Business System

Procedures
Presented By:- Abhishek S.
Pandit
Roll No.:- 61106
Loan Approval System
In A Co-operative Bank
 A loan is the lending of money from one individual, organization or entity to
another individual, organization or entity.

A loan is a debt provided by an entity (organization or individual) to another

entity at an interest rate, and evidenced by a promissory note which
specifies, among other things, the principal amount of money borrowed, the
interest rate the lender is charging, and date of repayment.

Introductio A loan entails the reallocation of the subject assets for a period of time,
between the lender and the borrower.

n
Co-operative banks provides loans to its members for the purchase of
agricultural implements, loans for cultivation and agricultural trade, fishery
loans, loans for construction of houses and for a variety of other expenses.

To approval  for an  Co-operative Bank loan against property, you must be
either a self-employed professional or a salaried employee working in a
reputed private company or government organisations.
 Customisable Loan Amount: Individuals can avail any loan amount up to Rs.5
lakh. 

Flexible Repayment Term: Based on your EMI repayment capacity, you

can opt for a loan tenure when applying for this loan.

Features  Interest Calculation: The lender calculates the interest for this loan on a daily
reducing balance basis. 

Pre-Payments are Permitted: Borrowers are allowed to prepay their loans.

Also, New India Co-Operative Bank does not charge a pre-payment fee or
commitment fee even if the borrower makes pre-payments, unless the loan
has been taken over by another bank or financial institution. 
 The working of people take loans from Co-operative banks.

The other major source of cheap credit in rural areas is the co-operative banks.

Members of a co-operative pool their resources for co-operation in certain areas.

There are several types of cooperatives, namely:-

Working • Farmers co-operatives .

• Weavers co-operatives .

Of System 
• Industrial workers co-operative

The Co-operative accepts deposits from its members.

Using the deposit as collateral, the Co-operative bank obtains a large loan from the bank.

The loan amount received from the bank is used as funds to provide loans to the members.

Once the members repay the loans the amount is repaid to the bank and a fresh loan is taken from the bank.

The Co-operative provides loans to its members for the purchase of agricultural implements, loans for cultivation
and agricultural trade, fishery loans, loans for construction of houses and for a variety of other expenses.
 The processing fees is a lot lower
compared with a commercial bank.
The best part is that most SUCBs do
not charge a prepayment penalty for
home loans.
Benefits
Even for other loans, overall there
are better terms and conditions and
lower cost of the loan in co-
operative banks compared with
commercial banks.
  Limited ability to mobilize resources. 

 Low Level of recovery.

 High transaction of cost.

Problems  Administered rate of interest structure for a long

time.
 RBI  Supervision.

 Professional management and technological

advancement.
Purchase Order System In
A Manufacturing/Service
Oraganisation
 The purchase order system is the journey of a purchase
order (PO) from creation through purchase order
approval, dispatch, delivery, invoicing, and closure. It also
includes budget checks, contract management, quality
checks.

Once a purchase order is accepted by the vendor, it

Introductio becomes a legally binding document. A purchase
order outlines the required items, the agreed-upon price,
n delivery expectations, and payment terms.

Purchase orders system provide concrete instructions for

the vendor while offering buyers a solid paper trail that
can be used as a point of reference when clarity is
required in your procurement process.
 Vendor price books can be entered into the system using the vendor price form. When entering a
product on the purchase order form, the default price is supplied from the vendor price file.

Purchase orders can be automatically generated for under stocked inventory items. The best price
for the required number of units is selected from the vendor price file.

Purchase orders can be entered manually or generated automatically, printed and sent to the
vendor.

When a shipment is received, receiving slips can be entered manually through the receiving form, or
they can be generated automatically by running the receiving process. Inventory is automatically
updated at the time the receiving slip is created.
Partial shipments are permitted. The receiving form can be edited to reflect over or under shipment.

Features
Multiple shipments against a single purchase order can be handled by the system.

Defective and returned products can be tracked through the receiving form.

Vouchers can be entered manually through the voucher screen, or can be automatically generated
by running the voucher process.

Various reports are provided for displaying purchase order information. These reports are useful in
analyzing vendor performance and determining future cash needs.
 The shop owner notices they are low on inventory.

The shop owner creates a purchase order laying out exactly what they need from the
supplier, and how much they will pay for it.

The supplier responds “yes,” because they can provide those items, and accepts the
order.

The supplier could respond “No,” if they are out of stock, an item has been discontinued
Working or there are other issues with the order, in which case the purchase order is canceled.

Of System  The supplier fulfills the order and delivers the items on the agreed due date.

The supplier issues a bill or sales invoice for the purchased items.

The buyer pays for the item, and the sale is processed through the sellers POS system.

 If any return goods are available then create GIN (Good Inward Note) transfer
goods to production and return defective goods.
 Reduced time spent on procurement processes

A purchase order system ensures good data quality

Improved control of the procure-to-pay process

Benefits Achieve real-time cost control with a purchase order system

Easy access to historic data with a digital archive

Less people dependent than with manual processes

Improved data security with a purchase order system

 Manual purchase orders are costly, inefficient,
and time-consuming to maintain.

There are too many documents required to

process a single purchase order.
Problems

Acquiring, storing, and sending them through

the approval loop while ensuring they don’t
get lost or damaged along the way is
extremely tedious.
 Sample of
Purchase
Order Invoice 
Quality Audit
System
 Quality audit is the process of systematic examination
of a quality system carried out by an internal or
external quality auditor or an audit team. 

This can help determine if the organization complies

with the defined quality system processes and can
Introductio involve procedural or results-based assessment criteria

n Quality auditing is the systematic examination of an

organization's quality management system (QMS).

They can also help determine whether an organization

is compliant with the requirements of a specific quality
system
 Quality management is the act of overseeing all activities and tasks that must
be accomplished to maintain a desired level of excellence. 

This includes the determination of a quality policy, creating and

implementing quality planning and assurance, and quality control and quality
improvement. 

Quality management is the act of overseeing all activities and tasks that must
FUNCTIONALITY be accomplished to maintain a desired level of excellence. 

This includes the determination of a quality policy, creating and

implementing quality planning and assurance, and quality control and quality
improvement. It is also referred to as total quality management (TQM).

In general, quality management focuses on long-term goals through the

implementation of short-term initiatives.
 Audit management:-For a QMS to function optimally, it requires regular
audits and reviews. An audit management tool helps organizations plan,
schedule and facilitate audits, review results, and generate corrective or
preventative action requests.

Correct and preventative action management (CAPA):-CAPA manages and

tracks actions by automating the entire CAPA process – from problem
discovery to complete resolution. It captures events from across the
organization, and routes actions to the appropriate quality teams for
resolution.      
Training management:-A QMS is only as good as the people performing the
Features  process tasks. Training management optimizes employee training by tracking
activities, where the employees are in the process, and whether the relevant
course materials have been completed.

Cloud-based:-A cloud-based quality management system is secure, reliable,

cost -effective and accessible anywhere, and at any time.

Flexible pricing:-QMS software with a subscription-based pricing model and

flexible user packages offers the best ROI. 
 Quality auditing is the systematic examination of an
organization's quality management system (QMS).

A quality audit is typically carried out by an internal or

external quality auditor or audit team.

Working They can also help determine whether an organization is

compliant with the requirements of a specific quality system.
Of System 
Auditing is defined as the on-site verification activity, such as
inspection or examination, of a process or quality system, to
ensure compliance to requirements.
Some audits have special administrative purposes, such as
auditing documents, risk, or performance, or following up on
completed corrective actions
 Compliance:-Obviously this is one of the main reasons to conduct an audit: to
meet the statutory requirements and regulations in your industry. An audit
provides complete peace of mind for business owners and shareholders that the
organisation is 100% compliant with all of its current statutory obligations.

Business Improvements / System Improvements:-A thorough, in-depth audit

takes an impartial look at your organisation’s internal systems and controls. This
means it’s an ideal opportunity for the auditing experts to suggest
improvements that can make your business more efficient.

Credibility:-An audit provides independent verification that the financial

Benefits  statements are a true and fair representation of the entity’s current situation.
This provides invaluable credibility and confidence to your organisation’s
customers/clients, stakeholders, investors or lenders and even potential buyers.

Detect and Prevent Fraud:-. An audit can be an effective tool for identifying
fraud and opportunities to commit fraud. Experienced auditors are skilled at
pinpointing weaknesses in an organisation’s systems and controls and
suggesting ways to strengthen these to prevent fraud occurring.

5. Better Planning and Budgeting:-An audit confirms the accuracy of an

organisation’s financial statements by analysing its financial transactions. It’s a
detailed process and can result in certain types of income, expenditure, assets
and liabilities being scrutinised.
 Engagement letter. It had always been a challenge to draft an almost
perfect engagement letter.

Revenue recognition. This proves to be one of the most complicated

and sensitive areas of audit for the most obvious reasons. 

Fraud. 

Challenges 
Inventory. 

Written representations. 

Documentation. 

Audit report.
 A Warehouse
Management System
(WMS)
 Introduction

• A warehouse management system (WMS) is a software application that helps control and
manage the day-to-day operations in a warehouse. WMS software guides inventory receiving
and put-away, optimizes picking and shipping of orders and advises on inventory
replenishment

•  A Warehouse Management System enhances inventory management by decreasing inventory

levels, improving order fulfillment, and reducing order cycle time. ... Distributors and
wholesalers know exactly what is in the warehouse, where it is located, and when it needs to
be replenished at all times.
 Receiving goods.

Tracking stock.

Ensuring efficiency in storage.

Functions
Picking and shipping.

Providing information to managers.

Despatching goods.
 Use of Mechanical Appliances

Sufficient Space

Proximity to the Market

Features Parking Facility

Safety Measures 

Economical

Proper Management
 Shipping &
Receiving

Working Of
System
 Stage 1:
Stage 9:
Expectations Stage 8: Data
Testing. 
and Motivations

Process Stage 2: Risk Stage 7: Stage 10:

Reduction  Training.  Deployment

Stage 6: Design
Stage 3: Stage 11:
and
Business review Support
Customization

Stage 4:
Stage 5: Team
Implementation
Building
schedule
 Faster Enhanced
Inventory Customer
Turnover Service

Utility Warehouse
Better Stock
Personnel
Control
Reduced

Optimised Improved
Warehouse Labour
Space Productivity
 Excess stock.

Lack of space.

Challenges Low traceability and

connectivity.

Excess procedures.

Incorrect
time management.

Inaccurate inventory
and outfitting.
 Inventory
Management System
 • Inventory management and supply chain management are the backbone of any
business operations. With the development of technology and availability of
process driven software applications, inventory management has undergone
revolutionary changes. In any business or organization, all functions are
interlinked and connected to each other and are often overlapping. Some key
aspects like supply chain management, logistics and inventory form the
backbone of the business delivery function. Therefore these functions are

Introduction extremely important to marketing managers as well as finance controllers. 

• Inventory management is a very important function that determines the health

of the supply chain as well as the impacts the financial health of the balance
sheet. Every organization constantly strives to maintain optimum inventory to
be able to meet its requirements and avoid over or under inventory that can
impact the financial figures.

•  Inventory is always dynamic. Inventory management requires constant and

careful evaluation of external and internal factors and control through planning
and review. Most of the organizations have a separate department or job
function called inventory planners who continuously monitor, control and
review inventory and interface with production, procurement and finance
departments. 
 Barcode scanning: Easily identify and track your products; inventory
management software integrates with barcode scanners for instant
product identification and labeling.

Multilocation management: Manage multiple warehouses and points-of-

Features 
sale (POS). All locations can be integrated within a single inventory
management system.

Stock returns handling: Manage returns more effectively by reducing

time-to-return through automation of the entire process.

Purchase order records: Create a single view of purchase order records.

You can easily identify which products are in demand, both perpetually
and seasonally, and prepare to meet your customers’ needs.

Stock notifications: Receive alerts and notifications when there’s over- or

under-stocking beyond a defined threshold. This helps you to place orders
or offer promotional discounts to clear out extra stock.
 Working Of System
• Goods are delivered to the receiving area of the warehouse. These can
include:
1.  Raw materials and components (for manufacturers)
2.  Finished goods for resale (for distributors)
3. Indirect materials that support the daily operations of a business but
not production (businesses of all kinds)

• Goods are reviewed, sorted, and stored on shelves in special stock areas.
Small businesses may not have a separate receiving department, and the
warehouse will serve double duty as a stocking area. Goods may be assigned
stockkeeping unit (SKU) codes and tagged with barcodes for easier tracking.
 Working Of System

• Inventory levels are monitored regularly, with physical inventory counts performed
periodically in addition to whatever automated inventory management measures are in
place. This ensures everyone has an accurate understanding of available inventory and
helps minimize the chance of stockouts, dead stock, missed or duplicated orders, and risk
exposure due to theft and fraud.
• Orders are placed by customers, either internal or external. For example, a consumer may
place a purchase order for the company’s products, the sales department may submit a
sales order, or a staff member may submit a requisition for office supplies.
• The order approval is verified against original purchase order, sales slip, internal purchase
requisition, etc.
 Working Of System

• The required goods are pulled from stock areas and sent either to production
(manufacturing), directly to the retailer/customer/end user (finished goods),
or routed to the appropriate business unit/department (internal requests).
• Records are updated and shared with all relevant stakeholders.
• Inventory levels are used to restock goods and materials as needed. For Just-
in-Time systems, usage data may be analyzed to create more accurate
forecasts.
 Benefits 

• Order management.
• Inventory control (IMP).
• Multichannel sales (depending on your industry and customer base).
• Centralized and comprehensive reporting and data analysis.
• Inventory forecasting.
• Purchase order creation and management.
• Warehouse management and synchronization.
 Challenges

• Limited visibility to inventory

• Inefficient inventory management process
• Identifying Incorrectly located material
• Tracking obsolete mater
• Keeping up with Overstocks
• Managing inventory waste and defects
• Lack of centralized inventory hub
Thank You