SUMMER TRAINING REPORT

HEINZ INDIA PRIVATE LIMITED

PLANT ACCOUNTING IN HEINZ INDIA PVT.LTD.

UNDER SUPERVISION OF :-

UNDER GUIDENCE OF:-

SUBMITTED BY: RAVENDRA YADAV

2011MBA230

INDEX
CONTENTS
A. PREFACE B. ACKNOWLEDGEMENT C. INTRODUCTION HEINZ HEINZ IN INDIA HEINZ VISION HEINZ VALUES STRUCTURAL ENVIROMENT 6 7 8 9 10-14 15 16 17 18 19 20 21 22-23 24 25 26-27 28-30

PAGE NO.
4 5

D. PLANT FINANCE EFFICIENCY E. PLANT ACCOUNTING F. OBJECTS OF PLANT ACCOUNTING G. ACCOUNTING PROCESS AT A GLANCE H. USERS OF PLANT ACCOUNTING INFORMATION I. FUNCTIONS OF PLANT ACCOUNTING J. FLOW CHART K. PLANING DPARTMENT L. PREPARATION OF INDENT PR, PO M. FLOW CHART OF INDENT PR, PO N. PURCHASE PURCHASE ORDER TERMS AND CONDITIONS FOR PURCHASE ORDER ROLE OF FSU 31

CONTENT
P. QUALITY ASSURANCE DEPARTMENT QUALITY ASSSURANCE DEPARTMET ROLE OF Q/A DEPARTMENT

PAGE NO.

32 33

Q. FACTORY STORES PROCESS OF WORKING IN FACTORY STORES OF HEINZ PROBLEMS IN FACTORY STORES & SUGGESTIONS 37 38-39 40 41 42 43-44 45 46-47 48 49-50 51 52-55 56-57 58 59 60 R. SYSTEM ANALYSIS AND PROCESS S. ENTRY PATTERN OF A/CS IN COMPANY T. STEPS FOR SERVICE PROCUREMENT U. PAYMENTS PAYMENT SYSTEM PAYMENT PROCEDURE IN HEINZ SERVICE BILL ADVANCE PAYMENT CONSEQUENCES OF DELAY IN PAYMENT POINTS RELATED WITH PAYMET SYSTEM DEPARTMENT RELATED WITH PAYMENT SYSTEM MODE OF PAYMENT REPORT FOR CONTROL REASONS FOR DELAY IN PAYMENT RECOMMENDATIONS CONCLUSION 34-36

V. SAPMLES OF 3

INVOICE YELLOW SLIP WHITE SLIP

61 62 62 63

W. BIBLIOGRAPHY

PREFACE
For the compulsory training required for my course M.B.A, I have selected HEINZ INDIA PRIVATE LIMITED, MANZURGARHI, ALIGARH. Heinz India Limited is one of the American paradigms. H. J. Heinz Company is a well known player in FMCG category. It stands second in the world among food product companies next to nestle. It is certified by ISO 9000. During my training I have been associated with different areas of finance & accounts division of HEINZ INDIA PRIVATE LIMITED & learned about how to bridge gap between theoretical knowledge & practical working . Mainly, I have experienced the automated accounting process and other efficient payment procedure. I have explored many other areas of finance & accounts division. I would like to extend my sincere thanks to the factory authority for allowing me for this training , section Head of finance & Accounts division --------------------- Finance Officer & ----------------------- for sparing there valuable time for this purpose.

ACKNOWLEDGEMENT
No task is a single man effort various factors, situations and persons integrate to provide the background for accomplishment of task. Several people with whom I have interacted have contributed significantly to the successful completion of my summer project, who gave me their precious time, without which this summer project wouldnt have been success. This project report is the culmination of the Six weeks project work undertaken by me at HEINZ INDIA PRIVATE LIMITED. MANZOORGARHI ALIGARH. I am heartly grateful to -----------------------------------------(Charted Accountant) for giving me the opportunity of working at HEINZ INDIA PRIVATE LIMITED. And for enlightening me about the subject of the project as well as for his continuous encouragement. I am very grateful to ---------------------------------------- (Assisstent in Finance) for his support, assistance and valuable suggestions throughout this project and report preparation. His moral support and continuous guidance has enabled me to carry out my work effectively. Finally, I am thankful to -------------------------------------- (Senior Assistant in H.R) and ---------------------------- (Assistant in H.R.) who willingly responded to my innumerable questions and whose contribution is invaluable. This project would not have been completed effectively without their participation.

HEINZ AT A GLANCE
The H.J.Heinz Company is one of the worlds leading marketers and producers of nutritious foods in three categories : Ketchup and Sauces; Meals and Snacks; Infant/Nutrition.

Heinz provides superior quality, taste and nutrition to people eating at home, at restaurents, at the office and on-the-go. The company has a world-class portfolio of powerful brands, with 150 brands holding number-one and number-two positions across five continents and more than 50 countries, showcased by Heinz Ketchup, The worlds Favourite Ketchup. Heinz is most international U.S.-based food company, with more than $10 billion in global sales as of Fiscal 2009, and a market capitalization of approximately $15 billion. The company has more than 30,000 employees worldwide and 11,000 employees in the U.S. Under the leadership of chairman, President and CEO William R.Johnson, the company continues to deliver on its tradition as the Pure Food Company.

TOP 15 BRANDS

HEINZ
A World of Good Food
The H.J. Heinz Company, headquartered in Pittsburgh, Pennsylvania, is the most global of all U.S.-based food companies. Famous for our iconic brands on five continents, Heinz provides delicious, nutritious and convenient foods for families in 200 countries around the world. In more than 50 of those countries, we enjoy the number-one or number-two market position. Key Heinz markets are segmented as North American Consumer Products, U.S. Foodservice, Europe, Asia Pacific and Rest of World. Our commitment to providing a variety of wholesome foods, with an unwavering emphasis on health and wellness, makes Heinz like no other company on earth.

The First Name in Ketchup

Throughout the world, Heinz is synonymous with ketchup. We sell 650 million bottles of Heinz ketchup every year and approximately two single-serve packets of ketchup for every man, woman and child on the planet. For millions of families the world over, if it isnt Heinz, it isnt ketchup.

The Good Food Company

Beyond ketchup, Heinz also markets an ever-expanding selection of other great tasting foods. Our core products include ketchup, sauces, meals, snacks, and infant/nutrition. Among them are our 15 Power Brands, which comprise approximately 70% of our global sales. In short, Heinz is committed to enriching your familys eating experience, whether youre at home, dining out, or on the go!

Satisfying Tastes and Appetites Around the World

At any given moment, on any given continent, the 32,500 employees of Heinz are hard at work...creating new products, perfecting fresh ideas, and developing nutritious and innovative foods for today's families. Heinz is a trusted name for consumers, a valued partner in the community, and a great investment with tremendous growth potential.

INRODUCTION OF HEINZ INDIA

Heinz came to India in 1994 by taking over the Family Products Division of Glaxo with powerful brands such as Complan, Glucon-D, Nycil and Sampriti. Heinz India is fully integrated into the global Heinz operations employing high standards in quality at its state-of-the-art manufacturing facility at Aligarh in the State of Uttar Pradesh. This manufacturing facility is HACCP certified and follows GFMP (Good Food Manufacturing Practices) to deliver nutritious and safe food products to our discerning consumers. Heinz in India provides taste and nutrition through globally trusted products like Heinz Tomato Ketchup and strong local products like Complan - with extra growing power, Glucon-D - the refreshing energy drink, Nycil - the most effective prickly heat powder and Sampriti Ghee - Mahek bhara swaad. 8

Heinz products synergize the three pillars of the Heinz tradition namely TRUST, TASTE & NUTRITION. Today, iconic brands like Complan & Heinz and category leaders like Glucon D & Nycil are being nurtured with a combination of formulation and flavour upgradation, packaging innovations and new positioning strategies with strong equity quotients.

HEINZ VISION
The words Premier Food Company Offering Nutrition, Superior Tasting Food, to people everywhere. Delivering high quality products. Adhering to standards. Be a company with a strong and motivated workforce. Satisfying customers needs. To become renounced in commercial as well as social.

Premier Values
Passion Risk tolerance Excellence Motivation 9

Innovation Empowerment Respect

Chairmans Four Imperative

Drive Profitable Growth Remove the clutter Squeeze the cost Measure & Recognize Performance.

Heinz Worldwide: A Pure Food Company

HEINZ VALUES

Team Building & Collaboration - We embrace great ideas from everywhere

and everyone and respect all individuals.

Innovation - We spot consumer and customer needs and meet them with simple,
creative solutions.

Vision - We define a compelling, sustainable future and create the path to achieve it. Results - We deliver on commitments, take accountability and balance the short- and
long-term.

Integrity - We always tell the truth, act with the highest ethical standards and ensure
that our products are of the highest quality.

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Heinz India Private Limited

Mission Statement
"As the trusted leader in nutrition and wellness, Heinz the original Pure Food Company is dedicated to the sustainable health of people, the planet and our Company."

HEINZ INDIA BRANDS

HEINZ KETCHUP

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COMPLAN

GLUCON-D

NYCIL

STRUCTURAL ENVIORNMENT
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Total area covered by the building of department is appro. 500sq. m and the entire area is divided into small wooden partition. Every separated area is allotted to every single employ. There are many tube lights, fans, moveable chairs, 24hrs chilled and pure water supply. The capacity of water cooler is 60ltr/hr. There are eleven departments in the campus. They are as follows:1. Production Department 2. Quality Assurance Department 3. Retail Packing Unit 4. H.R.(Personal) Department 5. Purchase Department 6. Distribution & Planning Department 7. Factory Service Unit(FSU) 8. Engineering Department 9. Finance department 10. Milk Procurement Department 11. Safety Department

FINANCE DEPARTMENT: - It is concerned with the accounts and budgets preparation,

its functions are: 13

Fund management and budgetary control. Purchase and expenses accounts control. Statutory and audit compliance. Wages administration. Variance analysis and information technology. Revenue budgeting and sending it to the main corporate office. Estimation of taxes sales tax, service tax, income tax, excise duty, Mandi-Samiti tax.

PRODUCTION DEPARTMENT: -This department is concerned with production of

FMCG goods. Their functions are: I: Processing area: To conduct the dairy activities effectively To dry up the skimmed milk for the preparation of COMPLAN.

II: R .P .U: This unit is set up for the purpose of packaging the products.

PERSONNEL DEPARTMENT: - This department is concerned with managing people

and matters therewith. Their functions are: Selection and Recruitment of employees. Maintaining the personal record. Training, promotion, and job rotation. Maintaining the record of temporary casual, contract, and apprentice workmen.

Welfare activities:
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CANTEEN: Canteen is providing food on highly subsidies rate. Company almost Bear a loss of Rs. Lakhs per annum. It has different timing for lunch of management staff and workers and is situated in one building only. Company`s own staff only runs canteen. Activities are also coordinated by members of canteen .It caters approx 500 person daily. REST ROOMS: -There are 4 rest rooms to facilitate the workers in the evening and nightshift both. SPORTS CLUB: - In this committee there are 14 members. The committee coordinates the activities of sports club members like annual sports, games, picnic tours, annual function of cultural programmes. G.M operation is the president of the sports club.

ENGINEERING DEPARTMENT: - Its main function are as follows: To provide support to operation and maintenance of various equipment used in production process. To provide effluent treatment and pollution control.

QUALITY ASSURANCE DEPARMENT: - As the name indicates quality is just not an

accident , it is a collective work of intelligent people with a team of well trained and experienced people in quality assurance department.

HEINZ INDIA PRIVATE LIMITED is committed to: Procurement , Development , production and Marketing of safe clean wholesome foods of high quality , keeping focus on needs of customer by establishing and maintaining proper facilities necessary for controlled production consistency in a sanitary manner , so as to ensure that customers confidence is generated and maintained consistency. Establishing and Maintaining appropriate operating and monitoring procedure necessary for controlled production and every person is responsible for product integrity and safe guarding quality environment competent to carry out his responsibilities. 15

Achieving high safety, occupation health and environment standards establishing internal review procedures to ensure compliance of applicable laws and regulation. Its main functions are: -

Maintenance of quality assurance department and lab equipments. To conduct quality test of raw material and Packaging materials.

MILK PROCURMENT UNIT: - Its main functions are

Collection of milk from the various collecting centers. To conduct milk purity test. To provide storage and refrigeration to the milk. Safe transportation of milk collecting centers to the company .

PURCHASE DEPARTMENT: -Its main functions are

Material procurement. Asking for quotation and their evolution.

STORAGE DEPARTMENT: - This department is concern about management of

inventory and control. Its main functions are Ensure storage of material under hygienic condition and meet good food manufacturing practice standards. Ensure compliance of ISO norms. Ensure safe unloading of stocks and no discrepancy with ledger balance.

SAFETY DEPARTMENT: -For the purpose of providing safety and security to the
company from various contingencies. It has been divided into several zones.

16

Every department in the company has been equipped with fire extinguishers and first aid boxes. At the time of any contingency, the security officers appointed for different zoned & perform their responsibilities. Their main functions are Safety of employee and company` s property. Companies own staff is engaged for security. Controlling and guarding the movement of guards at the gate. Security alert around the factory / boundary wall area. Its aim to make safety and health working condition to the employees in the organization. The working condition of the organization is obeying the FACTORY ACT1948. The company is also obeying the rule of U.P state FACTORY ACT1950. Watch the working condition like water facility, food facility etc.

PLANT FINANCE EFFICIENCY

17

Budgeting

Planning

Schedule Production/ Procurement (purchase) Request for Quotations Quotations P.O(Purchase order ) Materials
Factory Stores

PLANT ACCOUNTING G.R.N(Goods Receipts Note)

Quality Assurance Department Plant Finance

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PLANT ACOUNTING
Plant Accounting comprises two words that is PLANT and ACCOUNTING. Firstly, PLAN have so many meanings but here, PLANT mean a unit that is established in ALIGARH for manufacturing purpose. According to American Institute of Certified Public Accountants ( AICPA),:-Accounting is the art of recording , classifying and summarizing in a significant manner and in terms of money, transactions and events which are of a financial character and interpreting the results thereof. In simple Accounting is Book-keeping. Book-keeping is art as well as science of recording business transactions of an individual, firm, company, corporation, and other association of persons and institutions in a certain prescribed rules and regulations on the basis of some definite system for fulfillment of certain objects. In simple, PLANT ACCOUNTING is recording of information in monetary terms, in a manufacturing unit that is established in ALIGARH.

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OBJECTS OF PLANT ACCOUNTING

1-Main objects are: To know profit or loss of Business for a certain period. To know the assets and liabilities of the Business at a particular date. To know about the progress or downfall of Business. To know as to what amount is to be paid to a particular person or what amount is to be received from a certain person on a particular date. To the case of the companies to comply the provisions of the Companies Act, 1956 as under this Act it is compulsory for the companies to maintain accounting record.

2-Other objects: To know about the position of goods. To know the position of cash. To know about the errors and frauds of employee. To have detailed information about capital employed in the business. To satisfy the taxation authorities. To know the requirements of business at a particular time. To make estimates for future.

5.Analysis & Interpretation

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ACCOUNTING PROCESS AT A GLANCE

Transactions 1. Journal or its Subsidiary Books

Purchase Book

Sales Book

Purchase Return Book

Sale Return Book

Bills Receivable book

Bills Payable Book

Cash Book

Journal book

2. Classification (Ledger) 3. Trial Balance 4. Final Accounts

Manufacturing Account

Trading Account Profit & Loss Account Balance sheet

5. Analysis & Interpretation

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USERS OF PLANT ACCOUNTING INFORMATION

Following chart indicates various types of users of Plant Accounting Information that utilize information in best manner:-

USERS OF PLANT ACCOUNTING INFORMATION

Internal users

External users

Proprietor Management Employees

Investors

Creditors

Government

Consumers

Foreigners

Research Scholars

Other Persons

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FUNCTIONS OF PLANT ACCOUNTING

Following functions are given below: To Record Business Transactions To Indicate Earning Capacity And Financial Position To Satisfy Govt. Officers To Comply Legal Requirements To Assist Management To Protect Assets To Depict True And Fair Position

PLANT ACCOUNTING is a Book keeping, i.e. Record of a Unit which is established in Aligarh and It is Heinz Pvt. Ltd. It is FMCG Company and the owner of this company is H.J.Heinz.

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FLOW CHART
Planning

Purchase Department

Request for Quotation

Purchase order

Quotation Screening

Material Received

Quotation Finalization

Checking by FSU

Factory Store

GRN in SAP by 103 movement

GAN by Quality Assurance Department

Material Passed / Approved Issue to Production

Invoice Finance Department Bill Process and Others Payment to Vendor

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PLANNING DEPARTMENT
Planning & Control has become the primary function of management these days. Most of the planning relate to individual proposals According to this production required raw materials purchase with this following procedure: Make a list for required raw material with the help of indent. Check with shortage department. Planning is a main department of any organization. Planning is decided the future needs and demand. According to future plan, needs and demand company purchase raw material, estimate required fund, make budget. Make target according demand of product in market the manager select the target. After that they make a budget. 1. Sales Budget: - The budget of forecast total sales in terms of quantity, values, items, periods, areas etc. 2. Production Budget: - The budget is based on sales budget. It forecast quantity of production in terms of item, periods, areas etc. 3. Purchase be purchased. 4. Capital Expenditure Budget: - The budget provides a guidance regarding the amount of capital that may required for procurement of capital assets during the budget period.

Budget: - The budget forecasts

the quantity & value of purchase required for

production. It gives quantity-wise, money-wise & period-wise information about the materials to

25

5. Cash Budget: - The budget is a forecast of cash position by time period for a specific duration of time. It states the estimation amount of cash payment receipt and the estimation of cash payment and the likely balance of cash in hand at the end of different period. According to step by step they make a budget and make whole things and procedure in advance .If any disturbances that create a problem. And make final purchase requisition.

Purchase Requisition: - It is a slip which contains required material list with other
specification ---1. 2. 3. 4. 5. 6. Purchase requisition should be clear Required product name Product quantity Product quality Time Terms & Conditions

And send it in purchase department

Problem in Planning and Control Department: If the estimated product is more than requirement than they create a problem. If any wrong details about payment procedure that create a delay in payment at a time. If the target is not accurate like demand is more and supply is less than thats create a problem and company going in loss. In all the condition if the company bearing loss. Than they are not fulfill all payments or time and property. No accurate/proper idea about inventory material in factory store. Less coordination with other department. If planning is not accurate about purchase of raw material, required time limit, forecasting etc.

26

PREPARATION OF INDENT, PR, PO

After planning in planning department purchase departments duties and responsibility arise means purchase department forecast the demand of FMCG product and they check that material is available in stores or not .If the requirement of goods is available in stores so they can received goods from factory stores. It the required material is not available in stores then they purchase department prepare indent Firstly we have to understand what is indent.

INDENT
It is a slip, which contains the required material with standard quality and quantity and time and make after singing of H.O.D of concern department it complete. Indent signed by H.O.D send to engineering on behalf of the indent slip.

PURCHASE REQUISITION
After issued the indent slip user send the indent in store and storehouse workers check the requirement of the user and issue the purchase requisition.

PROBLEMS IN PURCHASE DEPARTMENT: Standard may be incorrect and wrong. Writing problem. Misprinting. If H.O.D not present than delay in signing. Misplacing in sending to planning department

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FLOW IN INDENT, PR , PO

USER INDENT STORES PLANNING DEPARTME NT PURCHASE REQUSITION

PURCHASE DEPARTMENT REQUEST FOR

PROPOSAL

VENDOR 1

VENDOR 2

VENDOR 3

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PURCHASE ORDER
Purchase department raised a purchase order (P.O.) when they accept or get purchase requisition that they make a request for proposal

Request for proposal: - Request for proposal is a slip which contains information about
material quantity and required time for product. This is making for vendors quotation and this is a pre stage for making purchase order. This request for proposal sends to specific vendors. (3- 4Parties ). When the vendor receipts this request for proposal than they send quotation .

Quotation:-Quotation is a type or rate list of required material and make by the vendors
according to standards of required material.

Purchase department get quotation and then select it in following way Purchase department may be negotiating with vendors on the basis of quotations. Then purchase department make a purchase order. It is a Document which is made by purchase department and sends to selected vendor or vendors. It contains * Purchase order no * Vendors full name and address * Delivery address * Delivery time * Terms and conditions 29

* Standards * Product quantity

* Product quality * Specified time * Product rate * Tax code/ rate * Made of payment * Payment credit period * Payment place * Transportation name and address * And many other information All the fields are properly checked by purchase department and send to vendors by post. Purchase department make its entry in S.A.P. system of Heinz India Private Limited.

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TERMS AND CONDITIONS FOR PURCHASE ORDER

1. QUANTITY:
The supplier will be responsible for any shortage / pilferage / leakage at any point / time prior to receipt of goods by the buyer. The supply quantities shall be strictly within the tolerance allowed and any quantity beyond this limit will not be accepted, without approval from Purchase Department. For Raw and Packing Materials, tolerance is 5%. For other materials tolerance is 2%. 2. Prior approvals has to be taken in case of developmental works before commercial supply such as in Printing Plates making, Printing Cylinder Development, Die & mould making, etc#

3. QUALITY, INSPECTION & REJECTION:

The goods shall be in accordance with the sample and/or satisfy our specifications fully. All goods delivered are subject to our inspection and approval before acceptance, and all goods rejected for inferior quality and/or failure to satisfy our specifications / samples / drawings will be returned at the supplier's expense. The supplier will have to make its own arrangements to remove the rejected materials at its own expense either from the buyer's factory or from any other place of storage. Till they are not removed, the rejected materials will lie entirely at supplier's risk and responsibility. Replacement of such defective goods shall be dispatched with in 48 hours from the receipt of information of rejection. Materials received after the physical verification will be further subjected to Quality Inspection and the rejects on this account along with that rejected online while on packing will be intimated to the vendor for replacement or cost debited to the vendors account depending on the quantity of rejection. 31

4. PACKING:
i. Goods must be securely packed to withstand all hazards up to the destination. ii. The net weight/length/numbers and batch number/item name should be marked clearly and conspicuously on each container / package iii. In case of Ex-Godown / F.O.B deliveries the vendor will be responsible for transit worthy packaging of goods to eliminate any chance of pilferages

5. DELIVERY:
In the event of delivery not being effected by due date mentioned in this order, the buyer shall have the rights to impose a penalty & 0.5% per week on the total value of the ordered items. The buyer also reserves the right to make alternate sourcing and the cost differential, if any, along with the additional transportation costs will be debited to the vendor's account. Buyer has the right to refuse acceptance of the material in case of delayed delivery. If the consignment cannot be delivered within the delivery date mentioned in this order, the vendor can inform the buyer in writing 15 days in advance of the scheduled delivery date quoting reasons for such delays. If the reasons are found to be acceptable, extension of delivery time will be granted, otherwise we will make alternate sourcing arrangement.

6. DOCUMENTATION: Along with the consignment to the destination:a) Duplicate copy of the Excise Commercial Invoice / Gate pass cum Invoice depending on applicability of Excise Duty (Original invoice must be sent to person raising purchase order) b) Original copy of Challan mentioning the item, quantity, rate and Purchase Order no. c) Certificate of Analysis is a must along with the consignment for the applicable material without which, the consignment is liable for rejection. 32

d) RR/AWB.LR in case of Domestic vendors clearly mentioning the consignee / destination and the company name. e) Duplicate copy of the Road permit / Waybill duly endorsed by the sales tax authorities at the check post, where ever road permits / waybills are applicable f) The equipments and spares are to be guaranteed / waranteed for the maximum period from the date or receipt and shall be replaced along with replacement cost in case of premature failure within the warrantee/guarantee period.

7. SECURITY:
All designs / drawings / patterns / artworks etc provided by the buyer will remain sole property of the buyer and shall be maintained securely by the vendor and shall not be used for any other purpose than authorized by the buyer. These are to be returned to the vendor immediately on completion of the work without tampering.

8. STATUTORY & LEGALITY:

Whenever the prices charged by you includes excise duties whether or not shown separately in the invoice you shall furnish a Gate Pass clearance invoice in support of such payment of any other permitted document in accordance with the excise law to enable us to claim set off of such amount under the Modvat CENVAT scheme wherever available or failure to furnish such document will entitle us to deduct the appropriate excise duty amount from your payment. In the event of your subsequently - obtaining a refund of the whole or any part of such taxes, duties etc. concerned tax authorities for any reason whatsoever, you shall be liable to forthwith refund to us such amount of refund without our having to make any claim on you in this behalf. The materials to be supplied under this purchase order shall comply with all the local legislation and regulations.

9. JURISDICTION:
Any dispute arising out of this contract shall be subject to the Jurisdiction of courts having jurisdiction over the area where the buyer's registered office is situated.

10. PENDING ORDERS:

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Delivery challans/ invoices should be raised as per pending orders. Separate challans / invoices should be prepared for separate pending orders.

ROLE OF FSU
F.S.U (Factory Service Units):ALL MATERIALS

Factory

EXAMINATION

FACTORY SERVICE UNIT (FSU)

NON INFESTED

INFESTED

CHAMBER

INSIDE FACTORY

NON INFESTED

Heinz has a wide range of products, which are mainly the food products. The Co. has F.S.U., which mainly looks after the hygiene delivery of goods INTO the factory is located. Its functions are as follows: Cleaning the production units, machines, Godown and Other places in the factory. Pests control and infestation control. To provide fumigation to the raw material and packed Products. Maintaining temperature for different goods. Maintaining account for incoming and outgoing materials. 34

 Examination of every material Truck or Vehicles carrying material is conducted by FSU according standard parameters to curb infestation. chamber is a place where infested material is made disinfested.

QUALITY ASSURANCE DEPARTMENT: It is a quality assurance department that checks specified quality of product. If the product is up to mark with required quality than that check and give the code is
-105.

And if reject than given code is 124 and product is returned back to vendor. Goods are accepted after only checking the of quality department. Any rejection in quality assured product is going on vendor and given code is 122.

Material

Factory receive note 103 Goods Received Acceptance Note 105 Finance

35

 Check invoice for quality department and factory receive note.

ROLE OF QUALITY ASSURANCE DEPARTMENT

When the material enter in the company firstly cleaned in FSU and then match the sample with bulk quantity by the Q/A department, if the bulk quantity is according to specimen and the term and condition, then the quality assurance department will prepare GAN . After that information record is in Factory stores. HEINZ INDIA PRIVATE LIMITED is committed to: Procurement , Development , production and Marketing of safe clean wholesome foods of high quality , keeping focus on needs of customer by establishing and maintaining proper facilities necessary for controlled production consistency in a sanitary manner , so as to ensure that customers confidence is generated and maintained consistency.

Establishing and Maintaining appropriate operating and monitoring procedure necessary for controlled production and every person is responsible for product integrity and safe guarding quality environment competent to carry out his responsibilities.

Achieving high safety, occupation health and environment standards establishing internal review procedures to ensure compliance of applicable laws and regulation. Its main functions are: -

Maintenance of quality assurance department and lab equipments. 36

To conduct quality test of raw material and Packaging materials.

PROCESS OF WORKING IN FACTORY STORE OF HEINZ INDIA PRIVATE LIMITED

Firstly Factory Store receives the material from the Gali house and match the material from Purchase order. PCI (Pest Control India) check the material to find out the consignment, is infested or not an issue White /Red /Green slips. Material is fumigated in quartine chamber , if infested : -

WHITE SLIP- It shows the clearance of material from PCI.

GREEN SLIP: infestation.

This slip is given when material is returned to the supplier due to

Now material reach to the factory store & factory store check all the document As : Excise Invoice. Form 38/ Form C & any Laves Form. Goods Carrier Note In Factory Stores material is unloaded in designated place /Godown : 37

According to the nature of the material. According to the quality of the material.

Factory Store checks the material `s quality at the time of receiving of Goods. If

material`s quality is according to the purchase order and everything is ok , Factory stores make GRN ( Goods Received Note ) and make the entry in SAP software and give a code to this entry in 103 movement. Factory store make 3 copies of GRN : For Purchase department. For Self. For supplier.

Factory stores make the GRN for : Raw Material & Packaging material. General Consummerable goods.

In case of General Consummerable Goods, Quality Assurance Department does not

check the goods i.e.; it is directly sent to the supplier. In case of Raw & Packaging material , after checking & receiving the material by If the material is according to our standard, they make GAN (Goods

Factory stores , Quality Assurance Department check the quality of the material : 105. If the quality of material is not according to our standard ,quality Assurance Department having a right to reject this and make the entry of rejection in SAP & give a code to this entry in124 movement. In case of rejection, the amount of rejected material is adjusted in other Acceptance Note) and make the entry of this in SAP and give a code to this entry in

consignment or makes Credit Note for supplier.

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CREDIT NOTE: - It is note which is made for supplier to return the amount and in case of
excess of material. In this condition supplier is Creditor of the company. Any damage / Shortage is recorded in consignment, note is written on delivery

challen of the supplier and company is obtained a damage / shortage certificate from the transports / driver of the truck. In case of damage / Shortage, company`s planning & stock control Department is

informed for the insurance survey before making GRN. Material in excess of the capacity is returned to the supplier / has to be seggrated

for fault are diverted to the city / Godown. If the material is returned to the supplier , company make the Material return report For supplier. For Account Dep. For Factory Stores. For Purchase Dep.

and make 4 copies of this: HEINZ INDIA PRIVATE LIMITED use FIFO (first in first out) method of pricing of material i.e.; which material is come first in stores, is issued first. When it is not finished, other purchased material cannot issue. HEINZ INDIA` s store Dep. does all the transaction in MIGO.

If the material and other inventories send to other heads / dep. from factory stores , Foreman of dep. make the Material Requisition Slip and send to the factory stores.

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PROBLEM IN FACTORY STORES

Material comes according to lot size. Order quantities do not match with purchase order. Tax code problem. Vendor name is misprint and unclear. Expenditure control procedure. Connectivity Problem. Data is not entering at the time of receiving of material. Misprinting problem. Typing Problem.

SUGGESTION FOR FACTORY STORES

Material purchase after making Purchase order. Factory manager having limit but increase its limit size. Make entry at the time of receiving. Improve the system efficiency of this system. 40

SYSTEM ANALYSIS AND PROCESS (SAP)

Heinz India Private Limited is a full computerized company. The company used very advance. Application software, name S.A.P. (System, analysis and process). The using S.A.P. Company makes accountability and responsibility and employees do their work very quickly. All the clerical work done through S.A.P. S.A.P. was developed I 2000 in Heinz India Private Limited, Aligarh. The company used its 40B version. It is based on standard costing. Its monitored and controlled by head quarter in Mumbai. Advantage of S.A.P. 1. 2. 3. 4. 5. 6. Warning system. Online. Fast service. Easy track of all locations Losing paper work. Easily handle. 41

7. 8. 9.

Visibility. Full data available. Nothing is deleting only edit.

SAP as Recording Tool in the Company

System Analysis and Process (SAP) is ERP software package, while Heinz India Private Limited is full-computerized company and it use SAP as recoding tool for all the information and data with specified SAP number. SAP was developed in 2000 in Heinz India Private Limited, Aligarh. The Company used its 40B version. It is monitored and controlled by head quarter in Mumbai.

Example of SAP Entry:

Material Eng. Stores Q... verification User Department Finance Department Goods Receivable Note (GRN) Goods Acceptance Note (GAN) Rejected Goods/Material SAP Entry 103 105 124

103: Material supplies by vendor to company is check for the quantity at the time of receiving of
goods by stores department and makes goods receivable note (GRN) and make an entry in SAP system of the received material / assets and it provided a code in SAP as 103. 42

105: After receiving the material it provided to Q.A. department to check the quality of received
goods according to the standard of the company and then makes a goods acceptance note (GAN) and makes an entry in SAP with code 105 and Rejected goods which has not standard quality has coded in SAP with 124. The Excise Credit also provided to the goods/material in SAP with 105 at the time of making GRN.

ENTRY PATTERN OF ACCOUNTS IN THE COMPANY

All the entries of accounts of the company are processed through MIRO. MIRO is a transaction by which all the entries are to be made in the SAP.

Transaction Pattern in MIRO is as follows:

User/Engineering Department WIP (work in progress) GR/IR Basic Excise Duty Aligarh Cenvat Clearing Finance Department GR/IR Aligarh Cenvat Clearing Vendor

Dr. Cr. Dr. Cr.

Dr. Dr. Cr.

Final Stage (Ready to Use) Cr. WIP Dr. Assets (e.g. Turbine) Note:-In SAP System the entry pattern of accounting is done with the symbol of Negative ( and ) positive (+) for credit and debit respectively; it defined as follows:Credit (Cr.) ( ) 43

Debit (Dr.)

(+)

S tep s in th e P rocurem ent o f E xtern al S ervices

D e term ination ofre quire m e nts Kar l E instein
D ate

U ser depa rtm e nt P M P lant M aintena nce P S P roje ct S ys te m S M S ervice M anage m ent
R FQ

B an k tran sfe r 9,50 0

P a ym ent
Pu r. or der In voice

C re ation of se rvice specifications S ou rce determ ination V e ndor selec tion B id invitation process (iss ue o R FQ s f ) E nter/com pare quotation s

? =

Invoice verifica tion S ervic e acceptance E ntry of services pe rform ed P urchas e orde r m onitoring

P urc hase order

SA P AG 1999

44

PAYMENT SYSTEM OR PROCEDURE

CONCERN DEPARTMENT

PLANNING AND CONTROL DEPARTMENT PURCHASING REQUISITION PURCHASING DEPARTMENT REQUEST FOR PROPOSAL VENDORS VENDOR MATERIA L FACTORY STORE Q/A DEPARTMENT 103 105 QUOTATION S PURCHAS E ORDER

INVOICE FINANCE DEPARTMEN T BANK PAYMEN T

CASH

CHEQU eEE B.O.E RTGS/N EFT

RTGS
45

PAYMENT PROCEDURE IN HEINZ INDIA PVT. LTD

Firstly the direct user of product, machine part etc.Makes an indent slips for requirement of product with full description of quality, quantity and standards. After that this indent goes to H.O.D. of the same concern department and after accepting and signing by H.O.D. this slip goes to planning department. Planning department check the material in store and estimate the future requirement of product. Make a purchase requisitation in which whole description of required product is present with stander quantity and specifically mention time limit. Purchase requisitation goes to send purchase department. Purchase department make a request for proposal and send to all different and specific vendor for quotation. According to company demand of product, the vendor sends the quotation in quotation clearly mention the rates of every product with standard are present they also include tax rate and transportation rates of product. Purchase manager select any quotation, which is suitable as rate and standard by comparing in all quotation. He/she may be negotiating on this rate list with vendors. If margin of rates is hedge in vendors quotation than purchase manager ask to vendor for this difference. What is the difference in product with other? And after whole comparison he/she selects the quotation. He/she may be select 2 or 3 quotation with small quantity and part purchase of product and finally make a purchase order. Purchase order is a slip, which contains the whole description about quality, quantity, rate and time limit and also includes all taxes and extra charges of transportation. He/she send a chalaan list with purchase4 order to wards vendor. 46

Vendor supplies goods towards a delivery place. Firstly goods check the product quantity at a time of receiving or goods and make goods receivable notes (GRM) and make an entry in SAP system of the product and gave a code to this entry is 103. quality of product. If the product is according to our standards than they make a goods acceptance notes (CAN) and make this entry in Heinz India Private Limited SAP system and gave a code is 105. If the material is not up to mark of our standards than quality department having : After checking and receiving of material /goods by factory store, quality department check the

a right to reject and on acceptance of that goods and make a reject material entry in SAP system with the code of 124

Material

Factory Store

Goods receivable notes

103

Q. A. Department

Goods acceptance notes

105

Finance department
After that finance department manager/ person checks all entry, which is done by purchase department, factory store and quality assurance department with invoice. Finance manager check all details tax and code. If all are correct and right then they clear bill for payment with the help of different modes and ways basically all raw material purchase by bill of exchange and other payment is done by cheque. In Heinz India Private Limited, Aligarh used a new technique of payment is electronic fund transfer or retail time gross settlement.

47

SERVICE BILLS

Service expenses will include expenditure on freight , repair & maintenance, warehouse/ office rent, professional fees, co-packer charges, courier charges etc. Purchase of all services should be done from approved vendors and routed through the purchase department. A purchase order should be raised for services of value Rs.5000/- or more. Service Agreement/ Contracts whose total value exceeds Rs.10,00,000/- should be signed by the functional head and the Managing Director. Payment for services should be made by cheque only against original bill/ invoice / cash memo and supported by purchase order. Payment of cash for services received should preferably be avoided. Any exceptions should be approved by the Vice President Finance and CFO.

The limits for authorization of purchase order of services areBranches Over Rs. 10,00,000 Upto Rs. 10,00,000 Upto Rs. 7,50,000 Upto Rs. 5,00,000 Upto Rs. 3,00,000 Upto Rs. 1,50,000 HO & Factory Over Rs. 5,00,000 Upto Rs. 5,00,000 Upto Rs. 5,00,000 Upto Rs. 5,00,000 Upto Rs. 5,00,000 Upto Rs. 1,00,000 Upto Rs. 50,000 Upto Rs. 25,000

Management Level Managing Director Vice President/ Director Vice President General Manager Grade I Grade II Grade III Grade IV

48

ADVANCE PAYMENT
Fuel, Sugar capital machinery, Spare etc .with authority of planning manager and general manager. 1. Managing director authority for over 50, 00,000 advances payment. 2. No fresh advance should be given to the same vendor until previous advances have been settled and accounted for any acceptations solved by Financial Manager and Directors. 3. Management level 4. MD 5. Vice president/Director 6. Vice president 7. Generalmanager 8. Grade 1 9. authority limit over 50,00,000 up to 50,00,000 up to 25,00,000 upto10,00,000 up to 5,00, 000

Every quarter end list of pending advance should be prepared by the finance department and circulated at their respective location. The concerned department should take appropriate follow up action to settle the advance amount.

10. Advance payment for availing cash discounting on purchases of coded raw and packing material and service should be paid as per instruction of procurement department .The advance payment request prepared by the procurement Department Should be signed by General Manager-Supply . 11. Chain and financial controller besides authorized by appropriate levels of management as per applicable limits. All such advance should ideally be adjusted in the same month in which they are should preferably be approved by the finance controller.

49

12. The authority limits for approval of purchase order is given below :Management level Coded item M.D. Director Vice president General president Grade 1 Grade II Grade III UP to 30 lakh 30 lakh 30 lakh 30 lakh 7,50,000 7, 50,000 5 lakh 5 lakh 1 lakh 50 thousands. non-coded 5 lakh 5 lakh 30 lakh 15 lakh 7,50,000 5,00,000 Affiliate Purchase over 5,00,000 over 30 lakh 30 lakh 30 lakh over Rs.30,00,000

Affiliate purchase include finished product purchased for high sea sales. Coded items include all ingredients, Packing materials, Intermediate products and fuels. Non- Coded itmes include all items other than ingredients and packaging materials

50

CONSEQUENCE OF DELAY IN PAYMENT

Less trust of vendors Stop production Delay in supply product Take more cost Old and good vendor do not want to retain a business relations Less in good will in market Mostly work done on goodwill
o Advanced payment o Credit product o Any mishappening o Good relation o Negotiation in price of production o Profit making effect

Vendors do not want to supply product they want advance payment 51

Money block in advance payment

More working capital requirement

May be delay in payment and delay in supply and goods and this stage production will be stopped. if they require material is not present

POINTS RELATED WITH PAYMENT SYSTEM

Check the entry in S.A.P. by purchase department factory store and quality assurance department

Match with invoice which given by vendor with goods Check details like tax code, address, vendor name delivery address, originality of invoice, purchase order no., date,

If the payment amount is less than purchase order amount than finance manager for payment of this invoice.

And if the invoice payment amount is more than purchase order amount than finance manager does not allow for payment of this invoice.

Individually and properly check all the entry by finance manager in detail before clearing a payment.

INVOICE:
52

It is a legal document for any company. It is a slip which contains the const/ rate invoice is a type of bill and send by the vendor/ supplier. It is important for payment and other work. Its characteristic are 1. It should be original 2. Send by the vendor when they place goods 3. It should having proper elements a. Purchase order no. b. Delivery date c. Purchase date d. Rate e. Vendor Name f. Delivery place, g. Transportation name and address h. Company name, i. Specified product name, j. Include all taxes k. And other terms and condition 4. All the entry is correct and clearly mention.

PROBLEM IN INVOICE FOR DELAY IN PAYMENT

If invoice is not original, photocopy or duplicate

If not having any one of them element which is shown above.

If payment rate is more than purchase order rate

53

If having any incorrect entry

DEPARTMENT RELATED WITH PAYMENT SYSTEM

Engineering/ User Department Planning Department Purchase Department

54

Factory Store Quality Verification Department

Finance Department Payment

MODE OF PAYMENTS

After verify the invoice /bill the finance manger has right to make payment with different mode of payment, generally payment through at PAR Cheque.

According to Income Tax Act under section 40(a) (3) the payment through the cash of not more than Rs. 20000/-.

55

PAYMENT

Traditional

Modern

CASH

CHEQUE

B.O.E.

NEFT

RTGS

Cash:
Cash payment means direct payment in monitory terms. Cash payment is avoided in Heinz But still used @2%

o In less amount o Urgent payment

Cheque:
56

Cheque is a bill of exchange drawn on a specified banker and payable on demand (see 6 of negotiable instrument) It is species of a bill of exchange with two additional qualifications o It is always drawn on a specified banker o It is always payable on demand

90% payment is done by Cheque in Heinz India Private Limited (Aligarh unit) Crossing of Cheque: When a Cheque bears across its face two parallel transverse line, the Cheque is said to be crossed

The payment of a crossed Cheque can be obtained only through another banker The crossing may be general, special or restricted In case of not negotiable crossing the title of the transferee can be better than of transferor

A cheque may be crossed by the drawer, or the holder or the banker

57

 Bill of Exchange:
A bill of exchange is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to order of a certain person or to the bearer of the instrument (Section 5 of negotiable instrument). Parties to a bill: There are three parties to a bill of exchange 1.Drawer 2.Drawee 3.Payee

Drawer: A person who gives the order to pay or who makes the bill is called the drawer.

Drawee: The person who directed to pay is called the drawee. Acceptor: When the drawee accepts the bill, he is called acceptor Payee: the person to wqhom the payment is to be made is called the payee Bearer: When the payee name is in a bill is a fictitious or non existing person, the bill is treated as a payable to bearer

In some cases, the drawer and the payee, or when a principal draws and the drawee may be one and the person.

The drawer of the payee who is in possession of the bill is called the holder. The holder must present the bill to the drawee for his acceptance. Indorser: When the holder indorses the bill, note or cheque to another he is called the indorser.

Indorsee: The person to whom the bill note of cheque is indorsed is called indorse 58

Essential element: o It must be in writing o It must contain an order to pay o It must be unconditional o It requires three parties - drawee, drawee, payee o It must be signed by the drawer o The sum payable must certain o It must contain an order to pay money o The formalities relating to number date place and consideration, through usually found in bills are not essential in law

A bill as originally drawn cannot be made payable to bearer on demand.

Normal format of bill of exchange.

Rs 5,000

Bombay June 10/2007

Three months after date pay to Ram or order the sum of five thousand rupee, for value received To Sham 235, Subash Stamp Delhi -110006
. EFT(Electronic fund Transfer):

Accepted Sham

59

It is a modern technique by which money send one bank to another bank with the help of internet in a short period of time. This technique is implemented by Heinz India PVT.LTD. It is a easy and secured way of transferring money. Less time consuming. In this way we send the information of payment to bank and bank transfer the money in vendors account directly.

RTGS(REAL TIME GROSS SETTLEMENT)

It is same like EFT but having a small difference is that it is used when the companys bank and vendors bank both are different ,then a reputed bank make as a mediator in between two bank and help in transferring money this process is called RTGS. Company make payment all over India by the help of this new technology.

REPORT FOR CONTROL

Cash report, providing a comparison of actual developments with forecasts figure; are helpful in controlling and revision of cash forecast on a continue basis. Several types of cash report may be prepared. The importance ones are: Daily Cash Report: The daily cash report shows the opening balance, receipts, payment and the closing balance on a daily basis.

Daily Treasure Report:

60

An amplification of the daily cash report, the daily treasury provides a comprehensive picture of changes in cash, marketing file securities debtors and creditors. Monthly Cash Report: This report has shown the actual cash receipts and payment on a monthly basis. The actual are compared with budget figures and variance is calculated.

Monitoring Collection and Receivable: To enhance the efficiency of cash management, collection and disbursements must be properly monitored. Promoting Billing: Often there is time lag between the dispatch of goods and provisions of service and the sending of bills. By preparing and sending the bill promptly a firm can ensure easier remittance.

Control of Payables: By a proper control of payables a firm can conserve its cash recourses. This involves the following Payment should be made only as and hence they fall due. Payables and their disbursement may be centralized. This helps in consolidating funds at the head office, reducing productive bank balance at the regional office and investing fund more effectively. Arrangements may be made with suppliers to set due dates of their bills to match with the companys period of peak receipt.

Optimal Cash Balance:

If a firm maintains small cash balance, it has to sale its marketable securities more frequently than if it holds a large cash balance. Hence the trading or transaction cost will 61

trend to diminish if the cost balance becomes large. However, the opportunity costs balance increases.

Option For Investing Surplus Funds:

A company often has surplus funds for short periods of time before they are required for capital expenditure, lone, repayment, or some other purpose. These funds may be deployed in variety of ways. At one end of the spectrum is the term deposit in a bank, virtually a risk free investment, at the other end of the bank, virtually a risk free investment, at the other end of the spectrum is the investment in equity shares, which can produce highly volatile returns.

Cash management In The Company:

This Company follows the centralized management of cash. Every document relating to the payment of cash needs the official authorization of the account executives.

REASONS FOR DELAY IN PAYMENT

After analysis of plant accounting, we find out various reasons for delay in payment i. ii. iii. iv. v. vi. vii. Absentism of employees Holidays Supplied goods are not approved by the quality assurance department at a right time System failure Supplier does not give proper document Sudden increase in the price of material during the course of transaction During the period of account closing 62

viii. ix. x. xi. xii. xiii.

Non availability of adequate cash Work load Shortage of staff Misprinting and typing problem Non-following of the payment procedure Wrong entry in tax code, delivery in purchase order and in invoice.

RECOMMENDATIONS
1. Assign another employee during the absenteeism of a regular employee. 2. Choosing suppliers, which are having goodwill in the market. 3. Instructing the suppliers for sending the proper document while placing the order. 4. Laying at flexible policies according to the market condition. 5. Minimize the account closing period. 6. Train employee relating to payment system. 7. Minimize the paper work. 8. Conducting the special seminar for main supplier. 9. Maintain the adequate cash balance. 10. Company should laid such a policy strictly which ensure the payment on due date. 63

11. Try to modify the software. 12. Better coordination among the entire department related to payment system. 13. Company should launch the internal website for its Indian branch which should include detailed information about Aligarh branch as well as other production unit. 14. Request for proposal is on web page of Heinz India Private Limited. 15. Everyone gets benefit to see and send its quotations. 16. Company gets more quotations and having different rates for more choice for selection to select a perfect quotation. 17. Company invest his extra money in stock exchange and other place as for their need and demandshort term as well as long term investment or complete payment on discount rate of bills. 18. Purchase order is send by the internet. 19. Electronic fund transfer does payment and real time gross statement than it should fast rather than cheque and bill of exchange and transportation cost will be reduced. 20. Product sale is also handover in Aligarh unit may be the use of on line trading and traditionally. 21. Department is better coordinated with each other.

CONCLUSION
The Heinz India private limited is one of the leading food companies in the world. The company consists of latest technology to maintain best quality. It has solid financial position. I have thoroughly examined all the aspects regarding payment system and have drawn following conclusion: 1. I have observed that the company (Heinz) effectively utilized the fund efficient operations of manufacturing that include all commercial activities like purchase of raw material, payment of taxes, salary, production etc. 64

2. The company has kept proper book of accounts as required by law. 3. The company is maintained proper records showing full particulars, including qualitative details and situation for fixed assets. 4. The entire employee related to payment system is well trained. 5. Some time paper work makes a problem and it is also reasons for delay in payment. 6. S. A. P. is a very good software programme and it makes payment system very easy and save the time. 7. Company gave full government tax and other duty with complete honesty.

FORMAT OF INVOICE

65

FORMAT OF MATERIAL IDENTIFICATION SLIP (for sampling)

66

White slip
FS-F-XX Rev No.XX

Truck/Material Clearance Slip

Heinz India
From: PEST CONTROL UNIT, ALIGARH To : FACTORY STORES, ALIGARH M/s. by Truck No...Dispatched by Truck No..by transporter M/s. Has been checked and found O.K Extraneous material Transshipment Yes/No. Signature Date: Please note that material.received from

BIBLIOGRAPHY
67

Company Records & Manual.

Data from the Past Records of the Company.

Accounting Standards (AS 6 and AS10)

Company Web sites: www.heinz.in.co

www.heinzindia.com

Other Web Sites: www.incometaxindia.gov.in www.icai.org

Date

Particular

L.F.

Amount Dr.

Amount Cr. 68

08/05/08

08/05/08

23/5/08

15/05/05

15/05/08

1705/08

17/05/08

Inventory A/c BED A/c Education Cess A/c S.E.Cess A/c To GRIR A/c To CVAT A/c (Being Goods receive in factory) GRIR A/c CVAT A/c To Vender A/c (Being entry create liability of vender) Vender A/c To Bank A/c (Being payment to vender) Buyer A/c To F.G. A/c To CVAT Payable A/c To Edu. Cess Payable A/c To S. Edu. Cess Payable A/c (Being goods sold to the buyer) Bank A/c To Buyer A/c (Being Amount received by buyer) CVAT Payable A/c Edu. Cess Payable A/c S. Edu. Cess Payable A/c To BED A/c To Edu. Cess A/c To S. Edu. Cess A/c To PLA A/c (Being transfer the tax amount in their account) PLA A/c To Bank A/c (Being Total

Dr. Dr. Dr. Dr.

505000.00 404000.00 808.00 404.00 505000.00 41612.00

Dr. Dr.

505000.00 41612.00 546612.00

Dr.

546612.00 546612.00

Dr.

1091816.00 108700.00 80696.00 1613.00 806.00

Dr.

1091816.00 1091816.00

Dr. Dr. Dr.

80696.00 1613.00 806.00 404000.00 808.00 404.00 41504.00

Dr.

41504.00 41504.00

69