Background information
U This document originates from November 27, 2000 to December 08 The Oracle implementation consultant of Han's company for Dongguan???? Products Co., Ltd. and its related LKM group member enterprises to conduct research results.
U This document will serve as a???? The company implements the ERP system to deal with the basic document of module, and as lkm other member enterprises implement ERP system module of reference document.
In view of the complexity of LKM's organizational relationship in Dongguan, in addition to special instructions, this document refers to the Dongguan?? All said that Dongguan???? Products Co., Ltd.
U?? The group's enterprise composition and each subsidiary's abbreviation use General Ledger research report material.
U This report uses the financial public binding information of the General Ledger research report.
U in the survey of Dongguan??, Heyuan?? And???? For example, the report applies to?? Group members.
U This research report is jointly owned by both LKM and D.z.hand.
Business Overview
U at present Dongguan?? All the business in the general Ledger for accounting and management, there is no other accounting system, Heyuan?? There is a curtains account payable, and all the business processes of two companies are operated by hand.
U???? And?? The steel is equipped with curtains accounts, uses the computerized accounting system called MRP, and integrates with the purchase system.
U Dongguan?? And Heyuan??,???? And?? The payment of steel is mainly managed by the accounting department, and the purchasing department is responsible for supplier management.
U at present Dongguan?? And Heyuan?? Payment business to a large extent, the implementation of cash receipts and disbursements system accounting.
U Dongguan?? And Heyuan?? At present, there is no specialized accounting staff to deal with the financial accounting related to the payment.
U???? And?? The steel has the specialized accounting personnel to handle accounts payable, carries on in Hong Kong, the supplier management also is responsible by the purchasing department.
Document content
This document is for Dongguan?? /Heyuan?? /???? /?? Steel to cope with the business of research results, reference?? The business situation of other members of the group mainly includes the following contents:
U supplier Management
U Payable Invoice Management
U expense Reimbursement Management
U Advance Management
U Payment Management
U Payables reports and Inquiries
Supplier management
Dongguan?? and source?? The supplier unified by the procurement Department for Management, purchasing department is in fact the group's department, representing the home?? The company exercises the purchasing function, the accounting department uses with the purchasing department to provide the same supplier code and the name, only records the supplier's main information, does not participate in the supplier's development work, the present supplier mainly provides the production auxiliary material and the maintenance spare parts, the main production raw material steel by the???? And?? Steel is responsible for the supply, a considerable part of the supplier is a one-time transaction suppliers, relatively fixed domestic suppliers have more than 20, has not formed a unified supplier management system documents. Heyuan?? There are more main raw materials domestic suppliers, Dongguan?? The future is also ready to develop more domestic major raw material suppliers.
???? And?? Steel, mainly responsible for foreign steel procurement work, and then resell to the domestic?? Subsidiary, the supplier's day-to-day management is the responsibility of the purchasing department, but the development of the supplier is mainly the responsibility of the company directors.
For more information on supplier management, refer to the Procurement Research report.
Supplier Maintenance
Dongguan??, Heyuan??,???? And?? Steel from the procurement department to collect and collate the supplier information, accounting department does not maintain, for example, the supplier cancellation, mergers and other work has not yet dealt with the provisions.
Vendor Code
Dongguan?? And Heyuan?? The supplier code is determined by the purchasing department and there is no uniform coding rule.
Vendor Credit Lines
Domestic?? No credit line control is used for procurement.???? And?? There are some immature control methods for steel.
Vendor Approval/classification/Terms of payment
The main suppliers are approved by the directors of the company.
Because the steel procurement cycle is very long, often use the prepayment way of settlement, some relatively fixed suppliers to use the week knot or month knot, there are many one-time trading suppliers to use cash settlement.
Payable Invoice Management
The current supplier's invoices are submitted to the purchasing department first, the purchasing department receives the supplier invoice and carries on the check, submits the relevant department manager or the general manager to approve, prepares the payment application form, the accounting department according to the payment application, with the related contract, the delivery list and the warehousing bill and so on documents and the voucher carries on the check approval, arranges the cashier to prepare
If the purchase of freight and miscellaneous goods, then the supplier is generally either separated into several invoices, either on a single invoice through the price of cargo processing, or by other shipping companies to open freight invoices, there is no invoice on the cost of both materials and freight charges.
Because of the current Dongguan?? is still a small vat of taxpayers, the receipt of the supplier invoices on the VAT input tax is not deductible, so if the invoice on the value of VAT, it is also credited to the amount of material purchased in the cost; For the general taxpayer, you can deduct VAT on the input tax, so in the accounts is the value added tax separately.
In general, the accounting department will pay immediately after receiving the supplier's invoice, so the payment documents need to be prepared according to the actual business. Entries are as follows:
Borrow: Stock material or other subject
Credit: cash or bank deposit
At present, there is no supplier information in Accounts payable accounts, for domestic suppliers are not credited accounts payable accounts for liabilities accounting, with the increase of domestic suppliers, will open accounts payable ledger.
Under normal circumstances, Dongguan?? And Heyuan??, and???? And?? Steel is a large number of prepaid payment method, before receiving the supplier of goods prepaid all or part of the payment, the supplier sent goods and provide invoices, the accounting department in accordance with the original supplier of the status of prepaid goods and invoices for write-off. The advance payment is recorded as follows:
Borrow: Advance Payment
Credit: cash or bank deposit
Receipt of vendor invoices for write-off hours recorded below:
Borrow: Stock material or other subject
Credits: Advance Payment
Dongguan?? And Heyuan??, and???? And?? Steel is generally processed in the current accounting period when a vendor invoice is received.
In rare cases, for a partial invoice for the time being no accounting processing and payment operations, wait until the preparation of payment documents in the general Ledger business processing, so partial invoice input general Ledger accounting period may be the receipt of the accounting period does not coincide.
General Purchase Invoice general purchase Invoice Business flow chart
General Purchase Invoice Business process description
Order number
Business process
Business Operation Description
1
Organize delivery Orders
Month-end buyer to arrange the delivery list of all the suppliers, plus the total amount of the month to meet the vendor balance and with the Supplier phone or fax check.
2
Vendor invoice
Supplier and buyer in accordance with the account after the buyer notice and the current month of the cumulative delivery order quantity and amount invoiced, and the invoice to the buyer.
3
Purchase document Check
After receiving the invoices from the supplier, the buyer collates the original purchase order/contract/delivery order/incoming receipt and other related documents, and checks and verifies the goods.
4
Approval of actual invoice signature
After the buyer receives the supplier invoice, according to the actual business process and related responsibilities Division of labor, in turn by the buyer, Procurement Manager, Inventory manager, inventory managers and general manager and other relevant responsible personnel to confirm, in particular, it requires the inventory manager must be based on the type of procurement to determine whether the need to carry out , and the acceptance of the need to be accepted on the invoice has been approved.
5
Payment Application
The purchasing department confirms the payment terms, payment method and payment amount of the supplier according to the receipt of the supplier invoice and the relevant contract terms, and the payment application is made.
6
Invoice Submission
After the invoice is approved by the leader and the warehouse is confirmed, the payment application is submitted to the Finance Department for review.
7
Accounting review
After receiving the invoices and payment applications submitted by the Purchasing department, the Finance department approves the authenticity and accuracy of the invoices according to the contents of the payment application.
8
Invoice matching
After the invoice is approved, the accountant will match the contract/purchase order and invoice provided by the Purchasing department, and check the delivery list of the Inventory Management Department, ensure that the Inventory Management department has received all the goods of the invoice, and also need to confirm that the invoice corresponding to the goods has been accepted into the warehouse.
9
Accounting
When the finance department makes the invoice audit and the matching is correct, the information about accounts payable accounts is recorded directly in the General ledger.
10
Prepare to pay
The accounting department arranges the cashier to prepare the funds and make payment vouchers according to the contents of the payment application and the relevant funds.
General Purchase Invoice Management
You do not have a written vendor invoice business process.
U Financial Department does not follow up the terms of payment for Accounts payable.
U when the purchase order is complete, the purchasing department does not submit to the Finance Department to carry on the fund arrangement, therefore the finance Department cannot carry on the forecast and the plan of the procurement capital expenditure. There is a "Preliminary funding application Form", but because the procurement department to provide the information is not timely and accurate, sometimes waiting to be paid before submitting a preliminary funding application, the financial control function is weak, so later canceled.
U for office equipment and production equipment such as computers need to first Test through and in the inventory note has been accepted, in order to carry out the order of the invoice matching; Other such as office furniture, etc. do not need to be inspected, has received the case can be carried out orders and invoices matching.
U for Dongguan?? Invoice has a discount, the actual business is generally directly in accordance with the amount of discount in the general ledger to deal with the account, and to make payment.
U in general, the invoice amount and the amount of the order is exactly the same, there are very few inconsistencies need to explain the situation, and only the invoice amount is less than the order amount, cannot be the order amount is less than the invoice amount.
U for invoices and orders/contracts, warehousing/acceptance of the matching is not strictly uniform standards, Heyuan?? Relatively good execution, and Dongguan?? is more loosely executed.
U because the Accounting department basically registers the financial information in the general ledger when the invoice is completed and is ready for payment, therefore, there is no invoice pending situation, for the problem of the invoices are generally directly from the procurement department to find suppliers to solve, before the financial department does not carry out accounts processing.
U at present Dongguan?? Domestic sourcing, and Heyuan/shanghai/guangzhou?? , the supplier is generally the development of the ticket to Heyuan?? Company, the raw material cost all by Heyuan undertakes, to the raw material part transfer to other company's does not need to carry on the accounting accounting, but the purchase order destination may be Dongguan or Heyuan/Shanghai/Guangzhou; But the freight invoice has to Dongguan?? The situation, Dongguan?? According to the invoice of the supplier freight, the credit of the record shall be receivable from Hong Kong. , the occurrence of confusion of legal entity.
U The currency and invoice currency and the currency of payment are identical in the purchase order, and there is no case of a cross currency invoice and order matching.
U at present Dongguan?? There are a number of suppliers and customers in the same company situation, mainly????, I hope in the future business for the same company's receivables and payables can be offset.
U Dongguan?? Daily business in the existence of water and electricity, telephone charges, a variety of administrative fees, management fees, etc. in each month or a certain period of frequent recurring invoice business, the current treatment is every time to get the relevant invoices or other payment documents by the accounting staff in accordance with the actual business situation hand-handled, Hope to provide a simple and quick way batch processing.
U???? And?? After receiving the invoice, the steel will compare the purchase number, the warehousing number and the invoice number. Invoices need to be approved before they are accounted for in the finance department.
Import Purchase Invoices Import purchase Invoice Business flow chart
Import Purchase Invoice Business process description
Order number
Business process
Business Operation Description
1
Sign a contract
At present, Dongguan/Heyuan/shanghai/guangzhou?? The import of the main raw materials and machine equipment is all through???? And?? Steel is usually made in Hong Kong. According to business needs, take the initiative to purchase steel from Hong Kong and other place, as sales to domestic??。
2
Customs
Hong kong?? After the completion of the purchase, the sale of the form to Dongguan, as it involves Hong Kong and the mainland two companies trade between the mainland is a kind of import trade, so need to declare to the customs.
3
Acceptance Storage
Warehouse according to the information of the Declaration to receive, for the procurement of raw materials and machinery and equipment for inspection and warehousing management.
4
Customs declaration submitted to accounting department
The Customs division according to the actual business process and related responsibilities, in turn by the customs broker, inventory manager, inventory managers and general manager and other relevant responsible personnel to confirm, in particular, the requirements of inventory managers must be based on the type of procurement to determine whether the acceptance of the need to pay, and the need for acceptance of the note has been accepted. Customs declaration after the approval of the leadership and warehouse management, according to Hong Kong?? The relevant notice of accountant is submitted to Dongguan?? Audit the Finance department.
5
Accounting review
When the finance Department receives the declaration form submitted by the Purchasing department, it approves the authenticity and accuracy of the business according to the content of the Declaration form.
6
The
After the declaration is approved by the bill, the accountant will match the contract or purchase order and the Declaration form provided by the relevant department, and check the inventory Management department's warehousing list, ensure that the Inventory Management department has received the invoice corresponding to all the goods, and need to confirm that the invoice corresponding to the goods has been accepted for inspection.
7
Accounting
After the accounting department carries out the declaration and the correct match, the information about accounts payable and internal transactions is recorded directly in the General ledger.
8
Financial arrangements
Accounting department according to the relevant funds and Hong Kong accounting funds arrangements, the cashier to prepare funds
Import Purchase Invoice Management
U for import procurement business, because it is the internal procurement of the group, there is no real invoices, at present, are based on the declaration of account processing.
U for Dongguan?? And Heyuan?? , its import procurement business has only two suppliers, namely?? Steel and????, the currency of the declaration is only one Hong Kong dollar. Under normal circumstances, do not need immediate payment settlement processing, Dongguan?? And Heyuan?? Debit debt to other accounts payable (Hong Kong??) Subjects
U at present Dongguan?? From Hong Kong?? Import purchases may actually include the?? All the members of the Group of domestic enterprises import raw materials, raw material costs all by Dongguan?? Commitment, for the raw material part of the transfer to other companies do not need to carry out accounting, but the purchase order on the destination may be Dongguan or Heyuan/Shanghai/Guangzhou, the same corporate entity confusion.
U import purchase involves the issue of tariffs. Now because of Dongguan?? From the legal point of view is a product of 100% export-oriented enterprises, so it imports of raw materials can be exempted from tariffs. In the domestic resale part of the customs group for the transfer plant verification procedures.
U Customs and Accounting Department of the existence of inadequate coordination, there have been delays in the delivery of the Declaration and so on.
U import business also has a lack of clear process specifications, especially for the relevant customs documents and actual logistics matching and check the operation of the lack of mandatory and normative.
Sporadic business invoices and payable documents
In addition to the accounts payable in the procurement business, in Dongguan?? And Heyuan?? The daily production and operation activities also exist a large number of other sporadic invoices and payables related documents, the existence of these invoices and documents are also part of the enterprise's liabilities.
U wages. Salary accounting is more complex, there is a person responsible for accounting, is currently developing a set of attendance software system to manage.
U tax. At present, Dongguan?? is a small-scale taxpayer, so its value-added tax is not to distinguish between input tax and sales tax, and Heyuan is the general taxpayer, value-added tax to distinguish between input tax and sales tax, so in the procurement and sale will be a large number of use, business more frequent, in the accounts payable in the management has a certain degree of difficulty.
U miscellaneous expenses. Procurement group often have sporadic procurement (cash payments), often a buyer first borrowed, after reimbursement for multiple miscellaneous invoices (also including receipts and other White stripes) Form, but Dongguan?? The repayment period for employees ' borrowings is 14 days (Heyuan??). For 3 days), if the overdue payment is to be fined. When the purchaser borrows money into other receivables, it is generally not allowed to have a working capital.
U water and electricity. At present, Dongguan?? The payment of utilities and so on is directly in the general ledger for the cost of expenditure. But Heyuan?? Is the general taxpayer, it pays the water and electricity charges have value-added tax invoices, water charges by 6% as input tax deduction, electricity is in accordance with the 17% input tax deduction.
U Bank loan interest. At present, Dongguan?? (Generation Heyuan??) In the Citibank Shenzhen Branch has the loan business, needs to pay the loan interest on a quarterly basis, but because the loan litigant does not have the handover clear, and is far apart, the long-term cannot obtain the loan interest receipt, the interest payment cannot carry on the reconciliation.
U telephone charges. Is there a Dongguan?? Agent Heyuan?? In the case of payment of telephone charges, neither party shall record the receivable/payable information for internal transactions.
Buyer Miscellaneous procurement process
Buyer Miscellaneous Procurement Process Description
Order number
Business process
Business Operation Description
1
Loan Application
Buyer to apply for loan according to the need of purchasing business
2
Loan approval
After the buyer put forward the loan application, its superior Supervisor and department manager, the general manager according to the loan application approves the loan amount and carries on the approval
3
Borrowing
The purchaser submits the approved loan application to the Finance Department, the Finance department carries on the audit after the accounting processing, the cashier pays the cash.
4
Invoice approval
Buyer to pay for miscellaneous purchases with cash, to a certain period of time to collate supplier invoices, to the procurement Supervisor, manager, general manager for approval.
5
Submit Invoices
The purchaser submits the approved invoices to the Finance department.
6
Accounting review
The finance department receives the invoices submitted by the purchaser, reviews the accuracy and authenticity of the invoices, and finds the relevant records of the buyer's borrowings for comparison.
7
Reimbursement
After the accounting department approves the invoice, the amount of the buyer's borrowings and the amount of the invoice reimbursement are compared, then the residual loan is recovered, or the amount paid by the purchaser is replenished.
Red Word Invoice
U at present Dongguan?? And Heyuan?? The vendor has a red word invoice processing in the business.
U supplier to invoice after in the event of return processing, if there is no accounting processing of invoices, you can directly return the original invoice to the supplier, in the general ledger accounts do not need to reflect this adjustment; If the accounts are processed in the current period, the original invoice can be canceled directly in the general ledger. If the invoice has been processed in the previous accounting period, the vendor is required to hedge the original invoice with the red Word invoice. If the supplier is a VAT invoice, and has been sent to the tax deduction, you need to obtain a certificate from the local tax authorities to the supplier can open the red Word invoice, the actual operation is more complex.
U receive the supplier Red Word Invoice to check with the original blue Word invoice, for Heyuan?? Such a value-added tax for the general taxpayer, also need to be on the invoice input tax to be washed away.
Expense Reimbursement Management
U Dongguan?? The expense reimbursement is centralized in the finance department to manage in the general ledger.
You do not currently have a written unified staff expense reimbursement process and clear approval authority.
U Dongguan?? The main daily expense reimbursement is concentrated on the road and bridge fee, refueling fee, allowance fee and other travel expenses in the team driver's delivery or other business.
Expense Reimbursement Management Process
Prepayment Management
Dongguan?? Heyuan?????? And?? The advance of steel to suppliers, mainly including prepaid payment, there are some engineering advances.
Prepayment Management Process
Advance application and Write-off
The prepayment of the supplier is applied by the purchasing department.
U advance by the procurement Department for Management and tracking, for advance payment, the supplier of long-term delivery or invoices are not long-term situation, generally by the buyer and supplier contact.
U generally allow only one advance for the same supplier.
U advances are paid before the arrival of the supplier invoices, the receipt of the supplier's invoices to be verified with the prepayment, in general, the advance in the write-off after the remaining part of the balance, by the supplier back. If the supplier is required to continue to purchase a prepaid payment, then reapply for the advance payment, re-examination and payment of advance payments.
U at present the Finance department does not have the tracking to the prepayment, therefore to the supplier's inquiry is unable to carry on, only then the purchasing department has grasped this part information.
You currently have a ceiling on the advance payment for each supplier, and the Finance department is not clear.
Payment Management
Dongguan?? And Heyuan?? The daily business involving payment is handled by the cashier in charge of the accounting department and the cash/bank deposit and payment.
The accounts of the payments are accounted for by the general Ledger of the accounting department directly in the General ledger, while the cashier logs in the cash journal and the Bank deposit journal and checks and adjusts the general ledger accounts.
At present, Dongguan?? The bank payment voucher in the daily payment operation will be issued by the director.
There is a centralized one-time payment approach for different invoices for the same vendor.
???? And?? The payment management of steel is performed using an MRP payable system.
Bank account Information
U Dongguan?? And Heyuan?? The opening bank is relatively concentrated, Dongguan?? Only Bank of China, ICBC, etc., other Heyuan/Shanghai/Guangzhou and other companies in the bank generally have not more than 5.
U bank account is relatively small, Dongguan/Heyuan and other companies in the same bank accounts generally no more than 3, the general account can be used for payment can also be used to collect.
U general accounts can be used for daily business payments, that is, clearing banks, but cash payments can only be made from basic households.
U for the returned or canceled invoice payment, if the actual business operation has been transferred to the supplier account, you can request the supplier to return the payment, the bank is the original payment line.
U Bank documents for general payment are numbered, but the number of different bank documents may be the same, even for different payment documents of the same bank, the number may be the same. Bank collection documents are often not numbered.
。
Payment Terms
U Dongguan?? And Heyuan?? For different suppliers have different terms of payment, the current for most of the way to take a monthly knot, that is, monthly summary of the supplier's delivery form, notify the supplier of invoices after the accounting department to pay according to the invoice amount. Because in fact, usually receive customer invoices on the payment, and in the general Ledger accounting processing, so in the financial can not reflect the monthly invoice payment characteristics, but the majority of immediate payment.
U at present Dongguan?? And Heyuan?? Payment management in the actual does not distinguish between the priority of payment, invoices generally according to the order of the financial department to carry out payment management.
U current domestic?? In the payment, the supplier generally does not give advance payment discount.
Payment method
U at present Dongguan?? Payment method includes three main methods of cash, cheque and telegraphic transfer.
U cashier is responsible for cash management and expense ticket and telegraphic transfer voucher.
U cheque and wire transfer voucher must be signed by the director before it can be used for external payment.
Due reports and queries
Now because of Dongguan?? And Heyuan?? All the day-to-day business is accounted for in the general ledger and management, so there is no separate sub-module, can not complete the independent reporting of the preparation of production work, financial can provide less report function.
At present, Dongguan?? Does not form a complete and clear response to reporting requirements.
There is no invoice aging analysis, and there is no clear invoice aging stage.
The current query to deal with the balance of non-payment of a vendor, because the financial department is unable to carry out statistics before the invoice is submitted to the Finance Department, after the invoice is submitted to the Finance Department, the general Financial department has paid for it, so the financial department is unable to provide accurate vendor balance information. The vendor's account reconciliation is the responsibility of the purchasing department, and the purchasing department is based on the invoices submitted by the supplier or the delivery slip/storage list which has not been submitted to the invoice.
???? And?? Steel use MRP system to manage the business, can produce according to need to use the report, report often to excell on the processing.
Current Business Process Analysis
The current business process analysis is based on the business research, understand customer needs, standardize business processes, the business situation of the concise analysis, can be used as a reference for ERP system implementation.
Key requirements
U set up a suit?? The current situation of the business process and the Accounts payable system required for future business development will liberate a large amount of the information payable from the general ledger while maintaining a high degree of integration with the general ledger system.
U implement effective management of vendor invoices and other related payment documents, and keep track of vendor balances and other financial information, and complete the relevant financial arrangements accordingly.
U to achieve the effective management of bank deposits and cash to ensure the security, liquidity and profitability of capital operations.
Key Process Improvement Analysis
The biggest problem in the current business process is the confusion of corporate entities, the need to ensure consistency of business entities in future processes, and to ensure consistency of financial and physical information.
U current accounting business in a large number of cash receipts and payments system shadow, must improve the financial accounting process, in strict accordance with the principle of accrual basis of accurate and timely accounting.
U make clear written process specification for a large number of daily accounts payable accounting business, make invoice payment, expense reimbursement, advance payment and other related business Operation rules, define the business responsibility and approval authority of each party.
U at present, the accounting department is in the invoice and other original documents approved by the general manager before the audit, it is recommended that the financial value of large actual business vouchers for the audit time before the general manager of the approval of the invoice time.
Implementation difficulties
The coordination of financial and physical management departments is an important factor in the success of ERP system implementation.
The progress of the business process specification seriously affects the implementation of ERP system implementation plan, in particular, the legal entity does not make a clear distinction will lead to system information confusion.
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