B2X - India Standard Accounting Procedures - samsung V 1(Final)

Accounting Manual is designed for Branch Accountant of B2X – India operation for accounting, compliance, and reporting

Accounting Manual (Samsung - Division)Version 1.00

B2X - India

Accounting Manual (Samsung- Division) -Version-1

(Private & Confidential not for circulation)


The basic purpose of the Accounting Manual is to provide B2X - India (Samsung) Staff with direction and guidance with relation to Samsung accounting transactions, procedures, and reports that should be uniform throughout Indian Operation.

The Accounting Manual is an official directive of the CFO India. It is published and maintained by the Corporate Accounting Office as part of the general responsibility for B2X - India accounting policy.

The goal is to make the Manual as clear and useful as possible. All users are encouraged to contact sures [email protected] for any suggestions for revising or improving the Manual.

Suresh AdvaniCFO - India


mailto:sures


Accounting Manual

For

B2X – India(Samsung)



Table of Contents

Sr. No. Topics Page No.

1.1. Accounting Software 61.2. How to operate Tally Accounting

Package6

1.3. Selection of Company 71.4. Creation/ Deletion of company/ ledger 81.5. User – ID/ Password 91.6. Gateway to Tally 101.7. Closing of Books of Accounts in Tally 11

2.1. Voucher entry in tally 122.2. Sales Voucher 132.3. Refund – Services not provided 162.4. Purchases 172.5. Stock 182.6. Sundry Debtors and Creditors 212.7. Cash/ Bank 222.8. Expenses 232.9. Duties & Taxes 23

3. Documentation& Filing 24

4. Back-up of data 25

5. Branch Control Account 26

6. TDS 27

7. Service Tax – Reverse charge Mechanism

28

8. Accounting for tools & Spares 29

9. Provision & Prepaid 30



10. MIS 31

List Of Annexure

Annexure Topic Page Number

A List of Designated Contact Persons 32

B Authorization List 33

C Vendor Registration Details 34

D GSPN 35

E Format of Debtors / Creditors 42



List of FiguresFigure Topic Page Number

1. Remote Application – Access to Tally 62. Tally Opening page 73. Selection to Company 74. List of Company 85. Login Details 96. Gateway to Tally 107. Payment Voucher 128. Selection to Sales Voucher 139. Sales Voucher – Format 1310. Selection of Stock Item 1411. Receipt Voucher 1512. Payment / Refund Voucher 1613. Purchase Voucher 1714. Purchase & Selection of Stock 1815. Selection of Stock 1916. Stock Summary Page 20



1.1. Accounting Software:

B2X – India, across it Branches, use Tally – ERP Version 9 Accounting Software.GSPN – (Global Service Partner Network), this software is used by Samsung.

1.2. How to operate Tally.

On your desk top, you will see Icon named Remote Application, double click on same and it will connect Tally, on Cloud as shown below.

(Figure 1 - Remote Application – Access to Tally)

Double click on Remote Application Icon, Tally ERP 9 will open, as shown in Figure 2 below.


Remote Application

Icon


(Figure 2 - Tally Opening page)1.3. Selection of Company:

After opening front page of tally, we will get option to select company:

(Figure 3 - Selection to Company)



Click on select company, you will get page, with list of companies created:

(Figure 4 - List of Company)

Accountant at branch, needs to select company in which he operates, his access is limited to his Branch operation.

1.4. Creation/ Deletion of Company, Ledger Account, Stock Ledger:

Company creation, Accounts ledger creation, and stock ledger creation as well as deletion is done at Head Office, branch has no right to create as well as delete same.

Incase Branch Accountant want to create / delete ledger account, he has to contact designated contact person as Listed in “Annexure – A”



1.5. User-Id, Password:

User Id as well as password is created at Head office, and addition/ deletion/ changes will be done from Head office. (Refer “Annexure –A for contact details)

Accountant will have to enter user ID as well as password in screen shown below:

(Figure 5 - Login Details)

1.6. Gateway to Tally.



Once Accountant has entered password, Gateway to Tally is opened, which is main menu to Tally for navigation & entry purpose.

(Figure 6 - Gateway to Tally)

Accountants at branch have to do following functions in

Tally:

1. Data entry for Sales – stocks are maintained at GSPN where accountant is not involved.1.1. Entry will be for Non-Warranty Claims.1.2. Warranty claims entry is passed at Head Office.2. Data entry for Purchases – stock as well as care pack purchases entry will be done in

Tally with reference with GSPN.3. Data entry for Expenses, in Tally4. Data entry for Bank – Receipts & payments, in Tally.5. Data entry for Petty cash – Receipts as well as Payments. 6. Stock Report for Unit, where we own stocks.



1.3. Closing of Books of Accounts.

Entry in Tally has to be closed on 3rd. of each month, after 3rd. Of each month branch accounts will be blocked and branch can’t edit any data after 3rd.

For any data to be edited after 3rd.You need coordinate with HO or get authorization to change any entry.

(Refer – Annexure “A” for list of Authorized person details)

2.1. Voucher entry in Tally:



Gateway to Tally once opened, click Accounting vouchers icon, you will get screen below- on right hand side you can view list of vouchers – sales, purchases, bank, cash, debit note, credit note, journal, with short keys on your right hand side you can open respective vouchers.

(Figure 7 – Payment Voucher)

2.2. Sales Voucher:



Accountant has to click on F8 or sales, he will get screen as below, He has to click his branch sales, in above example Sales – Agra, he will get screen as below:

(Figure 8- Selection to Sales Voucher)

(Figure 9- Sales Voucher – Format)



Note:

(a) Sales Invoice number will be added manually, it will be same as invoice number generated in GSPN and full invoice number needs to be typed in sales voucher & date also should match with GSPN invoice date.

(b) Entry to be passed by Accountant.

Cash Sales: (Non – Warranty)

Sales entry to be done:Samsung Customer – Dr. Sales Account – Cr.Output VAT Account – CrService Charges – Cr.Output Service Tax Cr.

(c) Sales entry is passed as mentioned above.

(Figure 10 – Entry for Sales has to be done after taking Sales Dump from GSPN)

3. GSPN – Samsung Software



3.1. Access to GSPN.

Log in to http://gspn2.samsungcsportal.com/index.jsp# you will get screen as below.Samsung gives Admin ID / PW for new units, B2X Team has to create User ID and Password.

User ID, and Password, has to be generated using help of Admin, who will co-ordinate with Samsung and generate same.

3.2. Sales Warranty


Enter User ID/ PW

http://gspn2.samsungcsportal.com/index.jsp


After Login, User will get screen below, he has to click, Business Tab,

He will get, screen below, he has to go to Warranty Warranty Claim Warranty Excel Download.


Warranty Claim data


Once this is done, you will get screen below, you need to select the period for which entries has to be done, as show in screen shot.


Date selection


User has to click Hyper Link in Blue Colour, to download excel, before that they have to click REFRESH


Excel downloa

d


Once you get this screen, you can DOWNLOAD, click DOWNLOAD

You will get EXCEL sheet as below:



Entries has to be done daily, use excel downloaded sheet, and select at status code 80, which will give information on Non Warranty sale.

This has to monthly basis also, to ensure that month wise data entered as sales is tallied, (figure which is shown in excel for sale is NET amount of taxes, you need to add Tax in addition, Service tax has to be calculated on Labor plus Parts sales cost, shown in excel sheet.)


code


Direct Sales: (Accessories sales) go to -- Order management parts sales SO History select period


SO history


Transfer data into excel as shown below:

Note: Code 20 is for Warranty

Code 95 is for Rejection, this has to be checked every week by accountant and inform Center Manager, Center manager has to keep proper control, follow up for all items appearing in Code 90 to 95.

Center Manager has to ensure code 90 (hold calls) don’t go to code 95 rejected calls.

If calls go rejected code 95, it will be duty of center manager to manual share all documents with Samsung team on special approval and convert all calls to code 20.

Team Leader is responsible for Code 90 to 95, and keep check on daily/ weekly basis, inform Center manager.

Accountant has to ensure that if no action is been taken, he informs HO for code 90 to 95



Further Branch Accountant has to ensure that:

1. Samsung Accounts should tally with Cash Collection Account.2. Sales Account defined for VAT – and rate of VAT should match.



Purchases:

In GSPN, go to Order Management purchase order billing information select period click details as shown in screen below:

You will get purchase quantity, and detail search you will get report as shown below:



This data is used for booking purchases.



c. Advance cash received:

(Figure 11 – Receipt Voucher)In tally Accounting Package, go to Accounting Voucher creation, press F6 or receipts, Accountant has pass following accounting entry

Bank Account (Credit Card Account) Dr. (or)Bank Account (Cheque) Dr. (or)Cash Account Dr. (or)Samsung Customer account CR.

While booking sales, accountant needs to pass sales entry as mentioned below:

In tally Accounting Package, go to Accounting Voucher creation, press F8 or Sales, Accountant has pass following accounting entry

2.3. Refund - Services are not provided:



(Figure 12 – Payment / Refund Voucher)

In tally Accounting Package, go to Accounting Voucher creation, press F5 or Payments, Accountant has pass following accounting entry

Samsung Customer account DR.Bank Account (Credit Card Account) Cr. (or)Bank Account (Cheque) Cr. (or)Cash Account Cr. (or)

However if the Customer is taking credit of VAT (i.e. Corporate Client) then entry should be passed with Separate Ledger of Debtors and not with Common Ledger.

In case of corporate clients: Additional Details about the Debtors like Address, Email Id, VAT TIN No. etc. to be put in case of Corporate Client. Else, no sale can be done to corporate client, at time of generating sales invoice, it has to be sent by email to Yash.



2.4. Purchase Purchase requisition of Samsung is done by Team Leader in GSPN.(Refer Annexure –B List of Authorization)Branch Accountant has to Check GSX* system of Apple for purchase invoice, this has to be verified with PO raised at branch, all copies of PR, PO and purchase invoice has to be kept in separate file.*GSX System – Refer Annexure “D”

Branch accountant has to enter purchases in tally:

(Figure 13 – Purchase Voucher)Entry:

Purchase Account Dr. CST / VAT DrService charges Dr.Service tax Dr.Apple India Pvt Ltd. (Creditors) Cr. (Separately for each Branch)

(In reference branch accountant has to mention SAP document number, which is available in Purchase invoice downloaded from GXS system)

Kindly refer “Annexure C” for vendor registration form.



2.5. Stock

(Figure 14 – Purchase & Selection of stock item) Sales and Purchase entry should be passed with Inventory details - like Name of commodity,

Rate, Value and other related details. ( in details it is mentioned above)

Head Office will create Sub Group for material of same nature.

Stock wise entry should be done only of the material in which we are trading or dealing in. (For example: Stationary purchase for office use is not a Stock item. So, not to be entered as Stock)

Unit of measurement should be properly assigned for the Stock Item (not written as ‘Bulk’) Ensure proper entry of Sales & Purchase of Material under the Proper Stock Item, so that we

can get the Stock wise Summary (i.e. Name of Stock, Opening Stock, Purchases, and Sales, closing Stock etc.

Reporting responsibility:

1. Branch Manager is responsible to conduct stock verification.2. Branch Stores/ Accountant has to submit weekly stock report to head office.



3. It will be duty to check physical stock with stock in Tally, find variance, and mention reason for same.

4. Stock report duration has to be from Monday to Saturday, report has to be sent to HO on or before 12 noon coming Monday.

5. Tally stock statement can be obtained Gate way of Tally Reports stock summary.

Below are screen shot of how to check stock items.

(Figure 15 – Selection of Stock)

Click on stock summary, you will get details of stock item wise.



(Figure 16 – Stock Summary Page)



2.6. Sundry Debtors & Creditors:Branch Accountant has to check Debtors/ Creditors on monthly basis, Tally path is mentioned below.

For Sundry Debtors

Gateway of Tally - Reports- Balance sheet --Current assets--Sundry debtors-Select partiesAlt+B

For Sundry Creditors

Gateway of Tally - Reports- Balance sheet --Current Liabilities--Sundry Creditors-Select PartiesAlt+B

Monthly ledger scrutiny of Sundry debtors and creditors has to be done by Branch Manager, list of same need to be sent to head office -Yash, and Suresh Advani ( with details mentioned)

Confirmation from the Creditors and Debtors as on 31st March as per instruction of Head Office.

Separate Ledger account must be maintained if the party is Customer as well Supplier. To do the bifurcation, you must write “Cr” for Creditors and “Dr” for Debtors after the name of Ledger.

Payment to Creditors has to be done on Bill by bill basis. So that you can get the Bill by bill outstanding details properly. Never make any lump sum payments to any party without approval from corporate office. It is non-compliance as per policy if lump sum payments are done without approval.

Format of Debtors & Creditors – Refer Annexure “F”



2.7. Cash & Bank General Points which Branch Accountant has to ensure

Bank entry must be passed EVERY DAY. Bank reconciliation should be done daily as well as on MONTHLY BASIS. Name of Ledger for Bank Account should also contain the Bank A/c No. Cash collected should be deposited in the Bank same day, if cash is not deposited same has to

be reported to Head Office and with reason for thereof and permission for same is to be taken from CFO.

In any circumstances, cash collected from customer is NOT to be utilized for any payment, but should be deposited at BANK. If cash is utilized for petty cash, CFO permission should be sought first.

Petty cash can be used for daily office expense such as tea/coffee, maintenance, sweeper salary etc.

Cash payment above Rs. 20,000 is not allowed as expenses or deduction in Income Tax. Do not make Payment in cash in excess of Rs. 20,000. Practice of making payment only through Cheque/DD must be followed.

Cash balance should not be NEGATIVE on any day No amount is to be withdrawn from cash collection for petty cash use, branch accountant will

get TOP up card from head office, and money will be deposited in top-up card from HO, based on requisition from Branch duly approved by HO. Format of email is given below:



Dear Sir,

Request to transfer balance to our Top-up card for Rs. ________________

For payments:

1. List the payment Amount

Send us scanned copies of all payments

Head office Approval : by Suresh Advani

Copy will be addressed to : Mr. Ram

2.8. Expenses

Rent of Property : Name of the ledger should be Rent A/c – Name of Branch (For example: Rent of Rajkot Branch will be “Rent A/c – Rajkot Branch”).

Expense Voucher : Keep the practice of taking Expense Voucher details from employee who take Advance for various expenses. Never pass one single voucher for various advances given to an employee.

All expenses vouchers should have proper supporting, and as per corporate policy, with proper authorization of all vouchers.

List of Authorization for various vouchers is given below, in “Annexure – B”

2.9. Duties & Taxes

Journal Entry should be passed for transfer of VAT on Sales and Purchase under Sales Tax Payable A/c.

Cross checking of NET amount and TAX Amount should be done daily. (For example: In case of Sales @ 5% if the net amount is Rs. 10,00,000 in Dec 2015 month then its VAT @ 5% amount must be Rs. 50,000. Same way should be done with other type of Taxes.



3. Documentation & Filing

Separate Box Files must be maintained for the following:

All Sales Invoices serially filed All Purchase Invoices serially filed All Expense Vouchers serially filed All Fixed Assets Invoices serially filed Bank Statement, Pay-in Slip, Counterfoil Petty Cash Expenses C-Form F-Form Original documents file like

o VAT Registrationo Service Tax Registration Certificateo Shop & Establishment Licenseo Income Tax Audit Reporto Sales Tax Audit Report

Asset register for all the assets in the setup/branch with codification



4. Backup of Data

Create a separate folder for statutory Payments/ soft copy Documents

o VAT Paymento VAT Returnso Service Tax Paymento Service Tax Returnso TDS Paymento TDS Returnso TDS Certificate

Save them in hard disk/ pen drive.

Tally data backup is taken for all branches at Head Office.



5. Branch Control Account

Every Friday evening branch ledger copy will be sent to branch accountant for reconciliation of branch and Head Office accounts, Branch needs to pass necessary entry in its books. Coordination needs to be done between HO and Branch.

Refer Annexure “A” for list of designated Contact at Head Office.



6. TDS (Tax Deducted at Source)

Deduct & make the payment of TDS as per the provision of Income Tax Act & Rules. For Apple Service Centre activity, TDS will be applicable on the below items:

o Employee Salary as per the income tax ruleso Rent (if above 15,000 per month)o Purchase of APP (TDS to be deducted on Basic Bill Amount inclusive of Service

Tax)

Note: TDS may be applicable on many other expenses and purchases, so please consult, corporate office for applicability of TDS on other such items.

For any issue in TDS, you can call HO – Tax Manager/ Yash/ CFO



7. Service Tax (Reverse Charge Mechanism)

If the Company has availed the following services which are chargeable to service tax under reverse charge mechanism then we need to calculate the Service Tax Liability and make the payment accordingly.

o Goods Transport Agency Serviceso Supply of Manpower Serviceo Rent – a – cab Serviceo Works Contract Serviceso Security Serviceso Advocate Services

Note: We have covered only some of category of Services under Reverse Charge Mechanism concept which is applicable to our Apple Care Centre Related Transaction. Please consult your Consultant before taking any decision on above.



8. Accounting of Tools & Spare & Information Technology Products

Tools & Spares Tools and Spares purchase for the Servicing of Apple Products Should be accounted as Tools

and Spares under Fixed Assets. First Pass a Purchase Entry in to Respective Purchase A/c i.e. OMS Purchase @ 2% or

Purchase @ 5% or Purchase @ 12.5% and then Pass a Separate Journal Entry for Transferring the Amount to Tools & Spares under Fixed Assets.

Tools and Spares means the Product whose useful life is more than one year and which is not stocked for Sale.

Tools and Spares whose useful life is less than one year need to be accounted as Consumable stores & spare parts.

Parts which are used for replacement into products are not to be considered as Tools and Spares.

Stock Item should be created under the Stock Group “Tools & Spares”.

Information Technology Products Information Technology products means Laptop, Computers, Mobile Phones, IPAD etc

which are purchased for the use by the Organization or for Office Purposes and not for Sale. Manager should provide proper information to Accounts department if there is any

purchase of above products for organization or office purpose. Above Products should be accounted as Fixed Assets and not under Purchases.



9. Provision for Expenses / Prepaid Expenses at the Year End as per Accounting Standard

Provision for Expenses or Prepaid Expenses at the Branches or Apple Care Centre for Following Expenses.

o Telephone Expenseso Mobile Expenseso Internet Expenseso Prepaid Rento Prepaid Computer Expenses (Ex. AMC for Computer Maintenance)o Any other Provision or Prepaid Expenses.

Provision at the Corporate Office Only for following cases.o Provision for Depreciation as per Companies Act.o Provision for Income Tax.o Provision for Deferred Tax.



10.Management Information Systems (MIS)

Reports from Branches:

Sr. No Report Date / Time it should reach

Sent to Reference

1. Stock Report Every Monday – by 11 am.

Shiv

2. Finance Report Daily before Saurabh/Suresh/ 3. Bank Reco.

StatementMonthly before 3rd. Shiv/ Rutuja

4.

Sundry Debtors & Creditors

Monthly before 3rd. Suresh/ Shiv

5.

Monthly Finance report

Monthly before 3rd. Suresh/ Shiv

Note: Information to be provided without any variation in future, however a variation of 5% is allowed in some unavoidable circumstances.



ANNEXURE – A

List of Designated Contact Persons - Head Office for Branch Accountants:

For Branch Accounts related Matter: -

Shiv / Saurabh / Sunil Singh

For Banking / Petty Cash & receipts & Payments:

Harshal

Reporting of Branch Accountant: All branch Accountant will have dual reporting,

a. For administrative purpose –

Branch Manager/ In charge

b. For Functional related – Head Office –

Vitthal/ Sunil (Tax)

Other Matters/ Escalation

Suresh Advani

Name Mobile No. Email ID

Suresh Advani 9920020094 [email protected]

Rajesh Rajak 8655633119 [email protected]

Sunil Singh 7208025001 [email protected]

Saurabh Karnik 9987503324 [email protected]

Kulveer Singh 7040166459

Shiv Gupta 8898585681

Vithal Patil 9987730099 [email protected]



Annexure – B:

List of Authorization

Sr. No Voucher Type Branch Authorization

Head Office Authorization

Remark

1. Petty cash Voucher(below Rs. 20,000)

Branch Manager Branch Coordinator Any Payment in cash above Rs. 20000/- will be done only after approval of CFO/ HO.

2. Petty Cash Voucher (above Rs. 20,000)

Branch Manager CFO

3 Top-up card Refill Branch Manager CFO Based on discussion / vouchers submitted at HO.

4 Bank Payments Branch Manager CFO Proper documents submission.

5 Bank Receipts Voucher Branch Manager Report submitted at HO

6 Purchase of Fixed Assets

Branch Manager COO/ Vertical Head Asset Purchase Form

7 Purchase of Stores/ Fixture/ Spares/ tool

Branch Manager or COO/ Vertical Head Requisition form

8 Reversal of Sales Branch Manager or COO/ Vertical Head Sales Reversal



Annexure - C

Vendor Registration Details

Vendor Registration form is to be sent to Head office – Accounts department (Sunil/ Shiv)

Vendor is created in CRM, in head office. Vendor Registration Form can be obtained from HO – Accounts, which has to be sent to Mr. Ranjeet as well as Accounts team- Mr. Shiv/ Mr. Sunil/ Hari.

Confirm the VAT TIN No. or Service/ Tax Registration No., PAN No. of new Supplier before creating their master in Tally. If the supplier is not providing the same, DO NOT BUY from that supplier.

Annexure – E

Sundry Debtors & Sundry Creditors Statement to be sent every month to Head Office

Format:

Name of Party

Bill Reference

Bill date Total Amount

30 Days 6O Days

90 Days 120 Days

Remark

Control Points for Samsung Accounts Departments:

1. For all out warranty cases:



1.1. Accountant or Branch Manager, should check all and correlated with Job Card as well as TCR, stamp and sign both so as to confirm Job closed as well as money collected.

1.2. All collections should be deposited in bank, through CMS facility, in case CMS is not there, it will be responsibility of Accountant to deposit money in bank.

1.3. In Head office, same needs to be checked, job wise amount deposited.

2. Insurance :

Job allocation card is allocated to engineer, when job gets over, accountant should should verify from Portal for Syska, this task is to ensure if any Job done by Engineer, same can be verified through AMS.

If Job is not registered, same need to be reported to Center Manager – if there is no response, same needs to be reported to head office.

3. Stocks/ Stores:3.1. For Material Requisition, raised in GSPN, engineer has to get the requisition singed

by Center Manager, then upload in GSPN copy of same is given to stores.3.2. On receipt of Material, Stores to verify correctness of material received agaist job

card, and release material to the engineer.3.3. All such job cards will be lying open, once old parts are replaced, which stores should

receive,3.4. Branch Accountant, will check GSPN, calls enter in GSPN whether warranty/ in

warranty, co-ordinate with stores to check sam is recived, parts are submitted to stores and same sent to Samsung.

4.


B2X - India Standard Accounting Procedures - samsung V 1(Final)

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