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ChecklistfortheSales,DispatchandDebtors1) SALES(Finalproduct,Rejects,Scrap,Storessales)IncaseofExportandDomesticsales1.1Check whether all the Sales of sold stock according to schedules. If not Made the list of the delay

dispatches.

1.2Reasonwiseanalysisofthedelayindispatches.

1.3Quantifythe losses,forthematerialwhicharenotdispatchedwith intimei.e.thecompanyhaspaidthe

Airfreight/seafreight.

1.4Checkwhether all the bills aremade according to the contractsmade. If not list out the discrepancy

SpeciallyevaluatetheERPinthisregardwhetherallthecontractsaremadeinERPornotandsystemofraising

theinvoices.

1.5List

out

the

cases

of

delays

in

dispatches

for

sold

&

unsold

stock

after

production.

Also

find

out

the

average

noofdaystakentoclearthestockafterproduction.

1.6Reviewthesystemofstockrecordsmaintenance.

1.7ReasonwiseanalysisfortheVariance inactualandtargetsalesprices.Thedifferencescanbe identified

fromMIS.ThereasonscanbeascertainedafterdiscussionswithMarketingExecutives.

2) Studythesystemofawardingthetransportcontracts2.1ReviewthesystemofgivingthecontracttotheTransporter.

Sendingenquiryandreceivingquotations. Analysisofcontroloversendingenquiryandreceiving,howfollowedup,recordkeeping,etc. Basisoftakingdecisionmentiononcomparativestatementclearly. Dateofapprovalmentiononcomparativestatement,whoistheauthority,isitclearlydefined.Isthe

delegationproper?

Whichquotationisselectedmentiononcomparativestatement?Givelistofalllapses.3) Insuranceduringtransit3.1

Review

the

system

of

taking

insurance

cover

for

the

transit

policy.

3.2ToensurethatproperdeclarationisgivenforInsurancecoverage.Atnopointoftime,thetotalDispatch

shouldexceedthedeclaredinsurancevalue.

3.3Costbenefitanalysisoftheinsurancepremiumpaidandclaimlaunchedatleastforfouryears.

4) SalesReturn

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Doesthesystemrelatingtosalereturnsprescribelimitsontheauthorityofmanagersatvariouslevelstoacceptreturnofgoods?

Arethereturnedgoodsacceptedonlyaftertheyhavebeenproperlyinspectedfortheirquantityandquality?

Is an inward return note prepared promptly against each sale return, indicating the quantity andspecificationsofthegoodsreceivedback?

Aretheinwardreturnnotesprenumbered?Aremissingnotenumbersdulyenquiredinto? Are returned goods sent to the stores immediately? Are inward return notes entered promptly in

inventoryrecords?

Isacreditnotepreparedonthebasisoftheinwardreturnnote?Isitproperlycheckedwithreferencetotherelevant inwardreturnnotebefore it isapprovedandsentto thecustomer?Areappropriate

entriesmadeinthebooksofaccountpromptly?

Exciseformalitiesfollowedproperlyornot? Is there a proper control over the issue of credit notes especiallywith regard to the authority for

issuingthesame?

Arecreditnotesprenumbered?Aremissingcreditnotenumbersdulyenquiredinto? Isthesalecommissionpaidinrespectofgoodsreturnedrecoveredthroughanappropriatedebitnote. Aresalereturnanalyzedwithreferencetothereason?Areappropriatefollowupstepstaken?

5) Claimsbycustomer Are all claims (for poor quality or for delay in delivery and similar other reason) approved by an

authorizedmanager?Istheapprovalgrantedonlyafteraproperexaminationofthematter?

Isacreditnotesenttothecustomerinrespectofeachapprovedclaim?Areappropriateentriesmadeinthebooksofaccountpromptly?

6) Scrutinyofdebit/creditnotes TheircorrespondingimpactonSalesTax,Exciseetc. WhethertheyareissuedinaccordancewiththeSalesPolicyandtermoftheSalesOrder. Whetherproperlyauthorized.

7) SalesCommission Checkallthediscountsaregivenaspercontractsmadewiththeparty Reconciliationofsaleswithsalescommission.

8) ExportSales Reasonswiseanalysisoftheoverduebills. Lossofoverdueinterestduetodelayinrealizationoftheexportbills.

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Norms of Export trade, imports, process of order booking to production planning, realizationsettlementbenefits,claims,etc.

9) MarketingInternational&Domestic: Arestandardpricelistsmaintained?Isaspecialsanctionfromaseniormanagerrequiredinthecaseof

sales

at

prices

lower

than

the

standard

price?

Doesthesystemofallowingrebatesanddiscountprovideforadequatecontrols?Inparticularisthereaclearcutpolicyforallowingsuchrebatesanddiscounts?Aretheauthoritiesforvariousmanagersin

thisregardclearlylaiddownandaretheyreasonable?

Are special sanctions required in case of sales to those companies/ other enterprises inwhich themanagerialpersonnelorsenioremployeesareinterested?

Isthereawelldefinedpolicyformakingsalestoemployeesatconcessionalprices?Doesitlaiddownanylimitsinthisregard?

Isthereatimelypreparationofawrittensaleorderonreceiptofanorderfromacustomer? Aresaleordersprenumbered?Isalackofcontinuityinsaleordernumberdulyenquiredinto? Isthereaproperauthorizationofcredit,price,quantityandotherimportanttermsofthesaleorder? Is there a systemof fixing credit limit for regular customer?Are these limits approvedby a senior

manager as per the sales policy determined by the top management? Are these limits reviewed

periodicallyinthelightoftheexperiencedindealingwiththecustomer?

Iscreditlimitofthecustomerconcernedcheckedbeforesanctioningthecreditonthesaleorder?Isuptodateinformationontheextentofthecreditalreadyextendedtothecustomerreadilyavailablefor

thispurpose?

Isacopyofeachsaleordersenttothedispatchdepartmentandtheaccountsdepartment? Isadispatchdocument,e.g.agoodoutwardchallan,preparedatthetimethegoodsaredispatchto

thecustomer?Isitmatchedwiththebillofladingorrailwayreceipt/transporterreceipt?

Aredispatchdocumentsprenumberedandmissingdocumentnumbereddulyenquiredinto? Isthereasystemofcheckingeachconsignmentofgoodleavingthepremiseswiththerelateddispatch

document?

Isacopyofdispatchdocument,i.e.goodsoutwardchallan/gatepasssenttothecustomerandtotheaccountsdepartment?

Isanacknowledgementofreceiptofgoodsobtainedfromthecustomerorfromhisagentonthecopyofthedispatchdocument?

DebtorsManagement1) Creditlimitfixation

Reviewthesystemoffixationandmonitoringthecreditlimits Check whether all the important factors (i.e. payment track of the customers, potential of the

customersetc.)areconsideredornot.

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Reviewthesystemofenhancingthecreditlimitsofparticularcustomersoronetime/adhocsanctionstosupplybeyondcreditlimit.

2) Debtorsfollowup ComparedebtorsagewiseDec30th2001,March2002andJune2002; Percentageincrementindebtorsaspercentagetoincrementinsaleforaboveperiod(withreasons); Debtorsoutstandingmore than365days tobe identified (reasons tobediscussedwith concerned

person);

Seethecaseswhereamountisdueforsalemademorethan365days;saleisstillmadeandpaymentisreceivedforsubsequentinvoices;

Identifydebtorshavingmorethan5%valueoftotaldebtors; Followupdonetorecoverthesedues,seerecordsifanymaintainedforthat; Salesmadetodebtorsnotpayingbills Writeoffinaccountswhatisthebasis.Isitreasonable,whoauthorized,isitregularthing. Whetherpaymentaspertermsofpayment. Whethercredittermsaspertermsofappointment. Accountabilityforrecoveryofduesofdebtorsall,geographic. Salespolicyterms Interestschargedondebtorsanddelayincharginginterest;

1. Sales ChecktheBillingBreakUpasperContract&Ensurethesameisfollowed Pricedetermination Conditionsofcontracts AllMaterialsdispatchedisbilled SalesReturns Comparebudgetedprofitwithactualprofit. Pendingsalesorders Checkwhethersaleshasbeenmadeonminimumprofit%age

2. DebtorsLoansandadvances Checkagewiselistingofthedebtors CheckcreditLimitofDebtors Filteroutdebtorsagingmorethanthecreditperiod Investigateintothereasonsofdelayinpayments Ensuretheadequacyofthedebtrecoverymeasuresandrecommendwaystoeliminatetheinefficiency Fixingofcreditloan/advancelimit Authorityformaterialadjustmenttopartiesaccount Interestincomeondebtorsbalanceisseparaterecordedornot Doubtfuldebts/loans Ifcompanyhasgivenloantoanyemployeethanchecktheconditionsandstatusofsuchloan.

3. Scrapsales Procedureforselectionofpartye.g.alternativequotations,tendersetc. Whetherscrapclearediscorrecttype&weighedbeforeclearance. Scrapinvoicesraisedareinaccordancewithcontractrates.