Professional Documents
Culture Documents
SOP Sample
SOP Sample
SOP Sample
FINANCE DEPARTMENT
INTRODUCTION
This document outlines the Financial Control Framework within the Pak Pap (Pvt) Ltd. and explains its
business processes being followed by the Pak pap finance department. It will also ensure that internal
controls are in place and financial powers are exercised appropriately, effectively and efficiently.
HUMAN RESOURCE
Company should hire a qualified HR team which can properly maintain the records of the employees and
prepare payroll at the end of every month.
HR department should hire a candidate on merit basis, and explains his job responsibilities along
with his designation and grade in the interview.
HR department should maintain his personal file in which he attaches all his education
documents, resume and his signed offer letter.
Payroll to be prepare according to the employee salary, if employee is on daily wages so salary
should be calculated from his attendance card. Overtime rates should be calculated properly
according to the company’s policy.
Proper calculation of income tax according to the income tax ordinance, Provident Fund,
Gratuity Fund, loans and advances.
Salary sheet should be reviewed by the finance manager and approved by the management.
Proper time in and time out of all employees should be maintained.
ACCOUNTS DEPARTMENT
INTERNAL AUDIT
Company should hire an internal auditor qualified/semi qualified with good experience who can
handle all assignment given by the management.
All payments should be pre-audited by the internal auditor before paying the cheque to the
supplier.
Monthly physical cash count should be conduct by the audit department and reconcile it with
the ledger.
Audit department should conduct quarterly physical stock count in Karachi warehouses and
every half yearly physical stock count of Lahore Warehouses.
Internal auditor should identify the errors of the system and adjust them with the help of
finance department.
Prepares audit reports.
Review of final accounts and monthly reports.
INVENTORY
At the time of import all the expenses incurred should be recorded in the L/C account.
GRN received from the warehouse with the correct weights should be recorded in the
Purchases.
Below shows the sample of recording purchase entry.
B. STOCK TRANSFER
Stock should be transferred under the supervision of warehouse in charge.
Stock should be transferred on the document named “STOCK TRANSFER NOTE (STN)”
STN should be signed by both the warehouse in charge at the time of sending and receiving.
There will be four copies of STOCK TRANSFER NOTE (STN). (ANNEXURE-B)
1. Blue copy – Original GRN – Sending Warehouse.
Stock transfer entries should be recorded by the Stock Transfer Note (STN).
Stock transfer entries should be recorded by one executive i.e. ‘Mr. Naveed’.
Before recording the entry in “Busy Win” executive should properly reconcile the stock transfer
report with the Stock Transfer Note (STN) whether complete information is provided or not.
Any discrepancy in the reports should be highlighted and send it to the concerned warehouse
immediately by copying Mr. Irfan Ahmed.
Below shown is the sample of stock transfer entry.
From: New Challi To: Sheeting godown
Item Quantity Unit Price Amount
23/52 2,039.000 Kgs 46.91 95,649.49
2,039.000 95,649.49
View the impact of stock in and stock out in both the accounts.
Once entries are recorded in the system it should signed by 3 persons.
a) In Prepared By column, Mr.Naveed.
b) In Approved By column, Mr. Salim.
c) In Audited By column, Present Auditor.
File the vouchers with the stock transfer reports on daily basis.
C. PRODUCTION
There are five types of production.
1. Aara.
2. Rewinder.
3. Conversion.
4. PSH.
5. Ream Production.
Client has 2 production floors Jahangir and New Challi.
But Aara and Rewinder produce in Jahangir only.
Delivery challan should be signed by the warehouse manager and the customer.
Warehouse manager should prepare cutting report and sales report at the end of the day and
email to the sales department and accounts department.
Cutting report should be clearly showing the production process which includes by products
also.
ITEMS GENERATED
ITEMS CONSUMED
D. SALES/DISPATCH
Sales executive should prepare sales order at the time of sale which clearly mentions all the
specifications of the item.
Sales order should be signed by the executive and approved by the high authority.
Copy of sales order should be given to the customer and one copy should be properly filed.
Sales executive should e-mail the soft copy with the reference number mention on the sales
order should be send to the ware house in charge where he will verify the reference number
with the copy of customer and give him the correct material.
At the time of delivery, warehouse in charge will prepare the delivery challan and it will be
signed by the customer before leaving the warehouse.
A gate pass should be prepared for taking out materials. These should be signed only by the
Warehouse In charges.
There are three copies of Gate Pass.
1. Blue copy – Original Gate pass – Warehouse.
2. Pink copy – Accounts Department.
3. White copy – sales Department.
4. Green copy – Internal Audit Department.
At the day end warehouse in charge will e-mail sales report to the sales department and
accounts department.
Accounts department reconcile the sales with the sales order and sales report than record sales
in the system on daily basis.
Before recording the entry, executive should confirm that particular item is not going negative,
reconcile it and record the entry properly.
Sales entries should be recorded by one executive i.e. ‘Mr. Naveed’.
ENTRY TYPE RV
ENTRY CONTRA
SALES ENTRY
ANNEXURE A.
GRN format is attached below:
GOODS RECEIVED NOTE
Remarks _________________________________________________
(If Any)
_________________________________________________
______________ ____________
PREPARED BY APPROVED BY
ANNEXURE B.
STN format is attached below:
STOCK TRANSFER NOTE
Remarks _________________________________________________
(If Any)
_________________________________________________
ANNEXURE C.
CALCULATION OF KILO GRAMS OF REAMS:
Working :
Item
Size= 20x28x52
Quantity
= 251.74 Reams
20x28x52
29,120
29,120/3,100 (3,100 is of formula)
9.39354839 per kilograms
Quantity 251.74 Reams
2,365 Kilograms
2,365 kg is the weight of 251.740 Reams.
CALCULATION OF RATE:
Working :
Item Size= 20x28x52
Purchase
Price= 58
20x28x52
29,120
(3,100 is of
29,120/3,100 formula)
9.39354839 per kilograms
Purchase Price 58 Reams
545
545 is the cost incurred on producing the product.
ANNEXURE D.
Gate Pass format is attached below:
GATE PASS
Remarks _________________________________________________
(If Any)
_________________________________________________