Process regulations

Confidential. For internal usage only.

RCV & E-Charge Invoicing

ADOPTED

Order # ______________ of _________________

RCV & E-Charge Invoicing

PR-SSTL/CAG-006

Process owner:
Corporate Accounts Group
(CAG)

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 Process regulations
Confidential. For internal usage only.
RCV & E-Charge Invoicing

Document Control

Process No: PR/SSTL/CAG /006

Process Name: RCV Invoicing Process

Sanjay Banka
VP Accounting & Taxation

Recommended By

Sergey Savchenko

CFO

Approved By

Revision History

Date Revision By Page No. / Brief Description Approved By

Clause No. (Name & Sign)

Note:
For document control, Please write your name on the front cover on the hard copy / print out.

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 Process regulations
Confidential. For internal usage only.
RCV & E-Charge Invoicing

Table of Contents

S. No Process Contents Page No

1.0 SCOPE 4
2.0 OBJECTIVE 4
3.0 BUSINESS RULES 4
4.0 RESPONSIBILITY MATRIX 4
5.0 PROCESS 5-6
6.0 INTERNAL CONTROLS 7
7.0 TAX IMPACT 7
8.0 STOCK RECONCILIATION & VERIFICATION 7
9.0 AUDIT 7
10.0 MIS REPORTING 7
11.0 PROCESS KPI 7-8
12.0 KEY DEPENDENCIES 8
13.0 ACCOUNTING 8

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 Process regulations
Confidential. For internal usage only.
RCV & E-Charge Invoicing

1. SCOPE:

This document lays down the end to end process for RCV (Recharge Vouchers) & E-charge ( ECV) Invoicing
to Distributors and its accounting .

2. OBJECTIVE:

To establish well defined, effective and efficient control over RCV invoicing process, Accounting for
primary sales and collection from channel partners and process related thereto.

3. BUSINESS RULES:

These are only operational guidelines/process and do not override any existing or future Policy or
Finance DOA. In case of any difference, the approved policy will prevail.
RCV & E-Charge sale to be made only upon realization of DD/RTGS.
No collection shall be made by Credit Card.
RCV Activation only after Distributor acknowledgement.

4. RESPONSIBILITY MATRIX:

Following is the understanding of Corporate Accounts Group (CAG) on process owners for various steps.
This process document specifies the process listed under step no 8,10,13

S.No Activity Responsibility Remarks

1 Raising of purchase requisition (PR) for Corporate Marketing
Procurement of RCV & Approval
2 Generation of PINs Corporate /Circle IT
3 Encryption of PINs in text file Corporate /Circle IT
4 Raising of Purchase Order Corporate
Procurement
5 Sending the PIN generation file to Corporate RA
vendor and Informing the Vendor of
Password
6 Receipt of RCV from Vendor & updating Circle Procurement
in Telecompass Inventory Module
7 Validation of Sales Order received from Circle Sales
Distributor and Collection (DD/RTGS)
from Distributor
8 Approval of Sales order in Circle Accounts
Telecompass, Generation of Invoice,
Collection & Banking
9 Dispatch of RCV to Distributor Circle Procurement
10 Accounting for receipt of Collection, CAG
Primary Sales and Service Tax
Liability
11 RCV Activation Circle IT
12 Audit of Revenue leakages Circle RA
13 Physical Verification of RCV stock Circle Accounts
14 Custom Support on RCV activation etc CSD
issues

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 Process regulations
Confidential. For internal usage only.
RCV & E-Charge Invoicing

5. PROCESS STEPS:

EXECUTION OF THE PROCESS

5.1 Key Steps

1. Timely raising PR by 2. Purchase order given 3. Receipt of order by 4. Approval of 5. Accounting of
Sales to Vendor by Sales from Distributor Sales Order by Accounts, Primary Sales by CAG
1A. Generation of PINs Procurement 3A. Validation of Sales OrderGeneration
of of Invoice 5A. Reconciliation of
by IT 2A. Password to be givenof Distributor in Telecompass4A. Dispatch of RCV to records to avoid
to Vendor by RA by Sales Distributor by Procurement discrepancies in
physical stocks vis--vis
stock records

5.2 Process Notes:

5.2.1 RCV Invoicing

Sr. No Activity Responsibility Timeline

1 Sales to give a requisition (PR)for procurement of RCV to Corporate Sales

IT & Procurement. The Indent should be approved by Sales
head.

2 Upon receiving the approved PR, the details of RCVs are Corporate IT Same Day
entered in Voucher management application of IN and
PINs are generated.

After the text files are password protected, the files are
mailed to authorized person in Corporate RA Department.

3 Procurement to place order for RCV Printing (Refer Corporate 4 days

Procurement Process) Procurement

4 The vendor then contacts the concerned RA person on Revenue Same day
phone to get the password of the files. Only upon proper Assurance
authorization of vendor, RA informs the password for the
files. (Authorized vendor should be informed by
Procurement)
5 Procurement team receives the printed RCVs and after Circle 4 days
matching the quantity with the PO the stock is updated in Procurement
RCV module of Telecompass through MRN/IRN (issue
receipt note)
6 The Distributor / Sales shall enter Sales Order forms (SOF) Distributor /
on Tele Compass stating their Order for RCV/ ECV , Circle Sales Same Day
ensuring all critical fields are filled.

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 Process regulations
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RCV & E-Charge Invoicing

The sales team to handover DD / Cheque / RTGS advise

received from Distributor to Circle Accounts.

7 In case of RTGS based payments, sub accounts of Corporate

distributors will be opened in ICICI Bank collection Treasury
account of circle. In SOF the UTR (RTGS tracking number)
number to be mentioned by the distributor for tracking of
payments.
The order is then forwarded through TeleCompass to the
Circle Finance Team.
8 The Accounts team sends DD/Cheque/RTGS to Bank. On Circle Accounts 1-2 Days
collection confirmation from Bank ,Accounts Team
validates the order and generates the Sales Invoice
through TeleCompass.
9 The Circle Procurement team Dispatches the RCV to the Circle Same day
distributor based upon approved invoice. Procurement

( alternately in case of ECV , pl refer to next table below)

10 Circle Accounts to maintain updated Files on daily basis in Circle Accounts Daily
IRIS, archieve the same for future reference and perform
following:
1. Account for Primary Sales of RCV on - daily
2. Reconcile Warehouse Stock and Book Stock -
Weekly
3. Account for Collections received - Daily
4. Service Tax Reconciliation Monthly
5. Physical Verification - Monthly

5.2.2 E -Charge Invoicing

Sr. No Activity Responsibility Timeline

9 Upon approval by Accounts , E-Charge is transferred to Circle IT Same Day

Distributors mobile number.
10 Corporate Accounts to maintain updated Files on daily Circle Accounts Daily
basis in IRIS, archieve the same for future reference and
perform following:
1. Account for Primary Sales of E-Charge on daily
basis
2. Account for Collections received
3. Service Tax Reconciliation

6. INTERNAL CONTROLS:

Purchase requisition for Procurement of RCV to be approved .

PIN File forwarded to printing vendor to be password protected.
Sales to validate the sales order and confirm collection from Distributor.
Physical verification & reconciliation of Book Stock & physical Stock by Circle Accounts.
Activation of RCV after confirmation of receipt by Distributor.

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 Process regulations
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RCV & E-Charge Invoicing

RCV delivery only after collection of payment

Invoice to be generated only after valid payment instruments.

7. TAX IMPACT:

TDS: No TDS is applicable on sale of RCV & E-Charge

VAT: No VAT is applicable on sale of RCV & E-Charge
Service Tax: Service Tax to be paid on Monthly basis upon collection against primary sales.

8. STOCK RECONCILIATION / VERIFICATION:

Weekly reconciliation of Stock as per Books and as per Warehouse will be done by the Circle
Procurement.

No Billing will be done on 1st day of every month.

9. AUDIT:

On random basis, Physical verification will be done by Accounts / Auditors at monthly intervals..

10. MIS & REPORTING:

Following reports are needed by Accounts & Finance for Accounting, Invoicing, Audit and Controls.

S.No MIS/ Report Responsibility Frequency Annexure

1 Daily Stock Report Procurement Daily 1
2 Daily invoice Generated Circle Accounts Daily 2
3 Payments received for RCV Sales Daily 3
4 Physical Verification Report Circle Accounts Monthly 4
5 Reconciliation of Stock Circle Procurement Weekly 5

11. KEY DEPENDENCIES:

The Execution of RCV Invoicing Process by CAG would depend upon following system dependencies:
Automation of Sales Order and Invoice generation Process in Telecompass
Timely availability of MIS & Reports from Procurement Department & Telecompass
In case of E Charge, automatic transfer of ECV from TC to Distributor Mobile Number

12. ACCOUNTING:

Circle Accounts team to send MIS for Primary sales to Channel partners on daily basis to CAG. Basis MIS
report the Accounting for Channel Commission will be done centrally by CAG on weekly basis.

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 Process regulations
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RCV & E-Charge Invoicing

11. EXHIBIT 1. PROCESS KPI

Amendments to the exhibit can be approved and adopted separately from the process regulations.

Approval list of Exhibit 1. Process KPIs

Designation

Approved Chief Financial Officer

Corporate Procurement Head, Corporate Marketing Head, Corporate IT Head, Corporate Legal
Agreed Head, Corporate Sales Head.

Signatures

Process owner controls:

Process execution
Process outcomes
Customer satisfaction

Throughout following KPIs:

Table of Exhibit 1. Process KPIs

Current
No KPI unit Calculation formula KPO*
value
Process execution measuring KPIs
Nil Invoice
1 Accurate & Timely Invoicing INR Exception report by Circle Accounts NA
reversals
Process outcomes measuring KPIs
2
3
Customer satisfaction with process outcomes measuring KPIs
4

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 Process regulations
Confidential. For internal usage only.
RCV & E-Charge Invoicing

NOTES

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