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Sales & Credit Control Material Management Purchasing Payroll HR General Accounting Fixed Assets & CAPEX
DailyCompare the production orders in SAP on a daily basis for
top 10 variance items.
Weekly
Order types used are appropriate to the nature of
transactions (e.g. deliveries to be billed, free
samples, replacements against goods returned,
defective goods, etc.). ZFSO is used for CCE, FOC
supplies and appropriately approved through a
block & release strategy.
Compare the production orders (In SAP / ERP) with that
uploaded in CF2000E for the period under review.
Investigate into differences. (orders available in SAP/ERP
and not in CF2000e should be seriously looked into. Likewise
orders in CF2000e not available in SAP/ERP should get
special attention).
Weekly
Proof of delivery information is available - both
carrier's and customer's acknowledgement
(signed and dated). Wherever a shortage/excess is
noted on the deliver documents, is there a
procedure to trace the reasons for such
excess/shortages and initiate recovery if required,
from the freight carrier. Check the process to
ensure that goods are not diverted to other
customers inadvertently (or) intentionally to
provide unintended extended credit.
All failed lots or cheeses from Dyehouse and Finishing have
to be transferred to the FAIL storage location from the
production orders.
WeeklyGoods returned are properly recorded and stock
records promptly updated.
Check whether production is issueing GT to cost centre
other than approved cases.
Weekly
Orders received are checked against credit limits
& overdue prior to dispatch of goods and except
those that had been properly authorized; other
breaches are "stopped". Are these parameters
appropriately defined in SAP (or other systems)
and reviewed at periodic intervals?
WeeklyCheck delays between date of cheques/cash
collections from customers and date of deposits
into bank for EPZ customers only.
WeeklyCheck if there is any COD from customers which is
prohibited.
Monthly
Cut-off procedures are clearly identified and
strictly adhered to. What is the process to ensure
that all goods delivered are invoiced and all goods
invoiced are delivered?
Check the process followed for quality inspection for items
received on consignment basis.
All materials & services received are routed
through Purchase Orders and comply with the
Group guidelines. Any exceptions are identified
and escalated for approval (e.g. auditors’ fees,
royalty payments).
Payments to casual workers are
authorised and correctly
controlled.
Clear policy guideline exists with regard to
lease/hire of vehicles and other amenities given
to employees and periodic monitoring of such
expenses.
Is the Balance Sheet review process in place?
Are assets (including real estate) adequately
insured as instructed in the Capital
Expenditure Policy?
Monthly
All prices (ZPRO & ZPNT) are updated in SAP and
available for raising invoices? Is there
authorization matrix with regard to the gross
margins to be earned. Wherever sales are made
to GKA customers, are GKA price lists available to
confirm that prices charged are appropriate?
Is there a database of items which were rejected due to
defect (or quality complaints) and the actions taken to close
them (e.g. replacements received/credit notes issued by
vendor).
Purchase invoices, GRN and orders are recorded
and matched.
All deductions are authorised and
calculated correctly.
Pool vehicle usages are restricted for business
purpose only and log books are properly
maintained.
Are Control accounts in agreement with subsidiary
ledger balances.
Monthly
Access to change rates/terms at the time of order
entry is restricted and appropriately authorized.
YPCM Report is generated on a monthly basis to
review all changes made at the order level and
appropriately authorized as per authority matrix.
Are all cycle count & physical stock take differences posted
into SAP only after approval through a park and release
strategy? Is the access to post stock adjustments restricted?
Purchase ledger is reconciled at least monthly to
the purchase ledger control in the nominal
ledger.
Control accounts are reconciled
monthly for net pay, statutory
deductions such as PF, tax etc.
Monitoring fuel consumption of company
provided vehicle including pool cars.
Are suspense accounts, Inter Office balances etc.
periodically reconciled.
MonthlyReasons for credit notes are analysed and
exceptions are reported to management.
The level of blocked stocks should be reviewed on a weekly
basis. Stocks should be blocked due to following reasons
only:
- Returns from customers during quality check;
- Inventory differences identified but not processed;
Check for double payment/invoicing.All statutory deductions are paid
in line with Government policy.
All employees’ related expenses (including
MDs) are approved as per one up principle and
expenses approval policy.
Other debtors and prepayments are reviewed
monthly and are fully realizable and appropriate
documents are available (wherever required) to
substantiate its recoverability.
MonthlyOverdue account collection systems exist and are
strictly adhered to. Supplies to overdue customers
are strictly regulated.
Confirm whether appropriate NRV provision is carried in the
books and complied with Group Policy requirements.
All non-statutory deductions are
paid on a timely basis and/or in
line with Group policy (e.g.
pension fund).
Business travel expenses must be incurred in
line with policy and any exceptions are
approved by MD.
Other creditors and accruals (e.g. Inbound &
outbound delivery, commissions, incentives,
discounts & rebates, etc.) are reviewed monthly and
are fully stated. Any excess accruals/amounts no
longer required are identified and reversed.
MonthlyConfirm that WIP value as per FICO is supported by open
production orders which are current and appropriately
valued.
All discontinued employees are
removed from payroll register and
bank instructions letter.
An aged creditor’s ledger is produced and reviewed
monthly.
MonthlyCheck whether all items are enabled for backflush and
manual backflush is disabled for movement type 261. All
issues to cost centre are appropriately approved.
Outstanding items in suspense and other clearing
accounts (GRIR & consignment clearing & Employee
Suspense) are current and valid.
MonthlyCompare the approved conversion factors with the factors
set in the SAP and inquire into differences (greater than
5%).
Provisions for known liabilities (e.g. bad and doubtful
debts, customers claims, irrecoverable VAT, etc.) are
adequate, comply with Group/Division policy and
regularly reviewed.
Sales & Credit Control Material Management Purchasing Payroll HR General Accounting Fixed Assets & CAPEX
MonthlyInquire whether an input-output reco is performed on a
monthly basis. Independently compute the waste.
Are all known expenses/liabilities accrued/provided
for while preparing the unit results.
Monthly
Compare order quantity with production quantity. In case of
MTO, ensure that excess production is considered for
dormancy / slow moving provision.
Bank reconciliation is prepared and reviewed
regularly with explanation of unreconciled items.
QuarterlyOutstanding debts are fully supported by relevant
sales documentation (invoices, despatch notes).
Monitoring of OTV to check multiple purchase
are not being done from them.
Employee insurance such as
medical & life coverage premium
is calculated correctly and
updated for all employees.
Have all local statutory accounts/tax filing deadline
been met.
Any missing assets are appropriately charged
off after such investigation and approvals.
Quarterly
Unadjusted credits (collections, credit notes) are
periodically reviewed and matched against the
customer dues to reflect current and correct
status of the customers’ balances.
Supplier statements reconciled & differences
actioned.
QuarterlyAre prices negotiated for MuM linked to the
cost of base raw materials and inflation thereof?
QuarterlyAre purchases following three quotations
principle?
Quarterly
Any shipment received other than by sea route
(Air, courier, etc.) are appropriately approved as
per the authority matrix, after appropriate
review. Are all freight transactions
substantiated by a freight contract (inward – as
per group negotiated terms) and outward (as
per local contracts)?
QuarterlyEvaluate open PO and resolve long pending
cases.
Quarterly
Where suppliers' credit is taken, it is evaluated
against alternative funding cost and appropriate
advice is sought before incurring such additional
costs re advance to suppliers should be
restricted.
QuarterlyVendor background data are updated and
reviewed for accuracy.
Half yearly
Credit limits are regularly reviewed as per Group
Credit Policy (twice a year review) and changes are
properly authorised. Credit limits are aligned to
average sales for past 12 months and forecast
sales.
Physical stock count is done twice a year as per group
norms. Insure that count is done by a multifunctional team,
instructions have been issued, and count sheets do not
contain quantity. Enquire into the differences and whether
the explanations sound reasonable.
PO authorization matrix defined in SAP for
approval of purchase orders is in line with local
authorization matrix within the ambit of
delegation of authority (DOA) matrix issued by
Group. How does one ensure that the purchase
orders are not split to violate authorization
limits?
All pay changes are approved and
aligned with policy
Code of business conduct has been signed as
required by Group HR policy and conflicts If any
have been disclosed & appropriately actioned
by Unit?
Leased assets are separately identified and recorded.
Group cut-off levels are observed for
capitalisation of small value items and spare
parts. SAP functionality is used for monitoring
stocks at the same time writing off low value
assets.
Half yearly
Customers’ credit limits > $200k are approved as
per Group Credit Policy prior to posting these
credit limits in SAP (or other systems). Also data
on credit limit and balances >$200k and overdue
in those accounts are reported in BCS on a
monthly basis.
A supplier database is maintained and regular
suppliers are periodically evaluated for price,
delivery and quality. The evaluation process
should be evidenced. All items have multiple
sources of supply and in case of single source,
action plans are in place to address supply
disruption and is flagged off in Risk
Questionnaire.
Holiday pay provisions are
adequate.
Systems are adequate to monitor funds
committed (e.g. POs, contracts) and estimate
total project cost to assure early warning of
potential overruns or scope changes and
provide the basis for a supplemental
authorisation request before authorised
funds are fully expended.
Half yearlyIs purchase committee is functioning as per ToR
including location based committee?
Fund management such as
accounts preparation, balance
circulation etc of PF/WPPF/SAF
are properly done and updated.
Capital WIP accounts are periodically
reviewed and followed up with user
departments for timely capitalization and
providing depreciation.
Half yearlyPayment terms are optimised. Access to change
credit terms at the time of PO creation or
Invoice Verification (MIRO) is restricted.
Provision for payroll related costs
are adequate such as
PF/Gratuity/WPPF/SAF/Insurance
etc.
Formal procedures have been defined for
asset disposal (such as, obtaining competitive
quotes, regulatory approval, internal
approval etc) and are followed.
Half yearly
Half yearly
AnnualPayroll accounting captured all
payroll related costs appropriately
to reflect correct employee costs.
All assets are marked/tagged with the asset
number corresponding to that shown in the
fixed asset ledger.
AnnualImpairment test is done annualy to comply
IAS 36.
Daily
Weekly
Weekly
Weekly
Weekly
Weekly
Weekly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Costing Treasury Accounts Payable Accounts Receivable Regulatory
Additive costs are captured in SAP to
reflect real price variances (freight, duty
and C&F charges).
What is the net exposure? if it is more
than US$ 2.5 million, have you hedged
your net forex exposure?
Supplier statements are reconciled to the
creditors ledger and the reconciliations are
checked by senior financial management.
Are all customer bills of exchange discounted with
recourse added back to debtors.
All price & manufacturing variances
(including revaluation reserve) are
appropriately capitalized (or charged to
results) as per FIFO template prescribed
by Global Management Accounting
Team.
For treasury deals, have you obtained
multiple quotes prior to finalization of
the deal?
Where sales are given away free, the costs needs to
be recognized in variable SDA costs.
Spare parts older than 2 years are
written off from the book
“Aged” lists of debtors to be produced at least
monthly
Provisions for obsolete, slow-moving
stocks and NRV basis are adequate,
comply with Group/Division policy and
regularly reviewed.
Debtors overdue by more than 6 months must be
fully provided, including the associated output
tax/VAT. Provision is required against the output
tax/VAT regardless of whether or not it is expected
to be recovered (and should only be released when
actual recovery has been achieved).
Sales are recognized as per group policy.
Monthly
Monthly
Quarterly
Quarterly
Quarterly
Quarterly
Quarterly
Quarterly
Quarterly
Quarterly
Half yearly
Half yearly
Half yearly
Half yearly
Half yearly
Half yearly
Annual
Annual
Costing Treasury Accounts Payable Accounts Receivable Regulatory
Have bank mandates been updated to
remove all personnel who have left the
company?
Accounts payable should review debit
balance accounts at least quarterly and
request remittance of old debit amounts
outstanding. Such remittance should be
submitted directly to the cash function.
Review of pending legal
proceedings status
Is there any cash forecasting in
practice to minimise the instances of
outstanding borrowing and cash in
hand?
Tax, VAT & other fiscal
charge compliance
Review of remittance &
transfer pricing compliance
Original invoices should be used as the basis
for payment. Where the original invoice is
not available a copy can be used only if it is
properly authorized.
Review of bonded
warehouse operations
The suppliers invoice should be matched and
compared to an approved purchase
requisition, purchase order, and appropriate
receiving information before payment. The
absence of any of the referenced information
or discrepancies between the information
(e.g. price quantity etc.) must be resolved
before payment is made.
Review of labour law
compliance
Invoices for which a purchase order or
receiving report does not exist (e.g. non
production services, cheque requests, one-
time purchases etc.) must be approved by
management in accordance with the
company approval authorization limits before
payment.
Ensure withholding tax/VAT are charged as
per requirement of law.
Approved payments must be made within
the agreed terms.
Signed cheques ready for handover must be
delivered to persons independent of invoice
processing and maintenance of accounts
payable records.
Review of BOI activities
Details of test Frequency
Order types used are appropriate to the nature of transactions (e.g. deliveries to be
billed, free samples, replacements against goods returned, defective goods, etc.). ZFSO
is used for CCE, FOC supplies and appropriately approved through a block & release
strategy.
Weekly
Proof of delivery information is available - both carrier's and customer's
acknowledgement (signed and dated). Wherever a shortage/excess is noted on the
delivered documents, is there a procedure to trace the reasons for such
excess/shortages and initiate recovery if required, from the freight carrier. Check the
process to ensure that goods are not diverted to other customers inadvertently (or)
intentionally to provide unintended extended credit.
Monthly
Cut-off procedures are clearly identified and strictly adhered to. What is the process to
ensure that all goods delivered are invoiced and all goods invoiced are delivered.Monthly
All prices (ZPRO & ZPNT) are updated in SAP and available for raising invoices? Is there
authorization matrix with regard to the gross margins to be earned. Wherever sales are
made to GKA customers, are GKA price lists available to confirm that prices charged are
appropriate.
Quarterly
Access to change rates/terms at the time of order entry is restricted and appropriately
authorized. YPCM Report is generated on a monthly basis to review all changes made at
the order level and appropriately authorized as per authority matrix.
Monthly
Goods returned are properly recorded and stock records promptly updated. Monthly
Outstanding debts are fully supported by relevant sales documentation (invoices,
despatch notes etc.).Quarterly
Unadjusted credits (collections, credit notes) are periodically reviewed and matched
against the customer dues to reflect current and correct status of the customers’
balances.
Quarterly
Reasons for credit notes are analysed and exceptions are reported to management. Monthly
Credit limits are regularly reviewed as per Group Credit Policy (twice a year review) and
changes are properly authorised. Credit limits are aligned to average sales for past 12
months and forecast sales.
Half yearly
Customers’ credit limits > $200k are approved as per Group Credit Policy prior to
posting these credit limits in SAP (or other systems). Also data on credit limit and
balances >$200k and overdue in those accounts are reported in BCS on a monthly basis.
Half yearly
Orders received are checked against credit limits & overdue prior to dispatch of goods
and except those that had been properly authorized; other breaches are "stopped". Are
these parameters appropriately defined in SAP (or other systems) and reviewed at
periodic intervals?
Weekly
Check delays between date of cheques/PO/DD collections from customers and date of
deposits into bank for EPZ customers only. Weekly
Check if there is any COD from customers which is prohibited. Weekly
Responsibility Remarks Sign off SC role
Customer
service manager
Every Saturday report will be
circulated
Customer
service manager
First week of May'14 we will
circulate first report
Finance
Controller
Reporting to be completed by
3rd day of month closing
Credit
ControllerWeek 4 April'14
Credit
ControllerWeek 4 April'14
Customer
service manager
Further discussion and
alternative solution to be
developed
Complaint goods return report from CWH on a monthly basis
AR executive Week 3 April'14 SOP for goods return to share with CWH
Credit
ControllerReporting is in place
Credit
Controller
Reporting from 1st week
May'14 with the help of FC.
Credit
Controller
Quarterly review at local level
with documentation
Credit
Controller
Pending approval to be
obtained a s a p
Credit
Controller
Weekly report from May'14
1st week onward
BillingReporting from 16th April
onward
Billing
Add disclaimer to the DN
copy as printed that all
claim should be lodged
with 72 hours
GP margin issue to deal with CC…
Complaint goods return report from CWH on a monthly basis
SOP for goods return to share with CWH
Details of test T-code Frequency
Check the process followed for quality inspection for items
received on consignment basis.ME23N Monthly
Is there a database of items which were rejected due to defect
(or quality complaints) and the actions taken to close them (e.g.
replacements received/credit notes issued by vendor).
Monthly
Are all cycle count & physical stock take differences posted into
SAP only after approval through a park and release strategy? Is
the access to post stock adjustments restricted?
MB51/BW Monthly
Check whether all items are enabled for backflush and manual
backflush is disabled for movement type 261. All issues to cost
centre are appropriately approved.
Monthly
Compare the approved conversion factors with the factors set in
the SAP and inquire into differences (greater than 5%)SE16 - table MARM Monthly
Inquire whether an input-output reco is performed on a monthly
basis. Independently compute the waste.Worksheet exercise Monthly
Compare the production orders in SAP on a daily basis for top 10
variance items.COOIS/yprodvar Daily
Compare the production orders (In SAP / ERP) with that uploaded
in CF2000E for the period under review. Investigate into
differences. (orders available in SAP/ERP and not in CF2000e
should be seriously looked into. Likewise orders in CF2000e not
available in SAP/ERP should get special attention)
MB51 , movement types
261,262, ( for CF2000
materials) storage
location 45 and 201,202
for other chemicals used
( effluent plant etc.)
Weekly
All failed lots or cheeses from Dyehouse and Finishing have to be
transferred to the FAIL storage location from the production
orders.
MC.1 for storage
location FAILWeekly
Check whether production is issueing GT to cost centre other
than approved cases.
MB51 (movement type
201, 202)Weekly
Responsibility Remarks Sign off
Plant Finance
Plant Finance
Plant Finance
Plant Finance
Plant Finance
Plant Finance
Plant Finance
Plant Finance
Plant Finance
Plant Finance
Details of test T-code Frequency
PO authorization matrix defined in SAP for approval of purchase
orders is in line with local authorization matrix within the ambit of
delegation of authority (DOA) matrix issued by Group. How does
one ensure that the purchase orders are not split to violate
authorization limits?
Half yearly
Vendor background data are updated and reviewed for accuracy. Vendor master Half yearly
A supplier database is maintained and regular suppliers are
periodically evaluated for price, delivery and quality. The
evaluation process should be evidenced. All critical items have
multiple sources of supply and in case of single source, action
plans are in place to address supply disruption and is flagged off in
Risk Questionnaire.
Half yearly
All materials & services received are routed through Purchase
Orders and comply with the Group guidelines. Any exceptions are
identified and escalated for approval (e.g. auditors’ fees, royalty
payments).
Check for direct invoice
entryMonthly
Where suppliers' credit is taken, it is evaluated against alternative
funding cost and appropriate advice is sought before incurring
such additional costs re advance to suppliers should be restricted.
Quarterly
Evaluate open PO and resolve long pending cases
ME2L/Queries of User
Group Coats_RO_MD,
transaction SQ01/BW
report
Quarterly
Purchase invoices, GRN and orders are recorded and matched.
ME2L/ME80FN/ME23N/
YFI_GRIR/F.19/BW
report/MB5S
Monthly
Check for double payment/invoicingS_ALR_87012341/S_ALR
_87009879/78Monthly
Any shipment received other than by sea route (Air, courier, etc.)
are appropriately approved as per the authority matrix, after
appropriate review. Are all freight transactions substantiated by a
freight contract (inward – as per group negotiated terms) and
outward (as per local contracts)?
Quarterly
Is purchase committee is functioning as per ToR including location
based committee?Half yearly
Are prices negotiated for identified MuM linked to the cost of
base raw materials and inflation thereof?MCE3 Quarterly
Are purchases following three quotations principle? Random basis Quarterly
Purchase ledger is reconciled at least monthly to the purchase
ledger control in the nominal ledger.F.42 Monthly
Supplier statements reconciled & differences actioned. F.42 Quarterly
Payment terms are optimised. Access to change credit terms at
the time of PO creation or Invoice Verification (MIRO) is
restricted.
BW/SAP Half yearly
Monitoring of OTV to check multiple purchase are not being done
from them.SAP Quarterly
Responsibility Remarks Sign off
FM
PM
There are gaps exist in SAP. From now
onward Musfiq will be responsible for
updating all backgraond data. All data will
be updated by Q3 2014.
PM
FM
FM
PM & FMWe will get a report and follow up by end of
April'14.
PM & FM GR/IR report to be generated every month end. Process to simplified
FM
Commercial
ManagerApril'14 end
FD
PMPlastic negotiation has been done, card
board will be done by end of this year
PMPR comparative report to be generated
quarterly
FM
FM
FM
PM April'14 end
Details of test Frequency Responsibility
Payroll accounting captured all payroll related costs
appropriately to reflect correct employee costs.Annual FM
All pay changes are approved and aligned with policy Half yearly COMBEN
Payments to casual workers are authorised and correctly
controlled.Monthly COMBEN
All deductions are authorised and calculated correctly. Monthly FM
Control accounts are reconciled monthly for net pay,
statutory deductions such as PF, tax etc.Monthly COMBEN
All statutory deductions are paid in line with Government
policy.Monthly COMBEN
All non-statutory deductions are paid on a timely basis and/or
in line with Group policy (e.g. pension fund).Monthly COMBEN
Holiday pay provisions are adequate. Half yearly COMBEN
Employee insurance such as medical & life coverage premium
is calculated correctly and updated for all employees.Quarterly COMBEN
Fund management such as accounts preparation, balance
circulation etc of PF/WPPF/SAF are properly done and
updated.
Half yearly COMBEN/Finance
Provision for payroll related costs are adequate such as
PF/Gratuity/WPPF/SAF/Insurance etc.Half yearly FM
All discontinued employees are removed from payroll register
and bank instructions letter.Monthly COMBEN
Code of business conduct has been signed as required by
Group HR policy and conflicts If any have been disclosed &
appropriately actioned by Unit?
Half yearly HR
Clear policy guideline exists with regard to lease/hire of
vehicles and other amenities given to employees and periodic
monitoring of such expenses.
Monthly HR
Pool vehicle usages are restricted for business purpose only
and log books are properly maintained.Monthly ADMN
Monitoring fuel consumption of company provided vehicle
including pool cars.Monthly ADMN
All employees’ related expenses (including MDs) are
approved as per one up principle and expenses approval
policy.
Monthly COMBEN
Business travel expenses must be incurred in line with policy
and any exceptions are approved by MD.Monthly ADMN
Remarks Sign off
GL input, Reconciliation with Salary Sheet.
Details of test T-code Frequency
General Accounting:
Balance Sheet review process is in place once in a month Monthly
Are Control accounts in agreement with subsidiary ledger balances. GL Monthly
Are suspense accounts, Inter Office balances etc. periodically reconciled. GL Monthly
Other debtors and prepayments are reviewed monthly and are fully
realizable and appropriate documents are available (wherever required)
to substantiate its recoverability.
GL Monthly
Other creditors and accruals (e.g. Inbound & outbound delivery,
commissions, incentives, discounts & rebates, etc.) are reviewed monthly
and are fully stated. Any excess accruals/amounts no longer required are
identified and reversed.
GL Monthly
An aged creditor’s ledger is produced and reviewed monthly. Monthly
Outstanding items in suspense and other clearing accounts (GRIR &
consignment clearing & Employee Suspense) are current and valid.
ME23N/YFI
_GRIR/F.19/
MB5S
Monthly
Provisions for known liabilities (e.g. bad and doubtful debts, customers
claims, irrecoverable VAT, etc.) are adequate, comply with Group/Division
policy and regularly reviewed.
Monthly
Royalty and GKA commissions are accounted on cash basis as per group
guidelines, except at the year end when it should be accrued and
reconciled as part of schedule J reconciliation. Any unbranded items sold
and whether it is excluded for royalty calculations.
Quarterly
Leased assets are separately identified and recorded. Half yearly
Are all known expenses/liabilities accrued/provided for while preparing
the unit results.Monthly
Have all local statutory accounts/tax filing deadline been met. Quarterly
Bank reconciliation is prepared and reviewed regularly with explanation
of unreconciled items.
Excel
workingsMonthly
Fixed assets & CAPEX:
Group cut-off levels are observed for capitalisation of small value items
and spare parts. SAP functionality is used for monitoring stocks at the
same time writing off low value assets.
Half yearly
All assets are marked/tagged with the asset number corresponding to
that shown in the fixed asset ledger.Annual
Systems are adequate to monitor funds committed (e.g. POs, contracts)
and estimate total project cost to assure early warning of potential
overruns or scope changes and provide the basis for a supplemental
authorisation request before authorised funds are fully expended.
Half yearly
Capital WIP accounts are periodically reviewed and followed up with user
departments for timely capitalization and providing depreciation.
AUC from
Y_FAMHalf yearly
Formal procedures have been defined for asset disposal (such as,
obtaining competitive quotes, regulatory approval, internal approval etc)
and are followed.
Half yearly
Any missing assets are appropriately charged off after such investigation
and approvals.Quarterly
Impairment test is done annualy to comply IAS 36.Excel
workingsAnnual
Are assets (including real estate) adequately insured as instructed in the
Capital Expenditure Policy?Monthly
Costing:
Additive costs are captured in SAP to reflect real price variances (freight,
duty and C&F charges).Monthly
All price & manufacturing variances (including revaluation reserve) are
appropriately capitalized (or charged to results) as per FIFO template
prescribed by Global Management Accounting Team.
y_cd2_8900
0030/BW
report
Monthly
Provisions for obsolete, slow-moving stocks and NRV basis are adequate,
comply with Group/Division policy and regularly reviewed.BW report Monthly
Activity costs calculation and run in SAP in time. Annual
Treasury:
What is the net exposure? if it is more than US$ 2.5 million, have you
hedged your net forex exposure?Monthly
Is there any cash forecasting in practice to minimise the instances of
outstanding borrowing and cash in hand?Quarterly
For treasury deals, have you obtained multiple quotes prior to finalization
of the deal?Monthly
Have bank mandates been updated to remove all personnel who have
left the company?Quarterly
Payable:
Original invoices should be used as the basis for payment. Where the
original invoice is not available a copy can be used only if it is properly
authorized.
Half yearly
The suppliers invoice should be matched and compared to an approved
purchase requisition, purchase order, and appropriate receiving
information before payment. The absence of any of the referenced
information or discrepancies between the information (e.g. price quantity
etc.) must be resolved before payment is made.
BW report Half yearly
Invoices for which a purchase order or receiving report does not exist
(e.g. non production services, cheque requests, one-time purchases etc.)
must be approved by management in accordance with the company
approval authorization limits before payment.
Half yearly
Ensure withholding tax/VAT are charged as per requirement of law.S_P00_0700
0134Half yearly
Approved payments must be made within the agreed terms. Half yearly
Signed cheques ready for handover must be delivered to persons
independent of invoice processing and maintenance of accounts payable
records.
Half yearly
Supplier statements are reconciled to the creditors ledger and the
reconciliations are checked by senior financial management.F.42 Monthly
Accounts payable should review debit balance accounts at least quarterly
and request remittance of old debit amounts outstanding. Such
remittance should be submitted directly to the cash function.
F.42 Quarterly
Accounts Receivable:
Sales are recognized as per group policy. Monthly
Are all customer bills of exchange discounted with recourse added back
to debtors.Monthly
Where sales are given away free, the costs needs to be recognized in
variable SDA costs.
BW report
of FOCMonthly
“Aged” lists of debtors to be produced at least monthly Monthly
Debtors overdue by more than 6 months must be fully provided,
including the associated output tax/VAT. Provision is required against the
output tax/VAT regardless of whether or not it is expected to be
recovered (and should only be released when actual recovery has been
achieved).
Excel
workingsMonthly
Responsibility Remarks Sign off
FC
FC
FC
FC
FC
Management Accounting Manager
Management Accounting Manager
FC
FC
FM
FC
FM
FC
Management Accounting Manager
FM
FM
FM
FM
FM
FM
FM
Management Accounting Manager
Management Accounting Manager
Management Accounting Manager
Management Accounting Manager
FC
FC
FC
FC
FM
FM
FM
FM
FM
FM
FM
FM
FC
AR executive
FC
AR executive
FC
Details of test Frequency Responsibility Remarks Sign off
Review of bonded warehouse operations Half yearly FM
Review of BOI activities Annual FM
Review of remittance & transfer pricing compliance Quarterly FM
Tax, VAT & other fiscal charge compliance Quarterly FM
Review of labour law compliance Half yearly HR
Review of pending legal proceedings status Quarterly HR
Status review of different type of agreements Monthly FM
Quarterly
Monthly
Order No of rep Original or der Status Date Return stat
Rep deliverd 4/4/2014 Not returned