An accounting information system is a unified structure within an entity, such as a business firm, that employs physical resources and other components to transform economic data into accounting information for the purpose of satisfying the information needs of a variety of users. In fact the AIS is a subsystem of a broader information system that encompasses all information generating activities. The AIS consists of people, procedure and information technology. It performs the following three functions in the organization: It collects and stores data about activities and transactions so that the organization can review what has happened. It processes data into information that is useful for making decisions that enable management to plan, execute and control activities. It provides adequate controls to safe guard the organization assets, including its data. These controls ensure that the data is available when needed and that it is accurate & reliable. This study has identified one of the major components of the accounting information system of BPL Expenditure cycle, the technology, the output & users, and the control mechanisms related to this cycle. Some of them are input to the system, some work to process the input, and some represent the output. Regardless of what they are, they work together to achieve the system's objective which is to satisfy the information needs of the users. Business events, also called transactions, are the steps, within the physical & financial processes of firms. We may group the business events of BPL into process sequences called transactions cycles. Most Organizations engaged in many similar and repetitive transactions. These transaction types can be grouped into four basic cycles, each of which constitutes a basic subsystem in the AIS. These four cycles (or subsystems) of the AIS are related to one another and each feeds data to the general ledger & reporting system that provides information to both internal & external users. Accounting Software BPL uses a computer software program called "MAPICS" for its transaction processing purpose. "MAPICS" is the acronym of "Management Accounting Planning Information Control System". The software was developed and launched in the market by IBM Corporation in 1980. It is DOS based. MAPICS is batch processing software. In BPL transactions are entered in batches for a month and the batch is then posted and reports are generated according to pre- designed format. By structure MAPICS is a modular software. BPL uses the following modules of MAPICS: General Ledger. Budget Preparation. Financial Ratio Analysis. Fixed Asset Accounting. Accounts Receivable. L C Monitoring System. 2 Apart from MAPICS, BPL uses some other software for accounting purpose such as: Fixed Assets Management System. Payroll System. Inventory Control System. Sales and Billing System. Production Information System.
All these softwares are developed by the MIS department of BPL and these softwares are not integrated with MAPICS. Furthermore, MS Excel is extensively used by the accounts department. Expenditure Circle of BPL The expenditure cycle is a recurring set of business activities and related data processing operations associated with the purchase and payment for goods and services. The expenditure cycle of BPL includes: A. Acquisition of raw and packing material a. Local Purchase b. Import B. Acquisition of fixed asset C. Other revenue expenditure The focal point of this report is to put light on the acquisition of raw and packing material form local and foreign sources and related accounting treatments. Acquisition of fixed assets and other revenue expenditures are discussed briefly. A.a: Local Purchase of Raw and Packing Materials
The domestic purchase of raw material includes following business functions; 1. Processing purchase order 2. Receiving goods, material and services 3. Recognizing the liability 4. Processing and recording cash disbursement
1. Processing Purchase Order The procedure begins with need recognition. The respective department identifies its need, gets approval of the departmental head and with the approval an authorized person sends purchase requisition to purchase department to initiate purchase. In case of property, plant and equipment acquisition, before sending purchase requisition, a budget has to be prepared by the user department. If the departmental head or higher authorities, whichever is required, approve the proposed budget a purchase requisition is sent to purchase department. And in case of raw or packing materials, the planning department determines the quantity and timing of raw materials. This department informs the purchase department when to buy materials. 3 When the purchase department got the requisition, it calls for quotation or tender. After receiving the quotation or tender, supplier has been selected. The supplier may be local or international. If the terms and conditions are in favor of both BPL and the selected supplier, an order for the purchase is than issued by the purchase department. In case of raw or packing material, the purchase order is issued by the factory. A purchase register is maintained by the purchase department in which they maintain all the required information relating to a consignment.
2. Receiving Material, Goods and Services Generally the goods and services are received by the user department who has issued the purchase requisition or in some cases by the authorized department. Materials are received by Quality Assurance Department (QAD) in the factory. After receiving materials, goods and services an MRR (Material Receiving Report) is issued for material and other than material a GRR (Goods Receiving Report) is issued by receiving department to purchase department. In the mean time the invoice or bill is received by the purchase department. Before using the product by user department that is at the time of delivery, it has been inspected by the inspection team or QCD (Quality Control Department), by user department or by authorized department. QCD examined the materials on a sample testing basis and provide a certificate. Normally, I. QCD inspects standardized items like raw material, packing material etc. II. User department inspects non standardized items like services, stationeries etc. III. Inspection department inspects machineries, plants etc.
Again at BPL there are some authorized departments for inspection. For example, computer or IT related products are inspected by IT department, furniture are by HR department. If the received goods, material and services are not according to purchase requisition BPL may Refuse the order Reorder the item Received on condition
Before taking any action, there is a discussion between BPL and the supplier. After re- communication it has been decided whether the payment to the supplier will be made or not. 4
Figure: Receiving Function
3. Recognizing The Liability The purchase department compares the invoice/bill and MRR/ GRR/ QC with the purchase order. If every thing has been complied, the amount payable to supplier is approved by the purchase department. There is a seal on the invoice named Approved By with the signature of purchase manager. It means the purchase department is satisfied with the information mentioned in the bill. A copy of all this documents is kept by purchase department and the main copies along with copies not negotiable are sent to accounts and finance department.
Vendor
Warehouse/ Factory/ Ready for Use Accept Delivery by User department/ Factory Count & Inspect goods by respective departments Packing slip Goods & services Packing Slip Goods & services Goods & services MRR/GRR
Vendor
MRR/ GRR
Purchasing order by Purchase/ Planning Dept 5 The accounts and finance department is then ready for giving provision voucher. An authorized person is liable for giving provision voucher. He examines the not negotiable copy of bill/ invoice at the time of giving provision voucher. Generally the liability is recognized when the vendor sends the invoice or bill. But in some cases it may be recognized at the time of goods received.
4. Processing and Recording Check/ Cash Disbursement After a certain period of time when the date becomes matured for the liability the payment is made by BPL. The matured date has been calculated in the aged payable report for each vendor. The due amount for an individual vendor is identified from vendor business position report. In this stage another report is prepared for forecasting cash requirement. An individual person enters data in MAPICS for having this reports and forecasts. The same person checks the arithmetical accuracy, casts, cross casts, deductions and payable amounts. If the checking is matched with those reports checks are issued to pay vendor. The mode of payment is usually pre numbered check. In most cases the payment is made by payee only check. In some cases the payment may be made by cash or by bearer check or paid in advance fully or partly. Issuing check is a sensitive issue. It is prepared by that person who will give the payment voucher. And it is signed by senior management. The payment voucher is given by the same person who has checked the reports and payable amounts. This voucher includes original bills, MRR/ GRR, Vat (musok 11) and challan. It is recorded in the record book after the sign has been made. After all the procedure has been completed the check is given to vendor and the counter foil of that check is preserved by BPL. If the payment amount is large part by part payment is made. 6
Figure: Pay for Goods Function
Factory/ User department
Vendor Approve vendor invoices by purchase department Pay Vendor (cash disbursement s Purchase Department Accounts & Finance Department Vendor invoice Bill/ Invoice Purchase Order MRR/ GRR VAT (MUSOK 11) Checks A/P Payment Voucher
A/P Provision Voucher
Purchase order
MRR/GRR
7 The acquisition and payment procedure are summarized below with the help of a chart:
Requisition of respective department Tender / Quotation call
Accounts payable payment voucher
Issuing order Ready for payment Accounts payable journal voucher/ provision voucher
Sent bills to accounting department
Comply the bills with order, MRR / GRR and approve
Receiving bills by purchase department
Produce MRR / GRR Receiving goods / Services by factory/ Respective Department
Issuing check
With approval of the departmental head By Purchase Department or by User Department
By QAD, or by receiving department
Payment procedure is complied with sec 51(A), 52 of income tax ordinance-1984 and rule 16 of income tax Rule1984 and Musok 11 of VAT Act 1991
Figure: Procurement of local material
8 Input Information
Purchase Requisition Its a requisition generate by respective department. Data elements conveyed by a purchase requisition of BPL include unique number of purchase requisition, CEP and purchase order number with date name and description of material and service, unit number, required quantity, unit price and quantity ordered. It also includes signature and approval of authorized person, suppliers name; mode of payment, advance payment (if any), terms and conditions, MRR number, invoice number etc. If the requisition is for fixed asset then a CEP (Capital Expenditure Proposal) is raised by the user department. In this case, proposed suppliers name, estimated budget, justification for proposed expenditure and estimated life of proposed expenditure is also required. A sample of CEP is given in the annexure.
Purchase Order Its a document through which an order is made. The heading contains the purchase order number, purchase requisition number and date. The body contains the description of required item, quantity required and ordered, amount with unit price, suppliers name and address, terms and condition of order, due date, other relevant dates etc. Besides, it also describes the mode of purchase, advance payment (if any), purchase reference and other relevant information.
Material Receiving Report (MRR) / Goods Receiving Report (GRR) Its a report produced by the inspection department or receiving department. It is used to reflect the receipt of goods on consignment or goods returned to supplier. The report indicates item ordered, name of the material and supplier with the date of arrival of products, its quantity, quality and description of the received item. It also includes MRR number, order number, signature of the authorized person etc. The report is also used as inspection report. Because it mentioned information regarding to Quantity ordered before quality test Quantity received after quality test Quality Whether as per specification or not Country of origin Deliver in time or not Pricing Legal requirements etc.
Invoice / Bill This document is generated by supplier/ service provider that mentions the quantity and amount, bill number with date etc. The bill is attached with MUSOK 11, delivery challan etc.
9 Tax and VAT (Musok 11) Report BPL prepares these reports for calculating the amount of Tax and VAT deducted at source of suppliers. Tax and VAT amount is deducted from the total amount due. Deduction and calculation is made according to section 51(A), 52 of ITO- 1984 1 , rule 16 of ITR-1984 2 , and the VAT Act-1992 (Mushok 11). The reports contain vendor number, vendor name, and period, total amount due, tax amount, amount excluding tax amount, VAT amount and amount excluding VAT. A sample of tax and VAT report is added with annexure.
Information processing
Accounts Payable Provision Voucher Under this document provision i.e., entry is given against acquisition. Accounts payable is credited here. From the sample (given in the annexure) we see that information relating to voucher no, vendor no, invoice no, MRR no is required with their date for provision journal. Besides, information about due date for payment, item name, item number, unit, party name and the number of the account under which the item belongs to is also required. Using this journal voucher, an entry is given in MAPICS for recording inventory and also for valuation of inventory. Information regarding price is taken from suppliers bill and information regarding quantity received is taken from MRR/GRR. The following journal entry is given:
Accounts Payable Payment Voucher The accounts payable recognized in the earlier part are paid through this payment voucher after deducting appropriate taxes. The voucher contains he information of the payment date, mode of payment, item or batch no, voucher no with date, AP journal voucher number with date, amount,
VAT Rules 1991: Section 9 &13: The registered person who sells locally and exports taxable goods for the production of which he uses raw materials purchased paying VAT, can claim rebate by including the paid amount of VAT into the Treasury Deposit and Rebate column of form VAT-18.
Inventory (Raw Material) DR VAT DR [100% of VAT] Accounts Payable CR 10 party name and other related information. A sample of this voucher is given in the appendix. The following entry is given in MAPICS:
Output information Output information can be of two types: Information Affecting the Annual Report Figures or External Reporting Information for Internal Management or Internal Reporting. External report The entire process of import procurement and accounting for its related transactions affects several heads in the Annual Financial Reports. Below I mention the affected heads with reference to Annual Financial Report for 2012 Cost of Goods Sold: The detail of cost goods sold is provided in the Note. Under this head the affected subheads are: Raw Materials Consumed (Purchase) [Note]: This amount is the total of raw materials purchased during a financial year. When raw materials are received RAW MATERIAL PURCHASE A/C is debited. The end balance is the amount shown in the Annual Report. Packing Materials Consumed (Purchase) [Note]: Similarly, it is the total of packing materials purchased during a financial year. When packing materials are received PACKING MATERIAL PURCHASE A/C is debited. The end balance is the amount shown in the Annual Report.
ITO 1984: Section 52: Where any payment is to be made, whether in full or in part, or by way of advance, on account of indenting commission shipping agency commission or supply of goods or execution of contract, to any such person or class of persons as may be prescribed, the person responsible for making the payment shall, at the time of making such payment deduct tax on the amount so payable at such rate as may be prescribed.
Accounts Payable DR TDS(applicable rate) CR Bank CR 11 I n v e n t o r i e s : The inventories affected by import operations and related accounting are found in Note: Raw Materials Inventory Packing Materials Inventory Laboratory Chemical Inventory Raw and Packing material in transit Spares and accessories
Internal report To serve the internal reporting needs the following reports are prepared: Accounts payable payment voucher Vendor ledger Vendor account balance Journal register Cash requirement report Aged payable Tax report VAT (Musok 11) report Vendor business position Report on purchase Report on payment
Vendor account balance It is nothing but a report about the due amount payable to an individual vendor or a number of vendors on a certain date. The report includes vendors name, code and the total due amount. Journal register From this register management of BPL will get all related information of accounts payable transaction for a certain period of time. For example, if management wants to know about the amount of purchase of an individual vendor for a certain period of time with related deductions they can get it from journal register. Even the register also informs about whether any payment has been made or not and the due amount of that period. A sample of the register is given in appendix. Cash requirement report Its a managerial enquiry regarding vendors payable amount to forecast the current liabilities. From this report management of Finance and Accounts Department can be informed about the cash to be paid to individual vendor for a certain period of time. A sample of this report is given in the annexure.
12 Aged Payable Report Its a report about forecasting the maturity date of payable. It reflects the status of old unpaid invoices or vouchers. After the maturity date the payment will be made. The date will be matured according to purchase order contract. The reference date for age calculation is the voucher date or due date at when the product has been received. Vendor Business Position It is the evaluation of overall vendor position with BPL. In this report BPL generates information about vendors net due amount at a certain period of time. From this report management can have knowledge about the amount of gross payable; amount of tax, Vat, payment and other deduction deducted from gross payable amount and the net amount has to be paid to those vendors on that period.
A.b: Import of Raw and Packing Materials
Another source of raw and packing material is importing from overseas market. For this purpose, purchase department must open a letter of credit at bank. It ensures the liquidity of foreign supplier. After opening a letter of credit, Purchase department maintains a file where all the related documents are kept separately for each LC and sends a copy of each document to the Finance and Accounts department for further processing of information and to prepare the cost sheet for the materials received against each LC. This file is called PC (pharmaceutical consignment) file. The finance and accounts department has three sections: Treasury Cost and Budgeting Accounts
The processing of information related to import procurement takes place in the Cost and Budgeting section. For the convenience of the users I have discussed the whole thing into three parts. They are: Input Information Information Processing Output Information
13 Input Information Source of information: Three departments are involved in the entire materials procurement process. They carry their own responsibilities in this regard. The departments are: Sales Department Planning Department Purchase Department
The entire process looks like:
The planning department is concerned with the production planning and material procurement. After getting the sales forecast from the sales department, the planning department goes through the current stock information of different raw and packing materials. It prepares an import procurement schedule which helps them manage the procurement planning. The tabular format of the schedule is too large to accommodate here. Therefore I am just mentioning the column heads. The column heads are:
General 1. Material ID: 2. Name of the Material: 3. Procurement Time: 4. Unit cost: 5. Monthly Requirement: Stock Factory Stock: I&I 3 Stock: Stock in Hand: Pipeline Under Process: Await Shipment: In transit: At port: Under Clearance: Received: Summary Total stock in all stages: Total Req. As per Factory: Balance to be ordered: EOQ: Month Covered: To be procured this Month:
After considering this stock information it first calls for limited tender among the enlisted sources (local agents) for the supply of particular mat erials. The list of suppliers is kept in a database preserved by the planning dept. Within 15 days, the quotations are submitted by the competing suppliers. Then the planning dept. prepares a comparative statement and forwards it to the purchase department.
Sales Department Sales Forecast Planning Dept. Import Procurement schedule Purchase Dept. Pro forma Invoice LC opening Accounts PC, IV, BC Files 14 Purchase Procedure:
The purchase department is concerned with all the purchases of the firm. Usually the lowest bidder gets the offer to supply materials (considering their past performance, credit terms etc.). Then an Import Authorization Format' is prepared by the purchase dept. The format is then sent to the Director (commercial) for approval. The dept. then asks for pro-forma invoice (;in case of direct purchase from foreign suppliers) or indent (in case of supplies by local agents). Then the firm applies for `Block List' (for approval from Drugs authority) to import the raw materials. After doing all these prior works, the firm proceeds to open an L/C.
The purchase dept. first collects a form of application for the opening of letter of credit from a bank. An LCA form (in quintuplicate) is also collected. After filling up these forms, they are submitted to the bank along with the pro forma invoice approved by the Block list of Drug Administration and IMP form of Bangladesh Bank. The L/C margin (a certain percentage of L/C amount), bank charges and commissions for opening the L/C, insurance payment (if made at that time) etc. are also made. The insurance covers all risks from the beginning of transit.
The opening bank sends a copy of L/C to the advising bank and another copy is also sent by the company to the local agent or indenting company. The supplier then takes necessary measures to ship the materials. It sends the non-negotiable shipping documents (copies of bill of lading / airway bill, invoices, certificate of analysis of each batch. Form-9, packing list, certificate of origin etc.) to the buyer (the firm) by courier within 7 days and submits negotiable copy of all documents to the negotiating bank. Then the supplier asks the advising / negotiating bank to make the payment. After paying off the supplier, the advising bank asks the L/C opening bank to pay the amount within 72 working hours (3 working days). The opening bank then pays it off within the stipulated time. The bank then collects the L/C payment from the firm (applicant) on an agreed upon date. In case where the materials are borne in air transport, the firm needs the endorse copy document to get clearance from the customs authority after it reaches the airport. The Drug Clearance of invoice issued by the Drug authority is also required. The C&F agent of the firm is engaged in the goods clearance formalities. After getting the clearance, the materials are borne to the factory.
Documents received Purchase department sends copies of all the relevant documents to the Cost and Budgeting section of Finance and Accounts department. The documents are kept in three types of files according to their purpose: PC File (For Raw and Packing Materials and Also spare parts for pharmaceuticals machinery) 15 IV File (For Infusion Raw and Packing materials and Also spare parts for Infusion machinery) BC File (For Basic Chemical) The documents kept in these files can be categorized as follows:
Documents with Relevant Financial Information:
1. L/C Related Documents from Bank:
The L/C slip and the copy of banks L/C book is received. The books contain detail information on L/Cs. The relevant information extracted from this book are: L/C Margin Opening charge Amendment Charge Telex/ Courier service Charge Bank Charge Document Retirement 2. Premium Bill: Premium bill is prepared by the insurance company. This bill is non negotiable. The information included in this bill is:
A.
3. C & F Bill: The C & F bill is prepared by the clearing and forwarding companies. Different C & F agencies operate at different land, sea and airports. Imports are made through all these three types of ports. The C & F agent does the necessary formalities with the customs authority and sends the materials to the destination. They contain the following:
Non Negotiable Premium Bill: Marine @ x.xx% XXX.XX XX.XX War and Strike @ x.xx% Net Premium XXX.XX XX.XX Add: VAT 15% Stamp Duty X.XX Total Premium XXXX.XX
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B.
4. Shed Bill with Jetty Challan: This bill is prepared by the Biman Bangladesh Airline Authority (in case air port); the Chittagong port Authority (in case of sea port); Benapole Land port Authority (in case of land port). This is prepared for the dock or warehouse charges. For reporting purpose two types of information are extracted from this bill. Total DEM VAT on DEM
5. Bill of Entry and Assessment Notice: These two documents are the most important in regards to reporting and accounting purposes. The Customs authority prepares this bill against the C & F Agency. It includes the information on the Duty and taxes and VAT payable on imported materials. In all the ports the same type bill is prepared without any exception because the customs authority uses identical software for all the ports. Some materials need to go through PSI (Pre Shipment Inspection); so they are subject to PSI charges. The detail of the duty and taxes and their rates are discussed in the later chapter.
The bills include following information:
C & F BILL Against PC #_________
Amount Customs Duty and Taxes #### Wherfrent and Removal ### Documentation ## Cooly wages ### Transport ## Misc. Expenses ## Expenses under section 82 ### Audit/ treasury/ Bank Exp. ### Agency Commission @ 0.0x% ### TOTAL ##### Less: Income tax on Agency commission (##) ADVANCE (#####) DUE ###
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C.
D.
Bangladesh Customs Authority Bill of Entry
Calculation of taxes: Type Tax base Rate Amount Customs Duty [a] * [b] Supplementary Duty [b] * [c] VAT [b] * [d] AIT [a] * [e] Development Surcharge [a] * [f]
Note: The alphabets used in this table will used for further reference in the chapter to come. Consignor:
Consignee:
Agent:
Name of Carrier: Nationality: Description: Invoice No: Bank Name:
Office: Dhaka/ Chittagong Customs Customs Declaration No: No & Date of Assessment: I tems:
Agent: Reference: I mporter: Account No: Mode of Payment: Cash / Cheque Statement no & Date:
CD [b] [c] [d] [e] [f] [g] [h] SD VAT AIT DSC Advance Trade VAT PSI TOTAL TAXES [m] Document Processing Fee [p] [q] [r] VAT on C&F Commission Income Tax on C&F commission TOTAL GLOBAL TAXES [s] TOTAL ASSESSED AMOUNT [m]+[s] AMOUNT TO BE PAID [m]+[s]
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Documents with Relevant Non-Financial Information:
Invoice from Supplier: Although it contains financial information about the cost of raw materials, it is not needed for financial reporting. Because the amount that concerns is the L/C margin and the payment on L/C Retirement. As there is no direct transaction with the suppliers the original invoice is not needed for reporting. Packing List or Weight List: This list contains the detail information on the quantity of materials shipped; the number of packages; the type of packaging and the gross and net weight before shipment. Certificate of Analysis: Certificate of Analysis contains chemical analysis of the materials. The chemical contents, weight, color and other related information is disclosed and certified by the producing country are presented in the certificate. Certificate of Origin: Certificate of Origin is issued by the trade body (Chamber of Commerce) of the respective country and certifies that it is a product of their country. Form -9: Form-9 is required under the European regulation. All the countries producing chemical or pharmaceutical materials adopted it. This contains decoration from the producer regarding the permission to use the product which is licensed by them. It also sets the limit of using that licensed product. Airway Bill: Airway bill is just like ticket of the materials shipped. It contains the information on the material shipped, the destination, the carrier and the airport of departure. Consignment Presentation Slip: Consignment presentation slip is prepared at the port by the port authority and certifies the possession of the consignment. The slip includes following information:
Part A: Consignment Details Part B: Examination Transfer to delivery warehouse Part C: Paper Checking and Collection of Charges Part D: Final Delivery Information
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Information Processing Information processing is done through three stages. The records and reports prepared in those stages are different. The stages are: L/C Opening Stage L/Cs in Transit Stage Post Clearance Stage
L/C Opening Stage
L/C opening process: The purchase dept. first collects a form of application for the opening of letter of credit from a bank. An LCA form (in quintuplicate) is also collected. After filling up these forms, they are submitted to the bank along with the pro forma invoice approved by the Block list of Drug Administration and IMP form of Bangladesh Bank. The L/C margin (a certain percentage of L/C amount), bank charges and commissions for opening the L/C, insurance payment (if made at that time) etc. are also made. The insurance covers all risks from the beginning of transit.
As mentioned earlier (see: 1.2.1) the accounts department gets copy of the L/C and the Banks statement mentioning other related cost. It is done through the foreign exchange account of BEXIMCO PHARMA held with different banks.
Records and Reports: Various records are kept during this stage. Data related to L/C are maintained in two ways. They are: MS Excel Worksheets MAPICS MS Excel Worksheets: Two different sets of spreadsheets are prepared. The spreadsheets contain the following information. I am just mentioning the column heads of the spreadsheets and explanations where necessary. Spreadsheet containing Data on L/C Margin and Opening Charges: o L/C Number o Margin in Taka Purchase Department (Pro Forma Invoice, Drug, IMP) Local Bank (L/C Margin, Opng Chrg, Bank Charge)
Foreign Bank 20 o Opening Commission [p] o Courier service Charge [q] o Supplementary Tax [r] o VAT [s] o Amendment Charge [t] o Total taka ([p]+[q]+[r]+[s]+[t])
Spreadsheet containing Data on Document Retirement o L/C number o PC/IV/BC Number o Retirement Date o Payment o Payment Date
MAPICS Entries: MAPICS (Management Accounting Production Inventory Control System) is a software custom made for BEXIMCO GROUP which serves the both the financial and management accounting needs. In the L/C opening stage two types of entry are made into the software: Database Entry Journal Voucher Database Entry: This entry is made to maintain a database of L/Cs and shipments. The entry includes: L/C Number PC Number Shipment Date Retirement Date This database is also linked with the accounting system built within the software. Whenever a journal entry is made with the L/C account this database is linked with that entry. It detects any inconsistency with the L/C number and PC number.
Journal Entry: The journal entry made at this stage includes the opening charges, L/C margin, Bank charges, Courier Charges, Amendment Charges, etc. The Journal Entry made through the Bank Voucher. The entry is:
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All the debit entries are posted to the L/C group account. These are all considered as expenditures. All the amounts are found in the summary spreadsheet prepared with MS Excel.
L/Cs in transit stage The opening bank sends a copy of L/C to the advising bank and another copy is also sent by the company to the local agent or indenting company. The supplier then takes necessary measures to ship the materials. It sends the non-negotiable shipping documents to the buyer (the firm) by courier within 7 days and submits negotiable copy of all documents to the negotiating bank. Then the supplier asks the negotiating bank to make the payment. After paying off the supplier, the advising bank asks the L/C opening bank to pay the amount within 72 working hours (3 working days). The opening bank then pays it off within the stipulated time. The bank then collects the L/C payment from the firm (applicant) on an agreed upon date.
Records and Reports prepared at this stage: Two records could take place during this stage. Both the records are made using the MAPICS software in the form of journal entries through Payables voucher and Bank Voucher. The transactions are: Payment of Insurance Premium: Insurance premium is set on the invoice price. The materials are normally insured to make cover for fire/marine and war/strike risks. A VAT of 15% is imposed on the insurance L/C Margin DR Opening Charge DR Amendment Charge DR Courier Service DR VAT DR Bank Charges DR Bank A/C CR VAT Rules, 2007. Rule 19(2): The tax payer can claim 60% of the VAT as claim against input tax in respect of charges for . L/C services.. 22 premium. To facilitate the journal entry a spreadsheet analysis is made using MS Excel, which contains: I. L/C Number II. PC Number III. Item name IV. Total Insurance Premium (see figure A: premium bill) V. VAT on Insurance Premium (see figure A: premium bill) VI. Net Insurance Premium (Total Premium-80%of VAT)
The journal entry is often made through payables voucher. The entry is:
Advance payment to the C&F Agent: The C&F agents are responsible to make customs clearance from the ports and make delivery to the factory at Gazipur or wherever required. The estimated amount for clearing and forwarding process is paid in advance. The journal entry is made through Bank voucher using MAPICS software. The entry is:
Post Clearance stage
After successful clearing and delivery of the consignment the C&F agent sends all the relevant documents. The documents include: C&F Bill Shed bill with Jetty Chalan Bill of Entry Assessment Notice Consignment Presentation slip This marks the completion of the import process. After receiving these documents the PC/IV/BC files are completely ready. Insurance Premium DR [VI] VAT DR [80% of VAT] Accounts Payable (Insurance Company) CR VAT Rules, 2007. Rule 19(1): The tax payer can claim 80% of the VAT as claim against input tax in respect of charges for . Insurance services.. C&F Agent (Advance) DR Bank A/C CR 23
Records and Report s Prepared du ri ng t hi s s t age: A detailed spreadsheet is prepared to facilitate the journal entry in the first place. The entire spreadsheet is presented into different parts for convenience.
DUTY TAXES SPREADSHEET: Part A: General Information:
PART B: Currency and Quantity:
PART C: Bank Charge and Insurance Premium:
PART D: Duty
Column ID Column Head Source/ Formula K Customs Duty Assessment Notice [b] L Supplementary Duty Assessment Notice [c] M Development Surcharge Assessment Notice [f] N Pre-shipment Inspection Assessment Notice [h] O Total Duty K+L+M+N
PART E: VAT and AIT (Advance Income Tax)
Column ID Column Head Source/ Formula Q VAT Assessment Notice [d] R DF(Documentation fee) VAT Assessment Notice [s] S AIT (On C&F commission) Assessment Notice [r] T DF/VAT less AIT(c&f) [R]-[S] U Total VAT [Q]+[R]-[S] V AIT Assessment Notice [e] 1. SL# 2. L/C Number 3. PC/IV Number 4. Item Name 5. Item Type (Raw/Packing/Spares) 1. Foreign Currency (US$/EUR) 2. Cost in Foreign Currency 3. Unit 4. KG/PC 1. Bank Charge 2. Insurance Premium 3. VAT on Insurance Premium 4. Net Insurance Premium ([2] - 80%of [3] 24
PART F: Total DUTY, VAT and AIT
PART G: DEM (Warehouse and Other charges)
PART H: Miscellaneous Expenses and C&F commission
These two are extracted from the C&F bill. Miscellaneous Expenses could include:
C&F commission is imposed on the assessed value of imported materials.
PART I: Agent
PART J: Final summary for Journal Entry
Column ID Column Head Source/ Formula W Total DUTY, VAT, AIT [O]+[U]+[V] Column ID Column Head Source/ Formula X DEM Shed Bill/ Jetty Chalan Y Auction Shed Bill/ Jetty Chalan Z VAT DEM Shed Bill/ Jetty Chalan AA Net DEM [X]+[Y]-[Z] Documentation Cooly wages Transport Misc. Expenses Expenses under section 82 Audit/ treasury/ Bank Exp. Column ID Column Head Source/ Formula AB Misc. Exp. C&F Bill AC C&F Comm. C&F Bill Column ID Column Head Source/ Formula AD Total Amount [W]+[AA]+[Z]+[AB]+[AC] AE Advance Amount C&F Bill AF Due [AD]-[AE] AG Agent Agent Name Column ID Column Head Source/ Formula AH DUTY [O] AI VAT [Q]+[R]*60%+[Z] AJ AIT [V] AK DEM [AA] AL MISC [AB]+[R]*40%-[S] AM C&F Commission [AC] AN TOTAL AH+AI+AJ+AK+AL+AM 25
Claim for VAT Rebate: VAT rebate is claimed 100% on the VAT paid on cost of materials and VAT paid on warehouse charges. 60% VAT rebate is claimed on VAT paid on C&F commission. The law in this states as follows:
Therefore VAT is claimed 100% on VAT paid on cost and DEM VAT and 60% on VAT paid on Total Global Taxes. The rest 40% is added to the miscellaneous expenses and the income paid on C&F commission is deducted from the miscellaneous expenses amount to match the total amount due to the Agent.
The amounts for the journal entry are summarized in the spreadsheet (see part G). The journal entry is made as follows using the MAPICS software:
*See Part J of spreadsheet for references of the amounts.
The duty tax; miscellaneous expenses and C&F commission goes to the L/C group account. The other accounts are posted through general journal.
VAT Act 1991: Section 9 &13: The registered person who sells locally and exports taxable goods for the production of which he uses raw materials purchased paying VAT, can claim rebate by including the paid amount of VAT into the Treasury Deposit and Rebate column of form VAT-18.
VAT Rules, 2006. Rule 19 (2): The tax payer can claim 60% of the VAT as claim against VAT paid in respect of charges for .C&F Commission ..
Duty TAXES DR [AH] VAT DR [AI] AIT DR [AJ] DEM DR [AK] Misc. Exp. DR [AL] C & F Comm. DR [AM] C&F Agent (Liability) CR [AN] THE JOURNAL ENTRY FOR DUTY, TAX AND VAT:
26 Output Information As I have discussed the necessary journal entries in the previous chapter, it is already clear about the output information of these activities. Better output of information reflects better accountability to the stakeholders and greater efficiency of the decision makers or managers. Output information can be of two types: Information Affecting the Annual Report Figures or External Reporting Information for Internal Management or Internal Reporting. The transactions involved in the process of import procurement affects both the above. But it is more important from the internal reporting point of view. The net effect of these activities on the external report and the decisions of the investors are very remote. But it has a materially significant part to play in internal decision making (eg. costing, inventory control, pricing, etc.). External report The entire process of import procurement and accounting for its related transactions affects several heads in the Annual Financial Reports. Below I mention the affected heads with reference to Annual Financial Report for 2012.
Cost of Goods Sold: The detail of cost goods sold is provided in the Note#. Under this head the affected subheads are: Raw Materials Consumed (Purchase) [Note #]: This amount is the total of raw materials purchased during a financial year. When raw materials are received RAW MATERIAL PURCHASE A/C is debited. The end balance is the amount shown in the Annual Report. Packing Materials Consumed (Purchase) [Note #]: Similarly, it is the total of packing materials purchased during a financial year. When packing materials are received PACKING MATERIAL PURCHASE A/C is debited. The end balance is the amount shown in the Annual Report. Advances: Advances are current assets and it is detailed in Note #. The import procurement process affects two types of advances: C & F Agent: As mentioned earlier C & F agents are paid in advance for smooth fulfillment of their responsibility. The C & F account is debited on payment of the advance. The year end balance appears in the annual reports as an advance. VAT: As I have shown earlier the amount of VAT subject to rebate is debited to VAT account. The VAT amounts payables are credited to the same account. If it has a debit balance at the end of the year then it appears as current asset.
27 I n v e n t o r i e s : The inventories affected by import operations and related accounting are found in Note #22: Raw Materials Inventory Packing Materials Inventory Laboratory Chemical Inventory Raw and Packing material in transit Spares and accessories
Internal reports The most important destination of the accounting reports related to import of raw materials is the internal management. For efficient decision making the internal management is constantly is need of timely and appropriate reports on costing. To serve the internal reporting needs the following reports are prepared:
The Cost Sheet: This is the most important report prepared on the import procurement process of raw materials. Cost sheets are prepared for individual raw and packing material items, as well as spares and capital machinery. Cost sheet is generated by the MAPICS software. It is the summary of entries debited through the journal voucher of L/C. It is used for costing and pricing decisions. The cost sheets include the following: COST SHEET Company Name: BEXIMCO PHARMA Shipment No: Supplier Name: Date: L/C No: Date: Exchange rate: Invoice No: Date: CEP: Date: PARTICULARS 1 2 Total Material Name MRR No MRR Date: Invoice Quantity FC Cost/ Unit Total FC Cost
28 L/C Margin Opening Charge Document Retirement Duty, LCA, IDSC & others C & F Commission Insurance Premium Miscellaneous Expenses TOTAL COST COST PER UNIT
Cost Summary: Cost summary is a summary of the cost sheets prepared on a monthly basis. It is a MS Excel worksheet. All the information are extracted from the cost sheet. The column heads are: Month L/C Number PC/IV/BC Number Materials Name Quantity C&F Rate Foreign currency Cost Currency [US$/EURO/YEN] Exchange rate C&F in Taka [Exchange Rate*FC Cost] Other costs [Duty/ LCA, C&F Commission, Insurance premium, Misc. Exp., Opening Charge] Landed cost [C&F in Taka + Other Costs] Cost per Unit [Landed Cost / Quantity] Supplier Name and Country
L/C Balance: This is prepared to facilitate the payment of L/C liabilities. It is used by various departments including the treasury. The columns are: L/C Number Total Taka Opening Date C&F Value in Taka
29 B. Capital Expenditure Cycle BPL has a well-defined policy guideline for capital expenditure. This cycle involves acquisition of property, plant and equipment. First, the capital expenditure must be included in the yearly budget. Then the head of the department raising the capital expenditure proposal (CEP) must justify the proposal. A sample of CEP is given in appendix. The CEP includes following information: 1. Classification of the asset such as new purchase or replacement of an asset. 2. Description of the item 3. Reason or justification for the proposed expenditure 4. Economic life 5. Estimated expenditure 6. Budget provision for the proposed expenditure 7. Suggested supplier 8. Approval with signature of Departmental head, Director, Commercial and Director, Finance 9. Final approval by CEO(Chief Executive Officer) Then the Director, Finance verifies the CEP along with the business research and development department and the CEP is sent to the CEO for final approval. After getting the CEO approval, purchase department acquires the capital asset from the enlisted local or foreign suppliers. Accounts department records the transaction and makes the payment as per terms.
Input Information
All the necessary information for the purpose of recording acquisition of fixed assets are taken from Capital Expenditure Proposal, Purchase order, Budget prepared for this purpose, chart of accounts, suppliers bill approved by purchase department, Bill of entry, Assessment notice, L/C related documents for import of machineries.
Information processing
BPL initially records all property, plant and equipment at cost and charges depreciation over their expected useful life. The cost of acquisition of an asset comprises its purchase price and any directly attributable cost of bringing the asset to its working condition for its intended use inclusive of inward freight, duties and non-refundable taxes. In respect of major projects involving construction, related Recording Aspects Of Capital Expenditures:
30 pre-operational expenses form part of the value of asset capitalized. Expenses capitalized also include applicable borrowing cost. Exchange loss is also capitalized as an addition to the cost of the asset.
Expenditure incurred after the assets have been put into operation, such as repairs & maintenance, is normally charged off as revenue expenditure in the period in which it is incurred. In situation, where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefit expected to be obtained from the use of the fixed assets, the expenditure is capitalized as an additional cost of the assets. Software expenses are generally charged off as revenue expenditure.
On retirement or otherwise disposal of fixed assets, the cost and accumulated depreciation are eliminated and, any gain or loss on such disposal is reflected in the profit and loss account which is determined with reference to the net book value of the assets and the net sales proceeds. The gain or loss resulted from disposition of an asset are treated as other income which does nor result from companys major operating activities and so are not included in gross profit.
BPL charges no depreciation on land and uses reducing balance method for charging depreciation n respect of all other fixed assets. Depreciation is provided to amortize the cost of the assets after commissioning, over their expected useful economic lives. Full year's depreciation is charged on additions and no depreciation is provided on retirement, irrespective of date of addition or retirement respectively. The annual depreciation rates applicable to the principal categories of assets are: Assets Rate Building and other Construction 10% Plant and other Machinery 15% Furniture and Fixtures 10% Transport and Vehicle 20% Office Equipment 10% to 50%
BPL maintains a separate module named Fixed Asset Accounting in MAPICS where journal entries are given to record the acquisition of new asset, replacement, renewal and disposition of asset and related depreciation according to the rate. In the MAPICS, only control ledgers for principal categories of assets are kept. For the purpose of keeping subsidiary ledger, a separate software named Fixed Assets Management System is used where another person gives entry for the same transaction. This is basically a duplication of work.
Output Information
Output information can be of two types: Information Affecting the Annual Report Figures or External Reporting 31 Information for Internal Management or Internal Reporting. External reports: The entire process of capital expenditure and accounting for its related transactions affects several heads in the Annual Financial Reports. Below I mention the affected heads with reference to Annual Financial Report for 2012. Property, Plant and Equipment Carrying Value The details of all property, plant and equipment are given in the Note #. In the notes to the financial statements section, BPL discloses all the necessary information regarding property, plant, and equipment including the cost of the assets at the beginning of the year, additions and disposals in the current year, adjustment on disposal, exchange loss, accumulated depreciation at the beginning of the year, depreciation charged for the current year and carrying value at the end of the year. Internal Report: The sum of all assets is reflected in annual report. But for the preparation of budget and making decisions regarding the current status of each class of assets, periodic statements are prepared where detailed breakdown of each major class of asset are included.
C. Revenue Expenditure Cycle The expense cycle of BPL is little difficult to describe because of the varying nature of expenses. For the sake of simplicity, expense cycle is presented here in a segregated manner according to the major types of expenses namely factory overhead, administrative expense and selling, marketing and distribution expense. Factory overhead The major types of factory overhead are salary and wages, power, insurance, stores and spares consumed repairs and maintenance, research and development, municipal tax and land revenue, telephone and postage expense etc. These expenses are incurred in the factory. Whenever an expense is incurred, it is reviewed and recommended by the immediate supervisor of the person incurring it. Then it is sent to the head of the respective department for approval. After getting the approval finance and accounts department records the transaction to the appropriate cost center and makes the payment.
Administrative Expenses The major types of administrative overhead are salary of the executives of head office, utility, rent, legal and professional fees, printing and stationary, AGM expenses, audit fees, entertainment, petrol and fuel etc. These expenses are incurred in different departments of the head office. Whenever an expense is incurred, it is reviewed and recommended by the immediate supervisor of the 32 person incurring it. Then it is sent to the head of the respective department for approval. After getting the approval finance and accounts department records the transaction to the appropriate cost center and makes the payment. Selling, Marketing and Distribution Expenses The major types of selling and distributive overhead are advertisement, promotional expense, traveling and conveyance, training of medical representatives, books and periodicals etc. These expenses are incurred by the sales and promotion department. Whenever an expense is incurred, it is reviewed and recommended by the immediate supervisor of the person incurring it. Then it is sent to the head of the respective department for approval. After getting the approval finance and accounts department records the transaction to the appropriate cost center and makes the payment.
Input information Input information for recording purpose is obtained from the respective department where the expenses are incurred. Each department sends the bill to Accounts and Finance department. This bill is used as the source document. After verifying supporting documents, a person records the expense as overhead item through appropriate code in MAPICS. Information Processing After verifying supporting documents, a person records the expenses as overhead items or operating expenses through appropriate code in MAPICS. The appropriate code is determined by chart of accounts. Depending upon the nature of expenses, input is fed into the software against a code. Besides this, some other custom made softwares are used to record the advance payment to different parties including employees, utility expenses, event management etc. Output Information Out put information are of two types: Information Affecting the Annual Report Figures or External Reporting Information for Internal Management or Internal Reporting. External report In annual reports, administrative expenses and selling, marketing and distributive expenses are shown as operating expenses. Factory overhead is included in the calculation of costs of goods sold. These Recording Aspects Of Revenue Expenditures:
33 information are reported in the notes to the financial statements. Related parts are extracted in the appendix. Internal reports A report highlighting the actual expenses, budgeted amount for those expenses and variance is prepared monthly for internal decision making.
Internal Control for Expenditure Cycle
The internal control of BPL for expenditure cycle is strong enough to detect, prevent and correct any errors and mistakes made in authorizing, recording, processing transactions and providing output to user groups. Some internal control mechanisms are discussed below:
Authorization of Purchase As described earlier in recording process section, at BPL the user department sends purchase requisition to purchase department with the approval of departmental head. An authorized person checks that requisition and made the purchase order. Without purchase requisition no purchase order will be made. In case of materials, the planning department identifies the required quantities of materials and sent requisition to purchase department. And in case of fixed asset BPL required approval of CEO or deputy chairman. But before requisition a budget has been made for that asset. In each case there is a limit amount for ordering goods.
The purchase order document contains a unique number. This unique number is used as reference for further proceeds. It also contains the signature of the person raising requisition. The purchase department is responsible for making the order only. It is not responsible for authorizing or receiving goods. It maintains a purchase register where all given orders are recorded with ordered item, quantity, unit price and suppliers name.
Separation of Asset Custody from Other Functions Usually, the ordered items are received by user department. But in case of inventoriable item, that is raw or packing material, it is received by factory. The receiving department produces the MRR/ GRR. The same report is also used as inspection report. In case of raw or packing material, Quality Control Department generates Quality Assurance report. One copy of MRR/ GRR/ QA is kept by the receiving department, one copy is sent to purchase department and another copy is sent to accounts department. So the personnel are separate from each other. Again there is a physical control over item from their acquisition to disbursement. A cross departmental monitoring activity is a common scene here. The bank reconciliation statement is prepared monthly by an employee independent of recording cash disbursements or custody of assets. 34 Timely Recording and Independent Review of Transactions BPL recognizes accounts payable as its liability at the time of vendors invoice is received. It recognizes the liability by analyzing the following documents; Not negotiable copy of purchase order MRR/ GRR Not negotiable copy of invoice/ bill Vat report If the person is satisfied with those documents he will then give the provision voucher. This person does not have the access to handle the cash, securities or other assets.
Authorization of Payments BPL pays its vendors after the date has been matured for payment. Normally the payment is made by pre-numbered check. A specially designed check is designed for this purpose. A separate person gives the payment voucher. Before giving payment voucher he checks all the documents and reports relating to that transaction and also examined that the bills are approved by purchase department. The payment voucher includes original bills, MRR/ GRR, VAT (MUSHOK 11) and challan. When the authorized person signs the checks, he just skims through the attached documents with the payment voucher. Normally these signs are made by managers or director of accounts and finance.
Physical Security Measure BPL has instituted some physical security measures to protect its assets and records from being misappropriated or misused. For example, a gate pass is needed to take out any kind of moveable property both at head office and at factory, cash in transit is insured and cash at office is placed under lock and keys, all the records and documents are placed under the supervision of responsible company officials. The company has also employed closed circuit television (CCTV) system to monitor every entry and exit.
Budgetary control Budgetary control is primarily used for the revenue expenditures. For each class of revenue expenditure, a budget is prepared for each month and the actual expenses are compared against the budgeted amount. Threats and Control Procedure Another function of a well-designed AIS is to provide adequate controls that meet the following objectives: 1. All transactions are properly authorized 35 2. All recorded transactions are valid 3. All valid, authorized transactions are recorded 4. All transactions are recorded accurately 5. Assets are safeguarded from loss or theft 6. Business activities are performed efficiently and effectively The documents and records described in the previous section play an important role in achieving these objectives. Simple, easy-to-complete documents with clear instructions facilitate the accurate and efficient recording of transaction data.
The following table lists the major threats and exposures in the expenditure cycle and the applicable control procedures that are placed in operation to mitigate them. The table is organized around the stages of the expenditure cycle.
Activity Threats Applied Control Procedure Order goods Preventing stock outs and/or excess inventory 1. To guard against these threats, BPL establishes an accurate inventory control system. The perpetual inventory method is used to ensure that information about inventory stocks is always current. 2. BPL selects suppliers who are known to meet the delivery commitments. Requesting unnecessary items 1. BPL is very much aware of purchasing items that are not currently needed. To ensure this, every purchase requisition is approved by the departmental head. 36 Purchasing goods at inflated price or of inferior quality
1. To prevent this, an open tender is arranged for the suppliers. BPL selects those suppliers who are capable of delivering highest quality goods as reasonable price.
2. BPL prepares a monthly budget for the purchase of goods. Actual costs are compared periodically with budget allowance. To facilitate control, these reports highlight any significant deviations from budgeted amounts for further investigation. Purchasing goods of inferior quality
1. To avoid the purchase of goods of inferior quality, BPL has established a list of approved suppliers known to provide goods of acceptable quality.
2. In addition, supplier performance data is collected and periodically reviewed to maintain the accuracy of this approved suppliers list. Receive and store goods Receiving unordered goods 1. Receiving departments accept only those deliveries for which there is an approved copy of the purchase order and matches the quantity mentioned in the purchase order with goods received. Stealing inventory 1. Inventories are stored in secured locations with restricted access. 2. All transfers of inventory are properly documented. 3. Separation of asset custody from recording responsibility. 37 Approve and pay vendor invoices Failing to catch errors in vendor invoices
1. Vendor invoices may contain errors such as discrepancies between quoted and actual prices charged or miscalculations of the total amount due. To detect mathematical accuracy of vendor invoices, those invoices are compared with purchase order and receiving report. Paying for goods not received 1. The control procedure used here is that the person responsible for payment to the vendors compares the quantities indicated on the vendor invoices with the quantities mentioned in the materials or goods receiving report.
Paying the same invoice twice. 1. Invoices are approved for payment only when accompanied by a complete voucher package (purchase order and receiving report) 2. Payments are made only on the basis of original invoices. Duplicate invoices are marked clearly that these are duplicate. 3. Payments are never authorized for a photocopy of an invoice 4. When the check to pay for an invoice is signed, the invoice and the voucher package are marked paid and canceled Recording and posting errors in accounts payable 1. The person making the payment compares the difference in supplier account balances before and after processing checks with the total amount of invoices processed. 2. Here the control is deficient in one aspect i.e. the non existence of limit test. 38 Misappropriating checks 1. Use of prenumbered cheque. 2. Access to cheque writing machine is restricted as well. 3. Proper segregation of duties i.e. custody of cheque is segregated from the authorizing function. 4. Every cheque is signed by two persons before making the payment. General Control Losing data 1. All the supporting documents are kept separately in a file. 2. Both internal and external labels are attached to each file. 3. Access control is established via use of passwords and user ID.
39 Annexure
A Sample of CEP
BEXIMCO .DIVISION CAPITAL EXPENDITURE PROPOSAL (CEP) SPARE PARTS APPROVAL Unit Depth Date Serial # 1. Classification: Replacement Addition Development
2. Description of item with ID Number (if Any):
3. Reason/ Justification for proposed expenditure:
8. Remarks
4. Economic life (Years) 5. Supplier: 6. Estimated Expenditure
7. Budget Provision:
Signature of Budget Officer Approved By
CEO/ Deputy Chairman Submitted By Recommended By Recommended By
Departmental Head Director, Commercial Director, Finance Date: Date: Date:
40 Sample of Purchase Order
Purchase Order No. Purchase Requisition No Date of Receipt by PD SL No . Name and Description of Material / Service Unit No Quantity Ordered Unit Price Quantity Ordered Amount 1 2 3 4 _______________ Sign of Person Raising Requisition ________________ Approval of Departmental Head _______ Date Total Mode of Purchase Cash / Against Order
Pay Cash/Issue Check/Order to be Placed _________________________________ Name of the Party _____________________________ Order / Advance Payment Authorized
Terms and Condition of Order:
Date
_________________ Authorized Signature
MRR NO. ___________
Date
From
To
Invoice/ Voucher No________Date_________ Amount for Refund______________________ Amount Due for Payment_________________ __________________________ ________ Passed for Payment/ Adjustment Date MRR NO. __________DATE __________ MRR NO. __________DATE __________ MRR NO. __________DATE __________ MRR NO. __________DATE __________
41 Accounts Payable Provision Voucher
Tax and VAT Report
Tax and VAT Report Vendor s no Vendor s name Perio d Total amoun t due Tax amoun t VAT Amoun t Other deduction s Net amoun t due
Beximco Pharma AP Journal Voucher Date: ..
Voucher No : .. Original Voucher No: .. 0/00/00 Vendor No : Invoice / Bill : Date: MRR/QC/WO : . 0/00/00 Due Date : Description :
Payable : .. Amount Cr. Vat : .. Amount Dr Commission : .. Amount Dr Total (Tk) :
Item Description Account no Amount (Tk) Dr./ Cr
Signature Date Notes Prepared by Checked by Approved by Posted by
42 Accounts Payable Payment Voucher
8. Vendor ledger
Sample of Journal Register
Beximco Pharma AP Payment Voucher Date: .. (Cash / Bank)
Batch/item No : .. Voucher No : Original Voucher No: .. 0/00/00
AP JV No JV Date Vendor No Check No type Account no Amount (Tk) Dr. /Cr
Signature Date Payee Prepared by Checked by Approved by Posted by
Beximco Pharma Journal Register From 0/00/00 to 0/00/00 Payment Upto 0/00/00 Summary by Vendor
Vendor No & Name Purchase Vat Amount Tax Amount Other Amount Net Paid Due Amount
43 Sample of Cash Requirement Report
Sample of Aged Payable Report
Sample of Vendor Business Position Report
= 0 = Beximco Pharma Vendor Business Position Report From 0/00/00 to 0/00/00
Vendor No Vendor Name Payable Vat Tax Pay- ment Other Deduction Due Amount
Beximco Pharma Cash Requirement Report (Summery) By Invoice Upto 0/00/00 Payment Upto 0/00/00 Ref. Date for Age Calculation: Voucher Date Payable Amount & above days old
Vendor No Vendor Name Payable Paid Deduction Due Amount
Beximco Pharma Aged Payable Report (Summery) By Invoice Upto 0/00/00 Payment Upto 0/00/00 Ref. Date for Age Calculation: Voucher Date Payable Amount & above days old
Vendor No Vendor Name Total Due Amount 0-30 Days 31-60 Days 61-90 Days Above 90 Days Unclassi- fied