As-Is Report

Organization Structure
A
Group of Companies
Bashundhara Group of Companies having Fourteen subsidiaries.
B

Company
Bashundhara Food and Beverage Industries Limited, Dhaka, Bangladesh

Manufacturing Units
Bashundhara Food and Beverage Industries Limited consists of one manufacturing units.
Work/approval done Another Four manufacturing unit. Total numbers of unit are 05.
1) Flour unit
2) Bakery unit.
3) Water unit.
4) Noodles unit
5) Oil unit

Accounting Process

CONSULTANT

BFBIL FICO Functional Coordinator

BFBIL FICO BPO

TarekHossainChowdhury

Mr. ZahaneAlamShimul

Mr. Belal Hossain

Page 1 of 5

As-Is Report
A

Financial Year
Company follows January to December as its financial Year.

Books of Accounts
Books of Accounts are maintained for the 12 months periods from January to December
every year.

Currencies
Book of accounts are maintained in Bangladeshi Taka (BDT). Apart from the Bangladeshi
Taka (BDT) for the purpose of Exports, the Company are dealing with Euro & USD& Sing
dollar & other

Accounting Structure
A

Journal
Day to day transactions is recorded in journals. Separate journals are maintained for cash,
sales daybook, sales returns book, purchases daybook and purchase returns book.

CONSULTANT

BFBIL FICO Functional Coordinator

BFBIL FICO BPO

TarekHossainChowdhury

Mr. ZahaneAlamShimul

Mr. Belal Hossain

Page 2 of 5

As-Is Report
4

General Ledger Accounting

The Account Groups for creation of GL Accounts:
The following is the various G.L. Groups.
I) Advances.
a) Against Salary-Officers.
b) Against Salary-Staff.
c) Advertising Expenses,
d) Construction Expenses.
e) Against House rent.
f) Land Purchase and Development.
g) Against Motor vehicles.
h) Advance against Purchases (CLPD)
i) Advance to C&F Agents.
j)Advance to vendors(Credit purchases)
K) Advance against Remuneration.
l) Sundry Advances.
II) ID Deposit:
a) Security Deposit.
b) LC Margin Deposit.
c) Bank Guarantee &Margin.
d) Lease Deposit.
Ill) Inventory accounts.
a) Raw Material.b) Packing Material.c) Finished Goods.d) Stores and Spares

CONSULTANT

BFBIL FICO Functional Coordinator

BFBIL FICO BPO

TarekHossainChowdhury

Mr. ZahaneAlamShimul

Mr. Belal Hossain

Page 3 of 5

As-Is Report
IV) Intercompany accounts:
V)Payable for Sundry Expenses.
Account Groups:
Liabilities, Assets, Income, Expenditure. GL account is recognized by description.
5
Voucher Types
Receipt vouchers for Bank and Cash with one Serial Number. Payment vouchers for Bank and
Cash with one Serial Number.
Petty Cash Vouchers are used at Plants and also at Head Office with respective Serial
Numbers.
Journal vouchers.
Two types of Sales Invoices are used one for exports and other for domestic sales.
Purchase Invoices with the name of bill passing voucher.

CONSULTANT

BFBIL FICO Functional Coordinator

BFBIL FICO BPO

TarekHossainChowdhury

Mr. ZahaneAlamShimul

Mr. Belal Hossain

Page 4 of 5

As-Is Report
6

Bank Accounting
A
B
C
D
E
F
G
H

I
J
K
7

The company is dealing with multiple banks with different types of loan facilities.
The company is having Current A/C, STD/SND and FDR with some banks.
The main source of receipts is collections from the Dealers/customers by way of On Line
Bank Receipt/TT/DD/PO etc. and utilization of loan facilities.
The main application of funds is meeting of Operational, Admin & Distribution and financial
expenses through cheque /DD/PO/TT/LC/BG.
Major finance charges like Interest on long term loans, Interest on CC & Overdrafts showing
separately and other minor bank charges are shown as General charges.
LC charges are included in landing charges
Bank Reconciliation Statement will be prepared monthly.
Bank Loan (Project/ Syndication, LTR/MTR) management
i) Sanction limit
ii) Sanction limit availed
iii) IDCP
iv) Installment due date ( Principal together with interest)
v) Outstanding loan balance
vi) Maturity date
vii) Purpose of sectioned loan
BFBIL currently dealing with 13Bank and 19 branches
All the Business transactions are carried out through banks.Based on the bank statements,
the amountsare accounted in the books of accounts
Bank reconciliation is done manually at the end of every day/every month.

Cash Management
Authorized persons maintain cashbooks to record cash Receipts & payments both at the

CONSULTANT

BFBIL FICO Functional Coordinator

BFBIL FICO BPO

TarekHossainChowdhury

Mr. ZahaneAlamShimul

Mr. Belal Hossain

Page 5 of 5

As-Is Report
plant and administration Office. Advance payment to Employee for purchasing Consumable
or capital expenditure.
The following places where cash will be maintained.
a) Cash in Hand Head Office.
b) Cash in Hand Factory Office (Keranigonj).
Cash: Head Office.
Receipts:
The only source of cash receipt is with drawl from bank accounts after getting approval from
the management. Sometimes cash receipts from other sources.
Payments:
All Expenses starting from General and Administrative Overheads. Sometimes Trade
vendors will be paid through cash.
CASH Local Purchase
1) Based on urgency one person from Purchase department will take advance from the
accounts department and buy the material.
2) The same person will settle the account with accounts department with duly certified by
respective authorities.
3) There will be no deduction of VDS & TDS
4) Accounting entries at the time of giving advance to Buyer Mr.Buyer a/c Dr. To Cash a/c.
At the time of settlement at HO
Cash a/c Dr....
CONSULTANT

BFBIL FICO Functional Coordinator

BFBIL FICO BPO

TarekHossainChowdhury

Mr. ZahaneAlamShimul

Mr. Belal Hossain

Page 6 of 5

As-Is Report
To Mr.Buyer a/c
5) On receipt of material at factory Material/factory a/c Dr To Buyer a/c
8
Payment Terms
Sundry Creditors
Payment done by cheques to vendors. Payment terms as per company policy
Sundry Debtors
Receipts from customers are also by On line receipt/cheques/DD/PO/Online deposit only.
9
Loan Management
A

Loan Payment schedule is prepared and maintain in Excel. Monthly basis interest amount
made provision and adjust accordingly.

Every LAON is tracked accurately

Status of LOAN statement generated.

C.

LTR/MTR/PAD Loan Process (Short Term)

During Loan Received
Bank A/C -------- Dr.
LTR/MTR A/C ---------- Cr.
During Interest charge/Provision
Interest Expenses LTR/MTR ------- Dr.
LTR A/C --------------------------------- Cr.
Note : LTR/MTR loan amount increase

CONSULTANT

BFBIL FICO Functional Coordinator

BFBIL FICO BPO

TarekHossainChowdhury

Mr. ZahaneAlamShimul

Mr. Belal Hossain

Page 7 of 5

As-Is Report
During Payment
LTR/MTR A/C ------------- Dr.
Bank A/C ------------------- Cr.
D.

Project/Lease Loan Process (Long Term)

During Loan Received
Bank A/C -------------------- Dr.
Project Loan A/C ---------- Cr.
During Interest charge/Provision (installment Interest part)
Interest Expenses Project Loan ------------- Dr.
Interest Payable Project loan A/C ---------- Cr.
Note : Only interest part create payable
During Payment
Project Loan A/C ------------------------------ Dr.
Interest Payable Project loan A/C ---------- Dr.
Bank A/C ------------- Cr.

Inter-company loan process

CONSULTANT

BFBIL FICO Functional Coordinator

BFBIL FICO BPO

TarekHossainChowdhury

Mr. ZahaneAlamShimul

Mr. Belal Hossain

Page 8 of 5

As-Is Report
10

Budgeting System
Only yearly budget at header level created. Revised budget updated if required

11

Salaries and Advances

A
B
C
D

12

Finance Department prepares the Salary Statement and forward to Bank for payment.
Each employee is maintained as a separate record in the sub ledger.
The finance department handles advance to the employees against salary and in the month
end on that Salary Statement will be prepared after incorporating the proper deductions.
For travel advances, Finance dept gives the advances and accounted against that
particular employee as Advance against Travel. After the tour based on actual expenditure,
an expenditure entry will be booked and the travel advance is reversed.

Taxes
A

Tax on Sales and Purchases

Excise duty payable / paid.
Customs duty payable / paid.
Value added tax payable / paid

Withholding Taxes
1.
2.
3.
4.
5.
6.
7.

Payment to Contractors, Sub Contractors ^Suppliers. 52.

Fees paid for professional services. 52A.
Stevedoring agency, security services. 52AA.
C&F Agency 52AAA
Compensation against acquisition of property. 52C
Interest on Savings Instruments. 52D.
Commission of Letter of Credit 521.

CONSULTANT

BFBIL FICO Functional Coordinator

BFBIL FICO BPO

TarekHossainChowdhury

Mr. ZahaneAlamShimul

Mr. Belal Hossain

Page 9 of 5

As-Is Report

C.

8. Trade license. 52K

9. Trustee fee. 52L
10. Commission of freight forwarding agency 52M.
11. Import and Export of goods. 53.
12. Rent of house property. 53A
13. Collection of tax from resident shipping business 53AA
14. Goods of property sold by auction through sealed 53C.
TENDER OR OTHERWISE
15. Tax from nonresident courier service 53CC.
16. Payment to film actor or actress 53D.
17. Tax from export cash subsidiary. 53DD.
18. Commission, discount, fees. 53E.
19. Foreign buyers agent. 53EE.
20. Interest on savings deposit and fixed deposit. 53F.
21. Insurance commission. 53G.
22. Surveyors of General Insurance company 53GG.
23. Transfer of property. 53H.
24. Collection from real estate or land development 53FF.
BUSINESS
25. Dividends. 54.
26. Lottery
27. Income of non-resident 56
The company is liable to deduct the TDS only at the time of accounting of vendor invoice.
Payment time no need to deduct any TDS
TDS liability will be created by passing a manual entry. The below is the sample entry..
Expenses a/c Dr.
To TDS Payable a/c. ..
To Vendor a/c ..

CONSULTANT

BFBIL FICO Functional Coordinator

BFBIL FICO BPO

TarekHossainChowdhury

Mr. ZahaneAlamShimul

Mr. Belal Hossain

REMARKS
1) We are
deducting the
withholding
tax based on
payment types
like
contract
payment,
salaries,

Page 10 of 5

As-Is Report
E

The liability created above will be paid to the tax authorities.

The following is the sample entry at the time of making payment.
TDS Payable a/c Dr
To Bank a/c.
F
AIT and VAT certificate prepare and forward to vendors.
G
AIT slab wise deduction. Required auto deduction figure generation
report generating from existing system vendor wise
Total bill amount, total AIT amount, Total VAT amount, total VAT/AIT deposit amount.

CONSULTANT

BFBIL FICO Functional Coordinator

BFBIL FICO BPO

TarekHossainChowdhury

Mr. ZahaneAlamShimul

Mr. Belal Hossain

interest
payments,
etc.
2) We are
deducting
withholding
tax on total
amount
or
down
payments
whichever is
earlier

Page 11 of 5

As-Is Report
13

Exports Sales
Export procedures are followed for payment of duty/ exemption of duty/ duty draw back etc.
1) Negotiation with foreign customer
2) Performa invoice sent to customer
3) Purchase order send to BFBIL and also customer open LC against BFBIL
4) Customer tag with LC information
5) Based on LC and purchase order BFBIL delivery the FG.
6) Customer send foreign currency through bank
7) Bank Account update.

14

Trade Sales (Wheat)

Method: Through Printed SO/DO
1) Raw Material like Wheat purchase from Foreign Source.
2) Received in stock
3) Product Requisition Form received from Local Customer through Sales team regarding bulk
wheat

CONSULTANT

BFBIL FICO Functional Coordinator

BFBIL FICO BPO

TarekHossainChowdhury

Mr. ZahaneAlamShimul

Mr. Belal Hossain

Page 12 of 5

As-Is Report
4) Amount received from LOCAL customer.
5) Sales Order create in software against PRF on the availability of customer balance
6) Issue Printed SO/DO to the customer
7) The customer may be sale his printed SO/DO to another Local Customer
Method: Through electronic SO/DO
1) Raw Material like Wheat purchase from Foreign Source.
2) Received in stock&Product Requisition Form received from Local Customer through Sales team
regarding bulk wheat
3) Amount received from LOCAL customer.
4) Sales Order issuethrough software against PRF on the availability of customer balance.

CONSULTANT

BFBIL FICO Functional Coordinator

BFBIL FICO BPO

TarekHossainChowdhury

Mr. ZahaneAlamShimul

Mr. Belal Hossain

Page 13 of 5

As-Is Report
15

Trade Sales (FG)

Method: Through Printed SO/DO
1) Raw Material like Wheat purchase from Foreign/Local Source and go for production
2) Received in FG stock
3) Product Requisition Form received from Local Customer through Sales team regarding bulk FG
4) Amount received from LOCAL customer.
5) Sales Order create in software against PRF on the availability of customer balance
6) Issue Printed SO/DO to the customer
7) The customer may be sale his printed SO/DO to another Local Customer
Method: Through electronic SO/DO
1) Raw Material like Wheat purchase from Foreign/Local Source and go for production
2) Received in FG stock
3) Product Requisition Form received from Local Customer through Sales team regarding bulk FG
4) Amount received from LOCAL customer &Sales Order issue through software against PRF on
the availability of customer balance.

16

Distributor Sales (FG)

CONSULTANT

BFBIL FICO Functional Coordinator

BFBIL FICO BPO

TarekHossainChowdhury

Mr. ZahaneAlamShimul

Mr. Belal Hossain

Page 14 of 5

As-Is Report
1) Raw Material like Wheat purchases from Foreign/Local Source and go for production.
2) Received in FG stock
3) Product Requisition Form received from Local Customer through Sales team regarding
Consumer goods
4) Amount received from LOCAL customer.
5) Sales Order issue through software against PRF on the availability of customer balance.
17

Institution Sales (FG)

1) Raw Material like Wheat purchases from Foreign/Local Source and go for production.
2) Received in FG stock
3) Work Order received from Institution through Sales team regarding Consumer goods
4) Amount received from customer.
5) Sales Order issue against work order on the availability of customer balance or credit facilities.

15

Intercompany Sales
1) Spare parts/FG etc. sales to intercompany.

CONSULTANT

BFBIL FICO Functional Coordinator

BFBIL FICO BPO

TarekHossainChowdhury

Mr. ZahaneAlamShimul

Mr. Belal Hossain

Page 15 of 5

As-Is Report
16

Sundry Debtors/Accounts Receivable

A
SALES PROCESS
1) Requisition from the Distributor by Sales and Marketing (S&M) dept.
2) Delivery Order/ Sales Order (DO/SO) to Stores / Finished Goods Department.
3) Factory delivers the goods against DO/SO
4) Factory will issue VAT challan as per quantity in Delivery Challan
5) Goods deliver to customer through owned/customer/hired transport
6) Sales dept will send invoice to customer.
7) The followings are the different types of sales.
a) Sales (RM, SFGS, FG and Ex. Sales:b) Scrap Sales
Revenues are recognized at the time of delivery from factory after making invoices, when
the risk and reward of ownership of the goods has been transferred to the buyer & There is
no hard and fast rule regarding credit allowed to dealers/customers.
9) Presently sometimes sales return takes place and the material will be replaced to
customer.
10) Return goods will be recycle.
Revenues are recognized when time period of returning the goods has been elapsed.
B

RECEIVED FROM CUSTOMER

1
Most cases the Advance sale is made however sometimes Credit sales from the
customer will be taken.
The payment will be received through On line receipt/TT/DD/PO/Cheque.
The accounts department will issue money receipt using and applying
2
3

The accounts department is maintaining adebtors ledger which contains customers

sub-ledger accounts consisting of regularand one time customers
Bank Guarantee information keep in the system and bank guarantee info will treat as
credit limit

CONSULTANT

BFBIL FICO Functional Coordinator

BFBIL FICO BPO

TarekHossainChowdhury

Mr. ZahaneAlamShimul

Mr. Belal Hossain

Page 16 of 5

As-Is Report
17

Sundry Creditors/Accounts Payable

A
Local Credit Purchase
1) Request from users through the stores to the central local procurement
department(CLPD).The doc name is Store Purchase Requisition(SPR)/Cash
Purchase Requisition(CPR)
2) CLPD will enquire with the supplier/Vendor
3) Once supplier is finalized ,CLPD will issue WORK ORDER to the supplier/Vendor
4) The supplier will send the goods to the stores with either Delivery challan cum
Invoice (DC cum Invoice)or with Delivery challan (DC)
5) Stores people will receive the goods through Material received report (MRR) after
quality certified by Q .C department.
6) Store people will send the MRR to the CLPD department.
7) Vendor will send the invoice to the CLPD
8) MRR & Invoice will be sent to the a/c department by CLPD department for
accounting. For credit purchase VAT & AIT will be deducted.
9) When VAT challan provided by vendor no VDS deducted and also VAT challan
send to F/O for rebate. For Credit purchase VAT & AIT is deducted
10) Material/ Factory a/c. Dr...
To Respective Party/Vendor a/c...
ToTDSPayable.
To VDS Payable...
B

Foreign Credit Purchase

The above process is same credit local purchases.The silent features of Import
procurement are...
REMARKS
The customs
There will be 10% advance to the vendor bank. The import procurement is through duty which is
Foreign procurement department which will procure all types of imports including paid at the
Fixed Assets.
time of import

CONSULTANT

BFBIL FICO Functional Coordinator

BFBIL FICO BPO

TarekHossainChowdhury

Mr. ZahaneAlamShimul

Mr. Belal Hossain

Page 17 of 5

As-Is Report
of goods can
And there will be customs duty, DF VAT and other duties and taxes, clearing and be claimable
forwarding charges, port handling charges, insurance and bank charges are involved against export
in this process.
sales in the
form of rebate,
if the same
purchase
There will be AIT (Advance Income Tax) levied by the government on imports .The material
is
same can be adjusted against the corporate tax payable.
used
to
manufacture
the exported
The following is the entries in this process
goods.
At the time of making advance payment to bank
R.M. Transit a/c Dr.. To bank a/c
REMARKS
After clearing the goods from the warehouse
The material
Factory Office C/A......a/c Dr.
cost is the
To R.M .Transit a/c.
total cost up to
At the time of Inventorying the import material.
the point of
Inventory a/c Dr..
receiving
at
To Factory off C/A.
the store: Excl
AIT and other
When 10% of the value of imported goods are
claimable
deposited to the Vendor Bank:
charges
L/C Margin (Material/CWIP/Plant & Equipment)
Bank A/C
When the payment is made through opening
and maintaining PAD and LTR/MTR
Interest on PAD/LTR/MTR (Material/CWIP/Plant & Equipment)
CONSULTANT

BFBIL FICO Functional Coordinator

BFBIL FICO BPO

TarekHossainChowdhury

Mr. ZahaneAlamShimul

Mr. Belal Hossain

Page 18 of 5

As-Is Report
Bank A/C
When document is released and 90 % of the
value of imported goods are paid and
accounted for:
Document Value (Material/CWIP/Plant & Equipment)
Bank A/C
When L/C Margin is adjusted with the Document value
Document Value (Material/CWIP/Plant & Equipment)
L/C Margin (Material/CWIP/Plant & Equipment)
C

VENDOR PAYMENT PROCESS

1) Based on situation credit/advance payment will be processed.
2) Depending on the funds position amount will be paid to the vendors
3) CLPD will place outstanding invoices for approval.
4) Depending on the availability of funds a lump sum amount will be approved by
accounts department. The CLPD dept will distribute the lump sum amount to the
individual vendors.
5) In case of Locally RM purchase sometimes bill will be paid from working capital
fund and sometimes paid through cheque/DD/PO
6) Sometimes as per the requirement of CLPD payment will be made according to
the pending invoice wise or else it will be released as part amount from total pending
amount.
7) The above approved amount will be paid through a/c payee cheque and
sometimes through cash cheque.
8) For payment of TDS & VDS to the Govt accounts department will place a request
for fund approval
9) On approval of Fund, it will be paid to Govt as per the due date

CONSULTANT

BFBIL FICO Functional Coordinator

BFBIL FICO BPO

TarekHossainChowdhury

Mr. ZahaneAlamShimul

Mr. Belal Hossain

Page 19 of 5

As-Is Report
The accounts department is maintaining a
Creditors ledger, which contains vendor
sub-ledger accounts consisting of regular,
and one time Vendors.
Collect information from various sources regarding monthly fund requirement.
1) Store requisition
2) PO issue
3) Pending vendor invoice
4) Special activity
5) Others
Finance collected all info and make fund requisition approval.
Every month/day Payment approval will create and approved by management.
Based on approval payment will be done for specific vendor or activity.
18
Reminders
If required company send reminder letter to vendor/customer
19
Advances
Advance to Suppliers, Security Deposits and other Deposits viz., Telephone, Electricity and
Bank Guarantees etc.,
20
Forms
Company maintain different types of forms
Company send Balance confirmation letter to Vendor and Customer.

CONSULTANT

BFBIL FICO Functional Coordinator

BFBIL FICO BPO

TarekHossainChowdhury

Mr. ZahaneAlamShimul

Mr. Belal Hossain

Page 20 of 5

As-Is Report
21

Intercompany operation
A
Inter Company Purchases/Sales
The inter company sales or Purchases is like sales or purchases to or from outsiders.
B

22

Other Intercompany Transactions

Other intercompany transactions are through Debit/Credit note supported by relevant
documents

Issue from Store

1) Stores Requisition (S.R.) from plant to stores.
2) Based on S.R. stores issue material to plant.
3) Copies of SR slips. One in the store itself.2 ndto the receiving plant.3rd to accounts
department for accounting.

23
Asset Management
21.1 Asset Accounting
Asset accounting is utilized for managing companies fixed assets, we can categorize assets and
to the said values for depreciation for each fixed asset. Fixed assets having a useful life and are
utilized for business process. In the course of process some wear and tear will occur, for that
reason we calculate depreciation. An asset management team is sitting in every manufacturing
unit and at the corporate office, which is responsible for Asset account maintenance and
disclosure in the financial statements as per accounting Standard.
ASSET CLASS
The following are the asset classes after going through the chart of accounts(COA)
a) Land and Land Development.
b) Building and Other Constructions.
c) Plant & Machinery.
CONSULTANT

BFBIL FICO Functional Coordinator

BFBIL FICO BPO

TarekHossainChowdhury

Mr. ZahaneAlamShimul

Mr. Belal Hossain

Page 21 of 5

As-Is Report
d) Furniture and Fixtures.
e) Office Equipment.
g) Computers
h) Capital Work In Progress (CWIP)/ Asset Under Construction (AUC)
A legacy asset needs to be re-grouped to asset classes depending on assets criteria.
The company is in the process of arriving at the fair value of the asset, along with the master data.
Acquisition of assets
The process of asset acquisition is from Material Management department and is same as
material procurement.
Local Purchase:
In case of Plant and Machinery which are used for production VAT is not claimable.
Imports:
In case of Plant and Machinery which are used for production AIT claimable and VAT is not
claimable.
Customs Duty not claimable.
In case of Spares, VAT is not claimable though our product is VAT free goods but in future if we will
produce VAT able goods we will make claim.
Retirement of assets
Disposal of Fixed Asset:
at Sale/Disposable of Assets to Customer Disposal of Asset & Material):
In case of Fixed assets
Bank a/c Dr To Fixed assets To Profit & Loss a/c (Profit on
disposal of fixed assets
Some case partial retirement of Assets
21.2 Depreciation Policy
Depreciation policy as per company act.
CONSULTANT

BFBIL FICO Functional Coordinator

BFBIL FICO BPO

TarekHossainChowdhury

Mr. ZahaneAlamShimul

Mr. Belal Hossain

Page 22 of 5

As-Is Report
Straight line method
Depreciation will start from next month of asset acquisition.
Unplanned depreciation
21.3 Revaluation of Assets
After some period company revaluate the assets as per company/accounting policy.
Revaluated portion are separately booked to the GL.
Depreciation of revaluated portion will booked to the GL separately.
Revaluation process as per IFRS.
21.4 Asset Sub Class
Currently asset sub class wise reporting
24
Inventory valuation
1) Inventories comprises of Raw Materials, Packing Materials, Finished goods, and Stores and
Spares. They are stated at the lower of cost or net realizable value in accordance with BAS-2.
2) Net realizable value is determined after deducting the estimated cost of completion and/or costs
that are necessary to make the sale.
3) Inventories are calculated by using weighted average cost formula. (except Raw/FG)
4) For the purpose of better understanding the following is the formula for arriving closing
inventory valuation.
5) Inventories is valued periodically i.e monthly.
6) Grade/Country wise Raw Material inventory valuation Split valuation.
7) During consumption Raw material also consume based on the requirement from split wise
Inventory stock information.
8) Finished goods inventory valuation based on Standard price.
CONSULTANT

BFBIL FICO Functional Coordinator

BFBIL FICO BPO

TarekHossainChowdhury

Mr. ZahaneAlamShimul

Mr. Belal Hossain

Page 23 of 5

As-Is Report
25

Consumable items process through INVENTORY

Purchase requisition send to CLPD

CLDP issue PO to vendor
Vendor delivery goods to the store.
Store update the quantity
Price update by Finance
After that user division issue requisition when required the materials.
Store issue materials based on the approved requisition.
At the Year End, store identifies the all consumable items.

Based the report Finance give JV and booked all consumable items to Expenses.
26

Foreign Currency Valuation Process

Foreign Currency valuation done manually
Due to foreign currency fluctuation cost will book to Foreign currency loss and gain account.
(requirement of company )

27

Sub-Contracting
Company done some sub-contracting job for other company. By doing this company charge subcontracting amount for this job.
Company also gives order to other company regarding sub-contracting job.
As per SAP companys requirement.

28

Toll Manufacturing
As per companys requirement

CONSULTANT

BFBIL FICO Functional Coordinator

BFBIL FICO BPO

TarekHossainChowdhury

Mr. ZahaneAlamShimul

Mr. Belal Hossain

Page 24 of 5

As-Is Report
29

Product wise product Costing

Every time finance department doing PRE COSTING of each product for determining the Sales price of
Product.
Cost of Manufacturing
Cost of Other cost
Total Cost per unit

BDT 100/BDT 20/BDT 120/-

Sales per unit

BDT 200/-

Document attached. This is most necessary requirement.

30

Cost center wise cost booking

Below cost will booked cost center wise
1)
2)
3)
4)
5)

31

Mobile bill
TA/DA
Vehicle Maintenance cost
LOAN
Etc.

Revenue Product wise booking and report to management accordingly.

a) Flour unit
1) Atta 2) Moida 3) Suzi 4) C. Bran 5) F.Bran 6) Etc.

CONSULTANT

BFBIL FICO Functional Coordinator

BFBIL FICO BPO

TarekHossainChowdhury

Mr. ZahaneAlamShimul

Mr. Belal Hossain

Page 25 of 5

As-Is Report
b) Bakery unit.
c) Water unit.
d) Noodles unit
e) Oil unit
32

Product wise profitability:

We need to produce product wise profitability to take business strategy.

33

Printed SO/DO Issue:

Normally we create large quantity of SO/DO against one Sales order form and so we need large number
of SO creation and Print by one click

34

Factory Accounts Activity

Tally software is updated daily Monthly Trail balance send to Head office
1) Local purchase bill. (Cash/Credit)

a)
b)
c)
d)

Requisition from Department division

Head of Department approve
Head of Division/plant approve.
CS if required Purchasing unit

CONSULTANT

BFBIL FICO Functional Coordinator

BFBIL FICO BPO

TarekHossainChowdhury

Mr. ZahaneAlamShimul

Mr. Belal Hossain

Page 26 of 5

As-Is Report
e) CS approve by Head of Division
f) Based on CS purchase will be held through cash or bank through
a. Cash process
i. Employee give Advance requisition slip
ii. Cash give against Advance requisition slip
iii. Employee Dr/ Cash Cr.
iv. Bill submit to finance. (with MRR if any)
v. Update inventory module with MRR info.
vi. Bill adjust with employee advance
2) Bank/Credit process
i. Quotation collect and prepare CS
ii. CS approve and PO issue
iii. Vendor delivery material
iv. Vendor Challan receipt after giving delivery of material.
v. Vendor with challan submit bill to Store.
vi. With MRR copy and vendor bill copy send to Finance for payment.
vii. Finance give payment.

2) Cash payment

1)
2)
3)
4)

Weekly/monthly Fund budget send to Head office.

In the fund budget detail breakdown of fund required activity.
Fund budget approve by Management
Part by part when required fund budget amount send to Local Bank Account from Head
office.

CONSULTANT

BFBIL FICO Functional Coordinator

BFBIL FICO BPO

TarekHossainChowdhury

Mr. ZahaneAlamShimul

Mr. Belal Hossain

Page 27 of 5

As-Is Report
5)
6)
7)
8)

Cash withdraw slip prepare and signed by Head of Finance and Head of Division.
Cheque prepare for withdraw amount.
Cash book update.
Nature of Cash payment
i. Fuel bill all Vehicle.
ii. Bridge toll
iii. Entertainment
iv. Daily Labor and wages bill
v. Food expenses for Foreign employee
vi. Food expenses for Local employee
vii. Mobile bill
viii. Newspaper bill
ix. Pest control bill
x. Travelling and conveyance
xi. Dish line bill

3) Bank payment

1)
2)
3)
4)

Weekly/monthly Fund budget send to Head office.

In the fund budget detail breakdown of fund required activity.
Fund budget approve by Management
Part by part when required fund budget amount send to Local Bank Account from Head
office.
5) Nature of Bank Payment
i. Salary of employee
ii. Local vendor payment.
iii. Electricity bill
CONSULTANT

BFBIL FICO Functional Coordinator

BFBIL FICO BPO

TarekHossainChowdhury

Mr. ZahaneAlamShimul

Mr. Belal Hossain

Page 28 of 5

As-Is Report
iv. Overtime One transfer order to each employee bank account.

4) Asset related activity

1) Final Asset
a.
b.
c.
d.
e.
f.
g.
h.

PO issue to vendor
Vendor delivery goods to Store.
Store received goods and signed challan.
SR approve by division.
Goods issue from store.
Vendor submit bill to store.
Store MRR and vendor bill give to finance
Finance give entry to Asset.

2) AUC Asset
a) Store issue Civil item etc
b) Finance transfer this cost to Asset under construction from expenses.
c) Later on transfer to Final asset.
5) Monthly Costing by Factory

1) Monthly Costing Per MT

VARIABLE COST
CONSULTANT

BFBIL FICO Functional Coordinator

BFBIL FICO BPO

TarekHossainChowdhury

Mr. ZahaneAlamShimul

Mr. Belal Hossain

Page 29 of 5

As-Is Report
a. Raw Material cost.
b. Direct Labor cost (Group ledger)
i. Daily labor and wages
ii. Swing expenses
iii. Loading expense
iv. Delivery van expense
v. Cover van expenses
vi. Unloading expenses.
vii. Weight and swing expenses.
c. Electricity cost
d. Factory over head
i. Repair and maintenance.
1. Repair and maintenance vehicle
2. General
3. Electrical
4. Production
5. Conveyer belt.

ii. Packing cost

e. Administrative overhead
i. Etc expenses
FIXED COST
1. Salary & allowance
2. Depreciation
3. Other Administrative overhead.
CONSULTANT

BFBIL FICO Functional Coordinator

BFBIL FICO BPO

TarekHossainChowdhury

Mr. ZahaneAlamShimul

Mr. Belal Hossain

Page 30 of 5

As-Is Report

2) Monthly Costing Product wise

a) Total cost divided by total product wise production.
b)

R&P A/C
Cumulative Materials Receiving Statement.
Cumulative Materials Receiving Statement party wise
Monthly fund requisition.
Monthly Salary Statement.
Daily raw materials and finished product statement.

OTHER REQUIREMENT with report

CONSULTANT

BFBIL FICO Functional Coordinator

BFBIL FICO BPO

TarekHossainChowdhury

Mr. ZahaneAlamShimul

Mr. Belal Hossain

Page 31 of 5

As-Is Report
S.L
No
1

Financial Statement

Report

1.a.

Statement of Financial Position

Report

1.b.

Statement of Comprehensive Income

Report

1.c.

Statement of Changes in Equity

Report

1.d.

Statement of Cash Flows (Direct Method)

Report

1.e.

Notes to the Financial Statement

Report

Assets Register

Report

Property, Plant & Equipment Schedule

Report

LTR/MTR Interest statement

Report

Raw Material Purchase Report

Report

Mobile Bill Deduction

Salary Tax Calculation

Vendor wise Tax payable statements

Report

Vendor wise VAT payable statements

Report

10

Product wise product Costing

Report

11

Production, Delivery, Collection etc. Comparison Statements

Report

Particulars

Remarks

CONSULTANT

BFBIL FICO Functional Coordinator

BFBIL FICO BPO

TarekHossainChowdhury

Mr. ZahaneAlamShimul

Mr. Belal Hossain

Page 32 of 5

As-Is Report

CONSULTANT

BFBIL FICO Functional Coordinator

BFBIL FICO BPO

TarekHossainChowdhury

Mr. ZahaneAlamShimul

Mr. Belal Hossain

Page 33 of 5