E-

E-TECHNOLOGY
TECHNOLOGYPHILIPPINES,
PHILIPPINES,INC.
INC.
TITLE:
TITLE:
ACCOUNTING
ACCOUNTINGPROCEDURE
PROCEDURE
CLASSIFICATION: LEVEL 2 PAGE NO.: 7 of 15
CLASSIFICATION: LEVEL 2 PAGE NO.: 7 of 15

DISTRIBUTION LIST PAGE REV. STATUS

1  21 41 61 81
2  22 42 62 82

DCBS 1 (PROD, FAM) 3

4


23
24
43
44
63
64
83
84
5  25 45 65 85
6  26 46 66 86

DCBS 2 (LOG, HRD) 7

8


27
28
47
48
67
68
87
88
9  29 49 69 89
10  30 50 70 90
DCBS 3 (SALES, ACCOUNTING) 11  31 51 71 91
12  32 52 72 92
13  33 53 73 93

DCBS 4 (QUALITY CONTROL) 14
15 
34
35
54
55
74
75
94
95
16 36 56 76 96
17 37 57 77 97
DCBS 5 (OTHERS) 18 38 58 78 98
19 39 59 79 99
20 40 60 80 100

ORIGINATOR CHECKED BY: APPROVED BY:

ORIGINATING
DEPARTMENT M. R. PUGAY E.H. LEE
Accounting Head PRESIDENT
DEPARTMENTS

NAME/POSITION SIGNATURE NAME/POSITION SIGNATURE

REVIEWING

E-TECHNOLOGY PHILIPPINES, INC.

Lot 2 Blk. 4, Phase 2 (PEZA) Rosario, Cavite, Philippines 4106
 Tel. Nos. : (046) 437-0712 (13)  Fax no. : (046) 437-0220
E-mail: etech@accessway.ph
This document contains information belonging to E-technology Phils., Inc. and is for circulation within the
company only. Copies shall not be reproduced or passed to other companies without the prior approval of the
management.

DOC. NO.: 4ACCTG-PD-01 ISSUE NO.: 01

EFFECTIVE DATE: March 10, 2003 REVISION NO.: 00
STAMP HERE:

2HQMDC-001-0
2HQMDC-003-0
 E-
E-TECHNOLOGY
TECHNOLOGYPHILIPPINES,
PHILIPPINES,INC.
INC.
TITLE:
TITLE:
ACCOUNTING
ACCOUNTINGPROCEDURE
PROCEDURE
CLASSIFICATION: LEVEL 2 PAGE NO.: 7 of 15
CLASSIFICATION: LEVEL 2 PAGE NO.: 7 of 15

REVISION HISTORY

Rev. Issue Rev. Affect. Implementation

DCN Description of Change Originator
Date No. No. Page/s Date
P-15 N/A ORIGINATION 01 00 N/A M.A. PUGAY 3/10/03

DOC. NO.: 4ACCTG-PD-01 ISSUE NO.: 01

EFFECTIVE DATE: March 10, 2003 REVISION NO.: 00
STAMP HERE:

2HQMDC-002-0
2HQMDC-003-0
 E-
E-TECHNOLOGY
TECHNOLOGYPHILIPPINES,
PHILIPPINES,INC.
INC.
TITLE:
TITLE:
ACCOUNTING
ACCOUNTINGPROCEDURE
PROCEDURE
CLASSIFICATION: LEVEL 2 PAGE NO.: 7 of 15
CLASSIFICATION: LEVEL 2 PAGE NO.: 7 of 15

ACCOUNTING FLOWCHART

DOC. NO.: 4ACCTG-PD-01 ISSUE NO.: 01

EFFECTIVE DATE: March 10, 2003 REVISION NO.: 00
STAMP HERE:

2HQMDC-003-0
 E-
E-TECHNOLOGY
TECHNOLOGYPHILIPPINES,
PHILIPPINES,INC.
INC.
TITLE:
TITLE:
ACCOUNTING
ACCOUNTINGPROCEDURE
PROCEDURE
CLASSIFICATION: LEVEL 2 PAGE NO.: 7 of 15
CLASSIFICATION: LEVEL 2 PAGE NO.: 7 of 15

PAYROLL FLOWCHART ACCOUNTS RECEIVABLES FLOWCHART

DOC. NO.: 4ACCTG-PD-01 ISSUE NO.: 01

EFFECTIVE DATE: March 10, 2003 REVISION NO.: 00
STAMP HERE:

2HQMDC-003-0
 E-
E-TECHNOLOGY
TECHNOLOGYPHILIPPINES,
PHILIPPINES,INC.
INC.
TITLE:
TITLE:
ACCOUNTING
ACCOUNTINGPROCEDURE
PROCEDURE
CLASSIFICATION: LEVEL 2 PAGE NO.: 7 of 15
CLASSIFICATION: LEVEL 2 PAGE NO.: 7 of 15
ACCOUNTS PAYABLE FLOWCHART MONTHLY CASH FLOW FLOWCHART

DOC. NO.: 4ACCTG-PD-01 ISSUE NO.: 01

EFFECTIVE DATE: March 10, 2003 REVISION NO.: 00
STAMP HERE:

2HQMDC-003-0
 E-
E-TECHNOLOGY
TECHNOLOGYPHILIPPINES,
PHILIPPINES,INC.
INC.
TITLE:
TITLE:
ACCOUNTING
ACCOUNTINGPROCEDURE
PROCEDURE
1.0 Purpose
CLASSIFICATION: LEVEL 2 PAGE NO.: 7 of 15
CLASSIFICATION: LEVEL 2 PAGE NO.: 7 of 15
To help and support operational effectiveness by verifying accuracy, correctness and reliability of
accounting data.

2.0 Scope

This procedure is applicable to overall program of E-Technology

3.0 Procedure

Applicable Docs. & Form

Process Activity Responsible
Notes
3.1 Payroll Policies Accounting  Information custody
3.1.1 The Personnel section must inform and give notice Head should be at HR
to the accounting section information about newly section after copied
hired employees on or before they start working. in the payroll
The information consist of the following:
3.1.1.1 Full name
3.1.1.2 Address
3.1.1.3 Date of Birth
3.1.1.4 Civil Status
3.1.1.5 Name/Birthday of dependent (if any)
3.1.1.6 Date Hired
3.1.1.7 Position/Section
3.1.1.8 Rate Monthly/Daily)
3.1.1.9 SSS/TIN/PHIC/Pag-ibig No.
3.1.2 Overtime charges, allowances , perfect attendance  Payroll date is every
incentive and government dues are included in the 15th and 30th of the
payroll schedule. month

DOC. NO.: 4ACCTG-PD-01 ISSUE NO.: 01

EFFECTIVE DATE: March 10, 2003 REVISION NO.: 00
STAMP HERE:

2HQMDC-003-0
 E-
E-TECHNOLOGY
TECHNOLOGYPHILIPPINES,
PHILIPPINES,INC.
INC. Applicable Docs. & Form
Process Activity Responsible
Notes
TITLE:
3.1.3 Cash payroll ACCOUNTING
ACCOUNTINGPROCEDURE
PROCEDURE
and pay slip shall be given on
TITLE: Accounting  Any discrepancy
CLASSIFICATION: LEVEL 2
schedules payday Head PAGE NO.: 7
willNO.: of 15
be adjusted
CLASSIFICATION: LEVEL 2 PAGE 7 of 15 on
the next payroll
3.2 Account Receivables.
The sales summary provided by sales section will be Accounting  Terms of payment s
checked and verified by accounting section before Head a. COD
issuance of statement of account to clients. Remittances b. 15 days
and payments should be properly monitored Post to c. 30 days
Cash receipts journal upon confirmation and receipt of d. 60 days
payment.  Mode of payment
depends on the
client
a. cash
b. checks
c. demand draft
d. fund transfer
e. telegraphic
3.3 Accounts Payable/Check Disbursement or Payment transfer
Procedure  Refer to Statement of
3.3.1 All invoices received from purchasing section shall Accounting Account (4A-001-X)
Head
be reviewed and examined supported by the  Payment preparation
approved purchase order or purchase is every Monday
corresponding materials receiving report and
delivery receipt. Any invoice without the said
attachment and with discrepancy shall not be

Applicable Docs. & Form

Process Activity Responsible
Notes
DOC. NO.: 4ACCTG-PD-01 ISSUE NO.: 01
EFFECTIVE DATE: March 10, 2003 REVISION NO.: 00
STAMP HERE:

2HQMDC-003-0
 honored for payment.. Services and utilities
E-
E-TECHNOLOGY
TECHNOLOGYPHILIPPINES,
PHILIPPINES,INC.
INC.
invoices does not require such attachments .
3.3.2 Disbursements/payment exceeding Php1,000.00  Issuance of cash
TITLE:
shall be paid ACCOUNTING
ACCOUNTINGPROCEDURE
PROCEDURE
in form of check. However, payment
TITLE: payment to supplier
CLASSIFICATION:
of Php1,000.00 orLEVEL
less to2suppliers, contractors and PAGE
below of 15
NO.: 7 Php1,000.00
CLASSIFICATION: LEVEL 2 PAGE NO.: 7 of 15
others creditors shall be paid also by issuing shall also be
checks. All other petty payments and advances supported by the
shall be course to through the petty cash approved Purchase
3.3.3 All vouchers and checks shall be issued in Request 2LP-002-X)..
numerical sequence and be prepared using the Cash advances be
computer or typewriter. Vouchers must be liquidated three (3)
prepared in duplicate. days from the date
3.3.4 The payee or any authorized representative is advance.
required to show identification card to prevent  Collection date shall
release of checks to wrong person. Vouchers shall be as soon as checks
bear the signature of the authorized representative are signed
over his/her printed name. An official receipt must
be requested from the payee or representative  For security and
3.3.5 The following internal control procedure relating internal control in
to check preparation must be observed case of loss check
 For accurate tracing
3.3.5.1 Checks for supplier must be in the name of of payment printed
the company/payee and not pay to cash or name shall be
bearer written in check
voucher (4A-002-X)

Applicable Docs. & Form

Process Activity Responsible
Notes
 Suppliers check shall
be marked cross or
DOC. NO.: 4ACCTG-PD-01 ISSUE NO.: 01
EFFECTIVE DATE: March 10, 2003 REVISION NO.: 00
STAMP HERE:

2HQMDC-003-0
 intended for deposit
E-
E-TECHNOLOGY
TECHNOLOGYPHILIPPINES,
PHILIPPINES,INC.
INC. only
3.3.5.2 Advance signing of check must be  Except in cases that
TITLE:
prohibited
TITLE:
ACCOUNTING
ACCOUNTINGPROCEDURE
PROCEDURE
the signatory will be
CLASSIFICATION: LEVEL 2
CLASSIFICATION: LEVEL 2
PAGE for7 7ofof
outNO.:
PAGE NO.:
1515
important
reasons and only
required checks will
be signed
3.3.5.3 Checks for release and unused check
booklets must be kept in lock or in place
accessible only to authorized person
3.3.5.4 Check voucher must be recorded in  Check voucher (4A-
numerical sequence in the Check Register 002-X) already
Book released must be
stamp PAID
including all
attachments to avoid
duplication of
payments
3.4 Petty Cash Fund
3.4.1 Petty cash of Php5,000.00 shall be maintained to Accounting  This amount can be
Head
pay petty disbursements increased or
decreased when
need arises

Applicable Docs. & Form

Process Activity Responsible
Notes
3.4.2 Any single disbursement from the fund shall not  In cases of urgent
exceed one thousand pesos (Php1,000.00) purchases exceeding
3.4.3 The fund shall only served the purpose it Php1,000.00; petty
has been set up like; delivery expenses, cash can be used but
DOC. NO.: 4ACCTG-PD-01 ISSUE NO.: 01
EFFECTIVE DATE: March 10, 2003 REVISION NO.: 00
STAMP HERE:

2HQMDC-003-0
 transportation, purchase of not stock items, office subject for
E-
E-TECHNOLOGY
TECHNOLOGYPHILIPPINES,
supplies, PHILIPPINES,INC.
janitorial INC.
supplies and small reimbursements
representation and other small expenses using cash
3.4.4 TITLE:
Petty ACCOUNTING
ACCOUNTINGPROCEDURE
PROCEDURE
cash on hand must be tie-up on the
TITLE: withdrawals
CLASSIFICATION: LEVEL
reported daily cash 2 report
position PAGE NO.: 7 of 15 fund
 Petty
CLASSIFICATION: LEVEL 2 PAGE NO.:cash
7 of 15
should at all time be
equal to Php5,000.00
(cash on hand plus
unreplenished
expenses)
 For safekeeping
3.4.5 The fund must be kept in the box under purposes
lock and key. It must be kept and accounted for
separately from collections and other funds or
personal money of the custodian  It is the responsibility
3.4.6 Cash advance made through the fund is of the requesting party
subject to approval by section head and shall be to observe and follow
liquidated within three (3) days from the date of three (3 )days rule
such advances.  Refer to Petty Cash
3.4.7 All liquidation covered by petty cash fund must be Voucher (4A-001-X)
supported by Cash Advance Liquidation form & Cash Advance
(4A-007-X)

Applicable Docs. & Form

Process Activity Responsible
Notes
Prepared by employees who made the advances Liquidation Form
and should be properly checked and approved.
3.4.8 Petty Cash Voucher shall indicate the  All petty cash
date , payee’s name, amount and nature of expenses should be
expenses. checked and verified

DOC. NO.: 4ACCTG-PD-01 ISSUE NO.: 01

EFFECTIVE DATE: March 10, 2003 REVISION NO.: 00
STAMP HERE:

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 3.4.9 Upon release of cash the petty cash by the Accounting
E-
E-TECHNOLOGY
TECHNOLOGYPHILIPPINES,
PHILIPPINES,INC.
INC.
voucher and all supporting documents shall be Head
stamp “paid” with the date of payment to avoid
TITLE:
double payment
TITLE:
ACCOUNTING
ACCOUNTINGPROCEDURE
PROCEDURE
CLASSIFICATION:
3.4.10 LEVEL
Request 2
for replenishment of the fund PAGE NO.: 7 of 15
CLASSIFICATION: LEVEL 2 PAGE NO.: 7 of 15
shall be made by the custodian whenever the
fund’s cash balance range to five hundred pesos
below.
3.4.11 The Accounting Section shall make replenishment Accounting /  Authorized rep.
Assigned
of the fund. should note any
personnel
3.5 Inventory disposal of assets
3.5.1 All company assets such as machineries, tools, with appropriate
equipment, furniture and fixtures has a fiscal year information
inventory to know the status, existence and forwarded to
additions of some items. accounting
 Refer to Inventory
Count Sheet (4A-
009-X)
 Inventory Tag (4A-
3.5.2 Actual count shall be recorded in the Inventory L01-X)
Count Sheet

Applicable Docs. & Form

Process Activity Responsible
Notes
prepared by
accounting must be
attached to set apart
items already
checked and audited
by accounting
DOC. NO.: 4ACCTG-PD-01 ISSUE NO.: 01
EFFECTIVE DATE: March 10, 2003 REVISION NO.: 00
STAMP HERE:

2HQMDC-003-0
  There are items that
E-
E-TECHNOLOGY
TECHNOLOGYPHILIPPINES,
PHILIPPINES,INC.
INC. need no inventory
tag (4A-L01-X)
TITLE:
3.5.3 Raw Materials, ACCOUNTING
ACCOUNTINGPROCEDURE
PROCEDURE
work in process, finished goods
TITLE: Accounting
CLASSIFICATION: LEVEL
and unused factory 2
supplies PAGE NO.: 7 of 15
CLASSIFICATION: LEVEL 2 should have an actual Head/Whse. in PAGE NO.: 7 of 15
inventory count every end of the month by the Charge
concerned section with the assistance of warehouse
in charge and accounting section for verification
and correctness of data
3.5.4 All items counted and checked are enumerated in Whse in charge  Monthly
the inventory list prepared by each section and be Inventory Report of
submitted to accounting section of 5th working day Finished Goods
of the following (2LW-011-X)
 Monthly
Inventory Report of
Materials (2LW-010-
X)
 Monthly
Inventory of
Production Supplies
Report (2LP-008-X)

Applicable Docs. & Form

Process Activity Responsible
Notes
3.6 Financial Statement Preparation
3.6.1 Journalizing of all transaction that Accounting  Attachments are
transpired Head necessary to prove
occurrence of
transaction

DOC. NO.: 4ACCTG-PD-01 ISSUE NO.: 01

EFFECTIVE DATE: March 10, 2003 REVISION NO.: 00
STAMP HERE:

2HQMDC-003-0
 -do-  See Check/Cash
3.6.2 E-
E-TECHNOLOGY
TECHNOLOGYPHILIPPINES,
PHILIPPINES,INC.
INC.
Preparation of all cash disbursements for Voucher (4A-002-X)
each saving and checking account -do-  See Vouchers
3.6.3 TITLE:
Preparation ACCOUNTING
ACCOUNTINGPROCEDURE
PROCEDURE
TITLE: of vouchers payable for all
Payable (4A-004-X)
CLASSIFICATION: LEVEL
item received and 2 on account
purchase -do- PAGE
 SeeNO.: 7 of 15
Cash
CLASSIFICATION: LEVEL 2 PAGE NO.: 7 ofReceipts
15
3.6.4 Preparation of cash receipts journal for Journal(4A-003-X)
all cash receive arising from sales, interest,
dividends and deposit of various unused portion of
cash advances. Accounting  Sales summary
3.6.5 Recording and summarization of sales Head/Sales should be submitted
by sales section for
counter checking
 These schedules
3.6.6 Bank statements are gathered after end reconcile ending
of the month for all saving and checking accounts. balances of each
account involved
 Bank Sources
3.6.7 Preparation of bank reconciliation to determine RCBC Peso, RCBC$,,
checks that are still on hand and outstanding and Equitable PCIB$
to cover all bank charges as of Balance Sheet date  Inventory list from
3.6.8 Setting of monthly inventory

Applicable Docs. & Form

Process Activity Responsible
Notes
Whse are reviewed
and recorded for F/S
enclosure

3.6.9 Preparation of lapsing schedule for fixed Accounting  Depreciation

assets Head charged to operation
DOC. NO.: 4ACCTG-PD-01 ISSUE NO.: 01
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STAMP HERE:

2HQMDC-003-0
 are shown from this
E-
E-TECHNOLOGY
TECHNOLOGYPHILIPPINES,
PHILIPPINES,INC.
INC. schedules
-do-  These schedules
3.6.10 TITLE:
Preparation
TITLE: of ACCOUNTING
ACCOUNTING
necessary account PROCEDURE
PROCEDURE
reconcile ending
CLASSIFICATION:
schedules. LEVEL 2 PAGE NO.: 7 ofof15 each
balances
CLASSIFICATION: LEVEL 2 PAGE NO.: 7 of 15
account involved
-do-  All transaction are
classified and all
3.6.11 Preparation of Trial Balance account changes are
observed
 Result of operation is
shown and
3.6.12 Preparation of Income Statement illustrated. F/S
analysis can be
presented to all
authorized users.
 Financial accounting
cycle is theoretically
3.6.13 Preparation of Balance Sheet and officially done.

Applicable Docs. & Form

Process Activity Responsible
Notes
Asset, Liability and
Equity Position of
the company is
determined
3.7 Monthly Cash FlowBudget Preparation
3.7.1 In preparing the cash budget,, first Accounting  The main
determine the cash balance beginning plus Head component of

DOC. NO.: 4ACCTG-PD-01 ISSUE NO.: 01

EFFECTIVE DATE: March 10, 2003 REVISION NO.: 00
STAMP HERE:

2HQMDC-003-0
 expected collection budget are;
3.7.2 E-
E-TECHNOLOGY
TECHNOLOGYPHILIPPINES,
PHILIPPINES,INC.
INC.
Then subtract total cash disbursements a. Collection from
based on projected payables, budget requirement customers
TITLE:
of each section
TITLE:
ACCOUNTING
ACCOUNTINGPROCEDURE
PROCEDURE
b. Cash
CLASSIFICATION:
3.7.3 Use theLEVEL 2
information from the schedule of NO.: 7 of 15
PAGE disbursements
CLASSIFICATION: LEVEL 2 PAGE NO.: 7 of 15
cash collection and disbursement, the statement of
cash flow is completed and ending cash balances
are determined and established.
3.7.4 In case the budget falls short after preparing the
budget , the management has to provide counter
measure to solve the budget deficit.

DOC. NO.: 4ACCTG-PD-01 ISSUE NO.: 01

EFFECTIVE DATE: March 10, 2003 REVISION NO.: 00
STAMP HERE:

2HQMDC-003-0