Accounts SOP[1]

8/3/2019 Accounts SOP[1]

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AVANT GARD HOSPITALITY PVT LTD

Standard Operating Procedure - SOP

Accounts & Finance.


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1. ROLE OF FINANCE FUNCTION

To ensure effective application of specialist expertise to aid the achievement of organisational objectives,especially through formulation and implementation of financial strategies that would appropriatelysupport business strategies. To therefore,

.be in constant awareness of organisational objectives and strategy.shift focus from tasks to strategies.continually enhance specialist skills.

2. ROLE OF THE ACCOUNTS MANAGER.

As head of the restaurant finance / accounts and material functions specific responsibilities wouldinclude

.Proper maintenance of books of accounts including statutory compliance with rega

rd tocompanies act


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.Timely completion of external / internal audits with personal accountability fortheimplementation of agreed audit points.

.Responsible for capital expenditure including fixed asset accounting/insurance.To ensure thatlaid down systems are followed for acquisition of assets, write-offs / disposalsand appropriateapproval obtained.

.Remittance of all statutory payments and submission of returns in time.

.Continuous monitoring / review of various cost control measures and revamping them wherevernecessary

.Overall management of working capital including management of receivables, inventories andensuringa. Quick collection process by strict follow up as per systems laid down.b. action is taken for reduction of non moving and slow moving items.

.Submission of accurate MIS reports to Management in time

.Training and development of supervisory cadre in multiple functions within finance includingidentification of supervisors for growth.

.


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Provide adequate and timely guidance to functional heads in the restaurant on all aspects of

a. Revenue

b. Movement of cost / cost controlc. Analysis of variances including profit reviews.d. Bring to focus areas of cost control / revenue leakages to the attention of Director.e. Areas where basic policies of the restaurant are in violation of laid down policies to bebrought to the attention of the Director.

3. REVENUE ACCOUNTING AND DAILY MIS


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1. The primary responsibility of the Accounts manger is to ensure the revenue isaccountedaccurately and the all the statutory levies is been collected from the customer.He need to cross

check the Daily Sales Report as per IDS is accurate.2. Cash Collection as well as the Credit card collection should match with the Daily Sales Summary.The cash collection of the previous day should be handed over to the Accounts Manager in thePrescribed cash hand over envelop writing the denominations. The credit card settlement shouldtally with the batch close of the EDS machines. F&B Service team should give reasons in case ofany discrepancy.3. No cash transaction is allowed in the cash collection unless the written instruction from the

Director. The Cash collection amount should deposit to the bank in the prescribed dates and thecounter foil should verify and Certify by the Restaurant Operational Manager frequently.4. The Accounts manger need to run the programe in IDS to create the Sales Journal on daily basis.5. Its the duty of the Accounts Manager to prepare a report of Daily MIS to the Management in theprescribed format based on the Daily Sales Report before 11 am every day.6. The credit card settlement should be tagged every day based on the transaction summary fromAxis and Amex. Ensure the Bank charge is accurate.

4. RECEIPT VOUCHER

1. A receipt voucher is by F&B Service staff/Accounts personal prepared as and when cash or cheque orDD is received from a customer/ Staff. There should be separate book available in F&B Service andthe Finance & Accounts.2. There should be one printed serial number running for the complete financialyear.3. The name of the guest / company from whom the money is collected should be clearly indicated.4. Where the payment is through a DD / cheque its reference number and date should be given.5. Where the payment is for a group of individuals a list should be enclosed giving individual guestname and amount.6. The F&B Manager is to ensure the cash along with the voucher is handed over to the Accounts &

Finance Manager as soon as the receipt of the cash. Once received the details the Accounts Managerhas to account the same in IDS and one copy of the receipt voucher to hand over


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to the F&BManager.

7. In case the cash receipt for the advance booking, once the billing is settled

in Advance in the POS , acopy of the receipt voucher to be attached for the immediate reference of the Accounts.

5. BANK PAYMENTS

1. A Bank payment voucher must be prepared for all payments effected. It shouldbe in numericserial order with one serial number running for the full financial year. NO PAYMENT SHOULD BEMADE WITHOUT BANK PAYMENT VOUCHER.

2. Original bills / GRN / supporting documents should be attached to the voucher. The bills shouldbe stamped by security to confirm receipt of goods at the restaurant. In extremecases where billsare not practicable an inter office memo/ Mail from the concerned HOD should beenclosed.

3. No payments should be made on duplicate / photocopy of bills. In case the original bills are lost aNON PAYMENT CERTIFICATE must be obtained from the payee before releasing the payment andthe individual creditor account sub ledger should be checked for sufficient credit balance beforereleasing the payment.

4. Paid seal to be affixed on all bills / supporting.

5. Bank payment voucher will be checked by the Accounts Manager and approved by


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Director.


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6. For all material related payments, original bills, GRN and security seal is amust. Before releasingpayment the purchase order terms also needs to be checked. For all service related paymentsoriginal bill is mandatory.

7. Where part payments are made for the same bills separate paid stamps to be affixed on the billgiving individual payment details of cheque number / date / amount.

6. PASSING SUPPLIER BILLS

1. Check the P.O. terms for the following.Quantity.Rate.Taxes.Delivery schedule.Advance payments

.Payment in parts.GRN to be checked for actual quantity received

2. Where the quantity received is in excess of 5% of the quantity ordered payment should be made onlyafter the excess receipt is explained by purchase / stores and duly approved bythe user department.

3. Where the P.O does not provide for part deliveries, payment should not be made until the deliveryschedule is completed.

4. Where the payment is for a service rendered, the bill should be verified withthe job/work order. A

work completion certificate must be taken from the user department HOD. TDS applicability shouldbe checked before payment is made.


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5. For the regular suppliers/Vendors before making the PJV ensure that valid agreement is in place. Inthat case ensure the payment terms are strictly followed.

6. The bills must be checked for arithmetical accuracy.

7. Payment should not be made on duplicate /photocopies/ proforma invoices.

8. Where the payment is in respect of a material taken out of the restaurant forrepairs/ servicing etc.,the gate pass should be checked for exit and security seal for entry into the restaurant.

9. All payments should be made by Account Payee crossed cheques only. Paid seal to be affixed onall bills / supporting.

10. The individual creditor account sub ledger should be checked for adequate credit balance beforepayment.

11. In case of Payment of advance , check the PO terms and approval.

12. Before passing entry in the system it should be insure that advances if anyis settled/adjusted.

7. BANK RECONCILIATION STATEMENT


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1. Bank Reconciliation statement should be drawn up by the 4th of every month and sent to Boardalong with Monthly MIS.

2. The statement of account from the Bank should be obtained by 2nd of every month.

3. The BRS as on 30th September and 31st March (Half yearly closing and Annual closing) shouldcontain only Cheques issued but not presented and Cheques deposited but not credited. In otherwords it should not contain,.

Bank charges


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.Unexplained debits /credits by Bank.Totaling mistake in Bank statement.Stale cheques

4. Discrepancies in Bank statement should be taken up with Bankers within 48 hours of completingBRS.

5. Once the BRS is completed all outstation cheques deposited but not credited t

o our account for morethan 21 days should be taken up with Bankers for follow up action. Where the credit is given to ouraccount beyond 21 days we should get interest for the delayed period as applicable to SB account.(local cheques should be credited within 48 hours of deposit)

6. Certificate of balance must be obtained from Bankers on 30th September and 31st March of everyyear.

7. In case of dishonor of cheques it has to be brought to the notice of Directorpeople within 24 hours ofreceipt of the advice from Bankers.

8. Cheques which are more than six months old (stale cheques) should be reversedby a journal entry.

FORMAT OF BRS

BALANCE AS PER BANK STATEMENT


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Add Cheques deposited but not credited

Name Cheque No. Date Amount

Less Cheques issued but not presented

Name Cheque No. Date Amount

Balance as per our Bank book (General ledger)

9. SUNDRY DEBTORS

1. All the credit sales should be approved by the director. Before the ODC partythe Accountsmanager to be intimated about the ODC sheets and terms of understanding of payments.

2. Vendor master to be created with all the relevant details in the IDS and it is to be ensuring thatthe bill is settled in the correct vendor code.3. The F&B Team has to handover the credit bills in original duly signed by theCustomer with theODC sheet. The accounts manager has to cross check ODC sheet with the bill for the no of paxand the rate agreed for is tallying and all the relevant statutory levies are charged.4. The credit bill along with the ODC sheet and covering letter should be forwarded to the Customeron the same day.

5. A statement of Pending debtors to be made in every 15 days and should be circulated toconcerned. It is the Accounts Managers duty to follow up with the concerned team


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member for thesettlement of amount and ensure no credit is lying more than one month. If so itto be noticedimmediately to the Director.


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11. SECURITY AND CONTROL OF CHEQUE BOOKS

CHEQUE BOOKS

1. All fresh cheque books will be received by the Accounts Manager (or his designated assistant) andchecked to ensure that all cheque leaves are in serial order.

2. Cheques to be issued by the cashier in serial order only.

3. Cheque once prepared and cancelled should be retained in the cheque book. Thesignature shouldbe cancelled and the cheque defaced.

4. All cheque books should be kept in the cash box under lock and key at the endof each working day.

5. Only one cheque book shall be in use at a time.

6. Accounts department will be responsible for safe custody of cheque books

12. TIME BARRED CHEQUES

As per negotiable instruments act a cheque is normally valid for 6 months from the date of issue and afterthis period the instrument becomes invalid.

.Once the cheque has become stale (invalid) intimation must be given to the partyasking them to


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return the stale cheque for re issue of a fresh cheque.

.Before issuing a fresh cheque the Bank should be advised to stop payment of the

stale cheque asper proforma below.

Bank Name

Address

Dear sirs,

Account Number

Time barred cheque.

We have issued cheque no. dated. For Rs. In favour of..

This cheque has not yet been presented to you as per your statement of account.As this chequehas now become time barred, please note to stop payment of this cheque and confirm.

Yours faithfully,

For Avant Garde Hospitality Pvt Ltd

Authorised Signatory.

.On receipt of the stale cheque and on receipt of confirmation from the Bank of having stopped

payment, this cheque is cancelled and the entry reversed.


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.A fresh cheque in lieu thereof is issued for the same amount. A new bank paymentvoucher ismade for this payment. This voucher should be cross-referenced to the previous one.

.If the party has misplaced the cheque and it has become time barred, a fresh cheque is issuedonly after getting a letter from the party and bankers on the confirmation of stopping payment.


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13. CHEQUES LOST IN TRANSIT / MISPLACED

1. Where cheques issued by us are lost in transit by the party a letter from theparty must be obtainedin the following format :

We regret to inform you that cheque no dated for Rs. Issued by you insettlement of our bills has / have been lost in transit / misplaced

In case this cheque is later traced, we guarantee that it will be returned to you for cancellation.

We therefore request you to issue a fresh cheque in lieu thereof.

2. Further a stop payment letter should be issued to the bankers and confirmation from the bank taken

for having noted the stop payment instructions.

3. A fresh cheque can be issued after fulfilling both these conditions.

14. JOURNAL VOUCHER

1. A Journal voucher is used to account provision entries, make rectification entries and foraccounting revenue related and expense related (capital and revenue) entries.

2. The journal voucher should be system generated and must be in serial order with one serial for the

full financial year.


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3. No Journal entry should be passed affecting cash or bank book.

4. Complete narration explaining the nature of transaction must be given in Journal voucher.

5. All Journal entries passed for accounting expenses should be approved by Director and remainingjournals approved by the accounts in charge.

6. Proper supporting documents should be attached to the journal vouchers.

7. Printouts of journal vouchers should be taken on a monthly basis and filed inserial order.

15. PURCHASE JOURNAL VOUCHERS (PJVS)

1. PJVs are prepared on receipt of invoices for goods / services and GRN from stores department.

2. PJVs should be used in numeric serial order with one serial for the full year.

3. PJVs should also be made for utilities by government agencies such as electricity, water, telephoneetc.,

4. While accounting PJVs care should be taken to debit the correct inventory / asset / expenditurehead of account and credit supplier account. In case of new items in the invento

ry item care shouldtaken to ensure it is accounted in the same inventory head.


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5. PJVs should be prepared within 24 hours of receipt of bills / invoices / GRN.

6. Once the data entry of PJVs are done the same should be filed along with thebills / GRN in theUNPAID CREDITORS FILE. When the payment is taken up the same should be removed fromunpaid file and filed along with the Bank payment vouchers.

7. All PJVs should be checked by the accountant and approved by Director.


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16. SALARY ADVANCE PROCEDURE

1. An application should be made in the following format

.Name of the applicant (whether confirmed staff).Date.Reasons.

Amount.Name of surety (whether confirmed staff).Previous balance if any.Gross salary

Signature of the Signature of the Approved by

Applicant surety Personnel /R. Manager.

Dept.

2. HR department to maintain a salary advance register in the following format

Name

Date ofadvance

Amountsanctioned

Grosssalary

Name of

surety

Recovery


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details

Previousbalance ifany

Approval

3. Salary advance can be given only to the extent of 70% of one months gross salary to a confirmedstaff.

4. Salary advance request cannot be entertained after 20th of the month till theend of the month.

5. There has to be one surety who should be a confirmed staff. One person cannotbe a surety for morethan 2 applications.

6. No salary advance is permitted if any previous balance is remaining outstanding.

7. All salary advance should be recovered in one installment from the salary ofthe month in which thepayment is made, for e.g. Salary advance paid on 1st October, 19th October etc.,

should be recoveredin October salary itself.


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8. All salary advance applications should be routed through accounts before approval for checkingprevious unsettled balances if any.

9. Where the employee leaves the organisation and if any salary advance is outstanding the sameshould be recovered in the final settlement. Under extreme circumstances where it is not possible torecover the advance from the employee the resort should recover the same from his surety.

10. Restaurant HR department will be responsible for administering this policy.Where HR is not there itwill be the responsibility of Accounts.

11. Accounts department to open individual subledger for each employee for easymonitoring.

17. STATUTORY MATTERS

The following are the statutory matters for the restaurant.

A consolidated statement to be prepared for the restaurants together for the statutory payments everymonth and ensure the accuracy of the calculation.

1. Remittance of VAT and submission of monthly returns in time. Monthly return should be submittedbefore 20th of every month. Separate sheet and a consolidated statement to be prepared for the Input


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and out put vat and accounting correctly. If the payment is made in the HO ensure the correspondingentries passed in the related books.2. Remittance of PF and ESI and submission of monthly returns in time. Employercontribution to PFand ESI to be accounted in the books separately and a consolidated payment to be

made.3. Remittance of TDS and submission of annual/Quarter returns and the TDS Certificate in time.4. Calculation of Advance Tax payable and remittance in time.5. Submission of Excise returns to the authorities monthly on liquor consumptionand stock balances.Coordinate with the F&B team and the F&B Controller to ensure the accuracy of the stock in bothPhysical and in Excise Books.6. Renewal of all licenses of the restaurant (refer to the list of licenses)7. Payment of Vehicle tax / Insurance in time.

It will be the responsibility of Accounts Manager to ensure that all the above statutory matters are fullycomplied with.

Accounts Manager should give monthly statutory matters compliance report along with the Monthly MISand hence there is absolutely no scope for any delays in the payments / submission of returns/ renewal

of licenses.

18. CASH PAYMENTS

1. Cash payments must be restricted to disbursements of minor nature for which issue of cheque is notpracticable

2. A cash payment voucher ought to be made which should have a serial number running for the fullfinancial year.

3. Original bills / GRN / supporting documents should be attached to the voucher. The bills have to bestamped by security to confirm receipt of goods at the resort. In extreme caseswhere bills are notpracticable there must be an inter office memo from the HOD.


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4. No payments can be made on duplicate / photocopies of bills. In case the original bills are lost aNON PAYMENT CERTIFICATE must be obtained from the payee before releasing the payment.

5. Cash paid seal should be affixed on all bills / supporting documents

6. Receivers signature should be obtained in all cases.

7. All employee payments such as conveyance, medical, travel advance / travel expenses etc., should beas per management policies governing the same.

8. The amount in figures and words (cash voucher) should match.

9. Where settlement of an IOU is made the IOU reference should be given in the c

ash voucher.

10. Correct code should be used for debiting the expenses

11. Cash should be handed over to the payee ONLY AFTER all these points are adhered to.

12. No cash payment exceeding Rs. 20000/- be made in one voucher. However this rule does not applyto central / state government payments such as sales tax, luxury tax, PF/ESI, License fees and TDS.

13. All cash payment vouchers should be checked by the accountant and approved b

y the Director.


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19. IOUS

1. IOU is a temporary advance given to an employee to meet certain urgent expenses for the day to dayoperations.

2. IOU should be given to an employee ONLY and not to outsiders (supplier, contractor etc.,)


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3. All IOU should be settled within 48 hours of receipt failing which a writtencommunication sent tothe employee to settle the same within 24 hours of receipt of this communication.

4. All IOUs pending beyond 72 hours should be brought to the notice of Directorfor corrective action.In any case IOUs cannot remain outstanding beyond 7 days.

5. All IOU should be settled in cash only and in extreme cases could be recovered from salary.

6. No part settlement of IOU is permitted and it should be settled in full.

7. No fresh IOU should be given if the earlier one is pending.

8. IOU voucher should be serially numbered with one serial number running for the full financial year.

9. As and when the IOU is settled it should be defaced with a SETTLED stamp giving the cash paymentvoucher reference, amount and date.

10. All pending IOU should be recorded in the daily petty cash checklist and checked by the AccountsManager while closing the cash everyday.

FORMAT OF IOU VOUCHER


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Voucher No. Date :

Please pay a sum of Rs (Rupees in words to the undersigned towards

.

I undertake to settle the same within 48 hours as per rules of the company

Receiver name Receiver signature Checked by Approved

By

Manager Accountant Resort

20. GATEPASS

1. Separate set of gatepass for returnable and non returnable with distinct serial no. should bemaintained.

2. Gatepass should be made in 3 copies. Original for the person taking the materials, 1st copy for theuser department and the last copy to be retained with the book by security. In case of void gatepassall three copies should be available in the book along with reasons for voiding.

3. All Non returnable gatepass should be approved by Director (in his absence bywhosoever officiates)and all returnable gatepass should be approved by Accounts Manager except returnable gatepassrelating to laundry which is approved by Restaurant operational Manager for the

linen movement.


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4. Returnable gatepass to clearly mention the date of return

5. Security to maintain a register separately for returnable and non returnablein the following format.

Sl.No.

GP No. /date

Itemdescription

Quantity

Returnabledate

Date of actualreturn

Remarks


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6. Security will clear the materials to move only after the gatepass is found inorder and properlyapproved. All gatepass should be clearly stamped by the security.

7. Security to make a fortnightly report (15th and 30th of every month) called PENDING GATEPASSREPORT, which should highlight all materials due for return and not actually returned to the resort.This report should be given to the resort HR department for their follow up withcopy to Resortmanager. Where HR is not there this report will be given to Accounts for followup with copy toDirector.

8. Accounts department will pass the monthly security payment only after checking all gatepasses andpending gatepass report.

9. All Non returnable gatepass should clearly indicate the reasons for classifying the materials as non-

returnable. For eg., material belongs to contractor, scrap being sold etc.,

21. FIXED ASSETS

1. It is essential here to distinguish and understand capital and revenue expenses. Any expenseswhich results in enhancing the value of asset or an expense which increases theearning capacity,useful life or an expense which is expected to have an enduring benefit may be defined as Capitalexpenses.

Any expenditure, which is incurred to keep the asset in working condition or anexpenditure, whichis recurring in nature, may be defined as Revenue expenditure.


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In distinguishing expenditure between capital and revenue value and time elements are ofimportance.

2. As a policy all purchases of assets (capital expenditure) will have to be ref

erred to Director only. Inother words there is no delegation of powers to the HODs on this matter.

3. The Concerned HODs will have to submit all capital expenditure requirements to Director in theprescribed Capex form along with quotations and justifications for the purchase.

4. All such capex proposals should have been budgeted for at the time of AnnualBudget exercise.

5. It is mandatory to maintain a fixed asset register in the following format.

.Name of the supplier.Bill / Invoice No..No. of items..Total cost ( includes cost of addition and improvements).Date of purchase.Identification number.Location.Bank payment voucher reference & date

6. This register must be updated as and when a purchase is made. It will be a prudent practice toensure that payment to the supplier is released only after updating the asset register.


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7. Write offs and disposal of all fixed assets need specific sanction from the Director. Upon receivingthe sanction the Accounts Manager may effect write off entry in the books of account and proceedwith disposal in the manner sanctioned.

8. Once the sanction is obtained from the Director competitive bids in sealed covers have to beobtained. It is also advisable to get the asset valued by an independent valuerin order to ascertainthe true market value.


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9. The most competitive bid (highest) should be accepted.

10. Verification of fixed assets should be done once a year (before close of the

financial year).

11. A team consisting of the following people should be constituted for the verification

One person from accounts

Concerned head of the department

One person from purchase

12. The verification sheets must be prepared in duplicate and one copy should besubmitted to theDirector. The physical balance is compared with the fixed asset register.

13. No variances are allowed in fixed assets and in case of any variation the sa

me should beinvestigated for appropriate action.

14. The verification sheets should provide for obsolete / damaged items.

22. PHYSICAL VERIFICATION OF STOCKS

GENERAL

1. All stocks have to be physically verified on the last day of the month. Purchase / store in charge toissue an IOM to all HODs informing stock taking and no receipts / issues are permitted on that day.

2. Physical verification must be done in the presence of one representative fromaccounts and stores.For food, beverage and housekeeping inventory in addition to the two representat


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ives, anotherperson from the concerned department should be present.

3. As a standard procedure, the physical count should be taken first and then cr

osschecked with thebook stock.

4. The inventory sheets should contain.Date of inventory.List of all items.

Physical balance.Book balance.Variance.Remarks.Names and signature of the persons involved

in the stock taking process

5. Stocks should be easily identifiable and properly arranged for easy verification.

6. Where the variation in stocks is more than Rs. 250/- in value it should be investigated.

FOOD INVENTORY

1. The inventory should start after all food deliveries for the day have been completed or reachedminimal levels.

2. Counting should be a continuous process without stopping midway.


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3. Once the inventory count is over the book stock should be written against each item and variancecomputed. The variance in terms of quantity and value should be recorded.

4. Food inventory in the kitchen should be done on a weekly basis for the purpose of calculating weeklyfood cost reports.

5. The inventory of Meat, Fish and Poultry in the deep freezer should also be included.

6. The food inventory sheets should contain the following :


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Items Stock at Stock at Stocks in Total

Main stores kitchen deep freezer

BEVERAGE INVENTORY

1. It is an accepted procedure to take inventory of Bar during the morning before opening hours forbusiness.

2. The physical inventory should be compared with the Excise records and no variations are permittedbetween book stock and physical stocks.

3. The combined total of the storeroom and bar inventories represents the inventory value for themonth for accounting and reporting purposes.

4. Tobacco stocks should be verified the same way as Beverage stocks.

HOUSEKEEPING & ENGINEERING

1. All items issued to HK and Engg, from main stores are taken to consumption account irrespective ofwhether they are stocked at their respective areas.

2. However for control purpose the departments should keep track of all items received from stores andissued to guest areas in their internal register with closing balance at any point of time.

3. This register should be maintained date wise, item wise and should be available for inspection by


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the accounts department.

4. Inventory should be carried out on the last day of the month along with a representative from

accounts and variations recorded.

OTHERS

1. All personal telephone charges of Staff are to be debited in their ledger and

deducted from Salary.

23. INTER BRANCH ACCOUNTING.

1. The Accounts Manager should ensure all the liabilities and expenses is paid by HO on behalf of thebranches is accounted in the concerned books correctly. The entry should happensimultaneously inall the books using logemein.

For Eg : Payment of salary >

In Caperberry Books

Salary Account ( only of CB) xxxx

Directors Salary (Apportion) xxxx

Service Chage (Actual of CB) xxxx

Fava Control Account(incl salry,Ser,Dir Salary) xxxx

Melting point Control Account xxxx

To ESI Payable (Employee Contri of all the Restu) xxxx


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To PF Payable account xxxx

To Salary Advance xxxx

Salary Advance xxxx

Cafeteria Deduction xxxx

Salary payable Account xxxx


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In FAVA Books.

Salary Account ( only of Fava)) xxxx

Directors Salary (Apportion) xxxx

Service Chage (Actual of Fava) xxxx

ESI Payable account xxxx

PF Control account xxxx

To Cafeteria Deduction xxxx

To Salary Advance xxxx

To ESI Payable

To PF Pable account

Head office control account

2. The Control Accounts should be reconciled before 2nd of every month and all the entries to be passedand the control accounts ensure is tallied.

24. CLOSING OF ACCOUNTS

20.1 FIXED ASSETS

1. Schedule to be made giving the opening balance as of 1stApril and details ofall additions during theyear. Photo copies of all invoices of additions to assets during the year to beattached to theschedule.

2. Fixed asset register to be updated for all the additions during the year. (Payment of fixed asset bills to

be taken up only after the asset register is updated)


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3. Capex pending allocation account should not have any balance and entries in this account should betaken to the respective fixed asset accounts.

4. Fixed assets verification should be carried out by the restaurant by 25th Febevery year.

20.2 INVENTORIES

1. The balance under the various inventory accounts such as guest supplies, cleaning supplies,operating supplies, Kitchen fuel, engineering supplies, Uniforms, linen, china and glasswareminerals, soft-drinks, beer, wines & spirits and cutleries should match with theactual inventoryavailable in the MAIN STORES.

2. There should be no balance under inventory printed stationery and general stationery as of 31st

march. Any stocks of the above as at 31st march should be charged off to consumption account.

3. Materials issued to house keeping, engineering, F&B departments from main stores should becharged off to consumption accounts irrespective of whether the concerned departments carry theseitems as stocks.

4. Physical inventory to be taken on 31st march at main stores, housekeeping & F&B departments.

5. Please keep the inventory levels as at 31st march as low as possible (withoutaffecting the day to dayoperations and stock out situations). Do not go in for major purchases during the last week of March.


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1. staff as at 31st march.

3 SUNDRY DEBTORS

2. The balance in this account as of 31st march should match 20.5 PAID OUTS

There should be no balance under this head as of 31st march. If there are any payments made on behalfof the guest, the same has to be recovered at the time of check out.


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20.6 CREDIT CARDS

1. The schedule as of 31st march should give , date wise amounts outstanding anddetails of charge

backs if any.

20.7 SALARY ADVANCE, LOANS AND TRAVEL ADVANCE

1. Detailed schedule giving employee wise, date wise, amounts outstanding as of31st march shouldbe drawn up.

2. Steps to be taken to recover salary advances and settlement of travel advances. There should beno balance under travel advance account for journeys completed on or before 31stmarch.

20.8 PRE PAID INSURANCE, TAXES, LICENSES, PERMITS AND EXPENSES

1. The balance in this account as of 31st march should be the un-apportioned amount of the nextfinancial year.

2. Schedule to be drawn up giving item wise details and specifying the period towhich it relates to inthe next financial year.

20.9 CASH AND FLOAT ACCOUNTS

A certificate to be given by the and Accounts Manager giving denomination-wise details of closing cashand float balance as of 31st march.

20.10 BANK ACCOUNT


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1. Bank reconciliation statement as of 31st march to be enclosed. The reconciliation should containonly cheques issued but not presented and cheques deposited but not credited. Please follow up

with the bank for all cheques deposited but not credited exceeding 21 days.

2. The reconciliation should not contain Bank charges, unexplained debits /credits and totalingmistake.

3. Please take a certificate of balance in duplicate from your Bankers for auditpurpose.

20.11 PRE-OPENING EXPENSES (NOT WRITTEN OFF)

1. The treatment of this account will be on the same lines as prepaid expense accounts.

2. Pre-opening expenses are to be written off over a three-year period and hencethe balance under thisaccount should represent the unapportioned amount for the next two financial years. One third ofthe amounts under this account should be charged off to pre-opening expenses (written off) accountduring the financial year.

20.12 SALES TAX, SALARIES, SERVICE TAX, P.F, E.S.I PAYABLE ACCOUNTS OF T.D.S

1. The balance under this account as of 31st march should relate to the month ofMarch only

2. All statutory payments upto February should be paid to the department before

the due dates alongwith the necessary returns. The march figure alone shall appear in the scheduleto be paid in April.


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20.13. OUTSTANDING EXPENSES

This head of account should contain provisions for items such as electricity, water, telephone, GRNsmade on every month for the accuracy of the monthly MIS reports.

20.14 SUNDRY CREDITORS


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1. The schedule to be drawn up on the same lines as of sundry debtors giving bill wise, date wise,supplier wise details of amounts payable.

2. There should not be any debit balance in this account.

3. Conformation of balance to be obtained from a few suppliers for audit purpose.

20.16 IOUS

1. All IOUs should be settled within 48 hours. In case of any IOU beyond 48 hours, accountsdepartment should send a written communication to the concerned staff to settlethe same within 24hours of receipt of this communication

2. If there are any IOUs still pending in spite of these efforts, it has to be brought to he notice of theresort manager for corrective action.

3. In any case there should be absolutely no IOUs pending as of 31st march.

22.4 SETTLEMENTS.

1. The settlement can be broadly categorized as under

.Cash.


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Card.Staff

2. At the end of the shift the cashier makes a summary of all bills raised during the shift giving thesettlement as described above.

3. Cashier to deposit the settlement summary, bills (stapled with the respectiveKOTs), cash drop cover,Credit card charge slips in safe deposit locker at the end of the II shift

4. For all cash settlements a CASH PAID stamp to be affixed on the bill.

5. For all settlements through cards the cashier must observe the guidelines.

23. DAILY CASH RECEIPTS ACCOUNTING

23.1 OUTLET CASHIER.

1. At the end of each shift outlet cashier will prepare a cash turn-in envelope(cash drop cover) forsurrendering the daily receipts to the Accounts Department along with the systemgenerated salessummary sheets.2. During periods of high sales and receipts, periodic cash transfers be made through out the cashiersshift so that minimum balance is maintained at the cash counters.3. The Restaurant Manager to check the cash turn in envelopes daily and physically check the cash.

4. All shortages to be investigated and recovered from the concerned staff and overages credited to theoverages / shortages account.


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5. The daily cash collections should be deposited in the bank on the prescribeddates.

6. At the end of the day general cashier to take a printout of the petty cash ac

count (system generated)physically check the closing cash balance and record the IOUs and denominationsof cash. TheCashier/F&B Manager should have a register to record the Daily collection and itshould beacknowledged by the Accounts Manager.


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7. All cash shortages and overages must be reconciled daily. Particular attention should be paid torepetitive cash irregularities by the same cashier as this could indicate carelessness or dishonesty.Any pattern of consistent large cash overages should be investigated for the same reasons.

29. LIST OF LICENSES FOR RESTAURANT

29.1 LICENCES

1. Trade Licence2. Excise / Bar Licence3. Local VAT / Central Sales Tax Registration4. PF / ESIC Registration; Registration under shops & Establishment Act5. Service Tax / Professional Tax Registration

6. Nomination under PFA7. Weights & Measures Licence.8. Employment Exchange / Contract Labour / Apprentice Training9. LPG clearance10. Copyrights for display of recorded music.

29.2 INSURANCE

1. Fire Insurance at Reinstatement value2. Public Liability Insurance3. Machinery Breakdown4. Fidelity / Cash in-transit Insurance)5. Motor Insurance for all vehicles


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Documents

Accounts SOP[1]