Sales System / Accounts Receivables
- A customer inquires about a product and price list.
- A quotation is provided to the client.
- Sales orders are received from customers.
- For cash sale, payment is made and goods are dispatched to customers together
with a cash receipt.
- For credit sale, credit check is performed and credit terms and limits are authorised
by relevant personnel.
- Goods are dispatched to the client together with a goods delivery note.
- Send out sales invoice to customer for payment.
- Once a month, bank reconciliation is done and aged receivable report is generated
to review any outstanding invoices for credit control.
- Send out statement on account for any outstanding balances to client every month
to remind client outstanding balance due.
Purchase system / Accounts payable
- Stores/Warehouse raises a material requisition form to procurement department.
- Procurement department raises a purchase order for the supplier.
- Supplier action the purchase order and despatches goods to the warehouse.
- When goods arrive, they are reviewed and checked against the requisition form and
purchase order.
- Goods delivery note collected.
- Goods received note is generated and attached to requisition form and purchase
order. All the documents are sent to the accounting / finance department.
- Supplier issues a purchase invoice to the accounting / finance department for
payment.
- Finance team reviews the purchase invoice, against the goods received note,
purchase order, and material requisition form.
- A payment is approved by the authorised personnel in the finance department and a
payment schedule is prepared.
- A payment is made within the agreed credit terms.
- A remittance advice is issued to supplier to confirm the payment has been made.
Non-current assets purchase cycle
- Identify the need for purchase or replace non-current asset.
- A requisition is sent to procurement department or company director.
- A search for new non-current asset is performed.
- A decision to finance the non-current asset is decided.
- A supplier with the best offer is selected.
- A non-current asset is delivered.
- A relevant person hired or contracted to install the non-current asset, testing the
performance of the non-current asset and initial training is provided.
- An internal manual is developed for future training or helpline call is provided for
future assistance.
- A periodical maintenance is determine to service the non-current asset.
- The invoice is sent to accounting / finance department for recording the asset and
paying the supplier.
- The serial number is provided to the non-current asset.
- Fixed asset register is updated for the new non-current asset.
- Old non-current asset is sold and Fixed asset register is updated.
Payroll system
Recruiting staff
- Job vacancy is identified.
- Human resource is engaged to develop job position, job description and job
requirements.
- All applications are reviewed fairly against the job position, job description and job
requirements.
- A shortlist of successful job applicants are invited to job interview.
- Job interviews are run in fairness and equally and consistence with relevant laws.
- Successful clients are offered the job.
- All necessary on-boarding steps are followed.
- All initial job induction and training is provided to new staff.
On-going staff
- All employees need to have contracts and remunerations information provided to
payroll administrator.
- A pay day is determined.
- All employees need to be paid on the determined pay day and provided with
payslips.
- If employees are paid on hourly basis. All employees worked hours need
authorisation from their direct line managers before provided to payroll
administrator.
- There need to be a cut-off date for when hours need to be submitted to avoid delay
in payrolling.
- Any bonus needs to be verified and authorised by direct line manager and
information provided to payroll administrator on or before the cut-off date.
- Any payroll queries need to be discussed confidentially and directly to payroll
administrator i.e. incorrect hours or incorrect pay rate or missing bonuses.
Leaving staff
- All leaving employees need to provide leaving notice in writing to direct line
manager and notify the payroll administrator.
- The last payroll should include all pending payments.
- Relevant documents for termination of employment needs to be provided to staff.
- All access to staff needs to be removed from the system.
- Employees need to be removed from payroll system or marked as leaver to
discontinue for future payments.
- All after work services needs to be delt with directly with management for an
example employer references. Unless it’s to payroll queries.
Bank and Cash Systems
Receipts
- All cash need to be kept securely in the safe.
- Any incoming cash need to have corresponding document i.e. receipts.
- Daily takings need to be counted and documented before kept in the safe.
- A security company needs to be hired to carry out regular collection and regular
deposit to the bank account.
- Cash taken out from the safe for bank deposit needs to be documented.
- Cash deposits needs to be reconciled with the credit deposit in the bank statement.
- BACS receipts needs to be updated to the customers accounts.
- Cheques received (lodgements) needs to be approved by senior manager before
deposited in the bank.
- All cheques received needs to be updated on customers accounts.
- Office needs to be kept locked and secured overnight.
- Only authorised members need to know about the safe keycodes and company bank
details.
Payments
- All payments needs to be authorised by manager.
- Small amounts or regular payments can be authorised by senior member.
- All company cheques needs to be kept securely in the manager’s office and signed
before released for purchase.
- Supplier payments needs to be paid consistent with company payment policy. i.e.
when they become due or early to take prompt payment discount.
- Employees salaries needs to be authorised by manager after reviewing payroll
schedule.
- Only approved suppliers with approved purchase invoices needs to be paid.
