New Era Metal Forming Industry

Prepared by: Ruel C. Villanueva

National Highway, Brgy. City Heights

Reviewed by: Marjun C. Baba

General Santos City

TRANSACTION PROCEDURE ON
Date: February 2016
REVENUE PROCESS
The revenue is transaction procedure taken by the entity in recognizing the revenue
from its operation. This includes revenue from walk-in clients and permanent customers.
Narrative Description

Customer
Customer order comprises
related product request
which the sales agent list
including but not limited to
estimation,
quotation,
measurement, due date
confirmation and prepare
provision contract and
other related docs before
sending to the OMG.
Online Management
Group

Responsible for receiving

the
documents
and
verifying details.

Admin 1
Subject for the approval of
the
admin
before
proceeding to the next
department.
Payment
would be in the form of
Down payment or P.O.
from the customer for
partial completion of Job
Order.

Operating
No.

Transaction Flowchart

Customer

Customer
Order

Contract and
other
document

Request for
completion of
attachment,
adjustment,
changes and
lacking of
payments

NO

YES

Forward to
Admin 1
for
approval
Check
payments,
estimation
and pricing.

NO

YES

Advice OMG
to proceed to
provision of
J.O

To
Pp.

Production Department
The PPM would verify J.O.
and check the details
(availability of resources,
lead time etc.) and other
attachment.

From
Pp.

4
Job Order and
other
attachment

(Sales are recorded upon

receiving the partial
payment or P.O.)

Receive J.O
and verify
attachment

After the Job Order has

been receive by the PPM,
they discuss about the
completion of the project.
The production worker
would start the fabrication
upon completion of the
request materials needed
for the project until it was
fully completed and ready
for dispatching

NO
YES

Communicate
with OMG/Sales
for adjustments
or completion
of attachments

Forward
to
Foreman

Request
for
materials

The Dispatching Officer

discuss with the OMG for
the dispatching of the
project which will be
delivered or pick-up by the
customer.

Start
fabrication
and report
completio
n

Ready for
Dispatch

S.O., C.I.
and S.O.A

Customer

S. O. and
other
Attachmen
ts

End

Collection Process
The collector will prepare
the documents before
sending the billing to the
customer. The customer
will
then
verify
and
approve the documents for
the preparation of the
payment. Payment would
be in the form of cash or
checks, then the collector
remit the collection to the
finance department.

Finance Department
The cashier is responsible
for
the
receiving
of
payment and informs the
accounting officer for the
transaction.
The
accounting Officer will then
update
the
Accounts
Receivable records.

From
Pp.

Collector

Sales Invoice,
Charge Invoice
and S.O.A.

Send
billings to
the
customer
for

Receive
cash/chec
k

Remit
collection to
Finance Dept
and secure
to the vault

Update the
account
receivable
records

End

End

New Era Metal Forming

Industry
National Highway, Brgy.
City Heights
General
Santos City
TRANSACTION
PROCEDURE ON
PAYROLL PROCESS

Prepared by: Ruel C. Villanueva

Reviewed by: Marjun C. Baba
Date: February 2016

The payroll process shows the transaction procedure in preparing the payroll.
Payroll accounting is the specific accounting discipline concerned with calculating and
disbursing compensation for company employees.
Narrative Description

Operatin
g No.

Transaction Flowchart

START

Employees
New Era employees used their
Identification when logging in
and out to the office by swiping
to the Asia United Bank Time
Management System

Human Resource Department

Log in/out

1
System files

The Payroll Officer from HR

Department
prepares
the
summary information from the
system. They checked and
compute also the allowances
and deductions before encoding
to the system.
Generate payroll report and
submit to the council for
approval and forwarded to the
Finance Department.

Prepare
summary of
info from the
system

Computation and
encode related
info.

Payroll
Report

To
Pp.

Finance Department

Fro
m

The budget officer well then

review

the

payroll

report

especially the total amount of

Approval
from the
Council
Submitted to
finance for the
preparation of
transfer of fund
and budgeting Return the

salaries and wages for budget

preparation in transferring of

Transfer
Bank E-mail Payroll
Employees
Slip Report to the
bank

Payroll
2 Pay
slip,
Payroll
Report
Payroll
To to
Summary
Human
Report
D
Resource
Pp.

funds to the bank.. Then, they

prepare transfer slip which is
submitted

to

the

bank

for

automatic debit to respective

bank

accounts

of

the

employees.
( The finance department record
salaries and wages in the ledger
after transferring of fund to the
bank )

Human Resource Department

The payroll officer send email of
payroll report to the bank for
reconciliation purposes and print
two copies of payslip for the
employee and safekeeping.
The

payroll

payment

officer
form

prepares
for

the

contribution of the employees,

after the payroll report approved
by the finance department that
was

also

the

releasing

of

payment
payroll

thru

checks.

officer

remits

The
all

contributions to their respective

offices. The generated report
produce from the contributions
made

will

be

filed

Fro
m

The Human
Resource
prepares the
payment form
for the
employees

for
SSS, Phil
Health,
HDMF

safekeeping.

End

Proceed for
payment to
respective
payment
office.

Contributio
n Report

New Era Metal Forming Industry

National Highway, Brgy. City Heights,
General Santos City
TRANSACTION PROCEDURE ON
PURCHASES AND DISBURSEMENTS
PROCESS

Prepared by: Ruel C. Villanueva

Reviewed by: Marjun C. Baba
Date: January 2016

The purchase and disbursements process shows the procedures taken by the entity
in its disbursement activities. It includes preparation of documents related to
disbursement and payment of such purchases.
Narrative Description

Operati
ng No.

Transaction Flowchart

Production Department
Request for materials need for the
Job Order which is not available to
the inventory.

START

Requisitio
n

Purchasing Department
Receive

Inventory officer receive the

request
from
production
department which is subject for
approval. If yes, provide MRF and
forward
to
purchasing
for
processing and if not request
warehouse
In-charge
for
adjustment and completion of
attachment. The local purchasing
receive verified request with MRF
and
double
check.
Perform
canvassing of materials and decide
where to purchase. Then forward
request P.O. to Admin 1 for
approval together with canvass
attached.

Request

NO
YES

Materials
Requisition

NO

YES
Canvass

Admin 1
Receive and verify the forwarded
documents. The P.O #1 sends back

To
Pp.

Fro
m

to the purchasing and the P.O. #2

P.O

will be forwarded to the finance.

cash
Forward
request/P
O w/
canvass
attached
to ADMIN

Purchasing Department
The purchase personnel will then
send the P.O to respective supplier

thru fax and communicate further

for the scheduled time of delivery of

Verificatio
n

purchase materials.
NO

YES

If by cash basis, the purchase

personnel will purchase directly to

Signed
and send
back to
purchasin
g

the supplier upon releasing of

budget from finance department
and

waiting

for

pick-up

the

materials.
(recording of purchase is upon
approval of the finance department

Send P.O.
#2 to
FINANCE
for
budget.

Send P.O
#1 to
Supplier

after making a budget for the said

Releas
e
Budget

request)

To
Pp.

Production Department
The

supplier

will

inform

P.O.
#1

the

From
Pp.

purchasing for the time of delivery.

Upon

arrival

of

materials,

the

warehouse will receive the said

materials

together

with

attached statement of

the

invoice.

They

Deliver
y

Endorse
and
advice
for pickup.

account,

delivery receipt, charge invoice and

sales

PickUp

prepare

Sales
Receipt

acknowledgement report attached

Statement of
account, Charge
Invoice,, Sales
invoice, Delivery
Receipt.

therein is the duplicate copy of

END

source document in send back

Receive Materials
w/ attachments

again to purchase department.

D

Purchase Department
The

local

receive
report

purchase

the
with

personnel
Purchase
Dept.

acknowledgement
original

source

Send to Finance
for request
payment

document and reconcile it with the

Request

for

therein

the

Payment

Acknowled
gement
Report

attached

duplicate

6
Process
Payment

source

document and subject for approval

Send back to
Purchasing
Dept.

with the council and forward finally

to Finance Department.

To
Pp.

Finance Department

From
Pp.

The budget officer will prepare a

check
and
fill
in
the
disbursement voucher and send
to the secretary of the CEO for
the
signatory.
After
the
preparation of the payment, the
cashier is responsible for the
releasing of the check which will
be collected by the suppliers
collector.
The
Finance
Department will then forward all
the source documents to the
purchase
Department
for
safekeeping.
(recording of disbursement to
the ledger is upon releasing of
the payment check )

Acknowledgem
ent Report

Request for
Payment

7
Council for
Approval

CEO for
signatory

Document
s

Finance for
collection

Chec
k

Supplier
Collector

END