Van Sales. The objective of this procedure is to describe all the activities associated with handling the accounts of Van Sales

Transcription

1 1. Objective 2. Scope 3. Inputs The objective of this procedure is to describe all the activities associated with handling the accounts of Van Sales The scope of the activities defined in the procedure is applicable to the Finance Department of Axiom Telecom UAE Sales / Stock Reports from HANDHELD System (PDA portal) Schedule Aging report 4. Hierarchy and responsibility Finance Manager Manager Credit Controller Senior AR Recon Cashier Stock counter Page 1 of 15

2 5. Requirements Activity : Pre-activities Requirements Manual Invoice (only used when it is not possible to issue invoice using the HANDHELD) - Define Customer in ERP - Define Site in ERP (each customer should be linked to particular site). Customers set up in system P.O.S. (Handheld) - Define Customer in ERP - Define Site in ERP - Update (Synchronize) in the Handheld If Customer with Credit: Credit limits/ credit in days to be recommended by Channel Manager, reviewed by Country Finance Manager and should be approved by Country VP in charge. Update of the credit terms in the ERP by credit controller upon receiving the official documents and credit application Customers paying by cheques will be considered Credit Customers and limits need to be set initially since cheques take 2-4 days to be collected (in addition to bouncing back risk). Bouncing cheques When cheque bounced back; credit limits should be stopped (will be blocked in Handheld), and payment collection transfer customer to cash, or VP approval Page 2 of 15

3 6. Activities Activity : Daily Collection (1) To ensure On-Time & Correct payment collection from van sales reps. Deliver Cage to warehouse Sales Rep/ Security (Handheld Interface) Sales Rep to put the HANDHELD on the docking station to synch with system (download daily sales data and update the inventory) start data interface and Day End Process. In Case of manual invoice due to data problem, correction should be in same day in coordination with IT maximum by next day morning. Sales Rep Day End Process and data transfer to ERP sales report (HANDHELD Interface) Customers Wise sales Report with copy of all sales invoices done including details of collections done (cash and cheques) Sales Rep / Cashier sales report - HANDHELD system (HANDHELD Interface) Confirm from manual invoice book that; all the invoices have been captured (from customer account in the system) to insure that no manual invoice is still pending (in case of any pending - to be listed in the daily reconciliation) Cashier sales report with copy of all invoices attached with the actual cash and chqs received Sales Rep to do the daily sales process the cashier sales report with support The sales rep will submit the customer wise sales report + detailed support (invoice copies) + daily collections + details of manual invoices and other issues that could not be solved in the same day + reconciliation (if required) Sales Rep / Cashier sales report with support Page 3 of 15

4 Activity : Daily Collection (1) To ensure On-Time & Correct payment collection from van sales reps. sales report with support Upon receiving the amount & cheques, Cahier will approve Customers Wise sales Report based on the credit available. Cashier sales report with support Hand over Sales rep to Cashier Sign and stamp (dated stamp) the above report as proof of receiving the money & documents. As proof of handover of all cash and cheques from Sales rep to cashier, one copy to be kept with Sales Rep and the other with accounts. Issue document listing all cheques received from the Sales Rep (list of cheques received & customer name signed by Sales rep to be able to track bounced cheques). Cashier will fill all details of van wise customer wise sales report on the consolidated sales report sheet. This will be the summary daily sales report having all required details to be submitted end of the day from Cashier to Cashier sales report with cash and cheques details. Signed with two copies one with sales rep and the other for accounts + list of cheques received by Sales rep signed. Place cash and cheques in cashier safe. sales report (for each van sales) and the daily sales report Repeat above process for each van sales rep Cashier / Sales Rep sales report and the Daily sales report (including customer wise, van wise sales and collections of cash and cheques for the day) Page 4 of 15

5 Activity : Daily Collection (1) To ensure On-Time & Correct payment collection from van sales reps. Daily sales report with support (customer wise sales report + cheques and cash) Cashier to send the Daily sales report (excel) to the accountant and hand over the cash and cheques to the accountants Cashier / Daily cash collection report Cash & cheques entry in system Receipts notes to match respective invoices Process AR receipts according to payment mode per customer per van. (For cash, to be processed as one batch for all customers/ vans of that area & receipt reference will be money receipt voucher #s) (For cheques, the receipt number will be the cheque number with money receipt voucher #). Return the cheques to the cashier for storing and deposit Process Receipt Summary Report to recall receipts voucher and apply it with related invoices ERP Applied or Unapplied Receipt Voucher Report ERP Summary Receipts Report & Applied or Unapplied Receipt Voucher Report. Cash & Cheques with the deposit slips Prepare cheques deposit as per bank standard rules of deposit (i.e. one deposit = for several cheques listed per available fields, ) Deposit the money in the bank. The bank deposit slip is kept with accountant as proof of deposit, and attached to the Daily sales report (excel) Note: Cash and cheques to be handed over to bank collector wherever the facility is available and as per the process agreed with the bank Cashier Cashier / Collector assigned by Bank Bank deposit Slip Bank deposit Slip Page 5 of 15

6 Activity : Daily Collection (1) To ensure On-Time & Correct payment collection from van sales reps. In case of out station receivables accountants Once online banking shows money realized; clear the receipt from cash management. Forward the support documents (daily sales report on excel + customer cheque list + Applied & Unapplied Receipt Voucher Report + Bank deposit slip) Senior for review & approval. Bank GL account is / Bank updated & cash Recon management is cleared / Senior Journal voucher of posted bank deposit entry + Excel reports + receipt voucher reports. Internet banking could be used for verification. Discrepancy (Cash Shortage) Discrepancy (Bounced Cheque) In case of cash shortage found & verified while cash is being collected from Sales Rep, Cashier to inform the Van Sales Supervisor prior to handover. After that; the form will be signed by both the Cashier & the Van Sale Supervisor mentioning the discrepancy found & obtain the Sales Rep signature as proof of shortage. Note: Credit Controller / Country Finance Manager to be informed first thing in the morning. In case any cheque bounces, inform the Sales Rep/ Van sale Supervisor to take necessary actions. When a cheque bounces, the reimbursement will be done by cash only and not by cheques. Also, any sales in excess of credit limit will be on cash basis only, or else approval from VP should be obtained before the sale takes place (on credit) Cashier/ Van sale Supervisor Receivable /, Sales Rep & VP Discrepancy signed; to Credit controller/ Country Finance Manager. Page 6 of 15

7 Activity : Daily Collection (2) Receivable reconciliation done for all payment received on daily basis for any reconciliations + Confirm van receivables accounts nullified (Preparation of all ERP entries and receipts) To ensure On-Time & Correct payment collection from van sales reps. / Senior Reconciliation Report Credit Note : Price reduction / any discount as per agreement Can also be recorded in the Invoice for proper control (included in the HANDHELD) Price protection or any other benefits to be intimated by the channel manager to the sales team and receivables manager by ; RM to cascade it to the receivables team Credit notes issued should be checked by the Receivable. Verify the customer Credit Note against invoices sold in previous period (max 3 days old), verify price and received & book the credit memo - or Auto Entry in ERP For credit notes backed by Suppliers, proper confirmation from the brand team/ or the supplier benefits accountant is needed in order to be processed Review Credit Note and approve/ modify if required. Deliver Credit Note to Sales Rep. Credit note to be used as mean of payment (deduction) from the next issued invoice to the customer. Van sales Manager/ Manager Receivable / Senior Send for notification Credit Note / Invoice verified Approved Credit Note Issue Credit Note per customer The Sales Rep based on information received will deliver the Credit Note per customer Sales Rep Credit Note Page 7 of 15

8 Activity : Credit Controlling / market collection Based on the credit Terms / Payment Terms The will review the aging report after all transactions are completed in system (daily) will also generate the account status report from ERP to know the uncollected invoices Monitor & Control the Credit Terms are maintained all Times Aging report Credit Monitoring Where Exceeding the limits The same report to be reviewed by the Credit controller for credit limits / terms control Credit monitoring is available in the PDA itself - Sales reps will not be able to invoice once the credit limit is reached. In case a credit sale is made exceeding the credit limit without approval from the VP, same needs to be escalated to the credit controller by the cashier Any outstanding / Exceptional cases will be informed by the Credit controller to Country Finance Manager/ Channel managers/ VP for necessary actions Credit Controller Van Sales Team/ Cashier/ Credit Controller Credit controller Credit Monitoring on PDA Page 8 of 15

9 Activity : Inventory Based on the schedule the physical Inventory has been updated in the system Based on the schedule, the Stock counter will prepare for stock take for van warehouse (cage) Variance should be Nil Stock Counter Process to be started in the evening after sales uploading. Stock Counter Conduct the count, upload to ERP for variance report and reconciliations. Stock Counter/ Sales rep Sales rep signed physical stock count result Verify adjustment for variance if any in System Stock counter/ IT department Inform the Van Sales Supervisor for necessary actions & approval. In case of shortage, send info for payroll to do salary deduction & inform CFM & Channel manager for gap. Country Finance manager approve cycle count Stock Counter Country Finance Manager Stock updated Page 9 of 15

10 Activity : Bank Reconciliation Cash / Credit Cheques (both on time/pdc) reconciliation should be prepared on daily basis. Cheques should be kept in the Cashier's safe as per maturity date sequence. (Daily; Receipt Journal report shows all matured cheques need to be deposited in Bank) Cashier must insure that all the maturing cheques must be handed over to the bank's collector to be deposited before bank closing time. Tallying bank account with books Cashier/ Bank Collector Receipt Journal Report Recommendation: Cash management & bank reconciliation should be segregated & managed by GL to have job segregation & controls from different division. Prepare the reconciliation with supporting document for all pending payments - Bounced/ PDC cheques, cash for the days deposit not yet done only non working days of the end of the month should be pending for cash deposits Coordinate cash bank account reconciliation with GL on daily basis to insure all bank deposits are cleared. Or Receivable accountant to do reconciliation depending on country setup Receivable GL / Receivable accountant , Reconciliation report Page 10 of 15

11 Activity : Day to Day Follow up Sales return for Phone care Ensure daily Control on stock movement and on time status of store inventory 1. At the customer: inspect the damaged phone. Collect the defective unit from the customer (if it s eligible for replacement) and send to Phone Care for further inspection. 2. After receiving the Phone Care report, if it is eligible for replacement then replace the same model to customer (if the same product is available) If not available then make the sales return and issue credit note to customer. 3. Sales rep post the SR with the DOA approval, accountant will apply the CN with future sales. Van sales rep/ Phone care/ Move order to Phonecare, Phone care to accept SLI Prepare weekly status on unresolved issues pending during the week to the Country Finance Manager. Pending issues related for more than one week time need to be addressed on top priority to insure repetitive mistakes are avoided.???? Note: Since all warehouse operations are handled by logistics, the above part to be deleted from the finance SOP Page 11 of 15

12 Activity : : Stock controlling ( Issue / Receipt ) The Van Sales Supervisor will also allocate the special items- Recommendation Requisitions Form - Van Sales rep - given for items needed to the Store Keeper for issue in evening To maintain the physical stock variance as Nil Sales rep Stock Requisition Form ( limits of distribution Loading of Items to be defined ) All stock in system transfer will have their own reference no. to be matched for transfer between the locations Check the stock Availability in system (warehouse) Prepare available stock for deliver; process move order in ERP Load the items in the van in presence of van driver, Van Sales rep, Security & Store Keeper & get signature of Sales rep & Security on the move order Then the will verify the approval of Salesman, Security & Store Keeper Confirm - Mover order for van location posted in the system Stock Return Form will be made for items to be returned and given to the warehouse Store Keeper Receivable / Store keeper each enter his location Store Keeper Sales rep and Security Receivable Receivable Sales rep Move Order Move Order Stock Requisition Form (return) Proper approval signatures to be made in Stock Transfers / move orders Return physical stock in the presence of Sales rep, Security & Store Keeper, generate the move order in warehouse location to be signed by security, sales rep and store keeper, signed copy filed with security and store Store Keeper, security and sales rep Signed move order by Security, Sales rep & Store Keeper Page 12 of 15

13 Activity : : Stock controlling ( Issue / Receipt ) To maintain the physical stock variance as Nil to verify the approved form & posting done move order in van location. Receivable Move Order Warehouse based on the move order posted, the stock is updated in the system, Store Keeper Move Order Inspection of material during the receipt to be evidenced & ed, any damages to be recorded & Actions to be initiated for improvement - Recommendation Note: Since all warehouse operations are handled by logistics, the above part to be deleted from the finance SOP Page 13 of 15

14 Activity :Commissions AS PER COUNTRY STRUCTURE FOR COMMISSIONS Page 14 of 15

15 7. Outputs Receipt Voucher Cash / Cheque Deposit receipt Reconciliation Report Aging report 8. Monitoring and Measurement Refer to Process Control Sheet 9. Forms and s Name Sales / Stock Reconciliation Sheet Receipt Voucher Cash / Cheque Deposit receipt Invoice Reconciliation Report Credit Note Move order Stock Requisition Form Credit Monitoring Report Aging report 10. Interfaces None 11. Process Tailoring None Page 15 of 15