As-Is Ver 1.0 SD

Organisation - Jaya Shree Textiles Created on 23/10/2008 15:08:00
Project - ERP Implementation Page 1 of 44

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Title AS-IS Business Process Scripts Version No: 1.0
AS-IS DOCUMENTATION
PROCESSES RELATED TO SALES AND DISTRIBUTION
Name Designation Signature
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As-Is Process Process Process Description

No Identification Name
1. 1 Organisation  At Jayashree Textiles, we have 5 product groups, namely,
Structure 1) Worsted spg.
2) Flax spg.
3) Synthetic spg.
4) Fabric weaving
5) Wool combing.
 These are 5 manufacturing units.
 Each of these depts. have there own marketing team & are responsible for individual
profitability, independently. They handle both manufactured product & by-product.
 The present structure for each dept. is :
Vice
President
Marketing Manufacturing
 The VP is the product group in-charge, responsible for both marketing & manufacturing
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activity. A GM or DGM heads each of these marketing functions.
 In fabric dept. there are 2 sales division,
 Govt. sales,
 Other sales
 There is another sales activity that takes place at Stores. This is done to dispose off obsolete
or excess goods & is done through auction. But this has nothing to do with the departmental
manufactured product sales & the accounting is also done differently.
2. 2. New  For a new customer, when a order is confirmed, a new customer code is created with the
Customer following details:
creation  Name,
 Detail address & with contact details,
 Customer type
 Direct domestic,
 Direct export,
 Consignment agent,
 Retailer,
 RMG (domestic),
 RMG (export)
 Wholesaler/Dealer,
 Industrial fabric,
 FR fabric other than railway,
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 FR fabric direct export
 FR fabric for railway,
 Destination,
 Nature of company,
 Consumption capacity,
 Payment terms,
 Delivery type/Grace days,
 Sales tax detail,
 Agents/Broker/Promoter details,
 Credit limit.
3. 3. New material  For a new material a new code is created with the following details :
(finished  Product category,
goods)  FR
creation  Chhaugal
 Flax canvas,
 Linen
 Old & used material,
 Synthetic yarn,
 Worsted,
 General.
 Product description (as to be used as reference)
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 Unit of measure,
 Excise sub-chapter,
 Rate,
 Product details,
 Raw material details.
SL. As-Is Process Process Process Description

No. Identification Name
4. 4. Types of 1) Export direct to the customer,
sales
2) Domestic direct to the customer,
3) Merchant exporter (deemed export),

 The domestic buyer export the consignment as it is or after conversion into garments in
their name, after buying from us,
4) Domestic consignment sales.

 Stock transfer,
 Payment made after sale takes place from the consignment depot,
 Usually a monthly accounting is maintained.

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5) ADT sales,
 Usually takes place when a customer refuses to accept the goods, due to various reasons,
after delivery order is issued in his name & material dispatched.
 The material is then sold to a third party,
 The dispatch takes place from the customer’s end/transporter’s end at the destination.
6) Job work done by outside party,

 The situation arises when either we do not have the capacity OR due to some other
strategic reason,
 At the same time we do not want to leave the order due to various other strategic reasons,
 A job order is issued & sent to PPC with specific instruction of “Job work”.
 The raw material is sent by us,
 Some reliable, known manufacturer then converts the material as per the given technical
specification, after negotiating the commercial terms.
 The manufacturer is paid the conversion charge.
 The finished goods is dispatched from the manufacturer’s end OR brought back to the
factory to add some more value & then dispatched.
 The dispatch can be to domestic/export/deemed export/govt. customers or consignment
sales.
7) Job work done by us,
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 The situation arises when some external vendors wants to get some goods manufactured
from us either partly or fully,
 The vendor send all raw material,
 We are being paid only the conversion charge.
8) Trading,
 When the material is outsourced from a third party & dispatched to the customer without
adding any value,
 Done usually under neutral packing.
9) Govt. supplies.
 The goods are despatched directly to the govt. dept./defence/railways.
10) Captive consumption.

 Product manufactured & transferred to another unit.
 Price charged is as per agreed transfer price.
 In most of the cases an agent (Overseas or local) is involved in each of the deal, who is paid
commission of a pre-determined value, after sales realization.
 The value is determined after negotiation with the concerned agent. Usually an yearly or 3-
yearly contract is made.
 The value is usually expressed as % of the sales realization.
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5. 5. Types of 1) Made to order,

Finished  Customized product manufactured as per the specification given by the customer.
goods  The manufacturing process starts only after getting buyer’s final confirmation.
produced
2) Made to stock.
 This is determined by the market trend, forecast, sales trend etc.
 Manufacturing starts with these trend figures & without any specific order.
3) Outsourcing Semi-finished product,

 This situation arises when either we do not have the technical capabilities, OR do not have
the manufacturing capacity to cater to an order.
 At the same time we do not want to leave the order due to various strategic reasons,
 A job order is issued & sent to PPC with specific instruction of “Outsourcing”.
 The product is then partly manufactured from some reliable, known manufacturer, after
negotiating the different technical & commercial terms,
 After manufacturing is over, the product is then bought by us, as per the agreed terms,
 The material is brought back to the factory to add some more value to convert it to a final
finished product, before final despatch.
4) Outsourcing finished product,
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 This situation arises when either we do not have the technical capabilities, OR do not have
the manufacturing capacity to cater to an order.
 At the same time we do not want to leave the order due to various strategic reasons,
 A job order is issued & sent to PPC with specific instruction of “Outsourcing”.
 The product is then fully manufactured from some reliable, known manufacturer, after
negotiating the different technical & commercial terms,
 After manufacturing is over, the product is then bought by us, as per the agreed terms,
 The material is brought back to the factory, only for re-packing, before final despatch.
5) Job work done by us,

 The situation arises when some external vendors wants to get some goods manufactured
from us either partly or fully,
 The vendor send all raw material,
 We are being paid only the conversion charge.
6) By-product including waste.

 The Raw material section mainly controls the waste sale. However for RSM DO
generation is done by the sales dept.
6. 6. Inquiry  The customer/agent, either existing or new, shows their interests in buying a product from our
product range.
 Here they specify the quality in details.
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 It is done either through
a) Fax,
b) Mail,
c) Phone,
d) Letter.
 There is no laid down system to track the number of enquiry coming from,
a) A particular customer, or
b) A particular region, or
c) A particular country, or
d) For a particular product.
e) And the number that is converted to actual biz, from those enquiries.
 Sometimes the dept. also initiates biz enquiry.
7. 7. Quotation  The sales team, studying the enquiry determines whether the product can be manufactured in
the existing set-up.
 If required, meeting with the technical team takes place to study the technical feasibility. This
process is called “Contract Review”.
 Once technical feasibility is cleared, the price is worked out.
 Each of the dept. has their own costing system & pricing policy.
 H/ever usually contribution costing system is followed in line with our Parta system.
 During this time the following things are checked :
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1) Raw material required,
2) Availability of that raw material (for determining the delivery date),
3) Price of that raw material,
4) Availability of capacity (in consultation with PPC to determine delivery date),
5) Terms of contract (Ex-mill, CIF, C&F, FOR etc.),
6) Destination of the cargo,
7) Freight of that destination (if required),
8) Payment terms (CAD, Credit of a pre-determined period, L/C at sight, Usance L/C etc.),
9) Interest involvement (if any),
10) Commission to be paid (if any),
11) Packing cost,
12) Selling expenses.
13) In-house or Job work charge,
14) Fixed cost.
 The cost of each of these components along with the type of customer, volume of product
being ordered & some other specific consideration (if any), is considered to determine :
1) The price to be quoted,
2) Delivery schedule,
3) Payment terms &
4) Other terms of contract.
 All these above are determined independently against each quotation. For existing
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customer/material, only a reference is made of the last biz.
 This is then conveyed to the customer/agent through,
1) Fax,
2) Mail,
3) Phone, or
4) Letter.
 Other than quotation against enquiry, sometimes quotation was also given to prospective
customer without any specific enquiry. Here the process is the same as described above.
 There is no laid down system to track the number of quotation given to,
a) Any particular customer, or
b) A particular region, or
c) A particular country, or
d) For a particular product.
e) And the number that is converted to actual biz, from those quotations.
8. 8. Negotiation  After quotation the buyer can have some clarification regarding product specification, price,
quantity, delivery date, payment terms etc, against which a discussion takes place.
 This is usually done over :
1) Mail,
2) Fax, or
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3) Phone.
 This is done either directly with the buyer or through the agent representing that buyer.
9. 9. Order  Once the negotiation is complete & both concerned parties agree with each of the contract
acceptance & terms, the order is said to be finalized.
contract  A contract review is issued as per the review done during technical feasibility discussion at the
review quotation stage.
 Contract review is a document.
10. 9.1 Issue of  Sales confirmation is a document being issued by the sales dept. indicating all details like,
Sales 1) Customer name & contact details,
confirmation 2) Product description,
3) Quantity, with acceptable tolerance value,
4) Price,
5) Delivery terms,
6) Payment terms,
7) Product specification (the most necessary information)
8) Despatch period,
9) Destination,
10) Sales man name.

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11) Sales tax applicable,
12) Insurance applicable,
13) Cartage fee, if applicable.
14) Transportation charge, if applicable.
15) Customer order no., if any.
 It is signed by the concerned sales person & sent to the buyer as a document of order
acceptance.
 The buyer signs & sent a copy back to the sales dept.
 This is kept as a record with the sales dept.
 However in the present system it is not mandatory that a signed copy comes from the buyer.
Once a sales confirmation is issued it means that the order is confirmed & Job order can be
issued
 Sometimes manual Proforma Invoice is also issued in place of Sales confirmation. It is issued as
per the requirement of the buyer. This also contains similar information as Sales confirmation.
 Presently Sales confirmation is issued On-line & necessary print out is taken for sending it to
the buyer.
 For multiple shades under same product quality, a separate field is there to update the shades,
under the individual product code.
 All data on sales confirmation can be modified at any stage.

 Sales confirmation & Order acceptance has a number, which is auto-generated. This helps us to
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track a particular Sales order with subsequent processes.
 For Fabric, the above process is not applicable as manual Job order is issued.
11. 9.2 Problems in  However before the issue of the Sales confirmation an Order acceptance has to be generated.
issuing sales
confirmation  From one Order acceptance multiple Sales confirmation can be issued.
 The information given in both these docs are almost the same. But since order acceptance is
linked to the Sales menu while Sales confirmation is linked with the Production menu & cannot
be made compatible with the sales menu, so both are to be generated separately.
 The Sales confirmation is necessary to issue the Job order (Job Card) to the production dept,
while Order acceptance is necessary to issue the Delivery order before dispatch.
 In a single sales confirmation same product cannot be entered more than once. This is
sometimes required as same product can have different price due to raw material change.
 In this case the present system is to modify the raw material specification under the same
product code, whenever necessary & issue separate Sales confirmation.
 Due to this right analysis of the trend in price change, of a particular product, from the data
obtained from the present database, is not possible.
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 Separate sales confirmation is to be generated for Raw white & Dyed quality (Yarn) from a
single Order acceptance, which is not necessary as per customer’s requirement.
 More than 4 product in a blend is not possible,
 Count in fraction value is not allowed.
12. 10. Credit  We have 2 types of credit control system for a customer,
control
A. Internal control depending on the value of the sales order that can be despatched. It
requires management approval.
B. External control
13. 10.1 Internal  There are 3 types of internal control.

control 1) Through “Credit limit approval” form.
 Once a sales confirmation is issued & the total product value is determined then
for a new customer, Credit limit sanction is sought from the President.
 For this a document named “Approval of Credit limit” is prepared.
 This is an internal checkpoint before a delivery order is issued. If the buyer do

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not have sufficient credit limit, i.e. if the value of the DO is more than the Credit
limit available then DO generation will not be possible.
 Approval of Credit Limit is a documents indicating the following :

 Customer name,
 Product,
 Credit limit asked for,
 Payment terms,
 Outstanding due, if any,
 ECGC coverage, if any,
 Expected future biz.
& sent to the President for getting the necessary approval.
 For an old customer the above process is followed only for Credit limit
enhancement.
2) If the customer has some outstanding payment over 180 days then DO cannot be
generated.
3) For non L/C despatch, the detail is maintained manually in a register & the same is to
be approved by the President before despatch..
14. 10.2 External  This is done by means of :
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control  ECGC coverage. Individual dept. advises the finance dept. to take ECGC coverage
against a particular buyer. For this they inform
 Name & address
 Order in hand,
 Bank detail,
 Payment terms,
 Value of coverage to be taken,
 Payment terms. This is decided by the individual dept. & does not necessarily needs
management approval.
15. 11. Issue of Job  Once the Order acceptance & sales confirmation is generated, a Job Card is issued.
card  This is also having an auto-generated number.
 It is issued from the Sales confirmation.
 Job card is a document.
 This is an instruction to the production dept. about the goods to be produced & it’s delivery
requirement.
 This goes to the PPC dept. for the necessary planning.
 From one sales confirmation multiple Job card can be issued.
 It contains all information related to :
1) Customer code (Customer name),
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2) Product quality, with all necessary specifications,
3) Raw material to be used,
4) Destination of the cargo,
5) Quantity,
6) Delivery required,
7) Special instruction, if any.
 Modification on Job card is allowed stage-wise, if that stage has not yet started in the
production.
16. 11.1 Job card type  For Worsted yarn, 9 types of Job card can be issued :
 Single
 Grandrelle
 Solid
 Siro
 Crepe
 Slimlana
 Tooshlana
 Esoteric
 Speciality.
 These are different types of yarn being produced.
 For Flax & Synthetic spinning there is no such type.
 For fabric, along with Job card a packing instruction is also given to warehouse. This is basically
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finishing & packing instruction given to the dept. i.e. specifies the process after weaving.
 This is issued either at the time of issuing the Job card or later after getting the full color or
packing instruction
 This specifies :
 Color assortment,
 Dyeing instruction for piece dyed fabric,
 Finishing instruction.
 Type of folding,
 Piece length standard,
 Packing norms, like whether to pack lotwise, single colorwise or mixed assortment.
 Stamping instruction.
 Shipping mark.
17. 12. Planning and  After this the manufacturing of the goods takes place as per the Job order & planning process.
Production After the goods are produced for final packing the finished goods is transferred to the godown.
 The detail packing instruction comes to the sales dept.
18. 13. Storage  Presently there is one godown under one administration. Here both finished goods & raw
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location material is kept. However separate books are maintained for finished goods of each of the 5
manufacturing divisions.
19. 14. Despatch  Once the full material is ready then the process of dispatching begins
process
SL As-Is Process Process Name Process Description

No. Identification
20. 14.1 Selling channel  There are the following types of selling channel :
1) Export direct to the customer,
2) Domestic direct to the customer,
3) Merchant exporter (deemed export), the domestic buyer export the consignment as it
is in their own name, after buying from us,
4) Domestic consignment sales (stock transfer).
5) Job work done by us.
6) ADT Sale.
7) Trading.
8) Govt. supplies.
9) Outside godown billing/Job work done by outside party.
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No. Identification
21. 14.2 Domestic direct  The packing details were viewed in the sales menu from godown stock.
sale/ Domestic  It is tracked Productwise/Lotwise. For fabric party-wise tracking is also possible.
consignment  The carton details of the material to be dispatched are noted manually.
sale/ Govt.  The order acceptance against the particular order is re-checked & modified, if required.
supplies  Each carton is then delivered from the godown., on-line.
 Then Invoice is generated (Delivery order).
22. 14.2.1 Invoice  For this following information is fed

generation  Delivery type (Invoice Series)
 Against order
 Worsted
 NP – Synthetic fibre rich material (> 50%)
 NW - Wool fibre rich material
 RSM
 CE – Within Bengal
 CG – Outside Bengal
 PE – Merchant exports/sample
 PEC – For export CIF
 PEF - For export C&F

 PH – Waste sale,
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No. Identification
 PTC/PTF – For export – RST (as above)
 Flax
 OF – Domestic/Export. Differentiated by nos. for export (140430…) &
domestic (140420…)
 Fabric
 CH- 100% Linen or Linen rich
 CF – Flax canvas
 BS – F/R, direct export
 SC – F/R, domestic sale
 BP – Made-up F/R
 AL – Cotton rich fabric
 Wool combing
 RMW – Export & domestic. Differentiated by nos. for export
(130430…) & domestic (130420…)
 RM – Export & domestic Greasy wool sale.
 Consignment sale
 Worsted
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No. Identification
 CR – Ludhiana,
 CA – Amritsar,
 CK – Kashmir,
 CB – Bhagalpur,
 CM – Mumbai,
 Flax
 BCN – Bhagalpur,
 WCN – Ludhiana,
 CN – Pondicherry,
 KCN – Bhadohi,
 PCN – Bhilwara,
 Fabric
 CND
 RSM
 PBD - Mumbai,
 PAD – New Delhi,
 PAP – Panipat,
 PAF – Surat,
 PBP – Bhilwara,
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No. Identification
 PBS – Bhagalpur,
 PDK – Kundanmal, New Delhi,
 PGD – Kolkata,
 PKG – Gorakhpur,
 PKS – Surat,
 PLW – Ludhiana,
 PAT – Amritsar,
 PKD – New Delhi,
 PMM – Maheshwari Syndicate, Mumbai,
 PMS – Shri Handloom Bhandar, Panipat,
 PSM –Shri Handloom Bhandar, Se
 PTP – Pondicherry,
 PPT – Chennai,
 PSK – Kanpur,
 PVK – Varanasi,
 PPP – Patna,
 BJJ – Jayati Agency, Jaipur,
 JPR – Poddar Yarn, Jaipur,
 Wool combing
 RMC. But the Invoicing is done by the raw material dept.
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No. Identification
 Job work/Outsourced product

 Worsted
 JPY – Synthetic fibre rich,
 JWY – Wool rich,
 RSM
 No separate for RSM
 Fabric
 JPF
 Flax
 Nothing for Flax. But for outsourced yarn the packing series is
different
 Wool combing
 WC – 100% Wool or wool blends processing,
 PP – 100% Polyester processing,
 FS series is allotted for FREE SAMPLE
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No. Identification
 Mode of Transport,
 Direct customers provide Form ‘C’ & consignment agent provide Form ‘F’, for
exemption of sales tax.
 Excise type. The different types are :
 Duty applicable
 Duty not applicable.
 Captive consumption
 Synthetic yarn/Artificial yarn soft waste
 With exemption certificate for Naval supply/Research institute/Defence
supply.
 Against an Order acceptance multiple DO can be issued.
23. 14.2.2 Pricing  Each dept. has their own pricing strategy.
 The price is calculated as described during “Quotation” & “Negotiation” stage.
 For consignment sales, the consignment agent was given a price at regular interval.
Accordingly they finalize order with different customers. After adding up all such orders &
the prices thus agreed, they raise a P/O & send it to the respective depts. This price was
then taken as the Invoicing price.
24. 14.2.3 Documents  5 copies X 2 set of Invoice is printed,

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No. Identification
required  3 copies X 3 sets of annexure/packing list are printed.
 1 set sent to godown for arranging despatch.
25. 14.2.4 Clearance  Godown note down manually in a register the detail of all cartons/bales to be despatched &
process give necessary loading instruction to the workmen.
 Then the set is sent to excise dept. for clearance.
 Since we have ‘Self removal process (SRP)’, so the clearance is done by in-house excise
dept.
 Excise dept. generate excise Invoice nos. There are 2 separate series one for export & other
for domestic. This nos. is put on the above Invoice. The date, time & notification nos. is also
stamped on the Invoice.
 For export despatch the authorization of Central excise official & their physical presence is
required, as it is physical clearance,
 For domestic despatch their presence or authorization is not required.
 Duplicate (transporter’s) copy is sent with the vehicle.
 Triplicate copy is filed for Central excise required for audit purpose.
 Quadruplicate copy is used as gate pass & retained at the main gate. The security personal
authorizes at the back of this copy the nos. of cartons/bales loaded.
 The original copy of the cleared Invoice along with T/R or R/R was sent back to the dept.,
for further sending to the party.
 The godown feeds to the system, when received, the T/R or R/R nos.
 If the final loading takes place outside the mill premises, then godown people carries the
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No. Identification
goods to the transporter’s godown to hand over the goods to the transporter.
 The cost incurred is maintained on-line, in “T/R_R/R register”, under sales menu. This is
maintained Invoice-wise.
 The detail of the despatch is maintained manually in an insurance register. The same
information is used by finance dept. for covering necessary insurance.
26. 14.2.5 Communication  All relevant information is sent to the party.

to party
27. 14.3 Deemed Export  Normal process for domestic sales,

sale  Customer provide CT1 for exemption of central excise duty,
 Customer provide Form ‘14’ for within West Bengal & Form ‘H’ for outside West Bengal for
exemption of sales tax,
 Customer provide ‘Project Authority Certificate (PAC)’, Green card & RCMC
 Goods cleared under ARE3, without charging excise duty,
 If any raw material used is imported then quantity dispatched is to be matched with the
import license taken.
28. 14.4 Export direct  Above process are followed for Export sale also.
sale
29. 14.4.1 Additional pre-  The following documents are required :

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No. Identification
shipment
documents
required  Depts. prepare Packing List and Customs Invoice & sent for Customs clearance along
with sales contract (Sales confirmation). 6 copies are prepared.
 The following additional information are given on this Invoice :
 Whether shipment is taking place through DEPB/DEEC/OGL/Drawback
channel,
 Commission,
 H.S. Code/ Category.
 One set of Invoice is sent to Accounts for arranging to cover insurance in case of CIF
shipments.
 Excise dept. gets the D/O copy from the dept. & generate excise Invoice nos. (as
described above). There is separate series for export.
 Excise depts. was informed verbally whether the shipment will take through DEPB or
DEEC channel.
 They generate ARE1/ARE2
 Clearing agents then prepares
 Shipping bill
 Exchange Control Declaration/GR form,
 DEPB declaration (Annexure D), if required
 Form SDF (Appendix I)
and arrange for Customs clearance.
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No. Identification
30. 14.4.2 Pre-shipment  The Transporters are then informed to collect the consignment for delivery to port for final
activities shipment.
 The shipping cos. is given necessary instruction (as per the L/C terms) for preparation of
B/L. It was issued after actual shipment.
 All above Customs certified docs along with B/L are then forwarded to us.
31. 14.4.3 Post shipment  In the meantime the depts. preapare the following post-shipment documents :
documents  Certificate of origin/GSP,
 Detail packing list,
 Quota application, if required,
 Arranging any other documents, as required by the L/C e.g.
 Test certificate from external agency,
 In-house test certificate,
 Classified vessel declaration,
 Freight certificate,
 Canadian Invoice (for export to Canada only),
 USA Visa, For fabric additionally - Single country declaration, Quota
declaration, Quality declaration (for export to USA only).
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32. 14.4.4 Document  All these documents are then forwarded to Accounts dept. for negotiation. The accounts
Negotiation & prepare the final Commercial Invoice to be attached with these docs for negotiation.
post shipment  Accounts dept. upon checking all the documents, as per the L/C terms, submit to the Bank
operation. for negotiation.
 The clearing agent collects through Customs the shipping bill & sent back to the depts.
 This along with the following docs are forwarded to Finance dept. :
 EP copy,
 DEPB/DEEC copy
 B/L,
 ARE1 (if duty paid raw material)/ARE2 (concessional rate of duty paid
raw material) – Quadruplicate copy,
 Customs signed Invoice
 Packing list
 SDF form, Annexure ‘F’, for claiming DEPB benefit.
 One set of the above documents are forwarded to Excise dept. for submission to Central
Excise Office for final assessment and on the basis of that we get the Credit in Bond.
33. 14.4.5 Communication  The dept. informs the customer the shipment details.
to customer
 Non-negotiable copy sent to the customer/agent.
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 Dept. informs the agent/customer the courier detail of the original docs
despatched by the bank.
34. 14.5 Job work done  The goods is received under 2 following conditions :
by us  Under Job challan :
 At the time of despatch a “Job Challan” is filled up, as send by the customer,
 The contract is prepared only with the processing charge,
 Invoice is generated only with the processing charge as the unit price,
 No sales tax or Excise duty charged, specified as per the code during Invoice
generation.
 The rest of the process is same as Domestic sale.
 Under Excise Invoice :

 Here the raw material price is mentioned on the excise Invoice sent by the buyer,
 The unit price is taken as the Raw material price + the processing charge, as
agreed,
 Excise duty is added to this price,
 The raw material price, as charged above, is deducted from the Invoice value.
 The rest of the process is as Domestic sale.
35. 14.6 ADT sales/  A dummy packing is done under a different series,
Outside  A new contract is prepared in the name of the new client & subsequent delivery is done.
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godown sale/
Trading  Invoice is generated,
 Then Normal procedure as per Domestic or Export.
 Credit note is issued to the original buyer.
36. 15. Freight Bill  Freight can be of two types :

passing  Domestic inland freight
 Ocean/Air freight for export consignment.
37. 15.1 Domestic  This is paid to the local transporters/courier company,

inland freight  For in-house loading, the transporters raise a bill as per the contracted terms & sent to the
respective depts.
 They enclose the T/R copy stamped by the buyer that the goods has been received in good
condition,
 The dept. check the bill, as per the contract terms,
 A freight register is maintained manually, where a noting is done about the bill details &
against which Invoice this bill is raised,
 The bill is then authorized for payment by the dept. head,
 The bill is then sent to accounts for payment,
 The payment is made by cheque.
 For goods loaded from transporter’s godown, it is always sent on ‘to pay’ basis, however the
charges incurred in carrying the goods to the transporter’s godown is paid separately to the
godown people.
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 They take an advance from a/cs against these expenses.

 The advance is adjusted after submission of the necessary bills along with the authorized
‘T/R_R/R report’, as generated on-line.
38. 15.2 Ocean/Air  The freight includes payment to 3 parties,

freight for  Local transporters who carries the goods from the mill to the Indian seaport/airport,
export  Ocean/Air freight,
consignment  Clearing agent charges for the clearing charges.
39. 15.2.1 Local  There is a contract with this transporters,

transporters  They raises a challan which is signed by the godown as a proof that the required quantity of
payment goods has been despatched through this transporter,
 The same challan is also signed by the clearing agent that the goods has been received in
good condition at seaport/airport.
 They also raise a bill, as per the contract. This is sent to the dept., along with the challan.
 Dept. check the docs as per the contract,
 There is a Freight register in the Sales menu, on-line, where against a particular Commercial
Invoice the following data are fed :
 Transporter’s name,
 Despatch mode (Sea, Road, Air),
 Terms of payment (C&F, CIF, FOB etc.)
 Transport Charges
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to raise a print out (Freight documents) & sent to accounts for payment.
 Payment made by accounts.
40. 15.2.2 Ocean/Air  This payment is either paid to,

freight  Shipping cos., OR
payment  Forwarding agent, OR
 Clearing agent.
 The charges includes,
 Ocean/Air freight,
 THC,
 Port charges,
 Others (if any against receipt).
41. 15.2.2.1 Payment to  There is no formal contract. Rates are negotiated against each consignment.
Shipping cos.  This payment is made is made against a Debit note raised by the concerned party.
OR Forwarding  This is because usually B/L is issued only against freight payment.
agent  The D/Note is checked by the dept., & sent to accounts after necessary authorization from
the dept. head, after making necessary entries in the same ‘Freight register’ menu, as
described above.
 The A/C makes payment.
 This payment is maintained as an advance in the a/c books.
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 Against each despatch & as per the agreed terms (%age of the freight), the dept. gets a
Brokerage from the shipping cos.
 After payment made, the dept. raise a Debit note manually & sent a copy to accounts &
another to the concerned Shipping cos.
 Against this D/Note the shipping cos. Makes the payment by cheque, which was adjusted by
a/cs against the same Invoice.
42. 15.2.2.2 Payment to  Here the payment is made against D/note as well as B/L copy.
Clearing agent  The procedure is the same, as above.
 This payment is also maintained as advance payment.
43. 15.2.3 Payment of  There is a contract,

clearing agent’s  They raise a bill as per the contract terms,
charges  B/L is attached mentioning full details of the charges charged as “Ocean/Air freight” i.e.
including THC, Port charges, others (against receipt).
 The dept. check the charges mentioned on the B/L & the payment made earlier, as
‘Ocean/Air freight…”,
 Necessary entries are made in the same ‘Freight register’ menu on-line.
 The bill + B/L + the freight docs print out is sent to a/c for payment, after necessary
authorization.
 The accounts make payment.
 This payment is treated as final adjustment against the advance payment done before.
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 There is a service tax being levied on the clearing charges. This is modvatable.
 After the a/cs get the bill & make the payment a copy of the same is sent by a/cs to excise.
 Excise dept. maintain a register crediting whatever service charges we paid which is
adjusted against the excise we need to pay.
44. 16. Credit Note  This is done as & when required.

issue  There is a “Credit note advise” menu under sales menu on-line,
 The following inputs are made :
 C/note type :
 Flax,
 RCM
 RCM (Consignment)
 The reason for raising the C/note is mentioned under ‘Credit note terms’. They are of
following types defined by code :
 DC – Invoice cancellation,
 FT – Freight/Other expenses,
 GC – Goods returned (Current year)
 GP – Goods returned (previous year)
 LP – Last year provision,
 NA – Rate difference (last year)
 TA – Rate difference (current year)
 NB – Incentive commission (last year)
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 TB – Incentive commission (current year)

 NC – Discount for (last year)
 TC – Discount for (current year)
 ND – Shortage (last year)
 TD – Shortage (current year)
 NE – Rebate increase (last year)
 TE – Rebate increase (current year)
 NF – Defective for (last year)
 TF – Defective for (current year)
 TG – Quantity discount,
 TX – Sales tax against BC form.
 Invoice series & date. This specifies the despatch against which the C/note is to be
raised. On giving the nos. automatically the quantity despatched & the value of the
Invoice gets copied to this menu.
 There is also a Credit sub-group to be mentioned as & when required. They are :
 ADT
 Others
 RBG.
 Remark i.e. the detail reason for the payment.
45. 17. Debit note  This is done as & when required.
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issue
 A manual advise is given by the dept. to accounts,
 The a/cs raise the D/note & sent to the concerned party.
46. 18. Commission  The sales dept. advises finance dept., at regular interval, the agency commission/brokerage
payment to be paid to different overseas agent/local agents/brokers.
 This is done after payment received,
 The advise is in the form of the Invoice nos. against which commission has to be paid,
 For this a commission agreement is prepared by legal dept. (in case of local agent) & by the
sales dept. (in case of overseas agent).
 This is sent to the agent/broker for signature as a sign of acceptance.
 The signed copy, on receipt, is forwarded to finance dept.
 On advise of the sales dept. the finance dept. arrange payment by draft/T.T. transfer &
advise the same to sales dept.
 Sales dept. informs the details to the agent/broker.
47. 19. Return goods  This can be of 2 types :
 Export return
 Domestic return.
48. 19.1 Export return  The customer raise an Invoice of the quantity to be returned,
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 They send us the packing list of the same,

 They also inform the shipment details & forward the necessary docs,
 Sales dept issue a Credit note in the name of the buyer to the value of the returned goods.
 When the goods arrive at the port the finance dept. files a Bill of entry stating the Shipping
bill no. against which the goods was exported & the reason for return of the goods.
 There can be 2 options :
 Parent shipment through DEEC scheme

 Parent shipment through DEPB scheme
49. 19.1.1 Parent  If the license against which the shipment is made is already closed then the re-import has to
Shipment be done by import duty payment only.
under DEEC  Otherwise a declaration has to be given that the goods after re-processing will be re-
exported within the next 6 months.
 If shipment is not done within 6 months then the full customs duty is to be paid along with
interest.
 If the license is not closed then the said shipping bill marked by customs appraiser cannot be
filed for DEEC benefit.
50. 19.1.2 Parent  The DEBP benefit + Interest (15%) has to be returned by draft/cash to the customs
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shipment under authority before the Bill of entry is released for clearance from port.
DEPB
 Otherwise a declaration has to be given that the goods after re-processing will be re-
exported within the next 6 months.
 If shipment is not done within 6 months then the full customs duty is to be paid along with
interest.
51. 19.1.3 Excise  Permission is to be taken from jurisdictional Asst. Commissioner of Central excise through
formalities range supdt. For taking the goods into the mill premises.
 The material is moved under ‘bond’ from port to the mill premises.
 A physical verification of the goods is done by the supdt. of central excise & the record is
maintained in a register.
 When the said goods is again despatched either export or domestic then a noting is done on
the same register.
52. 19.2 Domestic  The material is received at the mill premises in packed condition. The parent the customer
return/Excise returns Invoice.
formalities.
 The proportionate excise duty is credited in our books,
 Physical verification not required but can be done & a Register is maintained as described
above.
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 When the said goods is again despatched either export or domestic then a noting is done on
the same register.
53. 20. Re-packing/  This is done by sales dept.

Re-processing  For any material to be re-packed OR re-processed for any reason, a menu is there on-line
memo issue under ‘sales menu’, where the following details are given :
 Repacking series (presently only REP for Worsted Divn, ITN for RSM, RPW for Fabric
 Divn,RPF for Flax yarn Divn. )
 The dept. to which the memo is to be issued e.g. Spinning/Weaving/Processing dept.
 Whether ‘Export’ or ‘Domestic’ (presently described as ‘Sales type’)
 The product details & the carton/bale detail that is to be re-packed/re-processed.
 Print out is taken sent to the dept. the necessary processing & a copy sent to godown for
delivering the required carton/bale to the dept. for processing.
 The details of repacking/reprocessing to be done are written manually on to the memo.
 There can be occasions where a material under Export or Domestic packing is split into both
export & domestic, after re-packing.
54. 21. DO generation  Material drawn out after re-packing or from fresh prodn, if sent out as samples, a DO has to
for Sample be generated to account for the quantity taken out.
material
 Since sample is sent ‘Free of charge’ so the DO is generated without assigning any value.
 This is done under ‘FS’ series (Free sample)
 The customer is assigned as ‘WEAVING DEPT’ or Warehouse .
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 An order acceptance/ sales confirmation is issued in the name of Weaving/Warehouse dept.
The present system is that this is kept issued 3 years back. Each time a sample DO is to be
generated, the product is inserted & updation made. Against that a DO is generated in the
similar way as described before.
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Organisation - Jaya Shree Textiles Created on 23/10/2008 15:08:00

Project - ERP Implementation Page 1 of 44

Name Designation Signature

As-Is Process Process Process Description

As-Is Process Process Process Description

 FR fabric other than railway,

As-Is Process Process Process Description

 Product description (as to be used as reference)

As-Is Process Process Process Description

SL. As-Is Process Process Process Description

3) Merchant exporter (deemed export),

4) Domestic consignment sales.

 Usually a monthly accounting is maintained.

SL. As-Is Process Process Process Description

6) Job work done by outside party,

7) Job work done by us,

SL. As-Is Process Process Process Description

10) Captive consumption.

 The value is usually expressed as % of the sales realization.

SL. As-Is Process Process Process Description

5. 5. Types of 1) Made to order,

3) Outsourcing Semi-finished product,

4) Outsourcing finished product,

SL. As-Is Process Process Process Description

5) Job work done by us,

6) By-product including waste.

 Here they specify the quality in details.

SL. As-Is Process Process Process Description

 Sometimes the dept. also initiates biz enquiry.

 During this time the following things are checked :

SL. As-Is Process Process Process Description

SL. As-Is Process Process Process Description

SL. As-Is Process Process Process Description

10) Sales man name.

SL. As-Is Process Process Process Description

 All data on sales confirmation can be modified at any stage.

SL. As-Is Process Process Process Description

SL. As-Is Process Process Process Description

 More than 4 product in a blend is not possible,

 Count in fraction value is not allowed.

13. 10.1 Internal  There are 3 types of internal control.

 This is an internal checkpoint before a delivery order is issued. If the buyer do

SL. As-Is Process Process Process Description

 Approval of Credit Limit is a documents indicating the following :

14. 10.2 External  This is done by means of :

SL. As-Is Process Process Process Description

 Job card is a document.

1) Customer code (Customer name),

SL. As-Is Process Process Process Description

SL. As-Is Process Process Process Description

 The detail packing instruction comes to the sales dept.

SL. As-Is Process Process Process Description

SL As-Is Process Process Name Process Description

SL As-Is Process Process Name Process Description

22. 14.2.1 Invoice  For this following information is fed

 PEF - For export C&F

SL As-Is Process Process Name Process Description

SL As-Is Process Process Name Process Description

SL As-Is Process Process Name Process Description

SL As-Is Process Process Name Process Description

 Job work/Outsourced product

 FS series is allotted for FREE SAMPLE

SL As-Is Process Process Name Process Description