PWC的全球最佳財務實踐 Best Practice Financial Processes Accounts Receivable

BestPracticeFinancialProcesses:

AccountsPayableAccountsPayableObjectivesOrganisationPeopleProcessesControlsMeasuresInformationSystemsTomaximiseprocessingefficiencyToensureinvoicesareprocessedtoagreedtermsToensurepaymentsmadeonlywhendueandpayableToensureliabilitiesarefullyrecordedanddistributedcorrectlyToachieveeffectivebalancebetweenextendingcreditandmaintaininggoodrelationswithsuppliersTotakefulladvantageofopportunitiestorecoverVATCentralisedprocessingOutsourcingpotentialMaintainingsupplierdetailsProcessvouchersProcesspaymentsPeriodendprocessingandreportingAuthorisationrulesSystemaccesscontrolsUserproceduresValidationandmatchingrulesSpeedofprocessingsupplieramendmentsInvoicesprocessedInvoiceprocessingtimeNumberofpaymentsPeriodendclosuretimeInterfacebetweenAccountsPayableandotherrelatedprocessesSharedemployeeandsupplierdetailsSystemvalidationandapprovalchecksSupplierrelationsCreditorcontrolAccountsPayable-BestPracticeObjectivesAccountsPayable-BestpracticefeaturesAuthoriseandsetupnewsupplierspaymentdetailsMaintainsupplierpaymentdetailsSegregationofdutiesbetweensuppliersetup,voucherprocessingandpaymentprocessingAccountspayableprocessvouchers:invoices,expenseclaims,creditnotes,debitmemosandprepaymentrequestsSuppliersrequiredtousePOnumberonalldocumentsandthreewaymatchwhereverpossibleConsolidatedperiodicinvoicingforhighfrequencysuppliersProcessFeaturesMaintainsupplierdetailsProcessvouchersOptimisationofearlypaymentdiscountsPaymentrunsproperlyauthorisedProcesspaymentsAlltransactionscompletedbeforeperiodclosedReconciliationofAccountsPayableactivityandreconciliationwithGeneralLedgercontrolaccountManagementreportsrunonceperiodisfinallyclosedPeriodendprocessingandreportingAccountsPayable-BestpracticefeaturesSinglesupplierdatabaseSingleemployeedatabaseAudittrailofchangestosupplierpaymentdetailsPurchaseinvoicestransactedviaEDIwithmajorsupplierswhereverpossibleElectronicvalidationandapprovalofinvoicesAutomaticmatchingofinvoicetoorderandgoodsreceivednote(GRN)InterfacewithGeneralLedger,Purchasing,FixedAssetsandProjectAccountingUseofworkflowsoftwaretoresolvequeriesandmonitorprocessSystemFeaturesMaintainsupplierdetailsProcessvouchersElectronicpaymentsDefaultpaymenttermsheldonsupplierfilewithmanualoverrideatP.O.andinvoiceProductionofforwardpaymententryschedulestoaidcashflowmanagementInterfacewithGeneralLedger,FixedAssets,ProjectAccountingandCashManagementFacilitytosuspendpaymentsProcesspaymentsIntegrationwithGeneralLedgerminimisesreconciliationadjustmentsTransactionprocessingpreventedforclosedperiodsPeriodendprocessingandreportingAccountsPayable-Measures/CostdriversNumberofinvoicesreceivedpermonthNumberofsuppliersNumberofdifferenttermsandconditionsComplexityofauthorisationprocessProportionofinvoicesautomaticallymatchedwithPO'sNumberofsupplierqueriesProportionofinvoicesreceivedelectronicallyProportionofpaymentsmadeelectronicallyMedian16days90percentile49days90percentileMedian10percentileNumberofpurchaseinvoicesperFTEperannum15,0007,0003,000orlessCostperpurchaseinvoiceprocessed10percentileMedian90percentile￡2￡6￡1710percentile6daysInvoiceprocessingtimeindaysCostdriversSource:statisticstakenfromBenchmarkingdatabase21January1997AccountsPayable-TrendsFromToSeparateAPmodulePaymentbychequeManualmatchingPerformedbyfinancedepartmentIntegratedsystemsElectronicpaymentOn-linematchingSharedServiceCentresoroutsourcedservicesAccountsPayable-CriticalSuccessFactorsTheseareasummaryofthekeybusinessrequirements,whichmustbemettoachievetheobjectives.SinglesupplierdatabaseStafftrainedinAPprocessandhaveclearrolesandresponsibilitiesPaymenttermsdefinedandagreedwithsupplierEffectivecommunicationandfeedbackmechanismsinplacetohandlequeriesEstablishandmaintaingoodsupplierrelationsProcessinplaceformonitoringthestatusofinvoicesandpaymentschedulesAPcalendarinplaceandcommunicatedtostaffAuthorisationlevelsandpaymenttermsheldonthesystemAutomatedworkflowtoroutedocumentstorelevantpersonnelwhenproblemsneedtoberesolvedForwardpaymentscheduletocashflowmanagementFlexiblematchingcriteriaAccountsPayable-Appendix1:IDEFProcessFlowThediagrambelowprovidesakeytotheprocessdiagramsusedinthisdocument.Process/activityControls(i.e.ProceduresStandardsRequirementsforrework)Output(i.e.InformationMaterial)Resources(i.e.PeopleFunctionsITsystemsMachines)Input(i.e.InformationMaterial)AccountsPayable-Level0ContextDiagramGroup/Mgt.teamFixedAssetRegisterPurchasingGeneralLedgerSuppliers/EmployeesFixedAssetdetailsSupplier/EmployeeamendmentsProjectexpensedetailsInvoice/PaymentdetailsPurchaseordersReconcilepaymentsHumanResourcesCashManagementManagementreportsPaymentsCashrequirementsEmployeedetailsProjectAccountingAccountsPayableReceiptsAccountsPayable-Level1OverviewVoucherapprovedforpaymentNewperiodopenPaymentdetailsreadytoposttoGeneralLedgerPaymentandremittanceadviceVoucher:Invoice/expenseclaim/Creditnote/prepaymentrequestNotificationofchangesfromsupplieroremployeeMaintainsupplierdetailsAP1.1ProcessvouchersAP1.2ProcesspaymentsAP1.3PeriodendprocessingandreportingAP1.4VoucherprocessingproceduresAuthorisationrulesMatchingrulesSystemvalidationandapprovalchecksExceptionhandlingproceduresAPdeptAPsystemPOsystemSupplierRequisitionerBatchcontrolsAuthorisationrulesReportingguidelinesPostingcontrolsReconciliationproceduresPeriodendtimetableAPdeptAPsystemPaymentdeviceAuthorisedpersonnelAPAPSystemHRAuthorisationproceduresSystemaccesscontrolsUptodatesupplierrecordsVouchersfiledAPdeptAPsystemGLsystemManagementReportsEmployeejoinersandleaversdetailsMaintenancerequestApprovedvouchersreadytoposttoGeneralLedgerVoucherdetailsavailableon-lnetoFixedAssetsandProjectAccountingCancelledvouchersreversedoutofAPandfiledPaymentdetailsavailableon-linetocashmanagementPaymentcancelledAccountsPayable-NotesMaintainSupplierDetailsBestPracticeFeaturesSharedsupplierdatabasewithPurchasing.Purchasingresponsibleforapprovingsuppliers(havingmadetherequiredchecks),agreeingtermsandconditionsandmaintaininggeneralandpurchasingrelatedsupplierdetailsonthedatabase,includingpaymentterms.AccountsPayableresponsibleformaintainingallpaymentrelatedsupplierdata,suchasbankdetails,paymentmethod,payeenameandaddress,paymentcontacts.SharedemployeedatabasewithHumanResources.EmployeedetailsaremaintainedbyHumanResources,butsufficientdetailsmustbeheldandmaintainedbyAccountsPayable,toallowpaymentofexpenses.Employeedetailsrequiredincludepaymentmethod,bankdetails,remittanceaddress,payeenameandemployeecostcentre.AccountsPayableshouldnothaveaccesstootherconfidentialemployeedata.Onepaymentaddressforeachvendor.Whereavendorprovidesgoodsorservicesfromanumberoflocations,theconsolidationofthepaymentprocessnotonlyreducesthenumberofpaymentsnecessarybutalsoremovesthepotentialneedtoreconcileanumberofindividualaccounts.Centralisethevendorset-upcapabilityinordertominimisetheriskofunauthorisedorduplicatevendorsbeingsetupmorethanonce.Fromanauditpointofview,thecontrolovervendorsetupisalsoviewedasacriticalactivitywhichneedstobetightlycontrolled.Changestosupplierdetailsareprocessedexpeditiously.If,thevendorisalsoacustomer,detailsareconsistentinbothdatabases.AccountsPayable-NotesMaintainSupplierDetailsInternalControlrequirementsNewsuppliersmustbecheckedandapprovedbyPurchasinginaccordancewithcompanypolicy.Similarly,Purchasingareresponsibleforprocessinganymergers,acquisitionsordeletions.Toenableefficientinvoicepaymentprocessingandensuresegregationofduties,AccountsPayableareresponsibleforthemaintenanceofallpaymentrelatedsupplierdata.Inaddition,authorisationforpaymentswithinAccountsPayableshouldbeseparatefromtheresponsibilityofmaintainingsupplierpaymentdataandprocessingvouchers.Auditofchangestosupplierpaymentdetailsmustbepossible.KeyPerformanceIndicatorsTimetakentoprocesssupplieramendments.AccountsPayable-NotesProcessPaymentsBestPracticeFeaturesUseofelectronicbankingsystemsforpayments,thusminimisingtheneedformanualinterventionintheprocess.Centralisationofthepaymentprocessinginordertominimisetheriskofmakingduplicatepayments.Paymentsmadenosoonerthantheduedateinordertomaximisecashflowbenefits.Facilitytosuspendindividualpayments.Thewithholdingofpaymentcanbeapowerfultoolinensuringthatthevendorcomplieswithanyrequirementsaskedofit.Avoidpaymentsincash.Apartfrombeingcostlytoadminister,thepotentialforfraudisgreatlyincreased.AccountsPayable-NotesProcessPaymentsInternalControlrequirementsPaymentprocessingneedstobetightlycontrolledandtotallysegregatedfromvendorset-upandinvoiceprocessingactivities.KeyPerformanceIndicatorsNumberofpaymentsperFTE.Numberofoverduepayments.Numberofpaymentsmadetooearly.

AccountsPayable-NotesProcessPaymentsCostDriversThefollowinggeneratethecostsfortheprocessingofpayments:-Numberofpaymentruns.Numberofmanuallypreparedpayments.Numberofpaymentmedia(cheques,vouchers,diskettes,etc.).Numberofforeignpayments.Variedpaymentterms.ReportsSummaryofpaymentsperrun.Paymentsonhold.ReportsonKeyPerformanceIndicators.OverdueunpaidinvoicesAccountsPayable-NotesPeriodendprocessingandreportingBestPracticeFeaturesAutomaticprocessrequiringlittleornomanualintervention.PostingtoGLshouldbedaily.ThisensuresGLdataisuptodateandalsoreducesthetimetakenfortheperiodendpostingasfewerrecordsarebeingprocessed.InternalControlrequirementsThebasicrequirementistoensurethatthedatatransmittedtothegeneralledgeriscompleteandontime.Thereisarequirementtoensurethattheinformationrecordedinthegeneralledgeragreeswiththeoutputfromaccountspayable.KeyPerformanceIndicatorsDeliveryofinformationtogeneralledgerontimeTimelydeliveryofendofperiodreportsCostDriversVolumeoftransactionsTimetocloseperiodsDegreeofautomationintheinterfacewithgeneralledgerBestPracticeFinancialProcesses:AccountsReceivableAccountReceivable-BestPracticeObjectivesAccountsReceivableObjectivesOrganisationPeopleProcessesControlsMeasuresInformationSystemsToensurecustomerpaymentsarereceivedefficientlyandeffectivelyforgoods/servicesdelivered,withintheagreedtermsandconditionsTomanagecreditriskefficientlywithoutcreatingunnecessarydelaysinthesalescycleTomaintainacompleteandaccuratestatementofoutstandingdebtorsToprovidecompleteforecastinformationtoassistthemanagementofshort-termcashrequirementsCentralisedprocessingEconomiesofscaleCustomerfocusEstablishcreditlevelsIssuesalesorderIssueinvoiceMonitorcreditCollectcashProceduresmanualAuthorisationValidation/matchingCreditcontrolCostperinvoiceCreditnotespercentageCostperpaymentreceivedDaysdebtoutstandingIntegratedwithsalessystemAutomaticmatchingElectronicreceiptsCustomerrelationsLegalframeworkawarenessCreditmanagementAccountsReceivable-BestPracticeFeaturesProcessFeaturesFormalcreditchecksappliedtoallnewcustomerswithin24hoursusingcreditbureauMonitorcreditstatus/termsonregularbasisCustomeraccountmanagersprovidedwithuptodatecreditstatusTreasurypolicysetonlateandpromptpaymentsAuthoritylevelsclearlydefinedCreditpoliciesdefinedandagreedTermsandconditionsagreedwithcustomersConsolidatedperiodicinvoicingforhighfrequencyshipmentsBankremittancenoticesissuedwithsalesinvoicestofacilitatereconciliationSelfbillinginvoicesbyhighvolumecustomersConsideroutsourcingregularinvoice/paymentegutilitiesRegularreviewofinvoicequeriesandcreditnotesReconciliationofARbalancestoGLcontrolaccountsonaregularbasisCreditinsurancearrangementsevaluatedperiodicallyCustomeraccountmanagersresponsibleforsalesandcashcollectionConstantmonitoringofdebtordays,dailycollection,ageingofdebtCustomercontactrecordsmaintainedOutsourcecashcollectionwhereappropriateDetermineandreportoncredittargetsMonitoroverduedebtsandtakeactionwithinagreedpolicyEstablishcreditlevelsIssuesalesorderIssueinvoiceMonitorcredit/collectcashSalesorderspreparedusingpricingdatabasewithpricingprofilesforproductsandcustomersNoorderprocessedwithoutvalidcustomerPOreferenceDeliverynoteactsasinvoiceforlow-frequencyshippingsAccountsReceivable-BestPracticeFeaturesEstablishcreditlevelsIssuesalesorderIssueinvoiceMonitorcredit/collectcashSystemFeaturesConsolidatedcreditpositionforgroupofcustomersSystemprovideson-linecustomerpaymenthistoryandtermsUseofworkflowsoftwaretomonitorprocessandhelpresolvequeriesStandardcreditcontrolreportsCommonSOPandARcustomerdatabaseInvoicesautomaticallygeneratedfromSOPandshipmentdataSelfbillinginvoicesautomaticallymatchedtocustomerordersMulticurrencyinvoicesAutomaticcommitmentandaccrualsAutomaticreconciliationfacilitiesbetweenintegratedSOPARandGLsystemsSOPlinkedtodebtorsledgertoensurecustomercreditlimitsnotexceededSalesdocumentssentviaEDIforallmajorcustomersIntegratedorder&billingsystemsavailableonline&hardcopyPaymentsreceivedelectronicallywherepossibleAutomaticmatchingofpaymentstoinvoicesOn-linediaryfacilitytomonitorcallsAutomaticflaggingandreportingofhighriskaccountsAutomaticdunninglettersissuedwithinagreedtradingtermsIntegratedsystemstofacilitatecustomerqueryhandlingForecastcashreceiptsavailablefortreasurypurposesAccountsReceivable-TrendsFromToSeparateARmodulePaymentbychequeComplex/variabletradingtermsManualmatchingPerformedbyFinancedepartmentIntegratedsystemsElectronicpaymentCommontradingtermsforallcustomersAutomaticmatchingSharedoroutsourcedservicesAccountsReceivable-Measures/CostDrivers90percentileMedian10percentileNumberofcustomerpaymentreceivedperaccountsreceivableFTEperannum40,3005,500700orlessAccountsreceivablecostpersalesinvoiceprocessed10percentileMedian90percentile<￡1￡3￡18Median1day90percentile4days10percentile<1dayDaystoprocessinvoice/creditnote(ie,timebetweenreceiptofinvoice/creditnoteandentryintotheaccountingsystem)CostdriversNumberofARreceiptsLevelofmultiplereceiptsUseofdirectdebiting/standingordersUseofelectricfundstransferLevelofcreditriskassociatedwithcustomerbaseVarietyinpaymenttermsDegreeofforeigncurrencyreceiptsLevelofcreditnotesBilling-Measures/CostDrivers90percentileMedian10percentileNumberofsalesinvoicesgeneratedperbillingFTEperannum90,00011,1001,600Billingcostpersalesinvoiceandcreditnoteprocessed10percentileMedian90percentile<￡1￡2￡22Median2days90percentile15days10percentile<1dayDaysfromdespatchofgoodstopreparationofsalesinvoiceCostdriversNumberofinvoicesNumberofcustomersUseofEDIComplexityofservice/goodssuppliedVarietyintermsandconditionsComplexityofdiscountsDegreeofforeigncurrencyinvoicingNumberofcomplaintsAccuracy/levelofcreditnotesAccountsReceivable-Level0ContextDiagramAccountsReceivableBillsAdhocinvoices&standingdataReminders&StatementsGLPostingsGeneralLedgerCustomersBankManualInvoicesBillingSystemStandingDataPayments(cash,cheque)DirectDebitInstructionsStatementsPaymentdetails(BankGirocredits)CustomerServicesSystemAlsoelectronicAP/ARdatafrombankforautocashmanagementAccountsReceivable-Level1OverviewCustomerStandingData,Bills&CreditNotesARStaffARsystemBillingsystemCustomerdetailsARdataimportproceduresInterfaceRulesARStaffBillingsystemARsystemCustomerDataLoggedonARSystemInvoice/creditnoteentryrules,BillsandcreditnotesloadingproceduresARStaffARSystemBills&creditnotesManualinvoicerequestCustomermaintenanceprocedures,CustomerrelationshiprulesImportstandingdata,bills&creditnotesAR1.1MaintaincustomerdataAR1.2Processbills,invoices&creditnotesAR1.3DatavalidationreportCustomerreportManagereceivablesAR1.4ProcessreceiptsanddirectdebitsAR1.5ProcessperiodendAR1.7Creditcontrolpoliciesandprocedures,Callloggingprocedures,Provisioncreationrules,LegalproceedingsrulesARstaffARsystemCreditcontrolOpeninvoicesonARsystemPrintinvoicesdespatchedGLupdatesOutstandingdebtorsChequeandreceiptsprocessingrules,Automaticallocationrules,Manualallocationrules,OnaccountpaymentrulesCash/cheque/bankreceiptsListofDDcustomersamountsdueARstaffARsystemBankstatementTransactiondataReviewprocedures,Archivingrules,PerioddataproceduresARstaffARsystemPaymentonaccountloggedonARsystemMatchedDDreceiptsloggedonARsystemRequesttobankProcessamendmentsAR1.6NewperiodopenedonARsystemPeriodendGLpostingsMatchedreceiptsarchivedPeriodreportsproducedAmendmentofvalidationrules,AmendmentinputproceduresAdjustmentsAmendmentsGLupdatesAuditreportDebtorreportDunningletter/statementAmendmentrequest,notifydepartmentProvisionjournalsAccountsReceivableNotesMaintaincustomerdataBestPracticeFeaturesSendbilltooneaddressonly.Whereacustomerisprovidedwithgoodsorservicesatanumberoflocations,theconsolidationinthebillingprocessnotonlyreducesthenumberofbillstobeverifiedorcreatedbutalsodecreasesthepotentialneedtoreconcileanumberofreceivablesonindividualaccounts.Centralisethecustomerset-upprocessinordertoensureconsistency.InternalcontrolrequirementsInordertominimisetheriskofduplicationofthedataandtheunauthorisedset-upofcustomers,theprocessshouldbecentrallycontrolledandoperated.Beforeanycustomerisdeletedfromthesystem,evidenceshouldbeproducedthatthecustomerhasbeeninactivefortheappropriateperiodoftimeandnooutstandingbalancesarepresent.Approvalfordeletionisobtainedbymanagementauthoritysignature.Thechangestocustomersreportisregularlycheckedandmonitored.Systemnotificationofduplicatebusinessandbirthregistrationnumbers.AccountsReceivableNotesMaintaincustomerdataCostDriversNumberofcustomersNumberofnewcustomersNumberofcustomerchangesNumberofrequiredcustomerstandingdatafieldsPossibilityofsharingstandingdatabaseOverlapbetweendatabasesSearchcriteriaandstandardisationtoavoidduplication/redundancyKeyPerformanceIndicatorsNumberofchangesandadditionscarriedoutinayearperFTENumberofcustomersinop.databasewithouttransactionsfor1yearPercentageofchangesandadditionsoftotalcustomerbaseAccountsReceivableNotesManageReceivablesBestPracticeFeaturesAgeddebitbalancesshouldbereviewedbymanagementonaregularbasisandexplanationssoughtastowhydebtshavefailedtoberecovered.Overduedebitbalancesoccurasaresultanumberoffactorsofsub-optimalperformanceswithinthesalesdepartmentorwithinthecreditcontrolprocessorAR-infonotrecordedfrombankquicklyenoughandthereforenotprocessedquicklyenoughortimingofinvoiceissue.Therootcausesneedtobeaddressedandrectifiedbyalteringthecreditabilitystatusofthecustomer.Automaticflaggingandreportingofhighriskaccounts.Materialityandtimelimits.InternalcontrolrequirementsItisessentialthatdebitbalancesarereviewedregularlyandmatchedwithpaymentspromptlyinordertoavoidtheriskoffraudandminimisethechancesofbaddebt.Computerdiaryofactionstaken.Stopsplacedonoverduecustomers.Ageddebtorreportsenttolegaldepartmentandfunctionalmanagers.AccountsReceivableNotesManagereceivables(Cont…)CostDriversNumberofoverdueopenitems.Numberofstepsinthedunningprocedure.Qualityandtimingofthematchingprocessofreceipts.Availabilityofdunningenforcementmeasures.Tolerancecriteria.Paymenttermsandconditionspolicy.KeyPerformanceindicatorsDaysoutstandingasapercentageofaveragepaymentterm.Valueofoverdueinvoicesasapercentageofoutstandingbalances.BadDebtProvisionasapercentageofoutstandingbalances.Processcost/customerpaymentreceived.Numberofdunninglettersas%oftotalinvoices.Writeoffvalueas%of(sundry)salesrevenue.AccountsReceivableNotesProcessreceiptsanddirectdebitsBestpracticefeaturesUseofanelectronicinterfacebetweenbank,cashiersandARtreasuryAutomaticmatchingofreceiptsbyvalueandinvoicenumberInternalcontrolrequirementsInterfacecontroltotalwithbankandcashiers,dailyRegularsupervisoryreviewofopenandunmatcheditemsDocumentationofalloverdueopenitemsandunmatchedreceiptsAccountsReceivableNotesProcessreceiptsanddirectdebitsCostDriversNo.ofReceiptsformorethanonetransactionPercentageofdownpaymentsQualityofpaymentinformationNumberofunmatchedpaymentsNumberofforeigncurrencyreceiptsandexchangeratedifferencesTolerancepaymentdifferencesNumberofcriteriaforautomaticmatchingKeyPerformanceIndicatorsMonthlyandcumulativetolerancedifferenceamountsPercentageofreceiptsclearedautomaticallyinmonthNumberofmanuallymatchedreceiptsperFTENumberofunmatchedreceiptsolderthan1monthAccountsReceivableNotesProcessamendmentsBestPracticeFeaturesSinglecontactpointforallqueries.Althoughthequeryprocessingcanbedistributedthereareobviousinefficienciesindirectingenquiriestoanumberofcontactpoints.Haveaccesstosufficientdatatobeabletohandlethemajorityofquerieson-line.Inthiscontext,theuseofimageprocessingallowsinvoicestobecalleduponscreenquicklyand,ifnecessary,automaticallycopiedtotheenquirerthroughthemediumofautofax.InternalcontrolrequirementsInordertooperateaneffectivehelpdesk,staffwillrequiretohaveaccesstomostpartsoftheaccountsreceivablesystem.Thisshouldbeona‘readonly’basisinordertominimisethepotentialforfraudtakingplace.Targetssetfortimetoanswerqueries.AccountsReceivableNotesProcessamendmentsCostDriversNumberandvarietyofqueriesreceived.Availabilityandflexibilityofstandardscreens.Complexityofdatabasefortailor-madequeries.Responsetimesofenquirysystems.User-friendlinessofenquirysystems.KeyPerformanceIndicatorsAveragetimetakentoprocessqueries.Percentageofqueriesansweredwithintargetedtime.AccountsReceivableNotesProcessperiodendBestPracticeFeaturesAutomaticprocessrequiringminimumornomanualintervention.ThisisastandardfeatureofmodernAccountsReceivablepackagesandtheonlypossibleproblemareacouldbewiththenatureoftheinterfacewiththegeneralledgerpackage.InternalcontrolrequirementsThebasicrequirementistoensurethatthedatatransmittedtothegeneralledgeriscompleteandontime.Thereisarequirementtoensurethattheinformationrecordedinthegeneralledgeragreeswiththeoutputfromaccountsreceivable.AreconciliationshouldbecarriedoutbetweendebtorbalancesonGLcomparedwithAR.CheckVATexceptionreporttopickupanylateVATpostings.CostDriversVolumeofmonthlyperiodendreports.Qualityofdaytodaycontrols.KeyPerformanceIndicatorsPercentageofperiodendclosureswithintarget.Averagenumberofdaystoproducemonthlyinformation.BestPracticeFinancialProcesses:FixedAssetsFixedAssets-BestPracticeObjectivesFixedAssetsObjectivesTomaintainacompleteregisterofalltheorganisation’sfixedassetswhichreflectslocation,age,currentvalues,associatedcostcentresTocalculatedepreciationconsistentlywithfinancialreportingrequirementsTooptimisereplacementpoliciesTominimiseownershipcostsOrganisationAssetrecordingintegratedwithmaintenanceandnonfinancialdataCentralisedassetaccountingAssetownershipdevolvedtobusinessunitlevelPeopleControlfocusedChallengeassetrequisitionproposalsProcessesMaintainassetregisterAcquisitionsanddisposalsDepreciationchargeVerifyingassetbaseMaintainingofvaluationbasisControlsAssetverificationAssetvaluationAcquisitionanddisposalauthoritiesMeasuresNumberofassetsmaintainedCostofdepartmentElapsedtimetorecordassetInformationSystemsAssetledgersintegratedwithGLandAPDepreciationandprojectcontrolbycostcentreAutomateddepreciationcalculationMaintainfixedassetregisterControlacquisitionsanddisposalsManageperiodicassetdepreciationVerifyandvalueassetbaseProcessFeaturesDetermineassetcategoriesforinternalandstatutorypurposesMonitorassetmaintenancechargesApplyinsurancevaluationtokeyassetsEnsureassetresponsibilityatBUlevelIdentifyassetusageSetupappropriatecontrolofassetacquisitionanddisposalsacrosscompanyReportonacquisitionsanddisposalsonamonthlybasisMonitortaxissuesrelatedtoacquisitionsorCIPEnsureBUresponsibilityforassetsintheiruseandfordisposallossesDepreciateatpointofassetuseApplydepreciationrulestoassetclassesDepreciationratesinmanagementaccountsinlinewithstatutoryratesLinksassetdepreciationtoproductionandproductcosts/developmentRevaluekeyassetsonaregularbasisbasedonbookvalueandhighriskComprehensiveassetverificationonregularperiodicorrollingbasiswhereassetcannotbeverifiedviatechnicalassumptions(mosttelco’sdonotverifynetworkassets:th