ChecklistfortheSales,DispatchandDebtors

1) SALES(Finalproduct,Rejects,Scrap,Storessales)IncaseofExportandDomesticsales 1.1Check whether all the Sales of sold stock according to schedules. If not Made the list of the delay dispatches. 1.2Reasonwiseanalysisofthedelayindispatches. 1.3Quantifythelosses,forthematerialwhicharenotdispatchedwithintimei.e.thecompanyhaspaidthe Airfreight/seafreight. 1.4Check whether all the bills are made according to the contracts made. If not list out the discrepancy. SpeciallyevaluatetheERPinthisregardwhetherallthecontractsaremadeinERPornotandsystemofraising theinvoices. 1.5Listoutthecasesofdelaysindispatchesforsold&unsoldstockafterproduction.Alsofindouttheaverage noofdaystakentoclearthestockafterproduction. 1.6Reviewthesystemofstockrecordsmaintenance. 1.7ReasonwiseanalysisfortheVarianceinactualandtargetsalesprices.Thedifferencescanbeidentified fromMIS.ThereasonscanbeascertainedafterdiscussionswithMarketingExecutives. 2) Studythesystemofawardingthetransportcontracts 2.1ReviewthesystemofgivingthecontracttotheTransporter. Sendingenquiryandreceivingquotations. Analysisofcontroloversendingenquiryandreceiving,howfollowedup,recordkeeping,etc. Basisoftakingdecisionmentiononcomparativestatementclearly. Dateofapprovalmentiononcomparativestatement,whoistheauthority,isitclearlydefined.Isthe delegationproper? Whichquotationisselectedmentiononcomparativestatement?Givelistofalllapses. 3) Insuranceduringtransit 3.1Reviewthesystemoftakinginsurancecoverforthetransitpolicy. 3.2ToensurethatproperdeclarationisgivenforInsurancecoverage.Atnopointoftime,thetotalDispatch shouldexceedthedeclaredinsurancevalue. 3.3Costbenefitanalysisoftheinsurancepremiumpaidandclaimlaunchedatleastforfouryears. 4) SalesReturn

Doesthesystemrelatingtosalereturnsprescribelimitsontheauthorityofmanagersatvariouslevels toacceptreturnofgoods? Arethereturnedgoodsacceptedonlyaftertheyhavebeenproperlyinspectedfortheirquantityand quality? Is an inward return note prepared promptly against each sale return, indicating the quantity and specificationsofthegoodsreceivedback? Aretheinwardreturnnotesprenumbered?Aremissingnotenumbersdulyenquiredinto? Are returned goods sent to the stores immediately? Are inward return notes entered promptly in inventoryrecords? Isacreditnotepreparedonthebasisoftheinwardreturnnote?Isitproperlycheckedwithreference to the relevant inward return note before it is approved and sent to the customer? Are appropriate entriesmadeinthebooksofaccountpromptly? Exciseformalitiesfollowedproperlyornot? Is there a proper control over the issue of credit notes especially with regard to the authority for issuingthesame? Arecreditnotesprenumbered?Aremissingcreditnotenumbersdulyenquiredinto? Isthesalecommissionpaidinrespectofgoodsreturnedrecoveredthroughanappropriatedebitnote. Aresalereturnanalyzedwithreferencetothereason?Areappropriatefollowupstepstaken?

5) Claimsbycustomer Are all claims (for poor quality or for delay in delivery and similar other reason) approved by an authorizedmanager?Istheapprovalgrantedonlyafteraproperexaminationofthematter? Isacreditnotesenttothecustomerinrespectofeachapprovedclaim?Areappropriateentriesmade inthebooksofaccountpromptly? 6) Scrutinyofdebit/creditnotes TheircorrespondingimpactonSalesTax,Exciseetc. WhethertheyareissuedinaccordancewiththeSalesPolicyandtermoftheSalesOrder. Whetherproperlyauthorized. 7) SalesCommission Checkallthediscountsaregivenaspercontractsmadewiththeparty Reconciliationofsaleswithsalescommission. 8) ExportSales Reasonswiseanalysisoftheoverduebills. Lossofoverdueinterestduetodelayinrealizationoftheexportbills.

Norms of Export trade, imports, process of order booking to production planning, realization, settlementbenefits,claims,etc.

9) MarketingInternational&Domestic: Arestandardpricelistsmaintained?Isaspecialsanctionfromaseniormanagerrequiredinthecaseof salesatpriceslowerthanthestandardprice? Doesthesystemofallowingrebatesanddiscountprovideforadequatecontrols?Inparticularisthere aclearcutpolicyforallowingsuchrebatesanddiscounts?Aretheauthoritiesforvariousmanagersin thisregardclearlylaiddownandaretheyreasonable? Are special sanctions required in case of sales to those companies/ other enterprises in which the managerialpersonnelorsenioremployeesareinterested? Isthereawelldefinedpolicyformakingsalestoemployeesatconcessionalprices?Doesitlaiddown anylimitsinthisregard? Isthereatimelypreparationofawrittensaleorderonreceiptofanorderfromacustomer? Aresaleordersprenumbered?Isalackofcontinuityinsaleordernumberdulyenquiredinto? Isthereaproperauthorizationofcredit,price,quantityandotherimportanttermsofthesaleorder? Is there a system of fixing credit limit for regular customer? Are these limits approved by a senior manager as per the sales policy determined by the top management? Are these limits reviewed periodicallyinthelightoftheexperiencedindealingwiththecustomer? Iscreditlimitofthecustomerconcernedcheckedbeforesanctioningthecreditonthesaleorder?Isup todateinformationontheextentofthecreditalreadyextendedtothecustomerreadilyavailablefor thispurpose? Isacopyofeachsaleordersenttothedispatchdepartmentandtheaccountsdepartment? Isadispatchdocument,e.g.agoodoutwardchallan,preparedatthetimethegoodsaredispatchto thecustomer?Isitmatchedwiththebillofladingorrailwayreceipt/transporterreceipt? Aredispatchdocumentsprenumberedandmissingdocumentnumbereddulyenquiredinto? Isthereasystemofcheckingeachconsignmentofgoodleavingthepremiseswiththerelateddispatch document? Isacopyofdispatchdocument,i.e.goodsoutwardchallan/gatepasssenttothecustomerandtothe accountsdepartment? Isanacknowledgementofreceiptofgoodsobtainedfromthecustomerorfromhisagentonthecopy ofthedispatchdocument?

DebtorsManagement
1) Creditlimitfixation Reviewthesystemoffixationandmonitoringthecreditlimits Check whether all the important factors (i.e. payment track of the customers, potential of the customersetc.)areconsideredornot.

Reviewthesystemofenhancingthecreditlimitsofparticularcustomersoronetime/adhocsanctions tosupplybeyondcreditlimit. 2) Debtorsfollowup ComparedebtorsagewiseDec30th2001,March2002andJune2002; Percentageincrementindebtorsaspercentagetoincrementinsaleforaboveperiod(withreasons); Debtors outstanding more than 365 days to be identified (reasons to be discussed with concerned person); Seethecaseswhereamountisdueforsalemademorethan365days;saleisstillmadeandpaymentis receivedforsubsequentinvoices; Identifydebtorshavingmorethan5%valueoftotaldebtors; Followupdonetorecoverthesedues,seerecordsifanymaintainedforthat; Salesmadetodebtorsnotpayingbills Writeoffinaccountswhatisthebasis.Isitreasonable,whoauthorized,isitregularthing. Whetherpaymentaspertermsofpayment. Whethercredittermsaspertermsofappointment. Accountabilityforrecoveryofduesofdebtorsall,geographic. Salespolicyterms Interestschargedondebtorsanddelayincharginginterest;
1. Sales ChecktheBillingBreakUpasperContract&Ensurethesameisfollowed Pricedetermination Conditionsofcontracts AllMaterialsdispatchedisbilled SalesReturns Comparebudgetedprofitwithactualprofit. Pendingsalesorders Checkwhethersaleshasbeenmadeonminimumprofit%age 2. DebtorsLoansandadvances Checkagewiselistingofthedebtors CheckcreditLimitofDebtors Filteroutdebtorsagingmorethanthecreditperiod Investigateintothereasonsofdelayinpayments Ensuretheadequacyofthedebtrecoverymeasuresandrecommendwaystoeliminatetheinefficiency Fixingofcreditloan/advancelimit Authorityformaterialadjustmenttopartiesaccount Interestincomeondebtorsbalanceisseparaterecordedornot Doubtfuldebts/loans Ifcompanyhasgivenloantoanyemployeethanchecktheconditionsandstatusofsuchloan. 3. Scrapsales Procedureforselectionofpartye.g.alternativequotations,tendersetc. Whetherscrapclearediscorrecttype&weighedbeforeclearance. Scrapinvoicesraisedareinaccordancewithcontractrates.