DAY BOOKS Days books are nothing but, books in which entered the day to day transactions, that

occur in business. All these books are maintained in sequence of date of transactions. Day books are classified into two types-1. Journal proper and 2. Subsidiary books. The subsidiary books are- 1. Purchase book. 2. Sales Book 3. Cash Book 4. Bank Book 5. Returns inwards book 6. Returns outwards book. Though all the entries of day to day transactions can be passed through journal proper, subsidiary books are maintained for case of operation. JOURNAL PROPER Date Particulars L.F. Dr. Rs. 5000 5000 Cr. Rs.

98 Oct 01

Furniture A/c . Dr. To M/s Delite Furniture ( Being Furniture purchased on Credit ) Stationary A/c Dr. To M/s Natraj Stationary Mart ( Being Stationary purchased on Credit )

98 Oct 03

500 500

PURCHASE DAY BOOK Date Particulars Inward Invoice No. 0235 of 02 Oct 98 LF Details Rs. 15.000 3,000 Total Rs.

98 Oct 3

M/s Godwill Mfg. Ltd. Less : Trade Discount 20%

12,000

SALES DAY BOOK Date Particulars Outward Invoice No. 1491 of 07 Oct 98 LF Details Rs. Total Rs. 25.000

98 Oct 8

M/s Design Indian Ltd.

PURCHASE RETURN DAY BOOK Date Particulars Dedit LF Rs. Remarks

Note No. 98 Oct 5 M/s Golden Engg. Ltd. 985 of 04 Oct 98 1,000 Inspection Rejection

SALES RETURN DAY BOOK Date Particulars Credit Note No. 223 of 02 Oct 98 LF Rs. Remarks

98 Oct 5

M/s RawMat Supplies Ltd.

2,000

Transit Damages

LEDGER Ledger is nothing but an extract of day to day transactions of business for a particular account. Hence ledgers are always kept account wise within the account, they are maintained in a sequence of transactions date. All the transactions which are appeared in books must appear in ledger accounts. The act of writing down the transactions from day books to ledgers is called as ledger posting. CUSTOMER / CREDITOR LEDGER Dr. Date 98 Oct 8 Particulars To Invoice No. 2222 Rs. 3000 3000 Date 98 Oct 31 Particulars By Balance c/d Cr. Rs. 3000

98 Oct 31 To Balance b/d

Following are some report layouts. (1) LEDGER FORMAT : This format can be used for Sub-ledgers and General ledger. RUN DATE : 99/99/9999 X Y Z CO. LTD PAGE NO: 001 _________ LEDGER FOR MONTH ___________ A/C NO :__________ NAME : ______________________

DOC DOC DOC DATE TYPE NO

PARTICULARS

AMOUNT Dr

AMOUNT Cr

BY OPENING BALANCE .. | | TO CLOSING BALANCE ..

(2) TRIAL BALANCE FORMAT : RUN DATE : 99/99/9999 XYZ CO LTD PAGE NO: 001 TRIAL BALANCE FOR MONTH __________ A/C NO A/C NAME BALANCE DEBIT CREDIT

TOTAL ....

(3) FORMAT OF BALANCE SHEET : RUN DATE : 99/99/9999 X Y Z CO LTD BALANCE SHEET AS ON _______________ ASSETS AMOUNT LIABILITIES AMOUNT

Total ...

Total ...

(4) FORMAT OF DEBTORS/CREDITORS LIST : RUN DATE: 99/99/0000 X Y Z CO LTD PAGE NO: 001 DEBTORS/CREDITORS LIST FOR MONTH ________________ A/C NO A/C NAME BALANCE

TOTAL ...

(5) FORMAT OF AGEING ANALYSIS (This is normally done for Accounts Receivable ) : RUN DATE : / / X Y Z CO LTD PAGE NO: 001 AGEING ANALYSIS OF ACCOUNTS RECEIVABLE FOR MONTH _________ INVOICE INVOICE INVOICE NO. DATE AMOUNT 90 & ABOVE 61-91 DAYS 31-60 DAYS 1-30 DAYS

TOTAL

These input documents will have common format as follows :

VOURCHER

Sr.No. 9999 Date : 99/99/9999

XYZ CO. LTD.

Ambad Industrial Estate, Nashik-9.

DR. A/C NO. NAME

CR. A/C NO. NAME

PARTICULARS / NARRATION

AMOUNT DEBIT CREDIT

Posted on: 99/99/9999

Prepared by

Recievers Signature

MATERIAL REQUIREMENT PLANNING ( MRP ) MRP is a process of working out the material requirement for the manufacturing plan for scheduled period and planning the process of acquiring material ( buying raw material, boughtout components, manufacturing inhouse prepared components and assemblies). Whenever any product is designed the design / R & D departments gives the detail list of assemblies, components required to produce a unit quantity of the product. This refered as Bill of Material. Thus Bill of Material (BOM) is defined as a detailed list of assemblies, subassemblies, components required at each stage of manufacturing of a unit quantity of product. The Bill of Material will have following format :

XYZ CO. LTD. AHMEDNAGAR BILL OF MATERIAL (BOM)

Product No. Customer / W.O. No. Drawing No. Last Modification Date & No. : Date Description

Parent Child Description Component Component

Uom Quantities at stages 1 2 3 4

Total Explosion Qty. Indicator

(1). EMPLOSION CHECK LIST RUN DT : 99/99/99 X Y Z COMPANY LIMITED PAGE NO : 999 EXPLOSION ERROR LIST FOR PLAN QUARTER : XXX 9999 TO XXX 9999 PRODUCT COMPONENT DESCRIPTION CODE CODE UOM UNIT QTY REMARK

(2). PRODUCTWISE COMPONENT REQUIREMENT RUN DT : 99/99/99 X Y Z COMPANY LIMITED PAGE NO : 999 PRODUCT WISE COMPONENT REQUIREMENT FOR PLAN QUARTER : XXX 9999 TO XXX 9999 PRODUCT COMPONENT DESCRIPTION CODE CODE UOM UNIT EXPLODED QTY QTY I II III Mth Mth Mth

(3). CONSOLIDATED MATERIAL ISSUE REQUIREMENT RUN DT : 99/99/99 X Y Z COMPANY LIMITED PAGE NO : 999 CONSOLIDATED MATERIAL ISSUE REQUIREMENT FOR QUARTER : XXX 9999 TO XXX 9999 COMPONENT DESCRIPTION CODE UOM IST MTH FIRM IIND IIIRD MTH MTH TENTATIVE

(3). CONSOLIDATED MANUFACTURING REQUIREMENT RUN DT : 99/99/99 X Y Z COMPANY LIMITED PAGE NO : 999 CONSOLIDATED MANUFACTURING REQUIREMENT FOR QUARTER : XXX 9999 TO XXX 9999 COMP DESC CODE UOM IST MONTH AVAILABLE W I P NET TENT REQ. REQ. STOCK QTY REQ. IIND IIIRD MTH MTH

4. CONSOLIDATED PURCHASE REQUIREMENT RUN DT : 99/99/99 X Y Z COMPANY LIMITED PAGE NO : 999 CONSOLIDATED PURCHASE REQUIREMENT FOR QUARTER : XXX 9999 TO XXX 9999 COMP DESC UOM STD IST STOCK WIP SAFETY NET QTY NET PUR. CODE RATE MTH QTY QTY STOCK REQ ON REQ. QTY QTY ORDER QTY

PURCHASE ORDER PROCESSING

In organization various items are purchased to meet requirements of Production, accounts, Administration and other departments. The methods of purchasing goods will depend on type of material, quantity and quality required. The items are classified as productive items and non-productive items. Productive items are those who are part of a product manufactured by Company and Non-productive items are supportive items to help production e.g. consumables i.e stationery etc. The method for working out purchase requirement for production item is : First production plan is worked out - based on order from customer. The Production Plan wise component requirement is worked out. The net Purchase requirement is calculated by subtracting store stock, WIP and quantity already given for purchase. Then a statement of Requirement is prepared showing list of components to be purchased with purchase quantity. In case of Non-productive items a purchase requisition is to be given by various departments. This requisitions ( INDENT ) are collected together and consolidated for quantity requirement and checking stock the net purchase requirement is worked out. This method is called as Indented Purchases.

XYZ CO. LTD. AHMEDNAGAR MATERIAL PROCUREMENT INDENT FROM DEPT. PROJECT / WORK ORDER NO : INDENT NO DATE

Material Code

Description

Uom

Quantity Required

Expected Suggested Date Supplier

Authorised By

Passed By

Head of Dept.

Various reports pertaining to these indents can be prepared to know the status and action of purchasing done. 1) Consolidated Purchase Requirement ( Itemwise ) Material Description Code Uom Indented Quantity Stock Required Net Required Supplier Quantity Quantity

2) Pending Indents ( Item Wise )

Material Description Code

Uom

Indented Quantity

Stock

Net Required Purchase Pending Quantity Quantity Quantity

3) Pending Indents ( Department Wise ) Department Indent Indent Material No. Date Code

Description Uom Indented Taken for Purchase Quantity Purchase Quantity

FORMAT OF PURCHASE ORDER

XYZ CO. LTD.

SAVEDI ROAD, AHMEDNAGAR

PURCHASE ORDER
P.O.No. Supplier Code Name & Address Date : Your Qtn. No. : Date :

Please supply following material as per specification and terms and condition mention here below : Sr. Item Code No. Description Unit Rate Quantity to be Supplied Month1 Month2 Month3 Total

Terms & conditions : Delivery : Payment terms : Warranty : Mode of transport: Our bankers:

Excise : Sales Tax: Packing & forwarding Freight : Octroi :

Manager Purchase

The reports that can be produced are : 1) Pending P.O's 2) Supplier-wise Pending P.O.'s. 3) Itemwise Pending Quantity. 1) LIST OF P.O.'s PENDING AS ON 99/99/9999 P.O. & DATE SUPPLIER PENDING NO. CODE & NAME ITEM CODE . DSECRIPTION UOM PO QTY QTY RECVD QTY

2)

SUPPLIER-WISE PENDING P.O. AS ON 99/99/9999 PO & DATE ITEM DSECRIPTION UOM PO QTY QTY RECVD QTY

SUPPLIER PENDING CODE & NAME

CODE .

3) ITEM-WISE PENDING QUANTITY AS ON 99/99/9999 ITEM PENDING CODE DSECRIPTION UOM PO NO. & DATE QTY PO QTY RECVD QTY

MATERIAL RECEIPT SYSTEM : The main components of material receipt systems are* Goods Receipt : Material receipt system starts at receipt of goods at the factory. When the material is received at factory gate, security people will check the material. The material should be accompanied by three documents. (1) Suppliers goods dispatch note (2) Copy of excise gate pass and (3) Transports freight receipt called as GCN. After checking these documents, goods will be forwarded to the receipt stores department where the material will be unloaded. A tag is attached to the material which records information like suppliers challan. If less quantity is found then it will be checked for damages brokerage etc. If material is not in order then damaged material will be rejected and the rest will be accepted. A report called as 'Goods Received Report' (GRR), is prepared 5 copies of GRR are prepared. (supplier, A/C & audit, inspection, purchase and stores). GRR contains following information.

Material tag No. Date Suppliers Code &Name

XYZ CO LTD.

GRR No. Date. PO No. Date DC No. Date LR/RR No. Date

GRR

Sr. No. Item code Description

Uom

PO Challan Qty Qty

Received Accepted Qty Qty

Rejected Qty

Excise gate pass No. Excise chapter /Sub-chapter no. INSPECTION REMARKS

Accepted By

Inspected By

Prepared By

Materials Manager

Following reports can be generated : (1) PURCHASE REGISTER Po Po Supplier No. Date Item Code Description Uom Rate Purchase Amount Taxes Net Quantity Amount

(2) GRR REGISTER GRR GRR Accepted No. Date Supplier Po No. Item Details Challan Po Qty Challan Qty Received Qty

& Date

No.&Date Qty

(3) Daily Receipts ( Item wise ) Item Description Code Uom PO No. Supplier Details GRR GRR No. Date Received Quantity Accepted Quantity

Following reports are generated through store management system. 1. STORE LEDGER RUN DATE : / / X Y Z COMPANY LIMITED PAGE NO:999 STORE LEDGER FOR THE MONTH OF _____________ ITEM NO DESC UOM STD OPENING DOC DOC DOC RATE STOCK TYPE NO DATE QTY CLOSING STOCK

2. INVENTORY SUMMARY RUN DATE : / / X Y Z COMPANY LIMITED PAGE NO: 999 INVENTORY SUMMARY FOR THE MONTH OF __________ ITEM DESC UOM STD CUM CUR LAST CUM CUR LAST STOCK STOCK NO RATE REC REC DATE ISS ISS DATE VALUE IPT IPT RECPT UE UE ISSUE

below this report summary can be printed item typewise ITEM TYPE WISE SUMMARY ITEM TYPE STOCK CUMULATIVE RECEIPT VALUE TOOLS RAW MATERIAL | CURRENT ISSUE VALUE CUMULATIVE ISSUE VALUE CURRENT VALUE

RECEIPT VALUE

| TOTAL

Following reports are generated to control inventory or stock. 1. A B C ANALYSIS RUN DATE : / / X Y Z COMPANY LIMITED PAGE NO: 999 A B C ANALYSIS FOR PERIOD _________ TO _________ ITEM NO DESC UOM STD RATE CUM CUM % ISSUE ISSUE CONTRIQTY VALUE BUTION CUM % CLASS CONTRIBUTION

2. X Y Z ANALYSIS RUN DATE : / / X Y Z COMPANY LIMITED PAGE NO: 999 X Y Z ANALYSIS FOR PERIOD _________ TO _________ ITEM NO DESC UOM STD RATE STOCK QTY STOCK % CUM % CLASS VALUE CONTRI- CONTRIBUTION BUTION

3. F S N ANALYSIS RUN DATE : / / X Y Z COMPANY LIMITED PAGE NO: 999 F S N ANALYSIS FOR PERIOD _________ TO _________ ITEM NO DESC UOM STD RATE STOCK QTY STOCK VALUE LAST MONTH CLASS DATE OF NOT ISSUE MOVED

4. H M L ANALYSIS RUN DATE : / / X Y Z COMPANY LIMITED PAGE NO: 999 H M L ANALYSIS FOR PERIOD _________ TO _________ ITEM NO DESC UOM STD RATE STOCK QTY STOCK VALUE CLASS

Below all these report class wise summary is printed as follows : CLASSWISE SUMMARY CLASS A B C TOTAL NO OF ITEMS STOCK VALUE

The Other reports like Departwise Consumption / Scrap Report etc. can also be generated. 5. DEPARTMENTWISE MATERIAL CONSUMPTION REPORT AS ON ___________ Department Current Month Consumption in Rupees Cumulative Consumption in Rupees

6. ITEMWISE SCRAP REPORT AS ON ___________ Item Code Description Uom Scrap Rate Scrap Qty. Scrap Value

TOPIC - 4 : SALES ORDER PROCESSING SALE ORDER METHOD : If we receive on enquiry from prospective customer we will process the enquiry, while processing this enquiry we have to find out whether we are in a position to supply the goods as per specification and delivery schedule given by customer. If we are in a position to supply it, first out put is Quotation. Based on out quotation customer will give his purchase order. Thus receipt of purchase order to be acknowledged, because this acknowledgment creates a contract between ourself and a customer. Thus acknowledgment of purchase order is the IInd output of the system. This order acknowledgment is to be processed by us at certain time intervals.

XYZ CO. LTD.

SAVEDI ROAD, AHMEDNAGAR

ORDER ACKNOWLEDGEMENT
O.A. No. Customer Code Name & Address Date : Your PO No. : Date :

We agree to supply following material as per specification and terms and condition mention here below : Sr. Item Code No. Description Unit Rate Quantity to be Supplied Month1 Month2 Month3 Total

Terms & conditions : Delivery : Payment terms : Warranty : Mode of transport: Our bankers:

Excise : Sales Tax: Packing & forwarding Freight : Octroi :

Manager Sales

From this order acknowledgment following reports will be generated ORDER STATUS REPORT AS ON--------

O.A.No. O.A. Date

Customer

Total Qty.

Overdue Qty.

Due in current month

Due next month

In this report over due quantity is which should have supplied before report date. From this quantity over due quantity plus current production quantity. We can also produce pending order statement, either item wise or customer wise. PENDING ORDER STATUS ITEM-WISE,CUSTOMER-WISE Item Description Code Uom O.A. O.A. Customer Total Overdue Due in Due in No. Date Qty. Qty. current next month month

PENDING ORDER STATUS CUSTOMER WISE, ITEM WISE Customer Item Description Uom O.A. O.A Total Overdue Due in Due in No. Date Qty. Qty. current next month month

INVOICE
Customer Code &Name

XYZ CO LTD.
AHMEDNAGAR

Invoice No. Date. Your Order No. Date DC No. Date LR/RR No. Date

S.No. 1. 2. 3.

Item Code

Description

UOM

Qty.

Rate

Amount

Transporter Excise GP-1 No. RG-23 Entry No. PLA No. Date

Basic Value Packing and Forwarding Insurance Excise duty Sales Tax Octroi NET AMOUNT

( RUPEES .. Payment Terms _____ Due Date of Payment _________

Manager Sales

VARIOUS REPORTS OUT OF INVOICING SYSTEM DAILY DISPATCH REPORT Sr. No Delivery Challan No. & Date Customer Order Item Description Challan Name No. Code Quantity Rate Value

SALES REGISTER FOR THE MONTH OF ____________ Invoice Cust Name Item Description Total Value No. & Date Code of Goods Value Excise S.Tax Octroi Other Charges Net

ITEM - WISE SALES Sr. Item Description Uom Rate Invoice Customer Quantity Value Cum.sales No. code No. & Date Name of item

CUSTOMER - WISE SALES ANALYSIS Sr. No. Customer Item code Description Invoice Invoice Invoice Cumulative No. Date Value Sales

The report Layouts are as follows : 1. SALESMANWISE SALES PERFORMANCE REPORT FOR THE MONTH _________ Salesman No. of calls No. of Orders Order Value Amount Collected

2. FINANCIAL STATEMENT ( INVOICING) FOR THE MONTH ______________ No. of Invoices Invoice Raised Value No. of Invoices Cleared Value No. of Invoices Outstanding pending amount

(3) PRODUCTWISE SALES FOR __________________________________________ Product Current Qty Sold Qtr1 to Qtr 4 same fields Target Actual Variance Cumulative Qty Sold

(4) VALUEWISE SALES PERFORMANCE FOR _______________________ Branch Current Sales Qtr1 to Qtr 4 same fields Target Actual Variance Cumulative Sales

(5) BEST / WORST PERFORMING DEALER Dealer Branch Cumulative Target Sales Sales Variance Total Outstanding

(6) DEALER / SALESMANWISE PRODUCTWISE SALES Dealer Product Qtr1 to Qtr 4 same fields Target Actual Variance Cumulative Qty Target Sold

PAYROLL SYSTEM
Following are some report formats : (1) FORMAT OF PAY SLIP : RUN DATE : X Y Z CO. LTD. PAYSLIP FOR THE MONTH OF _____________ PF NO ESI BANK NO A/C NO SR.NO. : 001

EMP NAME NO

PAYABLE OT LEAVES DAYS HRS CL PL SL

BASIC

DA

HRA

CCA

CONV. ALLOW

OTHER OTHER OTHER TOTAL ALLOW EARN1 EARN2 EARNING

PROF TAX

P.F.

LIC

I.T.

CANTEEN SOCIETY OTHER OTHER TOTAL DED.1 DED.2 DEDUCT.

NET SALARY RS. 9999/- ( RUPEES .) RECEIVED ABOVE AMOUNT

Signature

Constituted Attorney

From this PAY & WAGES REGISTER is prepared by putting earning record as top record and below deductions & net salary.

(2) FORMAT OF BANK STATEMENT RUN DATE : X Y Z CO. LTD. PAGE NO. : 001 BANK STATEMENT FOR THE MONTH OF ________ BANK CODE :_______ BANK NAME : __________ A/C NO EMP.NO NAME BRANCH :_____ SALARY

TOTAL ...

(3) FORMAT OF COINAGE ANALYSIS RUN DATE : X Y Z CO. LTD. SR.NO. : 001 COINAGE ANALYSIS FOR THE MONTH OF _____________ SALARY DENOMINATION 100 50 20 10 5 2

EMP NAME NO

101

CANARA PINTO

2347

23

--

--

--

TOTAL ...

From the coinage analysis a summary page is printed which will be given to bank for making provision of denomination.

RUN DATE : X Y Z CO. LTD. PAGE .NO. : 001 COINAGE ANALYSIS SUMMARY FOR MONTH ___________ DENOMINATION 100 50 | | TOTAL x x NO. OFF ... ... AMOUNT

......

(4) P.F. DEDUCTION STATEMENTS FORMAT

RUN DATE : X Y Z CO. LTD. PAGE.NO. : 001 PROVIDENT FUND STATEMENT FOR THE MONTH OF _____________ COMPANY PAY CODE : ______________ P.F. NO. EMP NO. NAME EMPLOYEE CONTRIB. EMPLOYER CONTRIB. TOTAL CONTRIB.

TOTAL ...

(4) L I C DEDUCTION STATEMENT FORMAT RUN DATE : X Y Z CO. LTD. PAGE.NO. : 001 L I C DEDUCTION STATEMENT FOR THE MONTH OF _____________ COMPANY PAY CODE : ______________ EMP NO. POLICY NO. NAME OF HOLDER DEDUCTION AMOUNT

TOTAL ...

(5) PROF. TAX DEDUCTION STATEMENT FORMAT The same format can also be used for ESI/ LWF/ SOCIETY/ CANTEEN/ I.TAX deductions. RUN DATE : X Y Z CO. LTD. PAGE.NO. : 001 PROF. TAX DEDUCTION STATEMENT FOR THE MONTH OF _____________ COMPANY PAY CODE : ______________ EMP NO. EMPLOYEE NAME GROSS SALARY DEDUCTION AMOUNT

TOTAL ... (6) DEPARTMENT WISE EARNING STATEMENT RUN DATE : X Y Z CO. LTD. DEPARTMENT WISE EARNINGS STATEMENT FOR THE MONTH OF _________ DEPT. NO. DEPT. NAME CUMMULATIVE EARNINGS CURRENT EARNINGS PAGE.NO. : 001

TOTAL ...

(7) DEPARTMENT WISE OVERTIME STATEMENT RUN DATE : X Y Z CO. LTD. PAGE.NO. : 001 DEPARTMENT WISE OVERTIME STATEMENT FOR THE MONTH OF _________ DEPT NO. DEPT NAME CUMMULATIVE HRS AMOUNT CURRENT HRS AMOUNT

TOTAL ...

(8) BONUS REGISTER FORMAT RUN DATE : X Y Z CO. LTD. BONUS REGISTER FOR YEAR _______ PAYABLE DAYS BONUS AMOUNT TAX DED. PAGE.NO. : 001

EMP NO.

NAME

OTHER NET DED. BONUS

TOTAL ...