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Policy Title Policy No. FIN-001
Department/s Effective
Date
January 01, 2017
Prepared by Signature
Release of Goods from Warehouse, Creation of
Invoice & Collection, Bank Deposit, Sales Report
Generation and Financial Statement Report &
Presentation
Warehouse - Field Sales - Cashiering - Logistics -
Finance/Accounting - Audit
Rex D. Espiritu, CPA, Consultant
RDE ERP SUCCESSFUL QUICKBOOKS ACCTG SYSTEM & DESIGN
CONSULTANCY SERVICESP.O. Box 31836 ZIP Code 31952
1st Street King Fahad & Mansour Street
North Al Khobar, KSA
1. PURPOSE
1. The Warehouse Department is responsible for the following:
1.1.1 The efficient release of goods from stockroom to ensure the goals of the
establishment is met.
2. The Field Sales Department is responsible for the following:
1.2.1 Through preparation of Delivery Note, release of goods from warehouse must be
in accordance with the policy on cut-off timing and day.
1.2.2 The sale of goods to achieve its target level and/or budgeted sales and
collection of payment from customers.
1.2.3 To bring back the returned items from customer to Warehouse and marked
“RETURNED ITEMS - DEFECTIVE”. And to coordinate with the Purchasing
Department to return or exchange the defective goods to the supplier/s.
1.2.4 To bring back/return the items for the reason of Sale Cancellation.
3. The Cashiering Department (Showroom Branch) is responsible for the following:
1.3.1 Acknowledge receipt of Delivery Note by checking the code number of items
and quantity of the released goods from Warehouse.
1.3.2 Encode all delivered goods in the QB system thru the creation of Delivery
Receipt.
1.3.3 Maintain Customer Center in the QB System per Individual Customer Details and
contact numbers
1.3.4 Creation of Cash/Credit Invoices per Individual customer
1.3.4.1 Name of Customer
1.3.4.2 Item Name
1.3.4.3 Item Code
1.3.4.4 Quantity
1.3.4.5 Selling Price
1.3.4.6 Total Amount
1.3.5 Encode cash collections per individual customer in the QB system thru Receive
Payment Module.
1.3.6 Receive & count cash collections and deposit immediately on the following
bank business day and forward the Bank Deposit copy to the Accounting
Department for Bank Reconciliation purpose.
4. The Procurement Department is responsible for the following:
1.4.1 Based from the PO & Supplier’s Invoice, the creation of new Item in the QB
System – Item Name, Item Code, Cost and Selling price before Delivery of goods
to Warehouse, Branch No. 1.
1.4.2 Adding back the quantity of returned items from customers thru encoding the
Inventory Quantity Adjustment in QB system as per Delivery Note with Returned
Items.
5. The Finance/Accounting Department is responsible for the following:
1.5.1 Checking individual customer’s printed Cash/Credit Invoice on the following
details:
1.5.1.1 Name of the Customer
1.5.1.2 Item Name
1.5.1.3 Quantity
1.5.1.4 Selling Price against Standard Price List Hard Copy
1.5.1.5 Total Amount of the Invoice
1.5.2 Checking of total quantity in the Delivery Receipt against total quantity of all
Cash/Credit Invoices. Account the difference and prepare adjusting Journal
Voucher (if there’s difference between Total Quantity per Delivery Receipt
against Total Quantity per various Cash/Credit Invoices covered by that specific
Delivery Receipt).
1.5.3 Preparation of adjusting Journal Voucher to reclassify Un-deposited Accounts to
Cash on Hand – Showroom
1.5.4 Preparation of Bank Reconciliation and verify if all deposited amounts are
credited already in FMT’s depository bank account.
1.5.5 Preparation of adjusting Journal Voucher to record deposit to FMT depository
account per bank deposit copy submitted by Cashiering Department,
Showroom.
1.5.6 Print computer-generated Statement of Account per Individual Customer and
advise Field Salesman to follow-up overdue or long-overdue accounts.
1.5.7 Control customer’s account and print the Aging of Receivables for
management decision making on sales performance & efficient collection or
receivables.
1.5.8 Filing of documents in an orderly manner.
6. The Audit Department is responsible for the following:
1.6.1 Conduct surprise Cash Count at the Branch
1.6.2 Perform audit examination
1.6.3 Prepare audit findings and issue recommendation
1.6.4 Submission of audit report to the Owner/General Manager for his final decision
2. POLICIES & PROCEDURAL QUICKBOOKS SYSTEM FLOW – RELEASE OF ITEMS FROM WAREHOUSE
1. Warehouse Department – Branch No. 1
2.1.1 The department is open daily and release of goods in two (2) shifts that must be
strictly followed by the Field Salesman:
9:00 AM – 12:00 AM
4:00 PM – 07:00 PM
2.1.2 Receive Delivery Note from Field Salesman indicating the Code Number, Item
Name and Quantity.
2.1.3 Count the items/goods to match with the Delivery Note before releasing these
items from the Branch.
2.1.4 The Delivery Note must indicate the date of release and must be signed by both
the Field Salesman and personnel-in-charge at the warehouse.
2.1.5 File duplicate copy of Delivery Note
2. Cashiering Department – Branch No. 1 Showroom
2.2.1 The Sales Executive must record immediately in the QB system upon release of
goods.
2.2.2 Go to QuickBooks Home Page
2.2.3 Click Estimates and enter all the following details in accordance with the
Delivery Note prepared by the Field Salesman:
Customer Job
Template – Choose FMT Delivery Receipt
Date of Delivery
DR Number – Start DR16-0001
Enter the Item Name. QB system will automatically record the Item Code,
therefore, no need to record it. If changed by the processor, he will be
subjected to Audit examination and will be charged for the Violation of
Accounting Policy of Intentional Manipulation of Records that will lead to
incorrect accounting records.
Enter the Quantity. QB system will also automatically record the Sales Price, if
changed, he will also be subjected for audit examination and answerable for
the commission of errors whether be intentional or not.
Double-check if all details are entered, then Save and Close
2.2.4 Print the Delivery Receipt and attach the Original Delivery Note prepared by
Field Salesman. Then, submit the printed Delivery Receipt along with the Original
DN to the Finance Department, Head Office for checking and review purpose.
2.2.5 Retain duplicate copies of Delivery Note for filing and reference.
3. POLICIES & PROCEDURAL QUICKBOOKS SYSTEM FLOW – CREATE INVOICE AND RECEIVE
PAYMENTS FROM CUSTOMERS (FIELD SALES)
1. FIELD SALESMAN DEPARTMENT
3.1.1 Issue original manually prepared Cash/Credit Invoice to the customer upon
sale/delivery of goods to the customer.
3.1.2 Receive payment from customer and issue original Receipt Voucher.
3.1.3 Remit cash collections and submission of 2nd copy of Receipt Vouchers
attached the 2nd copies of Cash/Credit Invoices to the Cashiering Department,
Branch No. 1 Showroom.
2. CASHIERING DEPARTMENT – BRANCH NO. 1 SHOWROOM
3.2.1 Receive & count money and tally with the total collections per individual
Receipt Vouchers (2nd Copy) with attached 2nd copy of Cash/Credit Invoice and
deposit the money to the bank.
3.2.2 Deposit all collections and get Bank Deposit Copy and forward to Accounting
Department to record in the QB system through Journal Voucher preparation.
3.2.3 Maintain individual customer accounts in the QB system thru the following system
procedures:
3.2.3.1 Go to Home page and click Customer Icon, and then click Customer
Center (highlighted in color green).
3.2.3.3 Enter the following details:
3.2.3.3.1 ADDRESS INFO
Company Name
Full Name of Contact Person: Mr. First Name, MI. & Last Name
Main Phone
Work Phone
Mobile No.
FAX
Main E-mail
CC E-mail
Website
Address Details & Shipping Details
3.2.3.4 PAYMENT SETTINGS
Account No.
Payment Terms
Preferred Delivery Method
Preferred Payment Method
Credit Card Info – N/A
3.2.3.5 Additional Info
Customer Type – Retail
Rep – Choose Sales Representative
3.2.4 Go to Home Page and click Create Invoices Module in QB system in reference
to the manually prepared Cash/Credit Invoice per individual customer by the
Field Salesman
3.2.5 Fill out the following details in the boxes of FMT Cash/Credit Invoice through QB
system:
3.2.5.1 Customer Job Box – Select from the Customer Name List
3.2.5.2 Account Box - Trade & Receivable
3.2.5.3 Template Box – FMT Cash/Credit Invoice
3.2.5.4 Invoice No. Box – CI16-0001
3.2.5.5 Terms – Cash or Cash after Bill Date
3.2.5.6 Cash/Credit Inv Ref – Number of Manual Invoice from the Field
Salesman
3.2.5.7 Based from the Manual Invoice, enter all Item Names, Quantity and Unit
Price. The QB system will automatically give the Item Code, therefore,
no need to change it. Once changed by the Invoice processor, he will
be subjected to Audit Examination and liable for the changes he made.
3.2.5.8 Customer Message Box – Type the total amount in words
3.2.5.9 Save and Close.
3.2.6 Enter in the QB system, the cash collections either “Cash” basis or “Partial
Payment” basis thru the following procedures:
3.2.6.1 Go to Home Page and click “Receive Payments” Module
3.2.6.2 Under “Partial Payment” basis (for example, Customer A paid SAR 100),
fill-out the following details in the boxes of Customer Payment Module:
Received From Box – Name of the Customer
Payment Amount Box – SAR 100.00
Date Box – Date of Payment per Receipt Voucher issued by Field
Salesman
Reference Box – CP16-0001 (CP means Customer Payment)
A/R Account Box – Trade Receivable
Click Cash Box
Put “check mark” in the Invoice No. that the payment is being applied
for. The system will automatically apply the amount of SAR 100.00 to
the invoice. It will also show the Underpayment or the Remaining
Balance at the left side bottom portion of the Customer Payment.
Save and Close.
After applying the partial payment of SAR 100.00. Print the Cash/Credit
Invoice and it will show the Remaining Balance of SAR 296.20.
Attached only the Receipt Voucher from the Field Salesman because
Original Invoice is not issued since it is not fully paid. The following QB
System procedures for Printing the Invoice must be followed:
Go to Home Page and click Print Icon
3.2.6.3 Under “Cash or Full Payment” basis, the same procedures shall be
followed except for the amount of payment. The total amount of invoice
shall be filled-out as follows:
Payment Amount Box – SAR 396.20 (Total Amount of Invoice).
Put “check mark” in the Invoice No. that the payment is being applied
for. The system will automatically apply the amount of SAR 100.00 to
the invoice. It will now anymore show the Underpayment or the
Remaining Balance at the left side bottom portion of the Customer
Payment because it is fully paid.
Save and Close.
3.2.6.4 Go to Home Page and Look for the fully paid Invoice to be printed, Click
Print Icon
3.2.6.5 Click Preview and Print
3.2.6.6 Attach the 2nd copy of all Receipt Vouchers together with the 2nd copy
of Cash/Credit Invoice (manually prepared by the Field Salesman).
3.2.6.7 All collections from the Field Salesman must be deposited on the
following bank business day. If collection falls on Thursday, it must be
deposited on the following week, Sunday.
3.2.6.8 Get from bank the received copy of the deposit slip and temporarily
file at the showroom.
3.2.6.9 Computed-generated Cash/Credit Invoice must be signed by the
Cashiering Officer at the Showroom, Branch No. 1.
3.2.6.10 Submit all documents (computer-generated Cash/Credit Invoices,
Receipt Vouchers & all manually prepared Cash/Credit Invoices by the
Field Salesman) to the Accountant, Finance Department, Head Office
for checking purposes.
3.2.6.11 Submit also the copy of the Cash Deposit Slip to Accounting
Department.
3. ACCOUNTING, FINANCE DEPARTMENT – HEAD OFFICE
3.3.1 The Accountant must check the following details in all customer’s printed
Cash/Credit Invoices:
3.3.1.1 Name of the Customer
3.3.1.2 Item Name
3.3.1.3 Quantity
3.3.1.4 Selling Price against Standard Price List Hard Copy
3.3.1.5 Total Amount of the Invoice
3.3.2 The Accountant must tally the total quantity in the Delivery Receipt against total
quantity of all Cash/Credit Invoices. He must calculate the difference and
prepare adjusting Journal Voucher (if there’s difference between Total Quantity
per Delivery Receipt against Total Quantity per various Cash/Credit Invoices
covered by that specific Delivery Receipt).
3.3.3 The Accountant must prepare adjusting Journal Voucher in the QB system to
reclassify Un-deposited Accounts to Cash on Hand – Showroom by the following
system procedures:
3.3.3.1 Go to Home Page and click Reports
3.3.3.2 Click Company & Financial
3.3.3.3 Click Balance Sheet Standard
3.3.3.4 The screen will show the Balance Sheet as of given date and double-
click the amount of Un-Deposited Funds to be re-classify from Un-
deposited Funds to Cash on Hand – SR Sales.
3.3.3.5 After double-clicking the total amount (SAR 8,185.20) of Un-deposited
Funds, the QB system will display the details (Transactions by Account) of
the Un-deposited Funds as shown herein below:
3.3.3.6 The Accountant must print the report of Undeposited Funds to be
attached in the Journal Voucher.
3.3.3.7 In reference to the details (par. 3.3.3.5), the Accountant must prepare
adjusting Journal Voucher for the re-classification stated in par. 3.3.3.4 by
the following QB system procedures:
Go to Home Page
Click Company Icon
Click “Make General Journal Entries”
After clicking “Make General Journal Entries”, QB system screen will
display as follows by filling out all the details in the boxes of the
Journal Voucher:
Date box – The date of the last amount of Un-deposited Funds
Entry No. Box – JV16-0001
Account to be debited – Cash on Hand-SR Sales
Amount to be debited – SAR 8185.20
Account to be credited – Undeposited Funds
Amount to be credited – SAR 8185.20
Memo – Total Cash Collections from Field Salesman
Name – ABU FATIMA
Save and Close
Print the Journal Voucher through the following QB system
procedures
Go again to Home Page and click Make General Journal
Entries
Scroll up to find the JV-0001 to be printed
Click Print Icon, choose the printer and click Print
After clicking the Print, the QB System screen will display
the following:
Print the computer-generated Journal Voucher and
attached the Report on Undeposited Funds.
File the Journal Voucher according to the pre-numbering,
by date and month.
3.3.4 The Accountant must get the bank statement (FMT depository account) and
should prepare Bank Reconciliation by reconciling the Bank Ending Balance as
of Month-end against Ending Bank Balance per QB Report as shown in the
Balance.
3.3.5 The Accountant must verify if all deposited amounts (copy of Bank Deposit Slips)
are credited already in FMT’s depository bank account and should prepare
Journal Voucher to record the bank credits (cash deposits) through the following
QB system procedures:
3.3.5.1 Go to Home Page and click Company
3.3.5.2 Click Make General Journal Entries
3.3.5.3 After clicking “Make General Journal Entries”, the QB system screen will
display the following and the Accountant must perform the following
system procedures (For example, November 28, 2016 cash deposit):
Date box – The date of the last amount of Un-deposited Funds
Entry No. Box – 4
Account to be debited – Bank Account CA NO.XXXX
Amount to be debited – SAR1,650.00
Account to be debited – Bank Account CA NO.XXXX
Amount to be debited – SAR 1,863.00
Account to be credited – Cash on Hand – SR Sales
Amount to be credited – SAR 1,650.00
Account to be credited – Cash on Hand – SR Sales
Amount to be credited – SAR 1,863.00
Memo – Total Cash Collection & Deposits
Name – ABU FATIMA
Save and Close
File the Journal Voucher according to JV Number, Date and
Month.
3.3.5.4 To check if the journal voucher has been recorded, the Accountant must
perform the following QB system procedures:
Go to Home page and click “Reports” Icon
Click Company & Financial
Click Balance Sheet Standard
3.3.5.5 After clicking the Balance Sheet Standard, QB system screen will display
the Balance Sheet, and click the amount of the Cash in Bank Balance.
Then it will show the amounts deposited in the Bank.
3.3.6 To control the individual customer account, the Accountant must print
computer-generated Statement of Account (SOA) per Individual Customer
through the following QB system procedures:
3.3.6.1 Go to Home Page
3.3.6.2 Click Customers Icon
3.3.6.3 Click Create Estimates
3.3.6.4 After clicking Create Estimates, the Accountant must fill out all the boxes
in QB system the following details:
A/R Account – Trade Receivables
Statement Date – 12/25/2016
Statement Period From _____________ to ___________________
Select Customer – Customer A (For Example)
Create One Statement – Per Customer
Check box – Show invoice item details on statements
Click Preview
3.3.6.5 After clicking Preview, the Accountant must print/save as PDF and send
directly to customers thru e-mail to follow-up collections.
3.3.7 The Accountant must also advise Field Salesman to follow-up overdue or long-
overdue accounts to further increase his cash collections.
3.3.8 The Accountant must control customer’s account and print the Aging of
Receivables for management decision making as to sales performance of Field
Salesman and efficient collections by him. He must perform the following QB
System procedures to print computer-generated reports on Aging of
Receivables as follows (For Example Customer A has outstanding balance of SAR
296.20 as presented before in the STATEMENT OF ACCOUNT):
3.3.8.1 Go to Home page
3.3.8.2 Click Customer & Receivables
3.3.8.3 Click A/R Aging Summary
3.3.8.4 After clicking A/R Aging Summary, QB System screen will display the
Report as follows:
3.3.9 There are lots of good reports on KEY PERFORMACE INDICATORS (KPIs) that will
help the management in decision-making, control purposes and evaluation to
generate more income as follows:
3.3.9.1 Sales by Customer Summary – to determine which customer has large
sales and which products they are always buying. Determine the causes
why there are some customers not buying more products from us.
3.3.9.2 Sales by Item Summary – to determine which are the most saleable
products and ascertain Re-Order Point level for the prevention of stock
shortages and further continue delivering the goods at the proper time.
3.3.9.3 Sales Graph by line of product/department – to encourage the
department to have more sales revenue over targeted sales level.
3.3.9.4 Item Profitability – to determine which products have high Gross Profit
Rate and to ascertain the Re-Order Point Level for the prevention of
running out of stock of goods.
3.3.10 The Accountant must print and present accurate & reliable QB computer-
generated Income Statement showing the following:
3.3.10.1 Sales of Electronic Products
3.3.10.2 Sales of Electrical Products
3.3.10.3 Sales of Pharma Products & Others (NGHA & Others)
3.3.10.4 Cost of Sales
3.3.10.5 Gross Profit
3.3.10.6 Selling Expenses
3.3.10.7 Administrative Expense
3.3.10.8 Net Income (Loss) as of month-end/year-end
3.3.11 The Accountant must submit also to the Owner of FMT a fairly presented,
complete and reliable Balance Sheet with the following details:
3.3.11.1 Cash and cash equivalents
3.3.11.2 Trade Receivables & others
3.3.11.3 Inventories by Product Line
3.3.11.4 Fixed Assets
3.3.11.5 Trade Payables & others
3.3.11.6 Owner’s Equity
3.3.11.7 The Account must be the custodian of all documents’ hard copies and filing in an
orderly manner.
4. POLICIES & PROCEDURES ON TRANSFER OF GOODS FROM WAREHOUSE TO SHOWROOM
1. FIELD SALES DEPARTMENT
4.1.1 Delivery Note must be prepared by the Field Salesman for all the goods
transferred from warehouse to showroom showing the item code number, item
name and total quantity
4.1.2 The Delivery Note must bear the date of transfer and sign by both the Field
Salesman and the authorized personnel at the Showroom
2. SHOWROOM, BRANCH NO. 1
4.2.1 The personnel in charge must receive the goods together with the original
Delivery Note
4.2.2 Count the goods properly and acknowledge them. Give the original Delivery
Note to the Inventory Officer in charge for the Adjustment of Quantity
3. INVENTORY OFFICER – The Inventory Officer is responsible for the following:
4.3.1 Receive the original Delivery Note regarding the goods transferred from
warehouse to showroom
4.3.2 Through the QB system, record the transfer of goods through quantity
adjustment – reduce quantity in warehouse and add quantity in showroom
through the following:
4.3.2.1 Go to Home Page
4.3.2.2 Click Vendor Icon (highlighted in green color)
4.3.2.3 Click Inventory Activities
4.3.2.4 Click Adjust Quantity/Value on Hand
4.3.2.5 At its proper warehouse item code number, decrease the warehouse
goods (Electrical Supply Inventory) at its new quantity on hand by
encoding the following:
4.3.2.5.1 Date
4.3.2.5.2 Adjustment Account – Electrical Supply Inventory
4.3.2.5.3 New Quantity on Hand = Old Quantity minus the Quantity
released
4.3.2.5.4 Print screen and print the quantity adjustment and attach the
Delivery Note to prove adjustment has been made and submit
to the Auditing Department.
4.3.2.6 Increase showroom goods (Electronic Products Inventory) into its
corresponding code number. Encode the following in QB system
4.3.2.6.1 Date
4.3.2.6.2 Adjustment Account – Electronic Products Inventory
4.3.2.6.3 New Quantity on Hand = Old Quantity minus the Quantity
released
4.3.2.6.4 Print screen and print the quantity adjustment and attach the
Delivery Note to prove adjustment has been made and submit
to the Auditing Department.