Chapter-2

DDO’s Role: Bank Operations &BRS

 DDO's ROLE : BANKING OPERATIONS & RECONCILIATIONS

As per instructions issued by BSNL HQ, the bank accounts to be maintained by various units are
as given below:

AO(Cash) :- This is called the Sub Accounting Unit (SAU). This unit will maintain two types of
bank Accounts one for operational purpose i.e to defray the day to day on-going expenses and
the other for the Collection of revenue.

Circle Head Quarters: The Circle Head quarter will also have two bank accounts. The first
account shall be operated by the nominated fiancé wing officers of the circle office for the
purpose of payments and also to effect transfers to various units for their operational needs. The
second account shall be for revenue where in all collections of revenue of circle office will be
deposited.

In BSNL HEAD QUARTERS:

There will be one corporate office bank account at the Head quarters.

In effect, the bank books to be maintained by each AO(Cash) are

1. Operational bank book.

2. Operational Cash book.
3. Collection bank book.
4. Collection Cash book.

In respect of the bank accounts and the bank books referred to above at serials 1 and 3 above, the
bank reconciliation work should be conducted regularly at the end of every month, and bank
reconciliation statements submitted to Circle office. The procedure for conducting the bank
reconciliation work is outlined in 2.12 of BSNL accounting instructions. The same is reproduced
hereunder again.

(a) All cheques received by the collecting centre may be entered individually in a register on
day-to-day basis showing the cheque no. date, amount name of the bank on which drawn,
particulars of the bill against which payment is received, name of the person from whom
received etc. as per proforma enclosed.
(b) On receipt of the bank statement, the date on which the amount of the cheque has been
credited into our bank account should be entered in that register in the relevant column.
 (c) Particulars of the cheques the amount of which has not been credited in our account till
the close of the month, may form as cheques deposited but not credited by the bank in
the bank reconciliation statement. Further clearance of these cheques may be watched
through the register.
(d) Similarly the particulars of all cheques issued but not presented for payment may be
drawn up at the end of the month by verifying the Bank Reconciliation Statement with
bank Book and a record may be maintained as per prescribed format.
(e) Separate registers are to be maintained in respect of each bank book.
(f) At the end of the every month a Bank Reconciliation Statement in respect of each bank
account may be prepared in the following proforma.

A. Balance as per BSNL Bank Book:

B. Add
(i) Cheques issued but not presented (list enclosed)
(ii) Bank interest not interest in Bank Book but credited by the Bank.
(iii) Other credits included in Bank Statement but not included in bank Book (List
enclosed)
C. Total .

D. Less
(i) Cheques deposited in bank but not credited by bank as per register.
(ii) Bank charges not entered in a bank book.
(iii) Chequesdishonoured but not yet written back in Bank Book (list enclosed)

E. Net Balance.

It is only through the Bank Reconciliation statement, the correctness of the entries in the
bank book, accounting of all the transactions and the balances can be confirmed. A review of the
statement provides us information about

i) Responsiveness of the banks.

ii) The delay in clearance of cheques issued/deposited

and this would suggest the corrective action to be taken to reconcile the balances either by
BSNL or by the bank. Action is required to be taken immediately on all the items of differences
between bank book balance and bank balance as any delay may lead to non -availability of
records and perhaps lead to frauds.
The balances in each bank book should be reconciled with the balances in the bank by preparing
a bank reconciliation statement for each bank along with trial balance and the same should be
submitted to Circle Head Quarters along with the Trial Balance to enable scrutiny, financial
control and accounting at their end. The compilation of monthly accounts can be considered to
be completed only after this important statement is prepared by the primary accounting unit and
reviewed by the IFA of the PAU/Circle.

The following are some of the deficiencies observed in preparation of Bank Reconciliation
statement.

a) The importance that it deserves has not been given for preparation and review of BRS.
b) The work is in arrears in some units.
c) Collections have not been passed through Collection Bank Book.
d) TTs sent by Bank/ Bank Charges debited by Bank have not been accounted for.
e) Time barred cheques have not been written back after observing the prescribed
procedure.
f) Cases of cheques deposited but not cleared/ excess credit – excess debit given by bank
have not been pursued.
g) Entries (double cancellation) have not been passed in respect of cheques issued but
cancelled subsequently
h) Entries (write back) have not been passed in respect of chequesdishonoured.
i) Cheques were deposited wrongly into operation accounts by units.
j) Banks have passed wrong credits of collections into operation account.
k) Cheques have been accounted for excess/short amount in the bank book vis-avis payable
actually with reference to the voucher.
l) TTs sent by Circle IFA and credited by bank not taken into OBB.
m) No follow up action was taken after review by the IFA of the PAU and further review by
the Circle Office.

Many of the short comings pointed above can be avoided, if action is taken

(1) To obtain the bank statement from the bank regularly.

(2) To incorporate the banking transactions in the accounts of the same month.
(3) To pursue Clearance of pending items regularly and promptly.
In such a case, the differences between the bank balances and balances in the collection Bank
Book and operational bank book of BSNL would have been confined to ‘ Cheques issued but not
cleared under 3 months’ in respect of collection accounts and ‘Cheques issued but not presented
for payment under 3 months’ in respect of operational accounts.

With a view to have information about the correct status of bank reconciliation work at each of
the Primary Accounting Unit – bank wise, it has been decided by BSNL HQ that a monthly
status report both for collection and operation accounts is submitted to them by the Circle IFA.

Review of Bank reconciliation for the month of --------- 201 in respect of ---------

OPERATION ACCOUNT

S.NO Name Total Add Add- Total of Deduct Deduct Balanc

of the balance cheques others columns Bank others e as
SSA as per issued, (specify) 3+4+5 Charges per all
/PAU all but not not bank
Bank encashed included statem
books $ in ents
OBBs Col 6 –
(7+8)
1 2 3 4 5 6 7 8 9

Total * **

*This has to agree with the Trial Balance figures.

* * A photocopy of the last page of the bank Statement may be obtained from the
SSAs along with the Bank Reconciliation Statement and the total agreed with this
figure.
$Cheques issued, but not en-cashed for more than 3 months- reasons should be
ascertained and taken up with the bank for cancellation/ write-off.

Review of Bank reconciliation for the month of --------- 201 in respect of ---------
 Collection Account
S.NO Name Total Add Add- Total of Deduct Deduct Balance
of the balance bank others columns Cheques others as per all
SSA as per charges 3+4+5 deposited, bank
/PAU all not but not statemen
Bank included cleared ts Col 6
books in CBBs by bank –(7+8)
Bank $
1 2 3 4 5 6 7 8 9

Total * **

IFA of the Circle

*This has to agree with the Trial Balance figures.
* * A photocopy of the last page of the bank Statement may be obtained from the
SSAs along with the Bank Reconciliation Statement and the total agreed with this
figure.
$ Cheques deposited and outstanding for more than 3 months- reasons should be
ascertained and taken up with the bank for cancellation/ write-off.
 BHARAT SANCHAR NIGAMLIMITED
(A Govt. of IndiaEnterprise)
CORPORATE OFFICE (Banking
FinanceDivision)
Floor, Bharat Sanchar Bhavan, Harish Chandra
MathurLaneJanpath,NewDelhi-l10001

1-4/BFCI/BA/ProjectAlcOpening/2011-12 dated11.02.2015

To
lFAs of All Telecom Circle

SUBJECT: GUIDELINES FOR CONSOLIDATION OF BANK ACCOUNTS ON MIGRATION TO ERP IN

THECIRCLE.

This has reference to the guidelines on above cited subject

issuedregardingconsolidation of Bank Accounts on migration to ERP in the circle dated
23.10.2013(copyenclosed). BSNL Corporate Office is in receipts of clarifications sought from
circle onalreadyopened External project accounts and still requests are coming for opening
ofexternalprojectsaccount.

In this regard, it is stated that, since BSNL Management has decided to consolidate banking
operation of SSAs/DDOs through a single operation account at Circle, upon migration to
ERP, therefore, necessary instructions were issued by this office. It is once again reiterated
that GUIDELINES FOR CONSOLIDATION OF BANK ACCOUNTS ON MIGRATION TO ERP IN THE
CIRCLE dated 23.10.2013 shall be strictly followed by all circles migrating to ERP
and any deviation from the same shall be the sole responsibility of circle IFA
concerned.

These instructions may be circulated to all SSAs/DDOs of allCircles.

CirclesalreadymigratedtoERParerequestedtosendareposinthisregardandalsoSSA-
wiseba details, as early aspossible.

SanjayKapoor
DGM(BFCI-II)

Copy for informationto:

1. Sr. PPS to CMD, BSNL, NewDelhi.

2, PPS to Director (Finance), BSNL, NewDelhi.
3. E.D. (Finance), BSNL CO, NewDelhi.
4. Sr. GM (CIT), BSNL CO, NewDelhi.
5. GM (CA)/GM (FC)/GM (ERP), BSNL CO, NewDelhi.
6. AllChiefGeneralManagerTelecomCircle.....
E1-E2 Core Rev. Date: 31-03-2021

BHARA7SANCHARN1GAULIMITED

No. 1-/BBF-CM,S/T/\/1/200$ dated23/1)/2013 °.

To

IFAs of All Telecom Circle

SUBJECT: GUIDELINES FOR CONSOLIDATION OF BANK ACCOUNTS ON

MIGRATION TO ERP INTHE CIRCLE.

BSNL Management has decided to consolidate banking operation of

SSAs/DDOs through asingleoperationaccount atCircle,uponmigrationtoERP.

On migration to ERP Platform, the following changes are to be effected

for consolidation ofbankaccounts'

a) From the date of migration to ERP, only ONE Operation Account in each Circle
will serviceallorganisational entities in the Circle, including support organisations
i.e. Civil, Electrical, Architectureetc.Hence, from the date of cut-over fixed for
migration to ERP, Circle IFA must ensure that no chequesareissued by
SSAs/DDOs. Circle IFA should issue instructions to all SSAs/DDOs in the Circle to
sendthedetailsofallunusedcheques,bank-
wise,toCircleIFAasonthedaybeforeswitchovertoERPsystem.All SSAs/DDOs must
handover all unused cheques to the Circle IFA within three days from the
dateofmigrationtoERPandobtainacertificatefromCircleIFAtothiseXect.

b) As all open invoices are required to migrate on ERP as on date of cut over, each
SSA/DDO will prepareastatement of cheques issued but not presented for
payment on the cut-off date of ERP. SSA/DDOmustkeep the balance amount
equal to the total amount of cheques issued but not presented forpaymentin the
Operation Account. Balance amount, if any, available in the Operation Account
after
keepingtheamountequaltothechequesissuedbutnotpresentedforpaymentmustbe
transferredthroughCollectionAccountoftheSSAtoCircleIFACollectionAccountalong
withothercollectionswithinthreedays from the cut-over date. Each SSA/DDO will
intimate details of amount transferred to CircleIFACollection Account. Circle IFA
will transfer the amount remitted by all the SSAs/DDOs to
BSNLHQCollectionAccount,alongwiththestatementonthisaccount,withinaweekof
cut-over.

c) Concerned IFA will monitor that each SSA/DDO will continue to maintain Operation

©BSNL, India For Internal Circulation Only 8

E1-E2 Core Rev. Date: 31-03-2021

Accounts only upto three months from the date of switch over to ERP or till the
validity period of last cheque issued, whichever is earlier. All Operation Account of
SSAs/DDOs in the Circle must be closed thereafterand
intimationmustbegiventotheCircleIFAconcernedwhowill,inturn,intimateSr.GM(BFCI)a
bouttheclosure of Operation Accounts SSA-wise.

d) FromthedateofswitchovertoERP,allpaymentswillbemadethroughtheexistingCircle
IFAOperationAccount. Circle IFA should not transfer any funds to Operation
accounts of any SSA/DDO underanycircumstances.

©BSNL, India For Internal Circulation Only 9

E1-E2 Core Rev. Date: 31-03-2021

Questions on Bank Operations and BRS

1. What are the two types of Accounts maintained at SSA level and Circle Level?
2. How many levels the BRS has to be prepared?
3. What is bank reconciliation statement?
4. What is the frequency of the bank reconciliation statement?
5. Why the balances in the SSA bank/Cash book and balances as per Bank
statement differ? Give 5 examples for such instances?
6. What is the follow up action taken to settle the differences?
7. What is the unlinked credit represents in the bank reconciliation statement?
8. What is the unlinked debit represents in the bank reconciliation statement?
9. What are the documents utilized for the reconciliation of the balances in BSNL
and Bank?
10. What is the time limit for local cheque and outstation cheque for clearance?

©BSNL, India For Internal Circulation Only 10

 BRS PROCESS IN SAP

BANK ACCOUNT TYPES BSNL

OPERATION ACCOUNT
COLLECTION ACCOUNT
• OPERATION ACCOUNT

• PERIODICALLY FUNDS
RECEIVED FROM CIRCLE/
CORPORATE OFFICE TO ALL
UNITS OF BSNL

• UNITS MAKING ALL

PAYMENTS THROUGH THIS
ACCOUNT
• NATURE OF TRANSACTIONS
• PEIODICALLY FUNDS
RECEIVED FROM CORPORATE
OFFICE(INCOMING)

• ALL PAYMENTS(OUT GOING)

• AUTO SWIPE INTEREST

CREDITED BY BANK(INCOMING)
• COLLECTION ACCOUNT
• ALL TYPES OF COLLECTIONS OF
SSAs/BAs DEPOSITED IN THIS
ACCOUNT(INCOMING
PAYMENTS)

• PERIODICALLY AMOUNTS
REMITTED TO CIRCLE/
CORPORATE OFFICE BANK
ACCOUNT (OUT GOING
PAYMENTS)

• T CODES USED FOR JOURNAL ENTRIES IN

COLLECTION ACCOUNT

• FBCJ FOR INCOMING PAYMENTS

• FB 50 FOR REMITTENCE TO CORPORATE
OFFICE
 • BANK GLs FOR COLLECTION ACCOUNT
Main Account - 2510201780
Incoming Account - 2510201781
Outgoing Account - 2510201782
Unidentified Account - 2510201783

• T CODES FOR BRS PROCESS

• ZFI 057 FOR FORMAT UPLOAD
• SM35 FOR BATCH INPUT MONITORING
• ZBANK_BRS for downloading the BR statement

• PROCEDURE
• PASS JOURNAL ENTRIES FOR ALL
INCOMING PAYMENTS BY FBCJ
• PASS JOURNAL ENTRIES FOR ALL
OUTGOING PAYMENTS BY FB50

• FORMAT PREPARATION IN EXCEL SHEET

ASSINING ZBOP,ZBIP,ZBIN TO VARIOUS
ENTRIES IN BANK STT.
• FORMAT UPLOAD BY USING T CODE ZFI
057
• BATCH INPUT MONITORING BY USING
TCODE SM35
• BANK GL CLEARING BY USING TCODE F-03
• BANK GL CLEARING
• PAIRING OF DOCUMENTS FOR EACH FBCJ
WE NEED TO PAIR WITH ZBIP IN THE
UPLOADED FORMAT
• PAIRING OF DOCUMENTS FOR EACH FB50
WE NEED TO PAIR WITH ZBOP IN THE
UPLOADED FORMAT
• THIS PROCESS DONE BY USING THE TCODE
F-03