Sr.

No Flow Name Department Prepared By Design By

Mr. Pankaj Agrawal
7 Purchase Booking Finance & Account Mr. Sunil Lathar
Mr. O.P. Saini

Purchasing Item

Non Inventory Item Inventory Item Inter Unit – Stock Transfer

Receive the Bills /

invoice for Material Imported Item Domestic Item
Received from store

Receive data from

store (vendor name ,
Check for Receive the Bill of
Purchase Amt, Bill No,
Service Tax/TDS / entry, invoice and
Bill Date,) using IP
other taxes fright for Material
package.
Applicable Received at store

Import Data into Tally

Prepare voucher for material received

For Accounting Transactions Continue …

Non - Inventory Import Domestic
Dr :: Expense Head Dr :: Raw Material/ Dr :: Raw Material / onsumable
Dr :: Job Charges Consumable Dr :: CENVAT/Cess Recoverable
Dr :: Service Tax Recoverable
Dr :: CENVAT/Cess Recoverable
Dr :: Company Contribution To ESI
Cr :: Domestic Supplier
Cr :: Domestic Supplier Cr :: Foreign Supplier Cr :: Stores / Imprest Account
Cr :: TDS Cr :: Freight and Custom
Cr :: ESI Cr :: Clearing Charges
Cr :: Stores Imprest fro Octroi
Paid) Cr :: Stores / Imprest Account

Inter unit stock receipt

(Invoice) Inter unit Expense /Debit
Dr:: Material receipt – Unit Note
/Raw material/Consumable/ Dr:: Traveling/Suppliers/Job
/S.F Dials/Asset Charges
Dr:: Job Charges Cr:: Unit A/C
Dr:: CENVAT recoverable

Cr:: Unit A/C

Cr:: Store Imprest ( fro Octroi
Paid
 Sr. No. Flow Name Department Prepared By Design By
Accounting for Miscellaneous Mr. Pankaj Agrawal
11 Finance & Account Mr. Sunil Lathar
Income Mr. O.P. Saini

Type of
Miscellaneous Income

Scrap, Packing Material Duty Entitle Pass Book

(DEPB)

On Credit Cash
Sale
Type
Dr :: Freight / Custom
(Provision)
Cheque
Cr :: DRPB

Dr ::Client Dr ::Bank Dr :: Cash

Cr :: Misc. Income Cr :: Misc. Income Cr :: Misc. Income

Cr :: Sales Tax / VAT Cr :: Sales Tax / VAT Cr :: Sales Tax / VAT
 Sr. No Flow Name Department Prepared By Design By
Mr. Pankaj Agrawal
10 Sales Booking Finance & Account Mr. Sunil Lathar
Mr. O.P. Saini

Sale Type

Actual Sample Inter Unit

Domestic Export Job Work Scrap Reprocess

Receive Receive Invoice from Dispatch Dept.

Invoice/bill
from
Dispatch
Department

Receive Invoice/bill
/Shipping bill/ GR
Form, AWB from Note: Not to be treated as sale, Note: Not to be treated as sale,
Dispatch Department only excise duty booked as to reduce from net material
expense consumption

Check accuracy for taxes

Prepare voucher in tally

For Accounting Transactions Continue …

Domestic Export Sample Invoice

Dr :: Client (Domestic Debtors) Dr :: Client (Export Debtors) Dr :: Excise duty Paid

Dr :: Commission / Discount
Cr : Sales Domestic Cr : Excise duty PLA
Cr : Excise duty PLA Cr : Sales Export
Cr :: Cess on CENVAT Cr :: Insurance
Cr :: CST/VAT Cr :: Freight
Cr :: Insurance Cr :: Commission Payable
Cr :: Freight
Amount to be checked
(Foreign Currency as well as INR)

Inter Unit Scrap Re-Process sale

Dr :: Unit Dr :: Client (Debtors) Dr :: Client (Debtors)

Cr :: Material transfer to Raw Cr :: Misc. Sale Cr : Sales Re-Process

Material Cr :: Excise duty PLA Cr : Excise duty PLA
Cr :: Material transfer to Cr :: Cess on CENVAT Cr :: Cess on CENVAT
Consumables Cr :: CST / VAT Cr :: CST/VAT
Cr :: Material transfer to SFD Cr :: Freight Cr :: Insurance
Cr :: Excise duty PLA Cr :: Freight
Cr :: Cess on CENVAT
 Sr. No Flow Name Department Prepared By Design By
Mr. Pankaj Agrawal
1 ExpenseS Booking Finance & Account Mr. Sunil Lathar
Mr. O.P. Saini

Expense Types

Employee Direct Expense Advance Imprest Provision

Salary/wages Reimbursement
Dr :: Advance Imprest Dr :: Expense

Cr :: Cash / Bank Cr :: Expenses Payable

Salary/wages Provision Dr :: Expense

Dr :: Salary Cr : Cash / Bank

Dr :: Wages

Dr :: Expense
Cr :: PF
Dr :: Pre-Paid Expenses
Cr :: ESI
Cr :: TDS
Cr :: Cash / Bank
Cr :: Advance
Cr :: Imp rest
Cr :: Imp rest
Cr :: Pre-Paid Expenses
Cr :: Other Misc. Deduction
Cr :: Loan Account
Cr :: Salary Wages Payable Account
Dr :: Salary Wages Payable

Cash Cr :: Cash

Payment
Dr :: Salary Wages Payable
Type

Cr :: Bank
Bank
Sr. No Flow Name Department Prepared By Design By
Mr. Pankaj Agrawal
8 Payment of foreign vendor Finance & Account Mr. Sunil Lathar
Mr. O.P. Saini

Payment to Foreign Vendor

Take printout of outstanding invoice

Check for fund availability

Get Authorization for payment

Inform the payee bank

Mode of remittance
- Vendor bank A/c Details

Receive Bank statement /debit advice

Prepare payment voucher

Dr - Vendor A/c

Cr - Bank A/c
Sr. No Flow Name Department Prepared By Design By
Mr. Pankaj Agrawal
9 Payment of domestic vendor Finance & Account Mr. Sunil Lathar
Mr. O.P. Saini

Take printout of outstanding

invoice

Check for fund availability

Get Authorization for payment

Prepare payment voucher

Send cheque/payment via

bank to vendor /supplier

Dr - Vendor A/c

Cr - Bank A/c
Sr. No Flow Name Department Prepared By Design By
Mr. Pankaj Agrawal Mr. Sunil
2 Payment for Utilities Finance & Account
Mr. O.P. Saini Lathar

Take printout of bill

payable

Verifying the accuracy of

amount

Check for fund availability

Get Approval/authorization
for payment

Prepare payment voucher &

cheque

Cash Bank
Mode
of
payme
nt

Payment to vendor /service Send cheque/payment via bank

provider to vendor /service provider

Dr - Vendor A/c

Cr - Bank A/c
Sr. No Flow Name Department Prepared By Design By
Mr. Pankaj Agrawal Mr. Sunil
3 Payment for Taxes Finance & Account
Mr. O.P. Saini Lathar

Excise/CST/VAT/TDS/ESI/PF

In the First week of every

month Or 4 days before
due date of Payment

Calculate the liability

Funds No Arrange funds

Available?

Yes

Prepare challan &

supporting docs for return

Deposit to the bank

Prepare voucher

Enter challan no in books

Sr. No Flow Name Department Prepared By Design By
Mr. Pankaj Agrawal Mr. Sunil
4 Payment of Advances Finance & Account
Mr. O.P. Saini Lathar

Receive Application

Check O/s
recoverable/receivable &
note the same on
application

Decide
repayment/adjustment

Seek Approval

Prepare agreement/
documents

Prepare voucher & cheque

Handover cheque &

covering letter

Get the acknowledgement

and file it.
Sr. No Flow Name Department Prepared By Design By
Mr. Pankaj Agrawal Mr. Sunil
5 Bank A/c Reconciliation Finance & Account
Mr. O.P. Saini Lathar

Get the bank statement

Enter cheque clearing date in

Tally
For Credit in Bank statement

Enter cheque payment date in

Tally
For Debit in Bank statement

Summarize the remaining entries

Prepare voucher/debit/credit note

for bank charges, other
payments/collections

Prepare BRS
Sr. No Flow Name Department Prepared By Design By
Domestic Debtors Mr. Pankaj Agrawal Mr. Sunil
12 Finance & Account
Collections Mr. O.P. Saini Lathar

Send outstanding invoice details

to Customers

Send reminders(if necessary)

Receive payment advice from

Customer/Bank

Cheque Mode of Bank Transfer/T.T

Payment

Verify Payment advice for Verify our books for

accuracy of invoice amount confirmation of amount due

Contact for reasons for

short/excess remittance (if any)

Update the debtors A/c

Post voucher

Deposit Cheque to the bank

Sr. No Flow Name Department Prepared By Design By
Mr. Pankaj Agrawal Mr. Sunil
6 Scrap Disposal Finance & Account
Mr. O.P. Saini Lathar

Decide scrap to be disposed off

Call for quotation/ tender

Decide the customer

Raise invoice

Post voucher

Receive Cheque/cash payment

Sr. No Flow Name Department Prepared By Design By
Vendor/customer/inter- Mr. Pankaj Agrawal Mr. Sunil
14 Finance & Account
unit reconciliation Mr. O.P. Saini Lathar

Get statement from other

unit/vendor/customer

Tick off the entries outstanding in

our books

Summarize pending issues

Confirm pending issues & take

the approval for book adjustment

Prepare J.V. & post

Send balance confirmation to

other unit/vendor/customer
Sr. No Flow Name Department Prepared By Design By
Foreign Customers Mr. Pankaj Agrawal Mr. Sunil
13 Finance & Account
Collection Mr. O.P. Saini Lathar

Send outstanding invoice detail to Dr :: Bank All

agent / customer Dr :: Exchange rate fluctuation (For Loss)
Dr :: Bank Charges

Cr :: Customer
Follow up agent / customer (if Cr :: E.R.F. ( For Gain)
necessary)

Get detail of remittance from

agent / customer

Advice bank about T.T. remittance

& give invoice & FOBC details

Follow up with the bank For T.T.

Credit

Receive Payment advice / bank

statement / bank advice of
collection

Calculate exchange rate

fluctuation

Post the Receipt