AS-IS Finance Current State V 2

Business Function: Financials Core team Member: Vishal Sharma, Monojit
Process code : Financials Document Version Mahapatra, Sandipan Sarma, Abdul Mannan
Process Name: Financials Version : 2.0 Date : 19-Feb-2020
www.pwc.com
As-Is Document for

Financials
Version 1.0
Standard Group
Page 1 of 160
Document Control
Change Record
1
Date Author Version Change Reference
19-Feb-20 Sandipan Sarma 2.0
Reviewers
Name Position
Farooq Ahmmad Bhuya Deputy Financial Controller

Md Abul Kalam Azad Head of ITS
Hasnat Mosharraf Director
DOCUMENT CONTROL.....................................................................................................................................................................................................................................................2
REVIEWERS.....................................................................................................................................................................................................................................................................2
1. PROCESS APPROACH IN CURRENT STATE...........................................................................................................................................................................................9
1.1 SUMMARY OF FINANCE FUNCTIONS AT STANDARD GROUP.........................................................................................................................................................9
1.2 ORGANIZATION STRUCTURE..................................................................................................................................................................................................................10
1.3 MODELING OF GL-1 CURRENT SYSTEM DESIGN..............................................................................................................................................................................13
Page 2 of 160
1.3.1. CURRENT SYSTEM DESIGN – 4’C......................................................................................................................................................................................................13

1.3.2. Project under each unit...........................................................................................................................................................................................................................14
1.3.3. Manual Budget for Expense Control......................................................................................................................................................................................................14
1.3.4. Inter Company Transaction....................................................................................................................................................................................................................14
1.3.5. Intercompany transactions and Transfer Pricing...................................................................................................................................................................................15
1.3.6. Cost center..............................................................................................................................................................................................................................................15
1.4 MODELING OF GL-2 ACCOUNTING SOURCES....................................................................................................................................................................................16
1.4.1. MODELING OF GL-2 SUBLEDGERS..................................................................................................................................................................................................16
1.4.2. Reconciliation with Other Non-Integrated Modules...............................................................................................................................................................................16
1.4.3. MODELING OF GL-2 – GL MANUAL ENTRIES.................................................................................................................................................................................16
1.4.4. Period closing:........................................................................................................................................................................................................................................17
1.5 GL-3 WISH LIST...........................................................................................................................................................................................................................................18
1.6 MODELING OF AP-1 SUPPLIER CREATION/MAINTENANCE..........................................................................................................................................................19
1.7 MODELING OF AP-1 PAYMENT TERMS.................................................................................................................................................................................................19
1.8 MODELING OF AP-1 PROCUREMENT FOR EXPORT ORDERS.....................................................................................................................................................................20
1.8.1. Foreign Import........................................................................................................................................................................................................................................20
1.8.2. Foreign Import with LC..........................................................................................................................................................................................................................21
1.8.3. Foreign import with L/C and shipping guarantee..................................................................................................................................................................................22
1.8.4. Foreign import without L/C....................................................................................................................................................................................................................23
1.8.5. Foreign import with Free of cost (FOC)................................................................................................................................................................................................23
1.8.6. Sample at FOC with bulk price adjustment............................................................................................................................................................................................24
1.8.7. Foreign services without L/C..................................................................................................................................................................................................................24
1.8.8. Quality and similar claim from suppliers and customers ‘as suppliers’ agent’.....................................................................................................................................25
1.8.9. Price adjustments....................................................................................................................................................................................................................................25
1.8.10. Freight amount within commercial invoice price...................................................................................................................................................................................26
1.8.11. Inspection shortage but payment as per invoice.....................................................................................................................................................................................26
1.8.12. L/C margin..............................................................................................................................................................................................................................................26
1.9 MODELING OF AP-1 LOCAL IMPORT FOR EXPORT ORDERS......................................................................................................................................................................28
1.9.1. Import with L/C.......................................................................................................................................................................................................................................29
1.9.2. Import without L/C..................................................................................................................................................................................................................................30
1.9.3. Import with goods receiving acknowledged without receiving delivery.................................................................................................................................................30
1.9.4. Sample at FOC........................................................................................................................................................................................................................................31
1.9.5. Sample payment with Bulk invoice.........................................................................................................................................................................................................31
1.9.6. Quality and similar kinds of claim..........................................................................................................................................................................................................31
1.9.7. Future or previous price adjustment.......................................................................................................................................................................................................32
1.9.8. Inspection shortage but payment as per Invoice.....................................................................................................................................................................................32
1.10 GOODS AND SERVICES PROCURED INTERNALLY FOR EXPORT ORDERS............................................................................................................................................................33
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1.10.1. Wash........................................................................................................................................................................................................................................................33
1.10.2. RMG Sewing...........................................................................................................................................................................................................................................33
1.10.3. Accessories and packaging.....................................................................................................................................................................................................................34
1.10.4. Embroidery, printing etc.........................................................................................................................................................................................................................34
1.11 TRANSFER PRICING (WITHIN LE) FOR EXPORT ORDERS....................................................................................................................................................................................35
1.11.1. Wash........................................................................................................................................................................................................................................................35
1.11.2. RMG Sewing...........................................................................................................................................................................................................................................35
1.11.3. Accessories and packaging.....................................................................................................................................................................................................................35
1.12 LOCAL PROCUREMENT FOR EXPORT ORDERS...................................................................................................................................................................................................36
1.12.1. Procurement of goods/services with PO.................................................................................................................................................................................................37
1.12.2. Subcontract bill – Sewing, Washing, Embroidery and Mending............................................................................................................................................................38
1.12.3. Procurement of goods/services without PO............................................................................................................................................................................................40
1.13 LOCAL COST OF IMPORTED ITEMS FOR EXPORT ORDERS..................................................................................................................................................................................43
1.13.1. LC opening related bank charges...........................................................................................................................................................................................................43
1.13.2. Freight.....................................................................................................................................................................................................................................................43
1.13.3. Custom and port charges........................................................................................................................................................................................................................44
1.13.4. C&F agent expenses...............................................................................................................................................................................................................................44
1.13.5. Local transport charges..........................................................................................................................................................................................................................44
1.13.6. Loading/unloading and other expenses..................................................................................................................................................................................................45
1.13.7. Financial Charges..................................................................................................................................................................................................................................45
1.14 BULK PROCUREMENT FOR DEEMED EXPORT.....................................................................................................................................................................................................46
1.14.1. Import of Dyes and Chemicals, Paper and Accessories items etc..........................................................................................................................................................46
1.14.2. Purchase from local market with PO......................................................................................................................................................................................................46
1.15 PROCUREMENT FOR PROJECTS.........................................................................................................................................................................................................................47
1.15.1. Import for Projects..................................................................................................................................................................................................................................47
1.16 LOCAL PURCHASE FOR PROJECTS.....................................................................................................................................................................................................................48
1.16.1. Sub contract for projects.........................................................................................................................................................................................................................51
1.17 CSR PROJECT RELATED PROCUREMENTS.........................................................................................................................................................................................................51
1.17.1. Non business procurements....................................................................................................................................................................................................................51
1.18 PROCUREMENT OF ASSETS AND CAPEX..........................................................................................................................................................................................................52
1.18.1. Import of Capital machinery and other assets with LC..........................................................................................................................................................................52
1.18.2. Local procurement of capital assets and spares.....................................................................................................................................................................................52
1.18.3. Capital expenses for existing assets........................................................................................................................................................................................................53
1.18.4. Spares and other items procured with Machinery and other equipment’s.............................................................................................................................................53
1.18.5. Import of inventory items for local business...........................................................................................................................................................................................54
1.19 LOCAL PROCUREMENT FOR GOODS AND SERVICES..........................................................................................................................................................................................55
1.19.1. Local Procurement of goods or services with P. O................................................................................................................................................................................55
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1.19.2. Local Procurement of goods or services without P.O............................................................................................................................................................................58

1.19.3. vii) Freight and B/L Charge (Export)..............................................................................................................................................................................................61
1.19.4. vii) Freight (Import)............................................................................................................................................................................................................................62
1.19.5. Procurement from Inter-companies and inter unit.................................................................................................................................................................................62
1.19.6. Discount/ Freight....................................................................................................................................................................................................................................63
1.19.7. Intercompany/unit expense allocation....................................................................................................................................................................................................63
1.19.8. Maintenance expenses with reference to specific assets/utilities...........................................................................................................................................................63
1.19.9. Vehicle maintenance expenses with tracking vehicle reference.............................................................................................................................................................64
1.19.10. Purchase without supplier......................................................................................................................................................................................................................64
1.19.11. Payroll related invoice............................................................................................................................................................................................................................65
1.20 TAX AND VAT.................................................................................................................................................................................................................................................66
1.20.1. Withholding Tax......................................................................................................................................................................................................................................67
1.20.2. Withholding VAT.................................................................................................................................................................................................................................67
1.20.3. Periodic VAT reporting with expense...............................................................................................................................................................................................68
1.21 BANK GUARANTEE AND SHIPPING GUARANTEE............................................................................................................................................................................................68
1.21.1. Bank Guarantee...................................................................................................................................................................................................................................68
1.21.2. Shipping Guarantee............................................................................................................................................................................................................................69
1.21.3. FDR lien for Guarantee......................................................................................................................................................................................................................69
1.22 INVOICING CURRENCY.....................................................................................................................................................................................................................................70
1.22.1. Foreign currency Invoice...................................................................................................................................................................................................................70
1.22.2. Invoice currency other than payment currency.............................................................................................................................................................................70
1.23 INVOICE APPROVALS........................................................................................................................................................................................................................................71
1.23.1. Invoice approvals................................................................................................................................................................................................................................71
1.23.2. Batch approvals...................................................................................................................................................................................................................................71
1.23.3. Invoice Hold..........................................................................................................................................................................................................................................71
1.24 PAYMENTS........................................................................................................................................................................................................................................................72
1.24.1. Scheduling of payment.......................................................................................................................................................................................................................72
1.24.2. Daily payment planning with bank balance..................................................................................................................................................................................72
1.24.3. Multiple payment for one invoice or group of invoice..................................................................................................................................................................72
1.24.4. Multiple Invoices paid together.........................................................................................................................................................................................................73
1.24.5. Payment for other business unit or company.................................................................................................................................................................................73
1.24.6. Payment notification...........................................................................................................................................................................................................................74
1.24.7. Advance payments..............................................................................................................................................................................................................................74
1.24.8. Payment by new bank liability of UPAS/EDF/Deferred..............................................................................................................................................................75
1.24.9. Payment by bill of exchange..............................................................................................................................................................................................................75
1.24.10. Payment by Cheque/PO/FDD.......................................................................................................................................................................................................75
1.24.11. Payment by BEFTN/RTGS/TT/Wire transfers/bkash.................................................................................................................................................................75
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1.24.12. Payment with personal Credit cards...........................................................................................................................................................................................76

1.24.13. Payment in Cash..............................................................................................................................................................................................................................76
1.24.14. Petty expenses payment.................................................................................................................................................................................................................77
1.24.15. Refund from Suppliers and others...............................................................................................................................................................................................77
1.25 WISH LIST AP-4...........................................................................................................................................................................................................................................78
1.26 MODELING OF AR-1 CUSTOMER ENTRY/UPDATE............................................................................................................................................................................86
1.27 MODELING OF AR-1 REVENUE SOURCES............................................................................................................................................................................................87
1.27.1. REAL ESTATE BUSINESS PROCESS DESCRIPTION.........................................................................................................................................................................88
1.27.2. ACCOUNTING ENTRY FOR DEVELOPMENT PROCESS..................................................................................................................................................................89
1.27.3. CONSTRACTION BUSINESS PROCESS DESCRIPTION....................................................................................................................................................................93
1.27.4. CURRENT PROCESS - BANK GUARANTEE.......................................................................................................................................................................................96
1.27.5. LOCAL SALES BUSINESS PROCESS DESCRIPTION.........................................................................................................................................................................98
1.27.6. PLASTIC SALE BUSINESS PROCESS DESCRIPTION......................................................................................................................................................................101
1.27.7. SALE (ACCESSORIES) TO EXTERNAL COMPANY BUSINESS PROCESS DESCRIPTION...........................................................................................................103
1.27.8. LOCAL SALE (TCEL-P, SFL) PROCESS DESCRIPTION..................................................................................................................................................................104
1.27.9. LOCAL SALE LAB TEX SERVICES PROCESS DESCRIPTION.........................................................................................................................................................105
1.27.10. DIRECT EXPORT BUSINESS PROCESS DESCRIPTION..................................................................................................................................................................105
1.27.11. Negotiated export sales price with customer in pre-costing statement....................................................................................................................................105
1.27.12. Export sales price in PO from Customer..............................................................................................................................................................................................105
1.27.13. DEEMED EXPORT FOR RAW MATERIALS BUSINESS PROCESS DESCRIPTION.......................................................................................................................109
1.27.14. DEEMED EXPORT FOR WASHING BUSINESS PROCESS DESCRIPTION....................................................................................................................................112
1.27.15. LOAN (OTHER THAN IMPORT BILL) – LONG TERM LOAN/STL/PC PROCESS DESCRIPTION................................................................................................115
1.27.16. ACCOUNTING ENTRY PROCESS......................................................................................................................................................................................................116
1.27.17. LOAN ON IMPORT BILL – BTB/EDF/UPAS PROCESS DESCRIPTION..........................................................................................................................................117
1.27.18. ACCOUNTING ENTRY PROCESS......................................................................................................................................................................................................118
1.27.19. Internal Revenue and Transfer Pricing................................................................................................................................................................................................120
1.27.20. Retailing................................................................................................................................................................................................................................................121
1.28 MODELING OF AR-2 EXPORT ADVANCE............................................................................................................................................................................................123
1.29 MODELING OF AR-2 CREDIT MEMO...................................................................................................................................................................................................123
1.30 MODELING OF AR-2 OTHER INCOME................................................................................................................................................................................................124
1.31 AR-4 WISH LIST.........................................................................................................................................................................................................................................127
1.32 MODELING OF FA-1 CURRENT SYSTEM DESIGN............................................................................................................................................................................137
1.33 MODELING OF FA-2 FIXED ASSET MASTER DATA..................................................................................................................................................................................137
1.34 OVERVIEW OF FIXED ASSET MANAGEMENT PROCESS...................................................................................................................................................................................138
1.35 PROCUREMENT OF FIXED ASSET....................................................................................................................................................................................................................139
1.36 FIXED ASSETS REQUISITION................................................................................................................................................................................................................................140
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1.37 GENERATE INDENT AND TAKE APPROVAL FROM HOD................................................................................................................................................................................140

1.38 VERIFIED BY AUDIT........................................................................................................................................................................................................................................140
1.39 RFQ AND CS SENT TO PURCHASE COMMITTEE/MANAGEMENT FOR PRICE APPROVAL..................................................................................................................................140
1.40 PO CREATE AND REQUEST FOR SUPPLY..........................................................................................................................................................................................................141
1.41 LOCAL PURCHASE..........................................................................................................................................................................................................................................141
1.42 IMPORT...........................................................................................................................................................................................................................................................141
1.43 RECEIVED ASSETS BY STORE THROUGH GRN...............................................................................................................................................................................................142
1.44 MEASUREMENT OF FIXED ASSET..................................................................................................................................................................................................................142
1.45 ASSET RECORD ON FIXED ASSETS MODULE..................................................................................................................................................................................................142
1.46 ACCOUNTING OF ASSET.................................................................................................................................................................................................................................143
1.47 DEPRECIATION CHARGES...............................................................................................................................................................................................................................143
1.48 ASSET TRANSFER TO ANOTHER UNIT............................................................................................................................................................................................................144
1.49 FIXED ASSET HELD BY OTHER LEGAL ENTITY OR UNIT................................................................................................................................................................................144
1.50 PHYSICAL VERIFICATION OF ASSETS.............................................................................................................................................................................................................144
1.51 ASSETS TAGGING/SCANNING/BARCODE SYSTEM.........................................................................................................................................................................................145
1.52 IMPAIRMENT OF ASSETS................................................................................................................................................................................................................................145
1.53 RETIREMENT/ SALES OF ASSETS..................................................................................................................................................................................................................145
1.54 MODELING OF FA-1 MASS ADDITION.................................................................................................................................................................................................146
1.55 MODELING OF FA-2 DEPRECIATION..................................................................................................................................................................................................146
1.56 MODELING OF FA-3 REVALUATION...................................................................................................................................................................................................146
1.57 MODELING OF FA-4 RETIREMENT......................................................................................................................................................................................................146
1.58 MODELING OF FA-5 INTER COMPANY TRANSFER.........................................................................................................................................................................147
1.59 MODELING OF FA-6 COST TRANSFER................................................................................................................................................................................................147
1.60 MODELING OF FA-7 CWIP......................................................................................................................................................................................................................147
1.61 FA-8 WISH LIST.........................................................................................................................................................................................................................................147
1.62 MODELING OF CM-1 BANK ACCOUNT CREATION...........................................................................................................................................................................150
1.63 MODELING OF CM-2 BANK RECONCILIATION PROCESS.............................................................................................................................................................150
1.64 MODELING OF CM-3 FUND TRANSFER..............................................................................................................................................................................................151
1.65 MODELING OF CM-4 BANK CHARGES................................................................................................................................................................................................152
1.66 MODELING OF CM-5 OVERALL BUSINESS PROCESS.....................................................................................................................................................................154
1.67 CM-6 WISH LIST........................................................................................................................................................................................................................................162
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1. Process approach in Current State
1.1 SUMMARY OF FINANCE FUNCTIONS AT STANDARD GROUP
Current Process Description
 Financials for Standard Group is being maintained in Corporate Office, Civil Engineers Bhaban, Dhaka.
 Financials currently is not being maintained in Oracle EBS. However, now Financials are being maintained through In-house custom solution
for all legal entities under Standard Group.
 Income and Expense statement is prepared as an when required basis. Balance sheet is being prepared yearly.
 Financial statement is prepared yearly. For Financial preparations, adjustments are being made in excel and then adjustment entries are
entered in In-House Custom software. For certain cases like, Depreciation, Stock Valuation (including WIP) data is derived from individual
department, payroll data is derived from custom Payroll system.
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1.2 ORGANIZATION STRUCTURE
Page 9 of 160
 Standard Group has diversified its business into various industries.
The List of Legal Entities are as under:

1. Adhunik Poshak Shilpa Limited
2. Amotex Limited
a. Amotex Ltd. (Woven Unit)
b. Amotex Ltd. (Sweater Unit)
3. Crazy Fashions Limited
4. International Trading Services Limited
a. International Trading Services Limited (Garments Unit)
b. International Trading Services Limited (Generator Unit)
c. International Trading Services Limited (C & F Unit)
d. International Trading Services Limited (Wash Unit)
5. Kazipur Fashions Limited
a. Kazipur Fashions Limited. (Garments Unit)
b. Kazipur Fashions Limited. (Unit-1)
6. labTex Services
7. Shams Styling Wears Limited
8. Standard Fashions Limited
9. Standard Group Limited
a. Standard Group Limited. (Garments Unit)
b. Standard Group Limited (Unit-2)
10. Standard Retail Limited
11. Standard Stitches Limited
a. Standard Stitches Limited. (Garments Unit)
b. Standard Stitches Limited. (Cartoon Unit)
c. Standard Stitches Limited. (Woven Unit)
d. Standard Stitches Limited. (Unit-2)
12. Sterling Designs Limited
Page 10 of 160
13. The Civil Engineers Limited

a. The Civil Engineers Limited. (Garments Unit)
b. The Civil Engineers Limited. (Sweater Unit)
c. The Civil Engineers Limited. (Packaging Unit)
d. The Civil Engineers Limited. (Unit-2)
e. The Civil Engineers Limited. (Woven Unit)
f. The Civil Engineers Limited. (Construction Unit)
g. The Civil Engineers Limited. (Real Estate Unit)
14. Tip Top Fashions Limited

15. Transworld Sweaters Limited
16. Wear Mag Limited
17. Your Fashion Sweater Limited
18. Standard Retail Limited.
19. Concorde Knitting & Dyeing Industries Limited.
20. Matexport (Bangladesh) Limited.
21. Tulagaon Fashions Limited.
22. Amex Ltd.
23. Peak Fashions Limited.
24. Standard Liquefied Petroleum Gas Limited.
25. Standard Global Economic Zone Limited.
26. Standard Energy Limited.
 Currently maintain 42 Operating Unites for across all Legal Entities.

 There is no Secondary Ledger defined.
 The mapping between Operating Unit and SBU – 1:1 but one SBU is mapping with multiple Legal Entities.
 Under one SBU has multiple locations and one location has also multiple Projects.
Page 11 of 160
1.3 MODELING OF GL-1 CURRENT SYSTEM DESIGN
1.3.1. CURRENT SYSTEM DESIGN – 4’C
Ledgers
o Currently maintained 17 Primary Ledger for all the Legal entities.
Calendar
The GL Calendar defined is from July to June Fiscal year basis. There are no adjustment periods currently defined.
Currency
 The Functional & Reporting currency is BDT (Bangladesh Taka).
 The other currencies enabled in the system are as under:
USD (US Dollars) , EUR(Euro), GBP(Pound Sterling), JPY(Japanese Yen) etc.
Accounting Convention
No accounting program has been defined in their custom software for Subledger accounting.
Chart of Accounts:
Chart of Accounts is maintained in existing Accounting Software. Any new account is added after Finance head approval. Present Functional
category under COA:
Assets (Non-Current and Current Assets).
Shareholders Equity and Liabilities (Shareholders Equity, Non-Current and Current Liabilities).
Revenue Income.
Cost of Goods Sold (Consumption of Raw Materials and Manufacturing Overheads).
Operating Expense (Administrative Expense; Marketing, Selling and Distribution Expenses).
Financial Expenses.
Non-Operating Income.
Income Tax Expenses.
Requirements
Need reporting currency USD.
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1.3.2. Project under each unit
Required projects are maintained in chart of accounts during recording of transactions. Accordingly, project wise trial balance and other
necessary information can be produced.
1.3.3. Manual Budget for Expense Control
We comprise manual budget for the units of the Standard Group (Weekly & Monthly). After the period end, we compare actual expense with the
budgeted amount and report it as per requirement.
1.3.4. Inter Company Transaction
At present corresponding intercompany lines of transactions are generated by system.
1.3.5. Intercompany transactions and Transfer Pricing
Page 13 of 160
We check the inter unit billing for providing washing, C& F services and Generator Services as well as providing accessories, poly, stationaries etc.
1.3.6. Cost center
At present Cost centers are not captured in accounting software and accordingly cannot be tracked when generating accounting entries. For
management reasons cost center related reports are manually prepared.
Page 14 of 160
1.4 MODELING OF GL-2 ACCOUNTING SOURCES
1.4.1. MODELING OF GL-2 SUBLEDGERS
 Sub-Ledger accounting entries are from Accounts Payable, Accounts Receivable, Fixed Assets, Cash Management, Purchasing and
Inventory. Purchasing and Inventory accounting entries comes with source as ‘Cost Management’ in GL
 The Create Accounting program is not scheduled as they are maintained In-house Custom Solution.
 There is no specific time frame of closing sub-ledger periods.
1.4.2. Reconciliation with Other Non-Integrated Modules
We collect data from other non-integrated modules (Commercial and Material Management), and perform reconciliation and take necessary
accounting entries.
1.4.3. MODELING OF GL-2 – GL MANUAL ENTRIES
o Manual Entries in GL are for the following purpose

o Provisional
o Payroll – Monthly payroll entries are being manually entered entity wise.
o Inventory Adjustment – Since the Manufacturing module is not being used currently, the entries for Cost of Goods sold and
opening/closing inventory value is being provided manually in GL on a monthly basis.
o Depreciation is calculated in excel sheet and then the value of depreciation is entered in custom software. Detail Process covered in Fixed
Assets Section.
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Depreciation A/c…………………….. Dr
Accumulated Depreciation A/c………………….Cr
o Foreign Exchange gain or loss is automatically calculated in the system based on the rate decided by corporate.
o Till date there has not been any process of asset revaluation.
o There is no current practice of Closing GL.
o Salary Journal.
o Salary to Foreign Employees - In Case of Foreign Employees the amount is paid to employees as per the Work Permit as Salary Payable.
They have the contract that they will pay him / her the actual amount of Foreign Currency irrespective of the amount flown in the Banks in
BDT & for that they will open new Bank A/C for paying the Salary to Foreign Employees.
o Currently Provident Fund is not maintained.
1.4.4. Period closing:
Balance validation of every transaction and confirmed that all transaction is posted to GL.
Create Provision entry for respective expenses.
All kind of adjustment entry.
Rectification entry if necessary.
Bank reconciliation check.
Sister concern fund transfer reconciliation.
Suppliers balance reconciliation.
Buyer wise Balance reconciliation.
Calculate Depreciation in Excel and charged.
Bank liability confirms. Validation of transactions and account balances:
We checked transactions for the group, validate and give rectification entries if an error found.
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1.5 GL-3 WISH LIST
Serial
Topic Sub-Topic Wish List
No
General Wants to make multi-currency
1 Ledger ledger/transaction Wants to make multi-currency ledger/transaction
General
2 Ledger Foreign Currency Trial Balance Report Foreign Currency Trial Balance Report
They want to multi-currency conversion
General rate while transferring foreign currency to They want to multi-currency conversion rate while transferring
3 Ledger BDT (User rate, spot rate) foreign currency to BDT (User rate, spot rate)
General
4 Ledger Foreign Currency fractional variance Foreign Currency fractional variance
General Wants to maintain conversion rate
5 Ledger (corporate, spot and user rate) Wants to maintain conversion rate (corporate, spot and user rate)
General Need to budget for purchase planning
6 Ledger from the factory Need to budget for purchase planning from the factory
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1.6 MODELING OF AP-1 SUPPLIER CREATION/MAINTENANCE
After receiving an invoice, we check supplier name into system. In case of a new supplier, we generate a manual request to authorized person to
create supplier name into the system with cross validation with IT Team.
Apart from suppler name, IT department generally adds supplier address and contact number into the system with other required information. AP
team periodically checking duplicate suppliers name gradually and update supplier master data.
Note:
 There are too many duplicate suppliers in the In-House System.
1.7 MODELING OF AP-1 PAYMENT TERMS
 Currently payment terms, schedule and due date have not been maintained in the In-House System.
 Cannot adjust discounting & allocate cost systematically. Also they generate payment request with net amount and create a journal
manually in case of discount.
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1.8 MODELING OF AP-1 Procurement for export Orders
1.8.1. Foreign Import
Page 19 of 160
1.8.2. Foreign Import with LC
We import raw materials from overseas through BTB L/C against export contract. Upon request from Merchant Team/sourcing team
with PO and other related doc, Bank & LC section opens LC as per PI and send LC copy to concerned team and suppliers.
After shipment, suppliers send vessels details with non-negotiable copy documents to our Logistics Department and Bank & LC Team.
Then they check the documents with LC terms and same copies are sent to our C& F department for tracking vessel information.
C&F agent informs Bank & LC regarding vessel information and request Bank LC department and logistics to collect original shipping
documents from bank for clearing goods.
After clearance from Logistic Department regarding discrepancy of documents against LC terms, Trade Finance team arrange for
documents retirement from bank by acceptance/payment/creating loan.
At present accounting entries are generated during document retirement as per commercial import statement. Process up gradation is
undergoing to accounting for payment against suppliers and inventory recognition on receiving materials by warehouse.
At present documents retirement from bank is accounted as below:
JV Inventory 10,000
Bill payable-EDF/UPAS 10,000
Payment of loan is accounted as below:

BP Bills payable- EDF/UPAS 10,000
Interest Account 1,000
Bank Account 11,000
1.8.3. Foreign import with L/C and shipping guarantee
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In most cases, goods arrived in port before documents at Bank. Beside we receive copy documents from supplier. Accordingly, we get endorsed
copy documents from our Applicant Bank by allowing shipping guarantee against blocked fund. On receiving Original documents later Applicant
Bank pay to supplier from blocked fund.
By endorsed copy documents C&F will release materials from port.
At present transaction for shipping guarantee is not accounted.
However, following entries are under process for proper accounting:

JV Goods in transit A/C 5,000
Shipping guarantee A/C 5,000
JV Inventory A/C 5,000

Goods in transit A/C 5,000
JV Shipping guarantee A/C 5,000

Accounts payable-Supplier 5,000
JV Accounts Payable-Supplier 5,000

Bills payable-EDF/UPAS 5,000
BP Bills payable-EDF/UPAS 5,000

Interest A/C 100
Bank A/C 5,100
Note:
 Both invoice and payment accounting are entered in the custom system on the date of payment.
1.8.4. Foreign import without L/C
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In addition to importing raw materials through BTB L/C, we import some raw materials through Advance payment or otherwise then LC:
Accounting entries are as follows:
BP Advance to Parties 10,000
Bank Account 10,000
JV Inventory 10,000
Advance to Parties 10,000
Note:
1.8.5. Foreign import with Free of cost (FOC)
In some cases, we are working on CM basis and customers send materials for manufacturing for free of cost (FOC). We receive such materials
without cost from supplier, but we may have to bear for local part of landed cost.
Generally, suppliers send sample at FOC but landed cost and other cost incurred in this case. At present these receiving are not accounted.
Note:
1.8.6. Sample at FOC with bulk price adjustment
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Sample collection is needed to import prior to production for quality confirmation. Accordingly sometimes supplier send sample at FOC on
condition of payment with bulk shipment. At present this are not accounted when sample is received against liability.
Note:
1.8.7. Foreign services without L/C
Sometimes services are taken from overseas like Lab test, third party inspection, training fee or others. In this regard, we pay through FTT/FDD.
Accounting entries for the expenses are as follows:
JV Lab test / Inspection /training fee A/C 10,000
Accounts payable-foreign 10,000
BP Accounts payable- foreign 10,000

Bank Account 10,000
Note:
1.8.8. Quality and similar claim from suppliers and customers ‘as suppliers’ agent’
If any fabrics or other direct materials are rejected from Q.C department, we then issue debit note against supplier for defective or inferior quality
Page 23 of 160
of goods.
Our accounting entries are as follows:
JV Suppliers Account 5,000
Inventory 5,000
BR Bank Account 5,000

Suppliers Account 5,000
Note:
1.8.9. Price adjustments
In case of defects/quality issue of materials Merchant/Sourcing raise claims to Suppliers. Suppliers sometimes agrees to adjust the claim with
next purchase.
These RECEIPT are accounted against crediting Inventory.
Note:
1.8.10. Freight amount within commercial invoice price.
Importing materials with payment of Freight on suppliers account, generally freight is separately mentioned in supplier commercial invoice. We
record both separately freight and remaining commercial Invoice value.
At present such freight value are not recorded separately but accounted properly with inventory value.
Page 24 of 160
Note:
1.8.11. Inspection shortage but payment as per invoice
Generally Fabric received from suppliers with Rolls with certain quantity each and Standard group confirmed quantity after inspection by
inspection team. Most cases quantity after inspection did not matched with Supplier Invoiced Quantity and results in short receiving.
At present some cases we have to pay for full invoiced amount although shortage declaration by Inspection Team.
Note:
1.8.12. L/C margin
In terms of importing capital machinery, spares, dyes and chemicals and others, we have to deposit margin into bank as lien for the LC opening at
the time of LC opening. Margin is refunded, when original shipping documents are released.
In this case, bank keeps aside fund as margin and provide us advice, accordingly, we show advance against L/C in the books of accounts.
Margin accounted as below:

BP Advance against L/C 5,000
Bank A/C 5,000
When margin is refunded by bank:

BR Bank A/C 5,000
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Advance against L/C 5,000
When margin not refunded, and liabilities are settled:

BP Accounts payable-UPAS//EDF 50,000
Bank a/c 45,000
Advance against L/C 5,000
Note:
Page 26 of 160
1.9 MODELING OF AP-1 Local Import for export orders
Page 27 of 160
1.9.1. Import with L/C
Documents relating to quantities received from warehouse are checked as per inventory report, commercial invoices, pro forma Invoice and
MMPO or three way matching and finally documents are prepared for creating liabilities supplier wise into system.
When documents are checked from our end, we send Journal Voucher with related documents to Bank & LC section for Issuance of IC as per LC
terms.
Upon accepting of bill of exchange, Bank and LC section send the voucher back with acceptance advices to Accounts Payable team.
Accounting entries are as below:

Accounts payable-supplier A/C 1,000
JV Accounts payable-supplier A/C 1,000

Bills payable-EDF/UPAS A/C 1,000
BP Bills payable-EDF/UPAS A/C1,000

Interest A/C 100
Bank A/C 1,100
Note:
1.9.2. Import without L/C
Page 28 of 160
In addition to importing raw materials through BTB L/C, we import some raw materials urgent basis through Advance payment to Suppliers.
BP Advance to party’s A/C 1,000
Bank Account A/C 1,000

Advance to party’s A/C 1,000
Note:
1.9.3. Import with goods receiving acknowledged without receiving delivery
Some cases we endorse payment related documents i.e delivery challan, bill of exchange, commercial invoice, packing list etc. before goods being
delivered to us. Suppliers then deliver goods to store and asks for acceptance. We confirm with warehouse whether goods are received in our
store.
On receiving approved vouchers from AP team, Bank & LC sections allow official acceptance of back to back documents.
Note:
1.9.4. Sample at FOC
Most cases we collect samples from various suppliers for product development and quality confirmation.
At present we generally do nor record receiving of sample at FOC.
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Note:
1.9.5. Sample payment with Bulk invoice
Sometimes suppliers send samples at FOC on condition of get paid with bulk invoice price.
At present sample receiving are not recorded at MM and payment for such invoices are proceeded after written confirmation from Merchant or
related team.
Note:
1.9.6. Quality and similar kinds of claim
Receiving defective materials, concerned team raise claim to suppliers.

Accordingly, Debit/credit note is raised to/from suppliers.
JV AP – Suppliers account 5,000

Inventory 5,000
BR Bank A/C 5,000

AP – Suppliers account 5,000
Note:
Page 30 of 160
1.9.7. Future or previous price adjustment
Upon raising quality claims to suppliers, sometime suppliers requested us to adjust such claim against next purchases or PO.
At present we have accounted such claim against reducing inventory value.
Note:
1.9.8. Inspection shortage but payment as per Invoice
Generally Fabric received from suppliers with Rolls with certain quantity each and Standard group confirmed quantity after inspection by
inspection team. Most cases quantity after inspection did not match with Supplier Invoiced Quantity and results in short receiving.
At present some cases we have to pay for full invoiced amount although shortage declaration by Inspection Team.
Note:
1.10 Goods and services procured internally for export orders
1.10.1. Wash
Generally washing unit under one legal entity executed washing for other legal entities.
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At present internal PO or related documentation are not maintained and accordingly corresponding accounts payable/receivable are not
maintained.
Only required financial transaction with LC and related formal documents has been generated as per requirement of Custom Department and
accounted accordingly.
However financial transactions for FIRST SALE arrangements has been transacted and recorded accurately.
Note:
1.10.2. RMG Sewing
To manage lead time and other practical reasons, garments sewing planning is coordinated centrally and accordingly sometimes one legal entity
carried sewing operation for other legal entity’s export order.
At present internal service PO or related documentation are not maintained and accordingly corresponding accounts payable/receivable are not
maintained.
Note:
1.10.3. Accessories and packaging
A portion accessories and other items are manufactured internally by one legal entity and supplied to other legal entities. At present PO is
generated in most cases for internal orders. We are yet to account for 100% intercompany transaction by receivable/payable.
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Note:
1.10.4. Embroidery, printing etc.
Internal services for above are not recognized in books of accounts.

Note:
1.11 Transfer pricing (within LE) for export orders
1.11.1. Wash
Generally washing unit executed washing for other units with same legal entities.
maintained for respective units.
Only required financial transaction with LC and related formal documents has been generated for within legal entity as per requirement of
Custom Department and accounted accordingly.
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Note:
1.11.2. RMG Sewing
As stated above sewing planning is coordinated centrally and one business unit is carried sewing operation for other unit within same legal entity.
maintained for respective units
Note:
1.11.3. Accessories and packaging
Internal services for above are not recognized in books of accounts.
1.12 Local procurement for export orders

Accounts payable work flow chart for PO match Invoice
Page 34 of 160
Page 35 of 160
1.12.1. Procurement of goods/services with PO
 Material requirement/requisition is being created by merchant department and send to sourcing dept.
 Sourcing dept. collect quotation from supplier and prepare CS (Comparative Statement)
 Procurement committee select supplier and approve comparative statement.
 After selection, sourcing department create PO and send to respective supplier through mail or by post.
 Supplier send the material based on Purchase Order along with Delivery Challan.
 Q.C inspect manually.
 Audit team validate the Delivery Challan and pass the same.
 Audit team send the same to Inventory team for creating the GRN and inventory team create GRN in the custom system.
 After receiving the documents, sourcing dept. approve and send to AP team,
 Then AP Team check the documents and create a payments request and fill up all information (such as: Unit name, Payments type, Supplier
Name, Accounting head, Requested Persons, Bill date & Number, TDS, VDS & Bill amount and Narration)
 After creating a payments request, we send documents and payments request to audit department.
 After received from audit dept. AP team approved the bill value, adjusted advance, TDS & VDS and other than creating liabilities supplier wise
into system. Then print out the voucher and send to cash management for create daily payment indent.
 After receiving approved indent, along with AP voucher and bill document treasury team print cheque as per indent and send to signing
authority.
 After signing cheque then send it to the supplier manually.
 After payment is complete then send to audit dept.
 Audit team bank payment voucher check and sign and then send to AP for keep it in file.

1. When advance paid to supplier:
BP Advance to Parties (Supplier) 4,000
Bank A/C 4,000
2. When final bill received from supplier:
JV Chemical/Fabric 10,000
Accounts Payable-Local (Supplier) 10,000
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3. When advance adjusted from supplier bill:

JV Accounts Payable-Local 4,000
4. When TDS/VDS deducted from bill:

JV Accounts Payable-Local 150
Tax Deducted at Source-AP 50
VAT Deducted at Source-AP 100
5. When net amount paid to supplier:

BP Accounts Payable-Local 5,850
Bank A/C 5,850
6. When Tax and VAT paid to Govt.:

CP Tax Deducted at Source-AP 50
Cash in hand 150
1.12.2. Subcontract bill – Sewing, Washing, Embroidery and Mending
 Service requirement is being created by merchant department and send to Planning dept.
 Planning dept. collect quotation from service provider and prepare CS (Comparative Statement).
 Approval committee select service provider and approve the comparative statement.
 After selection, we create work order and send to respective supplier through mail or by post.
 When service is finished, service provider send invoice, challan copy.
 Planning dept. approved and manually send all set of documents to AP Team.
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 AP team check the documents and create a payments request.

 After creating a payments request, we send documents and payments request to Audit department.
 After receiving from audit dept. we approve the bill value and create liabilities supplier wise into system.
 After creation of liabilities, then print out the voucher and send to cash management for creating daily indent.
1) When advance paid to supplier:
Bank A/C 4,000
2) When final bill received from supplier:

JV Subcontract Expenses 10,000
3) When advance adjusted from supplier bill

4) When net amount paid to supplier:

Bank A/C 6,000
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1.12.3. Procurement of goods/services without PO

Accounts payable work flow chart for Non PO match Invoice
Page 39 of 160
i)Lab test bill

Merchants send order request to Lab test service providers. Consequently, they execute order instantly and create invoices which are sent to us
monthly.
We prepare a worksheet in Excel and check prices of the test according to approved price list and send to merchants for their comments and
verifications as well.
After invoices are checked by merchants, invoices are sent to audit for verification, and accounts creates a payment request in the system and is
also responsible for deducting TAX and VAT.

1. When final approve bill received:
JV Lab test Charge 6,000
Accounts Payable-Local 6,000

Bank A/C 5850

Cash in hand 150
ii)Third party Inspection

There are few types of inspections incurred in the factory premises conducted by Lab test providers as requested by merchants.
Respective service providers issue invoices and send to accounts department for payment.
Accounts Payable send to merchants for management approval. When approved, merchants send back to accounts department and accounts
creates a payment request in the system and invoices are sent to audit for verification.
Page 40 of 160

1. When final approve bill received:
JV Inspection Charge 6,000


Bank A/C 5850

Cash in hand 150
1.13 Local cost of imported items for export orders
1.13.1. LC opening related bank charges
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The following charges incurred while opening LC for goods import. Usually bank deducts those charges from respective current accounts of
concern units.
 LC Opening Charge
 Bank Charge & Commission
 LC acceptance commission
 LC amendment charge
 LC Stamp charge
 Swift /Cable charge
 Handling charge
At present all above charges are accounted as expense under bank charges heading. Recently we are working to include these costs with inventory.
1.13.2. Freight
Sometimes Sea/air Freight is paid in local currency to local forwarders as per logistics departments.
At present these costs are accounted as expense under expense heading.

JV Sea/air Freight A/C 5,000
Accounts payable-Local 5,000
BP Accounts payable-Local 5,000
Bank Account 5,000
1.13.3. Custom and port charges
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All sorts of custom and port charges are paid by C & F agent as business unit of the group.
At present invoices are generated by C&F agent for actual expenses for reimbursements and service receiving entity has accounts these charges as
expense.
1.13.4. C&F agent expenses
Historically C&F agent did not invoiced for service charges as the agent is a business unit of the group. Recently C&F has started to generate
invoice for service charges.
At present these are these charged are accounted as expense.
1.13.5. Local transport charges
Local transport cost is incurred to carry materials form port to our site.
At present these costs are not accounted to calculate total cost of ownership of materials imported.
JV Carrying Charge A/C 5,000
Accounts payable 5,000
BP Accounts payable 5,000

Bank Account 5,000
1.13.6. Loading/unloading and other expenses
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Loading and unloading cost incurred for imported materials at various points. Accordingly we pay for loading and unloading charges. At present
these costs are not accounted to calculate total cost of ownership of materials imported.
1.13.7. Financial Charges
Some cases financial charges are incurred up to a point of receiving materials. But at present these financial charges are not accounted to include
to raw materials cost.
Present accounting entries are as below:
BP LC Opening Charge 300
Swift charge 200
Bank Charge & Commission 500
LC acceptance commission 600
Bank Account 1,600
1.14 Bulk procurement for deemed export
1.14.1. Import of Dyes and Chemicals, Paper and Accessories items etc.
Dyes and chemicals, papers, accessories packaging materials and other materials are imported in bulk for deemed export business units like
washing and accessories, etc.
General process of executing import transactions are followed as above.
Page 44 of 160

JV Dyes and chemicals/ accessories/ packing materials 10,000
Cash L/C Raw materials A/P 10,000
BP Cash L/C Raw materials A/P 10,000

Bank A/c 10,000
1.14.2. Purchase from local market with PO
Sometimes we purchase raw materials including dyes and chemicals, accessories and packing materials from local market with PO for deemed
exporters unit.
These transactions are accounted with respective inventory items and processed as in above
1.15 Procurement for Projects
1.15.1. Import for Projects
Inventory items or assets are imported with reference to specific projects either for construction, real estate or projects for other business units.
Generally, project is traced in detail for project profitability and other management needs.

JV Construction of consumable materials 10,000
Page 45 of 160

Bank A/c 10,000
For advance payment to suppliers

Accounting entries are as follows;
BP Advance to parties A/C 1,000
Bank Account A/C 1,000

Advance to parties A/C 1,000
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1.16 Local purchase for projects
Page 47 of 160
The following descriptions are as per above mentioned diagram:

 Existing Material check and create material requisitions.
 Material Requirements/requisitions approve by this project team in-charge then sends to HO Civil Construction Dept.
 Material purchases requisition check, verify and approve by authority and send to the procurement team for purchase.
 Procurement team collect quotation from supplier, prepare CS (Comparative Statement) and check & approved by the authority.
 Then create purchase order and send to the vendor.
 Project, receive goods or materials from supplier against Indent and manual goods receive challan, get pass and supplier bill send to the
procurement team.
 Procurement team check and match with submitted bill by supplier.
 After checking procurement team all document sends to the AP team for payment.
 AP team make forwarding and sign and send all document to HO construction dept. for approval.
 After receiving approved bill from HO construction, AP team send to audit team.
 Audit team check the documents, if okay then send to the cash management team for approval sign.
 AP team. Then create payment request against approved bill and send to cash management for create indent.
 After receiving approved indent, along with AP voucher and bill document treasury team print cheque as per indent and send to signing
authority.
 After signing cheque then send it to the supplier manually.
 After payment is complete then send to audit dept.
 Audit team bank payment voucher check and sign and then send to AP for keep it in file.

Bank A/C 4,000
Page 48 of 160

JV Consumption of construction material 10,000



Bank A/C 5,850

Cash in hand 150
1.16.1. Sub contract for projects
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We have some construction project in different site working for our building construction and maintenance by different sub-contractors receiving
funds in advance and submitting bills as per work in progress. After project is ended sub-contractors submit final bill for payment and advance
adjustment accordingly.
Our accounting entries are as follows
JV Advance to parties 5,000
Bank Account 5,000
BP Construction sub contract-CWIP 6,000

Advance to parties 5,000
Bank Account 1,000
1.17 CSR project related procurements
1.17.1. Non business procurements
We build mosque, madrasah, School, College and others as per management approval in different location. Construction materials and other
goods/services are procured from local market for those these purposes.
Generally, these expenses are accounted in business with separate headings.
1.18 Procurement of assets and CAPEX
1.18.1. Import of Capital machinery and other assets with LC
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Capital machinery or other assets are imported following above mentioned process for LC opening and after due management approval.

JV Capital Machinery 10,000
Bills payable-EDF/UPAS 10,000
BP Bills payable-EDF/UPAS 10,000

Interest Account 1,000
Bank A/c 11,000
1.18.2. Local procurement of capital assets and spares
We procure capital assets and spares through issuing PO from local market. Then goods are delivered to concerned store and store receive goods
and update GRN into system.
JV Capital Machinery/spares 10,000

Bank A/c 10,000
1.18.3. Capital expenses for existing assets
In case of additional expenses are incurred for existing assets as capital expenditure in nature, we record such expenses as asset in related ledger
of the assets. However, at it may not be possible to relate additional expenses to the assets in existing FA module.
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JV Assets account 10,000

Bank A/c 10,000
1.18.4. Spares and other items procured with Machinery and other equipment’s
We purchase machinery and other equipment’s along with spare parts with zero value.
At present all such spare parts cost are not accounted separately as inventory.
1.18.5. Import of inventory items for local business
Such items are imported for non-garments business and some items for garments business.
Bank and LC section Bank & LC section start import proceedings after due approval of requisition/PI/PO by management.

In case of cash L/C
JV Inventory 10,000
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Bank A/c 10,000
Page 53 of 160
1.19 Local Procurement for goods and services
1.19.1. Local Procurement of goods or services with P. O

D e p a rt m e n tD e p a rt m e n tD e p a rt m e n t
F u n c ti o n a l
Requirement of Purchase indent (In- Approved

Sta rt
Materials by Manual house System) Requisition
P r o c u r e m e n t A u d it
End
Checked by Audit
Yes No
(Out of Sysytem)
Yes
PO create & approve

RFQ Quotations & Create Payment
by department in Approved PO sent to
Compa rative Request (In-house
charge (In-house Supplier (Manua l)
Sta tement (Manua l) System)
System)
e v e n t o ry
Yes
Quality & Quanti ty

Material receipt
Inspection Check checked through Yes
GRN create against PO from
S t o r/In
(Manual) Delivery Challan

Supplier (Manua l)
(Manual)
D e p a rt m e n t
P a y a b le
Received all
AP Voucher create
Request send to document along
based on Payment
chief accountant for with Payment
Request No (In-
Approval (Manua l) Request No
house System)
(Manua l)
M an ag e m e n t
D e p a rt m e n t
C ash
Approve voucher
Indent send to After payment Bill
receive from AP Indent create (In- Cheque prepared Payment to s upplier
treasury for voucher send to
team for crea te house System) (In-house System) (In-house System)
Payment (Manua l) Audit
Indent (Manua l)
Page 54 of 160
The following descriptions are as per above mentioned diagram:

 Material requisition/requirement is being created by Functional department in excel format and send to store.
 After received the requisition, create purchase Indent by store in house system & then send to audit team as a hard copy for review and
approval.
 Approved indent sends to procurement team for process the RFQ quotations as well comparative statement by manual.
 Procurement dept. collect quotation from supplier and prepare CS (Comparative Statement).
 Procurement Committee select the supplier and approved comparative statement.
 Procurement team create PO based on approved CS & approved the same by the department in-charge.
 Send the approved PO copy to respective supplier through mail or by post.
 Supplier send the material based on Purchase Order along with Delivery Challan.
 Quality team do the inspection manually.
 Audit team validate the Delivery Challan and passed the same and send to Inventory team.
 After received, Inventory team create GRN in house custom system and send to Procurement team.
 Procurement team create the Payment Request and send all set of approved documents to AP team.
 Then AP team, check the documents and fill up all information in payments request form (such as: Unit name, Payments type, Supplier Name,
Accounting head, Requested Persons, Bill date & number, TDS, VDS & bill amount and Narration)
 Then approve the bill value, adjust the advance, TDS & VDS amount and create liabilities supplier wise into system.
 After creating liabilities, print out the voucher and send to cash management for creating daily payment indent.
 Chief Accountant approve the AP Voucher and send to Cash Management team.
 Cash Management team create Indent in the system.
 In the indent Bank Name, Account number has been mentioned by the cash management team.
 Then send this to Treasury team manually for payment.
 In the system, they prepared the cheque & the send to supplier manually.
 After payment Bill Voucher send to audit team for post audit.

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BP Advance to Parties 4,000

Bank A/C 4,000

JV Material/Service 10,000


VAT Deducted at Source-AP 1,000

Bank A/C 4,500

VAT Deducted at Source-AP 1,000
Cash 1,500
1.19.2. Local Procurement of goods or services without P.O
We pay for some goods and service without PO or work order. Some example of payment without PO is as below:
Page 56 of 160
i) Insurance premium:
Insurance cover note is required when opening BTB L/C. To do so, Bank L/C department assess the insurance cost based on invoice price and
submit documents to Insurance Company. Afterwards, we pay to Insurance Company against insurance cover note through consolidated advance.
After month end, they submit bills along with cover note, then we adjust the advance.
BP Advance to party 6,000
Bank Account 6,000
JV Insurance expense A/C 5,000
Advance to party 5,000
ii) Utility bill:

Factory Accounts dept. receive audited bill and send through mail set of documents of (Electric or Gas bill) to AP team.
After receiving the documents, we create a payment request and fill up all information (such as: Unit name, Payments Type, Accounting head,
Supplier Name, Bill number & date, amount and Narration)
After creating a payments request, we approve the bill value and create liabilities supplier wise into system. After liabilities creation, then print out
the voucher and send to cash management for creating daily payment indent.
i. When final bill received from supplier:
JV Utility Bill 10,000
ii. When TDS/VDS deducted from bill:


Cash at Bank 9,500
iii) Factory medical treatment:

Factory Accounts receive the treatment sheet from Medical dept. AP team receive monthly treatment summary from factory accounts. Then every
Page 57 of 160
month service providers submit medical bill to AP team. After receiving the documents, we match these two reports and send to audit
department. We create liabilities into system after audit verification. As per summary sheet factory accounts receive due amount from employees
and give entries into register manually and auditor verify register day to day as well.
a) When cash received from Employee (monthly entry to cash book):
CV Cash in Hand - Factory - Liquid Cash 10,000
Head Office remittance 10,000
b) Alternatively HO Cash book entry:

JV Factory Remittance 10,000
Provision for Medical Bill 10,000
c) When final bill received from supplier:

JV Provision for Medical Bill 10,000
d) When amount paid to supplier:

Bank A/c 10,000
iv) Medicine Bill

Factory Accounts receive the deduction summary from medical dept. against medicine. After receiving the audited summary they collect due
amount from employees at the end of the month. After collection, they remit to head office.
a) When purchased medicine
JV Medicine (inventory) 15,000
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b) When pay to supplier

Bank A/C 15,000
c) When cash received from Employee and sent to Head office:

CR Cash in Hand - H/O - Liquid Cash 10,000
Medicine-Inventory 10,000
v) Air Ticket (Travelling) Bill

Admin dept. manually send set of documents of supplier bill, E-ticket, etc. After receiving the documents we create a payments request and fill up
all information (such as: Unit name, Payments Type, Accounting head, Supplier Name, Bill number & date, and Narration). After creating a
payments request, we send the documents and payments request to Audit department. After receiving from audit dept. we approve the bill value
and create liabilities supplier wise into system.
JV Airfare exp. 5,000
2. When pay to supplier:

Bank A/c 5,000
vi) Mobile Expense

Employees are allowed to use corporate mobile SIM up to a certain amount that is considered mobile expenses monthly. Furthermore, Employees
are seen to use more than the limit they have. That is adjusted with their salary as well.
Mobile operator sends monthly mobile bill to us and after audit verifies HR data. Accounts payable creates a payment request in the system.
Initially payment is made from a particular company and afterwards adjustment is made among sister concern units.
In this circumstance, our accounting entries are as follows:
X Unit:
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i. When mobile bill received from supplier:

JV Mobile expenses 8,000
Sister concern unit-Y 2,000
ii. When amount paid to supplier:

Bank A/C 10,000
Y Unit:
i. When sister concern unit book expenses:
JV Mobile expenses 2,000
Sister concern unit-X 2,000
1.19.3. vii) Freight and B/L Charge (Export)
We pay advance for air Freight and B/L Charge in local currency to local forwarders as per export departments.
Finally these costs are accounted as expense after advance adjustment.
vii) When advance paid to supplier
Bank A/C 5,000
viii) When final bill received from supplier
Air Freight-outward or B/L Charge 5,000
ix) When advance adjusted from supplier bill

1.19.4. vii) Freight (Import)

Sometimes Sea/air Freight is paid in local currency to local forwarders as per logistics departments.
At present these costs are accounted as expense under expense heading.
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JV Sea/air Freight A/C 5,000

Bank Account 5,000
1.19.5. Procurement from Inter-companies and inter unit
When any unit requires to procure anything from inter companies or inter unit, this particular unit issues P.O/W.O for the services.
JV Repairs & maintenance (electrical) 10,000

Bank Account 10,000
1.19.6. Discount/ Freight
Sometime suppliers allow discounts after PO price and we adjust such discounts with invoice value.
Sometimes we bear local carrying cost in addition to PO price and record such cost as expense.
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1.19.7. Intercompany/unit expense allocation
Certain goods or services are procured at Group level such for diesel, mobile, cash carrying etc. Accordingly, we pay for total invoice from a unit.
Such expenses are allocated monthly within intercompany units based on use by manual calculation.
1.19.8. Maintenance expenses with reference to specific assets/utilities
We have different types of assets in our business and there are many assets for which maintenances are required periodically but, currently
expenses are not being booked asset wise.
JV Repairs & maintenance-Assets 10,000
2. When amount paid to supplier:

Bank A/C 10,000
1.19.9. Vehicle maintenance expenses with tracking vehicle reference
We have more than 300 vehicles which are used in our organizations and therefore maintenances are required periodically. All expenses incurred
regarding vehicle maintenance are booked unit wise and vehicle number wise.
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JV Repairs & maintenance-Vehicles 10,000

2. When amount paid to supplier:

Bank A/C 10,000
1.19.10. Purchase without supplier
In some cases, we pay advance (IOU) to our employees for emergency purchase. Respective departments purchase different kinds of materials
from suppliers. After purchase, they submit approved bill to treasury for adjustment.
JV Cash in hand-IOU (Employee) 10,000
Cash in hand 10,000
BP Materials 10,000
Cash in hand-IOU (Employee) 10,000
1.19.11. Payroll related invoice
When employees resign or retire from their services, payroll team prepare a final settlement as per salary sheet, deduction sheet. After
documentation, they send the set of documents to Audit.
On receiving the documents from payroll, we create a payment request and create liability into system employee wise
i. When final settlement amount creating a liability:
JV Salary & Allowance 5,000
Earn Leave 500
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Service Benefit (both debit and credit) 200

Notice Pay 1,000
Salary & Allowances-AP 4,700
ii. When net amount paid to Employee:

BP Salary & Allowances-AP 4,700
Cash at Bank 4,700
1.20 Tax and VAT
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1.20.1. Withholding Tax
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At present we calculate and deduct withholding manually from supplier’s invoice as per Income tax regulation and accordingly we deposit
deducted amount into govt. treasury through treasury challan. After depositing TAX to national exchequer, we gave copy of TR Challan and Tax
certificate to respective supplier.
In case of advance payment we only set aside taxable amount from advance. After final bill is submitted, we create Tax payable into system and
consequently we deposit into Govt. treasury.
Accounting entries are as follows
JV Material Purchase A/C 1000
A/C Payable 1000
JV A/C Payable 100

TDS Payable A/C 100
BP A/C Payable 900

Bank A/C 900
CP TDS Payable A/C 100

Cash A/C 100
1.20.2. Withholding VAT
Like withholding tax, withholding VAT required to be deducted and deposited to Government treasury for procurement of certain goods and
services. Accordingly we deduct from and create VAT payable into system and finally we deposit into Govt. treasury.
Accounting entries are as follows

JV Material Purchase A/C 1000
A/C Payable 1000
BP A/C Payable 800

Bank A/C 800
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JV A/C Payable 200

VDS Payable A/C 200
CP VDS Payable A/C 200

Cash A/C 200
1.20.3. Periodic VAT reporting with expense
Generally vat amount is included in invoice price and we pay total invoice price against expense or inventory.
During submission of vat return we need to include total amount vat paid for procuring goods or services within invoice price and we report such
amount by manual calculation.
Finally vat department coming to us at any point of time and request us to give a statement of total vat paid as per audited financial statement. As
present we prepare such statement manually with physical checking of every voucher.
1.21Bank Guarantee and Shipping Guarantee
1.21.1. Bank Guarantee
Generally bank is issued for utility connection, tender submission or any types of contract as required. Accordingly we request Bank to issue bank
guarantee in favor of requested authority. Bank generally issue guarantee after getting certain percentage as Margin in FDR.
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1.21.2.Shipping Guarantee
As stated earlier shipping guarantee is generally issued by Bank as per our request to release goods from port without Original documents from
supplier.
AP present liability for shipping guarantee is recorded manually as a statement but not recognize in books of accounts.
1.21.3.FDR lien for Guarantee
When we require bank guarantee, and then request to bank for issuing bank guarantee. In this regard, bank creates a FDR against bank
guarantee. This FDR remains lien against bank guarantee.
Our accounting entry are as follows:
BP FDR A/C 50,000
Bank A/C 50,000
BP Bank charge 1,000

Interest expense (B. guarantee) 500
Bank A/C 1,500
BR Bank A/C 60,000

Interest income 10,000
FDR A/C 50,000
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1.22 Invoicing Currency
1.22.1.Foreign currency Invoice
We generally import raw materials, capital machinery, spare parts and pay against those in USD or any other foreign currency. At present we
record the invoice in foreign currency with exchange rate.
1.22.2. Invoice currency other than payment currency
Some cases invoices generated by supplier in a foreign currency other than currency of bank accounts.
In this cases we manually convert invoicing currency to USD and record in existing system.
1.23 Invoice approvals
1.23.1.Invoice approvals
Firstly, we create invoice into system for payment and take a print copy of the voucher along with approved documents with signature and send to
our chief of accounts for invoice approval coupled with we send invoice information through in house system.
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1.23.2. Batch approvals
We create single invoice into system supplier bill wise and take print copies of the vouchers with signature and send to our chief of accounts
through in house system, our chief of accounts incorporate all single invoices and create a batch for approval. There is an option in our in house
system which our COA selects and system itself forms a batch with all incorporated invoices.
1.23.3. Invoice Hold
When we need to hold invoice, we inform our chief of accounts of the invoice and they do not send into our daily indent for payment.
1.24 Payments
1.24.1.Scheduling of payment
Some time we manually schedule for local supplier payment, then we pay as per manual schedule.
Accepted bill and some other liabilities has paid on maturity or a certain prescheduled date. Some of these are schedule maintained as a statement
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in existing Software.
1.24.2. Daily payment planning with bank balance
After creating invoice and submitting to our chief of accounts, they make a plan with all invoices waiting in cue to as per bank balance of a
particular day. As per their payment schedule, they create daily indent in our system.
1.24.3. Multiple payment for one invoice or group of invoice
Some time we generate multiple payment at different dates for a single invoices or group of invoice for same supplier.
1.24.4. Multiple Invoices paid together
After batch approval, our chief of accounts send into daily indent and treasury print out a group invoice and cheque for payment to suppliers.
 As per daily indent, cheques are printed from in-house custom systems.
 Even for multiple invoice payments, users individually select the invoices from the list of values in the Indent.
 Treasury team takes the bank payment voucher printout and then along with the cheque send to authorised signatory.
 After getting approval cheque disburses to supplier and collect money receipt.
 Payment to the domestic supplier is generally made through pay order, Cheque and Cash.
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1.24.5. Payment for other business unit or company
In some cases, we pay to supplier from other concern unit when fund is insufficient. In this case, we select bank account of other concern unit for
payment and our in house system automatically create a journal entry into the concern unit.
X Unit:
JV Materials Accounts 1,000
JV Accounts payable 1,000

Sister concern unit-Y 1,000
Y Unit:
BP Sister Concern unit-X 1,000
Bank Account 1,000
1.24.6. Payment notification
At present we manually notify our suppliers to inform to take their instrument when it becomes ready.
1.24.7. Advance payments
 For advance payment, Procurement department send the PO copy and payment request for pre-payments.
 When actual invoice is received purchasing department also specifies the advance already taken and create payment request and send to AP
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team.
 For advanced payment TDS/VDS amount deduct from bill and adjustment with final bill.
BP Advance to Supplier A/C 500
Bank A/C 500
JV Expense A/C 1,000

Accounts payable A/C 1,000
JV Accounts payable A/C 500

Advance to supplier A/C 500
BP Accounts payable A/C 500

Bank A/C 500
1.24.8. Payment by new bank liability of UPAS/EDF/Deferred
When we pay to suppliers at sight basis, then bank on our behalf pays to suppliers and on the contrary bank gives a credit facilities in UPAS or
EDF forms as negotiated with bank. Consequently, we pay the amount with interest at maturity. In terms of deferred payment, bank pays the
amount on due date from our FC account as negotiated with suppliers.
1.24.9. Payment by bill of exchange
In terms of LC payment, seller issues bill of exchange that conveys payment order to us and we pay to supplier for goods at maturity. In this case,
we duly sign at the back page of the bill of exchange and liability to suppliers becomes bills liability.
Afterwards, sellers submit bill of exchange to banks and bank pays the amount accordingly.
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1.24.10. Payment by Cheque/PO/FDD
 Cheque: As per daily indent, cheques are printed from in-house custom systems.
 Treasury team takes print out of the bank payment voucher along with the cheque and send to authorised signatory.
 After getting approval cheque are delivered to suppliers and in return, we collect money receipt.
 Pay Order/FDD: Payment to the suppliers is generally made through pay order/FDD. After getting approval from authorised signatory,
corporate team advise bank to make Pay Order/FDD for the suppliers. Bank prepares pay orders/FDD. Supplier collects pay order from
Treasury.
1.24.11. Payment by BEFTN/RTGS/TT/Wire transfers/bkash
In some cases, we pay to suppliers through BEFTN/TT/wire transfers. We use RTGS system for fund transfer within our business units. To do so,
we have to fill out a bank prescribed form with approval and send to our concern bank.
1.24.12. Payment with personal Credit cards
Payment against Compliance services is made overseas through online credit card payment. When we receive req. by mail from compline dept.
with online link. After payment is done we maintain accounting entry as below:

1. Fund deposited to card account:
BP Directors current A/C 6,000
Bank A/C 6,000
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2. When expenses charged

JV Expenses A/C 6,000
Accounts payable-Supplier 6,000
3. Supplier payment from card:

JV Accounts payable-Supplier 6,000
Directors current A/C 6,000
1.24.13. Payment in Cash
Employees are generally given advance in cash for travel related expenses which is also adjusted (remaining balance) in cash after the travel. Also,
other employee expenses are paid in cash. In case of small amount, supplier is also paid in cash. In some cases, employees are given IOU
(advance) for official requirement. After finishing the work, employees submit the bill and adjust their IOU.
1. When cash paid to employee:
CP IOU (employee name) 6,000
Cash A/C 6,000
2. When bills submitted for adjustment

JV Expenses A/C 6,000
IOU (employee name) 6,000
1.24.14. Petty expenses payment
There are too many petty expenses incurred in a day and therefore we keep aside a petty cash to meet those expenses and we usually reconcile end
of the day.
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1. When cash paid for petty expenses:

CP Entertainment/ refreshment/ conveyance 6,000
Petty Cash A/C 6,000
1.24.15. Refund from Suppliers and others
Sometime suppliers refund against advance or for other reasons.
1.25 WISH LIST AP-4

Process
Topics Sub-Topics Wish Lists
ID
Required Category wise suppler segregation with all legal information (TIN, BIN
etc)
#1 Supplier Master Data creation Supplier Master Data creation Centralize the supplier set-up capability for each business in order to minimize
the risk of unauthorized or duplicate creation of suppliers
Integrated purchasing and accounts payable system with a single supplier
database
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We want to receive supplier bill/invoice from concern departments system

wise.
We need a register system wise in which we can keep record of the bill and we
can start payment process.
#2 Bill Receiving Process Bill Receiving Process Besides, we need to have a complete bill movement status whether bill is passed
to different dept.
There should have a tracking number of a bill in the system after receiving from
functional dept. by which we can track the bill and accordingly we shall start
payment process.
Payment Terms & Distribution Payment Terms & Distribution Converging payments schedule, Due date, Discount & Distribution of expenses.
#3
Sets Sets In terms of few bills, we do obtain cash discount from vendor, we require this
option into system in which discount amount will systematically adjusted with
particular bill amount.
We wish to obtain three-way matching like P.O inventory GRN into new system
We require a unique number to track the particular bill/invoice sent from
warehouse
In view of taking EDF/UPAS loan, we need to create bank liabilities and
therefore loan /bill reference number should be aligned under a particular L/C
in the subsidiary account. Furthermore, when payment of a particular bill is
#4 Local & Foreign Import Import: Over all made, bill number should systematically be disappeared or inactive.
BTB L/C generally opened against Export contract, here we need to know the
status of the particular L/C of which payment has already been made and we
want to see the bill reference numbers on the screen
Our requirement is to get adjustment systematically with L/C payment that has
already been made on particular consignment
In terms of importing Poly materials, we need to differentiate poly materials
under a particular LC for costing calculation
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In terms of foreign import, we do obtain documents for goods clearing from

bank, here bank guarantees us by endorsing documents. We need to know
shipping guarantee liabilities in the system and the charges deducted L/C wise.
As per govt. rule, imported R/M for garment is forbidden to sell in the local
market but transfer of goods to inter unit allowed. In this context, we need to
adjust receivable with LC amount
There must have several L/C numbers under a P.O. We need to know those LC
numbers in the system while tracking P.O number for payment Invoice
Based on LC export contract, we are allowed to do BTB maximum 75-80%.
When creating a payment invoice, it is essential to know the payment of LC
being made against those contract
Apart from direct export, our few concern units earn revenue through sub
contracts within the group, this revenue is considered deemed export, we need
to know the cost of the deal unit wise through inter billing system
We wish to obtain three-way matching like P.O inventory GRN into new system
#5 Payment at sight: Payment at sight We require a unique number to track the particular bill/invoice sent from
warehouse
Bill reference number should be aligned under L/C number. If there are more
than one bill number under a particular L/C, that should be visible on the screen
Advance payment is made against P.O and PI, we need to tag P.O and PI number
when generating payment request. Besides PO number is also required while
adjusting advance.
#6 Advance payment(F.T.T/F.D.D): Advance payment(F.T.T/F.D.D):
In case of advance payment against PO, there may have several PO, we need to
know the advance amount adjusted against the particular PO and need to know
advance paid against those PO are still unadjusted
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In this case, we need to track L/C number while making advance payment so
that we may understand the particulars L/C advance payment has been made.
#7 Margin on L/C Margin on L/C We also need to know advance status of the particular L/C systematically while
making final payment.
It is necessary to keep an option of L/C expiry date or due date as a notification
through which we can pay or adjust if there is any adjustment like margin
refunded.
Required to auto calculate Tax and VAT as per govt. VAT/TAX rate what would
previously be defined in the system as per bill, besides we can put or change Tax
rate on the basis of fiscal year
It may not be required for us to calculate VAT and TAX for few bills in some
cases In this perspective, we wish to have that option by which we can pay the
bill amount without deducting TAX and VAT
We require treasury challan form Tax certificate as per section (58) and Vat
certificate (6.6) in the system that will automatically be generated using bill
#8 Withholding Tax and VAT Withholding Tax and VAT information. There should have the option of changing values as well as the
format.
In terms of reduced VAT, we do deduct VAT and TAX simultaneously on bill

amount and therefore we get a record on VAT payment. In case of standard VAT
rate, supplier pays VAT amount on behalf of us. In return, supplier provides
Mushok (6.3). We need to have VAT paid amount scenery supplier wise.
We need to create TDS and VDS payable while paying advance
#9 Refund from suppliers Refund from suppliers

We wish to adjust the refunded amount P.O wise or project wise
Local Purchase (Goods/Service) Local Purchase (Goods/Service) We require PO and GRN wise data to create standard invoice and accordingly
#10
With PO/WO With PO/WO system will match with P.O and GRN whichever is required.
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To create standard invoice, we need to put other information namely unit name,
accounting head, supplier name, bill value, style number, project name, cost
center and etc.
Need to generate a prepayment invoice to the supplier for advance and paid
against it, when final bill is submitted standard invoice will be prepared and
adjust the prepayment (advance) PO, style, project, cost center wise, fully or
partially which is earlier paid.
When generating a standard invoice, whether advances as per PO has been
given or how much outstanding/ advance are shown due.
We need to have that information like supplier name, account head, project
name and so on in the drop down list in generating standard invoice. So that we
can easily find out expected information.
We wish to have a barrier in the system so that we can understand that the
payment is made as per PO and GRN. If invoice value exceeds PO and GRN value
we will be notified that excess payment is being made.
In case of advance payment against PO, there may have several PO, we need to
Local Sourcing (From Tejgaon Bills or invoice are received from sourcing department and before that they
and CEB):(Chemical, Fabric, Local Sourcing (From Tejgaon create a payment request using bill relevant information, we like to have this
#11
Printing ink, Accessories, Spare and CEB): payment request number that they have already generated. Using this number
parts, Service with PO & WO.) we shall proceed for payment
Factory Medical Dept(Factory
#12 Factory Medical Dept
medical treatment bill) We require the summary sheet auto created into systems
Bills or invoice are received from export department and before that they
create a payment request using bill relevant information, we like to have this
Export department (1) Freight payment request number that they have already generated. Using this number,
#13 Charge (Air)-Export Export department we shall proceed for payment. Besides, we need to adjust advances Bill or style
2) B/L Charge) wise.
Furthermore, we need to know the merchant’s details against those expenses.
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Expenses need to be tracked with particular LC number so that we can measure

actual expenses under a particular LC or style.
Bills or invoice are received from logistic department and before that they
Logistic department (1) Freight create a payment request using bill relevant information, we like to have this
Charge (Sea) payment request number that they have already generated. Using this number,
#14 2) Freight Charge (Air) Logistic department we shall proceed for payment. Besides, we need to adjust advances Bill or style
3) Int. courier bill wise.
4) Carrying (Local) Expenses need to be tracked with particular LC number so that we can measure
actual expenses under a particular LC or style.
We need to get matching data with PO, GRN. and invoice when making payment
request.
Transport department(1)
Vehicle repair Vehicle wise report required to identify efficiency
2) Fuel & lubricants
Each and every expense against vehicle needs to track with particular vehicle
#15 3) Vehicle Purchase Transport department
number.
4) Spare Parts
5) Police Case & Parking bill, Vehicle numbers need to be tagged to PO if possible.
etc.) In case of advance payment against PO, there may have several PO, we need to
Bills or invoice are received from IT department and before that they create a
payment request using bill relevant information, we like to have this payment
request number that they have already generated. Using this number, we shall
proceed for payment.
IT department (1) IP phone &

#16 Internet bill IT department To create standard invoice, we need to put other information namely unit name,
2) Repair & maintenance bill) accounting head, supplier name, bill value, project name, cost center and etc.
In terms of similar bills (recurring) like rent, monthly subscriptions etc. a fixed
amount of payments need to be made to the supplier periodically. In paying to
supplier, we need to create a map or calendar in the system by which payment
would be made on the basis of payment deadlines. Then a recurring invoice
template shall be created
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In terms of paying monthly bill, we expect a notification that monthly bill

payment should be made and accordingly we also require a template that must
be visible on screen then create an invoice against supplier.
Need to generate a prepayment invoice to the supplier for advance and paid
against it, when final bill is submitted standard invoice will be prepared and
adjust the prepayment (advance) style, project, cost center wise, fully or
partially which is earlier paid.
We need to have that information like supplier name, account head, project
name and so on in the drop-down list in generating standard invoice. So that we
can easily find out expected information
#17 Mobile Expense Mobile Expense
We need actual mobile expenses from our company end
Bills or invoice are received from Merchandising department and before that
they create a payment request using bill relevant information, we like to have
this payment request number that they have already generated. Using this
number, we shall proceed for payment.
We need to tag style number to the lab test charges so that we may get lab test
expenses style wise.
#18 Lab test Bill Lab test Bill
There are several lab test invoices we need to track a report number that should
be unique. If service providers mistakenly or intentionally forward bill next
month repeatedly, we can identify that the payment has already been made
against those invoices.
Side by side we want to know for few invoices that are charged more than
regular price.
We need to tag style number to the inspection charges so that we may get
inspection charges style wise.
#19 Third party Inspection Third party Inspection We often receive Inspection bills so we need to track a report number that
should be unique. If service providers mistakenly or intentionally forward bill
next month repeatedly, we can identify that the payment has already been made
against those invoices.
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#20
Foreign payment by Credit card
#21 Insurance premium through Insurance premium through
Bank LC department Bank LC department We need to tack those premium L/C wise, style wise
Factory Electrical Department
#22 (Diesel purchases for generator In case of fuel cost, we need to create intercompany billing system to Identify
& Vehicle) Factory Electrical Department fuel cost unit wise.
We want to get employee related information to create payment request
systematically.
In case of cash carrying bill, we wish to differentiate or allocate the cost unit
wise.
We want to know security hire charge and cleaning bill unit wise as well.
HR, Admin & Finance
HR, Admin & Finance In terms of similar bills (recurring) like rent, monthly subscriptions etc. a fixed
#23 department (1) Employee Final
department amount of payments need to be made to the supplier periodically. In paying to
Settlement)
supplier, we need to create a map or calendar in the system by which payment
would be made based on payment deadlines. Then a recurring invoice template
shall be created
In terms of paying monthly bill, we expect a notification that monthly bill
payment should be made and accordingly we also require a template that must
be visible on screen then create an invoice against supplier.
#24 Payment request with exact information need to be received from Income Tax
Director Remuneration Director Remuneration dept.
W.O/ P.O should be required to generate by system. For creating standard
invoice, we need to pull out the data from relevant source.
We wish to obtain all sorts of carrying bill L/C and style wise.
Tejgaon Warehouse (1)
Carrying & transport bill
#25 Tejgaon Warehouse Most often service providers send to Tejgaon warehouse they check out the bills
2) Diesel carrying bill
3) Loading & Unloading bill) and send to us.
For any kinds of bills whether those are sent through our department must be a
tracking number by which we can track and understand whether it has been
twice.
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#26 Planning & production Tejgaon Planning & production Tejgaon For creating standard invoice, we need to pull out the data from relevant
source.
Need to track with LC or style number
In terms of air ticket, we need to find travelling related information like
#27 employee name, ID and specific unit into the system when creating a payment
Tejgaon Admin Tejgaon Admin invoice.
We need to book construction materials expenses project wise

PO should be generated and GRN also need to be required. Here three-way
Local procurement for Local procurement for
#28 matching would be required.
Construction materials & others Construction materials & others
For any kinds of bills whether those are sent through our department must have
to be a tracking number by which we can track and understand whether it has
been twice.
#29 Loan Sanction Loan Sanction Would be loan sanction letter cover
Parent -Child relationship
Inspection Certificate Report, need it before payment to supplier (PO, GRN, LC
#30 Need to Group wise supplier Need to Group wise supplier
and Invoice Amt etc.)
Capture the credit limit against supplier or Supplier qualification
1.26 MODELING OF AR-1 CUSTOMER ENTRY/UPDATE
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 IT team enters customer information when there is a new customer.
Note:
 Detail information of customer are not maintained due to In-House Custom software restriction.
1.27 MODELING OF AR-1 REVENUE SOURCES
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1.27.1. REAL ESTATE BUSINESS PROCESS DESCRIPTION
The Civil Engineers Limited business unit has only unit has running the Real Estate as well as Construction Business.
The real estate business has two different types with project base – Development in another land & in own land. And this business is Project base.
The Development process has been followed in the different stages & the same as follows: -
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After declaration of flat allocation as per Project Deed of agreement we are taking approval from Rajuk for design & drawing with plan. We publish
a brusher for flat sales. The Customer has given advance for flat booking by cheque /P.o/Cash. We are keeping customer wise file for specific flat.
Booking money can be fully /partly or installment basis. The following entry has given when we are receiving booking money from customer:
Bank A/c Head office Dr. ****
To, Advance against flat-(flat No. & Name) Project Name Cr. ****
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After completion of project work the customer can take registration after full payment for that flat. At present we are making accounting entries after
registration of flat. The accounting entries are:
(i) A/R ------------- A/c Project Name Dr. ****

To, Deed Value - (flat No. & Name) Project Name Cr. ****
To, Development Value - (flat No. & Name) Project Name Cr. ****
Note: We are keeping two separate ledger head for revenue as per deed of agreement.
(ii) Advance against flat-(flat No. & Name) Project Name Dr. ****
TDS against Flat A/c Project Name Dr. ****
VDS against Flat A/c Project Name Dr. ****
Gain Tax against Flat A/c Project Name Dr. ****
To, A/R ------------- A/c Project Name Cr. ****
1.27.2. ACCOUNTING ENTRY FOR DEVELOPMENT PROCESS

Sl No Transaction Type Head of Accounts
1 Signing authority Payment to Land Lord Signing Money, A/C against Project Dr
Cash/Bank A/C against Project Cr
Land Lord Owner A/C against Project Dr
2 Home Rent paid to Land Lord
Labour Charges for existing Building Collapsing (If by

3(a)
Own Labour) Labour Charge A/C against Project Dr
Labour Charges for existing Building Collapsing (If by

3(b)
Third Party) Contract Labour Charge A/C against Project Dr
4 Govt.Legal Fees for develop new Building Legal Expenses A/C against Project Dr
Design & Drawing Exp A/C against Project Dr
5 Fees for Design (Third Party)
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Design & Drawing approval A/C against Project

6
Govt. Approval Charge Cash/Bank A/C against Project Cr
Material A/C against Project Dr
7 Raw Material Purchase Cost
Account Payable A/C against Project Cr
Bank against Project Dr
8 Advance for new Flat Booking
Advance A/C against Project (mention the Flat No) Cr
AR A/C against Project Dr (6014000)
9(a) Deed Value against Project Cr (3500000)
Development Value against Project Cr (2514000)
Advance against Flat (mention Flat No) against Project
New Flat Registration Dr (6000000)
AIT A/C against Project Dr (6000)
9(b)
VAT A/C against Project Dr (4000)
Gain Tax A/C against Project Dr (4000)
AR A/C against Project Cr (6014000)
TCEL unit has also do Real Estate business in their own land. Following are business process as well as A/C entry: -
 Asset Retirement
Head of Accounts
Land Purchase A/C against Project Dr
Land Value A/C against Project Dr
Land Purchase A/C against Project Cr
Here the Land value includes: -

1. Land Value
2. Land Requisition Fees
3. Media Commission
4. Project Development
5. Signing Money
6. Land Tax
7. Holding Tax
 Legal Charge
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Head of Accounts
Legal Expenses A/C against Project Dr
 Design & Drawing Expense

Head of Accounts
Design & Drawing Exp A/C against Project Dr
 Consultation Fees
Head of Accounts
Consultation Fess Exp A/C against Project Dr
 Raw Material Purchase

Head of Accounts
Material A/C against Project Dr
Account Payable A/C against Project Cr
 For Flat Booking Advance

Head of Accounts
Bank against Project Dr
Advance A/C against Project (mention the Flat No) Cr
 Registration Fees for new Flat

Head of Accounts
AR A/C against Project Dr (6014000)
Deed Value against Project Cr (3500000)
Development Value against Project Cr (2514000)
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Advance against Flat (mention Flat No) against

Dr (6000000)
Project
AIT A/C against Project Dr (6000)
VAT A/C against Project Dr (4000)
Gain Tax A/C against Project Dr (4000)
AR A/C against Project Cr (6014000)
 Handover the New Flat
1.27.3. CONSTRACTION BUSINESS PROCESS DESCRIPTION

The construction business has different types with project base but Tender base or non-tender base. Following are the different types: -
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Generally we are receiving notification award for construction work against our submitted tender.
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Then we start our project work. We are applying for Mobilization advance after some works done. As per our application the authority
approved our mobilization advance and payment by cheque. Which can be 5% or 10 % of total tender value .The accounting entry is below:
Bank A/C Head office Dr. ****

To, Advance against Construction Works-AP A/C Project Name Cr. ****
After some portion of work done we are submitting estimated bill to the authority .The authority check and verify the building work in
progress and approved the bill amount in his internal book system. The authority paid the approve amount to us by cheque after deduction
of TDS, VDS, SD, and mobilization advance. The accounting entry is below:
To, Revenue-Construction Works A/c Project Name Cr. ****
After financial year ending the authority issue a certificate than we came to about TDS, VDS, SD & mobilization advance deducted amount.
The accounting entry is below (as per certificate):
TDS A/C Project Name Dr. ****

VDS A/c Project Name Dr. ****
SD A/C Project Name Dr. ****
Advance against Construction Works-AP A/C Project Name Dr. ****
To, Revenue –Construction Works A/c Project Name Cr. ****
We are receiving the refunded SD money after six or twelve months (as per tender) from completion of Construction works. The
accounting entry is below:

To, SD A/c Project Name Cr. ****
At present, we have some Joint Venture companies. One company joint with other companies by deed of agreement with percentage of
share declaration (Like as 51% & 49%). One Joint Venture partner has given power to other partner to operate the all kind of activities.
Then we start our project work. We are applying for Mobilization advance after some works done. As per our application the authority approved
our mobilization advance and payment by cheque which can be 5% or 10 % of total tender value. The accounting entry is below:
To, Advance against Construction Works-AP A/C Project Name Cr. ****
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 After some portion of work done we are submitting estimated bill to the authority .The authority check and verify the building work in
process and approved the bill amount in his internal book system. The authority paid the approve amount to us by cheque after deduction
of TDS, VDS, SD, and mobilization advance. The accounting entry is below:

To, Revenue-Construction Works A/c Project Name Cr. ****
 After financial year end the authority issue a certificate than we concern TDS, VDS, SD & mobilization advance deduction amount. The
following accounting entry is below: as per certificate.
TDS A/C Project Name Dr. ****

VDS A/c Project Name Dr. ****
SD A/C Project Name Dr. ****
Advance against Construction Works-AP A/C Project Name Dr. ****
To, Revenue –Construction Works A/c Project Name Cr. ****
We are receiving the refunded SD money after six or twelve month (as Per Tender) from completion of Construction works. The accounting entry
is below:

To, SD A/c Project Name Cr. ****
1.27.4. CURRENT PROCESS - BANK GUARANTEE

Currently they have two different types of BG. Following are the different types: -
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 Bank Guarantee details capturing in the custom form.

 There is no accounting impact of this customization.
 BG gives Bank against the Project.
 Percentage wise deduct the value based on Project or Tender value. Generally, percentage is 5%. This deduction from the
bank A/C & create FDR (Fixed Deposit Receipts). Example: - Project or Tender value is 100,00,000/-. So, 5,00,000/- is
FDR value.
 FDR maturity is depending upon the Project duration. And bank gives the interest quarter basis. For example – FDR
maturity is 2 years then bank will be given the interest in 8 quarter.
 After maturity of FDR, company send the ‘Forwarding Letter’ to Bank. And the bank transfers the mature amount to the
company’s bank A/C after deducting the TDS.
 For Fixed Deposit Receipts (FDR) a custom form is used to capture all details regarding FDR.
 Currently 182 FDR is captured in the custom form.
 Custom report being built to give Detail and Summary level reporting.
 Margin Deposit – In this case bank doesn’t give any type of interest. TDS has not been deducted.
Following are the FDR A/C entry: -
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Investment in FDR A/C against Project (Mentioned the FDR No) Dr (5,00,000)
1 Investment in FDR
Bank A/C against Project Cr (5,00,000)
Investment in FDR A/C against Project (Mentioned the FDR No) Dr (500)
Interest on FDR A/C against Project (Mentioned the FDR No) Cr (500)
2 FDR Interest Entry
TDS against FDR A/C against Project (Mentioned the FDR No) Dr (50)
Investment in FDR A/C against Project (Mentioned the FDR No) Cr (50)
Company's Bank A/C against Project (Mentioned the FDR No) Dr (5,00,500)
3 After Maturity FDR
Bank's Bank A/C against Project (Mentioned the FDR No) Cr (5,00,500)
Following are the Margin Deposit A/C entry: -

Margin Deposit BG A/C against Project Dr (5,00,000)
1 Margin deposit
Bank A/C against Project Cr (5,00,000)
2 After Maturity Company's Bank A/C against Project (Mentioned the FDR No) Dr (5,00,000)
Bank's Bank A/C against Project (Mentioned the FDR No) Cr (5,00,000)
1.27.5. LOCAL SALES BUSINESS PROCESS DESCRIPTION

Textile/RMG local revenue:
Washing, Printing & Embroidery:
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Internal committee determines the price for wash and sends a quotation to the local buyer. Then buyer provides us the work order with details
specifications of work. Recipe details were clearly mentioned on work order. Production people start their production as per order details.
After completion of order finished garments are ready to ship at said location. Finished goods delivered to customer location with own transport
with truck challan and collect goods receipt acceptance from customer. Finally we submit a Sales invoice/bill with receipt acceptance copy to the
customer. At present, Revenue treated as miscellaneous income after getting payment from specific buyer/customer without creating AR.
RMG: We develop a sample with available fabric & accessories as per buyer provided sketch sheet or sample garment and make a cost sheet as per
buyer provided specification, after negotiation with buyer we fix up a FOB price. After price negotiation customer finalize the price and issue a P.O
by adding certain % as vat with the negotiated price. After completion of Sewing, washing and finishing work, FG garments are ready to delivery.
Finished products are shipped to buyer’s warehouse by using own transport with truck challan. Generate a sales invoice and submit the Sales
invoice/bill with receipt of truck challan copy to the buyer. AR department make revenue entry against receivable to specific buyer.
RMG Sewing: Internal committee determines a price for sewing subcontract work and sends a quotation to the local buyer. Then buyer provides
us the work order with details specifications of work. Buyer has sent the product by their own transport to our location. Our production line start
sewing as per specification. After completion of sewing work all the garments sent to buyer location with truck challan. Finally we submit a Sales
invoice/bill with receipt acceptance copy to the customer. AR department generate revenue against receivable from specific buyer. Buyer provides us
cash cheque against that receivable.
C&F Agency Service Revenue: We have C&F license for our legal entity “International Trading Services Ltd.” This unit is rendering services to
all of our legal entities as well as for operating units. In future this unit can be make revenue from external companies.
Local Revenue- Transaction Entries (Packaging & Accessories):
i) A/R Entry:
JV Accounts Receivable-Local Dr.

Sub: Customer Name
Revenue-Carton-External (For TCEL-P) Cr.
Sub: Customer Name
Revenue-Poly-External(For SFL) Cr.
Sub: Customer Name
ii) Realization Entry:
BR Cash at Bank Dr.
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Sub: Bank Current a/c No.

TDS against Local sales Dr.
Sub: Customer Name
Accounts Receivable-Local Cr
Sub: Customer Name
Local Revenue - Transaction Entries (RMG):
i ) A/R Entry:
Accounts Receivable-Local Dr.
Sub: Customer Name
Revenue-Local Market Cr
Sub: Customer Name
VAT Current A/C Cr
Sub: Customer Name
Cash at Bank Dr.

TDS against local sale Dr.
Sub: Customer Name
VAT Current A/C Dr.
Sub: Customer Name
Accounts Receivable-Local Cr
Sub: Customer Name
Local Sales - Transaction Entries (LABTEST):
i ) A/R Entry:
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Accounts Receivable-Local Dr.

Sub: Customer Name
Revenue-Lab test-External(For External Service) Cr.
Sub: Customer Name
Revenue-Lab test-Internal(For Internal Service) Cr.
Sub: Customer Name
Cash at Bank Dr.

TDS against Local sales Dr.
Sub: Customer Name
Accounts Receivable-Local Cr.
Sub: Customer Name
1.27.6. PLASTIC SALE BUSINESS PROCESS DESCRIPTION
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Sales Department Received work order from corporate clients and dealers.
Then sales department create D.O delivery order against that customer.
D.O sends to finished goods store to make delivery of finished products.
Delivery made by our own truck and delivery challan and gate pass given with that delivery truck.
After reached the product to the customer’s location a received signature has taken on the challan copy.
After that completion of delivery, sales department make the sales invoice and submit the bill with receipt challan copy to the customer end.
Receivable created against that specific customer and discount with credit period implement according to the condition mentioned on work order.
Normally customers have to pay within 10th days of subsequent moth after received of finished goods.
Transaction Entries – Plastic :
i) AR Entry:
Accounts Receivable-Local Dr. XXX
Sub: Customer Name
Revenue Local Market Cr. XXX
Sub: Customer Name

Cash at Bank Dr. XXX
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Accounts Receivable-Local Cr. XXX

Sub: Customer Name
iii) VAT Entry:
A) VAT Current Account Dr. XXX

Cash in Hand-Factory- Liquid Cash Cr. XXX
Cash in Hand-H/O-Liquid Cash Cr. XXX
Electricity Bill Cr. XXX
Poly Raw Material-Import Cr. XXX
Poly Raw Material-Local Cr. XXX
B) VAT Dr. XXX

VAT Current Account Cr. XXX
1.27.7. SALE (ACCESSORIES) TO EXTERNAL COMPANY BUSINESS PROCESS DESCRIPTION
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Internal committee determines the price for accessories and sends a quotation to the local buyer. Then buyer provides us the purchase order with
details specifications. Production people start their production as per order details. After completion of order finished accessories are ready to ship
at said location. Finished goods delivered to customer location with own transport and truck challan. Finally we submit a Sales invoice/bill with
receipt acceptance copy to the customer. AR department generate revenue against receivable for specific buyer/customer. As per payment term,
customer making payment through accounts payee cheque.
Following are the accounting entry with Gain & Loss: -
Sl No Transaction Type Head of Accounts USD ER BDT

A/R A/C against Project Dr 100 85 8500
1 Receivable Create
Revenue A/C against Project Cr 100 85 8500
Receipt Create with different Bank A/C Dr 100 86 8600
2
date with another ER
A/R A/C against Project Cr 100 86 8600
If Gain Book Gain A/C against Project Dr 8300
3 (a) AIT A/C against Project Dr 300
A/R A/C against Project Cr 8600
3 (b) A/R A/C against Project Dr 100
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Gain on Foreign Currency Conversion A/C against Project Cr 100

Bank A/C Dr 8200
4 (a) AIT A/C against Project Dr 100
If Loss Book A/R A/C against Project Cr 8300
4 (b) Loss on Foreign Currency Conversion A/C against Project Dr 200

A/R A/C against Project Cr 200
1.27.8. LOCAL SALE (TCEL-P, SFL) PROCESS DESCRIPTION
Packaging: Internal committee determines the price for cartoon and sends a quotation to the local buyer. Then buyer provides us
the purchase order with details specifications of work. Details specification and construction were clearly mentioned on purchase
order.
Production people start cartoon production as per order details. After completion of order finished cartoon ready to ship at said
location.
Finished goods delivered to customer location with truck challan. Finally we submit a Sales invoice/bill with receipt acceptance
copy to the customer.
AR department generate revenue against receivable for specific buyer/customer. As per payment term, customer making payment
through accounts payee cheque.
1.27.9. LOCAL SALE LAB TEX SERVICES PROCESS DESCRIPTION
Customer sends the test sample along with TRF (Test request form). We logged in the sample for testing and pass to laboratory for
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testing of particular parameters as mentioned in TRF. After completion of test work, test report issued to customer.
Then create Invoice as per prescribed price list & send to buyer. We are creating AR at this stage.
We make AR adjustment entry when we receive payment from customer.
Note
 At the time of sale recognition system will consider VDS & TDS
 In existing process Cash Discount/Trade discount is not available but it will be needed.
1.27.10. DIRECT EXPORT BUSINESS PROCESS DESCRIPTION
1.27.11. Negotiated export sales price with customer in pre-costing statement
Upon confirming Orders with Customers Merchandizing team prepares pre-costing with necessary approvals. Such pre-costing
information’s has been maintained in standard group developed internal software. Generally pre-costing price is the negotiated
sales price for specific order/style/contract. Approved pre-costing sheet has been forwarded to LC & Banking team for contract
preparation to submit to bank accordingly LC opening. Negotiated pre-costing price would normally be sales price.
1.27.12. Export sales price in PO from Customer
Generally Merchandizing team has received PO from customer and update system with price and other necessary information. As
customer PO price is the negotiated sales price with the customer. Some cases price stated in PO may be different from pre-costing
price for various practical reasons and temporary timing adjustments
Although such differences having accounting impact with customer ledger and balances, at present differences in aforesaid both
prices are not comprehensively and completely traced and accounted. Most cases outside system, memorandum records have been
maintained.
Some cases customer issue PO with price higher from pre-cost negotiated price for per unit. Currently we recognize such additional
amount as revenue but prepare a manual report for management purpose and some other calculation.
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Export globally is major revenue for Standard Group. General simplified process of acceptance as customer to export and proceeds realization is as
below:
The flowchart depicts below detail process events impacting AR accounting from pre-costing price to proceeds realization.
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1.27.13. DEEMED EXPORT FOR RAW MATERIALS BUSINESS PROCESS DESCRIPTION

Deemed export refers to supplying goods to direct exporter by LC and under bonded warehouse facility with the transaction settled in foreign
currency.
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According to the customers requirement (Pkg. /Access. constructions), prices are negotiated with the customers.
Packaging/Accessories Unit issue P.I/ price quotation based on negotiate price as per requirement.
Customer provides P.O to the wash unit based on predetermined price and open L/C against P.I. Packaging/Accessories Unit make
informal production plan as per capacity based on historical data.
Bulk production of cartoon and accessories items have completed as per production schedule.
After completion of production Packaging/Accessories items are sent to customer’s location with truck challan.
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Sales invoice bill/Bill of exchange with receipt truck challan have submitted to customers.
Accepted bill of exchange has submitted to bank with other required documents for collection of bill by bank, which is called bank
acceptance.
After bank acceptance the bill should be discounted to bank or wait until maturity for the realization of L/C amount.
Finally the payment received through bank against finished cartoon or accessories.
Printing process:
As per printing requirement prices are negotiated with the customers.
Print unit issue a P.I/ price quotation based on negotiate price as per print recipe.
Customer provides P.O to the print unit based on predetermined price and open L/C against P.I. print unit make informal print
plan as per buyer, style and print capacity based on historical data.
Print store receive raw garments from customer against delivery challan and issue the raw garments to print production as per
schedule.
Garments are printed as per assigned print recipe and after completion of all stages of print the finished garments are send to print
store.
Then print store return back the finished garments to customer’s end with delivery challan.
Sales invoice/Bill of exchange with receipt truck challan has submitted to customers.
acceptance.
Finally the payment received through bank against printing service.
Embroidery process:
Embroidery process is similar like printing.
Note
 Standard Group advises to Bank to disburse fund as per company policy or Bank disburses fund as per the
banking policy. If bank disburses fund, then Standard Group collects the fund disbursement report from
Bank.
 Procure Raw materials as Bulk qty for ( 6 or more months).
 Different Banks are making realization in different process.
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1.27.14. DEEMED EXPORT FOR WASHING BUSINESS PROCESS DESCRIPTION
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As per washing requirement prices are negotiated with the customers.

Wash unit issue a P.I/ price quotation based on negotiate price as per wash recipe.
Customer provides P.O to the wash unit based on predetermined price and open L/C against P.I. Wash unit make informal wash
plan as per buyer, style and wash capacity based on historical data.
Wash store receive raw garments from customer against delivery challan and issue the raw garments to wash production as per
schedule.
Garments are washed as per assigned wash recipe and after completion of all stages of wash the finished garments are send to wash
store.
Then wash store return back the finished garments to customer’s end with delivery challan.
Sales invoice/Bill of exchange with receipt truck challan has submitted to customers.
acceptance.
Finally the payment received through bank against washing service.
Note
 Standard Group advises to Bank to disburse fund as per company policy or Bank disburses fund as per the
banking policy. If bank disburses fund, then Standard Group collects the fund disbursement report from
Bank.
 Different Banks are making realization in different process.
Following are the accounting entries for deemed export: -

AR Entry:
JV AR-Invoice Deemed Export Dr. Sub: Bill Ref. no
Revenue-Carton- Internal Cr.(For TCEL-P Unit) Sub: Bill Ref. no
Revenue-Accessories- Internal Cr.(For SGL-2) Sub: Bill Ref. no
Revenue-Poly- Internal Cr.(For SFL) Sub: Bill Ref. no
Revenue-Washing-Internal Cr. (For TCEL-2,ITSL-L & KFL-W) Sub: Bill Ref. no
Realization Entry (Process-1):

BR Cash at Bank Dr. (Sub: Bank Margin a/c No.)
Cash at Bank Dr. (Sub: Bank ERQ a/c No.)
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Cash at Bank Dr. (Sub: Bank Current a/c No.)

Other Foreign bank Charge Dr. (Sub: Bill Ref. no.)
AR-Invoice Deemed Export Cr. (Sub: Bill Ref. no.)

JV Foreign Currency Loss/Gain entry (If applicable)

All Local Bank Charges (Such as Courier & Collection Charges) Dr.
BP
(Sub: Bill Ref. no & Customer name.)
TDS Against Deemed Export Dr. (Sub: Bill Ref. no.)
Cash at Bank Cr. (Sub: Current a/c No.)
Realization Entry (Process-2):

BR Cash at Bank Dr. (Sub: Bank Margin a/c No.)
Cash at Bank Dr. (Sub: Bank ERQ a/c No.)
TDS Against Deemed Export Dr. (Sub: Bill Ref. no.)
Other Foreign bank Charge Dr. (Sub: Bill Ref. no.)
AR-Invoice Deemed Export Cr. (Sub: Bill Ref. no.)
JV Foreign Currency Loss/Gain entry (If applicable)

All Local Bank Charges (Such as Courier & Collection Charges) Dr.
BP
(Sub: Bill Ref. no & Customer name.)
Cash at Bank (Sub: Current a/c No.) Cr.
1.27.15. LOAN (OTHER THAN IMPORT BILL) – LONG TERM LOAN/STL/PC PROCESS DESCRIPTION
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1.27.16. ACCOUNTING ENTRY PROCESS

Bank A/C Dr
1 Loan liability (JV): LTL/STL/PC
LTL/STL/PC(Loan ID No.) Cr

Interest EXP (Loan ID No.) Dr
1 Quarter end Interest Liability (JV): LTL/STL/PC

Commission / Charges (Loan ID No.) Dr
1 Commission / Charges of Loan

LTL/STL/PC(Loan ID No.) Dr
1 Adjustment of Loan: LTL/STL/PC
Bank A/C Cr
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1.27.17. LOAN ON IMPORT BILL – BTB/EDF/UPAS PROCESS DESCRIPTION
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1.27.18. ACCOUNTING ENTRY PROCESS
Commodity Import (Bill /LC no ) Dr

1 Import liability (JV): UPAS /EDF/Cash LC
A/C payable Commodity (Bill/LC no) Cr
Bank debited commission, charges on When make LC, Commission / Charges (Bill/LC) no Dr
1 Acceptance of payment and release of payment and sometime
keep margin/Security on LC
Advance on LC (Bill/LC) no Dr
Bank Current A/C Cr
A/C payable Commodity (Bill /LC) no Dr

1 Adjustment of Loan BTB EDF/UPAS on maturity
Interest on A/C payable (Bill/LC) no Dr

Bank A/C ERQ/MOB Cr
Bank Current A/C Dr

1 Adjustment of margin/Security on LC: (if any)
Advance on LC (Bill/LC) no Cr
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A/C payable Commodity (Bill /LC) no Dr

1 UPAS Adjustment through initiate Long-term loan
Commodity (Bill /LC) no for interest Dr
Long Term Loan (Loan ID No.) Cr
Quarter end Interest Liability (JV): LTL/STL/PC: Dr
1 Quarter end Interest Liability (JV): LTL

Interest EXP (Loan ID No.) Dr
LTL/STL/PC (Loan ID No.) Cr
LTL/STL/PC (Loan ID No.) Dr

1 Adjustment of Loan: LTL/STL/PC
Bank A/C Cr
1.27.19. Internal Revenue and Transfer Pricing
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Due to central control and planning, intercompany and inter business unit’s transaction for goods or service are common phenomenon. At
present most of these are not accounted and reported properly.
Washing: Generally washing unit under a legal entity executed washing for other legal entities.
At present internal PO or related documentation are not maintained and accordingly corresponding accounts payable/receivable are not created.
However financial transactions for FAST SALE arrangements has been transacted and recorded accurately.
Accessories: Currently all business unit/legal entity issue PO to Accessories unit for Accessories procurement internally.
After receiving of P.O, Accessories unit start their production as per requirement.
Finished Accessories have sent to destination unit through delivery challan.
For internal sales of accessories no accounting transaction generates but we want to keep accounting record on it.
Printing: Printing unit make informal plan based on historical data. Cutting fabrics are sent to printing unit by delivery challan from specific
unit.
Printing store received that cutting fabrics as per challan and send to production floor. According to the buyer’s requirement printing work
accomplished by production personnel. Some cases few items of after wash finished garments are also send for printing work. After finishing of
printing the fabrics are sending to store and store send back the fabrics to specific unit through delivery challan. Printing services are recorded
manually buyer and unit wise but accounting transaction has been generated by service receiver and provider.
Packaging: Packaging unit make production plan according to the work order related historical data. Purchase Order is issued from each
business or legal unit to Packaging unit as confirmation of order. After receiving of P.O, Packaging unit start their production as per requirement.
Finished cartoons have been sent to destination unit through delivery challan. At present these transaction are not recognized as
revenue/purchase with corresponding payable and receivables.
Embroidery: Embroidery unit make informal plan based on historical data. Cutting fabrics are sent to embroidery unit by delivery challan from
specific unit. Embroidery store received that cutting fabrics as per challan and send to production floor. According to the buyer’s requirement
embroidery work accomplished by production personnel. Some cases few items of after wash finished garments are also send for printing work.
After finishing of embroidery the fabrics are sending to store and store send back the fabrics to specific unit through delivery challan.
Record of embroidery quantity has kept according to buyer and unit. At present these transaction are not recognized as revenue/purchase with
corresponding payable and receivables.
Lab: Respective merchandiser business units sends garments sample along with Test Request Form (TRF) to Lab unit for lab test purpose.
Labtex generates Formal reports after completion of testing. Labtex generates an invoice for that specific test report and forward to respective
unit. We are creating AR at this stage.
RMG sewing: To manage lead time and other practical reasons, garments sewing planning are coordinated centrally and accordingly sometimes
one legal entity carried sewing operation for other legal entity’s export order.
At present internal service PO or related documentation are not maintained and accordingly corresponding accounts payable/receivable are not
created. However financial transactions for FAST SALE arrangements has been transacted and recorded accurately.
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1.27.20. Retailing
RMG and other retail revenue: Sale

Products being sold at various sales point through ECR machine. In ECR machine sales invoices are processed against reduce Inventory. Every
Transaction Related with Sales VAT, which assigned in every invoice and deposited in VAT current account.
Payment Received in Cash
Showroom Manager receives the cash and deposits it to the Bank. Next day, Head office accountant collect the bank statement, reconcile the
inventory and give sales entry as well as charge finished goods against cost of goods sold to the accounting software. If there is any non-deposited
cash left in showrooms at the end of the month, head office accountant received the report of that amount and posted in accounting software also.
Accounting
Cash received and Deposit in Bank.
Bank Dr. XXX
Sales Cr. XXX
To, VAT Current Account Cr. XXX
Cash received but not deposit in Bank

Accounts Receivable Dr. XXX
Sales Cr. XXX
To, VAT Current Account Cr. XXX
Charge finished goods against Cost of Sales

Cost of Sales Dr. XXX
Finished Goods Cr. XXX
Payment Received in Credit Card/ Debit Card/ Bkash/Rocket
When customers paid by the said manner, Head office accountant collect the report from ECR, POS and Bank. After reconcile the statements,
accountant gives the entry in Accounting Software.
Accounting
Payment Received, Cleared and Received in Bank Statement.
Bank Dr. XXX
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Collection Charge Dr. XXX

To, Sales Cr XXX
Payment received but not cleared and deposited in Bank Statement
Accounts Receivable Dr. XXX
To, Sales Cr XXX
Charge finished goods against Cost of Sales
Cost of Sales Dr. XXX
To, Finished Goods Cr. XXX
Collection Charge
There is a collection charge involved at various rates in difference with bank/bkash/rocket accounts as their commissions or fees.
1.28 MODELING OF AR-2 EXPORT ADVANCE
 In case of Export Advance to customer (Export), customer pays in advance through TT.
 Goods are sent after receiving the full payment.
Following is accounting entry: -
1 Advance FC Bank A/C Dr
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Customer A/C Cr
Customer A/C Dr
2 Adjustment
Revenue A/C Cr
1.29 MODELING OF AR-2 CREDIT MEMO
 In case of some of the buyer, buyer issues the credit note for any damage like cartoon etc.
 Credit Memo are adjusted during next payment by buyer.
Note:
 Credit Memo is not entered and adjusted against the corresponding invoice.
1.30 MODELING OF AR-2 OTHER INCOME
Received from Stock Lot Sale. Received from sale of imported Chemical, received from sale of imported Poly raw material, Received from sale of
imported cartoon paper.
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 In Bangladesh Exporters are eligible to apply for cash incentive within 180 days from export proceeds realization.
 Our commercial -Export team keeping the export related information’s file wise in-house system, where they are keeping (contact/M. LC
#, file #, BTB LC #, Inv. Value, Bill value, Realization value, Ship destination etc.)
 At represent we calculate incentive claimed based on manual checking and compilation of eligible invoices manually.
 Usually our commercial (Cash Incentive team) apply to Bangladesh Bank to draw cash incentive through our lien Bank on quarterly basis
after realization of export bill as per prescribed Guide line of Bangladesh Bank.
 Lien banks appoint audit firm, to audit our submitted full document.
 After completion of audit, the audit firm (Chartered accounts firm) provide certificate to our lien bank.
 Then Lien bank submits audit firms provided certificate to Bangladesh Bank.
 When Bangladesh bank disburse fund, Lien bank collect the fund & deposit to our bank account.
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 After deposited the fund to our bank account commercial (cash incentive tem) collected relevant papers & bank advises. Then they send to
finance dept.
 Finance department has given only bank receipt entry.
Rental income received from inter-companies & external parties. The process of rental income described as below:
 A Tenancy agreement signed between tenant and tenor. Where all the detail (monthly rent amount, tenure, increasing time frame,
Advance, Tax issue & other clauses) are mentioned.
 The Tenor issue an invoice on every month for the rent amount, A/R created at this stage.
 Then tenant pays the rent amount after deduction of withholding tax from rent and deposit VAT at their own to Government Treasury.
 Tenants deduct A/R team making the bank receipt entry against A/R from rental income.
 Accounting entries are as below:
A/R A/c Head office Dr. ****

Sub: (Tenant name)
To, Rental Income A/c Head office Cr. ****
Sub: (Tenant name)
(Note: For the Month of Jan-2020.)
 When receive that rent by Cheque than the accounting entry as below:

Sub: (Bank a/c No.)
TDS A/C Head office Dr. ****
Sub: (Tenant name)
To, A/R A/c Head office Cr. ****
Sub: (Tenant name)
(Note: For the Month of Jan-2020.)
Dividend received from securities invested is accounted on cash basis and payees deduct withholding tax, if any. Interest income is account on
accrual basis for loan given to external parties. Intercompany loan may be with interest or interest free as approved by Board.
Raw material inventory sale:
Received from sale of imported Chemical
Received from sale of imported Poly raw material
Received from sale of imported cartoon paper
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Sometimes we are to sale some of our above items on some particular circumstances.
Usually we are making manual invoice describing material details not using company letterhead pad.
In that case we are taking hard cash from party.
At present we are making accounting treatment as Cash debit & inventory credit.
Leftover /Wastage sale: Received from sale of Leftover Fabric, Received from sale of leftover Sewing Thread, Received from sale of leftover
Accessories, Received from sale of wastage poly, Received from sale of wastage cartoon paper.
We are selling Leftover/ Stock lot /wastage materials to local parties by local tender. Quotation taken from various customers, tender committee
select the bidder of best price offering customer. In this case we are taking hard cash from customer. At present we are making accounting
treatment as Cash debit & miscellaneous income credit.
Other sale: Received from Medicine Sale.
At present we are receiving cash/bank against sale of below listed heads: Received From sale of old Vehicle, Received from Land Sale, Received
from Land Lease, Fire or Marine Insurance Claim receive, Received from Asset (Old Machinery sale) Sale.
Duty Draw back against Gas & Current Bill.
1.31 AR-4 WISH LIST

Proces
Topics Sub-Topics Wish Lists
s ID
Manually keeping in at Merchanting/ Export commercial
1 Direct Sale Dept Not A/R part
2 Direct Sale Negotiating by Merchandising/Marketing team Not A/R part
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System will consider the FOB from this PO to create

invoice which is mentioned at the process step #12 on
below. Initial PO value & revised PO values will be putted
3 Direct Sale Buyer PO collecting by Merchandising Dept by concern department in separate field.
Customer/Buyer/Retailer , Buying Agent, Brand name ,
Early Financer need to be enlisted in system separately
Manually creating in system by our IT team as per (there will be option to view a report to of customer wise
4 Direct Sale request from MRC /Export team details with all terms and conditions)
Information (payment term/ charges /Export destination/
Contact Received by Merchandising team from Customer Incoterm/ tolerance mode %/ early financing term &
& M. L/C by banking Channel other relevant information should be tagged in system.
5 Direct Sale
6 Direct Sale Documentation function of Commercial import dept. Not A/R part
After raw-material received, If sell by interbond transfer
inventory department will input the necessary
information like sell qty /value in system and system will
automatically reduce the inventory as well as make a
receivable entry. Similarly, if sell by cash , the accounting
7 Direct Sale Documentation function effect will be same.
8 Direct Sale Production Not A/R part
9 Direct Sale QC Not A/R part
10 Direct Sale Finished Goods Received by store Not A/R part
11 Direct Sale Packing List Not A/R part
12 Direct Sale Draft Invoice Creation Invoice will be Create in system ***
13 Direct Sale Exp (Export permission ) from Govt portal. Not A/R part
14 Direct Sale Ex-Factory An entry will be passed by system at Ex-Fty stage ***
15 Direct Sale Bill of Entry/Export (Received from Govt Customs) Not A/R part
A/R entry will be passed by system in this stage as per
incoterm, An adjustment entry will passed by system here
if commercial invoice quantity & value is revised (if
16 Direct Sale FCR/BL/HAWB decrease goods in transit). ****
Page 126 of 160

If FOB value in PO revised, upon getting approval by

management MC team will make a CN for the liability or
differed liability similarly make a DN for the claimed
17 Direct Sale Creation of DN/CN receivables.
Case - 01: Any kind of Debit Note Receivable & adjust with
FOB:) = Merchandiser will issue Debit Note or Sample
Invoice through system Generated Format & system will
pass a receivable entry against the particular DN Ref. no &
Customer/Supplier name. (say DN Value is $1.00)
Realization: Merchandiser earlier inputted initial FOB
value $10 & Revised FOB $11 in system. AR will be $10 &
Sales will be considered $10 & Bank will Receive $11, than
$10 will Realized against Direct Export AR & $1 Will be
Realized against DN AR.
Case - 02: Any kind of Debit Note Receivable & Realize
through Bank by form "C": Merchandiser will issue Debit
Note or Sample Invoice through system Generated Format
& system will pass a receivable entry against the
particular Ref. no & Customer/Supplier. upon getting
payment through bank we will collect the fund through
"Form-C" & pass a manual entry.
Case - 03: Any kind of Credit Note adjustment from
Realization: When Merchandiser received any Debit
Note/Charge Back from buyer, as per Management
approval Merchandiser entry this Claimed value into
specific portion of system. System automatically issued a
credit memo against this claim & pass a Liability Journal
against particular buyer. When we got short realization
against export of same buyer, commercial.
18 Direct Sale Adjustment of DN/CN
Page 127 of 160

In Case of TT Mode : After payment confirmation by buyer

from Bank & Commercial Dept will create a bill forwarding
in system generated format by accumulating some (1 or
more) invoice value as well as submit to bank for payment
, bank will provide reference number against this bill.
Commercial -export dept. will update bank reference
number in system by tagging the related invoices &
system will pass a journal entry. hence B/R will be Debit
Document Submission to bank /send to Buyer: And A/R will be credit. ****Point to noted: payment
In Case of TT Mode: against export proceed must be collection against concern
(A) Doc. Submission to Buyer Portal/Nominated exp.
Forwarder/Courier ,
(B) per payment term buyer send us payment In Case of Collection Mode : At the time bill presentation
notification , (C) we are submitting Commercial Dept will create a bill forwarding in system
bill documents to bank for payment collection generated format by accumulating some (1 or more)
(D) After submission, getting bill reference. number invoice value as well as submit to bank for payment , bank
from bank, will provide reference number against this bill.
In Case of Collection Mode: Commercial -export dept. will update bank reference
(A) Doc. Submission to Bank, number in system by tagging the related invoices &
(B) After submission, getting bill reference. number from system will pass a journal entry. hence B/R will be Debit
bank And A/R will be credit.
19 Direct Sale
Transaction referred below, Adjustment of Credit Note
against realization (Process Step 18 case 3)
There would be a adjustment process from proceed

realization in system for all kind of loan adjustment. (like
20 Direct Sale Bill Realization from Bank invoice financing/PC loan)
21 Direct Sale Early financing Refer to Process Step #27(L).
Page 128 of 160

There will be a field in commercial module to put country

wise cash incentive percentage & other conditions
whatever necessary.
As per export destination & govt prescribed country wise

percentage of cash incentive drawings, we will require a
system generated periodical report to get a export bill
wise Cash incentive eligibility total figure.
System will pass a A/R entry at the stage of …….****
we will require Group/Legal Entity/Business Unit/Buyer
Cash Incentive receivable (Cash incentive will eligible wise incentive eligibility to incentive A/R reconciliation
22 Direct Sale when Export bill realized ) report.
23 Deemed-Pro Po Collection from Buyer- documentation Not A/R part
24 Deemed-Pro PI Issue- Documentation Not A/R part
Information (payment term/ charges & other relevant
25 Deemed-Pro LC Confirmation from Buyer information should be tagged in system.
26 Deemed-Pro Goods Production Not A/R part
27 Deemed-Pro FG received in Store Not A/R part
Delivery Challan Creation & send to Buyer along with
28 Deemed-Pro goods An entry will be passed by system at Ex-Fty stage*******
An adjustment entry will be requiring by system if any
discrepancy arises between delivery qty /Value & receipt
29 Deemed-Pro Goods receipt acceptance from buyer qty ( if any goods return from buyer) & value
30 Deemed-Pro Commercial Invoice preparation An entry will be passed********
Doc submit to bank for payment Collection(IDBC/LDBC IDBC/LDBC # should be attach with AR or BR
31 Deemed-Pro #) Entry********
Different Banks are making realization in different process
32 Deemed-Pro Bill Realization as we mention in direct export process.
Deemed-
33 Wash Po Collection from Buyer- documentation Not A/R part
Deemed-
34 Wash PI Issue- Documentation Not A/R part
Page 129 of 160

Deemed- Information (payment term/ charges & other relevant

35 Wash LC Confirmation from Buyer information should be tagged in system.
Deemed-
36 Wash Goods receipt from buyer for washing Not A/R part
Deemed-
37 Wash Production (Washing) Not A/R part
Deemed-
38 Wash FG received in Store Not A/R part
Deemed-
39 Wash Delivery Challan Creation & send to Buyer Not A/R part
Deemed-
40 Wash Goods receipt acceptance from buyer An entry will be passed********
Deemed-
41 Wash Commercial Invoice preparation An entry will be passed by system at Ex-Fty stage*******
Deemed- Doc submit to bank for payment Collection(IDBC/LDBC IDBC/LDBC # should be attach with AR or BR
42 Wash #) Entry********
Deemed- Different Banks are making realization in different process
43 Wash Bill Realization as we mention in direct export process.
System will consider the rate from this PO to create
44 Loc-SFL PO received from Customer below.
45 Loc-SFL Production Not A/R part
46 Loc-SFL FG preserved in Store Not A/R part
Delivery to Customer (Step by step goods send as per PO

47 Loc-SFL delivery date) with delivery challan. An entry will be passed by system at Ex-Fty stage*******
48 Loc-SFL Goods receipt Acceptance collection from Customer Not A/R part
49 Loc-SFL Commercial Invoice creation An entry will be passed by system at Ex-Fty stage*******
Bill document (CI, DC & PO copy) send to Customer &
50 Loc-SFL (A/R Creation)
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Before payment collection , if any sales return/claim found

from customer, an adjustment process need to pass by
51 Loc-SFL Payment collection (As per payment terms) system against A/R.
System will consider the rate from this PO to create
52 Loc-PFL PO received from Customer below.
53 Loc-PFL Procuring Raw materials by own fund from local market. Not A/R part
54 Loc-PFL Raw Material received in Store Not A/R part
55 Loc-PFL Production Not A/R part
56 Loc-PFL FG preserved in Store Not A/R part
Delivery to Customer (Step by step goods send as per PO

57 Loc-PFL delivery date) with Delivery Challan An entry will be passed by system at Ex-Fty stage*******
58 Loc-PFL Goods receipt Acceptance collection from customer Not A/R part
Commercial Invoice creation after all shipment
59 Loc-PFL completion An entry will be passed by system at Ex-Fty stage*******
Bill document (CI, DC & PO copy) CI, DC & PO copy) send

60 Loc-PFL to Customer & (A/R Creation) An entry will be passed by system at Ex-Fty stage*******
Before payment collection , if any sales return/claim found
from customer, an adjustment process needs to pass by
61 Loc-PFL Payment collection (As per payment terms) system against A/R.
62 Loc-Plastic Bulk RM requirement to Procurement Dept. Not A/R part

63 Loc-Plastic Raw material Received in Store Not A/R part
64 Loc-Plastic RM handover to Production as their requirement Not A/R part
65 Loc-Plastic Production completion and kept to FG store Not A/R part

66 Loc-Plastic PO collection System will consider the rate from this PO to create
Page 131 of 160


below.
67 Loc-Plastic DO issue Not A/R part
Delivery to party (Delivery Challan, Gate Pass, Packing
68 Loc-Plastic List) An entry will be passed by system at Ex-Fty stage*******
69 Loc-Plastic Goods receipt Acceptance collection from customer Not A/R part
An entry will be passed by system at Ex-Fty stage*******
Commercial Invoice creation & send to Customer & A/R At the time of sales recognition system will consider VAT
70 Loc-Plastic entry & trade discount to pass entry.
A) Before payment collection , if any sales return/claim
found from customer, an adjustment process needs to
pass by system against A/R. B) At the time of payment
collection system will consider TDS & cash discount to
71 Loc-Plastic Payment collection (As per payment terms) pass entry.
72 LabTEX Bulk RM requirement to Procurement Dept. Not A/R part

73 LabTEX Raw material Received in Store Not A/R part
74 LabTEX RM handover to laboratory as per their requirement Not A/R part

Sample received along with TRF (Test Request Form) for
75 LabTEX lab test Not A/R part
After completion of Test, A Test Report issued to
76 LabTEX Customer. Not A/R part
Invoice issued as per test report & prescribed Price List System will consider the rate from agreed Price List to
77 LabTEX & A/R is considering at this stage. create invoice & A/R invoice will be create by system.
At the time of payment collection system will consider
78 LabTEX Payment collection TDS & cash discount to pas entry.
Non-
Operating
79 Receivables ATM booth rent from JBL
80 Non- Office Rent from Standard Insurance Ltd.
Page 132 of 160

Operating
Receivables
Non-
Operating
81 Receivables Office Rent received from Sister Concern Units
Non-
Operating
82 Receivables Shop rent from Aziz Super Market
Non-
Operating
83 Receivables Received from Share Dividend
Non-
Operating
84 Receivables Duty Draw back against Gas & Current Bill
Non-
Operating
85 Receivables Received From sale of old Vehicle
Non-
Operating
86 Receivables received from Land Sale
Non-
Operating
87 Receivables Received from Land Lease
Non-
Operating
88 Receivables Fire or Marine Insurance Claim receive
Non-
Operating
89 Receivables Received from Asset (Old Machinery sale) Sale
Non-
Operating
90 Receivables Received form Fine or penalty
Non-
Operating
91 Receivables Received from Jhoot Sale
Page 133 of 160

Non-
Operating
92 Receivables Received from Scrap Sale
Non-
Operating
93 Receivables Received from Stock Lot Sale
Non-
Operating
94 Receivables Received from sale of wastage Cartoon/ paper
Non-
Operating
95 Receivables Received from sale of chemical Drum
Non-
Operating
96 Receivables Received From sale of wastage mobile
Page 134 of 160

1.32 MODELING OF FA-1 CURRENT SYSTEM DESIGN
 Asset Register is maintained in In-House Custom system which contains the Asset Tag.
 Assets have identified by Category Segments also. Currently maintained 4 category segments.
 Currently they have maintained tag scanning process in their custom system.
 Asset Number sequence is unique for each entity.
 All Legal Entities have separate Fixed Assets Book.
 Asset Additions are done through different sources. Approval for purchase is done during procurement process.
o Local FA Purchase
o LC Purchase
o Construction Material Consumption
 Currently Physical Verification of Fixed Assets is going on.
1.33 MODELING OF FA-2 Fixed Asset Master Data
We are recording fixed asset under the following category

 Land & Land development: Land and land development value comprises such as Land purchase, Land registration and Land
development etc.
 Office Building: All expenditure that are directly related to acquisition and construction of the building.
 Plant & machinery: All machineries which are used in production and for utility support.
 Motor vehicles: All type of vehicle of the organization such as Ambulance, Bus, Car, Cargo van, Concrete Mixer, Covered Van, Delivery
Van, Micro Bus, Mini Truck, Mobile Crane, Motor Cycle, Pick-up etc.
 Electrical Equipment: Fan, Air Conditioner, IPS, Distribution Board, Generator, Air Compressor, Control Panel, Television, Sub-
Station, Transformer and other Electrical Component.
 ITS Equipment: Computer CPU, Dehumidifier (ITS), Firewall, IP Phone, Monitor, Laptop, Protocol Data unit (PDU), Projector, Rack
Page 135 of 160

(IT), Radio Device, Router, Server, Speaker, Switch, Tab etc.

 Office Equipment: Biometric Finger Scanner, Camera, FAX Machine, IP Camera, Photocopy Machine, Printers, Scanner, Time and
Attendance Device etc.
 Furniture & Fixtures: Cabinet, Chair, Table, Rack, Operator Seat, Stand, Almirah, Box etc.
 Software: Software
1.34 Overview of Fixed Asset Management Process
 Store department are recording details Information of fixed assets at Fixed Asset Module. Assets master data are recorded here as per unit,
location, category and others related data.
 Store department creates GRN and make record of such asset at Fixed Asset Module.
 Our AP team receives supplier bill with supporting document for check and balance. At that moment such asset is recorded at Accounts
Module.
 At present all modules are separately maintained.
Accounts Inventory
Module Fixed Assets Module
Module
Page 136 of 160

1.35 Procurement of Fixed Asset

Process flow chart:
1.36 Fixed assets requisition
Page 137 of 160

Each department raises their requisition as per their requirement. They submit a requisition form and take approval from head of the department
then forward it to store department. If the required assets are available in store or other location of the group then assets are issued/transferred to
that department. Otherwise the following procedures are maintained.
1.37 Generate Indent and take approval from HOD
Store department makes the indent according to requisition form, take approval from HOD of store department and send to audit department for
verification.
1.38 Verified by audit
After receiving the indent from store department, Audit department verifies the indent and give the approval to procure the required asset.
1.39 RFQ and CS sent to Purchase committee/management for price approval
After verification of Audit, purchase department receives that indent. Purchase department collect quotation against RFQ from various suppliers.
Based on quotation they prepare Comparative Statement and take approval from purchase committee.
1.40 PO create and request for supply
Page 138 of 160

After receiving the price approval from management, purchase department makes the Purchase Order and forward to supplier for delivery of
assets.
1.41Local Purchase
After receiving the Purchase Order, local supplier starts to delivery of goods
1.42 Import
 After management approval, purchase department makes the Purchase Order.

 They collect Pro-forma invoice from various suppliers and prepare CS.
 Management approves the Comparative Statement and Pro-forma invoice.
 Import team opens Letter of Credit as per pro-forma invoice.
 This L/C send to logistic department for checking the terms and conditions.
 Logistics department informs supplier about the Letter of Credit.
 Supplier makes delivery of such product.
 Logistics department collects the product from port and send to store department.
 Store department receives that product as per commercial invoice/delivery challan.
1.43 Received assets by store through GRN
After quality and quantity inspection, store department receives assets and issues GRN thereafter, the items are recorded as assets in Fixed Asset
Module. For bill payment, GRN, Invoice and all other documents are sent to accounts department. Accounts department checks all documents
Page 139 of 160

and records the assets in Accounts Module.
1.44 Measurement of Fixed Asset
All cost of an item of asset comprises such as Purchase price, registration of Land, Broker commission, professional fees; Installation charges,
Landed costs etc.
1.45 Asset record on Fixed Assets module
 Store department records the asset in F.A Module with the following information such as Asset Category, Category Name, Owner Name,
Unit Name, Machine Type Name, Brand Name, Model No, Present Factory Name, Supplier, PO No, LC No, LC Date, Invoice No, Receive
Date, Quantity, Unit Price, Discount, Charges, Currency, and Conversion Rate.
 In FA Module, the movement of asset are recorded in accordance with unit and location.
 Fixed assets are sold out after end of useful life.
 F.A also used to record asset replacement. And provide report about scrap of assets.
1.46 Accounting of Asset
When an asset is recognized, then the following Journal entry is recorded on Accounts Module;
Land/Land development/Machinery/Equipment Debit ***
Accounts payable Credit ***
When the company made payment for asset, then the following entry is recorded
Accounts payable Debit ***
Page 140 of 160

Cash at bank Credit ***
The following Journal entry is recorded for under construction work.

CWIP Debit ***
Accounts Payable Credit ***
When the company made payment for construction work, then the following entry is recorded.
Accounts payable Debit ***
Cash at bank Credit ***
1.47 Depreciation Charges
Presently, we calculate depreciation under reducing balance method and charge to financial statement on yearly basis. This depreciation is
calculated manually through excel sheet. There is no automation for calculating deprecation in In-House account system.
1.48 Asset Transfer to Another Unit
We maintain the following procedure for fixed asset transfer to other unit
 User unit generate a requisition through system and take proper approval from HOD.
 Such requisition and notification are forwarded to relevant store person.
 Store person search the availability of required assets.
 Store issues the assets with delivery challan in the name of requisition holder.
 Requisition holder receive the fixed asset with challan copy.
Page 141 of 160

1.49 Fixed Asset held by other legal entity or unit
Fixed assets are recorded in the books of accounts of owner unit as per PO, But the ownership of asset does not change when transfer to other
unit. If the asset are transferred to other legal entity, unit or location those transferred are recorded on FA Module. But such transferred are not
recorded on Accounts Module.
1.50 Physical Verification of Assets
As per record of F.A Module, we can verify the assets physically. But Accounts Module, we cannot trace or verify the asset location as well as the
quantity of assets.
1.51Assets Tagging/Scanning/Barcode system
During the physical verification, store department make tagging on specific assets and keep record on F.A Module. Sometime we can verify the
assets details by scanning the barcode at a glance. These scanning procedures are given below;
 Supplier send assets as per PO.
 Store department makes GRN after checking of quality of such asset.
 System generated Asset ID number.
 Store department generates Tag number manually and tag papers are attached with Assets.
 Details information of fixed assets are inputted in system such as Manufacturer name, Received date, PO number, L/C number, Receiver
person, unit price, asset condition, model, brand, variation, asset type, item category, asset category, asset location, user id, issue date,
asset owner, present unit, received store name, warranty period, guarantee, vehicle registration number, chassis no. engine no etc.
 By using tag number all asset are traced and controlled In FA Module.
Page 142 of 160

1.52 Impairment of Assets
At present, the group does not follow any rules regarding impairment of asset.
1.53 Retirement/ Sales of Assets
Currently the retirement of assets are not recorded properly. But any sales of assets are recorded as other income.
1.54 MODELING OF FA-1 MASS ADDITION
 Currently Mass Addition process has not been used.
1.55 MODELING OF FA-2 DEPRECIATION
 Currently Depreciation Method process has not been used.
Page 143 of 160

1.56 MODELING OF FA-3 REVALUATION
 Currently Revaluation process has not been used.
1.57 MODELING OF FA-4 RETIREMENT
 Currently Retirement process has not been used.
1.58 MODELING OF FA-5 INTER COMPANY TRANSFER
 Inter-company Transfers is not maintaining in the custom system.

 For Purchasing Entity, in its Book an AP Invoice is being created with Asset Clearing(Dr) and Accounts Payable - Supplier - Internal(Cr)
 The same is being capitalized then through the normal cycle of Mass Additions for the purchasing entity.
1.59 MODELING OF FA-6 COST TRANSFER
 Currently Cost Transfer process has not been used.
Page 144 of 160

1.60 MODELING OF FA-7 CWIP
 Currently CWIP process has not been used.
1.61 FA-8 WISH LIST

SL No Topics Sub-Topics Wish Lists
1 Fixed Asset Fixed Assets requisition Need Automated
2 Fixed Asset Generate Indent and take approval from HOD. Need Automated
3 Fixed Asset Verified by audit Need Automated
4 Fixed Asset RFQ and CS sent to Purchase committee / management for price approval Need Automated
5 Fixed Asset PO create and request for supply by purchase department Need Automated
6 Fixed Asset Received assets by store through GRN Need Automated
Asset record on FA Module - We have recorded as per annexure, but need
7 Fixed Asset details information in recording transaction Need
Advance to Supplier - We have recorded as per annexure, but need details
8 Fixed Asset information in recording transaction Need
Recognized as Asset - We have recorded as per annexure, but need details
9 Fixed Asset information in recording transaction Need
All cost recognized - We have recorded as per annexure, but need details
10 Fixed asset information in recording transaction Need
Assets Details Information - We need the following information fields for

assets such as depreciation process, assign values , Name, Asset
Description, Asset Type, Original Cost, Current Cost, Residual Value
Percentage, Residual Value, Net Book Value, Cumulative Depreciation,
Asset Lifetime, Depreciation Start Date, Last Depreciation Date, Last
11 Fixed Asset Depreciation Period, Last Depreciation Amount, Subsidiary, Status. Need
Page 145 of 160

12 Fixed Asset Propose Approved Transactions Only Need

13 Fixed Asset Location change of Assets Need
14 Fixed Asset Class Change of Assets Need
15 Fixed Asset Department change of Assets Need
16 Fixed Asset Constrain Alternative Asset life Need
17 Fixed Asset Allow Asset Value Editing Need
18 Fixed Asset Depreciation charges Need Automated
19 Fixed Asset Allow future dated Depreciation Need
20 Fixed Asset Use Accounting Period Dates for Depreciation Need
21 Fixed Asset Written down using Depreciation Accounts Need
22 Fixed Asset Creating Alternate Methods (Tax Depreciation Methods) Need
Allow Administrators to View All Reports - To enable administrators to
23 Fixed Asset view reports generated by other users. Need
Preferred Asset Register Template - We can use to select the preferred
report template for Asset Register and leave this blank to use the default
24 Fixed Asset report template. Need
Preferred Asset Summary Template - We can use to select the preferred
report template for Asset Register and leave this blank to use the default
Preferred Depreciation Schedule NBV Template - We can use to select the
preferred report template for Depreciation Schedule NBV and Leave this
26 Fixed Asset blank to use the default report template. Need
Preferred Depreciation Monthly Template - We can use to select the
preferred report template for Depreciation Monthly and leave this blank
27 Fixed Asset to use the default report template. Need
Preferred Asset Listing Template - We can use to select the preferred
report template for Asset Listing and leave this blank to use the default
Asset Sale/Disposal Tab - We need the following information such as
Disposal Date, Disposal Type, Disposal Item ,Customer name, Sales Invoice
29 Fixed Asset , Sales Amount . Need
30 Fixed Asset Exporting Asset Reports to an Excel File Need
31 Fixed Asset Need to Asset Tagging Need to Asset Tagging
32 Fixed Asset differentiate the asset related PO differentiate the asset related PO
Page 146 of 160

33 Fixed Asset Asset sequence numbering manually Asset sequence numbering manually
Land & development either inventory or creation of other Asset (Real Land & development either inventory or
34 Fixed Asset State) creation of other Asset
35 Fixed Asset Need to add interest with asset value Need to add interest with asset value
When create a asset to combine of multiple asset, need to details When create a asset to combine of multiple
36 Fixed Asset information asset, need to details information
Wants to track assets like barcode reader or
37 Fixed Asset Asset scanning scanning for showing at a glance asset detail
Sometimes wants to bulk purchase to Spare
parts or machinery parts and store in the
inventory or warehouse. After that wants to
add cost of those parts on an existing asset for
38 Fixed Asset Bulk purchase spare parts and store in inventory maintaince.
39 Fixed Asset Wants to impairment asset group wise Wants to impairment asset group wise
When would be purchase any capital asset and

wants to add landed cost (bank charges, LC
charges, transport etc.) until the complete of
the asset or against that's asset. After adding
40 Fixed Asset Capital asset purchase and would be add landed costs the landed costs, wants to make capital asset.
1.62 MODELING OF CM-1 BANK ACCOUNT CREATION
Generally, as per requirement we create a new Bank account on system with below information: Company name or business unit name,
Bank name, Account number, Account type, Bank branch name, Account opening date.
Master data input for petty cash book open:
Company name or business unit name, Project name or business name.
We have daily cash transaction with various sites/factory/location with cash balance limit and significant number of transactions. Cash
transaction is carried GL code with site reference.
Bank book maintain according to Bank A/C which is executed by our correspondent Bank and petty cash book maintain for each business unit’s
Page 147 of 160

factory site, project site and H/O petty cash to the system.
1.63 MODELING OF CM-2 BANK RECONCILIATION PROCESS
Bank Reconciliation Team reconcile bank ledger with bank statement on daily, weekly or monthly basis as per requirement. Reconciliation team
collects bank statement by online or by mail and sometime by person hard copy from Bank. Generally concerned team has recorded receive and
payments transaction at real time. Generally, reconciliation team is checking ledger with bank statement. Sometime reconciliation team has
record miscellaneous type charges. Most Reconciliation team informs other team to record transactions if it goes pending. Generally, voucher for
payment from bank by cheque is kept un-posted status in present system and bank reconciliation team has posted such voucher upon cleared
from bank.
project site and each factory liquid cash keep in control and monitoring by day to day cash position report which is send from concern person.
In addition, reconciliation of remittance to factory petty cash between remit from H/O petty cash maintaining in each week.
1.64 MODELING OF CM-3 FUND TRANSFER
To meet bank liability such as differed bills, UPAS, EDF and BTB sight payment we transfer FC fund from one bank to another (within LE or
outside LE) with reference to order/contract.
We facilitate such transaction with FDD or Fund transfer letter.
Fund Transfer from USD to USD:
FDD
Fund transfer request letter
In addition, FDD issue from sister concern business unit’s or same business unit’s but different bank. This case issue bank issue FDD in the name
of receiver bank and make accounting is like fund transfer through request letter method.
Accounting of FDD to same business unit:
Contra Voucher:
Cash at Bank – Receiver Dr.
Page 148 of 160

Cash at Bank – Sender Cr.
Accounting of FDD to different business unit:

Bank Credit Voucher:
Cash at Bank Dr.
Sister concern Loan account Cr.
Bank Debit Voucher:

Sister concern Loan account Dr.
Cash at Bank Cr.
We sale foreign currency for local currency to meet local payments. We maintain foreign pool of fund reference to order/contract in MOB or ERQ
bank account. Accordingly, we sale foreign currency reference to order/contract to have local currency. Accounting entries as below
Local currency account Dr. (Actual BDT amount deposited but not converted by system)
Foreign currency account Cr. (Amount of foreign currency credited)
We also maintain following for performance purpose:
Transaction wise effected exchange rate history (not our corporate rate in system)
Forward sell or spot sell contract/reference of the transaction whether it is.
Payment and adjustment from Several bank account of our business units of BDT requirements we need to transfer BDT fund from same/other
bank’s BDT A/C. In case of, separate bank’s transfer, we make transfer through RTGS, BEFTN and for same bank we go internal fund transfer
method. Accounting of Fund transfer to sister concern business unit:
Bank Credit Voucher:
Cash at Bank Dr.
Sister concern Loan Account Cr.
Bank Debit Voucher:
Sister concern Loan Account Dr.
Cash at Bank Cr.
Accounting of Fund transfer to same business unit:
Contra Voucher:
Cash at Bank (PBL) Dr.
Cash at Bank (SCB) Cr.
Page 149 of 160

1.65 MODELING OF CM-4 BANK CHARGES
Generally, remittance forwarded to our bank after deduction of foreign bank charges and any other agreed amount with remitter with Bangladesh
bank threshold. Sometimes customer or agent is remitting fund against invoice netting agreed deductions.
Generally foreign bank deductions are as below:
 Buyer Commission.
 Swift/cable charge
 Reimbursement charge
 Discrepancy charge
 Acceptance Commission
 L/C opening & amendment commission
 Others
 Accounting of bill realisation:
 Bank Credit Voucher
 Respective head of charges Dr.

 Bank Account-C/A Dr.
 Bank Account-ERQ Dr.
 Bank Account-MOB Dr.
 AR Invoice Direct Export Cr.
Local Bank deduct advance tax, central fund of BGMEA and other bank charges from Foreign currency account or local currency account.
Generally local deductions are as below:
 Export bill handling/Swift/cable charge
 EXP certify charge
 Courier charge
 TDS
 Central fund for WPF of BGMEA
Accounting for local bank charges:
 Bank Debit Voucher
 Bank Charges Dr.
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 TDS against Direct Export Dr.

 Central fund for WPF & WWE Dr.
 Respective Bank Account Cr.
There are certain charges and payments Bank directly deducted from Bank Accounts. On getting statements and deductions advices we
generate accounting entries after validation of such deductions. Payment for Banks Charges deducted by bank:
Export bill realisation charges: Export bill handling/Swift/cable charge, EXP certify charge, Courier charge, TDS, Central fund for WPF of
BGMEA.
LC opening commission and acceptance charges: LC opening commission, LC acceptance commission, Stamp and stationary charge,
LC swift charge, Credit rating collection and other charges.
Other bank charges: Fund transfer fee, Pay order fee, Statement issue charge, Endorsement fee, TDS and VAT.
Local currency loan instalment and interest payment: Bank deduct loan instalment, interest of loan and deduct other loan related charges,
Loan instalment, Interest of loan, Excise duty, Loan management fee, All bank charges and commission.
Bank Interest as per bank statement generate a bank payment voucher in ERP then posted to system
Accounting of loan liability settlement by bank A/C debited:

Bank Debit Voucher:
loan A/C Dr.
Interest on UPAS Dr.
Cash at Bank MOB/ERQ/C/A Cr.
Accounting of bank charges:
Bank Debit Voucher
Bank Charges Dr.
Bank Account-C/A Cr.
1.66 MODELING OF CM-5 OVERALL BUSINESS PROCESS
Payment for audit fees, service rendering fees for various compliance and other export related issues as customer requirement we pay through
wire transfer or Credit card against invoice or other kind of request.
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We receive revenue from local sales from projects or cash fund as other income:
Revenue from construction is recorded with project reference
Revenue from real state is recorded with project reference
Revenue from local sales is recorded as general receipt.
Receive from scrap leftover and other sources is recorded as general receipts.
We receive incentives from government cash assistances policy:
Duty draw back against utility bill
Cash incentives on export bill realisation
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Cheque payment:
Concern person get Indent with bill and requirement to print cheque.
Bill and requirement search in system by request number given in indent.
Select bank instrument mode (Cheque pay order, RTGS, BEFTN & TT) option
Fill-up bank instrument reference (Cheque no)
Respective bank account blank cheque put in printer tray and click cheque button then get printed cheque & click voucher button then get
voucher.
Printed cheque & voucher attach with bill and send to get signature by authorized person.
After get signature this cheque disbursed by authorized person to party or supplier
Bank Debit Voucher
Accounts payable (Supplier Name) Dr.
Advance to party (Party Name) Dr.
RTGS or BEFTN:
Concern person get bill and requirement to electronic fund transfer.
Bill and requirement search by request number then print Bank Payment voucher and with attached bill.
Fill the prescribe form of EFT according to correspondent bank.
EFT form sends to signature/approval by authorized person.
After get signature /approval, the payment requests send to respective bank.
Bank transfer:
Concern person get bill and requirement to make fund transfer.
Bill and requirement search by request number then print Bank Payment voucher and with attached bill.
Fill the prescribe form of EFT according to correspondent bank for online fund transfer.
EFT form sends to signature/approval by authorized person.
After get signature/approval, the payment requests send to respective bank.
Pay order:
Concern person get bill and requirement to pay order.
Bill and requirement got search by request number then print Bank Payment voucher and attach with bill.
Ready to pay order letter against respective bank account.
Pay order letter send to signature by authorized person.
After signature this letter through to bank.
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Bank ready a pay order by debit our respective bank account.

After receiving this pay order we disburse this pay order to party or supplier Accounting:
Accounts payable (Supplier Name) Dr.
Advance to party (Party Name) Dr.
Factory admin dept. attendance sheet send to H/O Payroll dept. for data input to system
H/O Payroll dept. data entry to System.
After data entry payroll dept. printed salary sheet & attendance sheet send to factory audit dept.
Factory audit checked the salary sheet with attendance sheet.
H/O Accounts (Cash Management Team- CMT) Download monthly Bkash salary Excel sheet from Payroll System.
H/O Accounts (CMT) send this Bkash Salary Sheet to Factory Accounts for Checking.
Factory accounts team after Checking Bkash Salary Sheet they will mail Bkash locked salary sheet to H/O accounts (CMT)
H/O Accounts (CMT) reconcile of Factory Bkash locked salary sheet with Payroll System Download Sheet (1)
Factory audit Team mail to accounts team a summary of total salary of the unit to be paid for the month with braking down to Cash Payment,
Bkash Payment.
H/O Accounts (CMT) reconcile summery of total salary from Audit Team and detail from factory accounts.
CMT also perform same validation process independently and signed the payment voucher as Checker.
The prepared and checked payment voucher will be approved by any of one of Chief of accounts and Finance Controller.
H/O Accounts (CMT) Upload locked excel sheet to Bkash Portal for payment.
Finally, Bkash disburse the salary according to uploaded sheet.
Accounting of Bkash Salary:
Cash in Hand - Factory – Cheque Dr.
Cash at bank (bKash DM code) Cr.
Accounting of Bkash Salary refund against Bkash Failed report:

Bank/bKash (sub-Bank account no.) Dr.
Cash in Hand - Factory - Cheque Cr.
Factory admin dept. attendance sheet send to H/O Payroll dept. for data input to system
H/O Payroll dept. data entry to System.
After data entry payroll dept. printed salary sheet & attendance sheet send to factory audit dept
Factory audit checked the salary sheet with attendance sheet.
H/O Accounts (Cash Management Team- CMT) Download monthly Rocket salary Excel sheet from Payroll System.
H/O Accounts (CMT) send this Rocket Salary Sheet to Factory Accounts for Checking.
Factory accounts team after Checking Rocket Salary Sheet they will mail Rocket locked salary excel sheet to H/O accounts (CMT)
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H/O Accounts (CMT) reconcile of Factory Rocket locked salary sheet with Payroll System Download Sheet
Factory audit Team mail to accounts team a summary of total salary of the unit to be paid for the month with braking down to Cash Payment,
Rocket Payment.
H/O accounts prepared salary documents and send to Bank hard copy & soft copy (excel sheet) for salary disburse.
Finally, Bank disburse the salary according to hard copy & soft copy sheet.
Accounting of salary through forwarding letter:
Cash in Hand - Factory -Cheque Dr.
Bank A/C Cr.
Provision of Salary:
After receiving of wages and salary sheet, factory accountant make provision against salary
as on the salary month end day (Back date posting done)
Accounts payable of Salary:

Provision of salary debited by Salary & allowance – Ap as per salary sheet and make
posting within the date.
Payment of salary:
While salary amount payment has been done, then account module debited by Salary &
allowance- Ap against factory liquid Cash/Cheque
Adjustment of TDS against Salary A/P, Mobile bill, advance against salary, medical expenses:
The above deduction against the employee’s salary recorded by credited against Salary &
allowance- Ap
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1.67 CM-6 WISH LIST
SL No Topics Sub-Topics Wish Lists
1 Cash Management Contract wise details information Contract Performance Report
2 Cash Management Bank Forecasting Reports Bank Forecasting Reports
Wants contract wise fund details information (contract to

3 Cash Management Contract wise fund details information contract in same unit or others unit)
To get currency conversion benefit from Bank, need to

forwarding letter to send to the bank before to convert
4 Cash Management Forwarding Letter for currency conversion foreign currency to BDT
When foreign currency converts to BDT, need to rate details
5 Cash Management Foreign currency converts reports information
6 Cash Management Scheduling for loan payment Need to schedule for loan payment
7 Cash Management Wants to maintain location wise cash Location wise cash
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8 Cash Management Cash budget Need to cash budget
9 Cash Management Cash Limit Need to cash limit further for reducing risk
wants to maintain petty cash and salary cash separately or

10 Cash Management Petty cash and Salary Cash jointly further (pending decision)
Wants to track/maintain employee wise cash

11 Cash Management Employee wise cash payment payment(Existing report in Payroll system)
Wants to notification for Scheduling Loan/BG/FDR Wants to notification for Scheduling Loan/BG/FDR to
12 Cash Management to Maturity or Renewal Maturity or Renewal
Wants to realize land owner or broker fund (cheque issue to

13 Cash Management To realize land owner or broker fund land owner but would be settlement with broker)
14 Cash Management Cheque print wants to cheque print from system
15 Cash Management Loan Sanction details Loan sanction details
16 Cash Management Bank overdraft wants to calculate bank overdraft interest (Day basis)
17 Cash Management Security information/BG/FDR/Loan Need to new form for security information/BG/FDR/Loan
After collecting bank statement wants to bank reconcile auto

18 Cash Management Bank Reconciliation or manually (pending decision)
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AS-IS Finance Current State V 2

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Business Function: Financials Core team Member: Vishal Sharma, Monojit

As-Is Document for

Date Author Version Change Reference

19-Feb-20 Sandipan Sarma 2.0

Farooq Ahmmad Bhuya Deputy Financial Controller

1.3.1. CURRENT SYSTEM DESIGN – 4’C......................................................................................................................................................................................................13

1.19.2. Local Procurement of goods or services without P.O............................................................................................................................................................................58

1.24.12. Payment with personal Credit cards...........................................................................................................................................................................................76

1.37 GENERATE INDENT AND TAKE APPROVAL FROM HOD................................................................................................................................................................................140

1. Process approach in Current State

1.1 SUMMARY OF FINANCE FUNCTIONS AT STANDARD GROUP

Current Process Description

1.2 ORGANIZATION STRUCTURE

Current Process Description

 Standard Group has diversified its business into various industries.

The List of Legal Entities are as under:

12. Sterling Designs Limited

13. The Civil Engineers Limited

14. Tip Top Fashions Limited

 Currently maintain 42 Operating Unites for across all Legal Entities.

1.3 MODELING OF GL-1 CURRENT SYSTEM DESIGN

1.3.1. CURRENT SYSTEM DESIGN – 4’C

Current Process Description

1.3.2. Project under each unit

Current Process Description

1.3.3. Manual Budget for Expense Control

Current Process Description

1.3.4. Inter Company Transaction

Current Process Description

At present corresponding intercompany lines of transactions are generated by system.

1.3.5. Intercompany transactions and Transfer Pricing

Current Process Description

1.3.6. Cost center

Current Process Description

1.4 MODELING OF GL-2 ACCOUNTING SOURCES

1.4.1. MODELING OF GL-2 SUBLEDGERS

Current Process Description

1.4.2. Reconciliation with Other Non-Integrated Modules

Current Process Description

1.4.3. MODELING OF GL-2 – GL MANUAL ENTRIES

Current Process Description

o Manual Entries in GL are for the following purpose

1.4.4. Period closing:

Current Process Description

1.5 GL-3 WISH LIST

1.6 MODELING OF AP-1 SUPPLIER CREATION/MAINTENANCE

Current Process Description

1.7 MODELING OF AP-1 PAYMENT TERMS

Current Process Description

1.8 MODELING OF AP-1 Procurement for export Orders

1.8.1. Foreign Import

1.8.2. Foreign Import with LC

Current Process Description

Payment of loan is accounted as below:

1.8.3. Foreign import with L/C and shipping guarantee

Current Process Description

However, following entries are under process for proper accounting:

JV Inventory A/C 5,000

JV Shipping guarantee A/C 5,000

JV Accounts Payable-Supplier 5,000