traffic accounts-its importance

Traffic Accounts-Its Importance

Role of Railways

Transportation Business- Service Sector

Different from other Service Sectors.

Dual Role Commercial- Profit motive

Social Obligation

Features

IR single largest National Carrier.

Moves 18 mn. Pass. 2 mn. tonnes daily.

IR has 6,909 stations over a total route length of more than 63,327 kilometers.

Features

Provides Cheap and clean Transport.

Best Suited for Bulk Commodities.

Provides better economies of scale.

Pricing Policy

Principles of Charge

What Traffic Costs.

What Traffic Can Bear.

Pricing Policy

Commodities grouped into Classes.

Rate charged based on

Class-T/L, W/L Rate.

Distance- Shortest Route, Telescopic Benefit.

Pricing Policy

Limitations

Seasonal Variations

Regional Variations.

Empty Flow in Return Direction.

Dynamic pricing

Dynamic pricing is basically a play of supply and demand factors and the influence of seasonal and regional skews in the economy.In the unorganized sectors, this is in vogue from olden days and successfully implemented in other organized sectors esp., in the air travel industry and road transport.

Dynamic pricing

Seasonal Variation- BSS, Surcharge on Transportation Products, Incentive Schemes.

Regional Variation- Enhanced Loadability-CC+8, CC+6 routes

Empty Flow- Grant Incentive on pre-identified routes

Role of Accounts

Dual RoleFinancial Advice Book Keeping

Expenditure Earnings

Con/Stores/Genl. Traffic Accounts

Traffic Accounts-Role

TAO

Budget

I.Audit Books I.Check Tfc.Fin.

Earnings Budget

Exercise similar to Exp.Budget.

Pass. & Other Coaching- Commercial Br.

Goods- Operating Br.

Sundry- Accounts Br.

Principles Of Check

Person to whom service rendered paid correctly. Person who received the amount remitted correctly.Apportionment of Earnings.

Role of Staff

Watch accountal.

Conduct Audit on Returns/Statements.

Section(s) under Coaching and Goods. Results of Check- AIC, E/Sheet.

Role of Staff

Knowledge/Update of C.Circulars.

Prevent leakage of Revenue.

Limitation - volume of Transactions

Role of TIA

Friend, Philosopher and Guide.

Periodic Inspection of Station(s).

Checks Initial Records at Station.

Accountal of Earnings

Traffic Book- Part A,B,C and D.Apportionment- Goods &Coaching Ergs.

Share/Credit for Org/Term. /Cross Tfc.CAS-Centralized Apportionment System

Done by RITES/NDLS. C.Rly. Co-ordinates

APPORTIONMENT

GoodsBased on Tonnage and Dis.Carried.Terminal Cost- at each end-

other than coal- Rs.31 per Tonnee Coal- Loading Rly.-Rs.45 per Tonnee

Destination Rly.- Rs.31 per Tonnee Diversion Debits- Claim when Frt. >10Lakhs per Rake and more than 1 Cr.

APPORTIONMENT

CoachingPassenger- 5% for Org.Railway.balance distance leg wise.Parcel- Based on peak period(II period)BPT- Pre-fixed %

Traffic Suspense

Based on Commercial Accting Principle.

03 components-SOS, AOB, CIT.

Internal Check

Refunds-

Freight,

Wh.Chgs/D.Chgs Rebate Bills

C.Claims- Pass.Accident, Ft.C.Cases

TRAFFIC FINANCE

Proposals are under

Coaching – Halts, TBAs,RTSA,GTBS etc;

Other Coaching- SLRs, Parcel Van etc; Goods- Incentive Schemes etc;

Dynamic pricing

I/ scheme for inc tfc. In L.Season.

LTSIS

I/scheme for TEFD —Sidings & G. sheds

Incentive schemes for Frt. forwarders.

Traffic Accounts

New ConceptsDaily Billing E-PaymentMaintenance Charges RMC as Rev.Traffic

E-Payment

A web-enabled 24x7 facility Works through the State Bank of India secure payment gatewayFunctional FOIS Terminal essentialLinked through TMS (Terminal Management System) of FOIS, managed by CRIS

OPERATION OF E-PAYMENT

Railway and Party have account in the same Nationalised BankSiding clerk with access to TMS can instantly debit party’s account and credit Railway’s account to the extent of value of RROn getting confirmation, E-RR can be generated

SECURITY FEATURESTMS will ensure that E-RR is not exceededCommand for collection of freight shall contain complete RR details, Bank and LC detailsBank’s confirmation will be in encrypted form with all detailsTMS will display Confirmation Message to operatorE-RR shall contain Transaction ID, Time, Customer Code, LC No., Party’s and Railway’s Bank details etc.

REPORTS AND CHECKS

Bank shall generate a Daily List of TransactionsSystem (FOIS interface) shall generate each day e-Log- E-RR shall also be treated as Bank Challan

E-PAYMENT – Advantages

Hassles of payment by Demand Draft avoided

Commission charges

Transmission to loading point

Refund of rounded-off freight c/o to next month

Better liquidityCNCC : Bank Guarantee equal to 15/7 days freightWOC : Cash Deposit equal to 20 days freightE-Payment : LC equal to 5 days freightA 24x7 facility: Instant information on Fund Balances

Savings in Man Power for all 3 parties to the Agreement

FREIGHT PAID THROUGH

CASH/DD/FCN

DEPOSITED IN LOCAL BANK THROUGH CR NOTE (BANK

CHALLAN)

DETAILS RECORDED IN CR NOTE

DEALT AS PER PROCEDURE IN VOGUE

SENT TO CASH OFFICE .

DEPOSIT IN BANK

DEPOSIETD IN LOCAL BANK THROUGH CR NOTE (BANK

CHALLAN)

SENT TO CASH OFFICE DEPOSIT

IN BANK

BANK CHALLAN IN TRIPLICATE AMOUNT CREDITED TO

RAILWAY ACCOUNT RBI/NGP THROUGH FOCAL POINT BANK

1. BANK COPY2. STATION COPY3. CASH OFFICE COPY(SENT ALONG

WITH CR NOTE)

AMOUNT ENTERED IN CASH BOOK SENT TO BOOKS SECTION ALONG WITH BANK

CHALLAN

BOOKS SECTIONAMOUNT TAKEN AS

DEBIT TO RIB SUSPENSE HEAD

CREDIT SCROLL SENT TO RAILWAY (BOOKS SECTION)

BY FOCAL POINT BANK ALONGWITH BANK CHALLAN 9SYSTEM GENERATED FOR E-

Payment)

BOOKS SECTION BANK CHALLAN RECEIVED

AMOUNT TAKEN AS CREDIT TO RIB SUSPENSE

HEAD.

E - PAYMENT

PROMPT SENT THROUGH

CRIS TO BANK SERVER

DEBIT CUSTOMER’S ACCOUNT

CREDIT POOLING ACCOUNT

AMOUNT TRANSFERRED TO RAILWAY DEPOSIT ACCOUNT

AT THE END OF THE DAY

AMOUNT CREDITED TO RAILWAY

ACCOUNT RBI/NGP THROUGH LOCAL

FOCAL POINT

RR GENERATION IN QUADRUPLICATE

CUSTOMER COPY (RR)

ACCOUNTS COPY

ACCOUNTS COPY (SENT TO

TAO)

CONFIRMATION REGARDING TRANSFER

STATION RECORD

THANK YOU