Finance & Accounts

Finance & Accounts

Bird’s eye view Policies

Corporate Card Usage

Foreign Exchange Translation and

Hedging

Provision for Bad and Doubtful

Debts

Revenue Recognition

Page 2
 Finance & Accounts
Process Version Finance & Accounts Version 1.0 / 22 August 2016

Process Owner Head – Finance

CxO Owner Jasminder Gulati, CEO

‘Financial Management’ encompasses all transactions which have a monetary impact on the organization and is under the
purview of the finance department of the organization. It includes treasury operations, month end, revenue and expense
Process Objective accounting , accounts receivable and payable. ‘Financial Management’ is aimed at accurate and timely recording and reporting
of financial performance

Process Owner CxO Owner

Name: Name:
Sign-off
Date: Date:

Page 3
Accounts Payable
Invoice Processing- Assets
Process Flows Process Activities Templates

Start

1a. Invoice
1b. Seek 2a. Record invoice in
Procurement- received from 2. Documents 3b. Invoice is
confirmation ERP and pass entry for 3. PO based
Receipt of Goods/ Vendor along are valid and Yes No
from Marketing claiming necessary tax invoice? rejected
Services with supporting accurate?
team input credit Yes
documents

No Yes
3a. Invoice validation
4. Any
(3 way match) in ERP
discrepancy?
2b. Return invoice & and approval
Finance & Accounts

supportings to vendor
No

Finance & Accounts-

Advance payment
request

5a. Apply the

5. Advance
payment 6. Any balance 6a. Process vendor Finance & Accounts-
payment Yes Yes
against the amount? payment in ERP Payment Processing
processed?
invoice in ERP

No Finance & Accounts-

Statutory Payments

Page 5
 Invoice Processing- Assets Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLAs/

Performance Criteria

1. Finance team receives invoice along with supporting documents from Vendor Executive- Invoice with supporting NA
Some of the supporting documents are listed below(illustrative list) Finance documents received
• Delivery Challan
• User Confirmation
• Warranty Certificate
• For any queries, confirmation from Procurement department/User department is taken
• Others, if any

2. On receipt of invoice and supporting's, check for the following: Executive- Rejection / approval of Invoice should be
Original invoice and supporting documents are provided. Finance invoice for processing approved / rejected
within 2 working days of
Invoices are certified by authorised personnel from user department before it is sent to receipt
Finance.

Correct PO / GRN number is mentioned on the invoice (PO / GRN number should be
mentioned on all invoices)

Date of receipt of invoice is mentioned on the invoice (critical in case payment terms are - days
from date of receipt of invoice)

In case other valid documents / details are not available , either process the invoice after
taking the details from user department / Procurement department OR return the invoice and
supporting documents to Vendor/User department/ Procurement (as applicable) for providing
all valid documents / details (In case Finance decides to process invoices in spite of missing
documents / details, authorised personnel from Finance should mention on the face of invoice
the reason for doing so and such person should also signs and date such comments)

Page 6
 Invoice Processing- Assets Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLAs/

Performance Criteria

2a. Record the invoice in ERP and pass entry to claim necessary tax credit, if applicable Executive- Finance Recording of invoice in Invoice should be
ERP recorded the same day
when the invoice is
approved for
processing

3 In case of Non-PO based invoice, the invoices are rejected . Executive- Finance Rejection / Approval of Invoice should be
the invoice for payment approved / rejected
within 2 working days

3a. In case of PO based invoices, once invoice is recorded, invoice will be routed for Executive- Finance Invoice blocked / cleared NA
validation (3 way match- PO vs. Invoice vs. GRN ). In case invoice cannot be processed post 3 way match
due to price, quality, quantity variance it is sent back for validation and accuracy check.

5,6 Once the invoice is validated and approved if there is an existing advance payment Executive- Finance Application of advance Advance payment
against the PO or “on account” payment to vendor, invoice will be blocked for settlement payment to invoice should be applied and
of advance payment. invoice cleared within 1
Apply advance payment against the invoice (gross amount of advance to be applied). If working day of invoice
invoice amount and advance amount are equal, the invoice and advance payment would being blocked because
be cleared. of an existing advance
If advance is more than invoice amount, invoice will be cleared and balance amount will payment
transfer to vendor account.
If invoice amount is more than advance amount, advance would be cleared and balance of
invoice amount would be included in the payment
Once all invoices have been cleared for payment, payment is processed.)

Page 7
 Invoice Processing- IT Equipment
Process Flows Process Activities Templates

Start

1a. Invoice
1b. Seek 2a. Record invoice in
Procurement- received from 2. Documents 3b. Invoice is
confirmation ERP and pass entry for 3. PO based
Receipt of Goods/ Vendor along are valid and Yes No
from Marketing claiming necessary tax invoice? rejected
Services with supporting accurate?
team input credit Yes
documents

No Yes
3a. Invoice validation
4. Any
(3 way match) in ERP
discrepancy?
2b. Return invoice & and approval
Finance & Accounts

supportings to vendor
No

Finance & Accounts-

Advance payment
request

5a. Apply the

5. Advance
payment 6. Any balance 6a. Process vendor Finance & Accounts-
payment Yes Yes
against the amount? payment in ERP Payment Processing
processed?
invoice in ERP

No Finance & Accounts-

Statutory Payments

Page 8
 Invoice Processing- IT Equipment
Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLAs/

Performance Criteria

1. Finance team receives invoice along with supporting documents from Vendor Executive- Invoice with NA
Some of the supporting documents are listed below(illustrative list) Finance supporting
• Delivery Challan documents received
• User Confirmation
• Warranty Certificate
• For any queries, confirmation from Procurement department/User department is taken
• Others, if any

2. On receipt of invoice and supporting's, check for the following: Executive- Rejection / approval Invoice should be
Original invoice and supporting documents are provided. Finance of invoice for approved / rejected
processing within 2 working days of
Invoices are certified by authorised personnel from user department before it is sent to Finance. receipt

Correct PO / GRN number is mentioned on the invoice (PO / GRN number should be mentioned
on all invoices except those invoices which do not require a PO)

Date of receipt of invoice is mentioned on the invoice (critical in case payment terms are _ days
from date of receipt of invoice)

In case other valid documents / details are not available , either process the invoice after taking
the details from user department / Procurement department OR return the invoice and supporting
documents to Vendor/User department/ Procurement (as applicable) for providing all valid
documents / details (In case Finance decides to process invoices in spite of missing documents /
details, authorised personnel from Finance should mention on the face of invoice the reason for
doing so and such person should also signs and date such comments)

Page 9
 Invoice Processing- IT Equipment
Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLAs/

Performance Criteria

2a. Record the invoice in ERP and pass entry to claim necessary tax credit, if applicable Executive- Finance Recording of invoice in Invoice should be
ERP recorded the same day
when the invoice is
approved for
processing

3 In case of Non-PO based invoice, the invoices are rejected . Executive- Finance Rejection / Approval of Invoice should be
the invoice for payment approved / rejected
within 2 working days

3a. In case of PO based invoices, once invoice is recorded, invoice will be routed for Executive- Finance Invoice blocked / cleared NA
validation (3 way match- PO vs. Invoice vs. GRN ). In case invoice cannot be processed post 3 way match
due to price, quality, quantity variance it is sent back for validation and accuracy check.

5,6 Once the invoice is validated and approved if there is an existing advance payment Executive- Finance Application of advance Advance payment
against the PO or “on account” payment to vendor, invoice will be blocked for settlement payment to invoice should be applied and
of advance payment. invoice cleared within 1
Apply advance payment against the invoice (gross amount of advance to be applied). If working day of invoice
invoice amount and advance amount are equal, the invoice and advance payment would being blocked because
be cleared. of an existing advance
If advance is more than invoice amount, invoice will be cleared and balance amount will payment
transfer to vendor account.
If invoice amount is more than advance amount, advance would be cleared and balance of
invoice amount would be included in the payment
Once all invoices have been cleared for payment, payment is processed.)

Page 10
 Invoice Processing- Services
Process Flows Process Activities Templates

Start

1a. Invoice
1b. Seek 2a. Record invoice in
Procurement- received from 2. Documents 3b. Invoice is
confirmation ERP and pass entry for 3. PO based
Receipt of Goods/ Vendor along are valid and Yes No
from Marketing claiming necessary tax invoice? rejected
Services with supporting accurate?
team input credit Yes
documents

No Yes
3a. Invoice validation
4. Any
(3 way match) in ERP
discrepancy?
2b. Return invoice & and approval
Finance & Accounts

supportings to vendor
No

Finance & Accounts-

Advance payment
request

5a. Apply the

5. Advance
payment 6. Any balance 6a. Process vendor Finance & Accounts-
payment Yes Yes
against the amount? payment in ERP Payment Processing
processed?
invoice in ERP

No Finance & Accounts-

Statutory Payments

Page 11
 Invoice Processing- Services
Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLAs/

Performance Criteria

1. Finance team receives invoice along with supporting documents from Vendor Executive- Invoice with NA
Some of the supporting documents are listed below(illustrative list) Finance supporting
• Delivery Challan documents received
• User Confirmation
• Warranty Certificate
• For any queries, confirmation from Procurement department/User department is taken

2. On receipt of invoice and supporting's, check for the following: Executive- Rejection / approval Invoice should be
Original invoice and supporting documents are provided. Finance of invoice for approved / rejected
processing within 2 working days of
Invoices are certified by authorised personnel from user department before it is sent to Finance. receipt

Correct SO / SRN number is mentioned on the invoice (SO / SRN number should be mentioned
on all invoices except those invoices which do not require a SO)

Date of receipt of invoice is mentioned on the invoice (critical in case payment terms are _ days
from date of receipt of invoice)

In case other valid documents / details are not available , either process the invoice after taking
the details from user department / Procurement department OR return the invoice and supporting
documents to Vendor/User department/ Procurement (as applicable) for providing all valid
documents / details (In case Finance decides to process invoices in spite of missing documents /
details, authorised personnel from Finance should mention on the face of invoice the reason for
doing so and such person should also signs and date such comments)

Page 12
Invoice Processing- Services
Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLAs/

Performance Criteria

2a. Record the invoice in ERP and pass entry to claim necessary tax credit, if applicable Executive- Finance Recording of invoice in Invoice should be
ERP recorded the same day
when the invoice is
approved for
processing

3 In case of Non-PO based invoice, the invoices are rejected . Executive- Finance Rejection / Approval of Invoice should be
the invoice for payment approved / rejected
within 2 working days

3a. In case of PO based invoices, once invoice is recorded, invoice will be routed for Executive- Finance Invoice blocked / cleared NA
validation (3 way match- PO vs. Invoice vs. GRN ). In case invoice cannot be processed post 3 way match
due to price, quality, quantity variance it is sent back for validation and accuracy check.

5,6 Once the invoice is validated and approved if there is an existing advance payment Executive- Finance Application of advance Advance payment
against the PO or “on account” payment to vendor, invoice will be blocked for settlement payment to invoice should be applied and
of advance payment. invoice cleared within 1
Apply advance payment against the invoice (gross amount of advance to be applied). If working day of invoice
invoice amount and advance amount are equal, the invoice and advance payment would being blocked because
be cleared. of an existing advance
If advance is more than invoice amount, invoice will be cleared and balance amount will payment
transfer to vendor account.
If invoice amount is more than advance amount, advance would be cleared and balance of
invoice amount would be included in the payment
Once all invoices have been cleared for payment, payment is processed.)

Page 13
 Invoice Processing- Marketing Expenses
Process Flows Process Activities Templates

Start

1a. Invoice
1b. Seek 2a. Record invoice in
Procurement- received from 2. Documents 3b. Invoice is
confirmation ERP and pass entry for 3. PO based
Receipt of Goods/ Vendor along are valid and Yes No
from Marketing claiming necessary tax invoice? rejected
Services with supporting accurate?
team input credit Yes
documents

No Yes
3a. Invoice validation
4. Any
(3 way match) in ERP
discrepancy?
2b. Return invoice & and approval
Finance & Accounts

supportings to vendor
No

Finance & Accounts-

Advance payment
request

5a. Apply the

5. Advance
payment 6. Any balance 6a. Process vendor Finance & Accounts-
payment Yes Yes
against the amount? payment in ERP Payment Processing
processed?
invoice in ERP

No Finance & Accounts-

Statutory Payments

Page 14
 Invoice Processing- Marketing Expenses
Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLAs/

Performance Criteria

1. Finance team receives invoice along with supporting documents from Vendor Executive- Invoice with NA
Some of the supporting documents are listed below(illustrative list) Finance supporting
• Delivery Challan documents
• User Confirmation received
• Warranty Certificate
• For any queries, confirmation from Procurement department/User department is taken

2. On receipt of invoice and supporting's, check for the following: Executive- Rejection / approval Invoice should be
Original invoice and supporting documents are provided. Finance of invoice for approved / rejected
processing within 2 working days of
Invoices are certified by authorised personnel from marketing team before it is sent to Finance. receipt
Proof of performance of service shall be attached and the invoices

Date of receipt of invoice is mentioned on the invoice (critical in case payment terms are _ days
from date of receipt of invoice)

Ensure that the terms of agreement are adhered to in terms of provision of services and result of
service

In case other valid documents / details are not available , either process the invoice after taking
the details from user department / Procurement department OR return the invoice and supporting
documents to Vendor/User department/ Procurement (as applicable) for providing all valid
documents / details (In case Finance decides to process invoices in spite of missing documents /
details, authorised personnel from Finance should mention on the face of invoice the reason for
doing so and such person should also signs and date such comments)

Page 15
 Invoice Processing- Marketing Expenses
Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLAs/

Performance Criteria

2a. Record the invoice in ERP and pass entry to claim necessary tax credit, if applicable Executive- Finance Recording of invoice in Invoice should be
ERP recorded the same day
when the invoice is
approved for
processing

3 In case of Non-PO based invoice, the invoices are rejected . Executive- Finance Rejection / Approval of Invoice should be
the invoice for payment approved / rejected
within 2 working days

3a. In case of PO based invoices, once invoice is recorded, invoice will be routed for Executive- Finance Invoice blocked / cleared NA
validation (3 way match- PO vs. Invoice vs. GRN ). In case invoice cannot be processed post 3 way match
due to price, quality, quantity variance it is sent back for validation and accuracy check.

5,6 Once the invoice is validated and approved if there is an existing advance payment Executive- Finance Application of advance Advance payment
against the PO or “on account” payment to vendor, invoice will be blocked for settlement payment to invoice should be applied and
of advance payment. invoice cleared within 1
Apply advance payment against the invoice (gross amount of advance to be applied). If working day of invoice
invoice amount and advance amount are equal, the invoice and advance payment would being blocked because
be cleared. of an existing advance
If advance is more than invoice amount, invoice will be cleared and balance amount will payment
transfer to vendor account.
If invoice amount is more than advance amount, advance would be cleared and balance of
invoice amount would be included in the payment
Once all invoices have been cleared for payment, payment is processed.)

Page 16
 Invoice Processing- Branding & Advertisement
Process Flows Process Activities Templates

Start

1a. Invoice
1b. Seek 2a. Record invoice in
Procurement- received from 2. Documents 3b. Invoice is
confirmation ERP and pass entry for 3. PO based
Receipt of Goods/ Vendor along are valid and Yes No
from Marketing claiming necessary tax invoice? rejected
Services with supporting accurate?
team input credit Yes
documents

No Yes
3a. Invoice validation
4. Any
(3 way match) in ERP
discrepancy?
2b. Return invoice & and approval
Finance & Accounts

supportings to vendor
No

Finance & Accounts-

Advance payment
request

5a. Apply the

5. Advance
payment 6. Any balance 6a. Process vendor Finance & Accounts-
payment Yes Yes
against the amount? payment in ERP Payment Processing
processed?
invoice in ERP

No Finance & Accounts-

Statutory Payments

Page 17
 Invoice Processing- Branding & Advertisement
Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLAs/

Performance Criteria

1. Finance team receives invoice along with supporting documents from Vendor Executive- Invoice with NA
Some of the supporting documents are listed below(illustrative list) Finance supporting documents
• Delivery Challan received
• User Confirmation
• Warranty Certificate
• For any queries, confirmation from Procurement department/User department is taken

2. On receipt of invoice and supporting's, check for the following: Executive- Rejection / approval of Invoice should be
Original invoice and supporting documents are provided. Finance invoice for processing approved / rejected
within 2 working days of
Invoices are certified by authorised personnel from marketing team before it is sent to Finance. receipt
Proof of performance of service shall be attached and the invoices

Date of receipt of invoice is mentioned on the invoice (critical in case payment terms are _ days
from date of receipt of invoice)

Ensure that the terms of agreement are adhered to in terms of provision of services and result of
service

In case other valid documents / details are not available , either process the invoice after taking
the details from user department / Procurement department OR return the invoice and
supporting documents to Vendor/User department/ Procurement (as applicable) for providing all
valid documents / details (In case Finance decides to process invoices in spite of missing
documents / details, authorised personnel from Finance should mention on the face of invoice
the reason for doing so and such person should also signs and date such comments)

Page 18
 Invoice Processing- Branding & Advertisement
Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLAs/

Performance Criteria

2a. Record the invoice in ERP and pass entry to claim necessary tax credit, if applicable Executive- Finance Recording of invoice in Invoice should be
ERP recorded the same day
when the invoice is
approved for
processing

3 In case of Non-PO based invoice, the invoices are rejected . Executive- Finance Rejection / Approval of Invoice should be
the invoice for payment approved / rejected
within 2 working days

3a. In case of PO based invoices, once invoice is recorded, invoice will be routed for Executive- Finance Invoice blocked / cleared NA
validation (3 way match- PO vs. Invoice vs. GRN ). In case invoice cannot be processed post 3 way match
due to price, quality, quantity variance it is sent back for validation and accuracy check.

5,6 Once the invoice is validated and approved if there is an existing advance payment Executive- Finance Application of advance Advance payment
against the PO or “on account” payment to vendor, invoice will be blocked for settlement payment to invoice should be applied and
of advance payment. invoice cleared within 1
Apply advance payment against the invoice (gross amount of advance to be applied). If working day of invoice
invoice amount and advance amount are equal, the invoice and advance payment would being blocked because
be cleared. of an existing advance
If advance is more than invoice amount, invoice will be cleared and balance amount will payment
transfer to vendor account.
If invoice amount is more than advance amount, advance would be cleared and balance of
invoice amount would be included in the payment
Once all invoices have been cleared for payment, payment is processed.)

Page 19
 Payment Processing
Process Flows Process Activities Templates

Invoice Processing-
Assets, IT Equipment, 1. Download
Services, Marketing statement of due
Expenses, Branding & payments from ERP
Advertisement

3a. Prepare a list of all

payments to be made to
4. Online 2.Payment ICICI accounts and other 3b. Encrypt the file and
Yes No Yes
Payment? through iPay ? accounts in the standard save it on desktop
template of iPay
application
&Accounts

6a. Prepare a list of all No

payments to be made in a 3c. Log into ICICI portal
standard template 5a. Prepare manual and upload the payment
cheque and submit to file
authorized signatories
Finance

6b. Log into the Bank

portal and upload the 3d. Once payment file is
payment file uploaded, payment is
5b. Dispatch cheque to processed
vendor

6c. Submission of the

payment file uploaded
triggers a notification to 5c. Record the manual
two authorized signatories cheque payment in ERP
for approval

6d. On approval by the

7. Payment entry is made
signatories, payment is
in the ERP
processed by bank

End

Page 20
 Payment Processing
Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLAs/

Performance Criteria

1. Download statement of due dates of payments from ERP Finance team Listing of due Within 1 working day of
payments receiving due payments –
user departments

2,3 Check if the payment is through iPay, Finance team Payment disbursed Payment should be
disbursed within 1 working
If yes, follow the below steps day of receipt of approval
• Prepare a list segregating ICICI and other bank payments from user department
• Populate the standard template of iPay (ICICI bank)
• Encrypt the file and save on desktop
• Log into ICICI portal and upload the file
• Payment is processed
If no, proceed with other online payment or manual cheque payment

4,5 If payment is to be made by manual cheque, follow the below steps Finance team Payment disbursed Payment should be
• Prepare manual cheque and submit to authorized signatories disbursed within 1 working
• After signature, dispatch the cheque to vendor day of receipt of approval
• Record the payment in ERP from user department

6,7 • Prepare a list in the standard template Finance team Payment disbursed Payment should be
• Log into Bank portal and upload the file disbursed within 1 working
• Approval requested from authorized signatories day of receipt of approval
• On approval, payment is processed by bank from user department

Payment entry is made in ERP

Page 21
 Advance Payment Request
Process Flows Process Activities Templates

1. Advance to be paid Procurement

Start
against PO (PO generation)

2. Send the PO copy /

approved request to
Procurement

Finance

4a. Communicate
3. Submit to
reason for rejection
authorized personnel 4. Approved? No
to relevant
for approval
department

Yes

Finance & Accounts-

Invoice processing

Page 22
 Advance Payment Request
Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLAs/

Performance Criteria

Advance can be paid to vendor only against approved purchase order

1,2. Advance payment against an order, once the Purchase order is raised and approved, send copy of the Procurement NIL Request should be sent
approved PO to Finance for processing of advance payment and submit the same for the approval by to Finance 1 week
the authorised personal before the payment is
to be made
For details relating to raising and approval of PO refer PO generation process

3,4. In case it is rejected, the rejection is communicated to procurement and process is terminated. Executive- Rejection / Approval Request should be
In case request requires modifications, the request is returned to procurement for modification and re- Finance of advance payment approved / rejected
submission. request within 2 working days of
receipt of request
In case it is approved, advance payment is processed

Page 23
 Payroll Disbursement
Process Flows Process Activities Templates

No

3. Communicate 5a. Prepare a list of all

1. Calculate 4. Prepare Salary payments to be made to
Payroll- details of errors
salary 2. Changes disbursement sheet 5.Payment ICICI accounts and other
Payroll input Yes identified to HR/ Yes
computations for required? and send to Payroll through iPay ? accounts in the standard
and Processing Payroll to revalidate
sample cases for approval template of iPay
the output sheet
application

6. Online
Yes No
Payment? 5b. Encrypt the file
and save it on
desktop
No
7a. Prepare a list of
7b. Log into the Bank 6a. Prepare manual
all payments to be
portal and upload the cheque and submit to 5c. Log into ICICI
made in a standard
&Accounts

payment file authorized portal and upload the

template
signatories payment file

7c. Submission of the 6b. Dispatch cheque

payment file uploaded to vendor 5d. Once payment file
Finance

triggers a notification to is uploaded, payment

two authorized signatories is processed
for approval 6c. Record the
manual cheque
payment in ERP

7d. On approval by the 8. Payment made

signatories, payment is before month- Yes Payroll Accounting
processed by bank end ?

No

8a. Provision entry to Financial Statement

be made in the ERP Close Procedure

Statutory Payments

Page 24
 Payroll Disbursement
Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLAs/

Performance Criteria

1-4 On receipt of payroll file from Payroll Operations, check the salary computation of few employees Finance team Communication of Finance should revert to
to ensure accuracy (and not completeness). errors to Payroll Payroll (with identification
(To check for accuracy, Finance may even request Payroll to provide the supporting documents) of errors OR payment
In case any error are identified (based on such sample checks) return the file to Payroll for JV file sent to instruction and JV within 1
correction Payroll working day of receipt of
In case no errors are identified based on such sample checks, prepare payment instruction letter payroll output file from
and JV and send to Payroll for approval Payroll
The sampling methodology needs to be defined by Finance

5. Check if the payment is through iPay, Finance team Payroll disbursed Payment should be
If yes, follow the below steps disbursed within 1 working
• Prepare a list segregating ICICI and other bank payments day of receipt of approval
• Populate the standard template of iPay (ICICI bank) from Payroll
• Encrypt the file and save on desktop
• Log into ICICI portal and upload the file
• Payment is processed
If no, proceed with other online payment or manual cheque payment

6-8. If payment is to be made by manual cheque, follow the below steps Finance team Payroll disbursed Payment should be
• Prepare manual cheque and submit to authorized signatories disbursed within 1 working
• After signature, dispatch the cheque to vendor day of receipt of approval
• Record the payment in ERP from Payroll
• Make provisions in case payment is not made before month end

8. If draft calculation of the month’s payroll is available, provision entries are made based on draft Finance team Provision entries Provision entries are to be
calculation. made as on the last day of
If draft calculation is not available, previous months Payroll is taken as base and mapped with the month.
trend of last 6 months. Based on the above calculation , provision entries are made.
On processing of salary disbursement, provision entries are reversed and actual payment entries
are made

Page 25
 Payroll Disbursement
Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLAs/

Performance Criteria

7 • Prepare a list in the standard template Finance team Payroll disbursed Payment should be
• Log into Bank portal and upload the file disbursed within 1
• Approval requested from authorized signatories working day of receipt of
• On approval, payment is processed by bank approval from Payroll

Page 26
 Payroll Accounting
Process Flows Process Activities Templates

1. Prepare the payroll journal

Payroll entry based on salary
disbursement disbursement sheet and pass
journal entry in General Ledger.
& Accounts

Payroll Inputs
2. Draft journal entry to be
and Processing
shared with Head- Finance for
review and approval
Finance

Appropriate
3. Approved? No correction to be
made

Yes
Statutory
Payments

End

Page 27
 Payroll Accounting
Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLAs/

Performance Criteria

1-2 A standard format/template of the payroll journal entry should be maintained by the Executive Payroll Journal entry Within one working day of
Executive- Finance and every month the journal entry should be prepared in this format by Finance team in General Ledger receipt of Salary
entering the numbers as per the Salary Disbursement Sheet for the month. Disbursement Sheet.

The journal entry then is to be passed in General Ledger.

The drafted journal entry is to be sent to Head- Finance for review and approval.

3 If the Head Finance does not approve the drafted journal entry, appropriate corrections Finance & Approved journal entry Within one working day of
are to be made in the same by Executive Finance and again sent to the Head – finance Accounts team above
for review and approval.

Page 28
 Employee Loans & Advances
Process Flows Process Activities Templates

1. Employee makes a
/ Function

request for loan/

2.Approved? No End
advance and submits
to HoD for approval
Department

Yes
Start
2a. Approved request
is forwarded to
Finance for further
processing
&Accounts Human Resources

3. Finance to verify
4. Exceeds 4b. Details are
the eligibility,
maximum shared with Finance
maximum limit No
permissible as for preparation of
permissible as per
per policy? repayment schedule
the policy

Yes

Payroll Inputs &

4a. Request is 4c. Loan/ Advance Processing
rejected disbursed
Finance

Page 29
 Employee Loans & Advances
Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLAs/

Performance Criteria

1-3. Request for loan/advance is made by employee and submitted to HoD for approval. HoD Employee, Approved Within 2 working days
shall consider the following factors for approving the request (illustrative) : HoD loan/advance of request raised
1.Employee has completed 2 years of service at CLIENT & 1 year of advance request
2. Maximum limit permissible as per the policy
On approval, request is forwarded to Finance for processing
Request is closed in case of rejection by HoD

4,5. HR re-verifies the request considering the Employee loan/advance policy. If the amount Executive – Finance, Approved & Within 15 working days
requested for loan is within the limit specified as per policy, details are shared with Finance Head disbursed of approval for
Finance for preparation and re-payment schedule loan/advance loan/advance
If the amount requested for loan exceeds the amount specified in policy, request is
rejected
Thereafter, loan is disbursed

Page 30
 Statutory Payments
Process Flows Process Activities Templates

1. Based on the balances in

each of the statutory dues
Payroll Disbursement payable a/c, prepare
calculation sheet and arrive at
amount payable

Payroll Accounting 2. Prepare statutory payment

challans and attach detailed
Finance and Accounts

breakup of the same and the

calculation sheet and send to
Invoice Processing – Head-Finance for approval
Assets, IT Equipment,
Services, Marketing
Expenses, Branding &
Advertisemnet

3b. Appropriate
No 3. Approved?
corrections are made
Revenue Process:
Invoice Processing

Yes

3a. Statutory dues are

remitted with the respective
Payment Processing
departments on or before the
applicable due dates

Page 31
 Statutory Payments
Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLAs/

Performance Criteria
1. Balances in each of the statutory payable accounts: Service Tax payable a/c, Service Tax Finance Team Statutory Payments 3 days prior to the
receivable a/c TDS Payable a/c, Provident Fund payable a/c, Profession Tax payable a/c Calculation sheet respective due date.
and ESI payable a/c are considered and calculation sheet is prepared with regard to the
payable pertaining to the previous period.

1. Provident Fund:
Equal contribution of 12 % of basic salary and dearness allowance
from both employer and employee side has to be remitted to the PF
account along with admin charges of 1.36% within 20th day of the
month.

2. Profession Tax:
Profession Tax should be paid as per the limits mentioned in the

below table on or before 10th day of the month

Salary PT Payable
(i) Up to INR 15,000 Nil
(ii) From INR 15,001 to INR 20,000 INR 150 per month
(iii) Above INR 20,000 INR 200 per month
3. ESI:
ESI shall be applicable only to those employees whose salary is below
INR 15,000.
Contribution @ 1.75% and 4.75% as employee and employer
contribution respectively should be made to ESI account on or before
21st day of the month

Page 32
 Statutory Payments
Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLAs/

Performance Criteria

4. TDS:
TDS as per the rates mentioned in the below table should be
deducted at the time of making payment (either to employees or to
vendors). Such TDS deducted in the previous month has to be
deposited on or before 7th of the following month except for the
month of march which should be deposited on or before 30th April.
Type of payment & Threshold TDS Rate
Individual
& HUF Others No PAN
Rent
Threshold:INR 1,80,000 per annum 10% 10% 20%
Salaries As per the Income Tax slab
Professional payments rates
Threshold: INR 30,000 per annum 10% 10% 20%
Contract payments
Threshold: INR 30,000 (Single
payment) and aggregate of
5. Service Tax: per annum
INR1,00,000 1% 2% 20%
Service Tax payable with regard to the services rendered in the
previous month should be calculated by considering the inputs form
the Service Tax payable GL and service tax credit should be deducted
from the amount of service tax payable as per the balance in Service
Tax receivable GL.
Service Tax amount due should be remitted on or before 6th of the
following month except for the month of march where service tax has
to be paid by 31st of march.

Page 33
 Statutory Payments
Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLAs/

Performance Criteria
6. Advance Tax:
Advance tax shall be computed with the help of projected financial
statements of the company every quarter. Advance tax payable and
due dates for the same are mentioned below:

Due date of installment Liability

On or before 15 th June Not l ess than 15% of Advance Tax Li abi l i ty

On or before 15 th Not l ess than 45% of the Advance Tax
September Li abi l i ty as reduced by the amount, i f any,
pai d i n the earl i er i nstal l ment
On or before 15 th Not l ess than 75% of the Advance Tax
December Li abi l i ty as reduced by the amount, i f any,
pai d i n the earl i er i nstal l ment
On or before 15 th 100% of the Advance Tax Li abi l i ty as reduced
March by the amount, i f any, pai d i n the earl i er
i nstal l ment

2. Challans for statutory payment are prepared and the challans along with calculation sheet Finance Team Calculation sheet is 3 days prior to the
and detailed breakup is sent to Head-Finance for review and approval. sent to Head- respective due date.
Finance for approval

3. In case of rejection by Head-Finance, appropriate corrections are made and resent to Head- Finance Team Payment processing On the due date
Finance of statutory
After approval by Head-Finance, statutory dues are remitted with the respective payments is initiated
departments on or before the applicable due dates as per the payment processing.

Page 34
 Debit Note Management Process Flows Process Activities Templates

2. Submit request
1a. Identify need
Start to authorized
User department

to raise debit note

personnel

3. Approved?
No

3b. Inform Vendor

with reason of Yes
rejection
3a. Send approved
request to Finance

4. Submit the 5b. Return the

request to request with
5. Approved? No End
authorized reason for
&Accounts

personnel rejection

Yes
Finance

6. Take signature of 7. Dispatch the

5a. Raise debit
authorized personnel signed debit note
note in ERP
on debit note to vendor

1(b). Auto-
Procurement-
generation of
Purchase Returns
debit note In ERP

Page 35
 Debit Note Management Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLAs/

Performance Criteria

1a,b. Processing of debit memos can be initiated through 3 different mechanism: User Department/ ERP Auto processed debit NA
notes
User department identifies the need to raise debit note on the vendor
• Debit note which have to be raised to price variance at the time of invoice Identification of need to
processing issue debit note
• Auto generation of debit note from system based on pre-defined criteria (e.g.
each time there is a purchase return)
• Debit notes can be raised for returns, volume rebates; retrospective price
reductions etc.

2,3 In case where User Department identifies the need to raise a debit note, present User Department DN request rejected DN request should be
request to authorised personnel for approval for further processing of debit note. DN request approved approved / rejected within
and forwarded to 2 working days of receipt
If request is rejected, vendor is informed about the rejection and process is Finance of request
terminated

If DN requires modification, request is sent back to requestor to incorporate the

required changes and re-submit for approval

If DN is approved and signed off forward request to Finance department for DN

processing

4-5b. Present request to authorised personnel for approval. If it is rejected, return request Finance DN request rejected DN request should be
to user department with reason for rejection. DN request approved approved / rejected within
If the request requires modification, return request to user department to incorporate 2 working days of receipt
the changes and re-submit to Finance (Step 2 & 3 are repeated) of request
In case the request is approved, further processing is under taken

Page 36
 Debit Note Management Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLAs/

Performance Criteria

5a. For the following cases: Executive-Finance Creation of debit note in DN should be created
Where invoice cannot be processed and paid due to 3 way mismatch and a debit ERP within 2 working days of
note is required to be raised to account for the difference, and approval of user
A debit note is to raised in ERP post approval of the request received from User departments request OR
department System blocking of invoice
Once the debit note is created (manually or automatically by system), system for 3 way mismatch
changes the available budget accordingly. TDS is not refunded when debit note is
raised

6,7 Present DN created manually or auto-generated from system to authorised User Department Dispatch of debit note DN should be signed and
signatory(s) for signature to vendor dispatched within 1 day of
creation of DN in system
(DN issued without the signature of authorised signatory(s) are not valid and
binding on CLIENT).

Post signature of authorised signatory(s) dispatch Debit Note to vendor

Page 37
Accounts Receivable
 Collections- Prepaid
Process Flows Process Activities Templates

1.Amount is collected from

Revenue process: customer & evidence of collection
Sales Order & deposit is uploaded in sales
order in ERP
Sales team

2.Automated notification of receipt

is received by Finance

3a.Invoices remain in draft status

Take bank statement 3.Is collection
and necessary reconciliation is
and check if collection is reflected in Bank No
performed with respective sales
Finance team

reflected in it statement?
personnel

Yes

3b.Invoices are marked as paid,

Product is activated and intimation End
is sent to Sales team

Page 39
39
 Collections- Prepaid
Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLA/

Performance criteria

1,2 Amount is collected from customer in form of – Executive – Sales Collection and Deposit – Next banking
1. Cheque team deposit of amount day
2. Cash from customer
3. NEFT
4. Credit/Debit card
5. EMI
6. ECS
Evidence of collection and deposit is uploaded in sales order in ERP which is in the
following forms-
7. Cheque - Cheque deposit receipt
8. Cash - Cash deposit receipt
9. NEFT - Reference number
10. Credit/Debit card - Transaction ID/Reference number
11. EMI - Reference number
12. ECS - Transaction ID
Automated notification of collection and deposit is sent to Finance team through ERP

3 Finance team obtains bank statement and verifies collection of deposited amount in Bank Executive - Payment -
statement Finance confirmation
If bank statement does not reflect the deposited amount, reasons for the same are
identified (eg: Bounced cheques / uncleared cheques/etc.) and communicated to Sales
team for follow up with customers
If bank statement reflects the deposited amount, Finance marks the Invoice as paid in ERP
and activates the Product
Total sales is accounted as deferred and monthly revenue is to be calculated & accounted
for .

Page 40
 Collections- Postpaid
Process Flows Process Activities Templates

1. ERP auto 2. Initimate Sales

Finance &
Accounts

8.Is collection 8(a).Collection

generates report team for collection of
Start No reflected in bank Yes entry is made in
for overdue the overdue
statement? ERP
outstanding outstanding

4a. Obtain 4b. Alternate

4. Is customer 4c. Is customer
3. Call customer No alternate number number Yes
contactable? contactable?
from CRM available?

Yes No A No

6. Is payment 6a. Update ERP 7.ERP sends an

5.Conduct field
A being made Yes with payment automated notification
visit
now? details to Finance
Sales team

No

6(b)Intimate
Sales head

6(c).Sales head 6(d). If suspended,

decides if the service to be
End
services are to be resumed on
suspended collection

Page 41
41
 Collections- Postpaid
Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLAs/

Performance Criteria

1 ERP automatically generates bill cycle wise report of all customers with overdue Executive- Finance Overdue outstanding -
outstanding amount 1 day after due date. report

2-5 Respective Sales executive shall be intimated of the overdue status. Sales executive Sales Executive Follow up on collection -
initiate contact by calling the customer.
Note: 3 attempts will be made to contact customer on different days at different time.
If customer is not contactable, obtain alternate number from Customer Relationship
Manager and contact the customer on this alternate number.

If customer is not contactable on alternate number, make a field visit.

6 If customer makes the payment, ERP is updated with collection details. If customer Sales Executive Collection Within 1 working day of
does not make the payment, Sales head is intimated. receipt of notification
Sales head shall decide if the services are to be suspended. If suspended, services
shall be resumed on collection.

7, 8 ERP sends an automatic notification to Finance on updation of collection details by Executive- Finance Collection entry in ERP -
Sales Executive. Finance Executive verifies if the collection stated in ERP is reflected
in the Bank Statement. If yes, collection entry is made in ERP and if no, Sales
executive is intimated for follow up with customer.

Page 42
42
Debtors ageing & provisioning
Process Flows Process Activities Templates

4. Depending on the criticality

1. Report of ‘Invoices of outstanding balances,
in draft ’ is extracted Finance shall undertake steps
Start
from ERP & shared for provisioning/ recovery of
with Sales team debtors
&Accounts

5. Is the amount
No
recoverable?
Finance

Yes

6. Do the debtors
age for > 12 No
months?

Yes

6b. Entries passed in

6a. Recovery steps to ERP for provisioning
be undertaken of debtors as per
policy

2. Review details and

give comments based on
Sales team

the follow-up with Bad Debts Write Off

Customers/ Partners

3. Weekly report on the

status of outstanding
debtors with reasons
recorded is shared by
State head with Finance
team

Page 43
Debtors ageing & provisioning
Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLA/

Performance criteria

1 ‘Invoices on Hold’ are extracted from ERP and shared with sales team for monitoring of Executive – Finance - Every week
aged debtors team

2,3 Sales team follows up with the customers/debtors to identify tentative date of receipt and Executive – Sales List of debtors pending Every week
shares list of debtors pending for collection to Finance for taking appropriate steps team collection

4 Finance team considers following factors (illustrative) to determine treatment of debtors Executive – Finance List of debtors to be -
(provisioning or writing off) : team & Head – provided for or written
1.Relationship with customers/debtors Finance team off
2.Credibility of customers/debtors in market
3.Other factors as applicable

5,6 If the amount receivable can not be recovered ; it is written off as bad debts & entry is Executive – Finance Entry for bad debts -
made in ERP team & Head - written off/ provision for
If the amount receivable is recoverable and ages for more than 12 months ; provision for Finance bad and doubtful debts
doubtful debts is created and recovery steps are undertaken as follows (illustrative) : in ERP
1.Appoint a Collection agency
2.Legal suit
3.Others as applicable
If the amount is recoverable but ages for less than 12 months ; entry is passed in ERP
for provision

Page 44
Bad Debts Write Off
Process Flows Process Activities Templates

Collections

Yes
Finance team

1. Debtors ageing 5. Review the amount 6. Make the

report is taken and 2. Statement of of bad debts in accounting entry in 7. Update GL in ERP
Debtors
process to be Amount probable bad debts is collaboration with the ERP
ageing and No
undertaken to recoverable? prepared and shared Sales head and seek
Provisioning
recover balance is with Sales head management approval
ascertained for write off End
Sales Team

3. Review details and

recommend the debts 4. Forward statement
that cannot be recovered to Finance for further
(also seek confirmation analysis of bad debts
from the party)
CxO Group

No c
Management
Approves?

Page 45
Bad Debts Write Off
Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLA/

Performance criteria

1,2 Debtors ageing report is taken and process to be undertaken (illustrated as below) to recover balance Finance Recovery of Nil
is ascertained. balance
Illustrative: Statement of
Follow up on customer in collaboration with sales team either through e-mail or meetings. Identify the Probable debt
options of recovery balance
1.Appoint a Collection agency
2.Legal suit
3.Others as applicable
If the amount is recoverable , then the sum is collected from the debtor by rescheduling the date for
payment.
If the amount is not recoverable then a statement of probable bad debts is prepared and is shared with
the sales head .

3,4 Review details and recommend the debts that cannot be recovered and forward the statement to Head Sales Statement of Within 2 working days
Finance for further analysis of bad debts. The details shall also be confirmed from the party. irrecoverable from receipt of
bad debts statement from Sales
Head

5 Review the amount of bad debts in collaboration with the sales head and seek management approval Finance Review of bad Within 2 working days
for write off. Finance to note the following steps: debts amount from receipt of
Any receivable amount overdue by more than 360 days is considered for small customers and 540 days statement from sales
head
for large customers to be non-recoverable and hence will be written off
The Bad Debit Write Off will follow the steps.
1.Reverse the Provision
2.Post the Bad Debt Write Off General Ledger posting
3.If the Write off is partial. Reverse the original provision
amount and post the balance provision amount.

Page 46
Bad Debts Write Off
Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLA/

Performance criteria

6,7 If CxO Group approves the write off, an accounting entry shall be made in the ERP and the GL shall CxO Group CxO Group Within 2 working days
be updated in the ERP. approval from the receipt of the
If the CxO Group does not approve the write off review the amount of bad debts is reviewed again statement from
and the process is followed up. Finance.

Page 47
Debtors balance reconciliation
Process Flows Process Activities Templates

1. Obtain balance
confirmation from customers
Start
and statement of company’s
account in customer books

2. Mention reasons/remarks
against customers for which
confirmation could not be
obtained
&Accounts

3. Reconcile customer
balances and prepare list of
variances
Finance

4. Review the variance report

and determine corrective
actions to be taken

5b. Necessary 5a. Intimate customer for

rectification entries are 5. Rectification entries to making necessary entries
Yes No
made in ERP be made in books? in customer’s books

End

Page 48
Debtors balance reconciliation
Process Flows Process Activities Templates

Sl. Description Responsibility Output Internal SLA/

No. Performance criteria

1,2 Based on discussion with respective Sales Heads, parameters are decided for debtor Executive – Finance & 1.List of customers -
selection for reconciliation; for example – the total value of sales made with selected Sales Head selected for
customer should constitute at least a specified percentage of total revenue. reconciliation
Balance confirmation and account statement of CLIENT in books of the selected 2.Request for balance
customer is obtained through a letter/e-mail ; reasons are recorded against names of confirmation
debtors from whom confirmation could not be obtained

3 Customer balances obtained are reconciled with the balances in CLIENT’ books of Executive – Finance 1.Balance Within 2 working days of
accounts and variances are identified which could be due to following reasons confirmations receipt of balance
(illustrative) : 2.Variances in confirmation from
customer balance customer
1.Payment received but not accounted
2.Invoice raised but not accounted by customer/debtor
3.Missing entries/different amounts
4.Cheques in transit
5.Others

4,5 Variance found in customer balances are reviewed for taking appropriate measures for Executive – Finance, 1.Rectification entries Within 2 working of
reconciliation. Head – Finance, in ERP receipt of balance
If any rectification is required, entries are made in ERP Sales Head 2.Intimation to confirmation from
customer to make customer
If rectification is not required, intimation is sent to customer for making appropriate
adjustments
adjustment in their books of accounts

Page 49
Credit note management
Process Flows Process Activities Templates

1. Need to raise credit

note is received from
Start customers; based on
Sales team

which internal
discussions take place

2a. Intimation is sent

2. Is credit note to customer with
3c. Credit note is sent No
End to be raised? reasons of rejecting
to customer
credit note request
Yes

3a. Credit note is prepared,

sign off is obtained from 2b. Details are
Finance team

appropriate authority and communicated to

sent to Sales team for Finance for review
delivering to customers and approval

Yes
3b.Entries passed in
ERP with credit note 3.Approved? No
details

Page 50
Credit note management
Process Flows Process Activities Templates

Sl. Description Responsibility Output Internal SLA/

No. Performance criteria

1 Customers intimate Sales team; the need of raising credit note which could be due to the Executive – Sales Discussion on credit Within 3 working days of
following reasons (illustrative) : team & Sales Head note request claim made by customer
1.Rejection of service due to discrepancy in specification received from for credit note
2.Mistake in invoice customer
3.Cancellation of service
Based on the same, internal discussions & understanding of the reasoning f credit request
by customer takes place within the Sales team to determine if credit note is to be raised or
not

2 If the Sales team concludes that credit note is not to be raised; which could be due to Executive – Sales Credit note to be Within 3 working days of
following reasons (illustrative); team & Sales Head raised or not claim made by customer
1.Erroneous calculation of credit amount by customer for credit note
2.Others
Intimation is sent to customer with reasons of rejection of credit note request
If credit note is to be raised, details of the same are forwarded to Finance for approval

3 If the Finance team does not approve of credit note to be raised to customer, intimation is Head - Finance 1.Intimation sent to Within 1 working day of
sent to customer with reasons of rejecting credit note request customer (in case of preparation/rejection of
If the Finance team approves of credit note request, credit note entry is passed in ERP, rejection) credit note
credit note is prepared & sign off is obtained ; thereafter it is sent to Sales team for 2.Credit note
delivering to customer

Page 51
Cash & Bank
Opening and closing of bank accounts
Process Flows Process Activities Templates

5. Obtain signature of 6. Receive details, 7. Receive account opening /

8. Prepare Bank GL
authorized signatories documents and confirmation closing documents and
Start structure for ERP (in
and forward to bank from bank for opening / balance funds. Deposit the
case of opening of
along with BR & closing of bank a/c and funds and account in ERP(in
a/c)
Finance and Accounts

supporting documents forward the same to finance case of closing of a/c)

1. Identify
requirement for No
bank account
opening / closing 10.
Approved? 9. Submit GL structure
for opening / closing for
approval to authorized
2. Forward original / personnel
Yes Yes
revised request via
e-mail to bank
11. Create / Close
GL structure for
End
new / closed bank
a/c

3. Review the 4.
CxO

No
request Approved?

Page 53
Opening and closing of bank accounts
Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLA/

Performance criteria
1,2 Identify requirement for bank account opening / closing and forward request via e-mail Finance team – Request for bank NA
to CxO group. The request should contain the following details: Executive account opening /
• Justification for opening / closing the a/c closing
• Nature of the account (in case of opening of a/c)
• Proposed authorized signatories (in case of opening)
• Per transaction limit and overall limit (in case of opening)
• Proposed bank and branch (in case of closing)

2 On receipt of request for bank account opening / closing, review the request to ensure Finance team – Reviewed request for NA
that all details required to be provided in bank account opening / closing form are Authorized Personnel bank account
mentioned and request is made on valid grounds.
If the request is approved, forward request to CxO group for approval
At the time of closing the bank accounts the unutilized bank stationary to be returned to
the bank The unutilized stationary details should be approved by authorized signatories

3,4 Review the request for bank account opening / closing. CxO group Approved request and NA
authorized signatory
In case the request is approved, Board passes resolution approving bank account
opening / closing.

5 On receipt of attested copy of board resolution obtain signature of authorized Finance team – Request to bank for Finance should submit
signatories on request for bank account opening / closing and forward to bank along Authorized Personnel account opening / the request to bank
with board resolution and other supporting documents. (E.g. in case of bank account closing within 5 working days
closing, details for remittance of balance funds has to be provided to the bank) of receipt of attested
board resolution

6,7 Receive details, documents and confirmation from bank for opening / closing of bank Finance team –
a/c (e.g. in case of opening of a/c the account opening kit; in case of closure Authorized Personnel
confirmation of closure with cheque for balance amount).. In case online user ID and
password is provided for authorized signatories, the same is couriered by the bank
directly to the authorized signatories and confirmation obtained for receipt of the user ID
and password

Page 54
Opening and closing of bank accounts
Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLA/

Performance criteria

8,9 In case of bank account opening, prepare the bank GL structure for creation of Finance team GL structure for account Within 2 working days of
bank master in ERP and in case of bank account closing provides GL structure of opening / closing receiving the account
bank account to be closed and submits to authorized personnel for approval. opening / closing details
from Treasury

10 Review the request Authorised personnel GL structure for account Within 2 working days of
If modification required, return to Finance for re-submission (Step 12-13 are opening / closing receiving the account
repeated) opening / closing details
from Treasury
If request is valid, approve and sign the request and forward the request to Finance

11 On receipt of approval, create / close GL structure for new / closed bank a/c and Finance Executive GL structure for account Within 2 working days of
confirm to authorized personnel (who approved the GL structure) opening / closing receiving the account
opening / closing details
from Treasury

Page 55
Change in bank accounts
Process Flows Process Activities Templates

Start
No

2. Fill bank change

1. Identify Changes 3.
request form and
Finance and Accounts

required in bank Approved?

submit to authorised
details
personnel for approval

6. Send approved
8. Create /amend
change request and 9.
7. Require change request and 10. Make necessary
supporting documents Yes Approved? Yes
change in ERP? submit for approval to changes in ERP
to bank and receive
authorized personnel
confirmation from bank
Yes

Yes No End

4. Review the 5.
No
CxO

request Approved?

Page 56
Change in bank details
Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLA/

Performance criteria

1,2 Identify changes required in bank details. (E.g. Change in name of legal entity, change Finance team – Request for change in Request should be
in authorized bank signatories etc.) Executive bank details submitted for approval
within 1 working day of
Fill bank change request form and submit to authorized personnel for approval. identification of change
In the meantime Finance stops all payments till the time the changes have been requirement
incorporated by bank and confirmed to Finance

Hand In- Receive information from HR department on separation / exit of authorized

bank signatory.

3 Review request for change in bank details. Authorized Personnel Reviewed request for NA
bank account
In case authorized personnel determines that change to bank details are not required,
he / she rejects the request. In case modifications to bank change form is required,
authorized personnel returns the form to Finance for modification. Finance incorporates
the modifications and re-submit the form.

On approval Finance forwards the approved request form to CxO group

4,5 Review and approves / rejects the request for changes in bank details. CxO group Approved request and NA
authorized signatory

6 On receipt of attested copy of board resolution approving change in bank details, send Finance team – Request to bank for Finance should submit
approved change request and supporting documents to bank Authorized Personnel changes in bank details the request to bank
Receive confirmation from bank for incorporation of the changes and forward a copy of within 5 working days
the confirmation to Finance. Bank confirmation for of receipt of attested
In case online user id and password is provided for authorized signatories, the same is incorporation of board resolution
couriered by the bank directly to the authorized signatories and confirmation obtained changes
for receipt of the user-id and password

Page 57
Change in bank details
Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLA/

Performance criteria

7,8 Evaluate whether change in bank detail requires change in ERP. In case change in Finance team Approved ERP change Submit change request
Oracle bank structure is required, prepare and submit ERP change request form to request form form within 2 days of
authorized personnel. receipt of confirmation
from bank

9 Review the request Authorised Approval / Rejection of Within 1 working day of

If modification required, return to Finance for re-submission (Step 12-13 are repeated) personnel change request receipt of request
If request is valid, approve and sign the request and forward the request to Finance

11 Effect necessary changes to Bank Master in Oracle and confirm to Corporate / Regional Finance Executive Change in bank details in Within 2 days from
Finance (the process of incorporation of changes in Oracle would follow the IT change Oracle receipt of approved
request process involving changes in test server, UAT, move to production server etc.) Oracle change request
form from Finance
On receipt of approval, create / close GL structure for new / closed bank a/c and confirm
to authorized personnel (who approved the GL structure)

Page 58
Bank Reconciliation Process Flows Process Activities Templates

2 1

3. Coordinate with bank /

1. Receive /
2. Identify open other departments to
Download bank 4a. Identify revisions 5. Account the open
bank debits and ascertain validity and 4.Valid and
Start statements and No to be made to bank debits and credits in
credits in bank accuracy of open debits accurate?
download bank GL statement ERP
statement and credits in bank
details from ERP
statement

Yes

8b. Consolidate
changes required in
Finance and Accounts

8a. Identify revisions

bank statement and
to be made to bank 2
issue instructions to
statement
bank for revisions
along with details

No
1

6. Identify
9. Prepare rectification JV; 10. Prepare list of 11. Identify stale cheques
transaction with
8.Incorrectly take approval of cheques issued but and pass reversal entry in
difference in amount 7.Differences
No Yes recorded in Yes authorized personnel and not encashed and ERP. Inform Procurement
recorded in bank exists?
GL? pass the rectification cheques deposited team about stale cheque
statement and bank
entry in ERP but not cleared with details
GL

No

12. Prepare / amend

14. File signed and
BRS and submit to 13.
Yes dated copy of the End
authorised personnel Approved?
BRS
for review

Page 59
Bank Reconciliation
Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLA/

Performance criteria

1 At defined frequencies (to be defined in the policy) receive hard-copy of bank Finance team NIL NA
statements / downloads bank statements from on-line bank account and download
the bank GL details from ERP

2,3 Identify open bank debits (e.g. bank charges debited in bank statement but not Finance team Identification of open bank Departments to provide
recorded in books) and credits (e.g. direct deposits by customer) in bank statement debits and credits required information
and coordinate with bank / other departments to ascertain validity and accuracy of within 1 working day of
open debits and credits in bank statement (e.g. checking with sales on total request
collections from customer)

4,5 Based on inputs received from bank / departments evaluate if an open debit / credit Finance team Identification of items to be Within 1 working day of
in the bank statement is valid and accurate. In case any open debit and credit is not revised in the bank receipt of details from
valid, identify such items as items which needs to be revised in the bank statement. statement / bank / departments,
Accounting of open debits account the transaction
For valid open debits and credits record the same in books of accounts in ERP
and credits in ERP in ERP

6,7 After reconciling open debits and credits; identify transaction with difference in Finance team NIL Resolve all inaccurate
amount recorded in bank statement and Bank GL a/c. transactions within 3
working days of
identification of
inaccuracies

8-9 In case, transaction with differences exist and are incorrectly recorded in GL, Finance team Rectification JV in ERP Resolve all inaccurate
prepare rectification JV; take approval of authorized personnel and pass the transactions within 3
rectification entry in Oracle. working days of
identification of
inaccuracies

Page 60
Bank Reconciliation
Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLA/

Performance criteria

8a-8b In case transaction with differences exist and are incorrectly recorded in bank statement, Finance team Receive revised Resolve all inaccurate
identify such items as items which needs to be revised in the bank statement. statement from bank transactions within 3
Consolidate all items which needs to be revised in the bank statement (open debit / working days of
credit and incorrect value) and send instruction to bank for revision of bank statement identification of
along with details of the revision required. inaccuracies
Receive revised bank statement from bank and check to ensure all revisions have been
incorporated

10-11 After resolving inaccurate transactions, prepare list of cheques issued but not encashed Finance team List of cheques issued NA
and cheques deposited but not cleared. but not encashed.

Also identify stale cheques and pass payment reversal entry in Oracle. Cheques deposited but
not cleared
Informs Supply Chain Management / Contracting department about stale cheque to
enable them to contact the vendor and ascertain the reason for non-encashment of the Reversal of stale
cheque cheques in Oracle

12-14 Prepare bank reconciliation statement and submit to authorized personnel for review. Finance team Approved Bank Review process should be
Reconciliation completed within 1 working
Statement day of receipt of Bank
In case modifications are required based on review incorporate the modifications and re- Reconciliation Statement
submit for approval. On approval, file signed and dated copy of the bank reconciliation
statement.

Page 61
Cash Verification
Process Flows Process Activities Templates

2.Obtain cash tracker

5. Sign and date the 6. Get the cash sheet
from Finance 3.Obtain cash tracker 4.Undertake physical
cash sheet signed and dated by the
department containing from User departments verification of cash
mentioning any user department 7. Complete physical
opening balance, containing opening balances available
discrepancies noted personnel. Leave a copy verification exercise
withdrawals, issues to balance, receipts, issues with User
and reasons for the with the user
Authorized Personnel

User department and and closing balance department

same. department
closing balance

8.Consolidate User 9.Undertake physical 10. Sign and date the 11. Get the cash sheet 12. Update discrepancy
department cash sheet verification of cash cash sheet mentioning signed and dated by the summary sheet with
and prepare a summary balances available any discrepancies noted Finance department discrepancies noted in
of discrepancies with Finance and reasons for the personnel. Leave a copy Finance department
identified department same. with Finance department cash sheet

No

12a.Forward Cash sheets 13.Submit Cash

and copy of cash Reconciliation findings
reconciliation findings (if report (if any) to
any) report to Finance authorised personnel for
review
Finance and Accounts

1.Appoint independent 12b. File cash sheets and

personnel to conduct account for the
physical verification End difference after taking
approval of authorized
personnel

Start
No

16. Send the details of

the missing cash and 15. Action to 14.Review the Cash
employee concerned to Yes be taken against Reconciliation findings
HR operations for employee? Report
appropriate action

Page 62
Cash Verification Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLA/

Performance criteria

1 Appoint personnel, independent of managing cash balances, to conduct physical Finance team Appointment of NIL
verification of cash balances. Authorized Personnel

2,3 Obtain cash tracker maintained by Finance department containing opening balance, Authorized NIL NIL
withdrawals from bank, issues to user departments and closing balance of cash. Also obtain Personnel
the cash tracker maintained by user departments containing opening balance, receipts from
Finance, issues for expenses incurred and closing balance.

4-8 Undertake physical verification of cash balances available with user department. Perform Authorized Cash verification report Verification should be
the following checks: Personnel for cash with user completed within the
• The receipts mentioned in the user department cash sheet tallies with the issue to the departments timeline communicated
particular department mentioned in Finance department cash sheet by Finance
• Opening balance tallies with the reviewed and signed off closing balance of previous
period
• Cash sheet is updated for all issues and valid supporting exists for all issues. In case
cash sheet is not updated for all issues, user department has to update the cash sheet.
• Closing balance according to cash sheet tallies with the physical cash balance.

Note discrepancies, if any, on the cash sheet along with the reason for the discrepancy.
Sign and date the cash sheet and get the same signed and dated by user department

After performing physical verification for all departments, consolidate all cash sheets and
prepare a summary sheet of observations

Page 63
Cash Verification
Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLA/

Performance criteria

9 -12 On completion of cash verification of balances maintained by various user departments Authorized Cash verification sheet Verification should be
undertake physical verification of cash balances available with the respective Finance Personnel for cash with Finance completed within the
department. Perform the following checks: department timeline communicated
• The receipts mentioned in the finance department cash sheet tallies with the by Finance
withdrawal reflecting in the bank statement
• Opening balance tallies with the reviewed and signed off closing balance of previous
period
• Cash sheet is updated for all issues and valid supporting exists for all issues. In case
cash sheet is not updated for all issues, cashier in finance department has to update
the cash sheet. The issues to user departments match with the receipts mentioned in
user departments cash sheet.
• Closing balance according to cash sheet tallies with the physical cash balance and
balance in ERP.
Note discrepancies, if any, on the cash sheet along with the reason for the discrepancy.
Sign and date the cash sheet and get the same signed and dated by finance department
Include the discrepancies noted during physical verification of cash with Finance
department in the discrepancy summary sheet prepared for user department

12a, 13 In case any discrepancy has been identified for all the physical verification performed for Authorised Cash reconciliation Report should be
the period covering user departments and Finance, prepare a cash reconciliation finding personnel findings report completed within the
report and submit to authorized personnel for review and further action. timeline communicated
by Finance
The report should contains:
• The department in which the discrepancy was noted
• Amount involved
• Justification provided for the discrepancy
• Auditor’s comments
•Also forwards all the signed off cash sheets to Finance department along with copy of the
cash reconciliation finding report

Page 64
Cash Verification
Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLA/

Performance criteria

14 -16 On receipt of cash reconciliation findings report from authorized personnel, review the Authorised personnel Action to be taken Within 3 working days of
report . against particular receipt of the findings
employee(s) / report from the auditor
In case any action has to be taken against any particular employee, send the details of Approval for the
the case to HR department for conducting disciplinary proceedings against the employee discrepancies
as per policy

In case no action has to be taken communicate approval for the discrepancies to

Finance.

12b In case of any discrepancy, based on the instruction received from authorized personnel Finance Accounting for cash Accounting entry should
(see narrative above), pass accounting entry for the difference (either record it as loss of differences be passed within 1
cash OR record is a receivable from the employee). working day of receipt of
instruction from
File the cash sheets and the cash verification findings report authorised personnel

Also file authorized personnel’s approval for the discrepancies in the cash verification file

Page 65
Fund Flow Forecasting
Process Flows Process Activities Templates

Page 66
Fund Flow Forecasting
Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLA/

Performance criteria

1 Beginning of every month, request all departments to provide their fund requirements for Finance team Receipt of fund Departments should
the month for which the fund forecasting is being undertaken. requirements from provide the fund
departments requirements within 3
The departments should provide their pan-India requirements. While providing the working days of receipt of
requirements they should exclude the invoices which have already been posted in system request
relating to their cost centers.

2,3 After receiving fund requirements from various departments, generate department-wise list Finance team NIL Comparison should be
of all invoices due for payment during the month. performed within 2
working days of receipt of
Add the invoices to the fund requirements provided by departments to arrive at the total completed requirements
fund requirement for each department. Compare the total fund requirement for each from user department
department with the balance budget available
(E.g. if month-wise budgets have been provided, the budget for the relevant month for
which fund forecasting is being done is compared with the fund requirements of each
department. If annual budget has been provided and month-wise details are not available 1
month’s proportionate budget is compared with the fund requirement of each department)

4-8 Assess if fund requirement for the month for each department is in alignment with the Finance team Identification of the Explanations should be
approved budget. In case there is significant variance (organization has to define what fund requirements to provided by user
would be a significant variance) between the fund requirement for the month and the be considered for department s within 2
approved budget for the month, seek explanation for the excess requirement from the each department working days of receipt of
relevant department(s). request from Corporate
Finance
In case valid explanations are not received from the relevant department(s), do not
consider the fund requirements and consider the approved budget amounts for forecasting
purposes. In case valid explanations are received, the funds requested are considered for
fund forecasting.

Page 67
Fund Flow Forecasting
Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLA/

Performance criteria

9,10 Identify any other significant liability maturing during the month (e.g. loans, LC, Insurance) Finance team Total fund NIL
or any other major outflow of funds during the month for which the fund forecasting is requirements for the
being undertaken. Consolidate the funds requirements identified in the performance of the month
above steps to provide the total fund requirements for the month (sum of activity number 2,
7 or 8, 9)

11 Identify the funds available in various bank current accounts maintained by the Company. Finance team NIL NIL

12-16 Obtain collection projections for the month from Sales team. Finance team Submission of fund NIL
projection to
Identify other likely sources of fund receipt during the month (investor funds, maturing FD / authorised personnel
other investments etc. Such details would be collected from Treasury team).

Based on the total fund requirements and funds availability, prepare fund projections for
the month and compute the resultant deficit / surplus.

Submit the fund projection to authorized personnel for approval.

17 Review the fund projections Finance team NIL NIL

18-21 In case authorized personnel requires additional information, obtain the required additional Finance team Revised fund forecast NIL
information from various departments and provide to authorized personnel. based on review

In case authorized personnel requires changes in the projections, incorporates the

changes and informs the respective departments.

In case of any changes to the projections, re-compute deficit / surplus

Page 68
Fund Flow Forecasting
Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLA/

Performance criteria

22-22a In case the projections reflect deficit for the month, identify sources of additional funding Finance team Sources of fund NIL

23 In case projections reflect surplus for the month, on a daily basis identify the surplus funds Finance team Monitoring and Surplus available funds
available in Company’s bank accounts. identification of should be identified on a
surplus investable daily basis
The process of daily surplus fund monitoring is required as the surplus projections arrived funds
at the beginning of the month would not be available immediately for converting into FD
and would be received across the month

24 Identify the amount of surplus fund which can be invested in fixed deposits. Finance team Identification of Surplus investible funds
surplus investable should be identified on a
The difference between surplus funds and investible funds would arise on account of any funds daily basis
adhoc fund request received during the intermittent period.

25 Obtain approval of authorized personnel for fixed deposit amount and raise request to Finance team NIL Finance should raise
Corporate Treasury for creation of fixed deposit. request for fixed deposit
creation within 1 working
day of approval of
investible fund

Page 69
Bank Guarantee Process Flows Process Activities Templates

2 Yes
User Department

1. Identify need to
issue BG, raise request 6b. Forward revised
6c. Stakeholder 6d. Effect changes in
to Finance and submit format / changes to 6e. Submit soft copy of
Start accepts revised No BG format in discussion
soft copy of BG format stakeholder to whom revised BG format
format / changes? with stakeholder
received from BG is to be issued
stakeholder

9. Submit BG to 2
1 requesting
stakeholder

No
3. Prepare letter to bank
5. Submit letter to 6a. Forward revised 8. Forward BG to
requesting opening of BG
bank requesting format / changes to user department
2. Limit and submit to authorized 4.
Yes Yes opening of BG along BG format received and bank advise to
available? personnel for approval Approved?
with approved BG from Bank to User Finance to account
along with soft copy of BG
format department for bank charges
format
Finance and Accounts

No
No
7. Receive BG and
6. Bank
bank advise for bank
accepts BG Yes
charges and update
2a. Limit to request?
2b. Arrange for BG tracker
be availed / No
margin (FD etc.)
increased?

7a. Track the BG

issued in an excel
Yes 8a. Account for the
tracker. Close to
bank charges in ERP
expiry of BG validity
inform user
2c. Identify sources
of funds
End 1

Page 70
Bank Guarantee Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLA/

Performance criteria

1 Identify need to issue BG and raise a request to Finance for BG and submit soft copy of User Request for a BG NA
BG format department

2. On receiving the request, check if limit is available to secure BG from bank. In case limit is Finance and Availment / increase in NA
not available, either avail / increase the limit OR provide margin for the BG. Accounts limit OR arrangement
for margin
For details relating to increase / availment of limit identify the sources of funds.

In case margin is to be provided (either 100% or lower depending on the margin

negotiation done with the bank) obtain approval of authorized personnel.

The authorized personnel can be a person delegated by Board for the purpose or the
Board itself. In case Board has delegated the authority, Finance obtains the Board
resolution delegating the authority and obtain approval of the authorized personnel. In case
Board approval is required for the specific case, finance provides certified copy of Board
resolution to Bank.

Page 71
Bank Guarantee Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLA/

Performance criteria

3 -5 After securing approval for the margin, prepare all required documentation and submit to Finance and Request sent to bank Authorised person
authorized personnel for approval and sign off. Accounts and for providing BG should approve the
Authorized request to issue BG
Where request was submitted after obtaining approval for the particular transaction, personnel within 2 days of receipt
authorized personnel cannot reject the request but can ask for modification to ensure the of request format
request is in alignment with the approval.

However, in cases where Board through a one time resolution had delegated powers to the
authorized personnel, the authorized personnel reserves the right to reject the request. In
case the reject is requested the user department is informed and process is terminated.

In case request is approved, submit letter to bank requesting opening of bank guarantee along
with approved bank guarantee format, board resolution and documents for margin (if
applicable)

6-6a In case BG format submitted is not acceptable to bank, receive suggested changes / revised Finance and Rejection of BG with Change request should
format from bank and forward the same to user department. Accounts suggested changes / be forwarded to user
revised format department within 1
working day

7-8 On receipt of BG, forward BG to user department (retaining a copy) Finance and Release of BG to BG / Charge details
Accounts user department should be sent to user
department / Finance
within 1 day of receipt of
BG / charge details from
bank

7a Track BG issued in excel and inform user department close to expiry date of BG Finance and NIL Inform user department
Accounts 7 working days before
the expiry date of BG

Page 72
Bank Guarantee Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLA/

Performance criteria

6b-6e On receipt of revised format / changes required from bank discuss the same with User department Revised BG format NIL
stakeholder.

If revised format / changes suggested by bank are acceptable to stakeholder, revise the
BG format and re-send to Finance

If revised format / changes are not acceptable to stakeholder, create a new BG format in
discussion with stakeholder and re-submit to Corporate Treasury (based on the flexibility
shown by stakeholder, Corporate Treasury may approach another bank for issuance of
BG)

8a On receipt of the bank advise, account for the bank charges. Finance and Accounting entry Entry for bank charges
Accounts for bank charges should be made within 2
working days from receipt
of bank advise

9 On receipt of BG from, submit BG to requesting stakeholder. User Department NIL BG should be issued to
vendor within 2 working
days from receipt of BG
from Corporate Treasury

Page 73
Letter of Credit
Process Flows Process Activities Templates

Yes

1. Receive LC request 5. Prepare required

3. LC limit
from procurement team 2. Need supplier’s 2a. Negotiate with 4.Identify sources of documentation for LC
Start Yes available? No
along with the PO copy credit? the vendor funds ensuring compliance
and vendor’s acceptance with RBI guidelines

No
10a. Negotiate with banks;
10b. Submit the documents 9. Receive a copy of LC 6. Submit the
prepare required
to bank and receive the loan 10. Need from bank. Forward a 8. Submit signed 7. Approved? documentation to
documentation and get Yes Yes
documents from bank. buyer’s credit? copy to Finance and documents to bank authorized signatories
approval from authorized
Provide a copy to Finance Procurement team for approval
personnel
Finance and Accounts

No
1

11a. Negotiate with banks; 12. Receive shipping 13. On LC becoming due
prepare all required 11b. Submit to bank documents from bank prepare all required 14. Covered
11. Need 14a. Settle the hedging
Yes documentation and get and receive the and take confirmation documentation; get approval through hedging Yes
Hedging contract? contract
approval from authorized hedging contract from Procurement from authorized personnel and contract?
personnel team for invoices submit to bank

No
No No

19. On loan becoming due,

15. Bank makes the
prepare required 18. Covered 17. Covered 16. Forward the debit
18a. Settle the hedging payment / debits
documentation; get approval Yes through hedging Yes through buyer’s advise to Finance,
contract NowFloats a/c and send
from authorized personnel and contract? credit? retaining a copy
payment / debit advise
submit to bank

No
20. Account for the
1 LC charges / payment End
in ERP

Page 74
Letter of Credit Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLA/

Performance criteria

1 Receive Purchase Order (PO) and vendor’s acceptance for PO and the terms of sales Finance and NIL NIL
from Procurement team along with LC request Accounts

2. Based on review of fund availability and forecast, assesses whether supplier’s credit is Finance and Availment of vendor’s NA
required. In case, supplier’s credit is required negotiate with the vendor. If vendor Accounts credit / Rejection of
agrees the maturity of the LC would be for extended period else it would be for the request for availment of
original period supplier’s credit

3-5 After negotiating for supplier’s credit, check if LC limit is available. Finance and Preparation of LC LC documents should be
If LC limit is not available / limit has been exhausted, initiate the process for availment / Accounts documents prepared within 2 working
increase of LC limit (For details relating to process for availment / increase of credit limit days (if LC limit is available
identify the sources of funds) / once the LC limit is
In case LC limit is available (or LC limit has been availed / increased), prepare all increased)
required documentation for LC ensuring all RBI requirements have been met

6-9 After preparing the documentation, obtain approval from authorized personnel and Finance and Receipt of LC from bank LC to be forwarded to
submit to bank. On receipt of LC, forward a copy to Finance department and Accounts Procurement team within 2
Procurement team. The details of LC is captured in a LC tracker maintained by finance. working days from date of
receipt

10. Closer to the LC due date, based on review of fund availability and forecast and Finance and Buyer's credit obtained Authorised person should
reduced interest rate benefits, evaluate whether buyer’s credit is required. Accounts approve / reject request for
buyer’s credit within 3
In case buyers credit is to be availed, negotiate with banks; prepare required working days of receipt of
documentation and obtain approval from authorized personnel. valid request

On receipt of approval from authorized personnel, submit documents to bank and

receive the loan documents from bank. Provide a copy of loan documents to Finance

Page 75
Letter of Credit Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLA/

Performance criteria

11. Evaluate hedging requirements. Finance and Forward cover(s) Authorised person should
Accounts obtained approve / reject request for
Hedging option can be obtained to cover currency fluctuations and also interest rate hedging cover(s) within 3
fluctuations. working days of receipt of
valid request
In case hedging option is to be obtained, negotiate with banks; prepare all required
documentation and obtain approval from authorized personnel.

Submit the approved documents to bank and receive the hedging contract(s)

12 On arrival of shipping documents, bank sends copy of the documents to Finance Finance and Procurement Team Documents should be
Accounts confirmation for the shared with Procurement
On receipt of such documents, forward them to Procurement team and obtain confirmation invoices received team within 1 working day
regarding the accuracy of the invoice(s) attached (value, item description etc.) of receipt of documents
from bank

Procurement Team should

confirm invoice details
within 1 working day of
receipt of invoices from
Finance

13,14 On LC becoming due, prepares all required documentation, obtains approval from Finance and LC payment Documents should be
authorized personnel and submit to bank. Accounts submitted within the due
date for payment of LC
In case the payment is covered through hedging contract(s), settle the hedging contract(s).

15,16 Receive the debit advise from bank and forward the same to Finance while retaining a Finance and NIL NIL
copy. Accounts

Page 76
Letter of Credit Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLA/

Performance criteria

17-19 In case the import payment is covered through buyers credit, on loan becoming due, Finance and Buyer’s credit settlement On due date of loan,
prepare all required documentation; obtains approval from authorized personnel and Accounts and / or hedging contract process the payment
submit to bank. Also settles the hedging contract availed for the buyer’s credit (if any) settlement documentation

20 In case payment / charge is made against procurement for the circle, account for the Finance and Accounting entry for Accounting entry for
payment / charge in Oracle on receipt of documents from Corporate Finance. Accounts payment / LC charge in ERP payment / charge
should be made in ERP
within 2 working days
from receipt of bank
advise

Page 77
Happay Card
Process Flows Process Activities Templates
/ Function

Start
Department

7. Users upload bills/ 8. Uploading of bills/ 9. On HOD approval,

1. Request to HOD for 2. HOD to approve attachments for all attachments triggers a Finance and Accounts is
Happay card approval Happay Card Requisition expenses incurred using notification to HOD for notified for verification
the card approval. of bills

3. Receive the approved

request and processes
the same by informing
the Happay Customer 10. Once bills are
care verified, requestor is
End
notified of verification
Finance and Accounts

4. Happay customer care completion

to enter details received
with the requisition form
i.e. PAN and Address
proof

5. On card activation,
details are automatically
synced in with the
Happay dashboard

6. As and when the card

is swiped, details are
captured in the
dashboard.

Page 78
Happay Card
Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLA/

Performance criteria

1,2 Eligible employee requests the HOD for Happay card approval and the HOD approves Employee Approval for Happay Employee to apply for the
the requisition Card card within 1 month of
joining

Existing employee to
apply at the earliest

HOD shall approve within

1 day of receiving of
request

3,4 Finance receives the approved requisition and forwards it to the Happay Card customer Finance and Activated Happay Card Within 1 day of receiving
care for filling the details against the respective employee. Accounts the approved request
Happay Card Customer Care updates/ enters the details based on the details in the form Happay Card
and the attached address proof and PAN Customer Care

5,6 Once the card is activated the details are automatically synced with the Happay Card NIL Recorded Transactions NIL
Dashboard. The details of the transactions are auto synced once swiped

7 The card user shall upload the bills/ attachments for all the expenditures incurred. This Employee Proof of expenditure Within 24hrs of the
shall automatically trigger a notification to the HOD for approval expenditure incurred

8 While approving the HOD to check if the expense is work related or personal . In case of HOD Approved Expenses Within 1 day of receiving
personal it shall be informed to the employee as well as the Finance. the notification

9,10 The approved expenses are verified by finance to see whether the expenditure was Finance and Approved/ Rejected Within 48 hours of HOD
work related or personal. The approved expenditure/ rejection is notified to the employee Accounts Expenses Approval

Page 79
Financial Statements Close Process
 Financial Statements Close Process Process Flows Process Activities Templates

3. submit journal entries

2. record journal recorded to authorised
1. initiate period
Start entries for relevant personnel for review and
closure activities
documents approval of journal entries in
ERP.

4. is entry approved by FA 4b. Rectify as per

No
Controller? reason for rejection
&Accounts

7b. Rectify as per

reason for
Yes rejection
Finance

No
6. prepare significant
4a. Approve entries in 5. complete JV and accounting policies and notes
ERP posting the journal proceed with Book to accounts and submit to 7. Statements approved?
entries close authorised personnel for
review and approval

Yes

7a. Generate
Corporate Profit and
End Loss statement and
Balance Sheet from
ERP

Page 81
81
 Financial Statements Close Process Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLAs/

Performance Criteria

1 Book closure activities are initiated based on Book Close checklists by the finance & Finance & Details of book close 5th working day after end
account executive Control team JV to be made of period
Various activities that require adjustments include:
• Prepaid expenses (examples: prepaid insurance premium, prepaid rent, prepaid
advertisement expenses prepaid taxes, prepaid legal fees, prepaid interest, etc.)
• Accruals on unpaid expenses
• Unbilled items
• Deferred revenue
• Errors/omissions to be corrected
• Adj basis vender/ customer balance confirmation

2 Preparation of provision journal vouchers based on the inputs above. Finance & Provisional 5th working day after end
The standard examples of provision for expenses includes telephone expenses, ESIC Control team statements and of period
accounts, EPF accounts, Provision for Bad debts, Provision for taxation, etc. journal vouchers

3 Submission of journal entries recorded to finance & accounts Controller for review and Finance & NIL 5th working day after end
approval of journal entries in ERP. Ensure calculations, reasons and break ups is provided Control team of period
for all JVs.

4. Once the finance & account Controller approves the journal entries as sent by the FA Finance & Approved JVs 7th working day after end
executives these has to be posted in ERP. Control team of period
If the journal entries are not approved, the same has to be rectified according to reasons
for rejection. FA Controller to ensure, supporting is adequate for all adjustments

5 Based on approval for F&A Controller, Journal Voucher to be processed in ERP. Ensure Finance & Adjusted JVs 8th working day after end
separate JVs for each adjustments. Take snapshot and keep record. Control team of period

Page 82
 Financial Statements Close Process
Process Flows Process Activities Templates

Sl. No. Description Responsibility Output Internal SLAs/

Performance Criteria

6 Prepare significant accounting policies and notes to accounts and submit to FA controller for Finance & Accounting policies 8th working day after end
review and approval, based on Book Close Checklist. Control team and notes of period

7. If the statements are approved , financial statements i.e., Profit & Loss Statements and Finance & P&L statements and 9th working day after end
Balance Sheet are generated from ERP. Whereas if rejected changes are to be made to Control team Balance Sheet of period
the accounting policies and notes as per the reasons of rejection.

Page 83
 Templates Process Flows Process Activities Templates

Bank A/c opening BRS Happay Card Cash Flow

request Requisition Statement

Vendor Debtors Debtors Ageing

Reconciliation Statement Day End Report
Reconciliation Statement Report

Book Close
Checklist

Page 84
84
Thank You