Cash Management Current Business Process Model

Sharif Dairy Farms

Cash Management (CM)
Current Business Process Document

Author: fda
Creation Date: May 14, 2014
Last Updated: May 16, 2014
Document Ref: SDF_CM_2014
Version: 1.0
 Cash Management Current Business Process Model

DOCUMENT CONTROL
CHANGE RECORD
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DATE AUTHOR VERSION CHANGE REFERENCE

14-May-2014 Muhammad Qasim 1.0

REVIEWERS

NAME POSITION

Muhammad Zafar Iqbal Project Manager (ExD)

DISTRIBUTION

COPY NAME LOCATION

NO .

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If you receive an electronic copy of this document and print it out, please write your name on the equivalent of the cover page, for document
control purposes.
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 Cash Management Current Business Process Model

Table of Contents
DOCUMENT CONTROL .......................................................................................................................................................................................................... 2
INTRODUCTION...................................................................................................................................................................................................................... 4
PROCESS LISTING .................................................................................................................................................................................................................. 6
BUSINESS PROCESSES........................................................................................................................................................................................................... 7
1. BANK TRANSFERS............................................................................................................................................................................................................. 7
1.1 Process Overview .................................................................................................................................................................................................... 7
1.2 Accounting Entries .................................................................................................................................................................................................. 7
1.3 Process Flow........................................................................................................................................................................................................... 8
1.4 Process Description................................................................................................................................................................................................. 9
2. BANK RECONCILIATION .................................................................................................................................................................................................. 10
2.1 Process Overview .................................................................................................................................................................................................. 10
2.2 Process Flow......................................................................................................................................................................................................... 11
2.3 Process Description............................................................................................................................................................................................... 12

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 Cash Management Current Business Process Model

INTRODUCTION
PURPOSE
The purpose of the Business Process Understanding Document is to clearly identify the
Business Flow functionality that is in scope for the implementation. This work product is
designed to document the Business Flows, processes, features and functions which Sharif Dairy
Farms (SDF) is currently performing. It includes:

Process Overview
Process Flow
Process Description

Cash management is critical business process of any organization. Organizations must have
real-time visibility into their global cash position to accurately forecast cash requirements and
ensure liquidity. Cash management typically consists of forecasting cash flows and performing
bank statement reconciliations.

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 Cash Management Current Business Process Model

BACKGROUND

In pursuance to develop a sound pre-implementation knowledge of SDF current business

processes, we held Questions and Answers sessions with the key users of each business process.
Key business processes based on the understanding have been documented which fall in our
scope of implementation.

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 Cash Management Current Business Process Model

PROCESS LISTING
PROCESS NO. PROCESS NAME PROCESS CODE

1 Bank Transfers CM-BTR-001

2 Bank Reconciliation CM-BRC-002

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 Cash Management Current Business Process Model

BUSINESS PROCESSES
1. BANK TRANSFERS
1.1 PROCESS OVERVIEW
Deputy Manager (Finance) checks funds requirement in the relevant accounts and informs Manager (Finance).
Manager Finance shares funds requirement with GM (Finance) /Business Head/Project Manager for payment
recommendation. After approval of GM (Finance), Finance Department prepares Payment Voucher and
Transfer Slip for funds transfer. Funds are transferred from one bank account to another after clarification
from the audit department.

1.2 ACCOUNTING ENTRIES

ACCOUNT DESCRIPTION DR./CR.

Bank Transfers:
Bank Account (Transferee) Dr.
Bank Account (Transferor) Cr.

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 Cash Management Current Business Process Model

1.3 PROCESS FLOW

Bank Transfer

Site

Deputy Manager Officer Finance PV Signed by Officer(F),

Manager Finance Payment
(Finance) checks Approval by prepares Payment DM(F), Manager(F) and GM
Finance

sends requirement PV and TS signed Request

funds requirement Relevant Voucher and Head Office or Site Head (F)
Start to GM (F)/BH/ Yes by Officer (F) and forwarded to
and sends to Authority Transfer slip (5) Office TS signed by Officer(F),
PM for approval DM (F) Bank
Manager Finance (3) (4) DM(F) and Manager (F)
(2) (7) (9)
(1) (6)

No
No

Audit
Department Yes
Audit

Clearance
Yes/No
(8)
Bank

Funds
Transferred by
End
Bank
(10)

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 Cash Management Current Business Process Model
1.4 PROCESS DESCRIPTION
EVENT ID EVENT ACTIVITY
1 Process Deputy Manager (Finance) checks
funds requirement and sends to
Manager Finance
2 Process Manager Finance sends requirement
to GM (F)/BH/PM for approval
3 Decision Approval by Relevant Authority
4 Document Officer Finance prepares Payment
Voucher and Transfer slip
5 Decision Head Office or Site
6 Process PV Signed by Officer(F), DM(F),
Manager(F) and GM (F)
TS signed by Officer(F), DM(F) and
Manager (F)
7 Process PV and TS signed by Officer (F) and
DM (F)
8 Decision Audit Department Clearance
Yes/No
9 Process Payment Request forwarded to Bank
10 Process Funds Transferred by Bank
ACTIVITY DESCRIPTION OUTPUT
Deputy Manager (Finance) checks funds requirement in
the relevant accounts and informs Manager (Finance).
Manager Finance shares funds requirement with GM
(Finance)/ Business Head/ Project Manager for approval.
Relevant Authority may approve or reject the request for
funds transfer
After approval of GM Finance, Finance Department Payment Voucher
prepares Payment Voucher and Transfer Slip for funds & Transfer Slip
transfer.
Is the funds transfer being carried out at Head Office or
Site
In case of Head Office:
• Payment Voucher (PV) is signed by Officer (Finance),
Deputy Manager (Finance), Manager (Finance) and
GM (Finance) in case of funds transfer at Head Office
• Transfer Slip (TS) is signed by Officer Finance, Deputy
Manager (Finance) and Manager (Finance).
In case of Site:
Payment Voucher and Transfer Slip are signed by Officer
Finance and Deputy Manager (Finance).
The signed documents are sent to Audit Department for
clearance. After clearance, the Finance Department is given
the go ahead for transfer of funds.
Finance Department forwards the request to the Bank for
funds transfer.
After request for Funds Transfer is received by bank, the
funds are transferred to the concerned party.
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 Cash Management Current Business Process Model

2. BANK RECONCILIATION
2.1 PROCESS OVERVIEW
Bank reconciliation is a daily activity of SDF Finance department. Deputy Manager Finance receives daily
bank statement from the relevant banks and reconciles it with the bank ledger exported from the current
system. The reconciliation sheet is shared with Manager Finance and may be with audit department on request

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 Cash Management Current Business Process Model

2.2 PROCESS FLOW

Bank Reconciliation

Daily Statements Reconciliation Reconciliation

Report Shared
Finance

Received from by DM (F) Report prepared

with Manager
Bank with Bank by DM (F)
(F)
(2) Statements (4)
(6)
(3)

Daily
Statements
Bank

Start sent to Finance

Department
(1)

Report Shared
Audit

with Audit
End
upon request
(5)

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 Cash Management Current Business Process Model

2.3 PROCESS DESCRIPTION

EVENT ID EVENT ACTIVITY ACTIVITY DESCRIPTION OUTPUT

1 Process Daily Statements sent to Finance Bank sends daily statements to Finance Department Daily Bank
Department Statement

2 Document Daily Statements Received from
Bank
3 Process Reconciliation by DM (F) with Bank
Statements
4 Document Reconciliation Report prepared by
DM (F)
Daily statements are received from bank through email.
Deputy Manager Finance exports the ledger from the
existing GL system in excel format and reconciles it with
bank statement.
A reconciliation report is prepared by DM (F) Reconciliation
Report

5 Process Report Shared with Audit upon Reconciliation report may be shared with Audit
request Department upon request.
6 Process Report Shared with Manager (F) The reconciliation report prepared by Deputy Manager
Finance is shared with Manager Finance.

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