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TAPAL TEA PVT LIMITED

Accounting Manual (General Ledger)


Policies and Procedures
Policies
Introduction BKPL01

Applicable Legal & Regulatory Requirements BKPL02

Accounting Estimates BKPL03

Accounting Policies BKPL04

Chart of Accounts BKPL05

Responsibilities BKPL06

Accounting Entries BKPL07

Record Management BKPL08

Procedures
General ledger entry process flow BKPR01
Maintaining Master Records BKPR02
Posting Activities BKPR03
Closing -Activity BKPR04
Periodic Closing BKPL07

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Accounting Manual (General Ledger)
POLICY TITLE: Introduction POLICY NUMBER: BKPL01

DATE ISSUED: 30-Apr-2017 DATE REVISED: N/A

Accounting:

Accounting refers to recording of financial transactions in the books of accounts in the correct ledger accounts as
per the nature of transaction. Book-keeping can be manual or computerized however the principles of accounting
remain the same. Proper book -keeping plays a significant role in timely and accurate record keeping of all
finance and accounts related activities through manual or computerized system and finally facilitates to reflect a
true and fair picture of financial operation of activities of the company in the financial statements prepared and
presented to the management and stakeholders of the company.

Accounting Cycle

The sequence of accounting procedures used to record, classify and summarize accounting information is termed
as Accounting Cycle. The accounting cycle begins with the initial recording of business transactions and
concludes with the preparation of financial statements summarizing the effects of these transactions upon the
entitys assets, liabilities, equity, income and expenditure

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Accounting Manual (General Ledger)
POLICY TITLE: Introduction POLICY NUMBER: BKPL01

DATE ISSUED: 30-Apr-2017 DATE REVISED: N/A


General Ledger Accounting (FI-GL)
Purpose
The central task of G/L accounting is to provide a comprehensive picture of the companys state of affairs in
financial items relevant for the decision making requirement of the internal and external stakeholder. Essentially,
the general ledger serves as a complete record of all business transactions. It is the centralized, up-to-date
reference for the rendering of accounts. Actual individual transactions can be checked at any time in real-time
processing by displaying the original documents, line items, and transaction figures at various levels such as:
Account information
Journals
Totals/transaction figures
Balance sheet/profit and loss evaluations

Features
The SAP FI General Ledger has the following features:
Free choice of level: corporate group or company
Automatic and simultaneous posting of all sub-ledger
items in the appropriate general ledger accounts
(reconciliation accounts)
Simultaneous updating of general ledger and cost
accounting areas
Real-time evaluation of and reporting on current
accounting data, in the form of account displays,
financial statements with different financial statement
versions and additional analyses.
There are many sub-modules that streamline and specialize in each aspect of the Financial Accounting Processes:

1. AA Asset Accounting 2. AP Accounts Payable 3. AR Accounts Receivable

4. BL Bank Accounting 5. FM Fund Management 6. GL General Ledger Accounting

7. TM Travel Management

Out of the above, FI-AR, FI-AP, & FI-AA are the three sub-modules that send simultaneous postings to FI-GL.

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Accounting Manual (General Ledger)
POLICY TITLE: Applicable Legal & Regulatory Requirements POLICY NUMBER: BKPL02

DATE ISSUED: 30-Apr-2017 DATE REVISED: N/A


Applicable Legal and Regulatory Requirements

1. Section 230 of the Companies Ordinance 1984 states that :


Every company shall keep at its registered office proper books of accounts with respect to:
a) all sums of money received and expended by the company and the matters in respect of which the receipt
and expenditure takes place;
b) all sales and purchases of goods by the company;
c) all assets of the company;
d) all liabilities of the company; and
e) in the case of a company engaged in production, processing, manufacturing or mining activities, such
particulars relating to utilization of material or labor or the other inputs or items of cost as may be
prescribed, if such class of companies is required by the Commission by a general or special order to
include such particulars in the books of accounts
2. Section 175 of the Income Tax Ordinance, 2001 requires every taxpayer to maintain proper books of
account for a period of at least six years.
3. Section 32 of the Income Tax Ordinance, 2001 further requires that these books of account are to be
maintained on Accrual basis.

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Accounting Manual (General Ledger)
POLICY TITLE: Accounting Estimates POLICY NUMBER: BKPL03
DATE ISSUED: 30-Apr-2017 DATE REVISED: N/A

An approximation in a financial statement of the amount to be credited or debited on items for which there is no
precise means of measurement, such as depreciable assets or provisions for a loss from a lawsuit. Estimates are
based on the judgment and specialized knowledge derived from past experience.

Following are the significant accounting estimates used by the company

1. Income taxes

In making the estimates for income taxes currently payable by the Company, the management considers the
current income tax law and the decisions of appellate authorities on certain issues in the past.

2. Staff retirement benefits

Certain actuarial assumptions are used for the actuarial valuation of funded gratuity scheme. Changes in these
assumptions in future years effects the liability under this scheme in those years.

3. Property, plant and equipment

The Companys management determines the estimated useful lives and related depreciation charge for its plant
and equipment. The Company also reviews the value of the assets for possible impairment on an annual basis.
Any change in the estimates in future years might affect the carrying amounts of the respective items of property,
plant and equipments with a corresponding affect on the depreciation charge and impairment.

4. Trade and other debts

The Company reviews its doubtful debts at each reporting dates to access whether provision should be recorded
in the profit and loss account. In particular, judgment by the management is required in the estimates of the
amount and timing of future cash flows when determining the level of provision required. Such estimates are
based on assumptions about a number of factors and actual results may differ, resulting in future changes to the
provisions.

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Accounting Manual (General Ledger)
POLICY TITLE: Accounting Estimates POLICY NUMBER: BKPL03
DATE ISSUED: 30-Apr-2017 DATE REVISED: N/A
5. Stock in trade

The Company reviews the net realizable value of stock in trade to assess any diminution in the respective
carrying values. Any change in the estimates in future years might affect the carrying amounts of stock in trade
with a corresponding affect on the profit and loss account of those future years.

6. Investments stated at fair value

Management determines fair value of certain investments by using quotations from the active market wherever
available. Fair value estimates are made at a specific point in time, based on market conditions and information
about the financial instrument. These estimates are subjective in nature and involve uncertainties and judgement
(e.g. valuation, interest rates, etc.) and therefore, cannot be determined with precision.

7. Held-to-maturity investment

The Company has classified certain investment as held-to-maturity. In this regard, management's judgment is
involved in evaluating the intention and ability to hold this investment till their respective maturities.
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Accounting Manual (General Ledger)
POLICY TITLE: Accounting Policies POLICY NUMBER: BKPL04

DATE ISSUED: 30-Apr-2017 DATE REVISED: N/A

Following are the significant accounting policies applied by the company.

1. Staff retirement benefits and compensated absences

Defined benefit plan

The Company operates an approved funded staff gratuity fund for all permanent management staff who have
completed their minimum qualifying period of service with the Company. Contributions are made annually on
the basis of actuarial recommendation using the "Projected Unit Credit Method". The latest valuation is every
two financial years. Actuarial gains or losses are recognised in other comprehensive income in the year in which
they arise.
Past service cost is recognized in the profit and loss account over the average period until the benefits become
vested. To the extent that the benefits vest immediately, the expense is recognised immediately in the profit and
loss account.

Defined contribution plan

The Company also operates an approved provident fund scheme for all permanent employees who have
completed their minimum qualifying period of service with the Company. Equal monthly contributions are made
both by the Company and the employees to the fund at 10 percent of basic salary for management staff and 10
percent of basic salary including cost of living allowance for the non-management staff.

Employees compensated absences

The Company also makes provision in the financial statements for its liability towards entitled compensated
absences based on the leaves accumulated up to the balance sheet date in accordance with the service rules.
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Accounting Manual (General Ledger)
POLICY TITLE: Accounting Policies POLICY NUMBER: BKPL04

DATE ISSUED: 30-Apr-2017 DATE REVISED: N/A

2. Taxation

Current

The charge for current taxation in the financial statements is based on taxable profits at current rates of taxation
after taking into account the available tax credits and rebates.

Deferred

Deferred tax is recognised using the balance sheet liability method in respect of all temporary differences
between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for
taxation purposes. The amount of deferred tax recognised is based on the expected manner of realisation or
settlement of the carrying amounts of assets and liabilities using the tax rates enacted or substantially enacted at
the balance sheet date. Deferred tax asset is recognised only to the extent that it is probable that future taxable
profits will be available against which the asset can be utilized. Deferred tax asset is reduced to the extent that it
is no longer probable that the related tax benefits will be realised.

3. Property, plant and equipment

Operating assets

Operating assets are stated at cost less accumulated depreciation and impairment losses, if any, except land
which is stated at cost. Cost includes expenditure that is directly attributable to the acquisition of the items.

The cost of replacing part of an item of property, plant and equipment is recognized in the carrying amount of the
item if it is probable that the future economic benefits embodied within the part will flow to the Company and its
cost can be measured reliably. Normal repairs and maintenance are charged to profit and loss account as and
when incurred; major renewals and improvements are capitalized and the assets so replaced, if any, are retired.
Gains and losses on disposal of assets, if any, are included in profit and loss account.

Depreciation on operating assets, other than free hold land, is charged to profit and loss account applying the
straight-line method at rates specified as per fixed assets policy. Depreciation is charged from the month the
asset is available for intended use, while no depreciation is charged from the month in which the asset is
disposed off or scraped.
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Accounting Manual (General Ledger)
POLICY TITLE: Accounting Policies POLICY NUMBER: BKPL04

DATE ISSUED: 30-Apr-2017 DATE REVISED: N/A

4. Investments

All investments are initially recognised at cost, being the fair value of the consideration given including the
transaction costs associated with the investment. All regular way purchase and sale of investments are recognised
/ derecognised on the trade date. After initial recognition these are categorised and accounted for as follows:

Investments in associates - equity method of accounting

Investment in associates, where the Company has significant influence but not control, are accounted for by
using the equity method of accounting, less impairment loss, if any. These investments are initially recognised at
cost and thereafter the Company's shares of the changes in the net assets of the associates are accounted for at the
end of each year. Share of profit and loss of associates is accounted for in the Company's profit and loss account,
whereas changes in the associate's equity which has not been recognised in the associates profit and loss account
are recognised directly in the equity of the Company. Dividends received from the associates are recognised as
an adjustment in the carrying value of the investments.

Available-for-sale

These are stated at fair value, with any resultant gain or loss being recognized directly in equity. Gains or losses
on revaluation of available-for-sale investments are recognized directly in equity until the investments are sold or
otherwise disposed-off, or until the investments are determined to be impaired, at which time cumulative gain or
loss previously reported in the equity is included in current year's profit and loss.

All investments classified as available-for-sale are initially recognized at cost inclusive of transaction costs and
subsequently quoted investments are marked to market using the last quoted rate at the close of the financial
year.

Held-to-maturity

Investments with fixed maturity where the management has both the intent and ability to hold till maturity are
classified as held-to-maturity. These investments are stated at amortised cost less impairment losses, if any.
Amortisation of premium / discount on acquisition of the investments is carried out using the effective yield
method.
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Accounting Manual (General Ledger)
POLICY TITLE: Accounting Policies POLICY NUMBER: BKPL04

DATE ISSUED: 30-Apr-2017 DATE REVISED: N/A

5. Stock-in-trade

These are valued at lower of cost and net realisable value. Cost is determined under the following bases:
- Raw materials - at weighted average cost
- Packaging materials - at weighted average cost
- Work-in-process - at weighted average cost
- Finished goods - at weighted average cost
- Stock in transit - at invoice value plus other charges paid thereon

Cost in relation to work-in-process and finished goods include raw material, labour costs and an appropriate
portion of production overheads.

Net realisable value signifies the estimated selling price in the ordinary course of business, less the estimated
costs of completion and selling expenses.

6. Trade debts and other receivables

These are stated at cost less provision for impairment. An estimate is made for doubtful receivables (as
provision) when collection of the amount is no longer probable. Full provision is made against the debts
considered doubtful. Debts considered irrecoverable are written off.

7. Foreign currency translations

Foreign currency transactions during the year are translated into Pak Rupees at the exchange rates prevailing on
the date of transaction. Monetary assets and liabilities in foreign currencies at the balance sheet date are
translated into Pak Rupees at the rates of exchange prevailing on the balance sheet date. Exchange gains and
losses on translation are included in income currently.

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Accounting Manual (General Ledger)
POLICY TITLE: Accounting Policies POLICY NUMBER: BKPL04

DATE ISSUED: 30-Apr-2017 DATE REVISED: N/A

8. Revenue recognition

Sales are recorded on dispatch of goods to customers.

Dividend income on investments, other than equity accounted for investments, are recognized when right to
receive the same is established.

Profit on loans to an associated company, other loans and on bank deposits and investment in musharaka
certificates are recognised on a time proportion basis under the effective yield method.

Rent income is recognised on a time proportionate basis.

Gain on sale of scrap items is recognised at the time of sale (when the risks and rewards are transferred to
the buyer).

9. Provisions

Provisions are recognised in the balance sheet when the Company has a legal or constructive obligation as a
result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to
settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed
at each balance sheet date and are adjusted to reflect the current best estimates.

10. Financial instruments

All financial assets and liabilities are initially measured at fair value, and subsequently measured at fair value or
amortized cost as the case may be. The Company derecognizes the financial assets and financial liabilities when
it ceases to be a party to such contractual provisions of the instruments.

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Accounting Manual (General Ledger)
POLICY TITLE: Accounting Policies POLICY NUMBER: BKPL04

DATE ISSUED: 30-Apr-2017 DATE REVISED: N/A

11. Impairment

Financial assets

A financial asset is assessed at each balance sheet date to determine whether there is any objective evidence that
it is impaired. A financial assets is considered to be impaired if objective evidence indicates that one or more
events have had a negative effect on the estimated future cash flows of the asset.

Individually significant financial assets are tested for impairment on an individual basis. The remaining financial
assets are assessed collectively in groups that share similar credit risk characteristics.

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference
between its carrying amount and the present value of estimated cash flows discounted at the original effective
interest rate. An impairment loss is reversed if the reversal can be related objectively to an event occurring after
the impairment loss was recognised.

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Accounting Manual (General Ledger)
POLICY TITLE: Chart of Accounts POLICY NUMBER: BKPL05

DATE ISSUED: 30-Apr-2017 DATE REVISED: N/A


The chart of accounts is a financial organization tool that provides a complete listing of every account in an
accounting system. An account is a unique record of each type of asset, liability, equity, revenue and expense.

The chart of accounts contains the account number, account name, and the information that controls how an
account functions and how a G/L account is created in a company code.

The Chart of accounts will be typically listed in order of their appearance in the financial statements. Typically,
Balance Sheet accounts are listed first followed by the Income Statement accounts.

Structure

The following information is contained in the chart of accounts area of a G/L account master record.
1. The chart of accounts code
2. Company code ( one chart of accounts code can contain more than one company codes)
3. The indicator that specifies whether the account is a balance sheet account or an P&L statement
account. At the start of a new fiscal year, the balance of a balance sheet account is carried forward to
itself. With P&L statement accounts, you must specify the account to which the profit or loss is carried
forward at the end of a fiscal year must be specified.
4. The account group is a summary of accounts based on criteria that effects how master records are
created. The account group determines: The number interval from which the account number is selected
when a G/Account is created.
5. GL accounts the sub accounts within each account group are known as GL accounts.

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Accounting Manual (General Ledger)
POLICY TITLE: Responsibilities POLICY NUMBER: BKPL06

DATE ISSUED: 30-Apr-2017 DATE REVISED: N/A


Following table highlights all the account groups contained in the chart of accounts, along with identifying
responsible functions (for accounting) for each accounting group.

CO Acc. Accounts Group Name From To GL Owner


A Group
#
100 10199 Accounts GL
0 101 Capital 101001 9
100 10299 Accounts GL
0 102 Reserve 102001 9
100 11199 Accounts
0 111 Asset Revaluation 111001 9 Manager
100 20199 Tax Manager
0 201 deferred Taxation 201001 9
100 20299 Treasury
0 202 Directors Loan - Long Term 202001 9 Manager
100 20399 Treasury
0 203 Finance Lease - Long Term 203001 9 Manager
100 20499 Treasury
0 204 Employee Vehicle Loans 204001 9 Manager
100 21199 Treasury
0 211 Due to Directors 211001 9 Manager
100 21299 Accounts ( A/P)
0 212 Trade creditors 212001 9
100 21399 Accounts ( A/P)
0 213 Statutory Liability 213001 9
100 21499 Treasury
0 214 Funds Payables 214001 9 Manager
100 21599 Treasury
0 215 Staff Payables 215001 9 Manager
100 21699 Accounts ( A/P)
0 216 Accrued Expenses 216001 9
100 22299 Treasury
0 222 Bank Payables 222001 9 Manager
100 29999 Accounts GL
0 299 Clearing Accounts 299001 9
100 30199 Accounts GL
0 301 Fixed Asset Owned 301001 9
100 31199 Accounts GL
0 311 Accumulated Dep - Owned 311001 9
100 32199 Accounts GL
0 321 Asset Under Construction - AUC 321001 9
100 33199 Treasury
0 331 Investment in an Associated Co 331001 9 Manager
100 34199 Accounts
0 341 Long Term Deposits 341001 9 Manager
100 35199 Costing
0 351 Raw Material 351001 9 Manager
100 35299 Costing
0 352 Packing Material 352001 9 Manager
100 35399 Costing
0 353 Store & Spares 353001 9 Manager
100 35499 Costing
0 354 Semi Finished Goods 354001 9 Manager
100 35599 Costing
0 355 Finished Goods 355001 9 Manager
100 35699 Costing
0 356 Trading Goods 356001 9 Manager
100 35799 Costing
0 357 Product Development Stock 357001 9 Manager
100 35899 Costing
0 358 Promotional Stock 358001 9 Manager
100 35999 Costing
0 359 Scrap Goods 359001 9 Manager
100 37199 Accounts ( A/R)
0 371 Trade Receivable 371001 9
100 37299 Accounts ( A/P)
0 372 Advances to Suppliers 372001 9

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Accounting Manual (General Ledger)
POLICY TITLE: Responsibilities POLICY NUMBER: BKPL06

DATE ISSUED: 30-Apr-2017 DATE REVISED: N/A

CO Acc. Accounts Group Name From To GL Owner


A Group
#
100 37399 Treasury
0 373 Advances to Staff 373001 9 Manager
100 37499 Treasury
0 374 Short Term Prepayments 374001 9 Manager
100 37599 Treasury
0 375 Short Term Deposits 375001 9 Manager
100 37699 Treasury
0 376 Short Term Investment 376001 9 Manager
100 37799 Accounts ( A/R)
0 377 Others Receivables 377001 9
100 38199 Tax Manager
0 381 Income Tax 381001 9
100 39199 Treasury
0 391 Cash in Hand 391001 9 Manager
100 39299 Treasury
0 392 Banks 392001 9 Manager
100 401 Domestic Sales 401001 40199 Accounts ( A/R)
0 9
100 40299 Accounts ( A/R)
0 402 Export Sales 402001 9
100 40399 Accounts ( A/R)
0 403 Staff Sales 403001 9
100 41199 Accounts ( A/R)
0 411 Other Income 411001 9
100 41299 Treasury
0 412 Profit from Associated Compani 412001 9 Manager
100 50199 Treasury
0 501 Director Remuneration 501001 9 Manager
100 50299 Treasury
0 502 Salaries and Wages 502001 9 Manager
100 50399 Accounts ( A/P)
0 503 Wages Outsource 503001 9
100 50499 Treasury
0 504 Fringe Benefits 504001 9 Manager
100 50599 Treasury
0 505 Vehicle Fuel 505001 9 Manager
100 50699 Treasury
0 506 Vehicle Maintenance 506001 9 Manager
100 50799 Accounts ( A/P)
0 507 Utilities 507001 9
100 50899 Accounts ( A/P)
0 508 Up Keep Maintenance 508001 9
100 50999 Accounts ( A/P)
0 509 Postage & Courier 509001 9
100 51099 Accounts ( A/P)
0 510 Travelling & Conveyance 510001 9
100 51199 Accounts ( A/P)
0 511 Entertainment 511001 9
100 51299 Costing
0 512 Consumable/Indirect Material 512001 9 Manager
100 51399 Accounts ( A/P)
0 513 Rent, Rates & Taxes 513001 9
100 51499 Treasury
0 514 Insurance Expenses 514001 9 Manager
100 51599 Accounts ( A/P)
0 515 Legal & Professional 515001 9
100 51699 Accounts ( A/P)
0 516 Statutory Charges 516001 9
100 51799 Accounts ( A/P)
0 517 Computer Software and Maint 517001 9
100 51899 Accounts GL
0 518 Depreciation Expense - Owned 518001 9
100 52099 Treasury
0 520 Financial Expenses 520001 9 Manager
100 52199 Accounts ( A/P)
0 521 Other Administrative Expenses 521001 9
100 522 Selling & Distribution Expense 522001 52299 Accounts ( A/R)
0 9

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Accounting Manual (General Ledger)
POLICY TITLE: Responsibilities POLICY NUMBER: BKPL06

DATE ISSUED: 30-Apr-2017 DATE REVISED: N/A

CO Acc. Responsible
A Group Acc. Group. Description From To
100 Theme production & 52599 Accounts ( A/P)
0 525 Advertising 525001 9
100 52699 Accounts ( A/P)
0 526 Brand Activation & Events - BT 526001 9
100 52799 Accounts ( A/P)
0 527 Research & Development 527001 9
100 52899 Accounts ( A/R)
0 528 Export Expenses 528001 9
100 55099 Costing
0 550 Services Purchased 550001 9 Manager
100 55199 Costing
0 551 Cost of Goods Sold 551001 9 Manager
100 55299 Costing
0 552 Price Differences 552001 9 Manager
1. GL Owner
Refer to the function that is responsible for recording of the relevant items of income, expense, asset, liabilities
and capital in the proper account and is correct period. GL owner include functions other than finance as well
who are receiving any types of goods or services from other functions or from outside third parties.

2. GL Custodian
Refer to the function that is responsible for the review of the above recordings, and taking correction measures
wherever required to ensure appropriate accounting in proper accounts and in proper period. Further, custodians
is also responsible to conduct training of the GL owners when required, to equip then with appropriate
knowledge for effective correction of reviewing activities.

3. GL Controller
Refer to the function that is responsible for the ensuring appropriate and completeness of overall accounting
process i.e. monitoring the accounting process undertaking at the GL owner and custodian level.

This would include following tasks:

Preparing reconciliation of GL accounts.


Taking corrective measures of errors identified at the GL owner / GL Custodian
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Accounting Manual (General Ledger)
POLICY TITLE: Accounting Entries POLICY NUMBER: BKPL07

DATE ISSUED: 30-Apr-2017 DATE REVISED: N/A

GR/IR Goods Receipt Accounting Entries

Service Entry Accounting Entries


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Accounting Manual (General Ledger)
POLICY TITLE: Accounting Entries POLICY NUMBER: BKPL07

DATE ISSUED: 30-Apr-2017 DATE REVISED: N/A

Invoice Verification Accounting Entries

Vendor Payments Accounting Entries


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Accounting Manual (General Ledger)
POLICY TITLE: Accounting Entries POLICY NUMBER: BKPL07

DATE ISSUED: 30-Apr-2017 DATE REVISED: N/A

Invoice for Customer Accounting Entries

Incoming Checks Accounting Entries

Bank Charges Accounting Entries


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Accounting Manual (General Ledger)
POLICY TITLE: Accounting Entries POLICY NUMBER: BKPL07

DATE ISSUED: 30-Apr-2017 DATE REVISED: N/A

Advance payment to vendors Accounting Entries

Advance Receipt from Customers Accounting Entries


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Accounting Manual (General Ledger)
POLICY TITLE: Record Management POLICY NUMBER: BKPL08

DATE ISSUED: 30-Apr-2017 DATE REVISED: N/A

Following table indicates the types of documents to be maintained and retained, period of retention
along with the persons responsible.

Documents Name Retention Electronic Hard


Period Lazerfish Copies
Audit reports of Financial Statements 10 Years X X
Income Tax returns and correspondence 10 Years X X
Payment vouchers with supporting documents 10 Years X X
Customer receipts vouchers with supporting documents 10 Years X X
Agreements & Legal correspondence 10 Years X X
Customers Claims 10 Years X X

Custodian Reviewer Up to Three month After Three month


Custodian Reviewer Custodian Reviewer

AR Executive Manager ( A/ R ) X X
Tax Executive Tax Manager X X
AP Officer Manager ( A/ P ) X X
AR Officer Manager ( A/ P ) X X
Admin Officer Admin Manager X X
Responsibilities
Custodian is responsible for getting all respective documents scanned on weekly basis and filing all the hard
copies for a period of three months. Thereafter, at the end of quarter a summary would be prepared for
transferring all the hard copies pertaining to that quarter by the 15 th of the month proceeding the relevant quarter.
Summary would be prepared by custodian and reviewed by reviewer as defined in the above table. Thereafter,
documents would be handed over to the admin (custodian from the onwards), by getting an acknowledgement on
the above summary. A copy of which would be printed to admin and the original would be maintain and filed by
the custodian.

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Accounting Manual (General Ledger)
PROCEDURE TITLE: General Ledger Entry Process Flow PROCEDURE NUMBER: BKPR01

DATE ISSUED: 30-Apr-2017 DATE REVISED: N/A


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Accounting Manual (General Ledger)
PROCEDURE TITLE: Maintaining Master Records PROCEDURE NUMBER: BKPR02

DATE ISSUED: 30-Apr-2017 DATE REVISED: N/A


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Accounting Manual (General Ledger)
PROCEDURE Create General ledger master records PROCEDURE
TITLE: NUMBER: BKPR02

30-Apr-2017 DATE REVISED: N/A


DATE ISSUED:
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Accounting Manual (General Ledger)
PROCEDURE Create General ledger master records PROCEDURE
TITLE: NUMBER: BKPR02

30-Apr-2017 DATE REVISED: N/A


DATE ISSUED:

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Accounting Manual (General Ledger)
PROCEDURE Create General ledger master records PROCEDURE
TITLE: NUMBER: BKPR02

30-Apr-2017 DATE REVISED: N/A


DATE ISSUED:

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Accounting Manual (General Ledger)
PROCEDURE PROCEDURE
TITLE: Posting Activities NUMBER: BKPR03

30-Apr-2017 DATE REVISED: N/A


DATE ISSUED:

Posting Key
The posting key in SAP is a two digits numerical key that determines the type of transaction entered in a line
item.
Posting Keys Determines:-

1. Account Types (A, D, K, M, S)

2. Type of postings i.e. Debit or Credit

Account Types in SAP:-

1. Assets - A

2. General Ledger- S

3. Customer - D

4. Vendor - K

5. Material - M

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Accounting Manual (General Ledger)
POLICY TITLE: Periodic Closing POLICY NUMBER: BKPL08

DATE ISSUED: 30-Apr-2017 DATE REVISED: N/A


The closing operations recur periodically and can be subdivided as follows:-
Month-End Closing
Year-End Closing

It is responsibility of GL owners to record all respective transactions during the month within that month.

These transactions are two types:

1. During the month for which bills / services have been received.
2. Provisional expenses shall be recorded on the basis of actual activities and expected amount of bills.

GL custodians shall be review each GL accounts identify for any unusual movements and take corrective action,
if any required. The closing activities of the GL accounts shall be completed by the deadlines as calculated by the
costing & planning function every month end.