ORACLE Applications

Operation Analysis
CASH MANAGEMENT
February, 2009
OPERATION ANALYSIS: CASH MANAGEMENT ISSUED: PAWAN KUMAR SONI PAGE 2
REVISION HISTORY
Date Prepared By Reviewed By Version # Comments
OPERATION ANALYSIS: CASH MANAGEMENT ISSUED: PAWAN KUMAR SONI PAGE 3
Distribution List
Sapphire Project File
OPERATION ANALYSIS: CASH MANAGEMENT ISSUED: PAWAN KUMAR SONI PAGE 4
Eye Television Network Ltd. Acceptance & Approval
Name Position Signature Date
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Table of contents
Objective
Company Introduction
Eye Television Network Limited
Sapphire Consulting Services
ETNL Current System CM
Process Map
Cash Management Procedures
Bank Reconciliation
Payment Reconciliation
Receipt Reconciliation
Inter-Account Transfer Reconciliation
Cash Management Reports N/A
Issues
Excel-based Payments Recon
Excel-based Receipts Recon
Excel-based Inter-Account Transfer Recon
Major Requirements
Ability to track Cash in Transit
Ability to Reconcile Payments/Receipts with Bank Statements
Eliminating Current Issues
Appendix
Bank Statement
OPERATION ANALYSIS: CASH MANAGEMENT ISSUED: PAWAN KUMAR SONI PAGE 6
Objective
This document describes the outcome of the analysis carried out by Sapphire Consulting Services(SCS) to analyze and
comprehend the business process and workflows related to the Cash Management at Eye Television Network Limited
(ETNL).
The rationale behind operation analysis phase is given below:
Understand Reconciliation processes
Document the process flows
Critical issues in the current system
Identify major requirements
The scope of this document is limited to the Reconciliation processes at ETN and broadly comprises of the following:
Entering bank statements in Cash Management
Reconciliation with Ledger
OPERATION ANALYSIS: CASH MANAGEMENT ISSUED: PAWAN KUMAR SONI PAGE 7
This document is based on the current processes as explained by the key users. It is in line with divided into following
components:
Explanation of the sub processes within the Cash Management
Main features of the reconciliation process
Issues related to the reconciliation process
Major requirements by Finance Department.
Where necessary, process flows have been provided for the better understanding.
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Company Introduction
EYE TELEVISION NETWORK LIMITED.
Eye Television Network Limited was incorporated at February 25, 2004 as a public limited company under the Companies Ordinance, 1984. The
company received its certificate of commencement of business form Securities & Exchange Commission of Pakistan on May 21, 2004.
Commercial transmission of the HUM TV started on January 17, 2005. Commercial transmission of the Masala TV started in September 2006 and
recently another channel has been launched under the companys banner i.e. Style 360.
HUMTV being the first channel launched under the companys banner gained tremendous popularity in the very first year and then soon after it
became the no.1 entertainment channel of Pakistan. HUMTV not only managed to increase their viewer ship but, with the quality of programs of
different genre also managed to bring back most of the viewers lost to Indian channels.
Another courageous step taken by the company to launch a non stop 24 hours food channel and yet it proved to be another success story. Being
the first food channel launched by any Asian Television Network it not only gained popularity among Pakistani viewers but also became a
household name in many Asian countries.
In order to further strengthen the channel base of the company and to promote the image of the company as a pure Entertainment Television
Network ETNL has recently launched an international fashion &style channel Style360.
Vision
Inspired by the finest cultural, corporate and creative values to present content which entertains and enriches audiences.
Mission
to enable the origination of outstanding content on subjects of interest and relevance to a range of audiences while using best professional
practices and ensuring long term continuity.
OPERATION ANALYSIS: CASH MANAGEMENT ISSUED: PAWAN KUMAR SONI PAGE 9
Sapphire Consulting Services Pvt. Ltd.
SAPPHIRE CONSULTING SERVICES (PVT.) LTD. SCS is an international systems consulting company providing a broad portfolio of
technology and business solutions to help its worldwide clients improve their business performance. SCS develops turnkey solutions with a faster
time to market and a lower Total Cost of Ownership. The service ranges from building a business case, to assessing application portfolios to
designing and implementing the final solution.
Our areas of specialization include:
Custom Application Development
Business Intelligence (BI) Solutions
Packaged ERP Implementations
Open Platforms and Technologies
Application Management Services
Focused on delivering strategic information technology solutions that address the complex business needs of its clients, SCS provides
applications management, development, integration, enterprise consulting, technology architecture, and a number of related services such as
business process outsourcing thro
ugh a global delivery model. We accomplish this by the following:
Complete project management, planning, design, building and implementation of client specific applications, taking responsibility for
achieving contractually specified results.
Assistance to clients during implementation of information systems and the associated processes of changes.
Providing staff of an agreed level and quality of knowledge and expertise to work on projects on which the client itself is responsible
for project management.
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Current System
The bank reconciliation process starts when the bank statements are received. The reconciliation is performed to get the correct bank /cash
position and to report to the management.
The SCS team has worked very closely with key Finance personnels to conduct and comprehend existing business
processes and flows of cash management.
After receiving the hardcopy of the bank statement the Finance Department starts the reconciliation process. The ledger report of the same date
as of the bank statement is generated from the existing system which shows outstanding checks and receipts. The ending balance of the bank
statement is entered into the existing system i.e. VERTEX, to identify reconciling transactions such as un-presented checks, un-cleared receipts,
bank charges, direct deposits and other charges etc.
The ledger report is analyzed with the bank statement. The check numbers that are on the bank statement are tallied with the check numbers on
the ledger report. Once the whole list is reviewed, the check numbers that have been tallied are marked as recovered in the system. Then the
reconciliation statement is prepared manually on MS Excel. This sheet consists of those items that are on the bank statement and are not in the
ledger for e.g. bank charges and direct deposits etc. These are recorded in the VERTEX.
It is to our understanding and to the best of our knowledge that all the offices and departments are following the same
working procedures; however possibility of additional checks and controls (minor) may exist at each office.
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Bank Reconciliation
Scope
This procedure covers how Bank Reconciliation carried out by Finance Department.
Policy
The reconciliation statement is prepared in Ms Excel after the Finance Department receives statements having account balances from
its banks.
Responsibility
Finance Department has the sole responsibility to maintain the data for Bank Reconciliation.
Distribution
Finance Department
Ownership
The Finance Department is responsible for ensuring this document is necessary, reflects actual practice, and supports corporate
policy.
Activity Preface
This activity is performed once monthly whenever the Bank statement is received by Finance Department..
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Prior Activity
Bank Prepares Statement and send to Finance Department.
Finance Department
1. Finance Department receives Bank Statement.
2. Ledger report for cash/bank is generated from VERTEX.
3. The cheque numbers list maintained on the Excel sheet are tallied with the Bank Statement.
4. The matched cheque numbers, RVs and PVs that has been tallied are marked as recovered in VERTEX.
5. A separate sheet is prepared in MS-Excel which contains those amounts which are on the bank statement and are not present on the ledger
such as bank charges, direct deposits and other charges. These amounts are then entered in the VERTEX.
6. Once the data is entered in VERTEX an adjusted Ledger activity is pulled out which contains items to be reconciled.
7. The bank reconciliation is than prepared in Ms Excel.
End of activity.
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Bank Reconciliation Payments
Scope
This procedure covers how Bank Reconciliation carried out by Finance Department payments.
Policy
The reconciliation statement is prepared in Ms Excel after the Finance Department receives statements having account balances from
its banks.
Responsibility
Finance Department has the sole responsibility to maintain the data for Bank Reconciliation.
Distribution
Finance Department
Ownership
The Finance Department is responsible for ensuring this document is necessary, reflects actual practice, and supports corporate
policy.
Activity Preface
This activity is performed once monthly whenever the Bank statement is received by Finance Department.
OPERATION ANALYSIS: CASH MANAGEMENT ISSUED: PAWAN KUMAR SONI PAGE 14
Prior Activity
Bank Prepares Statement and send to Finance Department.
Finance Department
1. Finance Department receives Bank Statement.
2. Ledger report for cash/bank payments is generated from VERTEX.
3. The cheque numbers list maintained on the Excel sheet are tallied with the Bank Statement.
4. The matched cheque numbers & PVs that has been tallied are marked as recovered in VERTEX.
5. A separate sheet is prepared in MS-Excel which contains those amounts which are on the bank statement and are not present on the ledger
such as bank charges, direct deposits and other charges. These amounts are then entered in the VERTEX.
6. Once the data is entered in VERTEX an adjusted Ledger activity is pulled out which contains items to be reconciled.
7. The bank reconciliation is than prepared in Ms Excel.
End of activity.
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Bank Reconciliation Receipts
Scope
This procedure covers how Bank Reconciliation carried out by Finance Department for Receipts.
Policy
The reconciliation statement is prepared in Ms Excel after the Finance Department receives statements having account balances from
its banks.
Responsibility
Finance Department has the sole responsibility to maintain the data for Bank Reconciliation.
Distribution
Finance Department
Ownership
The Finance Department is responsible for ensuring this document is necessary, reflects actual practice, and supports corporate
policy.
Activity Preface
This activity is performed once monthly whenever the Bank statement is received by Finance Department.
OPERATION ANALYSIS: CASH MANAGEMENT ISSUED: PAWAN KUMAR SONI PAGE 16
Prior Activity
Bank Prepares Statement and send to Finance Department.
Finance Department
1. Finance Department receives Bank Statement.
2. Ledger report for Receipts is generated from VERTEX.
3. The cheque numbers list maintained on the Excel sheet are tallied with the Bank Statement.
4. The matched cheque numbers & RVs that has been tallied are marked as recovered in VERTEX.
5. A separate sheet is prepared in MS-Excel which contains those amounts which are on the bank statement and are not present on the ledger
such as bank charges, direct deposits and other charges. These amounts are then entered in the VERTEX.
6. Once the data is entered in VERTEX an adjusted Ledger activity is pulled out which contains items to be reconciled.
7. The bank reconciliation is than prepared in Ms Excel.
End of activity.
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Inter-Account Transfer Reconciliation
Scope
This procedure covers how Bank Reconciliation carried out by Finance Department for Inter-Account Transfers.
Policy
The reconciliation statement is prepared in Ms Excel after the Finance Department receives statements having account balances from
its banks.
Responsibility
Finance Department has the sole responsibility to maintain the data for Bank Reconciliation.
Distribution
Finance Department
Ownership
The Finance Department is responsible for ensuring this document is necessary, reflects actual practice, and supports corporate
policy.
Activity Preface
This activity is performed once monthly whenever the Bank statement is received by Finance Department.
OPERATION ANALYSIS: CASH MANAGEMENT ISSUED: PAWAN KUMAR SONI PAGE 18
Prior Activity
Bank Prepares Statement and send to Finance Department.
Finance Department
1. Finance Department receives Bank Statement.
2. Ledger report for Receipts is generated from VERTEX.
3. The cheque numbers list maintained on the Excel sheet are tallied with the Bank Statement.
4. The matched that have been tallied are marked as recovered in VERTEX.
5. Once the data is entered in VERTEX an adjusted Ledger activity is pulled out which contains items to be reconciled.
6. The bank reconciliation is than prepared in Ms Excel.
End of activity.