Process flow and accounting of Freezer

1. Indent request from Marketing / Marketing co-ordinator.

2. Finance will clearance for purchase after verification of last lot purchase, freezer issue details
and Agreement received.

3. On receipt of Indent, stores will initiate the purchase.

Purchase entry is :
Stock- Freezer A/c. Dr.
To Vendor A/c.
(Cost Price)

4. Whenever request received from marketing duly approved by HOS, Marketing co-ordination
team will raise MRN to stores to issue Freezer. Issue entry is as follows:
Business Promotion A/c. Dr.
To Stock Freezer A/c.
(Cost Price)

5. Based on request from marketing co-ordination, IC will create the customer consignment entry
to do the monitoring of freezer with customer as follows:

For FOC: Material 1:

Stock Freezer Material 1 A/c . Dr.
To: Physical Verification of other material A/c.
( Cost Re.1/-)

Customer / Sub Dealer A/c. (Consignment) Dr.

To: Stock Freezer Material 1 A/c.
(Cost Re.1/-)

For InstL Material 2:

Stock Freezer Material 2 A/c . Dr.
To: Physical Verification of other material A/c.
( Cost Re.1/-)

Customer / Sub Dealer A/c. (Consignment) Dr.

To: Stock Freezer Material 1 A/c.
(Cost Re.1/-)

6. Based on good customer track record or completion of installment based on recommendation of

HOS the freezer again scrapped / removed from stock. Entry as follows:
 For FOC: Material 1:
Scrap of other Material1 A/c Dr.
To: Customer / Sub Dealer A/c. (Consignment)
(Cost Re.1/-)

For Inst: Material 2:

Scrap of other Material2 A/c Dr.
To: Customer / Sub Dealer A/c. (Consignment)
(Cost Re.1/-)

7. If Freezer return due to Business closed in case of FOC, Transfer the material from Consignment
to Marketing store location. Entry as follows:

For FOC: Material 1:

Stock of Freezer (Marketing Stores Location) A/c Dr.
To: Customer / Sub Dealer A/c. (Consignment)
(Cost Re.1/-)

8. If Freezer return due to Business closed in case of Inst, Transfer the material from Consignment
to Marketing store location as well refund of Inst effect after deduction of amount recommend
by HOS based on No. of years used or condition of the freezer, etc. Entry as follows:
Stock of Freezer (Marketing Stores Location) A/c Dr.
To: Customer / Sub Dealer A/c. (Consignment)
(Cost Re.1/-)

9. To monitor Inst, the following entries in finance book propose.

a)
On receipt of CV, all Vouchers account and amount paid. Entry as follows:
Customer Inst. Advance A/c. Dr.
To Cash A/c.
(Cost / Agreed price)
Future collection of cash as First lump sum advance, installment and final payment stopped. All
cash collection through CPV and amount will be recovered from Customer main account which
will be adjust in incentive / claims.

Once customer Inst account created, in SAP we have to create recurring entry and schedule the
installment based on recommendation by Marketing. Entry as follows:
 Customer Main A/c. Dr.
To: Customer Inst Advance A/c.
(Monthly Inst.)
Recurring entry to be run as per schedule dates on a monthly basis.

Finally we request you to keep this customer Inst advance group under debtors which we may able to
avoid easy identification of process flow happening by others. Request IC to explore whether recurring
entry has possible from Customer to Customer account.

(or)
b)

If we are not possible to post recurring entry from Customer to Customer , then our serial number 09
entry to be change as follows:

On receipt of CV, all Vouchers account and amount paid. Entry as follows:
Customer Inst. Advance A/c. Dr. (GL Account)
To Cash A/c.
(Cost / Agreed price)

Future collection of cash as First lump sum advance, installment and final payment stopped. All
cash collection through CPV and amount will be recovered from Customer main account which
will be adjusted in incentive / claims.

Once customer Inst account created, in SAP we have to create recurring entry and schedule the
installment based on recommendation by Marketing. Entry as follows:

Customer Main A/c. Dr.

To: Customer Inst Advance A/c. (GL Account)
(Monthly Inst.)

Recurring entry to be run as per schedule dates on a monthly basis.