finance sop - van sales - axiom easy sales... · sales uploading. stock counter conduct the count,...

Ver: 2.1

2. Scope

Van Sales

AT/F/PR 07 Date: 07/2012

1. Objective

The objective of this procedure is to describe all the activities associated with handling the

accounts of Van Sales

The scope of the activities defined in the procedure is applicable to the Finance Department of

Axiom Telecom UAE

3. Inputs

• Sales / Stock Reports from HANDHELD System (PDA portal)

• Schedule

• Aging report

4. Hierarchy and responsibility

Finance

Manager

Receivables

Manager

Credit

Controller

Senior AR

Accountant

Recon

Accountant

Receivables

Accountant

Cashier

Stock counter

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Van Sales

AT/F/PR 07 Date: 07/2012

5. Requirements

KPI:Activity : Pre-activities Requirements Customers set up in system

Manual Invoice (only used when it is not possible to

issue invoice using the HANDHELD)P.O.S. (Handheld)

- Define Customer in ERP

- Define Site in ERP (each customer should be linked

to particular site).

- Define Customer in ERP

- Define Site in ERP

- Update (Synchronize) in the Handheld

• If Customer with Credit:

Credit limits/ credit in days to be recommended by Channel Manager, reviewed by Country Finance

Manager and should be approved by Country VP in charge.

Update of the credit terms in the ERP by credit controller upon receiving the official documents and

credit application

• Customers paying by cheques will be considered ‘Credit Customers’ and limits need to be set initially

since cheques take 2-4 days to be collected (in addition to bouncing back risk).

Bouncing cheques

When cheque bounced back; credit limits should be stopped (will be blocked in Handheld), and

payment collection transfer customer to cash, or VP approval

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Van Sales

AT/F/PR 07 Date: 07/2012

6. Activities

KPI:

Input /

ReferenceProcess Sequence Process Step Responsibility

Record

Generated

Deliver Cage to warehouseSales Rep/

Security

(Handheld

Interface)

Sales Rep to put the HANDHELD on the

docking station to synch with system

(download daily sales data and update

the inventory) start data interface and

Day End Process. In Case of manual

invoice due to data problem, correction

should be in same day in coordination

with IT maximum by next day morning.

Sales Rep

Day End

Process and

data transfer to

ERP

Customer wise

sales report

(HANDHELD

Interface)

Customers Wise sales Report with copy

of all sales invoices done including

details of collections done (cash and

cheques)

Sales Rep /

Cashier

Customer wise

sales report -

HANDHELD

system

(HANDHELD

Interface)

Confirm from manual invoice book that;

all the invoices have been captured (from

customer account in the system) to

insure that no manual invoice is still

pending (in case of any pending - to be

listed in the

daily reconciliation)

Cashier

Customer wise

sales report with

copy of all

invoices

attached with

the actual cash

and chqs

received

Customer wise

sales report with

support

Sales Rep to do the daily sales process

the cashier

The sales rep will submit the customer

wise sales report + detailed support

(invoice copies) + daily collections +

details of manual invoices and other

issues that could not be solved in the

same day + reconciliation (if required)

Sales Rep /

Cashier

Customer wise

sales report with

support

Activity : Daily Collection (1)

To ensure On-Time & Correct

payment collection from van sales

reps.

Activity Decision Review and approval

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Van Sales

AT/F/PR 07 Date: 07/2012

KPI:

Input /

Reference Process Sequence Process Step ResponsibilityRecord

Generated

Customer wise

sales report with

support

Upon receiving the amount & cheques,

Cahier will approve Customers Wise

sales Report based on the credit

available.

Cashier

Customer wise

sales report with

support

Hand over Sales

rep to Cashier

Sign and stamp (dated stamp) the above

report as proof of receiving the money &

documents.

As proof of handover of all cash and

cheques from Sales rep to cashier, one

copy to be kept with Sales Rep and the

other with accounts.

Issue document listing all cheques

received from the Sales Rep (list of

cheques received & customer name

signed by Sales rep to be able to track

bounced cheques).

Cashier will fill all details of van wise

customer wise sales report on the

consolidated sales report sheet. This will

be the summary daily sales report having

all required details to be submitted end of

the day from Cashier to Receivables

Accountant

Place cash and cheques in cashier safe.

Cashier

Customer wise

sales report with

cash and

cheques details.

Signed with two

copies one with

sales rep and

the other for

accounts + list

of cheques

received by

Sales rep

signed.

Customer wise

sales report (for

each van sales)

and the daily sales

report

Repeat above process for each van

sales repCashier /

Sales Rep

Customer wise

sales report and

the Daily sales

report (including

customer wise,

van wise sales

and collections

of cash and

cheques for the

day)




reps.


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Ver: 2.1

Van Sales

AT/F/PR 07 Date: 07/2012

KPI:

Input /


Generated

Daily sales report

with support

(customer wise

sales report +

cheques and cash)

Cashier to send the Daily sales report

(excel) to the accountant and hand over

the cash and cheques to the accountants

Cashier /

Receivables

Accountant

Daily cash

collection report

Cash & cheques

entry in system

Process AR receipts according to

payment mode per customer per van.

(For cash , to be processed as one batch

for all customers/ vans of that area &

receipt reference will be money receipt

voucher #s)

(For cheques , the receipt number will

be the cheque number with money

receipt voucher #).

Return the cheques to the cashier for

storing and deposit

Receivables

Accountant

ERP Applied or

Unapplied

Receipt Voucher

Report

Receipts notes to

match respective

invoices

Process Receipt Summary Report to

recall receipts voucher and apply it with

related invoices

Receivables

Accountant

ERP Summary

Receipts Report

& Applied or

Unapplied

Receipt Voucher

Report.

Prepare cheques deposit as per bank

standard rules of deposit

(i.e. one deposit = for several cheques

listed per available fields, )

CashierBank deposit

Slip

Cash & Cheques

with the deposit

slips

Deposit the money in the bank. The bank

deposit slip is kept with accountant as

proof of deposit, and attached to the

Daily sales report (excel)

Note: Cash and cheques to be handed

over to bank collector wherever the

facility is available and as per the

process agreed with the bank

Cashier /

Collector

assigned by Bank

Bank deposit

Slip




reps.


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Van Sales

AT/F/PR 07 Date: 07/2012

KPI:

Input /


Generated

Once online banking shows money

realized; clear the receipt from cash

management.

Receivables

Accountant/ Bank

Recon Accountant

Bank GL

account is

updated & cash

management is

cleared

In case of out

station receivables

accountants

Forward the support documents (daily

sales report on excel + customer cheque

list + Applied & Unapplied Receipt

Voucher Report + Bank deposit slip)

Senior Receivables Accountant for

review & approval.

Receivables

Accountant/

Senior

Receivables

Accountant

Journal voucher

of posted bank

deposit entry +

Excel reports +

receipt voucher

reports.

Internet banking

could be used

for verification .

Discrepancy (Cash

Shortage)

In case of cash shortage found & verified

while cash is being collected from Sales

Rep, Cashier to inform the Van Sales

Supervisor prior to handover.

After that; the form will be signed by both

the Cashier & the Van Sale Supervisor

mentioning the discrepancy found &

obtain the Sales Rep signature as proof

of shortage.

Note: Credit Controller / Country Finance

Manager to be informed first thing in the

morning .

Cashier/

Van sale

Supervisor

Discrepancy

signed;

E-mail to Credit

controller/

Country Finance

Manager.

Discrepancy

(Bounced Cheque)

In case any cheque bounces, inform the

Sales Rep/ Van sale Supervisor to take

necessary actions.

When a cheque bounces, the

reimbursement will be done by cash only

and not by cheques.

Also, any sales in excess of credit limit

will be on cash basis only, or else

approval from VP should be obtained

before the sale takes place (on credit)

Receivable

Accountant /,

Sales Rep &

VP




reps.


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Van Sales

AT/F/PR 07 Date: 07/2012

KPI:

Input /


Generated

Receivable reconciliation done for all

payment received on daily basis for any

reconciliations + Confirm van receivables

accounts nullified

(Preparation of all ERP entries and

receipts)

Receivables

Accountant/

Senior

Receivables

Accountant

Reconciliation

Report

Credit Note :

Price reduction /

any discount as per

agreement

Price protection or any other benefits to

be intimated by the channel manager to

the sales team and receivables manager

by e-mail; RM to cascade it to the

receivables team

Van sales

Manager/

Receivables

Manager

Send e-mail for

notification

Can also be

recorded in the

Invoice for proper

control (included in

the HANDHELD)

Credit notes issued should be checked

by the Receivable Accountant.

Verify the customer Credit Note against

invoices sold in previous period (max 3

days old), verify price and e-mail

received & book the credit memo - or

Auto Entry in ERP

For credit notes backed by Suppliers,

proper confirmation from the brand team/

or the supplier benefits accountant is

needed in order to be processed

Receivable

Accountant

Credit Note /

Invoice verified

Review Credit Note and approve/ modify

if required.

Deliver Credit Note to Sales Rep.

Credit note to be used as mean of

payment (deduction) from the next

issued invoice to the customer.

Receivables

Accountant/

Senior

Receivables

Accountant

Approved Credit

Note

Issue Credit Note

per customer

The Sales Rep based on information

received will deliver the Credit Note per

customer

Sales Rep Credit Note




reps.


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Ver: 2.1

Van Sales

AT/F/PR 07 Date: 07/2012

KPI:

Input /


Generated

Based on the credit

Terms / Payment

Terms

The Accountant will review the aging

report after all transactions are

completed in system (daily)

Accountant will also generate the

account status report from ERP to know

the uncollected invoices

Receivables

AccountantAging report

The same report to be reviewed by the

Credit controller for credit limits / terms

control

Credit Controller

Credit Monitoring

Credit monitoring is available in the PDA

itself - Sales reps will not be able to

invoice once the credit limit is reached. In

case a credit sale is made exceeding the

credit limit without approval from the VP,

same needs to be escalated to the credit

controller by the cashier

Van Sales Team/

Cashier/ Credit

Controller

Credit

Monitoring on

PDA

Where Exceeding

the limits

Any outstanding / Exceptional cases will

be informed by the Credit controller to

Country

Finance Manager/ Channel managers/

VP for necessary actions

Credit controller

Activity : Credit Controlling / market collectionMonitor & Control the Credit Terms

are maintained all Times


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Van Sales

AT/F/PR 07 Date: 07/2012

KPI:

Input /


Generated

Based on the

schedule the

physical Inventory

has been updated

in the system

Based on the schedule, the Stock

counter will prepare for stock take for van

warehouse (cage)

Stock Counter

Process to be started in the evening after

sales uploading.Stock Counter

Conduct the count, upload to ERP for

variance report and reconciliations.

Stock Counter/

Sales rep

Sales rep signed

physical stock

count result

Verify adjustment for variance if

any in System

Stock counter/ IT

department

Inform the Van Sales Supervisor for

necessary actions & approval.

In case of shortage, send info for payroll

to do salary deduction & inform CFM &

Channel manager for gap.

Stock Counter

Country Finance manager approve cycle

count

Country Finance

ManagerStock updated

Activity : Inventory Variance should be Nil


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Van Sales

AT/F/PR 07 Date: 07/2012

KPI:

Input /


Generated

Cheques (both on time/PDC)

reconciliation should be prepared on

daily basis. Cheques should be kept in

the Cashier's safe as per maturity date

sequence.

(Daily; Receipt Journal report shows all

matured cheques need to be deposited

in Bank) Cashier must insure that all the

maturing cheques must be handed over

to the bank's collector to be deposited

before bank closing time.

Cashier/ Bank

Collector

Receipt Journal

Report

Prepare the reconciliation with supporting

document for all pending payments -

Bounced/ PDC cheques, cash for the

days deposit not yet done “only non

working days of the end of the month

should be pending for cash deposits”

Receivable

Accountant

Email ,

Reconciliation

report

Recommendation:

Cash

management &

bank

reconciliation

should be

segregated &

managed by GL to

have job

segregation &

controls

from different

division.

Coordinate cash bank account

reconciliation with GL Accountant on

daily basis to insure all bank deposits are

cleared. Or Receivable accountant to do

reconciliation depending on country

setup

GL

Accountant

/ Receivable

accountant

Activity : Bank Reconciliation Cash / Credit Tallying bank account with books


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Van Sales

AT/F/PR 07 Date: 07/2012

KPI:

Input /


Generated

Sales return for

Phone care

1. At the customer: inspect the damaged

phone. Collect the defective unit from the

customer (if it’s eligible for replacement)

and send to Phone Care for further

inspection.

2. After receiving the Phone Care report,

if it is eligible for replacement then

replace the same model to customer (if

the same product is available) If not

available then make the sales return and

issue credit note to customer.

3. Sales rep post the SR with the DOA

approval, accountant will apply the CN

with future sales.

Van sales rep/

Phone care/

Receivables

Accountant

Move order to

Phonecare,

Phone care to

accept SLI

Prepare weekly status on

unresolved issues pending during

the week to the Country Finance

Manager.

Pending issues related for more

than one week time need to be

addressed on top priority to

insure repetitive mistakes are

avoided.

?? ??

Note: Since all warehouse operations are handled by logistics, the above part to be deleted from

the finance SOP

Activity : Day to Day Follow up

Ensure daily Control on stock

movement and on time status of

store inventory


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Van Sales

AT/F/PR 07 Date: 07/2012

KPI:

Input /


Generated

The Van Sales

Supervisor will also

allocate the special

items-

Recommendation

Requisitions Form - Van Sales rep -

given for items needed to the Store

Keeper for issue in eveningSales rep

Stock

Requisition

Form ( limits of

distribution

Loading

of Items to be

defined )

Check the stock Availability in

system (warehouse)Store Keeper

All stock in system

transfer will have

their own reference

no. to be matched

for transfer

between the

locations

Prepare available stock for deliver;

process move order in ERP

Receivable

Accountant /

Store keeper

each enter his

location

Move Order

Load the items in the van in presence of

van driver , Van Sales rep, Security &

Store Keeper & get signature of Sales

rep & Security on the move order

Store Keeper

Sales rep and

Security

Then the Accountant will verify the

approval of Salesman, Security & Store

Keeper

Receivable

Accountant

Confirm - Mover order for van location

posted in the system

Receivable

AccountantMove Order

Stock Return Form will be made for

items to be returned and given to the

warehouse

Sales rep

Stock

Requisition

Form (return)

Proper approval

signatures to be

made in Stock

Transfers / move

orders

Return physical stock in the presence of

Sales rep, Security & Store Keeper,

generate the move order in warehouse

location to be signed by security, sales

rep and store keeper, signed copy filed

with security and store

Store Keeper,

security and

sales rep

Signed move

order by

Security, Sales

rep & Store

Keeper

Activity : : Stock controlling ( Issue / Receipt )To maintain the physical stock

variance as Nil


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Ver: 2.1

Van Sales

AT/F/PR 07 Date: 07/2012

KPI:

Input /


Generated

Accountant to verify the approved form

& posting done move order in van

location.

Receivable

AccountantMove Order

Warehouse based on the move order

posted, the stock is updated in the

system,

Store Keeper Move Order

Inspection of

material during the

receipt to be

evidenced &

Recorded, any

damages to be

recorded & Actions

to be initiated for

improvement -

Recommendation

Note: Since all warehouse operations are handled by logistics, the above part to be deleted from

the finance SOP

Activity : : Stock controlling ( Issue / Receipt )To maintain the physical stock

variance as Nil


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Ver: 2.1

Van Sales

AT/F/PR 07 Date: 07/2012

KPI:

Input /


Generated

Activity :Commissions

AS PER COUNTRY STRUCTURE FOR COMMISSIONS

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Van Sales

AT/F/PR 07 Date: 07/2012

7. Outputs

8. Monitoring and Measurement

Refer to Process Control Sheet

9. Forms and Records

Name

Sales / Stock Reconciliation Sheet

Receipt Voucher

Cash / Cheque Deposit receipt

Invoice

Reconciliation Report

Credit Note

Move order

Stock Requisition Form

Credit Monitoring Report

Aging report

10. Interfaces

None

11. Process Tailoring

None

• Receipt Voucher

• Cash / Cheque Deposit receipt

• Reconciliation Report

• Aging report

Reference

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finance sop - van sales - axiom easy sales... · sales uploading. stock counter conduct the count,...

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