SYSTEM STUDY DOCUMENT

BEAMS IMPREST MODULE

BEACONHOUSE SCHOOL SYSTEM
Presented by
BSS ERP & Finance Department
 Table of Contents
OVERVIEW ................................................................................................................... 1
BRANCH IMPREST PROCESS .......................................................................................... 2
BUDGET PREPARATION ............................................................................................................................ 2
BUDGET RELEASE ................................................................................................................................... 2
EXPENSE BOOKING AT BRANCH LEVEL ........................................................................................................ 2
FINANCIAL ANALYST REVIEW .................................................................................................................... 2
ETL PROCESS & UPLOADING IN ERP .......................................................................................................... 2
FINANCIALS ........................................................................................................................................... 3
MAJOR TRANSACTIONS - SUMMARY ........................................................................................................... 4
VENDOR PROCUREMENT PROCESS ............................................................................................................. 5
MASTER DATA MAINTENANCE....................................................................................... 6
CHART OF ACCOUNTS ............................................................................................................................. 6
NATURAL ACCOUNT LEVELS/SUB-SEGMENTS .............................................................................................. 6
JOURNAL CATEGORIES............................................................................................................................. 6
BEAMS FORMS & FUNCTIONS ........................................................................................ 7
IMPREST BILL/ CASH PAYMENT VOUCHER ................................................................................................... 7
BANK PAYMENT VOUCHER ....................................................................................................................... 7
BANK RECEIPT VOUCHER- FUNDS RECEIVING .............................................................................................. 8
JOURNAL VOUCHER ................................................................................................................................. 9
VOUCHER POSTING................................................................................................................................. 9
REPORTS .................................................................................................................... 10
ANNEXURE II........................................................................................................................................ 11
 BEAMS IMPREST MODULE – SYSTEM STUDY

OVERVIEW

Beaconhouse School System is currently using ERP at head office & regional offices but in
branches still using in-house developed management information systems ‘BEAMs’ to
assist and regulate the day-to-day business activities and to monitor the flow of information
throughout the business process. Although BEAMS is not fully integrated with ERP, yet it
provides the necessary information to monitor and control the branch operations.
Now management has decided to replace BEAMs with ERP for standardization & full
integration of account functions. It will also provide real time information for timely
decisions.

To have a initial study of the current system at branch level, HO ERP team conducted
branch visits as per following schedule:

Branch visits
Region SGO Code Branch Name Visit Date
Beaconhouse Liberty Tuesday, August 16,
BCR SGO 4 13216
Campus 2016
211 - Garden Town Campus- Thursday, August 18,
BCR SGO 3 13215
Lhr 2016
Monday, August 29,
BNR SGO 1 14212 321 - Senior Branch RWP
2016
311 - Margalla Campus-Isd, Tuesday, August 30,
BNR SGO 3 1,521,415,211
302 - BMI A-Level 2016

System study document was completed on 7th September 2016.

Basic process and system understanding is summarized in the following paragraphs

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 BEAMS IMPREST MODULE – SYSTEM STUDY

BRANCH IMPREST PROCESS

BUDGET PREPARATION

Branch prepares monthly budget for Hyperion according to pre-defined budgetary

parameters. SGO reviews & approves the same and forwards to ROC for further
processing. RO refines according to the allocated limit of budget and forward to the HO.
HO approves after certain refinement. Once branch budget is approved in Hyperion then
it is locked for changes. Normally budget activity is carried out during the month of April
& May every year.
Once approved branches enter the same monthly budget in BEAMS for variance analysis.
Branches study these analyses and make their control plans for any significant variances

BUDGET RELEASE

Based on monthly budget limit, HO releases the payment directly to the branches in start
of the month.

EXPENSE BOOKING AT BRANCH LEVEL

Branches transact all transactions during the month and completes their transaction by the
10th to 15th of proceeding month.

FINANCIAL ANALYST REVIEW

Financial analyst (FA) review the monthly transactions and make adjustments, if requires.
Basic control is budget Vs actual comparison. FA consider following major adjustments,
where required;
 Head of accounts correction
 Proper expense booking (especially against advance payments)
 Budgetary adjustments (Actual Vs Budget comparison)
FA review takes 2 to 3 days

ETL PROCESS & UPLOADING IN ERP

Once the FA is satisfied with the monthly transaction, he/she gives go head for ETL
process. ERP personnel at head office extracts the data from BEAMS and same is uploaded
to ERP.

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FINANCIALS

Once all ETL processes including branch Imprest and all other regional transactions are
completed then ERP period is closed for reporting.

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MAJOR TRANSACTIONS - SUMMARY

List of transaction types along with their document types is given in I .

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VENDOR PROCUREMENT PROCESS

At each branch, purchase committee is constituted consisting of two teachers & one
accountant. Payments for following expenses are approved by the purchase committee &
school head;

a. Printing & stationery expenses

b. Repair and maintenance expenses
c. Paint work
d. Crockery items
e. Functions expenses
Following process in normally followed for all payments to vendors

Approval Limits

Sr # Transaction Type Approver 1 Approver 2 Approver 3

1 Payments ≤500K School Accountant Branch Head
2 Payments > 500K Branch Head SGH RMA/RDC

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MASTER DATA MAINTENANCE

 Supplier master data - on average 15-20 suppliers for each branch
 Banks master data (one or max two bank accounts per branch)
Transactional Data
 Monthly budget data (only budget Vs actual comparison, no budgetary controls)
 Check wise payments (manual entry)
 WHT payments (Manual entry)

CHART OF ACCOUNTS
Chart of account structure in general ledger comprises of the following three segments:
 Company - 02 digits, numeric
 Natural Account - 10 digits, numeric
 Branch - 03 digits, numeric

NATURAL ACCOUNT LEVELS/SUB-SEGMENTS

The natural account segment is further sub-divided into following levels/sub-segments:
- First level 2-digits (Parent account e.g Asset/liabilities/expenses/incomes)
- Second level 2-digits (Child account e.g. Admin Expense etc.)
- Third level 2-digits (Child account e.g R&M/ Stationery)
- Fourth level 4-digits (Entry Account e.g. Building R&M)

Admin. Building
Expens R&M
e

Complete example 60-01-05-0013 - Building Repair & Maintenance

Expense Admin
Head R&M

The values in above said levels of natural account segment are appearing in a parent-child
hierarchy and each child value is dependent on the related parent value in the preceding
level of hierarchy.

JOURNAL CATEGORIES
Journal categories are defined in the General Ledger for the appropriate classification of
accounting events and transactions, ease of understanding and better financial and
management reporting. These categories are defined according to the nature of
transactions and related reporting requirements.
User selects appropriate process type against which relevant Journal Category is
automatically populated and the entry is made into the system. In following sections, each
category is explained in dtail.

Voucher types are given in Reportssection

List of transaction types along with their document types is given in I .

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BEAMS FORMS & FUNCTIONS

IMPREST BILL/ CASH PAYMENT VOUCHER
Imprest Bill form is used for the entries of the day-to-day expenses from the petty cash
that is maintained at a certain level by branch accountant, usually Rs.10,000. This fund is
used for all the petty expenses of the branch. Branch accountant posts vouchers for all
the expenses in the Imprest Bill form.
Branch accountant creates and posts the vouchers himself and only a manual approval
from the branch head is received.
Expense Account /Employee Account Dr
Cash in Hand Cr

Imprest Bills created in the system are serially controlled. Month wise serial are generated
by the system.

BANK PAYMENT VOUCHER

This voucher type offers different categories of payments that the accountants can use
based on the type of entry they have to post. Each category has different types of fields
for entry showing the requirements of relevant particulars necessary type of transactions.
Bank Payment Vouchers created in the system are serially controlled on monthly basis.
System generated serial number is assigned to each entry.

The functions and processes of all the categories are as follows

 Category 1 – Bank Payments

This form is similar to Imprest bill and is used for the majority of the payments. However,
these payments are made through bank cheque instead of cash unlike Imprest bill.
All the expenses apart from the petty cash are posted in this form.
The user has to select a bank account from drop down menu in one line with a credit
amount and then in the second line the user chooses the supplier account or expense
account with a debit amount relevant to the entry.
Expense Account / Supplier Account Dr
Bank Account Cr

An entry can only contain a supplier or an expense account Due to this imitation the bank
payments can be directly charged to the expense account without using a supplier
account. This decision is at the disposal of branch accountant whether he uses a supplier
account or not. As per the current practice users only make payments using a supplier
account for regular vendors only.

A journal voucher is posted against the payments made to suppliers to charge the
relevant expense account.

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 Category 2 - Cash Withdrawal from bank

This is a cash withdrawal entry used to maintain the cash for the petty expenses of the
branch.

At the day end the petty cash limit has to be maintained or whenever needed, the branch
accountants posts an entry in this form and withdraws cash as per the requirement.

Cash in hand Dr
Bank Account Cr

 Category 4 - Advance Payments

This form caters all the advance payments made from the funds to the purchase
committee, a requester (any employee) or a vendor. The approval form for employees is
a manual request form approved and signed by the branch head.
Employee and vendors are created by the branch accountant for transactions entry.
Supplier Account/Employee Account Dr
Bank Account Cr

The expense is booked by posting a journal voucher when the bills are actual received
against the funds disbursed by the branch accountant.
 Category 5 - Reimbursement Expenses

All the expenses that are incurred by the branch but ultimately borne by the SGO,
Region or HO are posted in this form.

This entry can be a cash payment or a bank payment. Branch accountants use this form to
charge the account of ultimate bearer of the expense. The expense account is not
charged by the branch accountant but the party who will ultimately bear the expense.
Bank is credited with the payment amount and same amount is debited to the
recoverable account of the relevant party who will ultimately reimburse the amount paid.
Reimbursement account – SG/RO/HO Dr
Bank Account Cr

When amount is reimbursed from SO/RO/HO, branch accountant enters following entry;

Bank Account DR
Reimbursement account – SG/RC/HO CR

BANK RECEIPT VOUCHER- FUNDS RECEIVING

This form is used for all the receipts by the branch. The most common type of receipt are
the budget funds received by the branch at the start of every month or in the case of BPS
Owned branches the R&M received by the branches at the start of the month.

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The bank account is chosen in the line item with a debit amount of funds received and a
second line of HO/Region with a credit amount.

Bank Account Dr
Regional Office Advance Cr

Funds receiving account of HO/Region in the branch’s trial shows an accumulated credit
balance for all the funds they have received to date.

JOURNAL VOUCHER

This is a free format form which is used by the branch accountant for expense
booking/writing off all the supplier accounts and advance payments against all the
payments made to anyone.
The current practice of the branch accountant involves using bank payments for all the
payments and JV for writing off expenses against all those payments.
At the time of vendor payments (BP):
Vendor/Employee Account DR
Bank Account CR

At the time of expense Booking (JV):

Expense Account DR
Vendor/Employee Account CR

In the JV form there is no restriction on whichever account is debited or credited. It is

solely dependent on the branch accountant as to whatever account he can debit or credit
through a JV.
Journal Vouchers are also serially numbered on monthly bases.

VOUCHER POSTING

In Voucher entry form all the vouchers are created and there is a different window for
posting vouchers where all the unposted vouchers are shown however the accountant is
posting all the Vouchers himself and only a manual approval on the printed JV is
received after the JV is posted in the system.

After posting of all vouchers in the ledger, branch accountant and financial analyst can
view the different reports like vendor accounts, trial balances & actual Vs budget
comparison reports for their workings.

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REPORTS
Following vouchers are generated from the System are:
 Voucher –Bank Payment Voucher
 Voucher –Bank Receipt Voucher
 Voucher – Cash Payment Voucher1
 Voucher – Cash Receipt Voucher1
 Voucher – Journal Voucher
Following reports are used for different purposes:

Sr # Reports Name
1 Imprest Bill detail
2 Voucher printing
3 Summary statement
4 Summary Voucher
5 Expense payable summary
6 Expense payable summary Voucher
7 Ledger
8 Trial Balance
9 Variance Sheet
10 Budget Sheet
11 Chart of Accounts
12 Items list

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ANNEXURE II
List of transaction types along with their document type

Voucher Type Nature of transaction Frequency

Supplementary salaries
Utility Bills
Administrative Expense
Student Expenses
Govt. taxes
School Maintenance expense
BP Daily
Vehicle maintenance expense
Equipment maintenance
Furniture repair n maintenance
Staff training
Legal & professional expense
Financial charges
For petty expenses
CP Employee fuel/expenses adjustments Daily

(Normally these are booked through IMP voucher)

Registration fee for Board & CIE
Registration fee for any academic competition
Budget receipts
BR Advances from ROC Daily
Unutilized amount of advances to staff
EOBI Cheque
Fuel receipts
British Council exam fee
CR Cash from students for functions Daily

Adjustment
JV Corrections Monthly

Imprest JV
IMP Payment to employees for mis. expenses Monthly

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