained at
accounting unit level to keep track of the Cheques/DD received and handed over to the
Subscribers after proper acknowledgement. In addition to this signature of payee must be
obtained towards acknowledgement in the abstract sheet supplied by the Trust along with the
Cheque/DD and returned to the Trust within 15 days of receipt of Cheque/DD. No accounting is
to be made on these transactions at accounting unit level. In an event PF Advance / PF final
withdrawal of any subscriber is transferred to an accounting unit in exigency condition , the
amount shall be credited to 44.504 - Funds received from PF Trust-214301 At the time of
payment the same will be accounted for through JV by debiting 44.504 - Funds received
from PF Trust-214301

iii) Pension & Gratuity :

Page 21 of 26
As per Accounting Standard (AS –15), Actuary Valuation shall be made for assessing the Terminal
Benefit Liability every year. The amount payable towards Pension & Gratuity for a financial
year to the respective trusts is determined on the basis of actuarial valuation. The amount is
ascertained by finding out the increase in the valuation at the end of the relevant financial year
over the actuary valuation liability as at the end of the last financial year. This is to be accounted
for by debiting 75.807- Pension-408209 & 75.806 – Gratuity-408202 and crediting
44.502- Liability to Pension Trust-214326 & 44.503- Liability to Gratuity Trust-
214327 respectively at Head Office level. Monthly payment are released to Pension Trust &
Gratuity Trust at the Head Office level. These are to be accounted for by debiting 44.502-
Liability to Pension Trust-214326 & 44.503- Liability to Gratuity Trust.-214327

V)Payment of monthly Pension:

Monthly Pension to the Pensioners located in the cities of Cuttack & Bhubaneswar are paid
through ECS directly from the Pension Trust by crediting the pension directly to their SB Account.
In respect of remaining Pensioners, funds are released monthly to respective accounting units
where the disbursement is done by way of bank transfer crediting Pensioners’ bank A/c or by
way of issue of Cheque. While receiving the funds from Pension Trust credit is to be given to
44.505- Funds Received from Pension Trust-214328 At the time of disbursement to
pensioners debit is to be given to the 44.505-214328 Reconciliation shall be made in every
quarter with the trust.

VI) Payment of Commuted Pension & Gratuity:

Commuted Pension & Gratuity payable to the pensioners are released to division/circle by way
of Cheque/ DD drawn in favor of pensioners directly from respective Trusts. So only a
acquaintance register is to be maintained at accounting unit level at the time of disbursement of
cheque/DD. In addition to acquaintance register signature of payee must be obtained towards
acknowledgement of receipt of cheque/DD in the abstract sheet provided by the Trust along
with the instruments and be returned within 15 days to the respective Trusts. No accounting
entry is required in these transactions. In an event Commuted Pension / Gratuity is transferred
to an accounting unit in exigency condition , the amount shall be credited to 44.505 - Funds
received from Pension Trust/ 44.506- Funds received from Gratuity Trust-214328 At
the time of payment the same will be accounted for through DCV by debiting 44.505 - Funds
received from Pension Trust/ 44.506- Funds received from Gratuity Trust.-214329

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Other Staff Related Payment
Apart from the above the following expenses are being incurred by CESU.
a) Payment of compensation to staffs
b) Uniform & liveries to staff
c) Other Staff Welfare expenses
The expenditures are to be incurred as per the rules & regulation of CESU. The Establishment
section will process the claim and forward the same to the Finance Section. After due approval
from the competent authority, the sanctioned expenditure will be accounted for through journal
by passing following entry.
75.610 –Payment of compensation-408040 Dr.
75.614 – Uniform and liveries -408230 Dr.
75.616 – Other Staff welfare expenses -408233 Dr.
To 44.350 – Liability for other Staff Payment.-212003

On payment the same will be accounted for through DCV by debiting 44.350 – Liability for
other Staff Payment.-212003

Other establishment expenses:

8.3.1 Vehicle hire charges:

For vehicles taken on hire, necessary work Orders/ agreements are normally awarded /
entered into with the Owner/Travel Agency. Bills would be received by Administration
Section along with the copy of log book. This would be scrutinized by Administration and
after vetting forwarded to Finance Section. Finance Section would maintain a Register in
which separate folio would be opened for each vehicle wherein details of Bill would be
entered. Finance Section would also scrutinize the Bills with reference to the terms and
conditions of Work Orders and pass the Bills if found satisfactory. TDS shall be deducted
at source and net amount shall be paid. On Passing of bills with the approval of the
competent authority, the expenditure will be accounted for through journal by
debiting 76.137- Hire Charges of vehicle-410502 and Crediting 46.430-
Liability-216107 for expenses & 46.924 – Income Tax Deducted at Source
from Contractors-214100 On payment, the amount will be paid through DCV by
debiting 46.430 – Liability for Expenses.-216107

Telephone & Internet:

In respect of all telephones/Data Card, the bills would be received from BSNL/ Other
Telephone operators. The usage as mentioned in the bill would have to be certified by

Page 23 of 26
user. Such bills shall have to be forwarded to Establishment section. Establishment
Section shall maintain a Register of all telephones wherein for each telephone a folio
would be maintained. The bills shall be forwarded to Finance Section . Finance Section
shall scrutinize the bill and have it approved by the competent authority. Thereafter,
payment shall be made through cheque after preparation of DCV by debiting 76.111 –
Telephones & Internet.-421017

Printing & Stationery :

Different Offices/Sections shall requisition for fresh purchase of items of stationery in
existing Format such requisitions shall be received by Administration Section who would
issue items of stock if it is in stock or raise purchase indent. Such indent shall have to be
approved by the Competent Authority. Thereafter, Purchase Order shall be placed on any
of the empanelled suppliers and a copy where of shall be given to Finance Section. .
Supplier shall supply the Materials and submit the Bills in duplicate. Administration
Section shall receive the items, make entries in Stock Register and certify on the back
side of the original bills that stock entry has been made. The Bills shall be forwarded to
Finance Section who shall scrutinize the same and pass if found correct while passing the
Bill the copy of Purchase Order shall be marked off to signify that the Bill has been
passed. Thereafter a JV shall be passed by debit to code 76.153- Printing-
421023 or 76.154 - Stationary-421023 and credit to code 46.430 – Liability for
expenses-216017. DCV shall be prepared by debit to Account code 46.430 –
Liability for expenses-216017
Security and Other Personnel:
Security and other personnel are supplied by agencies on whom Work Order would have
been issued. Copy whereof would have been received by Finance Section. Bills shall first
be received by Administration Section along with attendance sheets of personnel duly
certified by designated executive of Division/Circle/H.O. Concerned agency while
submitting the Bill shall also submit copy of proof of deposit of Provident Fund and ESI
dues pertaining to all employees employed by the agency. Bills shall be certified by
Administration Section and sent for checking by Finance. Finance Section shall check the
same with reference to rates, attendance etc and shall specifically note the month for
which the bill is passed in the Work Order to prevent passing of the bill again. Proper
deduction to be made for income tax. The Bill shall be passed and simultaneously DCV
and JV shall be passed with approval of Competent authority. Entry shall be passed on
journal voucher by debiting 76.169 – Watch & Ward Expenses-421102 and

Page 24 of 26
crediting 46.430 – Liability for expenses-216017 and code 46.924 -Income tax
deductions at source from Contractors.-214014 On payment JV shall be prepared
by debiting 46.430 – Liability for expenses-216017
Postage : Already discussed previously.
Security deposit:
On Payment of different deposits to various authorities (if any) will be accounted for
through JV by debiting to the account head 28.930- Security Deposit to Various
Authorities-108136 The sub ledger either manually or through accounting package
shall be maintained. The original receipt against such deposits shall be filed in a guard
file , whenever necessary the same will be required for future claim of refund of
deposits .
Rent :
JV for provision.
76.101 – Rent (including lease rent)- 410005 Dr.
OnTodisbursement
46.924 – Income
of rent Tax
payable
Deducted
will be accounted
at Sourcefor
from
through
payment
DCV by
ofdebiting
Rent-214104
46.430
– To
Liability
46.430-
forLiability
Expenses.for expenses-216107

In case of payment JV shall be passed debiting the liability for expenses and
crediting the bank newly created.

Advertisement :

For all advertisement, the Public Relation section at the Head office/Establishment
section in Division/circle will place the work order with the concerned advertising agency
and the copy of which will be forwarded to the finance section. On actual publication ,
bills along with the material published will be processed by PR section/Establishment
section and forwarded to finance section. After due scrutiny, the same will be placed
before the competent authority for approval. Income Tax at the prescribed rate shall be
deducted wherever applicable and net amount to be paid.
The amount payable to the advertising agency will be accounted for through Journal
Voucher by passing the following entry.

76.155 – Advertisement Expenses -421002 Dr.

To 46.925 – Income Tax Deducted at Source from Other Payment-214105
To 46.430- Liability for expenses-216107

On disbursement of advertisement expenses payable will be accounted for through JV by

debiting 46.430 – Liability for expenses.-216107

Page 25 of 26
 Electricity & Water Charges :

The Establishment Section will have the responsibility of timely payment of Electricity &
Water Charges bills. On receipt the bills, the Establishment section will forwarded the bills
to the Finance Section for pass and payment. The finance section will release the
payment. The same will be accounted for through JV by debiting
76.158 – Electricity Charges-410400 and 76.160- Water Charges-421046
Maintenance of Computer :
Annual Maintenance Contract of Computers, Printers, Net working system are to be
issued by the competent authority with a copy to the Finance Section. After the approval
of the competent authority, the same will be accounted for through journal by passing
the following entry.

74.904 – Repair & Maintenance to Computers,Printers,

IT peripherials (For current year) -402400 Dr.
74.905 – Repair & Maintenance to Networking System Dr.
( For current Year) -402400
28.804 – Prepaid Expenses -108135 Dr.
To 46.925 – Income Tax Deducted at Source from other payment-214105
To 46.126 – Retention Money - Contractors-214502
To 46.430- Liability for expenses-216107

On disbursement of the amount payable will be accounted for through JV by debiting

46.430 – Liability for expenses-216107

Legal/Consultancy:

The respective department engage advocates/consultants after obtaining approval from

the competent authority, a copy of which is to be given to the Finance section . The bills
shall be certified by the concerned departmental head and sent to the finance section for
payment. On approval from the competent authority, the Finance section will accounted
for the same through journal follows:

76.122 – Legal Charges-431011 Dr.

76.123 – Consultancy & Professional Fees -431000 Dr.
To 46.926 – Income Tax Deducted at Source from Professional-414104
To 46.430- Liability for expenses-216107

On disbursement of the amount payable will be accounted for through JV by debiting

46.430 – Liability for expenses-216107

Page 26 of 26