PAAR-ZAIN KWT Process - Manual - v4 2

ZaiN - Kuwait
Revenue Management & Accounts Receivable

Process Manual
Revenue Management & Accounts Receivable - Process Manual (ZAIN Kuwait)
ZainKW_RM&AR PM_V4.2
Contents
Event Catalog................................................................................................ 9
Revenue Management & Accounts Receivables............................................9
Process Listing and Process Descriptions........................................................11
Revenue Management & Accounts Receivables..........................................11
TABS Daily Interface Process.........................................................................14
Prospects..............................................................................................14
Procedure..............................................................................................14
Document Flow......................................................................................14
Work Flow............................................................................................. 15
Postpaid Invoicing Process............................................................................16
Prospects..............................................................................................16
Procedure..............................................................................................16
Document Flow......................................................................................16
Work Flow............................................................................................. 16
Accounting Transactions..........................................................................17
Postpaid Subscribers Deposit Process.............................................................18
Prospects..............................................................................................18
Procedure..............................................................................................18
Document Flow......................................................................................18
Work Flow............................................................................................. 18
Postpaid Subscribers Deposits Refund Process................................................20
Prospects..............................................................................................20
Procedure..............................................................................................20
Document Flow......................................................................................20
Work Flow............................................................................................. 20
Prepaid SIM Cards Sales Revenue Process.....................................................23
Prospects..............................................................................................23
Procedure..............................................................................................23
Document Flow......................................................................................23
Work Flow............................................................................................. 23
Prepaid Recharge Cards Sales Revenue Process.............................................24
Prospects..............................................................................................24
Procedure..............................................................................................24
Document Flow......................................................................................24
Work Flow............................................................................................. 24
Prepaid Revenue Recognition Process............................................................25
Prospects..............................................................................................25
Procedure..............................................................................................25
Document Flow......................................................................................25
Work Flow............................................................................................. 25
Deferred Revenue Reconciliaton Process........................................................27
1. Prospects...........................................................................................27
1.1
Definition of Deferred Revenue......................................................27
1.6
Procedure..................................................................................29
Related Documents and the Specimen format.............................................36
TABS Report ARRECON 1- AR Reconciliation Process....................................39
Prospects..............................................................................................39
Procedure..............................................................................................39
Document Flow......................................................................................39
Work Flow............................................................................................. 39
ZAIN Touch- Service Charges Reconciliation Process......................................41
Prospects..............................................................................................41
Procedure..............................................................................................41
Document Flow......................................................................................41
Work Flow............................................................................................. 41
Kuwait University Registration Fees Process....................................................43
Prospects..............................................................................................43
Procedure..............................................................................................43
Document Flow......................................................................................43
Work Flow............................................................................................. 43
Prepaid Promotion 38.25 Process...................................................................45
Prospects..............................................................................................45
Procedure..............................................................................................45
Document Flow......................................................................................45
Work Flow............................................................................................. 45
Recognize VAS Cost.....................................................................................46
Prospects..............................................................................................46
Procedure..............................................................................................46
Document Flow......................................................................................46
Work Flow............................................................................................. 46
Third Party Revenue Share Settlement Process................................................47
Prospects..............................................................................................47
Procedure..............................................................................................47
Document Flow......................................................................................47
Work Flow............................................................................................. 47
Recognize Current Month Subscriptions Revenue Process.................................49
Prospects..............................................................................................49
Procedure..............................................................................................49
Document Flow......................................................................................49
Work Flow............................................................................................. 49
Legal Agencies Commission Calculation Process..............................................50
Prospects..............................................................................................50
Procedure..............................................................................................50
Document Flow......................................................................................50
Work Flow............................................................................................. 51
Incoming GSM Roamers Revenue Calculation & Invoicing Process.....................52

Prospects..............................................................................................52
Procedure..............................................................................................52
Document Flow......................................................................................52
Work Flow............................................................................................. 52
Outgoing GSM Roamers Revenue Calculation & Invoicing Process.....................54
Prospects..............................................................................................54
Procedure..............................................................................................54
Document Flow......................................................................................54
Work Flow............................................................................................. 54
Incoming and Outgoing Roaming Reconciliation Process....................................56
Prospects..............................................................................................56
Procedure..............................................................................................56
Document Flow......................................................................................56
Work Flow............................................................................................. 56
Outgoing GSM Roamers Cost Process............................................................57
Prospects..............................................................................................57
Procedure..............................................................................................57
Document Flow......................................................................................57
Work Flow............................................................................................. 57
Incoming and Outgoing GSM Roaming Netting Process.....................................58
Prospects..............................................................................................58
Procedure (Payments).............................................................................58
Document Flow......................................................................................58
Work Flow............................................................................................. 58
Netting for Payments...............................................................................59
Payments..............................................................................................59
Procedure (Receipts)...............................................................................59
Work Flow............................................................................................. 60
Netting for Receipts.................................................................................60
Receipts................................................................................................ 61
Interconnect Revenue Calculation, Invoicing, and Cost Process.........................62
Prospects..............................................................................................62
Procedure..............................................................................................62
Document Flow......................................................................................62
Work Flow............................................................................................. 63
Incoming and Outgoing Interconnect Reconciliation Process...............................64
Prospects..............................................................................................64
Procedure (Payments/Receipt).................................................................64
Document Flow......................................................................................64
Work Flow............................................................................................. 64
Netting for Payments...............................................................................65
Payments..............................................................................................65
Netting for Receipts.................................................................................66
Receipts................................................................................................ 66
Product Items Cash Sales Process.................................................................67
Prospects..............................................................................................67
Procedure..............................................................................................67
Document Flow......................................................................................67
Work Flow............................................................................................. 67
MOC Commission Calculation Process............................................................68
Prospects..............................................................................................68
Procedure..............................................................................................68
Document Flow......................................................................................68
Work Flow............................................................................................. 68
Distributors Commission Calculation Process PRC........................................70
Prospects..............................................................................................70
Procedures............................................................................................73
Doubtful Debts Provision Process...................................................................75
Prospects..............................................................................................75
Procedure..............................................................................................75
Document Flow......................................................................................76
Work Flow............................................................................................. 76
AR Write-off Process.....................................................................................78
Prospects..............................................................................................78
Procedure..............................................................................................78
Document Flow......................................................................................78
Work Flow............................................................................................. 79
AR In House Debit Note Process for AR Balances..........................................80
Prospects..............................................................................................80
Procedure..............................................................................................80
Document Flow......................................................................................80
Work Flow............................................................................................. 81
AR Test Charges Delete Process.................................................................82
Prospects..............................................................................................82
Procedure..............................................................................................82
Document Flow......................................................................................82
Work Flow............................................................................................. 83
Sales Returns by the Distributors - Process......................................................84
Prospects..............................................................................................84
Procedure..............................................................................................84
Document Flow......................................................................................84
Work Flow............................................................................................. 85
Distributors Co_Advertisement Expenses Process PRC..................................86
Prospects..............................................................................................86
Procedure..............................................................................................86
Document Flow......................................................................................86
Work Flow............................................................................................. 87
AR Waiver Process.......................................................................................88
Prospects..............................................................................................88
Procedure..............................................................................................88
Document Flow......................................................................................88
Work Flow............................................................................................. 88
Migration from Prepaid to Postpaid Process.....................................................90
Prospects..............................................................................................90
Procedure..............................................................................................90
Document Flow......................................................................................90
Work Flow............................................................................................. 90
AR Transfer to GL Process............................................................................91
Prospects..............................................................................................91
Procedure..............................................................................................91
Document Flow......................................................................................91
Work Flow............................................................................................. 91
Close / Open AR Period Process....................................................................93
ote:
Prospects..............................................................................................93
Procedure..............................................................................................93
Document Flow......................................................................................93
Work Flow............................................................................................. 93
Enter a description of the relationships between the various processes.
Event Catalog
An example of an event is a customer order. In responding to the customer order the business executes a process. Fill out the following
information for each event that is identified:
Event ID: Give each event a unique identification.
Name: Name each event as clearly as possible.
Type: Events may be external, internal or temporal (for example, occur at a predetermined time).
Description: Briefly describe the event.
Frequency: Indicate frequency; for example, 10/hour, 1/week, or monthly.
The events here may be the same ones identified earlier during the Current Process Model (BP.040). If so, use the event catalog developed
there. There may be new events that will need to be responded to based on future business strategies, or there may be new internal events
that trigger a process to respond.
Revenue Management & Accounts Receivables

Name
Type
Completion of Billing Process

Postpaid Air Time Consumption
Temporal
Temporal
Postpaid Subscriber requests a service that

requires Deposit
Postpaid Subscriber requests Terminating the
service and Deposit Refund
Distributors / Prepaid Subscribers order for
Prepaid SIM Cards
Distributors / prepaid subscribers order for
prepaid Recharge Cards
Temporal
Prepaid Air Time Consumption
Temporal
Deactivate Prepaid SIM Cards
Internal
Recognize the Recharge Cards that have

Promotion with38.25 KD
Settle the Revenue Share for Third Parties
Internal
Defer Postpaid Pager / GSM Subscription Fees

Revenue for Current Month
Internal
Temporal
Temporal
Temporal
Internal
Description
Frequency
At the end of the billing completion process, the billing data should be imported into Oracle AR.
Every 4 hrs there is a process run which calculate the air time consumed by the postpaid subscribers from the switches
into Tabs system, the air time amount is recorded in Tabs system as Unbilled amount, at the end of the month the billing
process run into Tabs system to transfer unbilled amounts to billed amounts in order to issue subscribers invoices with the
air time consumed.
When the postpaid subscriber requires one or all of the roaming, GSM, international service or LANA services, the
subscriber should pay a service deposit in order to activate the required services.
Postpaid subscriber requests terminating the service and the service deposit refund after settling the subscriber postpaid
past due invoices.
The distributors / prepaid subscribers place an order to buy prepaid SIM cards, the sales is done in cash and from ZAIN
outlets.
The distributors / prepaid subscribers place an order to buy prepaid recharge cards, the sales is done in cash and from
ZAIN outlets. The recharge card contains a specific number of air time in minutes based on its value, the sales revenue is
considered as deferred revenue at the time of the sales.
When the prepaid subscribers consume their air time by using the recharge cards and prepaid SIM cards which has initial
credit, the revenue is recognized as soon as the consumption is done and for the consumption value only.
When a decision taken to deactivate a prepaid SIM card with a credit balance, the credit balance which previously
recorded as deferred revenue should be recognized as a deactivate credit..
When recognizing the recharge cards that have an 8.25 KD promotion, an entry take place to record the promotion as
discount and as deferred revenue.
When decided to pay the VAS revenue share for the SP, the invoice should be created in AP to transfer the accrued
expenses to the SP AP liability account, then the payment can be done from the AP.
At the end of every month, recording the subscription fees as deferred revenue for the Pager and GSM services, which are
paid in the current month but it, belong to the next months.
Monthly
Monthly
Ad Hoc
Ad Hoc
Ad Hoc
Ad Hoc
Ad Hoc
Ad Hoc
Monthly
Monthly
Monthly
Name
Type
Description
Frequency
End of Month Closing, Recognize Postpaid

Pager / GSM Subscription Revenue for Previous
Month
End of Month Closing, Recording Unbilled AR for
Postpaid Subscribers
End of Month Closing, Reversing Accrued
Revenue Entry for Previous Month
End of Month Closing, Calculate and Record
Legal Agencies Commission
End of Month Closing, Calculate and Record the
Monthly Doubtful Debits Provision
Incoming GSM Roamers Air Time Consumption
Internal
At the end of every month, reversing the deferred revenue entry for the previous month as it is recognized in this current
month
Monthly
Internal
At the end of every month, for the transactions that unbilled during the monthly billing process, the revenue should be
recorded against accrued revenue.
At the end of every month, reversing the accrued revenue entry for the previous month as it is billed to the postpaid
subscribers in this current month.
At the end of every month, calculating and recording the legal agencies commission for their debits collections in behalf of
ZAIN.
At the end of every month, calculating and recording the doubtful debits provision for the doubtful debits.
Monthly
Monthly
Receiving Outgoing ZAIN Subscribers Roaming

Import Tap File
Netting Process for Incoming and Outgoing
GSM Roaming Invoices
End of Month Closing, Roaming Import Files
Reconciliation
Payment is Due to the Operator
External
Customer Request to Buy Product Item

End of Month Closing, Calculate Distributors
Commission
End of Month Closing, Calculate MOC
Commission
End of Month Closing, AR Write-off
External
Internal
At the end of every month, calculate and record the air time and the ZAIN network usage for other overseas operators
subscribers during their visit to Kuwait
At the end of every month, invoicing ZAIN subscribers with the air time and operators network usage during ZAIN
subscribers traveling outside Kuwait.
At the time of payment or receipt, the operator debit balance (Receivables) netted with the operator credit balance
(Payables),
At the end of every month, reconcile the Tap in files with the Import Invoice Charges Summary sent by e-mail from EDCH
on monthly basis.
When the payment is due to the operator, settling the operator net credit / debit balance which result from the netting
process.
The cash sales for selling mobiles hand sets, mobile accessories and so on as cash to customers.
At the end of every month, calculate and record distributors commission.
Internal
At the end of every month, calculate and record MOC commission.
Monthly
Internal
Monthly
Subscriber Request to Migrate from Prepaid to

Postpaid
End of Month Closing
External
Write-off the receivable balances for the postpaid subscribers that have debit balances and they get an approval to writeoff their debit balance.
When prepaid subscribers request migrating service, to migrate from the prepaid subscription to the postpaid subscription.
The subscriber prepaid credit balance is transfer to the postpaid subscriber credit balance.
End of Month closing
Internal
Internal
Internal
Temporal
Internal
Internal
Temporal
Temporal
Monthly
Monthly
Monthly
Monthly
Ad Hoc
Monthly
Monthly
Ad Hoc
Monthly
Ad Hoc
Monthly
10
Process Listing and Process Descriptions

ote:
Enter a description for each of the processes within this business function.
Revenue Management & Accounts Receivables

Process Title
TABS Daily Interface Process
Postpaid Invoicing Process

Postpaid Subscribers Deposit Process
Postpaid Subscribers Deposits Refund Process
Prepaid SIM Cards Sales Revenue Process

Prepaid Recharge Cards Sales Revenue
Process
Prepaid Revenue Recognition Process
Deferred Revenue Reconciliaton Process
TABS Report ARRECON 1- AR Reconciliaton

Process
ZAIN Touch- Service Charges Reconciliaton
Process
Description of Process
The process shows the steps that will be taken to daily import Tabs (Postpaid) and IN (Prepaid) billing data into Oracle AR through intermediate
interface tables, import data from intermediate interface table into Oracle autoinvoice tables, and then import the billing data from the AR
autoinvoice tables into Oracle AR production tables, during this import process, autoinvoice process will validate all the imported data before insert
it into AR production tables to make sure that all the required data for the imported transactions are passed correctly and not violating the business
rules that already setup in Oracle AR, the autoinvoice validation result can be viewed through viewing the autoinvoice validation report which is
reporting the lines that fails during the validation process associated with a meaningful message, also the successful imported lines can be viewed
through viewing the autoinvoice execution report, these reports can be used to reconcile the imported data in AR with Tabs and IN reports to make
sure that all the billing data is included in the interface text file.
Postpaid invoicing process is the process of invoicing the ZAIN postpaid subscribers for their daily air time that consumed during the day period,
their services and their GSM subscriptions (monthly, annually), the subscriptions that belong to more than one month will be recorded as unearned
revenue until run the revenue schedule process at the end of every month to earn the current month revenue.
Postpaid Subscribers Deposits Process is the process of receiving a deposit from ZAIN subscribers for activates a certain service that requires a
deposit, like GSM or LANA services.
The deposit refund process is the process of refund the service deposit to the postpaid subscriber based on his request to terminate the service
previously requested. The process also includes applying the deposit amount to the postpaid subscriber open receivable invoices (Past due
invoices), if any, the remaining deposit amount after the applying refunded to the postpaid subscriber in cash or check based on the subscriber
category.
The prepaid SIM cards sales revenue process is the process of selling prepaid SIM cards to ZAIN distributors / Subscribers, the sales is done in
cash and from ZAIN sales outlets.
The prepaid recharge cards sales revenue process is the process of selling prepaid recharge cards to ZAIN distributors / Subscribers, the sales is
done in cash and from ZAIN sales outlets. The sales revenue is considered as deferred revenue at the time of the sales, the revenue will be
recognized as soon as the subscribers consume their recharge card air time and for the consumption value only.
The prepaid revenue recognition process is the process of recognizing the deferred revenue as revenue; the revenue recognition is recognized
only for the air time that consumed by the prepaid subscribers through using their purchased recharge cards and prepaid SIM cards which has
initial credit. Unlike postpaid, the prepaid air time is calculated at the time of the usage and tracked in IN system
The process shows the steps that will be taken to reconcile the DRB. The DRB is (Prepaid liability account) represents the customers credit
balance (CCB) and PRPNU. All the CCB detailed information's report can be obtained from the IN system. however, and in order to know the
PRPNU balances; from the total activated recharge cards available in the VOMS should be subtracted by the activated recharge card available in
the warehouse (PRPW) at any given point of time. Generally VOMS dump report in the end of the month that provided by the IT. This dump
information provides with the total status of recharge cards available in the VOMS System. the following is a chart of Voucher Life Cycle In VOMS
System:
The process shows the steps that will be taken to reconcile the post paid and prepaid distributors AR balances with the revenue with recognition
imported information in AR with the TABS Billings comparing with TTSE information in AR with the Oracle system
The process shows the steps that will be taken to reconcile the ZAIN Touch subscribers service charges for the revenue sharing between ZAIN
TOUCH AND ZAIN Kuwait, and the monthly ZAIN Touch cliam for their receivable balances with ZAIN books which is recorded through the
recognition of service revenue imported information in AR with the TABS Billings information in AR with the Oracle system against their cost
bookings.
11
Process Title
Kuwait University Registration Fees Process
Prepaid Promotion 38.25 Process
Recognize VAS Cost
Third Party Revenue Share Settlement
Process
Recognize Current Month Subscriptions
Revenue Process
Legal Agencies Commission Calculation
Process
Incoming GSM Roamers Revenue Calculation
& Invoicing Process
Outgoing GSM Roamers Revenue Calculation
& Invoicing Process
Incoming and Outgoing Roaming
Reconciliation Process
Outgoing GSM Roamers Cost Process
Incoming and Outgoing GSM Roaming Netting
Process
Product Items Cash Sales Process
MOC Commission Calculation Process
Distributors Commission Calculation Process

2% on RC
Distributors Commission Calculation Process
PRC
The process shows the steps that will be taken to reconcile the ZAIN subscribers service charges related with the Kuwait University Students
Registration Fees on line paid through ZAIN Kuwait, and the Kuwait University cliam for their receivable balances with ZAIN books which is
recorded through the recognition of service revenue imported information in AR with the TABS Billings information in AR with the Oracle system.
Prepaid Promotion 38.25 Process is the process of recognizing the recharge cards that have an 8.25 KD promotion, an entry take place to record
the promotion as discount and as deferred revenue.
Based on the revenue recognition process and the postpaid air time invoicing process the VAS cost for DIG DIAL and SMS/MMS should be
recognized and recorded.
The process shows the steps that will be taken to of pay the revenue share to the third party; this process involves AR dept. for revenue share
calculations and AP invoicing, Marketing Dept. for third party communication and invoice approval and AP dept. for payments.
The process shows the steps that will be taken to recognize current month subscriptions revenue for Pager and GSM subscription fees that
previously unearned.
The process shows the steps that will be taken to calculate and record the legal agencies commission. The legal agencies commission calculation
process purpose is to calculate and record the legal agencies commission for the collected debits from ZAIN subscribers.
The process shows the steps to invoice the other operators for the air time and the ZAIN network usage during their subscriber's visit to Kuwait.
Based on the agreement with the operator ZAIN invoice the operator with the total roaming amount that calculated in Price Maker system by
operator, which is interfaced to TABS system each operator has its own code in Tabs system.
The process shows the steps to invoice our subscribers for the usage of the other operator network during his visit to abroad. Based on the TAP
files received from the other operator, the CDRs are re-rated according to the new zonal pricing tarrif and charge our subscriber in his contract in
TABS system which is interfaced to Oracle AR every day.
The process shows the steps that will be taken to reconcile the incoming and outgoing roaming transaction imported into Oracle AR with the
EDCH Taps in / out files report, to make sure that all the Taps in files belong to the current month are invoiced to ZAIN subscribers, all the Taps out
files belong to the current month are invoiced to the GSM roaming operators, and report on the missing Taps in / out files.
The process shows the steps that will be taken to record the outgoing GSM roamers cost for the air time and other operators network usage
during ZAIN subscribers traveling outside Kuwait. The cost will not include ZAIN Zonal Pricing.
The process shows the steps that will be taken to netting the incoming and outgoing roaming transactions. The operator debit balance
(Receivables) netted with the operator credit balance (Payables), either the netting amount is payable to the operator, if the operator credit
balance is greater than the debit balance or collecting the netting amount from the operator if the operator debit balance is greater than his credit
balance.
The cash sales revenue process is the sales process for selling mobiles hand sets, mobile accessories and so on as cash to customers.
The process shows the steps that will be taken to record the MOC commission. The MOC commission calculation is calculating MOC commission
on the GSM overseas call charges, GSM Incoming Roamer Overseas Calls and Forwarding feature. Tabs system has the price list for international
calls to different destinations according to MOC charges, Tabs system calculate the international calls charges based on MOC charges + 10% as
ZAIN share. MOC is stand for Ministry of Communications.
The process shows the steps that will be taken to calculate and record the distributors commission on RC Cards. The distributors commission
calculation process purpose is to calculate and record the distributors commission for the Prepaid RC card sales which done through the
distributor Tabs terminal.
The process shows the steps that will be taken to calculate and record the distributors commission and the issuance of PRC (Product rather than
Cash) to the Distributors against their monthly commission.
The PRC scheme is used to replace the existing cash outflow of the company by increasing the sales turnover. The distributors commission PRC
calculation process purpose is to calculate and record the distributors commission for the:
On line sales for postpaid subscribers, which done through the distributor Tabs terminal.
Postpaid invoices collection, which done through the distributor Tabs terminal.
Prepaid SIM card sales discount (1.5%) that given to the distributors based on the prepaid subscriber first call.
For other package Sales, which done through the distributor Tabs terminal.
12
Process Title
Doubtful Debts Provision Process
AR Write-off Process
AR In House Debit Note Process for AR
Balances
AR Test Charges Delete Process
Sales Returns by the Distributors - Process
Distributors Co_Advertisement Expenses

Process PRC
AR Waiver Process
Migration from Prepaid to Postpaid Process
AR Transfer to GL Process
Close / Open AR Period Process
The process shows the steps that will be taken to calculate and record the monthly doubtful debts provision and match it with GL, the doubtful
debts provision calculations is based on when ZAIN deliver the collection batches to the legal agencies for collection.
The provision is an estimation of uncollectible debts by the company which is to be provided in the income statement. ZAIN assume provision as
60% of the batch value for B batch upto 4 months and 100% for all the remaining batches.
ZAIN deliver the collection batches to the Collection Agencies for their follow up with customers to collect bad debt in a predefined time period.
Once the agreed term of the collection period is over, then collection Agencies should return the collection batches to ZAIN.
On receipt of the collection batches from the Collection Agencies, ZAIN will terms the batches' as Legal Batches /Cases and assume 100%
provision on total legal batches amounts and forward for the debt batches to the Legal Agencies for their necessary action to recover from the
customers who turned totally as bad debts to ZAIN.
The process shows the steps that will be taken to write-off the receivable balances for the postpaid subscribers that have debit balances and they
get an approval to write-off their debit balance.
The process shows the steps that will be taken on every month to delete / remove the receivable balances in the in-house category contracts /
subscriptions by the Revenue Accountant. Generally all the in-house category receivable balances are moved to their respective intercompany
account in the General Ledger by removing from tabs and creating a Debit Note for the same value.
The process shows the steps that will be taken to delete / remove the receivable balances on the Test Lines by the Revenue Accountant.
Normally all the test charges are carried out under ZN1 category under the receivables; exceptional cases are noted for the BSIM Team whereby
many categories used as per the business rule.
Generally BSIM and Marketing Department will carry out the monthly testing of the charges on the services on live system. All the test charges will
create a same impact as of the normal billing process in TABS. Hence the Test contract/subscriptions carryout the test receivable amounts which
inflate the revenue due to the billing/charging process. Due to this reason the inflated revenue required to reverse in the same month to nullify its
effects on revenue and receivable balances.
The process shows the steps that will be taken to record the distributors sales return items to ZAIN which was earlier charged to them through the
sales invoice.
The sales team should intimate the AR with proper approved document by providing the valid documents to support the items earlier sold to the
Distributor is return to ZAIN
Inventory team should support the sales return transaction by the STKR for receiving such items back in their inventory as a sales return from the
respective distributors.
The process shows the steps that will be taken to calculate and record the distributors co ad expenses and the issuance of PRC (Product rather
than Cash) to the Distributors against their agreed share of reimbursement of Co Ad expenses.
The PRC scheme is used to replace the existing cash outflow of the company by increasing the sales turnover. The distributors Co Ad PRC
calculation process purpose is to calculate and record the distributors Co Ad for the:
Advertisement expenses incurred by the distributors during the calendar period as per the agreed terms with Zain
The process shows the steps that will be taken to waive the receivable balances for the postpaid subscribers that have debit balances and they
get an approval to waive their debit balance.
The process shows the steps that will be taken to record the migration from prepaid to postpaid process.
The process shows the steps that will be taken to transfer the AR accounting entries to General Ledger Module. In order to integrates the
Receivables with the General Ledger you have to transfer the Receivables transactions to General Ledger to reflect its effects to the General
Ledger Accounts and Financial Statements.
The process shows the steps that will be taken to close the current receivable accounting period and open the next accounting period.
13
TABS Daily Interface Process

Prospects
The process shows the steps that will be taken to daily import Tabs (Postpaid) and IN (Prepaid) billing data into Oracle AR through intermediate interface tables,
import data from intermediate interface table into Oracle autoinvoice tables, and then import the billing data from the AR autoinvoice tables into Oracle AR production
tables, during this import process, autoinvoice process will validate all the imported data before insert it into AR production tables to make sure that all the required
data for the imported transactions are passed correctly and not violating the business rules that already setup in Oracle AR, the autoinvoice validation result can be
viewed through viewing the autoinvoice validation report which is reporting the lines that fails during the validation process associated with a meaningful message,
also the successful imported lines can be viewed through viewing the autoinvoice execution report, these reports can be used to reconcile the imported data in AR
with Tabs and IN reports to make sure that all the billing data is included in the interface text file.
Procedure
1- The interface billing file should be generated daily by IT dept. for the data belong to previous day for postpaid & a gap of 2 days for prepaid and saved in the
predefined specific path.
2- The IT Dept. should update the postpaid data on daily basis under IVM bicharge table every day by 8.00 am related to previus day data and prepaid interface
table to be updated at 11.00 am on daily basis for data prior to two days.
3- AR accountant should schedule Postpaid Airtime (AGGREGATED Revenue) Request Set at 9.00 am on daily basis
4- AR accountant should submit 4 set requests to import the data on daily basis after 11.00 am. i.e: Adjustment & Migration, On A/c Sales, Postpaid NonAggragated & Prepaid Revenue Regnisation.
5- The AR accountant should review Tabs interface request log file to report any errors system admin AR.
6- The AR accountant should review the autoinvoice validation report for any validations errors.
7- The AR accountant should notify the System Admin formally about any corrections that might be performed in the autoinvoice lines data before performing the
corrections.
8- The AR accountant should re-run the autoinvoice master program after the corrections has been done.
9- The AR accountant should review the autoinvoice execution report for the successful imported transactions.
10- The AR accountant should run AR TABS audit process before executing the postpaid audit report.
11- Upon completion of AR TABS audit process AR accountant should run the TABS & AR audit report.
12- The AR accountant RUNS the Audit report for Prepaid Transactions.
13- Run IVM bicharge report (MAEBCDAMT), prepaid revenue report (MKSARSUMM02), sales report (MPREP003), Audit report for postpaid (TABS & AR Audit
report) & audit report for prepaid data and make sure that, no descrpancies.
14- For descrepancies found if any to be reported to system admin for the corrective action.
15- Pass manaual invoice in AR for any descrepancies in the end of the month to match the data between TABS & AR
Document Flow
1- IT Department
14
2- AR System Admin
3- AR Accountant
4- Revenue & AR manager
Work Flow
ID
Performer (Work Title)
Action
Automation
Description
1.
IT Department
Generate the Daily Interface Text File
Automated
2.
IT Department
Manual
3.
AR Accountant
Save the Interface File in the Predefined

Path
Run the Tabs Interface Request
4.
AR Accountant
Review Tabs Interface Request Log File
5.
AR Accountant
Run Autoinvoice Master Program
6.
AR Accountant
Review Autoinvoice Validation Report
7.
AR Accountant
Notify System Admin.
Manual
8.
AR Accountant
Correct Autoinvoice Errors
9.
AR Accountant
Re-Run Autoinvoice Master Program
10.
AR Accountant
Review and Print Autoinvoice Execution

Report
SystemAssisted
SystemAssisted
SystemAssisted
11.
12.
AR Accountant
AR Accountant
File the Reconciliation Reports and Logs

Run IVM bicharge report
At the beginning of every day before 8 am, IT dept. is required to generate the interface text
file for the previous day data.
After the interface file is successfully generated, the interface text file should be saved in the
predefined specific path.
The AR accountant should run the Tabs interface request in order to load the interface text file
data into the AR intermediate interface table, then into Oracle AR autoinvoice tables.
The AR accountant should review Tabs interface request logs for errors. If there is any error in
Import data request from Tabs, the AR Accountant should report the error log to the System
Admin AR for the necessary actions.
The AR accountant should run the AR autoinvoice master program in order to load the
imported data into the AR production tables.
The AR accountant should review the autoinvoice validation report for errors, autoinvoice
display the error message in a descriptive and meaningful way, if there is any error the next
step will be performed.
The AR accountant should formally notify the System Admin with the errors and the correction
needs to be performed, the notification should be documented and approved before
performing the autoinvoice corrections.
The AR accountant uses the autoinvoice validation report and the interface exceptions window
in Oracle AR to correct the invalid lines in autoinvoice table.
The AR accountant should re-run the AR autoinvoice master program in order to load the
imported data into the AR production tables after the corrections take place.
The AR accountant should review and print the autoinvoice execution report for reviewing the
summary information on how many revenue and credit transactions are selected, accepted or
rejected, total invoice amount for each transaction type for all transactions processed and
number of processed records.
The AR accountant should file the reconciliation reports and the log files for future auditing.
AR accountant should print the IVM bi-charge report
13.
AR Accountant
Print Audit report
SystemAssisted
SystemAssisted
SystemAssisted
SystemAssisted
Manual
SystemAssisted
SystemAssisted
Print Audit report for postpaid & prepaid
15
Postpaid Invoicing Process

Prospects
The process shows the steps that will be taken to reconcile the postpaid imported information in AR with TABS data.
Procedure
1- The AR accountant should print IVM bicharge report, Sales report, TTSE report, Postpaid Audit report to reconcile between theTABS data by service code
are imported into Oracle AR.
2- The AR accountant should reconcile manually for major figures between Audit report from Oracle AR and TABS report-IVM bi charge, sales report, for
revenue amounts to make sure that, all the revenue amounts are coorect.
3- If there is a discrepancy in the reconciliation, AR accountant should notify the System Admin AR with the discrepancy and initiate for the Process TABS
Daily Interface Process for non imported transactions.
4- The AR accountant should file all the reconciliation reports for future auditing.
5- Notify the descrepancies to the system admin & IT.
6- Pass a manual invoice to correct the descrpancies
Document Flow
1234-
AR Accountant
AR System Admin
Revenue & AR manager
IT dept
Work Flow
ID
Action
Automation
Description
1.
AR Accountant
Print Audit Report-Postpaid
System-Assisted
2.
AR Accountant
Print IVM bicharge Report
System-Assisted
3.
AR Accountant
Reconcile Revenue by Service Code
Manual
4.
AR Accountant
System-Assisted
5.
AR Accountant
Run Revenue Recognation Master

Program
Review Revenue accounting for
Recognation of A. subscriptions
After the TABS daily interface process is completed successfully for postpaid transactions, AR
accountant prints from AR system the Audit reports listed by service codes.
After the TABS daily interface process is completed succesfully, AR accountant prints from
Oracle AR the IVM bicharge report for postpaid transaction type.
After the TABS daily interface process is completed succesfully, AR accountant reconcile
between revenue amounts by service code in IVM bicharge report printed from TABS and Audit
report report printed from Oracle AR.
The AR accountant should run the revenue recognition master program to unearn the revenue
for the subscriptions that belong to more than one month.
Qurey the A. subscription invoices throrgh revenue accounting and schedule the revenue
accordingly.
System-Assisted
16
Accounting Transactions
Postpaid Invoice Entry:
Dr. AR Postpaid
Cr. Revenue Local Calls
Cr. Revenue Int Calls
Cr. Revenue SMS
Cr. Revenue Roaming Postpaid
Cr. Revenue DIG-DIAL
Cr. Revenue SMS/MMS
Cr. Revenue Monthly Pager Subscriptions
Cr. Revenue Monthly GSM Subscriptions
Unearned Revenue Entry:
Dr. AR Postpaid
Cr. Unearned Revenue Annual Pager Subscriptions
Cr. Unearned Revenue Annual GSM Subscriptions
17
Postpaid Subscribers Deposit Process

Prospects
The process shows the steps that will be taken to receive deposits from postpaid subscribers against requested service like, GSM and LANA service.
Procedure
1- The counter staff should create Tabs CR (Deposit Payment) for the service deposit.
2- The finance cashier at the beginning of every day should run the Import Receipt program to import deposit receipts information from Tabs into Oracle AR.
3- At the beginning of every day, the AR accountant should print the Misc. Receipt Register report from Oracle AR and print the deposits reports from Tabs
system for deposits reconciliation.
4- The AR accountant should print the journal entries report to make sure that all the deposits are accounted by deposit category.
5- The AR accountant should present reconciliation reports to the AR Manager and should obtain the approval
Document Flow
1- Counter Staff
2- Finance Cashier
3- AR Accountant
Work Flow
ID
Action
Automation
Description
1.
2.
Counter Staff
Finance Cashier
Create Deposit Receipt

Run Import Receipt Program
System-Assisted
System-Assisted
3.
4.
AR System
AR Accountant
Create Misc Receipt

Print Misc. Receipts Register Report
Automated
System-Assisted
5.
AR Accountant
Print Deposit Reports
System-Assisted
6.
AR Accountant
Reconcile Deposit Transactions
Manual
7.
AR Accountant
Print Journal Entries Reports
System-Assisted
8.
AR Accountant
Reconciliataion sheet to be prepared
Manual
9.
AR Accountant
File the Reconciliation Reports
Manual
The counter staff create a deposit receipt (CR) on Tabs system

At the beginning of every day, finance cashier run import receipt program to import deposit
receipt data from Tabs system into Oracle AR.
The import process will create a deposit Misc. receipt in Oracle AR.
At the beginning of every day, The AR Accountant prints the Misc receipt register report for
the previous day data; it shows the total deposit amount for different deposit accounts.
At the beginning of every day AR accountant prints International Roaming Deposits by bill
code report from Tabs system.
At the end of the month, AR accountant reconcile the Misc. Receipts Register Report printed
from Oracle AR with Deposit reports printed from Tabs system.
The AR Accountant prints the Journal entries reports to make sure that all the deposit
amounts are accounted.
The AR accountant should prepare Monthly reconciliation for the Deposit Account and
should obtain AR Manager approval on reports.
The AR accountant should file the reconciliation reports for future auditing.
18
Dr. Cash @ Deposit Amount
Cr. Deposit from Customers by Deposit Category @ Deposit amount
19
Postpaid Subscribers Deposits Refund Process

Prospects
The process shows the steps that will be taken to refund the deposits to the postpaid subscribers based on their requests to terminating the services.
Procedure
1- The counter staff should create Tabs CR for the refund deposit.
2- The finance cashier at the end of every shift should run the Import Receipt program to import deposit refund receipts information into Oracle AR.
3- The finance cashier at the end of every shift should print the Misc. Receipt Register report for deposits refund from Oracle AR and match it to the deposits
refund receipts in Tabs system.
4- At the end of every day, the AR accountant should print the Misc. Receipt Register report from Oracle AR; print the deposits refund reports from Tabs system
and print transaction register report for credit memos for deposits reconciliation.
5- The AR accountant should daily query the created credit memos and apply them to the most past due invoices by postpaid subscribers category.
6- The AR accountant should print the journal entries report to make sure that all the deposits refund are accounted.
7- The AR accountant should present reconciliation reports to the AR Manager and should obtain the approval
Document Flow
1- Counter Staff
2- Finance Cashier
3- AR Accountant
Work Flow
ID
Action
Automation
Description
1.
Counter Staff
Settle the Past Due Invoices
System-Assisted
2.
3.
Counter Staff
Finance Cashier
Create Refund Deposit Receipt

Run Import Receipt Program
System-Assisted
System-Assisted
4.
5.
AR System
AR System
Create Misc Receipt

Create Credit Memos
Automated
Automated
6.
Finance Cashier
System-Assisted
The counter staff settles the deposit amount in the postpaid subscriber open receivable
invoices (Past Due invoices) first.
The counter staff create a refund deposit receipt (CR) on Tabs system
At the end of the shift, finance cashier run import receipt program to import refund receipt data
from Tabs system into Oracle AR.
The import process will create a refund deposit Misc. receipt in Oracle AR.
The import process will create a credit memo with the amount that settled against the
subscribers past due invoices in Oracle AR.
At the end of every shift, The AR Accountant prints the Misc receipt register report by date and
user; it shows the total deposit refund amount for different deposit accounts (Category).
20
ID
Action
Automation
Description
7.
Finance Cashier
Match the Refund Deposits Receipts
Manual
8.
AR Accountant
System-Assisted
9.
AR Accountant
Print Transaction Register Report
System-Assisted
10.
AR Accountant
Print Deposit Refund Reports
System-Assisted
11.
AR Accountant
Reconcile the Credit Memos Amounts
Manual
12.
AR Accountant
Query the Daily Credit Memos
System-Assisted
13.
AR Accountant
System-Assisted
14.
AR Accountant
Apply Credit Memos to Past Due

Invoices
15.
AR Accountant
Print Deposit Refund Reports
System-Assisted
16.
AR Accountant
Reconcile Deposit Transactions
Manual
17.
AR Accountant
System-Assisted
18.
AR Accountant
Manual
19.
AR Accountant
Manual
At the end of every shift, finance cashier should match the deposit refund receipt created on
Tabs with the deposits refund receipts created as a Misc receipts in Oracle AR for each user
per date.
At the end of the day, The AR Accountant prints the Misc receipt register report for the day; it
shows the total deposit refund amount for different deposit accounts.
At the end of the day, The AR Accountant prints the transaction register report for the day; it
shows the total credit memos created for the settlement amount against the past due invoices
per customer category.
At the end of every day, AR accountant should print the deposit refund reports from Tabs
system.
At the end of every day, AR accountant should reconcile between the Misc. receipt register
report, transaction register report and deposit refund reports from Tabs, the credit memos
amounts from transaction register should = total deposit refunds from Tabs total deposit
refunds from Misc receipt register.
At the end of every day, AR accountant should query the daily created credit memos for the
deposit settlement against the subscribers past due invoices.
At the end of every day, AR accountant should apply the created credit memos for the deposits
to the most past due open invoices per subscribers category.
At the end of the month, The AR Accountant prints the Misc receipt register report for the month
period; it shows the total deposit refund amount for different deposit accounts.
At the end of the month, AR accountant prints Deposit Refund by bill code from Tabs system,
TTSE report by bill code that shows deposit refund by bill code and DPRE-R report by deposit
refund category.
At the end of the month, AR accountant reconcile the Misc. Receipts Register Report printed
from Oracle AR with Deposit refund reports printed from Tabs system.
The AR Accountant prints the Journal entries reports to make sure that all the deposit refund
amounts are accounted.
The AR accountant should prepare Monthly reconciliation for the Deposit Account and should
obtain AR Manager approval on reports.
System-Assisted
Deposit Refund Receipt Entry:
Create Misc Receipt for the Cash Refund Amount
Dr. Deposits from Customers by Deposit Category
Cr. Cash
Create Credit Memo for the Deposit settled against Past Due Invoices
Dr. Deposits from Customers by Deposit Category
21
Cr. AR Subscribers (CM)

Apply the Credit Memo to the Past Due Invoices
Dr. AR Subscribers (CM)
Cr. AR Subscribers (INV)
22
Prepaid SIM Cards Sales Revenue Process

Prospects
The process shows the steps that will be taken to reconcile the prepaid SIM Cards sales revenue for subscribers and distributors imported information in AR with the
Tabs Billing System.
Procedure
1- The AR accountant should reconcile between the audit report from Oracle AR and the SIM Cards Sales reports to make sure that, all the revenue amounts
by bill code are imported into Oracle AR.
2- If there is a discrepancy in the reconciliation, AR accountant should notify the Oracle system administrator. with the discrepancy and followup for the
correction of the discrepancy.
Document Flow
1- AR Accountant
Work Flow
ID
Performer (Work
Title)
Action
Automation
Description
1.
AR Accountant
Print SIM Cards Sales reports
2.
AR Accountant
Reconcile Revenue by Bill Code
SystemAssisted
Manual
3.
AR Accountant
Manual
After the TABS daily interface process is completed succesfully, AR accountant prints from Tabs system the SIM
Cards Sales reports.
After the TABS daily interface process is completed succesfully, AR accountant reconcile between revenue
amounts in SIM Cards Sales reports printed from TABS and revenue by billcode/audit report report printed from
Oracle AR.If any discrepancy is found inform Oracle Administrator.
Prepaid SIM Cards Invoice Entry:
Dr. Prepaid AR / Distributor AR
Dr. Discount (for Distributors Invoices only)
Cr. Revenue (prepaid has a GL code combination based on Business & Service Segments)
23
Prepaid Recharge Cards Sales Revenue Process

Prospects
The process shows the steps that will be taken to reconcile the prepaid Recharge Cards sales revenue for subscribers and distributors imported information in AR
with the Tabs Billing System.
Procedure
1- The AR accountant should reconcile between the revenue by bill code/Audit report from Oracle AR and the Recharge cards Sales reports listed by card type
to make sure that, all the revenue/discount amounts by bill code are imported and accounted into Oracle AR.
2- If there is a discrepancy in the reconciliation, AR accountant should notify the Oracle system administrator with the discrepancy and followup for the
correction of the discrepancy.
Document Flow
1- AR Accountant
Work Flow
ID
Action
Automation
Description
1.
AR Accountant
Print Recharge Cards Sales from TABS &

Revenue by billcode from Oracle AR
SystemAssisted
2.
AR Accountant
Manual
3.
AR Accountant
Manual
After the TABS daily interface process is completed succesfully, AR accountant prints from Tabs
system the Recharge cards Sales reports listed by card type and reconcile the
revenue/discounts
between revenue amounts in Recharge cards Sales reports listed by card type printed from
TABS and revenue by bill code report printed from Oracle AR.
Prepaid Recharge Cards Invoice Entry:
Dr. Prepaid AR / Distributor AR
Dr. Discount (3.5% for Distributors Invoices only)
Cr. Deferred Revenue air time not used
24
Prepaid Revenue Recognition Process

Prospects
The process shows the steps that will be taken to reconcile the prepaid revenue recognition for the air time usage of prepaid recharge cards & SIM initial credit
imported information in AR with the IN System.
Procedure
1- The AR accountant should reconcile between Prepaid consolIdated summary report (MKSARSUMM01) and AR prepaid summary report (MKSARSUMM02)
before the interface to AR to make sure that, all the revenue amounts are accurate before it is imported into Oracle AR.
2- The AR accountant should forward all prepaid revenue by service type to revenue assurance to make sure that the accounted revenue which is interfaced to
oracle AR is accurate.
3- If there is a discrepancy in the reconciliation, AR accountant should notify the IT dept. with the discrepancy and followup with IT to interface the correct data
to AR interface tables.
4- Audit report for prepaid revenue should be printed and make sure that all the revenue is reconciled with AR and TABS(IN)
5- The AR accountant
6- should file all the reconciliation reports for future auditing.
Document Flow
1- AR Accountant
2- AR Manager
Work Flow
ID
Action
Automation
Description
1.
AR Accountant
Print Prepaid Reports
2.
AR Accountant
Print prepaid audit report
3.
AR Accountant
SystemAssisted
SystemAssisted
Manual
Before the TABS daily interface process is executed , AR accountant prints from TABS(IN)
system MKSARSUMM01&MKSARSUMM02 reports and reconcile between two reports
After the TABS daily interface process is completed succesfully, AR accountant prints from
Oracle AR the audit report for prepaid.
between revenue amounts in prepaid reports received from IT and revenue by bill code report
printed from Oracle AR by bill code.
25
ID
Action
Automation
Description
4.
AR Accountant
Reviews and Validates the Data
Manual
1-
5.
AR Accountant
Manual
The AR Accountant reviews and validates the reports for each type by:
a. Local Calls: dividing the total sum charges by the total sum duration which
should equal to the local call average rate.
b. International Calls: dividing the total sum charges by the total sum duration
which should equal to the international call average rate.
c. SMS Calls: dividing the total sum charges by total count which should equal to
the SMS call rate.
d. MMS Calls: dividing the total sum charges by total count which should equal to
the MMS rate
Revenue Recognition Invoice Entry:
Dr. Deferred Revenue air time not used
Cr. Revenue Roaming Prepaid
Cr. Revenue Prepaid recharge to deactivate credit
Cr. Revenue SMS
Cr. Revenue SMS/MMS
Cr. Revenue - GPRS
26
27
Deferred Revenue Reconciliaton Process

1. Prospects
1.1
Definition of Deferred Revenue

"Deferred revenue refers to the services not yet delivered for which it had been paid". The process is not complete; thus revenue cannot be recognized.
Revenue will be recognized, and the deferred revenue liability eliminated, when the services are performed."
1.2
Terminology:
The following terminology hereinafter referred to denotes in the process manual.
PRP =
Prepaid Recharge Products (All type of recharge physical; Logical, online etc.)
DRB =
Deferred Revenue Balance in GL.
CCB =
Customer Credit Balance in IN System.
PRPW =
PRPNU =
1.3
Activated Prepaid Recharge Products in the Warehouse.

Prepaid Recharge Products sold but not yet used in the Market.
Process
The process shows the steps that will be taken to reconcile the DRB. The DRB is (Prepaid liability account) represents the customers credit balance (CCB)
and PRPNU. All the CCB detailed information's report can be obtained from the IN system. however, and in order to know the PRPNU balances; from the
total activated recharge cards available in the VOMS should be subtracted by the activated recharge card available in the warehouse (PRPW) at any given
point of time. Generally VOMS dump report in the end of the month that provided by the IT. This dump information provides with the total status of recharge
cards available in the VOMS System. the following is a chart of Voucher Life Cycle In VOMS System:
28
Voucher creation
State changed
manuall y
NOT
NOT
INITIAL
INITIALIZED
IZED
LOCKED
LOCKED
Distributed
to retailers
ACTIVE
ACTIVE
Used by customer
(rech arge)
Not used before

expi ry date
PENDING
PENDING
State changed
manuall y
EXPIRED
EXPIRED
New credit
accepted by IN
USED
USED
DEACTIVATED
DEACTIVATED
state changed manually
see: VoMA N
state changed autom atically
VOUCHER LIFE CYCLE
1.4
1.5
Formulas
PRPNU
= VOMS activated PRP (Minus) PRPW in the Warehouse
DRB
= CCB + (Plus) PRPNU
DRB Recon
= CCB + (Plus) PRPNU (Minus) BRB = ZERO or (threshold Limit)
Flow Chart for DRB

The below chart will reflect the process of deferred reconciliation:-
29
1.6
Procedure
In order to ensure the correctness of the prepaid deferred revenue balance in the General Ledger (DRB); the following procedures are to be completed.
These procedures can be broadly classified in to main 3 steps which are as mentioned below:
1.6.1 Reconciliation between Inventory Issues and Sales & monthly movements for the PRP
1.6.2 Reconciliation for the CCB with the monthly movements.
1.6.3 Reconciliation of Deferred Revenue balance in GL (DRB)
30
1.6.1. Reconciliation between Warehouse Issues and Sales &
Monthly movements for the PRP
1.6.1. i) Purpose
Beginning of the following month obtain the previous month end balances as well as monthly movements for the warehouse PRP issues data from the
concerned departments and compare the same with the actual sales in the AR Oracle.
This reconciliation is to make sure that all the warehouse PRP issued items recorded in the sales ledger and match the balances in the AR Oracle as well as
the same has been reported in DRB as credit side in the General Ledger account for the Prepaid Liability amounts.
1.6.1. ii)Process:
a. Obtain Tabs Sales Report, Sales Register Report from AR Oracle; to match the both information's
b. Obtain Warehouse Issue report for the month to confirm the Sales transactions
c. Standard format report to be prepared to match the above 2 reports
d. Ensure no discrepancies items in DRB with the above reconciliation
1.6.1.iii) Formula
Sales Report Warehouse = Sales in Tabs = Sales in AR Oracle = DRB (Credit side).
1.6.1.iv) Specimen Format

A)- PREPAID RC CARDS SALES RECON FOR DEFERRED INCOME IN GL CREDIT SIDE
31
B)- PREPAID RC CARDS SALES RECON TABS Vs AR ORECLE MONTHLY
32
1.6.2. Reconciliation
for the CCB & the monthly movements.
33
1.6.2. i)Purpose
The aim to carry out this reconciliation is to verify and ensure the correctness of the CCB in the end of the month accurate with regard to our reconciliation
purpose.
In order to achieve that we need to have the CCB of the previous month and CCB at the beginning of the current month and all the PRP information's by all
channels added to the subscribers balance in the IN System during the month. Subtracting the airtime consumed; deactivation credit and Migration of Pre to
Postpaid balances. In order to ensure that there is no major discrepancies between the opening and the ending balance of CCB for our reconciliation
purpose as reported by the IN System.
1.6.2.ii) Process:
1. Obtain CCB Report from the IN System for the previous month
2. Obtain the additional PRP by all channels information that increased the CCB during the month
3. Print Airtime Usage report from IN system to know the service wise usages of airtime during the month
4. Print the Deactivation Credit balance Report and Migration from Pre to Post Report to know the adjustments
5. Standard format report to be prepared to match the above information's
6. Track the discrepancies items for the airtime in IN
7. Derive the closing balance of IN after adjusting the discrepancy if any
1.6.2.iii) Formula:
CCB End Balance = {Open bal CCB +(Plus) Increase CCB by PRP all Channel}
(Minus) [Usage of airtime +Deactivation Credit + Migration Pre to Post]
1.6.2.iv) Specimen Format:
34
3. Reconciliation of Deferred Revenue balance in GL DRB

1.6.3. i)Purpose
As the term refers "Deferred revenue" containing all the PRP balances in General Ledger for the services which is not yet delivered and for which it had been
already paid". Due to this reason it is known as Prepaid Liability account under financial records. Hence the process is not complete; thus revenue cannot be
recognized. Revenue will be recognized, and the deferred revenue liability eliminated, when the services are performed."
To verify and confirm that the balance of DRB Liability Account shown in the company Financial Statements i.e. B/S represents the True and Fair value of
the company with respect to its transactions and supporting to realize this liability account balance as on that date. In order to achieve this result; the
available month end balance of DRB is to compared with the CCB and PRPNU.
35
1.6.3.ii) Process:
1. Print the CCB from the IN System
2. Print Pre Active air time balance in IN System
3. To Derive for the PRPNU - . (By Equation) ** (refer Notes)
4. The result of Item No. 1, 2 & 3 represents the total deferred revenues liability of the company in Systems
5. Print DRB from GL to know the ending balance and monthly movements of PRP
6. Ensure No Discrepancy while Reconciliation with Item # 4 to Item# 5 (with threshold/tolerable limit)
16.3.iii) Formula:
DRB
= CCB + (Plus) PRPNU

And
DRB Recon
= CCB + (Plus) PRPNU (Minus) DRB = ZERO or (threshold Limit)
Threshold limit
= Lower of 1% of monthly revenue (airtime usages) or KD 100K
16.4 iv) **NOTES:-
As per the standard; in order to achieve the DRB reconciliation; It's required to know the TWO things
1. Activated PRPW in the warehouse by serial number wise
2. Activated PRP in the VOMS System by serial number wise
Match the both report information in one to one basis to ensure the correctness and its and assure with the confirmation for the identical activated PRP in
both two systems. This eventually leads us to reach to find out the product of PRPNU. The expected PRPNU product is nothing but the activated PRP
in VOMS by all channels less of activated PRP in the warehouse.
Currently due to the non availability of the above mentioned both reports from warehouse as well as VOMS System for the PRP balances by serial wise;
real time reconciliation on one to one basis held up.
36
Instead of the hindered standard process for the DRB recon; to achieve the result of DRB reconciliation; we implemented another exercise to meet the
expectations and make sure our balance of DRB in GL for its accuracy. As an invented equation; we use the elements of Monthly Sales;
Usage/consumption of Airtime; and CCB; frequency of CCB by the customers /subscribers and the ARPU.
Based on our exercise; supported by the past experience and trend of the DRB represents on the monthly sales on an average @ 25%. Any fluctuation
either in the sales or in the CCB directly varies the DRB accordingly
37
Related Documents and the Specimen format
38
Deferred Revenue Recognition at RC Sales Invoice Entry:
Dr. AR Subscribers
Dr. Discount RC Card Sales
Revenue Recognition at SIM Pack Sales Invoice Entry
Dr. Discount on RC Card_Initial Credit KD.2/each
Revenue Recognition at usage services Entry:

Cr. Revenue Roaming Prepaid
Cr. Revenue Prepaid recharge to deactivate credit
Cr. Revenue SMS
Cr. Revenue SMS/MMS
Cr. Revenue GPRS
Cr. Kuwait University Accrued Liability
Revenue Recognition at Sales Return SIM Pack Entry:

39

Cr. Discount on RC Card_Initial Credit KD.2/each
Revenue Recognition at Sales Return RC Invoice Entry:

Cr. Discount RC Card Sales
Cr. AR Subscribers
40
TABS Report ARRECON 1- AR Reconciliation Process

Prospects
The process shows the steps that will be taken to reconcile the post paid and prepaid distributors AR balances with the revenue with recognition imported information
in AR with the TABS Billings comparing with TTSE information in AR with the Oracle system
Procedure
1. The AR accountant should print the report to confirm the reconcile between the IVM Charge report printed from TABS to ensure that, all the revenue amounts
are imported into Oracle AR are matching with Tabs information TTSE .
2. The AR accountant should print the ARRECON 1 report from TABS
3. The ARRECON1 report represent the Current Month billings, Unbilled amounts during the month and the previous month, Billed amounts in advance for the
Current month and previous month
4. The ARRECON 1 compares the revenue recorded in the IVM Charge Reprot with the TTSE Report and the amount recorded in the AR
5. The ARRECON 1 report unbilled as well as Advance billing information will be taken into reconciliation of AR Balance in GL with AR in TABS contract wise
information.
6. The AR accountant should present reconciliation reports to the AR Manager and should obtain the approval
7. The AR accountant should file all the reconciliation reports for future auditing.
Document Flow
1. The AR accountant
2. The AR Manager
Work Flow
ID
Action
Automation
Description
1.
AR Accountant
Print Reports
2.
AR Accountant
Obtain Oracle Report
SystemAssisted
Manual
3.
AR Accountant
Prepare Reconciliation
Manual
4.
AR Accountant
Manual
5.
AR Accountant
Manual
After the TABS daily interface process is completed successfully, AR accountant prints from
TABS should print IVM Charge Report, TTSE Report, TABs AR Contract Aging balance report
ORACLE AR should print AR Contract control account balance report with unapplied reports
The AR Accountant prepares monthly the AR Balances Reconciliation schedule by elaborating
the type of service in GL control account and Category wise information of AR Balances for the
contract wise transactions accumulated amounts with the Aging informations.
The AR accountant should prepare Monthly reconciliation for the Deposit Account and should
obtain AR Manager approval on reports.
41
AR Revenue Recognition at Postpaid Service Usage / Sales Invoice Entry:
Dr. AR Subscribers
Dr. Discount RC Card Sales
Cr. SIM Card Revenue / Income
AR Against collection
Dr. Bank Account / Cash Account
Cr. AR Unapplied Receipts
Dr. AR Unapplied Receipts (on applying for allocation)
Cr. AR Subscribers
42
ZAIN Touch- Service Charges Reconciliation Process

Prospects
The process shows the steps that will be taken to reconcile the ZAIN Touch subscribers service charges for the revenue sharing between ZAIN TOUCH AND ZAIN
Kuwait, and the monthly ZAIN Touch cliam for their receivable balances with ZAIN books which is recorded through the recognition of service revenue imported
information in AR with the TABS Billings information in AR with the Oracle system against their cost bookings.
Procedure
1. The AR accountant should print the every month end Revenue share report from TABS and provide the necessary entry in Oracle Financial Module (GL)
manual accrual journal entries for the cost on the same.
2. The AR Accountant should provide Revenue Share contribution of ZAIN Touch for every month in the Vendor Account under AP Module by creating monthly
invoices for their respective services under US Dollar currency.
3. The AR Accountant should obtain monthly information from the ZAIN Touch for their monthly claim from ZAIN Kuwait
4. The AR accountant should prepare the information in the excel format service wise and compare the same with the Monthly claim from ZAIN Touch
6. The AR Accountant after obtain the approval on the reconciliation should process for releasing ZAIN Touch payments as per ZAIN Book balances
Document Flow
2. The AR Manager
Work Flow
ID
Action
Automation
Description
1.
AR Accountant
Print Reports
System-Assisted
2.
AR Accountant
Oracle Journal entries
Manual
3.
AR Accountant
Manual
4.
AR Accountant
Manual
TABS should print ZAin Touch revenue share report.
Based on the TABS revenue share report, AR Accountant should provide the same
information in the GL: - Oracle Financial Module for the same and Create invoices for
vendor account under AP
The AR Accountant prepares monthly the revnue share Reconciliation schedule by
elaborating the type of service in GL control account and service wise information of AR
Balances for the contract wise transactions accumulated amounts during the mnonth as per
ZAIN Touch Claim Sheet
The AR accountant should prepare Monthly reconciliation for the R3evenue share claim
between ZAin Book as well as ZAIN Touch Claim sheet and should obtain AR Manager
approval on reports.
43
ID
5.
Action
Automation
Description
AR Accountant
Manual
AR Revenue Share Recognition Entry:
Dr. ZAIN Touch Services Cost

Cr. ZAIN Touch revenue share accrual Expenses account
Revenue share against AP Invoices

Dr. ZAIN Touch revenue share accrual Expenses account
Cr. AP ZAIN Touch Vendor account
44
Kuwait University Registration Fees Process

Prospects
The process shows the steps that will be taken to reconcile the ZAIN subscribers service charges related with the Kuwait University Students Registration Fees on
line paid through ZAIN Kuwait, and the Kuwait University cliam for their receivable balances with ZAIN books which is recorded through the recognition of service
revenue imported information in AR with the TABS Billings information in AR with the Oracle system.
Procedure
1. AR Accountant should obtain detailed report from IT with the subscribtion numbers and the amount paid for the prepaid services by the subscribers for the
services used under this category
2. AR Accountant should provide the prepaid services subscribers correct amount in GL as per the IT Data base confirmed report and provide in the Kuwait
University accrued account by charging the same to the deferred revenue account
3. The AR accountant should print the every time in Oracle Financial Module (GL) to know the total accrual which is payable to the Kuwait University for their
claimon the service related with Students registration fees as per their DATA Base information.
4. The AR Accountant should obtain the Official Letter from the Kuwait University for their claimed amount on the said services from ZAIN Kuwait.
5. The AR Accountant should create invoices in the Kuwait University vendor account against the amounts already accrued for the said purpose after
confirming the accrued balance in ZAIN Book is reconciled with KU claim
7. The AR Accountant after obtain the approval on the reconciliation should process for releasing KU payments as per ZAIN Book balances
Document Flow
2. The AR Manager
Work Flow
ID
Action
Automation
Description
1.
AR Accountant
Print Reports
SystemAssisted
2.
AR Accountant
Oracle Journal entries
Manual
TABS should print ZAin KU revenue Accured liability account information from Oracle GL
System
Based on the IT detailed reports for the subscription wise information which Is added to the
ZAIN Data base for the prepaid services report, AR Accountant should provide the same
information in the GL: - Oracle Financial Module for the same and Create invoices for vendor
account under AP
45
ID
Action
Automation
Description
3.
AR Accountant
Manual
4.
AR Accountant
Manual
5.
AR Accountant
Manual
The AR Accountant prepares monthly the accrued liability Reconciliation schedule by

elaborating the type of service in GL control account for the KU Registgration fees Liability
Balances for the contract wise transactions accumulated amounts during the mnonth as per
Kuwait University Claim Sheet
The AR accountant should prepare reconciliation for the liability account of KU and claim
between KU for the registration fees Claim sheet and ZAIN Accrued liability account and
should obtain AR Manager approval on recon
AR Revenue Share Recognition Entry:
Dr. Deferred Revenue Air time not used Account Subsription wise
Cr. KU accrude liability account
Revenue share against AP Invoices

Dr. KU accrude liability account
Cr. AP Kuwait University Vendor account
46
Prepaid Promotion 38.25 Process

Prospects
The process shows the steps that will be taken to record the deferred revenue and the discount initial credit on 38.25 for the recharge card with 30 KD.
Procedure
1234-
The AR accountant should Print Used vouchers report (MKSINREP08-Prepaid vouchers (Physical & Payment) report) from TABS system.
The AR accountant should calculate the discount initial credit amount (# of RC cards activated during the month x 8.25).
The AR accountant should enter an AR invoice to record the discount initial credit amount and the deferred revenue amount.
The AR accountant should print and review the journal entries report for discount initial credit on 38.25 and the deferred revenue amounts to make sure that,
all the discount initial credit and deferred revenue amounts are accounted.
Document Flow
1- AR Accountant
2- Revenue & AR manager
Work Flow
ID
Action
Automation
Description
1.
AR Accountant
AR Accountant
SystemAssisted
Manual
Print Prepaid Used report vouchers report from TABS system
2.
Print Prepaid Recharge Cards Reports by

QTY
Calculate the QTY
3.
AR Accountant
Enter AR Transaction
4.
AR Accountant
6.
AR Accountant
File the Transaction Reports
SystemAssisted
SystemAssisted
Manual
The AR accountant multiplies the total QTY by the discount amount 8.25 KD which equal the
total credit amount.
Based on the discount calculated amount, the AR accountant create manual invoice on the AR
system to record the discount initial credit and deferred revenue amounts
The AR Accountant prints the Journal entries reports to make sure that the discount initial credit
and deferred revenue amounts are accounted.
The AR accountant should file the transaction reports for future auditing.
Prepaid Promotion 38.25 Invoice Entry:
Dr. Discount Initial Credit on 8.25
47
Cr. Deferred Revenue Air Time not used
48
Recognize VAS Cost

Prospects
The process shows the steps that will be taken to recognize and record the VAS cost for DIG DIAL and SMS/MMS/RBT etc.
Procedure
The AR accountant should print the revenue share summery report for SP revenue share from AR.
The AR accountant should create a Journal Voucher in the GL to record the VAS cost for DIG DIAL and SMS/MMS/RBT etc.
The AR accountant should print the Journal Voucher and review that all the DIG DIAL and SMS/MMS/RBT etc cost is recorded.
Document Flow
1- AR Accountant
2- Revenue & AR Manager
Work Flow
ID
Performer (Work
Title)
Action
Automation
Description
1.
AR Accountant
System-Assisted
2.
AR Accountant
Print Revenue Share report from

AR
Enter Cost Journal Entry
System-Assisted
At the end of the month, AR accountant print revenue share report from AR for SP revenue share for DIG DIAL
and SMS/MMS/RBT etc.
The AR accountant enters DIG DIAL and SMS/MMS/RBT cost Journal entry in GL.
3.
AR Accountant
Print Journal Voucher
System-Assisted
The AR Accountant prints Juurnal Voucher.
4.
AR Accountant
Review Journal Voucher
System-Assisted
5.
AR Accountant
Manual
The AR Accountant review Journal Voucher to make sure that all the DIG DIAL and SMS/MMS/RBT cost
invoices are recorded.
VAS Cost for DIG DIAL and SMS/MMS Invoice Entry:
Dr. Cost DIG DIAL
Dr. Cost SMS/MMS/RBT
Cr. Accrued Expenses
49
Third Party Revenue Share Settlement Process

Prospects
The process shows the steps that will be taken to of pay the revenue share to the third party; this process involves AR dept. for revenue share calculations and AP
invoicing, Marketing Dept. for third party communication and invoice approval and AP dept. for payments.
Procedure
123456-
The AR accountant should prepare the revenue share report for every SP by exel format, Print discoverer report for revenue share detailes for SP
The AR accountant should collect the data from every SP
The AR accountant should reconcile the data between Zain & SP
The AR accountant should send the SP revenue share report to SP for raising their invoice based on the provided data.
Upon receiveing the SP invoice AR accountant to create a AP
Revenue manager should approve the SP revenue share invoice in Oracle AP.
Document Flow
123456-
AR Accountant
Revenue & AR Manager
Marketing Dept.
Service Provider
AP Accountant
AP Manager
Work Flow
ID
Action
Automation
Description
1.
AR Accountant
Prepare Revenue Share Report
System-Assisted
2.
AR Accountant
Collect SP data on monthly basis
Manual
AR accountant Prints AR discoverer Revenue share details repor and prepares a report on
excel sheet for the prepaid and postpaid VAS third party revenue share, duration, count,
service rate and total revenue SP share.
AR accountant collects SP data for reconciliation
3.
AR Accountant
Reconcile the data between Zain & SP
Manual
AR accountant reconciles the data between ain & Each SP.
4.
AR Accountant
Manual
5.
Service Provider
Send the revenue share report to SP after

reconciliation
Send Revenue Share Invoice to Finance
Devision.
AR accountant to send the revenue share report to SP after reconciliation, which ever figure
is low
Third party (SP) sends the invoice to ZAIN Finance devison for settlement.
Manual
50
ID
Action
Automation
Description
6.
AR Accountant
Create AP
System-Assisted
AR accountant creates an AP for closing accrued revenue using VAS cost clearing account.
7.
Revenue Manager
Approve SP revenue Share Invoice
System-Assisted
AR manager reviews and approve the AP invoice.
8.
AP Accountant
Create Payment for SP Invoice
System-Assisted
AP accountant creates payment for SP invoice
9.
AR Accountant
File the Revenue share Reports
Manual
The AR accountant should file the revenue share reports for future auditing.
VAS Credit Memo Entry:
Dr. Accrued Liability
Cr. VAS Cost Clearing A/C
SP AP Invoice Entry:
Dr. VAS Cost Clearing A/C
Cr. SP Liability
SP AP Payment Entry:
Dr. SP Liability
Cr. Bank
51
Recognize Current Month Subscriptions Revenue Process

Prospects
The process shows the steps that will be taken to recognize current month subscriptions revenue for Pager and GSM subscription fees that previously unearned.
Procedure
1- The AR Accountant should run the Revenue recogniation Master Programme.
2- Upon completion of Revenue regeogniation master programme, AR accountant should rum Revenue accounting, and query all the subscriptios more than
one month.
3- The AR accountant should schedule the revenue for transaction type Postpaid A. Subscription Inv., Bulk SMS Inv. etc.
Document Flow
1- AR Accountant
Work Flow
ID
Action
Automation
Description
1.
AR Accountant
System-Assisted
AR accountant to run the revenue recognition master programme to recognize the revenue
2.
AR Accountant
Run the revenue recogniation master

programme
Run the Revenue accounting
System-Assisted
3.
AR Accountant
Schedule revenue
System-Assisted
AR accountant should run the revenue accounting to query all the Annual subscription and
bulk sms invoices
AR accountat should Schedule the revenue
4.
AR Accountant
Print Schedule revenue report
System-Assisted
5.
AR Accountant
Manual
The AR accountant should print every end of the month the schedule revenue report from AR
and make sure that it matches with GL unearned revenue.
GSM Unearned Revenue Recognation Entry:
Dr. Unearned Revenue GSM subscriptions (month portion)
Cr. Subscription Revenue - GSM
Pager Unearned Revenue Recognation Entry:
Dr. Unearned Revenue Pager subscriptions (month portion)
52
Cr. Subscription Revenue - Pager
53
Legal Agencies Commission Calculation Process

Prospects
The process shows the steps that will be taken to calculate and record the legal agencies commission. The legal agencies commission calculation process purpose
is to calculate and record the legal agencies commission for the collected debits from ZAIN subscribers.
Procedure
1- The AR accountant should print the Commission report from TABS system (MCHCOLSCMM, MCHCOLDCMM), which includes collection & commission
figures by legal agency.
2- The AR accountant should review and calculate the commission amount based on the legal agency agreement on excel sheet to make sure that report is
correct.
3- The AR accountant should print the commission report.
4- The AR account to creat a commission journal voucher
5- The AR manager should review and approve the commission journal voucher.
6- The AR accountant should create AP invoice for each legal agency in Oracle AP.
7- The AR manager should approve the AP commission invoices for payment.
8- The AP accountant to Process payment.
Document Flow
1234-
AR Accountant
Revenue & AR Manager
AP Accountant
AP Manager
54
Work Flow
ID
Action
Automation
Description
1.
AR Accountant
Print Commission Report
System-Assisted
2.
AR Accountant
Calculate Commission Amount
Manual
3.
AR Accountant
Print Commission Report
System-Assisted
AR accountant prints the commission report ( MCHCOLDCOMM) from Tabs system by legal
agency, this report shows the following information:
1. Batch number
2. Batch Transaction Date
3. Opening Balance
4. Previous Paid Amount
5. Previous Adjustments
6. Current Paid Amount
7. Current Adjustment
8. Total Paid Amount
9. Total Balance
10. Commission Amount
Based on the commission agreement % and the collected debits, AR accountant should recalculate
the commission amount for each agency by using execel to make sure that the report is correct.
AR accountant print the commission report.
4.
AR Accountant
Create Jounal voucher in GL
System-Assisted
AR account should prepare journal voucher to pass the commission expense in the GL
5.
AR Manager
Manual
AR manager approves the commission journal voucher.
6.
AR Accountant
Approve the Commission Journal

voucher
Enter AP Invoice
System-Assisted
7.
AR Manager
Approve AP invoices
System-Assisted
AR accountant enter AP invoice for the commission and for each legal agency based on the
approved commission report.
AR manager approves the AP commission invoices.
8.
AP Accountant
System-Assisted
AP accountant creates payment for commission invoices
9.
AR Accountant
Create Payment for Commission

Invoices
Manual
AR Commission JV Entry:
Dr. Commission Expenses Agencies
Cr. Accrued Expenses Commission for Collections
AP Commission invoice Entry:
Dr. Accrued Expenses Commission for Collections
Cr. AP Liability by Legal Agency
55
AP Commission payment Entry:

Dr. AP Liability by Legal Agency
Cr. Bank
56
Incoming GSM Roamers Revenue Calculation & Invoicing Process

Prospects
The process shows the steps to invoice the other operators for the air time and the ZAIN network usage during their subscriber's visit to Kuwait. Based on the
agreement with the operator ZAIN invoice the operator with the total roaming amount that calculated in Price Maker system by operator, which is interfaced to TABS
system each operator has its own code in Tabs system.
Procedure
1- The AR accountant should download MTCDW.PRODUCT 24- Incoming and Outgoing Roamers Cost report from DWH and reconcile it with Incoming
Roamers Export File Charges Rpt. printed from Oracle AR.
2- The AR accountant should print the aging report from TABS and reconcile it with aging report in AR for operators receivables to make sure that, all the
operators receivables are accounted.
3- The AR accountant should reconcile between TABS ivmby charge report and AR Incoming Roamers Export File Charges Rpt. for revenue amounts to make
sure that, all the revenue amounts are accounted.
4- If there is a discrepancy in the reconciliation, AR accountant should notify the Oracle Administrator with the discrepancy
5- IT is sending the TAPOUT files daily to the clearing house (EDCH)
6- Month end EDCH raise an invoice to each operator for the total amount of TAPOUT files they received.
7- Month end AR accountant download all the files by operator from EDCH (Monthly TAP Transaction Details) and reconcile with Zain data downloaded from
DWH(MTCDW.PRODUCT 24)
8- If any discrepancy in the reconciliation, AR accountant notifys the IT roaming team and followup for solving the issue.
Document Flow
1234-
AR Accountant
IT (Roaming PM&DWH)
EDCH
Revenue Manager
Work Flow
ID
1.
Action
Automation
Description
AR Accountant
Download MTCDW.PRODUCT 24Incoming and Outgoing Roamers Cost from

DWH
SystemAssisted
At the end of every month, AR accountant downloads from DWH system the following roaming
reports for the month period:
MTCDW.PRODUCT 24
57
ID
Action
Automation
Description
2.
AR Accountant
AR Accountant
SystemAssisted
Manual
AR accountant download Roamers Export File Charges Rpt from AR
3.
Download Roamers Export File Charges Rpt

from AR
Reconcile Revenue by Bill Code and
operator
4.
AR Accountant
Print Aging Report from AR & TABS
5.
EDCH
Send Operators Roaming Invoices
SystemAssisted
Manual
6.
AR Accountant
7.
AR Accountant
Receive EDCH Operators Roaming

Invoices soft copy
Reconcile EDCH Operators Roaming
Invoices amount files wise with Zain Data
(Monthly TAP Transaction Details &
MTCDW.PRODUCT 24)
Manual
Manual
At the end of the month, AR accountant reconcile between revenue amounts by bill code in
Postpaid Customer Charged report printed from TABS and Roamers Export File Charges Rpt
from Oracle AR.
The AR accountant prints Aging report by operator from AR & TABS.
EDCH sends the Operators Roaming Invoices.
After the month closing AR accountant receives from EDCH the soft copy of invoices which
EDCH raised to each operator on Zains behalf.
The AR accountant reconciles the operators invoices (ZAIN invoices) with Zain data and If the
reconciliation mismatches the AR accountant checks for the missing files and makes sure that
the file is billed next month.
Incoming GSM Roamers invoice Entry:
Dr. AR Subscribers GSM Roaming
Cr. Roaming Revenue Local Calls
Cr. Roaming Revenue International Calls
Cr. Roaming Revenue SMS
Cr. Roaming Revenue GPRS&MMS
Cr. Roaming Revenue Data
Cr. Roaming Revenue Fax
Cr. Roaming Revenue Video Calls
58
Outgoing GSM Roamers Revenue Calculation & Invoicing Process

Prospects
The process shows the steps to invoice our subscribers for the usage of the other operator network during his visit to abroad. Based on the TAP files received from
the other operator, the CDRs are re-rated according to the new zonal pricing tarrif and charge our subscriber in his contract in TABS system which is interfaced to
Oracle AR every day.
Procedure
1- The AR accountant should download MTCDW.PRODUCT 24- Incoming and Outgoing Roamers Cost report from DWH and reconcile it with Outgoing
Roamers Export File Charges Rpt. printed from Oracle AR.
2- If there is a discrepancy in the reconciliation, AR accountant should notify the Oracle Administrator with the discrepancy
3- Month end AR accountant download all the files by operator from EDCH (Monthly TAP Transaction Details) and reconcile with Zain data downloaded
from DWH(MTCDW.PRODUCT 24)
4- If any discrepancy in the reconciliation, AR accountant notifys the IT roaming team and followup for solving the issue.
Document Flow
1234-
AR Accountant
IT (Roaming PM&DWH)
EDCH
Revenue Manager
Work Flow
ID
Action
Automation
Description
1.
AR Accountant
SystemAssisted
2.
AR Accountant
Download MTCDW.PRODUCT 24Incoming and Outgoing Roamers Cost from

DWH
Reconcile Revenue by Bill Code and
operator
3.
AR Accountant
Print Aging Report from AR & TABS
4.
EDCH
Send Operators Roaming Invoices
SystemAssisted
Manual
At the end of every month, AR accountant downloads from DWH system the following roaming
reports for the month period:
MTCDW.PRODUCT 24
At the end of the month, AR accountant reconcile between revenue amounts by bill code in
Postpaid Customer Charged report printed from TABS and Roamers Import File Charges Rpt
from Oracle AR.
The AR accountant prints Aging report by operator from AR & TABS.
Manual
EDCH sends the Operators Roaming Invoices.
59
ID
Action
Automation
Description
5.
AR Accountant
Manual
6.
AR Accountant
Receive EDCH Operators Roaming

Invoices soft copy
Reconcile EDCH Operators Roaming
Invoices amount files wise with Zain Data
(Monthly TAP Transaction Details &
MTCDW.PRODUCT 24)
After the month closing AR accountant receives from EDCH the soft copy of invoices which
EDCH raised to each operator on Zains behalf.
The AR accountant reconciles the operators invoices (ZAIN invoices) with Zain data and If the
reconciliation mismatches the AR accountant checks for the missing files and makes sure that
the file is billed next month.
Manual
Incoming GSM Roamers invoice Entry:
Dr. AR Subscribers
Cr. Outgoing Roaming Revenue
60
Incoming and Outgoing Roaming Reconciliation Process

Prospects
The process shows the steps that will be taken to reconcile the incoming and outgoing roaming transaction imported into Oracle AR with the EDCH Taps in / out files
report, to make sure that all the Taps in files belong to the current month are invoiced to ZAIN subscribers, all the Taps out files belong to the current month are
invoiced to the GSM roaming operators, and report on the missing Taps in / out files.
Procedure
1234-
The EDCH Online is updated by import / export files report.

The AR accountant should Download Taps in / out files report from DWH
The AR accountant should reconcile between EDCH monthly import and export report with Price Maker in / out files report printed from DWH.
If there is a discrepancy in the reconciliation, AR accountant should notify the IT dept. with the discrepancy.
Document Flow
1234-
EDCH
AR Accountant
IT
Revenue Manager
Work Flow
ID
Action
Automation
Description
1.
EDCH
Send Import / Export Files Report
Manual
EDCH updates monthly the import / export files report for the current month.
2.
AR Accountant
Print Taps In / Out Files Report
AR accountant downloads from DWH Taps in / out files report.
3.
AR Accountant
Reconcile Incoming and Outgoing Roaming
SystemAssisted
Manual
4.
AR Accountant
Find Missing Taps In / Out Files
Manual
At the end of the month, AR accountant reconcile between EDCH monthly import / export files
report with Taps in / out files report downloaded from DWH
The AR finds the missing Taps in / out file.
5.
AR Accountant
Inform IT
Manual
The AR Accountant informs IT dept. with the missing Tap in file.
6.
AR Accountant
Manual
61
Outgoing GSM Roamers Cost Process

Prospects
The process shows the steps that will be taken to record the outgoing GSM roamers cost for the air time and other operators network usage during ZAIN subscribers
traveling outside Kuwait. The cost will not include ZAIN Zonal Pricing.
Procedure
1- The AR accountant should download MTCDW.PRODUCT 24- Incoming and Outgoing Roamers Cost report to record the outgoing roaming cost.
2- The AR accountant should record the outgoing roaming cost based on MTCDW.PRODUCT 24- Incoming and Outgoing Roamers Cost report which will
shows the actual cost based on the booked revenue.
3- The AR accountant should record the cost by booking an invoice at the end of the month from the report MTCDW.PRODUCT 24- Incoming and Outgoing
Roamers Cost and he has to reconcile with the the operatorTAPIN files from EDCH and reconcilie with the operator invoice.
Document Flow
1- AR Accountant
2- EDCH/DWH Report
3- Revenue Manager
Work Flow
ID
Performer (Work
Title)
Action
Automation
Description
1.
AR Accountant
Download MTCDW.PRODUCT 24- Incoming

and Outgoing Roamers Cost report
System-Assisted
2.
AR Accountant
Create Cost Invoices
System-Assisted
At the end of every month, AR accountant downloads MTCDW.PRODUCT24-Incoming and

Outgoing Roamers Cost report. This report will show the outgoing roamers cost for prepaid and
postpaid by operator, the cost will not includes the ZAIN Zonal pricing %.
Based on the above report accountant create cost invoices in Oracle AP by operator.
3.
EDCH
Send Operator Invoice
Manual
EDCH send the operator invoice to ZAIN AR accountant.
Outgoing GSM Roamers Cost invoice Entry:
Dr. Cost of postpaid outgoing roamers
Dr. Cost of prepaid outgoing roamers
Cr. International Operators Payable
62
63
Incoming and Outgoing GSM Roaming Netting Process

Prospects
The process shows the steps that will be taken to netting the incoming and outgoing roaming transactions. The operator debit balance (Receivables) netted with the
operator credit balance (Payables), either the netting amount is payable to the operator, if the operator credit balance is greater than the debit balance or collecting
the netting amount from the operator if the operator debit balance is greater than his credit balance.
Procedure (Payments)
1. EDCH to prepare the due amount payable to the operator on monthly basis.
2. EDCH informs the AR accountant about the total amount to be transferred, further AR accountant informs Tresuary to transfer the said amount in NBAD bank
Abu-Dabhi.
3. EDCH sends the AR accountant the details of neeting amount payables based on which the AR accountant takes action.
4. AR accountant compares the payments amout with the MTCDW.Product 24 Incoming and outgoing Roamers Cost report from DWH.
5. AR accountant should create a credit memo (Adjustment) in KWD for AR amount.
6. AR accountant load Credit Memo in AP in USD for AR amount of KWD from the Roaming Netting Data sheet. Calculation is made for USD value from AR
KWD, using the same USD rate which the invoice is booked (This is an important step) but while making the payments in AP Corporate rate has to be used.
7. AR accountant at the month end checks the clearing account (313620) where the debit from AR and Credit from AP will book and the difference should be
accounted as Forex.
Document Flow
1. AR Accountant
2. EDCH
3. Tresuary
Work Flow
ID
Performer (Work
Title)
Action
Automation
Description
1.
AR Accountant
System-Assisted
At the end of every month, AR accountant prints Customer Supplier Netting Report from EDCH
2.
AR Accountant
Print Customer Supplier

Netting Report
Create Credit Memo in
Tabs
System-Assisted
AR accountant enter a Credit memo (Adjustment) in AP in USD in Tabs system for AR amount of KWD
calculation is made to get USD value from AR KWD us the same USD rate which the invoice is booked.
64
Netting for Payments
Create Credit Memo in Oracle AR and Oracle AP for the same amount for which the Invoice was created in oracle AR in operator account.
Accounting Entry (Credit Memo Oracle AR)
Dr. International Operators - Clearing (313620)
Cr. A/R Subscriber GSM Roaming (133920)
Accounting Entry (Credit Memo Oracle AP)
Dr. International Operators (313610)
Cr. International Operators - Clearing (313620)
Payments
Make Payment in Oracle AP

Accounting Entry (Payments - Oracle AP)
Cr. Bank (123820)
Make Zero Receipt in Oracle AR

Accounting Entry (Receipts - Oracle AR)
Dr. Bank (123820)
Procedure (Receipts)
1. AR accountant checks the NBAD statements on line for receipts
and informs EDCH to updated the receipts in EDCH online.

65
2. AR accountant downloads all the receipts updated in EDCH online before end of the month.
3. AR accountant loads Credit Memeo in AR in KWD for AP amount form the netting roaming excel sheet.
4. Load Credit Memo in AP in USD for AP amount of KWD from the Netting Excel Sheet, Calculation is made to get USD value from AP KWD, using the same
USD rate which the invoice was booked (This is an important step).
5. Receipt is made in AR and Zero payments is AP using the corporate rate
6. To make receipts AR accountant makes sure that the maturity date is same as GL date from where the EXcahnge rate is calculated.
7. AR accountant checks the Clearing Account (313620) where the Debit from AR and Credit from AP will book and the difference should be accouted as Forex
Work Flow
ID
Performer (Work
Title)
Action
Automation
Description
1.
AR Accountant
System-Assisted
At the end of every month, AR accountant prints Customer Supplier Netting Report from EDCH
2.
AR Accountant
Manual
AR Accountat loads in AR module with AP amount in KWD
3.
AR Accountatnt
System Assisted
Credit Memo is loaded in AP module in TABS in USD for AP amount of /KWD from Roaming Excel sheet.
Calculation is made to get USD value from AP KWD using the same rate which the invoice was booked.
4.
AR Accountant

Netting Report
Load Credit Memo in KWD for
AP amount Roaming netting
Excel Sheet
Load Credit Memo in AP in
USD for AP amount from
Roaming Excel Sheet
Receipts in AR module
Manual
AR accountant makes receipts in AR module and zero payments in AP using Corporate rate, AR accountat makes
sure that maturity date is same as date of GL date form where the Exchange rate is calculated to make the
receipts.
At the time of Receipts or payments netting process is done.
Netting for Receipts
Create Credit Memo in Oracle AR and Oracle AP for the same amount for which the Invoices was created in oracle AP in operator account
66
Dr. International Operators - Clearin (313620)

Cr. International Operators - Clearing (313620)
Receipts
Make Receipt in Oracle AR

Dr. Bank (123820)
Make Zero Value Payment in Oracle AP

Cr. Bank (123820)
67
68
Interconnect Revenue Calculation, Invoicing, and Cost Process

Prospects
The process shows the steps to invoice for the revenue and costs booking for the local operators interconnect for the mutual agreed services of Voice Calls, SMS
and MMS for calling subscribers of other Local Operators network by Zain subscribers in Kuwait. Based on the agreement with the local operator, Zain Kuwait sends
invoice for its MT traffic from other operators network and receives invoices from other local operator for their MT traffic from Zain network with the total services
amount that calculated in the agreed rate, which is reported in TABS system.
Procedure
1. The AR accountant should download Interconnect report by services and operator for the Voice Calls, SMS and MMS for the Incoming and Outgoing traffic
reports from Tabs System.
2. The AR accountant should obtain from Revenue Assurance Interconnect information by services for the Voice Calls, SMS and MMS for the Incoming and
Outgoing traffic reports to perform the reconciliation and confirmation for the accuracy for the number of transactions Charged in the Tabs printed Report.
3. The AR accountant should scrutinize the report for local operators receivables to make sure that, all the local operators receivables & Payables are
accounted correctly.
4. The AR accountant should verify the revenue and cost trend of TABS & RA reports for receivable and payable seperatly.
5. If there is a discrepancy in the reconciliation between TABS and RA system report, AR accountant should notify IT/RA for the discrepancy.
6. Each Month end Zain Kuwait has to exchange the terminated traffic from other operator and get confirmation and reconcile other operators terminated traffic
from zain Kuwait originated traffic.
7. Each quarter, Zain Kuwait and other operator raises an invoice to eachother for the total amount of Incoming transactions they received as per the
confirmation
Document Flow
5- IT &RA
6- AR Accountant
7- Revenue Manager
69
Work Flow
ID
Action
Automation
Description
8.
AR Accountant
Download Tabs Report for the Incoming and

Outgoing Interconnect service wise
informations.
SystemAssisted
9.
AR Accountant
Reconcile Revenue by Transaction Count

and operator
Manual
10. AR Accountant
Print Aging Report
Manual
At the end of every month, AR accountant downloads from Tabs system the following
interconnect reports for the month period:
Voice Calls, SMS and MMS interconnect reports for Both Incoming & Outgoing to record
revenue as well as the cost for the each transaction.
At the end of the month, AR accountant reconcile between revenue amounts by Transacton in
Postpaid and Prepaid interconnect report printed from TABS; and RA Information for all
Charges and confirmed amounts to pass the record for journalize the transaction in the Finance
Oracle system.
The AR accountant prints Aging report by operator Manual Record and AR
11. AR Accountant
Reconcile Operators Accounts
Manual
12. AR Accountant
Send Local OperatorsInterconnect data
Manual
13. AR Accountant
Reconcile Local Operators Interconnect

data with Zain Data)
Quarterly Invoice the operator
Manual
14. AR Accountant
Manual
At the end of the month, AR accountant reconcile between aging report and journal entries
report for operator receivables.
Zan Kuwait sends the Local Operators Interconnect data
The AR accountant reconciles the local operators data with Zain data as agreed with the Local
Operators as per the terms of the agreement.
End of every quarter, AR accountant send Zain invoice to other operator and receives other
operators invoice and make the settelement.
Incoming Interconnect invoice Entry:
Dr. AR National Operators
Cr. Interconnect Revenue Voice Calls
Cr. Interconnect Revenue SMS
Cr. Interconnect Revenue MMS
Outgoing Interconnect invoice Entry:
Dr. Interconnect Cost Voice Calls
Dr. Interconnect Cost SMS
Dr. Interconnect Cost MMS
Cr. AP National Operators
70
71
Incoming and Outgoing Interconnect Reconciliation Process

Prospects
The process shows the steps that will be taken for data reconciliation and netting the incoming and outgoing interconnect transactions.
Procedure (Payments/Receipt)
8. Each Month end Zain Kuwait and other operator exchange the terminated traffic in their network from other operators network and it is reconciled with the
originated traffic from their on network and the same will be confirmed if discrepancy is with in agreed 2%
9. The AR accountant will send invoice to the operator for the terminated traffic quarterly and other operator will send their invoice for the agreed amounts for
the settlements quarterly also.
10. AR accountant compares the payments amount with the Incoming and outgoing interconnects Cost recorded in the financial records.
11. AR accountant should create a credit memo (Adjustment) in KWD for AR/AP amount. According to the netting.
12. AR accountant load Credit Memo /debit Memo in AP for AR amount or AR amount in AP (according to the netting) from the Interconnect Netting Data control
sheet.
13. AR accountant at the month end checks the financial records account where the debit from AR and Credit from AP will book to nullify each others due
balances as per the reconciliation carried out for the settlements.
Document Flow
4. AR Accountant
5. AP Accountant
6. Tresuary
Work Flow
ID
Performer (Work
Title)
Action
Automation
Description
3.
AR Accountant
Manual Record
At the end of every month, AR accountant prints Customer Supplier Netting Report from Manual record
4.
AR Accountant

Netting Report
Create Credit Memo AR &
AP
Manual Record
AR accountant enter a Credit memo (Adjustment) in AP or AR accordingly at the time of settlement.
72
Netting for Payments
Create Credit Memo in Oracle AR and Oracle AP for the same amount for which the Invoice was created in oracle AR in operator account.
Dr. Clearing Account
Cr. A/R National Operators
Accounting Entry (Debit Memo Oracle AP)
Dr. A/P National Opertors
Cr. Clearing Account
Payments
Make Payment in Oracle AP

Dr. A/P National Operators
Cr. Bank
73
Netting for Receipts
Create Credit Memo in Oracle AR and Oracle AP for the same amount for which the Invoices was created in oracle AP in operator account
Dr. Clearin Account
Dr. A/P National Operators
Cr. Clearing Account
Receipts
Make Receipt in Oracle AR

Dr. Bank
74
Product Items Cash Sales Process

Prospects
The process shows the steps that will be taken to record the cash sales revenue for selling mobiles hand sets, mobile accessories and so on as cash to customers.
Procedure
12345-
The AR accountant should run the cash sales request set in the AR.
AR accountant should view log for AR invoice interface programme to make sure that no transaction is stuck in the AR interface.
AR accountant should view output for Auto invoice import programme to make sure that all the transactions are transferd to AR
AR accountant shuld check the AR audit report for reconciliations.
AR accountant should file the Audit report for futer audit.
Document Flow
1. AR Accountant
2. AR Manager
Work Flow
ID
Action
Automation
Description
1.
AR Accountant
Run the interface process for cash sales
System-Assisted
On daily basis AR accountant to run the cash sales request set.
2.
AR Accountant
View log for AR invoice
System-Assisted
3.
AR Accountant
System-Assisted
4.
AR Accountant
View output for Auto invoice import

programme
Reconcile though AR audit report
System-Assisted
AR accountant to view log of AR invoice interface programme to make sure that all the
transactions are processed.
AR accountant to view output of Auto invoice master programme to make sure that all the
transactions are processed.
AR accountant should run the Audit report for reconciliation.
5.
AR Accountant
Manual
Product Items Invoice Creation:
Dr. AR
75
Cr. Revenue Account
76
MOC Commission Calculation Process

Prospects
The process shows the steps that will be taken to record the MOC commission. The MOC commission calculation is calculating MOC commission on the GSM
overseas call charges, GSM Incoming Roamer Overseas Calls and Forwarding feature. Tabs system has the price list for international calls to different destinations
according to MOC charges, Tabs system calculate the international calls charges based on MOC charges + 10% as ZAIN share. MOC is stand for Ministry of
Communications.
Procedure
123456-
The AR accountant should print international call sharing report ( MKSINTSH) from TABS
The AR accountant should reconcile the TTSE report figures with TABS report for MOC commission %.
The AR accountant should record the MOC % in GL by passing a journal entry.
The AP Dept. should reconcile between GL & MOC invoice before recording and approving the invoice in Oracle AP.
The AP manager should review and approve the MOC AP invoice.
The AR account should pass the Adjustment JV for the descrepancies.
Document Flow
1234-
AR Accountant
MOC
AP Accountant
AP Manager
Work Flow
ID
Action
Automation
Description
1.
AR Accountant
Print TTSE Report
System-Assisted
AR accountant prints TTSE report from Tabs system.
2.
AR Accountant
Print Int'l calls revenue sharing Report
System-Assisted
AR accountant prints Int'l calls revenue sharing report from TABS.
3.
AR Accountant
Manual
AR accountant reconcile between Int'l calls Report and TTSE Report printed from Tabs.
4.
AR Accountant
Reconcile TTSE Report with Int'l calls

Report
Enter MOC Commission Cost JV
System-Assisted
5.
AR Accountant
System-Assisted
Based on the reports and calculations AR accountant enter the MOC commission cost JV in
GL.
The AR Accountant prints the Journal entries reports.
77
ID
Action
Automation
Description
6.
AR Accountant
Review Journal Entries Reports
Manual
7.
MOC
Send Commission Invoice to AP Dept.
Manual
The AR accountant should review the journal entries report to make sure that, the commission
accrued liability and commission cost amounts are accounted
MOC send commission invoice to AP dept. for payment.
8.
AP accountant
Reconcile MOC & GL amount
Manual
AP accountant reconciles between GL accrual and MOC invoice
9.
AP Accountant
Enter MOC AP Invoice
System-Assisted
10. AP Manager
Approve AP invoices
System-Assisted
AP accountant enter MOC AP invoice for the commission based on the MOC commission
invoice.
AP manager approves the MOC AP commission invoice.
11. AR Accountant
Calculate the Differences
Manual
12. AR Accountant
Pass Adjustment JV
System-Assisted
AR accountant calculate the differences between MOC invoice amount and MOC accrual in GL
for the same period.
AR accountant to pass adjustment JV.
13. AP Accountant
Create Payment for MOC Commission

Invoice
System-Assisted
AP accountant creates payment for MOC commission invoice
Manual
14. AR Accountant
MOC Commission Cost invoice Entry:
Dr. Cost of Sales International Calls (Postpaid)
Dr. Cost of Sales International Calls (Prepaid)
Cr. Accrued Liability (Total Revenue 10% ZAIN share)
MOC AP Commission invoice Entry:
Dr. Accrued Liability (Invoice Amount)
Cr. MOC AP
MOC AP Commission Payment Entry:
Dr. MOC AP
Cr. Bank
MOC Invoice Diff Entry:
Dr. Accrued Liability
Cr. Revenue - International Calls
Cr. Bank
78
Distributors Commission Calculation Process PRC

Prospects
The process shows the steps that will be taken to calculate and record the distributor's commission. And the purpose is to calculate and record
the distributor's commission for the:
Postpaid new lines sale to the subscribers, which done through the distributors Tabs terminal
Postpaid invoices collection, which done through the distributors Tabs terminal
Prepaid Sim card sales commission (1.5KD) that given to the distributors based on the prepaid subscribers first call
Other package Sales, which done through the distributor Tabs Terminal.
1. Postpaid new line sale for subscribers does include the following services:
Post paid Activation Upfront
Postpaid Activation or Upgrade services
Postpaid new lines sales based on the volume slab basis.
Commission will be calculated on the service type basis as per the agreed rate and the same has been defined in the system to calculate
accordingly
Activation Up-Front (postpaid /Prepaid)
Fixed amount of money per line sold (e.g. 10 KDs per line sold)
Commission will be paid at distributor level
For Postpaid Selling of New Lines will be considered
For Prepaid Activation Date (First Call Date) will be considered
2. Postpaid invoices collection:

Post paid invoices billed amount collected during the month; calculated @ 3% commission payable to the distributors
Postpaid invoices billed amount collected under Residual mode; to meet the criteria as follows:
i)
Line must be sold by the Distributors
ii)
Commitment to retain the subscriber above 12 months
iii)
Collection must be received before the end of the following month
iv)
Commission Paid @ 3% on local calls only
3. Prepaid Sim cards sales commission:
For the prepaid transaction at the time of sale of RC cards 3.5KD discount will be provided on the invoices and the balance amount of
1.5KD will be released to the distributors based on the prepaid subscriber's first call made.
79
4. Other Packages:
As per the need of the business and time, accordingly the introduced new packages which sold by the distributors through their Tabs
Terminal will be considered for the commission scheme as per the agreed rate in the concept paper i.e. EGO, Eezee Promotion, etc.,
SYSTEM SUPPORT BY TECHNICAL SPECIFICATION
Activation Up-Front (postpaid /Prepaid)

Fixed amount of money per line sold (e.g. 10 KDs per line sold)
Commission will be paid at distributor level
For Postpaid Selling of New Lines will be considered
For Prepaid Activation Date (First Call Date) will be considered
Volume (Extra Commission for Activation Up-Front)
Extra commission (fixed amount of money) paid per line sold when some volumes are achieved
Extra commission depends on the slab, for example:
0-50 lines.. 2 KDs per line
50-100 lines .. 3 KDs per line
100-150 lines 5KDs per line
150+ lines .. 6 KDs per line
System has to be able to support at least 10 slabs
Different slabs and commissions levels need to be developed per postpaid and prepaid
The total amount to be paid is required at distributor level
As mentioned before, levels will be defined at a later stage
Levels, number of slabs, slabs ranges can be changed anytime
Activation or upgrade of services (Only for postpaid)
Commission paid for the activations or upgrades of services done by the distributor
o It is a fixed amount per activation or upgrade
80
Claw-back (charge-back) (for postpaid and prepaid)
Penalty charged to the distributor when a customer disconnects the service within a given timeframe (e.g. 6 months)
Timeframe may be different for prepaid and postpaid
Timeframe basis will be months (not days or weeks)
Penalty will be a fixed amount of money (e.g. 3 KDs per line disconnected)
o It may be different per type of service (e.g. gold prepaid line, silver postpaid line, Lana packages, etc.)
Reconciliation will be done on a monthly basis
Penalty will be charged to the distributor one month after the disconnection, for example:
o Customer disconnects the service on the 15th of July
o Penalty will be charged on the August commission cycle
Levels can be changed whenever is required
o IT has to be able to incorporate the new levels in a short period of time (days)
Bill Collection (Only for POSTPAID)
Commission paid to the distributor for collecting the bills on behalf MTC
Commission will be based on a fixed percentage (e.g. 3%) of the total amount collected
Residual (Only for POSTPAID)
Commission paid to the distributors based on a percentage of the customer bill

Commission will be based on a fixed percentage (e.g. 3%) of the total bill during a period of time (e.g. 24 months)
o IT has to be able to incorporate the new levels in a short period of time (days)
o
Please find attached a more detailed explanation of the airtime commission (just in case was not 100% clear)
81
Airtime Commission,
1- Airtime commission will be paid to the distributor only on his own base of postpaid subscribers i.e. only subscribers that were activated through his own
point of sales system (TABS).
2- Airtime commission will be paid for a limited period of time that starts from the date of activation and ends after 18 months for example. The period of
time (18 months) is variable and adjustable however, its the same for all distributors and should be based on days (not months or years).
3- Airtime commission is a percentage of the subscriber total airtime i.e. international calls, monthly subscription fees and taxes (if any) should not be
included in the calculations of this commission.
4-The distributor will be entitled for the commission ONLY if the customer pays the bill within 30 days from the date of issuing the bill any payment past 30
days should not be included in the calculation.
5-The percentage and the period of time are variable and adjustable.
Example:
The total bill for
a-KD 45.00
b-KD 10.00
c-KD 43.20
d-KD 00.00
a customer X was KD 98.20 and the bill was issued on 1st of January detailed as the following,
Airtime
Monthly subscription fees
International calls
Taxes
Airtime Commission percentage will only be calculated for KD 45.00, which is the total airtime on his bill if he pays the bill before January 31.
If he pays his bill in partials i.e. he pays KD 60.00 on 15 Jan. and the remaining
In the case that the customer has a LANA package activated (Lana 12.5, Lana 17.5, etc.), the system should be able to calculate the cost of the local airtime
and apply the decided percentage to that amount of money.
For example:
A customer has a postpaid line with a LANA 17.5 activated
The system will need to calculate the cost of the local airtime
Hence, system should calculate the number of local minutes used by the customer during one month and multiply them by the cost per minute
And then in order to calculate the final commission, the total amount calculated in the previous point will need to be multiplied by the residual percentage
mentioned above.
Procedures
a)
b)
c)
d)
The AR accountant should print the distributors commission report from Tabs
The AR accountant should review the distributor's commission components with the service wise detailed Distributors commission report.
AR accountant should process the document for the approval of commission
Revenue Manager should review and approve the same document to release the commission to the distributors.
82
e) AR accountant should send the approved copy of the commission report to the Indirect Sales and Indirect Sales Stores Department and
Customer Care Department for the appropriate actions from the concerned.
AR accountant should record the commission expenses at the every month end by accruing the amount payable to the distributors with respect
to the commission scheme
Journal entries by AR Accountant while at accruing the month end expenses
Commission Dist. Expenses account
Incentives Dist. Expenses account
To Accrued Expenses _ Commission _Distributor A/c.
Cr.
Dr.
Dr.
Journal entries by Customer Care Department for the PRC adjustment effect in GL
Accrued Expenses _Commission _Distributor A/c
To A/R Prepaid Dealer General A/c
Cr.
Dr.
Journal entries by Sales Department while at issuance of invoice in Tabs effect in GL

A/R Prepaid Dealer General A/c
To Deferred Income Airtime not used EEZEE
Cr.
Dr.
83
Doubtful Debts Provision Process

Prospects
The process shows the steps that will be taken to calculate and record the monthly doubtful debts provision and match it with GL, the doubtful debts provision
calculations is based on when ZAIN deliver the collection batches to the legal agencies for collection.
The provision is an estimation of uncollectible debts by the company which is to be provided in the income statement. ZAIN assume provision as 60% of the batch
value for B batch upto 4 months and 100% for all the remaining batches.
ZAIN deliver the collection batches to the Collection Agencies for their follow up with customers to collect bad debt in a predefined time period. Once the agreed
term of the collection period is over, then collection Agencies should return the collection batches to ZAIN.
On receipt of the collection batches from the Collection Agencies, ZAIN will terms the batches' as Legal Batches /Cases and assume 100% provision on total legal
batches amounts and forward for the debt batches to the Legal Agencies for their necessary action to recover from the customers who turned totally as bad debts to
ZAIN.
Procedure
The AR accountant should Print System generated report form TABS (MCHCOLPRO) on monthly basis for doubtful debts based on the legal agencies.
The AR accountant should recalculate the monthly doubtful debts based on the legal agencies excel sheet.
The AR accountant should compare the doubtful debts calculation amount with the doubtful debts provision in Oracle GL.
The AR accountant should calculate the difference between calculated doubtful debts and doubtful debts provision in GL.
If the doubtful debts provision amount in GL is less than the calculated doubtful debts provision amount, AR accountant should pass the journal entry for the
required value.
The AR manager should review and approve the doubtful debts journal voucher.
The AR accountant should file the required documents for the future audit.
84
Document Flow
1- AR Accountant
2- Revenue & AR Manager
Work Flow
ID
Action
Automation
Description
1-
AR Accountant
Print Tabs provision report
System-Assisted
23-
AR Accountant
AR Accountant
Manaual
Manaual
4-
AR Accountant
Update excel sheet for GL comparison

Match Monthly Doubtful Debts to GL
Amount
Calculate the Differences
At the end of every month, AR accountant should print doubtful debts provision report from
TABS system.
AR accountant should update exel mainted template to comare GL provision.
AR account matches the calculated doubtful debts provision amount to the doubtful debts
provision in Oracle GL.
If the doubtful debts provision budget amount is less than the calculated doubtful debts
provision amount, AR accountant calculates the difference between both amounts.
Manual
85
ID
Action
Automation
Description
5-
AR Accountant
System-Assisted
AR accountant creates a journal entry in the GL to pass the required additional provison
67-
AR Manager
AR Accountant
Create journal entry to pass the

variance
Approve the Doubtful Debts JV
System-Assisted
Manual
AR manager approves the Doubtful Debts journal voucher.

Doubtful Provision invoice Entry:
Dr. Expenses Provision Doubtful debts
Cr. AR Provision Subscribers Invoices
86
AR Write-off Process
Prospects
The process shows the steps that will be taken to write-off the receivable balances for the postpaid subscribers that have debit balances and they get an approval to
write-off their debit balance.
Procedure
To reduce or remove cost of carrying debt and stay focus on active AR Accounts and Fairness to the Financial Statements. Write off covers the following items:
Bad Debts with no documentation
Bad Debt with customer who are passed away
Bad Debt with customer residing abroad
Bad Debts related to pagers
Bad Debts related to legal cases lost by MTC against the customers
Corporate debts with bankrupt companies / individuals
Bad Debts with all legal actions and older than 4 years on yearly basis
Amounts below a certain ceiling. (KD 30) after 4 months from the date of transfer to legal agency 1st stage.
The process does include the below steps:

1234-
The AR accountant should reconcile the detail report userwise on MARE with transaction detail report for write-off transactions.
The AR accountant should query the write-off transaction in Oracle AR.
The AR accountant should apply the write-off transactions to postpaid original transactions.
Document Flow
1- AR Accountant
2- MOC
87
3- AP Accountant
4- AP Manager
Work Flow
ID
Action
Automation
Description
1.
2.
3.
AR Accountant
AR Accountant
AR Accountant
System-Assisted
System-Assisted
Manual
At the end of the month, AR user prints the Detail Report Userwise on MARE from Tabs system.
AR accountant prints Transaction detail for write-off transaction type report from Oracle.
AR accountant reconcile between Transaction detail Report printed from Oracle AR and Detail
Report Userwise on MARE printed from Tabs.
4.
5.
6.
7.
AR Accountant
AR Accountant
AR Accountant
AR Accountant
Print Detail Report Userwise on MARE

Print Transaction Detail Report
Reconcile Detail Report Userwise on
MARE with Sales Transaction Register
Report
Query Write-off Transactions (CM)
Apply Write-off transactions (CM)
System-Assisted
System-Assisted
System-Assisted
Manual
8.
AR Accountant
Manual
AR accountant query write-off transaction imported from TABS system

AR accountant apply the write-off transaction.to original postpaid invoices by category.
The AR accountant should review the journal entries report to make sure that, the write-off
amounts are accounted
AR Write-off Entry:
Dr. Adjustment Account (Write-off)
Cr. AR Postpaid Subscribers
88
AR In House Debit Note Process for AR Balances

Prospects
The process shows the steps that will be taken on every month to delete / remove the receivable balances in the in-house category contracts / subscriptions by the
Revenue Accountant. Generally all the in-house category receivable balances are moved to their respective intercompany account in the General Ledger by
removing from tabs and creating a Debit Note for the same value.
Manual predefined excel format will be used for creating the monthly Debit Note with detailed information of outstanding amounts in each subscriptions.
The following category and contracts will be used for this process:
MTG Dues from Staff Trade Receivables for the Telephone Charges
Atheer Contracts Dues from Atheer Employees (Contract# 936490/299943/1265416)
Repeater's invoices and other's
Procedure
To eliminate the cost of carrying debt by charging the same to the respective in-house accounts on monthly basis by removing the AR balances from Tabs.
The following steps have been followed to remove the AR balances from Tabs and charge to GL Accounts:
Use Tabs to run "DISTRIBUTOR SALES REPORT FOR SILVER TO BRONZE [MKSAGEROM]" report to get the MTG category contract wise AR
balances on monthly basis after the billing process completed.
For Atheer Contracts; use Tabs customer service information to print the Statement of Account for the Subscriptions.
Repeater's get the information's from the concerned department IT / Network
Prepare the pre defined Excel Debit Note Format with the details and obtain the approval from the department manager.
Prepare the AR balances removal request form - Mani Adjustment and obtain the approval from the department manager in order to move the charges from
Tabs to respective GL Accounts.
Load the AR Balance information on the pre defined DATA Loader sheet in order to automate the posting in TABS to remove the same from the respective
contracts
89
After uploading the Data Loader transactions in TABS; obtain the MARE Reports from TABS to check and tally the amounts removed from TABS same as
request Approved Form and the Debit Note sent to the concerned parties.
Document Flow
5678-
Revenue Accountant
Department Manager
In House Department
Clients
Work Flow
ID
Action
Automation
Description
9.
Revenue Accountant
SystemAssisted
After the billing completed on every month, Revenue Accountant prints the Detail Report under
Tabs to identify the AR balance amounts and export the same information's into the excel format.
10.
Revenue Accountant
11.
Revenue Accountant
Print Detail Report from Tabs for the MTG

category - Contract information's and
Print the Statement for Atheer
Prepare Transaction Detail Report in
Data Loader Format
Print Test Charges Removal Request
Form CN in TABS
SystemAssisted
SystemAssisted
12.
Revenue Accountant
Print MARE Reports from TABS
SystemAssisted
13.
Revenue Accountant
Manual
14.
Revenue Accountant
Manual
Revenue accountant Prepare the Data Loader sheet from the excel sheet which contains AR
balance amount information's from the Tabs.
Revenue Accountant should prepare the request form in Excel pre defined format; to obtain the AR
balance amounts to be moved from the TABS to their respective accounts after the approval
obtained from the Department Manager.
Revenue Accountant should print the MARED reports from TABS for all the AR amounts removed
from the TABS in order to confirm all the AR Charges moved as per the approval obtained by the
Department Manager and attach the same with the removal request.
The Revenue accountant should review the journal entries report to make sure that, the Removal of
the AR amounts are accounted properly
The Revenue accountant should file the transaction reports for future auditing.
AR Test Charges Delete Entry:
Dr. Revenue Accounts-Linking with BCD
90
AR Test Charges Delete Process

Prospects
The process shows the steps that will be taken to delete / remove the receivable balances on the Test Lines by the Revenue Accountant. Normally all the test
charges are carried out under
business rule.
ZN1 category under the receivables; exceptional cases are noted for the BSIM Team whereby many categories used as per the
Generally BSIM and Marketing Department will carry out the monthly testing of the charges on the services on live system. All the test charges will create a same
impact as of the normal billing process in TABS. Hence the Test contract/subscriptions carryout the test receivable amounts which inflate the revenue due to the
billing/charging process. Due to this reason the inflated revenue required to reverse in the same month to nullify its effects on revenue and receivable balances.
The following Contracts have been used by the BSIM Test Contracts:
1349901, 1419322, 216642, 216645, 216647, 216644, 1423812, 216655, 467610, 317809, 336957, 1419366, 336959, 1419318; 1411733 and marketing use
Contract 968068.
Procedure
To delete or remove cost of carrying debt as well as the inflated revenue reverse the same bill code used for the testing purpose by using MANI Transaction under
TABS. This manual adjustment action will reverse the original test journals created while doing the tests on services.
The following steps have been followed to remove the Test Charges:
MTCDW.FINANCIAL 15 - Test Charges report will be generated by connecting through Oracle9iASDiscover and down load to excel report for the Bill Code
wise information on Test Contracts
Load the Test information on the pre defined DATA Loader sheet in order to automate the posting of the Test Removal charges in TABS
Prepare the Test Charges removal request form for the Mani Adjustment and obtain the approval from the department manager for the same
If any credit balances on the subscriptions found; use BCD "90A" Interchange between subscriber accounts for same value to remove the Test charges.
After uploading the Test Charges transactions in TABS; obtain the MARE Reports from TABS to check and tally the amounts removed from TABS same as
request Approved Form.
Document Flow
9- Revenue Accountant
91
10- Department Manager

11- BSIM Team
12- Marketing Team
Work Flow
ID
Action
Automation
Description
15.
Revenue Accountant
Print Detail Report BCD Wise on Oracle

Discoverer
SystemAssisted
16.
Revenue Accountant
Prepare Transaction Detail Report in

Data Loader Format
SystemAssisted
17.
Revenue Accountant
18.
Revenue Accountant
Print Test Charges Removal Request

Form CN in TABS
Print MARE Reports from TABS
SystemAssisted
SystemAssisted
19.
Revenue Accountant
Manual
20.
Revenue Accountant
Manual
Agreed fixed last Date of every month, Revenue user prints the Detail Report BCDwise on Oracle
Discoverer system; to identify all the Test Charges with amounts and export the same information's
into the excel format.
Revenue accountant Prepare the Data Loader sheet from the excel sheet which contains the test
data information's from the Oracle discoverer. Data loader also prepare for the credit balances
available in the subscriptions under Test Contract to nullify the same through Mani IN transaction
in TABS.
Revenue Accountant should prepare the request form in Excel pre defined format; to obtain the test
charges to be removed the TABS by the Department Manager.
Revenue Accountant should print the MARED reports from TABS for all the Test charges removed
from the TABS in order to confirm all the test charges removed as per the approval obtained by the
Department Manager and attach the same with the removal request.
The Revenue accountant should review the journal entries report to make sure that, the Removal of
the Test charges amounts are accounted
The Revenue accountant should file the transaction reports for future auditing.
AR Test Charges Delete Entry:
Dr. Revenue Accounts-Linking with BCD
92
Sales Returns by the Distributors - Process

Prospects
The process shows the steps that will be taken to record the distributors sales return items to ZAIN which was earlier charged to them through the sales invoice.
The sales team should intimate the AR with proper approved document by providing the valid documents to support the items earlier sold to the Distributor is return
to ZAIN
Inventory team should support the sales return transaction by the STKR for receiving such items back in their inventory as a sales return from the respective
distributors.
Procedure
AR accountant should get the distributors invoice for the return items
AR accountant should get the STKR from Inventory for the sales returns.
AR accountant should obtain the request letter from Sales Team
AR accountant should prepare the credit advice for the Sale Returns.
AR accountant should obtain the approval from the AR Manager on the Credit Advice Note
AR accountant should send the approved credit Advice note to the Customer Care Department
Customer care should provide the credit to the respective credit under specific contract as per the Credit Advice Note.
AR account should obtain MARE report from Tabs to confirm the correctness of the transaction done by the customer care department.
Document Flow
12345-
AR Accountant
AR Manager
Customer Care Accountant
Customer Care Manager
Sales Team
93
Work Flow
ID
Action
Automation
Description
AR Accountant
Manual
AR accountant should obtain the request letter from sales return documents from Sales as well as
STKR from inventory as supporting doc for the transaction
AR Manager
Manual
AR manager approves the distributors Sales return transaction and items.
AR Accountant
Obtain the request letter from the sales

and STKR from inventory for the sales
return transaction credit to the respective
distributors with all the relevant
documents.
Review and Approve Credit Advice Note
for the sales return amounts
Forward the approved Credit Advice Note
to the customer care department for the
updating in the TABS system
Manual
AR accountant sends the credit advice note to the customer care department updating the
respective contract of Distributors.
AR Accountant
Manual
Customer Care Accountant
AR accountant send the approved distributor commission Invoice and copy of commission summary
report to AP dept. for recording.
Based on the Credit Advice Note, Customer Care Accountant credit the distributors contract by
manual in the Tabs for the stated amounts.
Customer Care Manager
Send Distributor Invoice and copy of

Commission Reports to AP dept.
Create a credit transaction by manual in
the Tabs for the respective distributor's
contract.
Approve the credit to the Distributor
Contract action
Manual
Manual
Customer Care Manager approve the posting of credit note to the Distributors Contract
RC Commission Expenses Entry:

Dr. Distributors Commission on Prepaid RC Cards
Cr. Distributors Commission Exp A/c
94
Distributors Co_Advertisement Expenses Process PRC

Prospects
The process shows the steps that will be taken to calculate and record the distributors co ad expenses and the issuance of PRC (Product rather than Cash) to the
Distributors against their agreed share of reimbursement of Co Ad expenses.
The PRC scheme is used to replace the existing cash outflow of the company by increasing the sales turnover. The distributors Co Ad PRC calculation process
purpose is to calculate and record the distributors Co Ad for the:
Advertisement expenses incurred by the distributors during the calendar period as per the agreed terms with Zain
Procedure
Indirect sales will provide the information with standardized form to Revenue Management
2.5% incentives will be added to the claim as a commission on sales in the form of PRC
Revenue Management will review and approve the documents as per the contract
Revenue Management will forward the information to the Customer Care Department to update the amount for each distributors in TABS system
Revenue Mangt will forward a copy of the same to Distributors Dept and Sales, Stores
Revenue Mangt will instruct to use the defined bill codes for RC Card xx single and RCard xx pack of 50 which is used to sell against the PRC against
the Co Add amount
Sales department will create contract under VND Categories for the Distributors.
Sales department will raise the invoice without discount against the claim sheet to the Distributors.
Customer care department will credit each distributors contract as per the report sent by Revenue Management
Distributor dept will inform the distributors about the Co Add approved amount on which they may collect the RC card KD XX
Sales dept will issue the invoice without discount as per the instruction by Revenue Management
95
Document Flow
1.
2.
3.
4.
5.
AR Accountant
AR Manager
Customer Care
Sales Manager
Stores
Work Flow
ID
Performer (Work
Title)
Action
Automati
on
Description
AR Accountant
Manual
Receive the claim sheet form with duly filled and Approved by the Indirect Sales
2
3
AR Accountant
AR Manager
Manual
Manual
AR accountant creates PRC Credit advice for distributor's Co Ad expenses based on approved claim sheet
AR manager approves the adjusted distributors Co AD excel PRC Credit Advice.
AR Accountant
Manual
AR accountant send the approved distributor Co Ad PRC credit advice report to the customer care Dept
and Copy to Sale, SSP & Distributors Dept.
Customer Care Dept
Receive the claim sheet form with duly filled and

Approved by the Indirect Sales
Creates Distributor PRC Credit advice
Review and Approve adjusted Excel Co AD PRC
Credit Advice
Send Distributor PRC Credit advice to Customer
Care Dept and copy to Sales, SSP and Distributor
Dept.
Create credit advice transaction for all
Distributors Co Ad claim amount under their
respective contract
Manual
Customer care dept. accountant credits all distributors contract as per the PRC Credit Advice under their
respective contracts in TABS as per the documents sent to them
Customer Care Department (BCD = 97A) for the PRC adjustment effect in GL
Dr. Advertising - expenses account
Dr.Incentive - Dist. expenses account
Cr. Accrued Expenses_ AR _Dist. Contract A/c
Customer Care Department (BCD = 98A) for the PRC adjustment effect in GL
Dr. Accrued Expenses_ AR _Dist. Contract A/c
Cr.A/R Prepaid Dealer General account
Indirect Sales Department while at issuance of invoice in TABS effect in GL
Dr. A/R Prepaid Dealer General account
Cr.Deferred Income Airtime not used EEZEE
96
AR Waiver Process
Prospects
The process shows the steps that will be taken to waive the receivable balances for the postpaid subscribers that have debit balances and they get an approval to
waive their debit balance.
Procedure
Relinquishment of unreachable outstanding debts where the customer incapable to settle his dues from the AR Accounts, Waiver covers the following items:
When the debtor or his/ her representative request for the waiver to reduce or remove of carrying debt balance in their favor.
A very big amount where the customer is incapable to afford it.
Over billing to customer due to billing error
Additional discount on sales (other than identified in the system) like lines activation fees etc
The process does include the below steps:

1234-
The AR accountant should reconcile the detail report user wise on MARE with transaction detail report for waived transactions.
The AR accountant should query the waived transaction in Oracle AR.
The AR accountant should apply the waived transactions to postpaid original transactions.
Document Flow
AR Accountant
AP Accountant
AP Manager
Work Flow
ID
Action
Automation
Description
1.
AR Accountant
Print Detail Report Userwise on MARE
System-Assisted
2.
3.
AR Accountant
AR Accountant
System-Assisted
Manual
4.
AR Accountant
Print Transaction Detail Report

Reconcile Detail Report Userwise on
MARE with Sales Transaction Register
Report
Query Waived Transactions (CM)
At the end of the month, AR user prints the Detail Report Userwise on MARE from Tabs
system.
AR accountant prints Transaction detail for waived transaction type report from Oracle.
AR accountant reconcile between Transaction detail Report printed from Oracle AR and Detail
Report Userwise on MARE printed from Tabs.
System-Assisted
AR accountant query waived transaction imported from TABS system

97
ID
Action
Automation
Description
5.
6.
7.
AR Accountant
AR Accountant
AR Accountant
Apply Waived transactions (CM)

System-Assisted
System-Assisted
Manual
8.
AR Accountant
Manual
AR accountant apply the waived transaction.to original postpaid invoices by category.

The AR accountant should review the journal entries report to make sure that, the waived
amounts are accounted
AR Write-off Entry:
Dr. Adjustment Account (Write-off)
98
Migration from Prepaid to Postpaid Process

Prospects
The process shows the steps that will be taken to record the migration from prepaid to postpaid process.
Procedure
1- The counter staff should create CM adjustment on Tabs system.
2- The AR accountant should print Audit report from Oracle AR.
3- The AR accountant should file the reconciliation reports for future auditing.
Document Flow
1- Subscriber
2- Counter Staff
3- AR Accountant
Work Flow
ID
Performer (Work
Title)
Action
Automation
Description
1.
Subscriber
Request Migration
Manual
The prepaid subscriber request to migrate from prepaid to postpaid.
2.
Counter Staff
Create Credit memo on Tabs System
System-Assisted
3.
AR Accountant
Print Audit report from AR
System-Assisted
The counter staff should create a credit adjustment to transfer the prepaid credit balance to the postpaid
credit balance.
AR accountant should print Audit report form oracle AR
4.
AR Accountant
File the reports
Manual
AR accountant should file the report for future audit purpose.
Credit Memo Creation Entry:
Dr. Deferred Revenue Air Time not Used
Cr. AR Subscribers
99
AR Transfer to GL Process
Prospects
The process shows the steps that will be taken to transfer the AR accounting entries to General Ledger Module. In order to integrates the Receivables with the
General Ledger you have to transfer the Receivables transactions to General Ledger to reflect its effects to the General Ledger Accounts and Financial Statements.
Procedure
12345678910111213-
The period Postpaid & Prepaid Audit report to be printed and reviewed before transferring to the GL.
Revnue recognization process to be done before transferring to GL.
Reconcile the bank statement before transfer receivable entries to the GL.
Make sure that the GL period you transferred to be an open period.
On a Monthly Basis GL system Administator will transfer all Receivables transactions to the General Ledger.
Enter the range of GL dates when submit the transfer to GL request, journal entries in that range only will be transferred.
While transfer to GL you can select to import journals directly into the GL or not (GL supervisor can submit this option in the GL later).
The transfer to GL should be done in summary posting option (Huge transactions can be stopped in the GL interface table).
Any adjustments needed can be done in the Receivables module and transferred to the GL again.
Transferred transactions to GL cant be updated.
If the receivables transactions transferring are completed with error, check the un-posted items report to report the transfer to GL error.
After the Receivables transactions transferring are completed successfully the current Receivables period should be closed.
You cant create transactions in a closed period.
Document Flow
1234-
AR Accountant
Treasury User
AR Manager
GL Supervisor
Work Flow
ID
Action
Automation
Description
1.
AR Accountant
System-Assisted
2.
3.
AR Accountant
AR Accountant
Print & Review the Uncompleted

Transactions Report
Complete Transactions
Print & ReviewAudit Reports
AR user should print and review the Uncompleted Transactions report, uncompleted
transactions entries will not be transferred to Oracle GL.
Complete all the incomplete transactions.
AR accountant should print the audit reports, postpaid & prepaid to review and reconcile
transactions for the period.
System-Assisted
System-Assisted
100
ID
Action
Automation
Description
4.
5.
AR Accountant
Treasury User
System-Assisted
System-Assisted
Based on the end of month reports, AR accountant should perform the required adjustments.
Treasury user should print and review the unapplied receipts report.
6.
7.
Treasury User
Treasury User
System-Assisted
System-Assisted
8.
Treasury User
9.
GL system Admin
Treasury user should apply all the unapplied receipts.

Treasury user should print & review the receipts awaiting remittance report to make sure that
there are no receipts transactions not remitted to the bank.
Treasury user should print and review receipts awaiting bank clearance report to make sure
that all receipt transactions are reconciled and cleared.
GL System Admin submits the Receivables transfer to GL Program.
10.
GL System Admin
Perform Required Adjustments

Print & Review unapplied Receipts
Report
Apply the Unapplied Receipts
Print & Review Receipts Awaiting
Remittance Report
Print & Review Receipts Awaiting
Bank Clearance Report
Submit the Receivables transfer to
GL Program
Review Un-posted Items Report
11.
12.
AR Manager
AR Accountant
Post AR Journals in GL
Reconcile AR with GL
System-Assisted
System-Assisted
13.
Treasury User
Reconcile Cash Mgmt with GL
System-Assisted
14.
15.
Treasury User
AR Accountant

Manual
Manual
System-Assisted
System-Assisted
System-Assisted
GL System Admin review the un-posted items report to make sure that all AR transactions are
posted to the GL interface table.
AR manager to post receivable journals to affect GL balances.
AR accountant reconcile between AR and GL balances for the same accounting period by
printing AR & GL Audit report
Treasury manager reconcile GL cash bank account with bank statement closing balances to
identify any discrepancies in cash position.
The treasury user should file the reconciliation reports for future auditing.
101
Close / Open AR Period Process

Prospects
The process shows the steps that will be taken to close the current receivable accounting period and open the next accounting period.
Procedure
1. The AR transfer to GL program should be submitted in order to close the current receivable period and open the new period.
2. The period should be initially closed pending before open the new accounting period in order to prevent users from entering transactions in previous period
and to have the ability to re-open it again for later adjustments, if needed.
3. Finally the period should be closed permanently after satisfying the business requirements and issue the financial statements in order to keep the accounting
information integrity between the GL balances, receivable sub-ledger balances and financial statements information..
Document Flow
1234-
AR Manager
Treasury Manager
System Administrator
GL Supervisor
Work Flow
ID
Action
Automation
Description
8.
AR Manager
Notify System Administrator
Manual
9.
Treasury Manager
Manual
10.
Temporary Close AR Period
System-Assisted
11.
GL Supervisor
System-Assisted
12.
Permanently Close AR Period
System-Assisted
13.
File the Notifications
Manual
AR Manager should notify system administrator formally to temporary close the AR period
and open the new accounting period.
Treasury Manager should notify system administrator formally to temporary close the AR
period and open the new accounting period.
Based on the received notifications, system administrator should temporary close the AR
current accounting period.
After generating financial statements, GL supervisor should formally notify system
administrator to permanently close the AR period.
Based on the GL supervisor notification, system administrator should permanently close the
AR period.
The system Administrator should file the close & open notifications for future auditing.
102

PAAR-ZAIN KWT Process - Manual - v4 2

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ZaiN - Kuwait

Revenue Management & Accounts Receivable

Revenue Management & Accounts Receivable - Process Manual (ZAIN Kuwait)

Incoming GSM Roamers Revenue Calculation & Invoicing Process.....................52

Revenue Management & Accounts Receivable - Process Manual (ZAIN Kuwait)

Revenue Management & Accounts Receivables

Completion of Billing Process

Postpaid Subscriber requests a service that

Prepaid Air Time Consumption

Deactivate Prepaid SIM Cards

Recognize the Recharge Cards that have

Defer Postpaid Pager / GSM Subscription Fees

Revenue Management & Accounts Receivable - Process Manual (ZAIN Kuwait)

End of Month Closing, Recognize Postpaid

Receiving Outgoing ZAIN Subscribers Roaming

Customer Request to Buy Product Item

At the end of every month, calculate and record MOC commission.

Subscriber Request to Migrate from Prepaid to

Revenue Management & Accounts Receivable - Process Manual (ZAIN Kuwait)

Process Listing and Process Descriptions

Revenue Management & Accounts Receivables

Postpaid Invoicing Process

Prepaid SIM Cards Sales Revenue Process

TABS Report ARRECON 1- AR Reconciliaton

Revenue Management & Accounts Receivable - Process Manual (ZAIN Kuwait)

Distributors Commission Calculation Process

Revenue Management & Accounts Receivable - Process Manual (ZAIN Kuwait)

Sales Returns by the Distributors - Process

Distributors Co_Advertisement Expenses

Revenue Management & Accounts Receivable - Process Manual (ZAIN Kuwait)

TABS Daily Interface Process

Performer (Work Title)

Generate the Daily Interface Text File

Save the Interface File in the Predefined

Review Tabs Interface Request Log File

Run Autoinvoice Master Program

Review Autoinvoice Validation Report

Notify System Admin.

Correct Autoinvoice Errors

Re-Run Autoinvoice Master Program

Review and Print Autoinvoice Execution

File the Reconciliation Reports and Logs

Print Audit report

Revenue Management & Accounts Receivable - Process Manual (ZAIN Kuwait)

Print Audit report for postpaid & prepaid

Postpaid Invoicing Process

Performer (Work Title)

Print Audit Report-Postpaid

Print IVM bicharge Report

Reconcile Revenue by Service Code

Run Revenue Recognation Master

Revenue Management & Accounts Receivable - Process Manual (ZAIN Kuwait)

Revenue Management & Accounts Receivable - Process Manual (ZAIN Kuwait)

Postpaid Subscribers Deposit Process

Performer (Work Title)

Create Deposit Receipt

Create Misc Receipt

Print Deposit Reports

Reconcile Deposit Transactions

Print Journal Entries Reports

Reconciliataion sheet to be prepared

File the Reconciliation Reports

The counter staff create a deposit receipt (CR) on Tabs system