Accounting for

Non-Accountants
(SO)
Training manual

RATIONALE
The continuous expansion of our company results in the
growing complexity of its total operation. Consequently,
we see the increasing volume and intricacy of the
accounting work.
This manual is designed to answer the training and
development needs of the operations personnel. The
purpose is to provide Non-Accountants with essential
information on accounting policies, systems and
procedures in order to safeguard companys assets.

OBJECTIVE
It is expected that after this training, the participants would
be able to:

Learn the accounting policies, systems and procedures.

Instill the values of accountability in the performance of
their duties and responsibilities.

HOUSE RULES
All sessions will start as exactly 8:00 12:00 for
morning session and 1:00 6:00 for afternoon.
Be on time, be present in all sessions and take an
active role during the training. Questions,
clarifications and suggestions are encouraged.

Mobile phones are in discreet or in a silent mode

during the sessions. Avoid unnecessary calls.

FUNDS

POLICIES AND PROCEDURES

The store cashier is the authorized custodian of all funds.
The amount of fund varies per store depending on its size and volume of transactions.
All disbursements must be approved by the store manager or approving officer before
release of payment.

Funds cannot be used to:

Make personal loans
Pay salary advances
Pay expenses and/or activities of employees with revolving funds and mobility
allowance
Encash personal checks
Pay expenses for caravan and other major sales activities
Pay incentives for redemptions and sale of pre-owned units
Pay meals for regional and area meetings, trainings/seminars

POLICIES AND PROCEDURES

Funds must be reconciled and replenished daily.
The receipts and cash on hand, should, at all times, tally with the established
fund.
Issue official receipt for cash overages, while for shortages, these must be
paid immediately.
The fund is subject to audit requires an approved ADB supported with Fund
Analysis.
When returning or decreasing the fund, issue an official receipt for the whole
fund amount or the excess respectively.
At the end of the day, all store funds and all accountable forms shall be kept
surely in the vault.

POLICIES AND PROCEDURES

The vault combination shall be known only by the cashier, and the store manager or
officer-in-charge.
The vault combination shall be changed when the cashier, manager or officer-in-charge
transfers, resigns, or retires.
In case of stolen fund, forward to HO-Accounting Department, a memo with copy of
the police report to serve as support for the journal entry.
No splitting of amount having the same transaction by issuing two or more PCVs.
The vouchers and replenishments shall be in series.

All imbursement documents like vouchers, receipts, registration fund disbursement

(RFD), Registration fund replenishment (RFR) and other attachments shall be properly
filled-out and stamped PAID and SCANNED.

GUIDELINES ON PETTY CASH FUND MANAGEMENT

Disbursement should not be more than P 3,000 per transaction.
The petty cash voucher (PCV) shall be used to document the disbursement of cash.
For reimbursement of meals during monthly store staff meeting; which includes sales staff, FSO
staff, or combine store staff meeting, the following are the requirements and support
document:
Budget meals shall be at P 100.00 per meal per head
Attendance sheet with signature of participants
minutes of the meetings
Meals during other types of meeting; not specified above, shall be on a per diem per meal
basis, based on entitlement per position.

GUIDELINES ON PETTY CASH FUND MANAGEMENT

PCV shall be supported by original receipts.

The credit officer shall countersign in the PCV for FSO transactions.

Supporting documents for payments to independent service provider (ISP) for a store with Technician:

Daily Accomplishment Report approved by HO-P&S

Recap of accomplished jobs report approved by HO-P&S
Customers ledger

Supporting documents for payments to independent service provider (ISP) for a store without
Technician:

Recap of Accomplished Jobs Report approved by HO-P&S

Customers ledger

GUIDELINES ON PETTY CASH FUND MANAGEMENT

Purchase of items used as fixed asset should have the following
supports:
Approved ADB
Original Official Receipt

In case of customers refund, the following documents shall be

attached:
Original Official Receipt & Deposit suspense JV entry (if refund of customers
deposit)
Customers ledger (if refund of overpayment or sales return)
Customers ledger and summary of registration expenses (if refund of
credited MC transaction)
The amount to be refunded to the customers should be net of registration expenses.

GUIDELINES ON PETTY CASH FUND

MANAGEMENT
Electric, water, and telephone bills amounting to three thousand
pesos ( P 3,000.00) and below can be taken from petty cash fund.
Log every payment made for electric, telephone, and water bills; may it be
paid through petty cash or request for payment.
Attach official receipt (utility company), original billing statement, OR for
personal calls, and photocopy of the logbook to the petty cash voucher (PCV).

For bidders bond, attach the following documents to the PCV:

Official receipt or acknowledgement receipt (Bids &awards committee) from
City Govt.
Advances ledger of the store manager.

This is charged temporarily to the store managers advances account.

GUIDELINES ON PETTY CASH FUND

MANAGEMENT
Payment for local purchase must have the following attachments:
Original Receiving Report (RR)
Original Official Receipt (OR)
Purchase Order (PO)

Attach contra JV entries to PCFRR for expenses due to other stores.

For payment of sales agents commission, attach a customers ledger
and a manual computations showing sales commission and gross
profit rate (GPR).
For the sales commission to be approved, the gross profit rate should not be
lower that the set GPR per price list.
Commission should be built in to the price.

GUIDELINES ON PETTY CASH FUND

MANAGEMENT
For employees benefits such as EBW- medicine and EBW-dental,
attach either of the following documents to the PCV:
Statement of account from the hospital or clinic
Original official receipt/s
PCV is subject to HRD approval
For any disapproved amount, this will be charged to the employees notes medical
account.

GUIDELINES ON CASH ADVANCES FUND

MANAGEMENT
A cash advance may be made prior to the prior to the expense under
the following conditions:
Allowed to regular employees:
Without unliquidated advances
Without revolving fund
Without gas card
Without fixed allowance for meals, repairs, and gas.

Extend for official activities/expenses authorized by the company.

Taken from the store where the employee is based.
Liquidation must be done after a days activity.
Expense reports and Daily Activity Report (DAR) shall be attached to the CAV.

GUIDELINES ON MC FUND MANAGEMENT

Registration fund disbursement (RFD) and Registration Fund Replenishment (RFR)
should be completely filled-out and should be with approval of the store manager.
Original copy of supports like BOR, ROD, PNP, and photocopy of LTO, OR and CR
should be attached to the RFR.
RFR amount should tally with the supporting documents.
RFR Transactions should be posted in the customers ledger under attachment.
RFD transactions must be replenished regularly.
At the end of the day, examine the issued RFD/s. Those without postings under the RFR column of
the RFD, means that the MC Clerk has not yet liquidated the RFD.

Issuance of RFD and RFR must be in numeral sequence.

There should be a separate file on paid RFR and replenished RFD for future
references.

GUIDELINES ON WU FUND MANAGEMENT

Borrowing of funds from the stores petty cash fund, MC fund, or
CTFS collection is nit allowed.
Borrowing of funds from collection must be approved by the Chief
Financial Officer (CFO) or AVP-Finance.
Use the revised WU Daily Cash Disbursement Summary (DCDS). Refer sample
on the next slide.

Replenishment for dollar transaction should be based on WU

systems conversation rate for the day.
WU fund must be separated from all other store funds and it must be
reconciled daily.
The documentary stamps shall tally with the tax reflected in the
money transfer activity form.

ONLINE/ATM FACILITY

Policies and Procedures

This is to be used purely for the payment of funds namely: Petty cash,
Cash advances, Western Union, and MC Funds.
Using ATM card through Bancnet, Megalink, or Expressnet terminal.
The manager is the only one authorized to withdraw the funds.
The card should be kept by the Cashier in the stores vault for
safekeeping.
For security Bank, ATM withdrawal is up to Php 40,000.00 a day.
However, withdrawal over the counter is allowed without limit.
Withdrawal through other banks ATM machine is limited only from
P20,000.00 to P40,000.00 a day.
As part of control, the cashier should maintain a logbook for every
ATM transaction.

Policies and Procedures

As soon as the manager receives the cash through ATM terminal, he or she should
remit the following items to the cashier:
a.) cash
b.) transaction record slip

c.) ATM card

Bank charge per withdrawal is Php 10.00 for Bancnet and Php 12.00 for Megalink.
Attach transaction record slips as support to the PCV for the refund of bank charges for every
withdrawal of funds.
The store manager/supervisor should not transact if the ATM machine cannot issue
transaction record slip; otherwise bank charges will be charged to the manager.

In case of transfer, resignation, or retirement of the manager, the Payable Section

shall be informed in writing 15 days before the implementation.
This is to adjust the changes in the payees name and information with regards managers
profile on the online system.

PROCUREMENT

Policies
All purchases are centralized at EMCOR Head Office.
Only designated Head Office Officers approve the PO.
All purchases or deliveries of all items must be covered with PO.
All deliveries in excess of what had been issued with PO will be
automatically returned by the store to the supplier.
Undelivered stocks after 30 days from the date of PO is considered
cancelled.
Shipment of stocks after 30 days must be confirmed first by the supplier from
the store before the actual delivery.

All purchases shall be made to accredited supplier only.

Procedures
The purchase, Sales, and Inventory (PSI) Plan is a monthly report submitted by the store to
Head Office-Procurement Section. It serves as a stores request for ordering of stocks for
their inventory requirement.
Store Level:
1.Prepare the PSI form every end of the month.
For consignment, prepare separate PSI form, indicate under remarks column
consignment only.
Please refer to policy on consignment.
2. Fill-out the PSI form designed for appliance, motorcycle, furniture, and ATS. (see sample
form on the next slide on How to fill-out PSI)
3. Seek approval of the store manager and the regional manager.

4. Forward the PSI form thru skype to the HO-S.O. on or before the cut-off date which is
every 5th of the month.

Procedures
Head Office level:
HO SO
1.Receive and log the stores PSI.
2.Forward the PSI to HO-Procurement.
HO-Procurement
3. Review, analyse and approve PSI.

4. Prepare and process approval of Purchase Order (PO)

5. Forward the approval PO to HO-SO.
HO-SO
6. Scan and fax copy of PO to the Supplier and the store.

Procedures
Store level:
1.Receive copy of PO.
2.Receive stocks from Suppliers based on approval PO.
3.Issue Receiving Report (RR)

See policies and procedures on issuance of Receiving Report

(see pages 53-54)

PSI Form
Each number below corresponds to the number found in the PSI form:
1.STORE LOCATION name of the store
2.STORE MANAGER name of the store manager
3.REQUISITION NUMBER PSI number using the following code:
Product line code Month Number series
e.g. PSI Appliance for the month of August
AP-08-01

4.FOR THE MONTH OF Particular month this plan is intended for

5.PRODUCT LINE individual model of stocks on hand on spaces below
the product line where they belong.

PSI Form
6. SALES PREVIOUS3 MOS. last 3 months sales per model. Write
separately from the regular sales opposite the product model abnormal
high sales like institutional sales, government biddings, etc
7. BUS. PLAN current month sales plan
8. END INVENTORY refers to Stock Status as of end of month.
9. BEG. INVENTORY refers to Stock Status as of end of month.
10. PURCHASE PLAN THIS MONTH formula
Sales plan
xxxxxx
Less: Beginning invty.
xxxxxx
Purchase plan
xxxxxx
======

PSI Form
11. REMARKS explanations for abnormally high sales plan (e.g. Mall
sale, Caravan, Open House Sale and Computer Festival).
12. PREPARED BY name and signature of the person who prepared
the PSI plan form.
13. CHECKED BY name and signature of the Store manager who
checked the correctness of the PSI Plan.
14. FINAL PURCHASE PLAN APPROVED BY Forward to regional
manager for the checking and approval of the stock requested.
15. FORWARD TO H.O. Procurement for preparation and approval of
purchase order (P.O.) by authorized officers in the HO.

Requisition ( Order as Required)

When to use Requisition instead of PSI for stock requirement?
Use requisition for Order as Required (OAR) stocks. OAR means unavailable stocks
that are not regularly carried in the stores inventory; usually high end and
expensive products, but with ready buyer.
Procedure:
Store level:
1.Fill out requisition form.
2.Indicate in the remarks column, the OR number for 50% down payment
(individual buyer) or PO number for government deals.
3.Attach photocopy of OR or PO.
4.Secure approval of the Store manager. The store manager shall review and
analyse the requisition before affixing signature.
5.Send thru skype the requisition to HO-SO.

HO Level:
HO-SO
1.Receive the requisition from the store.
HO-procurement
2. Review and analyze requisitions. Check availability of stocks from
other stores for stock transfer.
3. Inform the store for any reduction or addition to the quantity of
requested stocks.
4. Prepare and process approval of purchase order (PO).
5. Forward the approval PO to HO-SO.
HO-SO
6. Scan and fax copy of PO to the Supplier and the store.

INVENTORY

Policies
All purchases or deliveries of all items shall be covered with PO and to be issued
with Receiving Report (RR) upon receipt of stocks.
All transfer of stocks to/from other stores shall be covered with requisition slip
and to be issued with Transfer Invoice (TI).
All purchase returns shall be covered with Purchase Return Slips (PRS).
The standard or ideal level of inventory per month shall be based on 30 days
sale.
The standard or ideal age of inventory shall be 30 days. For consignment,
standard age is 60 days.
Consignment of stocks shall be covered with approved ADB.
A daily and monthly actual inventory count shall be done.
Verification and reconciliation of discrepancies between inventory stock status
and physical count report must be done daily.

Good inventory management

1. Review stock aging regularly to monitor stocks movement; whether
slow moving, fast moving or non-moving.
2. Order stocks which will be sufficient for the sales plan of the
following month to avoid lost sales.
3. Avoid ordering stocks in small quantities because this will incur high
cost acquisition.
4. Use first-in, first-out (FIFO) method in disposing stocks to avoid
obsolescence.
5. Maintain cleanliness and upkeep of stocks.

Standard level of Inventory

To compute for the number of days level of inventory:
In units
Formula:
Inventory (as of)
_____________
x 30 Days = No. of days level
Sales (for the mo.)

Formula:

In Peso Value
Inventory (as of)
_____________
Cost (for the mo.)

x 30 Days = No. of days level

Receipt of Stocks

Policies & Procedures

All stocks received shall be covered with Receiving Report based on the following:
Approved Purchase Order (PO)
Actual units received
Receiving Reports are issued strictly at the time of transaction and all Receiving Reports;
with complete attachments for payment, must be forwarded immediately to HOAccounting.
The store is accountable for the forfeited suppliers discount due to delayed issuance
and submission of RR and its supporting documents.

Do not receive the damaged stocks. Indicate on the suppliers invoice damaged to
exclude them from payment.
Use net of discount as cost per unit in RR issuance.

RR shall also be issued to document receipt of promo and solicited items, and
replacements for previously returned inventories.
The store manager/OIC shall sign the RR copies.

Transfer of Stocks

Policies & Procedures

Issue transfer invoice to document the following transactions:
Using computerized transfer invoice:
All stocks to/from other stores with Requisition Slip.
Requisition Slip shall be approved by the Store Manager of both the
requesting and transferring stores.
Issuance of TI without actual transfer of stocks is a deviation of the policy and
which is subject to disciplinary action equivalent to DISMISSAL.

Stocks for scrapping with approved ADB.

Conversion of inventories to Fixed Assets with approved ADB.

Policies & Procedures

Using manual transfer invoice:
Sale of Fixed Assets with the following requirements:
Board Resolution
Deed of Sale
Journal Voucher Entry
Do not issue Sales Invoice

Transfer of fixed assets to other store with Journal Voucher Entry.

Return of Stocks

Policies & Procedures

Purchase Return Slip (PRS) is issued to document the following:
Defective items.
Recalled stocks by the supplier with special arrangement from the
management.
Issuance of PRS not following the above reasons for return is a deviation of the policy
and which is subject to disciplinary action equivalent to DISMISSAL.

Some invalid reasons for issuance of PRS:

Overaged inventory with agreement between the supplier
to reverse the previously issued RR due to wrong posting
Per advise by the supplier
No actual return unit

Policies and Procedures

PRS shall be completely filled-out including signatures of Store Manager/Store

Supervisor/OIC and suppliers authorized representative.
Forward to HO-Accounting Department the pink copy of PRS together with the
following attachments:

Service Quality Report

Waybill and Delivery Receipt (if sent thru forwarder)
For Kawasaki Motorcycle not yet registered with LTO:
1. Technical Report with Recommendation to return signed by KMPC
authorized representative.
2. PNP Clearance
3. LTO Certification of Stock Report (CSR)

Policies and Procedures

For Kawasaki Motorcycles already registered with LTO under the
name of the buyer:
1. Technical Report with Recommendation to Return signed by KMPC
authorized representative.
2. Original Copy of LTO Certificate of Registration
3. Latest Original copy of Official Receipt of registration/renewal (OR)
4. Original copies (at least 3 sets) Deed of Sale signed by the registered owner.
5. Photocopy of owners valid ID (Drivers License, SSS/GSIS)
6. Residence Certificate/Cedula
7. Release of Chattel Mortgage (if CM is registered at the Registry of Deeds)
8. (For Corporate/Institutional Secretarys Certificate to Sell the motor
vehicle)

Policies and Procedures

All stocks covered with PRS are to be deducted from our payables to
suppliers.
The store is accountable for the return of stocks denied by the supplier
due to delayed submission of PRS and its supporting documents.

Return of Pre-Owned Unit

Transfer inventory booking of the unit from pre-owned to
brand new inventory.
Adjust-out the pre-owned unit.
Adjust-in the brand new unit using the original Receiving Report
(RR) cost.

Issue Purchase Return Slip (PRS).

Best Bike Operation Policies and

Procedures
For Best Bike Stores:
Only Honda Best Bike Stores are allowed to issue Receiving Report.
Issue one (01) Receiving Report per Delivery Acceptance (DA)

Every mailing schedule, send to HO-Accounting Department, Payable

Section, the following documents for processing of payment:
Original Receiving Report (RR)
Delivery Acceptance (DA)

Best Bike Operation Policies and

Procedures
For Non-Best Bike Stores:
Upon Receipt of stocks from Honda Phils. (Manila) thru the forwarder,
fax immediately the Delivery Acceptance (DA) to the Best Bike Store.
For Best Bike Stores:
Upon receipt of DA from Non-Best Bike Store, immediately issue
Receiving Report and Transfer Invoice.

Consignment Inventory

Policies and Procedures

An approved ADB is required before any supplier is allowed to
consign stocks in the store.
Standard age of consigned stocks is 60 days.
Return stocks after 60 Days to the supplier.
Issue another PO to consign stocks.

Receipt of Consigned Stocks

Inventory Clerk
Upon receipt of stocks, receive and check the Suppliers invoice or Delivery
Receipt and keep these documents for future payment when consigned stocks are
sold.
Purchase Order Number shall be indicated in the Suppliers invoice or Delivery Receipt.
Verify PO number with stores copy.
Stocks without PO shall not be accepted.

Compare the model and quantity of the units delivered against suppliers invoice
or delivery receipt and Purchase Order.
Issue Consignment Receiving Report (CRR) based on actual units received.
Manually assign a number series per CRR issuance. Print one (01) CRR copy using
ordinary computer paper (form 1) for file and control purposes.

Upon Sale of Consigned Stocks

Inventory Clerk:
Convert consignment to brand new and use computerized Receiving
Report pre-printed form.
Once changed to Brand New Status, proceed to issuance of sales
invoice.
Write manually in the consignment Receiving Report (CRR), the
Receiving Report (RR) Number, Emcor Sales Invoice Number, and date
of sales as references.
Write the Receiving Report (RR) Number in the Suppliers Invoice.

Upon Sale of Consigned Stocks

Submit a request for payment payable to supplier with the following
attachments:
Original Receiving Report
Consignment Purchase Order (PO)
Suppliers Invoice
Attach only photocopy of suppliers invoice in the receiving report for partial payment.

In case other EMCOR Store has a ready buyer

Convert consignment to brand new and use computerized Receiving
Report pre-printed form.
Please refer users manual on How to change consignment status to
brand new

Issue Transfer Invoice to requesting store.

If consigned stock is returned to supplier:

Inventory Clerk:
Issue a consignment Return Slip (CRS) upon return of consigned
stock. Manually assign a number per CRS and print one (1) copy using
ordinary computer paper (form 1).
Issue Delivery Receipt and have it approved by the manager or store
supervisor.
Suppliers authorized representative must affix his/her signature over printed
name upon receipt of the stock/s.

If consigned stock is sold but was returned by the

customer:
(Note: Supplier was not yet paid and the unit is not defective)

Issue a Credit Invoice.

Adjust-out the unit.
Auto-entry:
Shipments to/fr Head Office xxx
Inventory APP/MC/FUR/ATS

xxx

Prepare Adjusting Journal Voucher entry to reverse the Receiving

Report (RR) and the Shipments to/fr Head Office:
1.Store Adjusting Entry:
AP-Trade
xxx
Supplier
RR No.
Shipments to/fr Head Office
Due Head Office
2. Head Office Contra Entry:
Due Store
xxx
Input Vat others

xxx
xxx

xxx

Issue a consignment Receiving Report (CRR).

Warehousing of Inventories

Policies and Procedures

All stocks should be stored in dry places and at room temperature.
Improper storage may lead to:

Poor performance
Rapid deterioration
Reduced Durability
Company Losses

In piling of stocks, follow the instructions provided by the

manufacturer found in the carton boxes.

Below are common instructions or labels:

For products which come in other packaging materials like plastic

cellophanes or foil, the same care and applicable piling instructions
should be followed as those products in cartons.

RECEIVABLE

Sales

Policies and Procedures

All sold-out items shall be covered with Sales invoice.
Delivery of units shall be made only after the down is paid.
The store is accountable for the unpaid down or down balance of delivered
units.
Post dated checks and current dated checks can be accepted for down
payment provided delivery of unit is made only after the check is cleared by
the bank and is credited to our account.

Selling price, GPR, and finance rate used shall be based on the official
Price list.
Sales invoice shall be approved by Store Manager and Credit Officer.

Policies and Procedures

Store managers/Supervisors is allowed to give a maximum
of P500 sales discount for motorcycle.
For more than P500, seek the approval of the EXECOM using Price
Approval Sheet Form.
For appliance, regardless of amount of the discount, shall seek the
approval of the EXECOM using Price Approval Sheet Form.

Policies and Procedures

Customer shall affix his/her signature in the Sales Invoice to affirm
his/her actual receipt of the unit.
Computerized Sales Invoices shall be used to document all sales
transactions in the store; which means automatic posting in the
system.
Do not use manual sales invoice.
Manual issuance (e.g. typed or manually written) using computerized sales
invoice is not allowed.

Manual Sales invoices shall be used only on sales transactions during

caravan or off-site store activities.
Issuance of one sales invoice to document sale of unit and installation
(in case of parts & service transaction)
To avoid double charging of VAT.

Sales Returns

Policies and Procedures

Stocks for replacement and repair must be properly documented and
reported to the Suppliers immediately.
Issue the regular charge invoice to document the sales return.
In case of refund, pay the customer through Petty Cash Fund or
Request for Payment. See guidelines on Refund to Customers.
Only the store bookkeeper is allowed to book credit invoices.

Sales Book
What to check before signing the Cash Sales Book and Sales Book?
If selling Price, Gross Profit Rate, and Finance Rate used are basedon
the Price List.
If an approval sheet, duly signed by SO Authorized Officer, is attached
to the Sales Book; in case of granting an MC discount of more than
P500.
If the approved ADB is attached, in case of irregular pricing.
In case of sold pre-owned unit:
If Ex-owners name, FGRR no. and date are indicated.
If the guidelines in the disposal of pre-owned units are followed. Refer
guidelines on pages 154-162.

If forwarding of all receivable (RCV) transactions to General Ledger

(GL) program is done daily.

Sales Book
What to check before signing the Cash Sales and Regular Sales Books?
If there are no missing series of sales invoices.
If promo items taken from inventory are booked.
If off-store sales transactions are booked within the period of activity.
If Debit Memo for under pricing is prepared, encoded and submitted
to HO-Accounting Department.
If all sales returns are properly documented by using regular sales
invoice FOR CREDIT.

Sales Promotions

Procedure on Handling Promo Helmets

The preparation of requisition slip for promo helmets shall be done
individually by the requesting store, regardless of store classification
may it be a whole-goods or parts & service store.
Request of Helmets
Requesting Store
Prepare a requisition slip monthly based on sales plan per month.
Seek approval from the Store Manager/Supervisor and Regional
Manager and let them affix their signatures on the requisition slip.
Send the requisition to Service-H.O. thru fax or Skype (scanned).

Service-H.O.
Receive the approved requisition slip.
Prepare and process approval of Purchase Order (PO) based on the approved
requisition slips from stores.
Send the PO to the supplier thru fax. For local purchase, send the PO to the store.
Ask for a shippers waybill number and relay the information to the requesting
stores thru fax or skype.
This is not applicable for local purchase.

Send the proceed PO and requisition slip to the requesting stores thru pouch.
Requesting Store
Receive helmets from the forwarder/local supplier.
Verify the quantity against PO.
Issue Receiving Report (RR) at cost. (Department: Service-40)

Transfer of Helmets
Transferring of promo helmets is allowed only in case of unavailability
of stock in the store to be given to a sold out motorcycle and is subject
to approval of the Store Manager of the transferring store.
Requesting Store
Prepare a requisition slip and indicate the customers name.
Seek approval from the Store Manager/Supervisor and let him/her
sign on the requisition slip.
Send the approved requisition to the transferring store.
Transferring Store
Receive the approved requisition slip.
Issue Transfer Invoice (TI).

Prepare JV entries to charge the F&H cost per helmet.

Formula: Total F&H /Total number of helmets = F&H per helmet

E.g.

Total F&H for 50 helmets is P1,250.00

P 1,250.00/50 = 25.00 per helmet
TI-0001 = 5 Helmets

F&H cost = 125.00

JV entry to book F&H cost for TI-0001:
Transferring Store:
Due-Store

125.00

S/E-AP

125.00
Freight & Handling

Contra Entry:

Requesting Store:
S/E-AP

125.00
Freight & Handling

Due-Store

125.00

Requesting Store
Receive helmets from the transferring store.
Verify the quantity against the requisition slip and TI.
Book the Transfer Invoice (Department: Service-04).

Click print. Print two (2) copies using the Form 1 paper.
Let the customer affix his/her signature on the print outs.

Encode in the customer ledgers attachment (RCV Program).

Book contra JV Entry.
Giveaways Auto-Entry:

Due- Head Office

xxx

Inventory SS

xxx

Contra JV entry:

Sales MC

xxx

Due Head Office

xxx

Attach one (1) copy of the print out to the contra JV entry.

Send the JV Entries to HO-Accounting.

Conduct actual count of promo helmets monthly, reconcile inventory and attach to the monthly
inventory recon.
Print Giveaway Book semi-monthly (RCV>Printing/Report>Giveaway Book) and attach to Sales
Book to be sent to HO-Accounting.

Zero Rated and Vat Exempt Sale

Policies and Procedures
Items sold shall b e for office use and not for personal use.
Submit to HO-Accounting Department, the following documents:
Photocopy of issued Emcor sales invoice.
BIR certification stating that our customer is a zero rated or is tax exempted
company or institution.
Purchase Order from the company or institution.

Stamp or type VAT-exempt sale or zero rated sale remarks in the

invoice.

Credit Cards

Policies and Procedures

Bank payment for credit card transactions requires Transaction and
Settlement Slips.
Swipe the card, if machine is online.
Transaction and Settlement Slips will come out from the machine.
Make sure to press the Settlement button immediately for validation of every
transaction.

If offline
Call the Bank for manually processed approval, stating the Cardholders name,
Cardholders number and the amount for approval, and then manually issue Transaction
Slip and Settlement Slip.
Submit daily to the bank, manually processed Transaction Slips and Settlement Slips with
the Banks acknowledgement.

Policies and Procedures

Give the Transaction Slip, machine or manually processed, to the
customer for signature.
Process the sales invoice and the gate pass.
Log every credit card transaction on a per credit card company.
Safe keep the merchant copy of the Transaction and Settlement Slips
for reconciliation purposes.
Use specified bank terminal (e.g. BPI cards for BPI terminal only).
However, stores with no available bank terminal shall advice the
recipient store with terminal that a transaction takes place. The
transaction shall be posted in the logbook.

Policies and Procedures

Upon receipt of bank credit advice, prepare immediately JV Entry to
take up payment for credit card transactions.
Official Receipt can only be issued for those customers who would demand
for receipt not for booking but for memo purpose entry only.

Coordinate with the HO-Cash Section for unpaid credit card

transactions.
Submit to HO-Cash Section the Summary of Unpaid Credit Card transactions
per credit card company. Attach the copy of transaction slip and settlement
slip for reconciliation purposes.

STORE LEVEL FLOW CHART CREDIT CARD

Cashier

Receives Customer Card

Is machine
online

Collection

Policies and procedures

All collection (Cash & Checks) shall be covered with Official Receipts
(OR). The issuance is based on the actual amount received whether
partial or full.
In case of partial payment, refer the account to the Financed Sales
Representative, before accepting the payment.
Editing of encoded Field Official Receipts is done in Head Office EDP
Department thru a Data Correction Slip to be submitted by the store.

Local, current and post dated checks can be accepted for payment of
down, notes or cash purchases.
In case of payment for down or cash purchases, delivery of unit is made only
after the check is cleared by the bank and is credited to our account.

Policies and Procedures

All collections: either cash or checks, are to be deposited intact daily to the local
depository bank.
For notes installments collected in the field, use Carbonless OR.
For notes installments collected in the office, use Pre-printed OR.
For down payments use Pre-printed OR and/or Regular OR.
For open accounts; use Pre-printed OR if collected in the office, or Regular OR if
collected in the field.
For PDC payment, give the pink copy to the customer and attach the original copy
to the DCCR.
At the end of each day, all un-deposited collections, store funds, and accountable
forms shall be kept securely in the vault.
The vault combination shall be known only by the Cashier and the Store Manager.

Policies and Procedures

The vault ombination shall be changed when the cashier,
manager/office-in-charge transfers, resigns or retires.
All deposits must be acknowledged by the authorized bank
representative to confirm accountability.
If after the regular daily deposits, cash collections are still in bulk
(more than P10,000.00), prepare separate deposit slips as late
deposit to the bank.

2014/10/31

Policies and Procedures

Give prompt payment rebate (PPR); as part of the stipulation on our
installment sales documents, if the payment is:
Made on or before due date.
Made on the succeeding working day if the due date falls on a holiday.
Made either in the office or in the field.

PPR AP/FUR 100.00 (Short term)

PPR APP/FUR 75.00 (Long term )

Granting PPR on customer's payment made after due date or waiving

late charges on delayed payments required approval from the Credit
Officer.
In the absence of CO, the following officers are authorized to approve: Store Manager,
Sales Supervisor.
2014/10/31

Policies and Procedures

The authorized Officer who made the approval of the requested PPR
or waived late charges shall countersign the remaining copies of the
official receipt.
A corresponding penalty shall be given if payment is made after two
working days grace period from due date.
Customers will be charged 2% interest per month using compounded
method.

2014/10/31

Policies and Procedures

Give advance payment discount if:
Payment is made thirty (30) days or more before the fixed period and the
amount of the obligation has fallen due.
With a term of 6 up to 36 months and the amount financed (LCP) of not less
than Php 4,500.00.
Customers can avail of these discounts per OR:
5% - For one month advance payment
7% - for two or more months

Payment is made either in the office or in the field.

2014/10/31

Policies and Procedures

All collections in a form of check shall be issued under the name of
Emcor, Inc.
Third Party Check is not acceptable since payee is not Axermatic International.
Pay to CASH is not acceptable because it is payable to the bearer, and the bank may pay
to the person presenting the check for payment without the drawers endorsement.

Local checks drawn on local bank where they are issued have three
(3) banking days clearing period.
Regional or out of town checks drawn on banks in areas covered by
the Central Bank regional clearing have seven (7) banking days
clearing period.
Out-of-Town checks drawn on banks in areas NOT covered by the
Central Bank regional clearing have one (1) month clearing period and
are subject to bank charges by both the drawer and the depository
2014/10/31
bank.

HOW TO DETECT A COUNTERFEIT MONEY:

Counterfeit Money is money made in imitation of the real one with
the intention to deceive.
There are various checkpoints in detecting fake money. To be able to do
this, familiarize yourself first about the different characteristics of the
following features:
FAKE MONEY
Genuine coins show an even flow metallic grains. The details are of
high relief, that they can be readily felt, distinctly by the fingers.
Counterfeit coins feel greasy and appear slimy. The details are worn
out, not sharp and prominent as in the genuine.
2014/10/31

FAKE BILL
FEATURES
PAPER
PORTRAIT
WATERMARK
METALLIC

VIGNETTE
2014/10/31

GENUINE
- can feel the main parts
- appears life-like
- it is underneath the
security lace work
- A special thread placed
vertically on the bill.

- fine, distinct & sharp

FAKE
generally smooth.
appears dead.
This is imitated by
printing white ink.
by means of printing
A vertical line or just
an insertion of twine
thread.
poorly printed

FAKE BILL
FEATURES
COLORED FIBERS
COLOR OF EACH
DENOMINATION

SERIAL NUMBER
CLEANESS OF
PRINT
2014/10/31

GENUINE
- Scattered at random
& can be readily pick-off.
- have a polychrome
background.

FAKE
it cant be picked off
& can be erased.
lacks vividness.

- are clearly printed &

uniform in style.
- different printed
feature. It is perfect,
clean & sharp.

poorly printed & not

Uniform in style.
in general, bill looks
like a second hand

On-line Payment

2014/10/31

Policies and Procedures

When accepting on-line payment from the customer:
Secure a proof of payment like copy of validated deposit slip named under
Axermatic Internaional Corp.
Verify customers account to which the payment is intended to.
Check if payment is already credited to our bank account through passbook or
anytime bank statement.
If credited, issue official receipt. Attach a photocopy of passbook or anytime
bank statement.

Use of employees personal ATM account as depository account for

customers payment is a deviation to our companys policy.
Payment shall be made thru Axermatic International Corp depository account.

2014/10/31

Daily Cash Collection Report

2014/10/31

Daily Cash Collection Report (DCCR)

What to check before signing the DCCR?
If DCCR is prepared daily.
If the series of all issued Official Receipts and Cash Invoices are in
numerical sequence.
If the series of all issued Official Receipts and Cash Invoices are in
numerical sequence.
If the series and amount of manually issued official receipts and cash
invoices are accurately booked.

2014/10/31

Daily Cash Collection Report (DCCR)

If the collection per actual count tallies with the DCCR amount and
the deposit slips.
If daily deposits are credited on the passbook on the same day or on
the next banking day.
For cancelled Official Receipts:
For ORs not yet booked, check if complete set of official receipt is attached to
the DCCR.
For ORs already booked, check the following:
If reversal JV entry is prepared with Original OR copy as support.
If the accounting and cashier copies of Official Receipt are attached to the DCCR.

Check if a memo explaining the reason of the cancellation is submitted to the

Store Manager.
2014/10/31

Customer's Deposit Account

Policies and Procedures

Payments shall be taken as customer's deposit if:
Unit is still ordered.
Unit is already available but the customer is still undecided.

There shall be a monthly review of customer's deposit schedule to

check if deposits are regulary applied or refunded.
If customer's name in the Official Receipt differs from that of the
invoice, there should be a memo to be issued by the Store Manager
to Accounting Dept for proper application.

Postdated Checks (PDC)

Frequently Asked Questions
1. What to do if a PDC is received?

Issue O.R for every PDC received. Issue OR pink copy to the
customer and attach original OR copy to the DCCR.
Write the required references at the back of the PDC, like:
Customer's name
OR number and OR date
Invoice number
Bank's account number
Stamped "FOR DEPOSIT".AXERMATIC INTERNATIONAL CORP.

Segregate checks. These should be filed and arranged

chronologically based on due dates and according to product line
(AP/FURN/).
2.What to do if a PDC falls due?
Deposit PDC on its due date.

Postdated Checks (PDC)

Frequent Asked Questions
3. What to do in case a customer asks to hold the postdated check?
Secure a written request from the customer subject for
STORE MANAGERS approval.
4. What to do in case a PDC will be replaced with cash?
Issue an official receipt and prepare Journal Voucher entry to
reverse the previous PDC entry.
5. Are postdated checks accepted for downpayment?
Yes, provided delivery of unit is made only after all the following
conditions are met:
The check is deposited
cleared by the bank
credited to our account.

Postdated Checks (PDC)

Frequent Asked Questions
6. Do we allow another PDC as replacement to the originally issued
PDC?
Yes, provided that the due date, account name, and the amount
of the newly issued PDC are the same with that of the original
PDC.
Always refer to the Credit Officer before accepting the replacement
check.

Returned Checks

Policies and Procedures

Cashier shall prepare three (3) copies of debit memo upon receipt of
the bank debit advice for any returned check.
DM is distributed as follows:
original (without JV entry) Customer's copy*
Duplicate (with entry)
Accounting copy
Triplicate (with entry)
Cashier's copy
*The FSR gives to the customer his/her copy of the debit memo.

Release bounced check once replacement is received. Issue another

official receipt upon receipt of the replacement; whether it is a cash
or a check.
If multiple checks (PDC), released bounced checks only when
replacement is cleared. These are our supporting documents in case
of any legal proceedings.

Acceleration

TWO TYPES OF ACCELERATION:

1. Long term to Cash/Short term
2. Long term to Long term

A. Long Term to Cash (Brand new and Pre-owned units)

Steps:
1. Print the customer's ledger.
2. Compute the acceleration discount using this formula:

CP*/Appraisal Value**

xxx.xx

Add: Miscellaneous Charges ***

+ xxx.xx

Less: Down paid

- xxx.xx

Amount to be financed

xxx.xx

Multiply by:
Total

(****FI rate x new term + 100)

xxx.xx

xx %

Add: Availed PPR

xxx.xx

New PN Value

xxx.xx

Less: Notes payments

xxx.xx

Total
Add: Availed APD
NET DUE

xxx.xx
P __________xxx.xx

*CP (cash price): as basis in computing acceleration of long term to short term or

cash for brand new units. Refer price list at the time of sale.
In case the Cash Price is lower at the time of acceleration, do not use the
current Cash Price to avoid charges.
Cash Price APP
= SRP
Cash Price ATS
= (RR cost + VAT +Freight)/Trading mark-up
Cash Price MC
= (RR cost + VAT) / Trading mark-up + Misc. Charges
Note: MC RR cost is inclusive of freight
Cash Price FUR
= RR cost + VAT / Trading mark-up
**Appraisal Value: as basis in computing acceleration of Long Term to short term of
pre-owned units.
*** Misc. Charges:
a. Actual Expenses incurred less Misc. Charges for cash transaction (1,700)
b. P2,000.00 based on the memo for short term price list
****Finance Rate is based on short term pricel
FUR/APP
3%

After the acceleration computation, Axermatic International Corp will

do the following documentations:
1. Issue Credit Invoice.
2. Issue Sales Invoice ( Open account ) equal to the total amount paid
by the customer.
Total Invoice Price = Down Payment + Notes Payment net
of availed PPR - Availed APD + Acceleration payment.
Issue Official Receipt on the net due based on the acceleration computation.
Apply payments to the new sales invoice.

Acceleration Computation
ILLUSTRATION OPTION 1:
CASH PRICE

61,800.00

ADD: MISC. CHARGES

2,000.00

LESS:
DOWN PAYMENT
NOTES PAYMENT

4,500.00
0

4,500.00

TOTAL

59,300.00

ADD:
AVAILED APD

AVAILED PPR

NET DUE

0
P

59,300.00

Acceleration Computation

ILLUSTRATION OPTION 2:

CASH PRICE

61,800.00

ADD: MISC. CHARGES

194.00

LESS:
DOWN PAYMENT
NOTES PAYMENT

4,500.00
______0

__4,500.00

TOTAL

57, 494.00

ADD:
AVAILED APD

AVAILED PPR

_______0

NET DUE

_________0
P

__57, 494.00

Total Invoice Price = Down Payment + Notes Payment (net of availed PPR) Availed APD + Acceleration
payment

Option 1

63,800 = 4,500 + 59,300

Option 2

61,994 = 4,500 + 57,494

ACCELERATION COMPUTATION (36 to 4 mos.)

ILLUSTRATION:
Option 1
CASH PRICE

84,000.00

ADD: MISC. CHARGES

64.00

LESS: DOWN

(12,500.00)

AMOUNT TO BE FINANCED

71,564.00

MULTIPLIED BY:
(5% x 4 + 100%)

120%

TOTAL

85,877.00

ADD: AVAILED PPR

1,200.00

PN VALUE

87,077.00

LESS: NOTES PAYMENTS

(16,932.00)

TOTAL

70,154.00

ADD: AVAILED APD

NET DUE

848.00
P

70,993.00

Total Invoice Price = Down Payment + Notes Payment net of availed PPR Availed APD + Acceleration payment

Option 1 98,377 = 12,500 + (16,932 1200) 848 + 70,993

ACCELERATION COMPUTATION (36 to 4 mos.)

ILLUSTRATION:
Option 2
CASH PRICE

84,000.00

ADD: MISC. CHARGES

2,000.00

LESS: DOWN

(12,500.00)

AMOUNT TO BE FINANCED

73,500.00

MULTIPLIED BY:
(5% x 4 + 100%)

_____120%

TOTAL

88,200.00

ADD: AVAILED PPR

1,200.00

PN VALUE

89,400.00

LESS: NOTES PAYMENTS

(16,932.00)

TOTAL

72,468.00

ADD: AVAILED APD

___848.00

NET DUE

73,316.00

Total Invoice Price = Down Payment + Notes Payment net of availed PPR Availed APD + Acceleration Payment
Option 2

100,700 = 12, 500 + (16,932 1200) 848 + 73,316

Long Term to Long Term (Brand new and Preowned units)

*LCP (Least Cash Price): as basis in computing acceleration of long term
to long term for brand new units. Refer price list at the time of sale.
**Appraisal Value: as basis in computing acceleration of Long term to
long term of pre-owned units.
***Misc. Charges:
a. Emcor P 3,500.00
b. CTFSI P 2,000.00
c. Pre-Owned Unit P 4,000.00
****Finance Rate is based on the pricelist upon sale.

HOW TO RE-COMPUTE THE FINANCE RATE

PER MONTH
Computations should be based on the data upon sale
1.Compute the PN Value net of PPR
PN VALUE

LESS: TOTAL PPR (300 x 36 mos.)

PN VALUE NET OF PPR
2. Compute the amount to be financed
LCP
ADD: MISC. CHARGES
LESS: DOWN
AMOUNT TO BE FINANCED

128,700.00

( 10,800.00)
117,900.00
69,553.00
3,500.00
(4,500.00)
68,553.00

HOW TO RE-COMPUTE THE FINANCE RATE

PER
MONTH
3. FI rate computation
PN VALUE NET OF PPR

117,900.00

LESS: AMOUNT TO BE FINANCED

_(68,553.00)

UNEARNED FINANCE INCOME

49,347.00

DIVIDED BY: AMOUNT TO BE FINANCED

68,553.00

TOTAL FI RATE

.7198

DIVIDED BY: ORIG. TERM

36

FI RATE PER MONTH

2%

Fi rate

= PN Value Net of PPR Amount to be financed / Amount to be Financed

Orig. Term

2%

= (177,900 68,553

36

ACCELERATION DATE October 2, 2010 (36 TO 12 MONTHS)

ILLUSTRATION:

LCP

69,553.00

ADD: MISC. CHARGES

3,500.00

LESS: DOWN

(4,500.00)

AMOUNT TO BE FINANCED

68,553.00

MULTIPLIED BY:
(2% x 12 + 100%)

124%

TOTAL

85,005.72

ADD: AVAILED PPR

3,300.00

PN VALUE

88,305.72

LESS: NOTES PAYMENTS

(50,166.33)

TOTAL

38,139.39

ADD: AVAILED APD

NET DUE

2,102.00
P

40,241.39

Restructuring of Accounts Writing-Off

of Accounts

Policies and Procedures

Shall be covered with approved Authority to Do Business (ADB).
Upon receipt of the approved ADB, prepare Journal Voucher entry
with customer's old and new ledgers as supporting documents.

FORMULA:
Outstanding Balance
Multiply by:

P24,325.00

(new term-rem. mos. x FI rate + 100%)

(13 mos - 5 mos. X 2.5 % + 100%)

NEW PIN:
Divided by term
New monthly

120%

P29,190.00
13
P2,245.38
round-off 2,246.00

Payment of at least 50% of the Pronote is required before

resturcturing an account.

A.

If accelerated within the maturity period of the

original transaction

36 to 32 mos. (May 25, 2007 to Dec. 25, 2009)

PPR = P 100/mo.
Misc = 3,000.00
Availed PPR = P600
FI rate = PN Value Net of PPR - Amount to be financed / Amount to be financed
Orig. Term
2.20% = (101,700 - 56,359) / 56,359
36

Computation:
LCP
Misc. Charges
Less: DOWN PAYMENT
Amount Finance
Multiply by: (2.20% x 32 mos)
Total
ADD: Availed PPR
PN Value
Less: Notes Payment
Total
Add: Availed APD
NET DUE (On or before Dec. 25, 2009)

61,859.00
3,000.00
(8,500.00)
56,359.00
170.40%
96,035.74
600.00
96,635.74
(80,975.00)
15,660.74
0.00
15,660.74

B.

If accelerated after the maturity period of the original

transaction
Restructured Date: Dec. 25,2009
12 to 7 mos. (Dec. 25, 2010 - June 25, 2010)
Total Amount Paid: P 13,476.00
Outstanding balance
Multiply by: (2.5 % x 7 mos)
(Recompute based on restructuring proposal)
NEW PN (On or before June 25, 2010)
Less: 6 mos payment (P2,246 x 6)
NET DUE (On or before June 25, 2010)

24,325.00
117.50%

28,581.88
(13,476.00)
15, 105.88

Deposited Units

Policies and Procedures

The Financed Sales Representative (FSR) upon pull-out of the unit,
shall issue Voluntary Deposit Slip (VDS) with the customer's signature.
The pink copy of the VDS shall be signed by the Store Manager and
Credit Officer before the VDS is recorded and filed.
In case of in lieu unit, the FSR shall indicate an additional remarks in
the VDS. e.g. "In lieu of _________ model _________" or "In
replacement of model _________".
The unit indicated in the VDS shall be the same unit actually pulled
out.
The standard age of deposited units is 30 days.
Monthly, an actual count is performed by both the inventory clerk
and the Credit Officer. The actual count report will be submitted to
the store bookkeeper for comparison with the books.

Policies and Procedures

The aging of the past due amount is suspended only from the month the unit is deposited and automatically resumes two
months after; neither redeemed nor foreclosed.
E.g
a.
Due date pf the account is every 20th of the month. VDS was issued on
5/19/2010, but there was already 2 months delayed (March and April) at
month, the aging will only stop at May.

P1,000.00 per

As of May 31,2010 aging:

Account Bal.
Pxxxx.xx

Current

30Days

60Days

90days&over

(June)

(May)

(April)

(March)

1,000.00

1,000.00

b. Two months after the deposit, the unit is neither redeemed nor foreclosed, aging will automatically resume in
the month of July.
As of July 31, 2010 aging:
Account Bal.

Current

30Days

60Days

(August)

(July)

(June)

1,000.00

1,000.00

1,000.00

90Days&over
(May)
1,000.00

Guidelines on In-Lieu Units

The company reserves its right in filing a case against the customer who refuses to
deposit the mortgaged or leased unit. Therefore, getting in-lieu item from the said
customer just to close his balance is not an option, although in some cases, in-lieu
units are accepted with the following qualifications:
Qualifications to get in-lieu units:
The following shall be the basis in pulling-out in-lieu items:
a. When the unit is already missing and the customer refused to pay the
balance.
b. When the customer wants to surrender the mortgage or leased unit which is
ready non-serviceable or totally damaged brought about by his/her misuse or
negligence.

Guidance on In-Lieu Units

Procedures
1. FSR shall coordinate with the Credit Officer before getting any in-lieu items.
2. The Credit Officer together with the mechanic/technician shall conduct preliminary
appraisal on the unit and to ascertain its good condition before taking it out from
the customers residence or establishment. The appraisal shall be made final by
the appraising team members (Store Manager, CO, and Mechanic/Technician)
3. In case that the in-lieu unit is other that motorcycles, appliance and ATS products,
the appraising team shall seek help from competent appraiser outside.
E.g. four-wheel vehicle- a certified car mechanic in the local shops.

Guidance on In-Lieu Units

4. The appraising team shall ensure that the market value of in-lieu item will offset
the Promissory Note (PN) balance.
5. If the initial appraised value of prospective in-lieu items could not compensate the
account balance, then proceed to litigate the account or to other remedial action.

ADB is required on in-lieu units that cannot compensate the account balance.

6. Outdated ATS or electronic products shall not be accepted as in-lieu units.

7. Highly perishable farm harvests shall be accepted only when there are direct
buyers.

Redemption of Deposited Units

Policies and Procedures

Redemption period is 30 days from VTS Date.
Redemption of deposited units required a settlement or payment of the
past due installments and penalties.
The Financed Sales Representative (FSR), upon release of the unit to the
customer, shall issue a Redemption Receipt (RDR) with the customers
signature.
The Store Manager and Credit Officer shall approve the Redemption
Receipt.

Procedures for Deposited Units Pulled Out

by Other Stores

I.

UPON PULL-OUT OF UNIT

Situation: Juan dela Cruz bought one unit of FJ-110 in Store A. The unit is deposited in
Store B
1.
Pull-out or receive unit from customer.
2.
Prepare voluntary deposit. Distribute the copies accordingly.

Store B.

The pink copy of the VDS shall be signed by the Store Manager and Credit Officer.

3.
4.
5.
6.
7.
8.
9.

Immediately accomplish the inspection report for the pulled-out unit.

Prepare an Appraisal Report. Refer to Guidelines on Pre-Owned Units.
Send a copy of VDS to Store A thru Skype, fax or spark system.
Clean, tag and safe keep the unit.
Send a redemption notice to the customer before the expiration of the 30-day period.
Store A
Encode the VDS.
File the VDS Copy.

II.

UPON REDEMPTION
Store B

1.
2.
3.
4.

Collect the amount in arrears; past due installments and

Issue Official Receipt.
Prepare a contra JV entry on payments to be sent to Store A
the date reference.
Prepare and approve the Redemption Receipt (RDR).

5.
6.

reflecting the OR# and

The RDR shall be signed by the Store Manager, the Credit Officer and the

customer.

Release the unit after the issuance of Official Receipt and

Redemption Receipt.
Send a copy of Redemption Receipt to Store A thru Skype, fax or
Spark system.
Store A

7.
8.

penalties.

Encode the Redemption Receipt.

Encode the contra entry to update the account of the customer.

III. UPON FORECLOSURE

1.

2.
3.
4.
5.

Store A
Prepare a Foreclosure Goods Receiving Report (FGRR)
immediately after failure of the customer to redeem
Encode the FGRR.
Prepare Transfer Invoice to Store B for the transfer of
Send all set of documents to Store B, such as: OR, CR,
assumption of Mortgage and Deed of Assignment.
Forward the FGRR and other required attachments to
Accounting Department.
Refer to Policies and Procedures on Pre-Owned Units.

his unit.
inventory.
key,
HO-

PRE-OWNED UNITS

Policies and Procedures

Inventory
Foreclosed Goods Receiving Report (FGRR) shall be issued to document
foreclosed units.
FGRR shall be booked upon receipt of the following requirements:

Original and accounting copies of the FGRR

Endorsement Letter
Report on Repossessed
Voluntary Deposit Slip (VDS)
Notice Redemption

The model and quantity per FGRR shall be based from VDS.
Issuance of FGRR must be at least 30 days from VDS date.

Policies and Procedures

Inventory
Encoding of FGRR shall be done by the Store Manager.
Cut-off of encoding of FGRR is every 25th of the month.

Monthly, an actual count is performed by both inventory clerk and

Credit Officer. The actual count report will be submitted to the
store bookkeeper for comparison with the books.
Missing unit will be charged to FSO personnel.

Standard age is 30 days.

There shall be a zero percent (0%) inventory on 90 days and over.

Policies and Procedures

Sales
All pre-owned units shall be displayed and merchandized in the showroom.
All pre-owned units shall be disposed in a first come, first served basis. There shall be no
reservation.
The appraisal value shall be used as LCP in the computation for the sale on installment basis.
Delivery of unit shall be made only after the down is paid.
Reduced/discounted pre-owned units shall be sold on CASH basis.
Sale on reduced/discounted price shall not be entitled to an incentive.
The appraiser or member of the appraisal team shall not be the buyer of the pre-owned unit.

Guidelines on Pre-Owned Units

AP/MC/FUR UNITS
1.

Class A

2.

Appraised value is from 60% to 70%vs. Brand New Cash Price (BNCP)
A1 condition/running/functional , with minimal or no damage
Doesnt require repair, for sale as is where is

Class B

Appraised value is from 31% to 59% vs. BNCP

If repaired, unit shall be re-appraised as class A.

3.

Before disposing the unit, the new appraisal shall be submitted to the bookkeeper.

Class C

Appraised value is 30% and below vs. BNCP or with no value at all
If the appraisal of the unit has no value, the account balance shall be written-off rather than foreclosed.
Either for foreclosure or for write-off, an approved ADB is a pre-requisite for recording units under this
classification.

Classification of Pre-owned Units

ATS UNITS
1. Class A (Current Model/Specs)
Appraised value shall not be lower than 70% vs. SRP/CP
A1 condition/running/functional, with minimal or no damage
For sale as is where is

2. Class A (Phase Out/Obsolete)

Appraisal shall not be based at market value

A1 condition/running/functional, with minimal or no damage
Inspection Report must have attached specs of current model for comparison to justify appraisal value
For sale as is where is

3. Class B (Current Model/Specs)

Requires repair
Appraisal is equal or lower than 70% vs. BNCP

Guidelines on Pre-Owned Units

ATS Units
4. Class B (Phase Out/Obsolete)
Requires repair
Appraisal is equal or lower than 50% vs. BNCP

5. Class C
Appraised value is 30% and below vs. BNCP or with no value at all
Shall be supported with approved ADB before encoding of foreclosure
If the appraisal of the unit has no value, the account balance shall be
written-off rather than foreclosed

Policies & Procedures in Handling Pre-Owned

Units
with CTFSI

CTFSI
Issue and encode Deed of Sale (DOS) to document the transfer
pre-owned inventory from CTFSI to
Issue the DOS under the name of the customer /buyer, for
registration purposes.
EMCOR
Issue Receiving Report using CTFSI as supplier. The amount is
based on the selling price indicated in the CTFSI Statement of
Foreclosure.
Prepare Request for Payment (RFP) payable to CTFSI. Attach
the Receiving Report and the Deed of Sale (issued by CTFSI)

EMCOR
If sold on Installment (6 mos. & above accounts):
Issue sales invoice to CTFSI.
Accomplish CTFSI Contract of Lease with Option to Buy and other
required installment documents.
CTFSI
Make Request for Payment to EMCOR. Attach the ff:
- Statement of
Account and
- Transmittal with complete set of installment documents.

If sold on cash:
Issue sales invoice to customer.

PAYABLES

Suppliers Subsidy Claim

Prepare and encode Debit Memo (DM) upon receipt of the approved letter from
the supplier.
Forward immediately the DM and supports (approved letter from the supplier)
to HO-Accounting Department for offsetting with our payables to the supplier.
Suppliers Subsidy accounts (Open account) still unpaid for 60 days from Debit
Memo date of issuance are subject for reversal which would affect store
profitability
Below are common reasons of denied claims:
Without suppliers confirmation letter attached to the DM. (mostly verbal approval only)
Suppliers Representative confirmation still subject for final approval.

EXPENSE ACCOUNT AND SUBSIDIARIES

INPUT

OUTPUT

Expense Report
Petty Cash Voucher
Cash Advance Voucher
Cash Voucher
Journal Voucher

Expenses

Expense Report
What to check?
If amount tallies with the attached original official receipts and
other documents.
If expenses are official.
If date of liquidation is current or within 60 days from date of
advances.
If advances of staff are monitored monthly.
If booking of expenses are properly charged.

Reconciliation and Reports Deadlines

Reconciliation
What to check?
If reconciliations of accounts are accomplished timely and
accurately by the Store Bookkeeper.
If all reconciliations are reviewed and alayzed by the Store
Manager.
If reconciliation are submitted promptly to HO-Accounting
Department based on the set deadlines.

Reconciliations and Reports

DEADLINES FOR:
Last Encoding of JV
Fixed Assets Count

3rd Day of the month

Every Quarter

Recon:
Accountable Forms
Bank (CTFSI)
Bank (EMCOR)
Receivable
Inventory
Advances
Customers Deposit
Deposit Suspense
Postdated Checks
Losses on Foreclosure
Provision For contingencies
Accounts Payable (CTFS)

3rd Day of the month

8th Day of the month
10th Day of the month
15th Day of the month
15th Day of the month
15th Day of the month
15th Day of the month
15th Day of the month
15th Day of the month
15th Day of the month
15th Day of the month
15th Day of the month

GUIDELINES ON IN-LIEU

GUIDLEINSS

REDEMPTION OF DEP UNITS

POL AND PROCED.

ACCOUNTABLE FORMS
MANAGEMENT/STORE FILING
SYSTEM

Accountable Forms Classifications

A. BIR Forms
Sales Invoice

Official Receipts

B. Non-BIR Forms

Petty Cash Vouchers (PCV)

Cash Advance Vouchers (CAV)
Purchase Orders (PO)
Receiving Reports (RR)
Transfer Invoices (TI)
Delivery Receipts (DR)

Voluntary Deposit Slips (VDS)

Redemption Receipts (RDR)
Foreclosed Goods Receiving Report (FGRR)
Registration Fund Disbursements (RFD)

Service Call Reports (SCR)

Purchase Return Slip

Accountable Forms
What to Check?
If ordering of accountable forms is based on the 2-month minimum
store stock level supply.
If the serial numbers of any accountable forms received ar verified
against confirmation slip.
If the confirmation slip is signed and returned to the HO Accountable
Forms Officer.
If all receipts and issuances of accountable forms are recorded in the
Accountable Forms Register.
If a monthly recon (comparison of AF register Codes F1 to F7 against
actual count) of Accountable Forms is submitted to HO Accounting
every 3rd working day of the month.

Accountable Forms
What to Check?
If all released accountable forms, with or without issuances, are
returned to the cashier every end of the day for safekeeping in the
vault.
If accountable forms are properly kept and stored in the vault.
If accountable forms are issued in numerical and chronological series
using the First-in, First-Out Method (FIFO).
If audit of all used and unused accountable documents in conducted
daily.
If issuance has no alteration. If there is, Check if a confirmation of
account is conducted.

Accountable Forms
What to Check?

If all the copies of cancelled documents are filed intact.

If customer's signature, date and time are reflected in the accounting copy of issued Official
Receipt.
If a memo explaining the reason of the cancellation of Official Receipt is submitted to the
Accounting Manager.
If fully used stubs; referring to OR stubs with four copies, are returned to HO-Accounting
Department every mailing schedule.
If deficiencies; such as stub has missing series/copy, different stubs with same serial numbers,
same serial numbers within the stub, are returned with memo addressed to HO-Accounting
Department.
If damaged or spoilt (e.g. torn, soaked) and obsolete accountable forms are covered with memo
approved by HO-Accounting Department to dispose through shredding.

Accountable Forms
What to check?
If the following procedures are followed in case of any lost series or stub:
Immediately report any lost stub or series to the Store Manager.
Secure notarized Affidavit of Loss as executed by the holder, which includes publication at
least five times in a local newspaper. All the expenses are charged to the holder.
Prepare a memo addressed to Store Manager and Accounting Department, copy furnished
FSO and Audit departments.
Post the list of missing OR series for one year at Cashier's booth.

If accounting documents are accounted and filed daily.

If store files of accounting documents are disposed by shredding
every 3 years.

Audit of Accountable Forms

PROCEDURES
CASHIER
1. Gather all issued accountable forms for the day.
2. Account the series of all issued Official Receipts and Cash Sales Invoices.
3. Log in the issuances and Returns Logbook (detailed). Refer sample format.
4.Print the computerized audit of accountable forms daily. Refer sample
format.
5.Compare and attach to the logbook.
6.Submit logbook and computerized audit of accountable forms daily to the
bookkeeper for review.

BOOKKEEPER
7. Review cashier's logbook and computerized audit of official receipts and cash
sales invoices daily.
8. Audit all issued accountable forms.
9. Report to the Store Manager and Credit Officer any noted irregularity for
appropriate action.
10. Submit twice a month to the HO-Accounting both logbook and computerized
audit of accountable forms.
FINANCED SALES REPRESENTATIVE
11. Forward to the Credit Officer (CO) all field collections for checking and
validation.

After every audit, CO will sign at the back portion of the official receipt as guide for the
next audit.

12. Endorse all the field collections to the cashier.

13. For early trips, there shall be an approved itinerary by the CO before release of
OR stub to the FSR.

sample format 1

sampe format 2

sample format 3

sample format 4

sample format 5

Sample form 6

sf7

f8

emcor

PROJECTED TRADING INCOME

Formula and Computation

Formula and Computation

Constants:
1. Gross Sales
Formula: Gross sales = Net sales x 112% vat

2. Vat Computation
Formula: Vat = (Gross sales / 1.12) Gross sales
or
Vat = Gross sales / 9.3333

3. Cost
Formula: Cost = Net sales x (100% net sales GP rate)

Formula and Computations

4. Net Sales: will be the base or is equivalent to 100%
a. If the data are GP rate and projected expenses at breakeven.
Formula: Net sales = Projected expenses / GP rate (%)

b. If the data provided are GP rate, projected expenses and percent (%) of
projected income against net sales.
Formula: Net sales = Projected expenses / (GP rate - % of projected income against net
sales)

c. If the data provided are GP rate, projected expenses and projected income
in peso value.
Formula: Net sales = (Projected expenses + projected income in peso value) / GP rate
(%)

Formula and Computations

d. If the data provided are Gross sales, GP rate, and projected
expenses.
Formula:
Gross Sales
xxx
Less: Vat (Gross Sales/9.3333)
xxx
Net Sales
xxx
Less: Cost of Sales (100% - GPR)
xxx
Gross Profit
xxx
Less: Expenses
xxx
Projected Income
xxx

SAMPLE 1. How much is the break-even sales?

Expenses

P20,000.00

GP Rate

15%

Estimated Income:
Break-even sales

149,333

Less: Vat

16,000

Net Sales

133,333

Less: Cost of Sales

113,333

Gross Profit

20,000

(15% of Net Sales)

Less: Expenses
Projected net income/loss

20,000
0.00

ANSWER COMPUTATIONS:
1. Net Sales
= Expenses / GP rate
= 20,000 / 15%
= 133,333.
2. Gross Sales
= Net Sales x 112% vat
= 133,333 x 112%
= 149,333.
3. Vat
= (Gross sales / 9.3333
= 149,333 / 9.3333
= 16,000
4. Cost of Sales
= Net Sales x (100% - 15% GP rate)
= 133,333 x 85%
= 113,333

FINANCIAL STATEMENTS
ANALYSIS