OVERVIEW

Top Next

---

Accounts Payable Addresses the following

•   Bill Registration
•   GRN Valuation at Actuals
•   Import GRN Accounting for

Freight PaymentInsurance PaymentClearing Agent PaymentCustom Duty PaymentBank Charges

•   Generate Bill Passing Voucher
•   Include Multiple GRNs after Valuation
•   Include Multiple Bills
•   Pass Bill Without GRN
•   Purchase Ledger
•   Outstanding / Ageing Analysis
•   Subcontract Bill Passing
•   TDS Accounting
•   Provisioning & Reversal
•   Reversal of Bill Passing Voucher

 
 
Roles addressed

•   Bill Passing Accountant (for Materials Purchase)
•   Bill Passing Accountant (for Subcontract Work)
•   Buyer in Purchase Department
•   Cost Accountant
•   MIS

 
Bill Passing Accountant (for Materials Purchases)
The Bill Passing accountant generates the Bill Passing Voucher for Purchases made. The system helps to provision for Material Receipts that have not been paid.
 
Bill Passing Accountant (for Subcontracts)
The Bill Passing accountant generates the Bill Passing Voucher labour contracts, Production Subcontract Work and Deducts TDS.
 
Buyer in Purchase Department
The Buyer is able to know the Status of Bills in the finance department.
 
Cost Accountant
The landed cost of the material whether local or Imported and is used in the Priced Stores Ledger.
MIS
The Creditor Outstanding and Age Analysis are Known for fund disbursal.
Bill Inwards Register
 
 
Work flow

 
Bill Registration
 
Every bill that is received is registered in the Bill Inwards Register with details of
Bill Reference / Date
Party A/C Code, Supplier Name
DA Reference / Date
Bill amount
Bill Type (With GRN / Others)
Date of receipt of Bill
Amount accounted on the bill (for Payment),
Is C-Form to be Issued?
Date and Voucher reference against which accounted.
 
When the Bill is linked to GRNs in the Bill Passing Voucher the bill is updated for the amount passed.
 
If the Bills are of types where No GRN linkage is involved the bill is settled through a payment entry. At that time the details of the amount accounted and the voucher no will be recorded against the bill.
 
Purchases and GRN Linkage.
 
The system displays the GRN raised at stores with the inspection details showing the quantity accepted and rejected. Additional details shown are

• item basic rate,
• item Accepted Qty and Item Value

(Inclusive of Tariff details based on the PO rate structure.)
 
All tariffs shown on the PO are apportioned to the items based on the Item value. So the Value shown against each item would be (Basic Item Value + Apportioned Tariff exclusive of CENVAT)
 
The quantity used by the system for arriving at the Item value is the Accepted quantity. Note that this will be 0 if Inspection is not done at Stores.
 
CENVAT Credit is shown separately for each item. This is worked out taking into consideration any Excise duty indicated in the PO.
 
The user can check whether the details displayed by the system for EACH GRN ITEM (viz. Qty and Value) are correct and amend them if desired. The user then passes an item for Acceptance. Note that the item cannot be passed more than once. The system alerts whether the Item has been passed already under a different Bill Passing Voucher Reference.
 
The Screens given later on summarise how the process is achieved.
 
In all cases the user has to also enter the Analysis category (e.g Job, Division, Party as specified in the document Type for Voucher Posting)
When GRNs are linked to a bill the system provides a split up of the Item wise value . CENVAT credit has to be indicated at the GRN linkage time against each GRN.
Accounting Entries

Payment Of Advance (Example)
 
   Payment of Advance of Rs 5000/=

	Debit	Credit
Party Advance A/C	5000
Bank Account		5000

 

Bill payment Voucher (Bill and GRN Linkage) (Example)
GRN for 2 Items
 

Sno	Matl Code	QTY	Rate	Value	ED (10%)	ST(1%)	Total
1	TI/PL/0002/080	100	1200	120000	12000	1320	133320
2	TI/PL/0002/060	50	1000	50000	5000	550	55550
				170000	17000	1820	188870

 
 
Effect of Bill Linkage
Register a Bull of Rs 188870/- and Link with GRNs )Bill Payment Voucher)
 

	Debit	Credit	Material Code	Qty	CENVAT
Party Account	188870
CENVAT Credit A/C		17000
Material A/C		121320	TI/PL/0002/080	100	12000
Material A/C		50550	TI/PL/0002/060	50	5000

 
The entry on the material A/C will be split up Item wise for every GRN accounted against this bill.. The CENVAT credit will be given as 1 entry.
 
 
Effect Of Cheque Payment AdviceDebitCredit
Raise a Cheque Payment Advice and adjust Advance paid earlier

	Debit	Credit
Party Advance Account	50000
Party Account		50000
Party Account	138870
Bank Account		138870

 
 
The entries in the Party A/C (50000, 138870) can be knocked off (allocated) against the 188870 in the credit side of the Party A/C. at the time of preparing the cheque payment voucher.
 
Import GRN Accounting
 
The additional charges on the Purchase can be accounted such as:-

• Freight
• Insurance Payment
• Clearing Agent Payment
• Custom Duty
• L/C Charges

These are added as tariff. Some of them will be reflected in the Bill (material Cost) and some will not be reflected in the Bill (Customs duty) depending in the terms of Payment.
Those reflected on the Bill will be Posted to Party Account.
Those which have impact on the Item bought will be Posted to the Material Account against the Item.
 
Purchases for Indirect Items (GRNs N Type)
 
Purchases for these type is accounted as a single entry and not individually against each item.
 
The Analysis Categories need to be entered. If the user does not wish to enter the analysis categories he would need to define a separate document type for this purpose.
 
GRN for 2 Items
 

Sno	Matl Code	QTY	Rate	Value	ST(3%)	Total
1	Cotton Waste	100	1	100	3	103.00
2	Soap	50	5	250	7.50	257.50
				350	10.50	360.50

                                                                                                                                                                               
                     Effect Of Bill Linkage
Register Bill of Rs. 360.50/=and Link with GRNs (Bill Payment Voucher)
 

	Debit	Credit
Party Account		360.50
General Consumables Account	360.50

 
 
Raise a Cheque Payment Advice
 

	Debit	Credit
Party Account	360.50
Bank Account		360.50

      
 
 
Multiple GRNs on a Bill Passing Voucher
 
Multiple GRNs can be passed on a Bill Passing Voucher.
The GRNs can be Selected against a Bill passing Voucher.

Bill Passing Voucher Print out
 

 
Provisioning
Provisioning can be carried out Unaccounted Materials Receipts.
Provisioning affects

• Accounting
• Bill Passing
• Priced Stores Ledger

 
Accounting
The GRNs Provisioned are

• Credited to a Provisioning Account instead of Party Account
• Debited to Stock or Purchase or Material Account

The Stock Account is derived based on Material Group of the Items (Where Material Code is available) OR the Debit Category specified on the GRN/Purchase order . The table Below illustrates a typical example

Matl Group / Debit Category	Posting Account
RM	Raw Material A/C
MAINT	Maintenance Expenses A/C
RND	R & D A/C
GENERAL	Consumables A/C

 
The Tariffs such as Excise, ST will be reflected in the respective Account.
 
Bill Passing a Provisioned GRN
 
At the time of Bill Passing the Posting is as follows
Reverse the Provisioning

•    DebitProvision Account
•    Credit Party Account
•    Credit/DebitStock Adjustment A/C for differences between Bill Passing & Provisioning
•    Credit/Debit Tariff accounts for any differences

 
Priced Stores Ledger
Since the Receipts are Provisioned at a rate different from the actual Issues will be valued at a rate different from the rate after bill passing.

Outstanding & Ageing Analysis
The Outstanding Analysis of Bills is Provided based on the Bill date / Voucher date
 
The Creditors Ledger Outlines the following by party
   - Credit / Debit Balances
   - Advance Adjustments

Subcontract Advice
Bill payment Voucher (Bill and SCA GRN Linkage.). This is similar to the normal Bill Payment Voucher ( For GRN) N Type as seen at Purchases
 
Cheque Payment Advice is similar to the one shown at Purchases.
 
Example
 
SCA GRN for 2 Items

Sno	Description	Value	Total
1	Conversion of Bolts	200	200
2	Cutting plate	150	150
		350	350

                                                                                                                                                                               
Effect Of Bill Linkage
Register Bill of Rs. 350.00/=and Link with GRNs (Bill Payment Voucher)
 

	Debit	Credit
Party Account		350
Job Machining Charges	350

 
 
Raise a Cheque Payment Advice
 

	Debit	Credit
Party Account	350
Bank Account		350

   
The TDS on Subcontract activity is deducted at the time of raise Cheque Payment Advice.
 
Service Orders and Bills for Which No GRNs are there
 
These will be accounted as follows
Effect Of Bill Linkage

	Debit	Credit
Party Account		2700
Travel Expenses Account	2700

 
 
Raise a Cheque Payment Advice
 

	Debit	Credit
Party Account	2700
TDS Account		300
Bank Account		2400

 
 
TDS Accounting
 
Accounting for TDS is shown above
 
TDS certificates are Printed for the deductions along with Remittance details. The Remittance details will be printed only the Payment is allocated with the entries on the TDS account.
 
 
List of Facilities
 

Accounts Payable (AP00)

Maintain Presets for Billing (AP01)

Value GRN (AP02)

Bill Registration (AP03)

Bill Passing Voucher (AP04)

Bill Passing Voucher (Manual No.) (AP4M)

Extract GRNs for Provisioning (AP05)

Value Subcontract GRN (AP06)

Provision GRNs (AP07)

Bill Passing without GRN (AP11)

Delete Bill Passing Voucher (AP12)

Delete GRN Provision Voucher (AP13)

Maintain TDS Accounts (AP15)

Purchase Account by Material Group (AP16)

Purchase Account by PO Debit Code (AP17)

Raise Debit Advice for Short Passed Bill (AP21)

View Provisioning (AP61)

View GRN Details (XGRN)