INTERNATIONAL INDUSTRIES LIMITED

Work Instruction for Receivable Payment process

Title

IIL-W-03-09 0 1 of 6
Accounts
Document No. Version Copy # Date of Version Page Department Issuing

A) Responsibilities
1. HOD Treasury
2. HOD IT
3. Revenue Accounts (North & South)

B) Definitions:
Nil

C) Work Instructions:
1. Procedure for Domestic Payments
1.1 Payment in following instrument receive in the office in “original”
a. Bank deposited pay in slip
b. ATM / funds transfer of account slip
c. Bank advice
d. Crossed cheque
e. Demand draft
f. Pay order
g. Traveler Cheque
1.2 Cash handling is strictly prohibited and IIL do not receive hard cash from
customers instead banking instruments are accepted
1.3 Payment collect in following categories:
a. Company Cheque (printed name of the company on cheque)
b. Cash deposited bank slip
c. Transfer of account bank slip
d. Demand draft, Pay order & Traveler Cheque
e. Third party Cheque or third party deposited slip
f. Self / Cash cheques (IIL discourage acceptance of self / cash cheque
but reluctantly accept in unavoidable circumstances)
1.4 The following channels for payment collection
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Work Instruction for Receivable Payment process
Title

IIL-W-03-09 0 2 of 6
Accounts
Document No. Version Copy # Date of Version Page Department Issuing

a. Directly from customer in person

b. Sales staff collect the payment during their daily visit/tour of the market
c. Through courier
1.5 It is ensured that payment should be attained with one of the following:
a. Dealer parent stamp or child account stamp on front/backside of
banking instrument
b. Child account name and number in which payment to be adjusted
c. For registered accounts banking instrument showing the payer stamp
or name
d. Payment covering note on proper letter head
e. For walk in / one time customers advance payment customer. If it is
registered person account stamp or letter head for payment covering
note is acquired. However HOD S&M/ GM (N) / HOD PE may allow
acceptance of payment for one transaction if customer do not have
stamp or letter head for unregistered customers.
f. In exceptional circumstances and case to case basis if payment is not
stamped or covering note is not provided then HOD S&M may allow to
accept payment beyond normal circumstances.
1.6 In South, payment (banking instrument) shall hand over to IIL treasury
department via sales department with an entry in the register for credit
confirmation from banks.
1.7 IIL Treasury shall hand over the payment to South revenue accounts after
credit date confirmation.
1.8 In North, sales department shall hand over payment (banking instrument)
to revenue accounts department with an entry in the register.
1.9 North revenue accounts segregate the payment for depositing banking
instruments in the designated banks and ask IIL treasury for all payment
confirmation by emailing of daily deposit.

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INTERNATIONAL INDUSTRIES LIMITED
Work Instruction for Receivable Payment process
Title

IIL-W-03-09 0 3 of 6
Accounts
Document No. Version Copy # Date of Version Page Department Issuing

1.10 IIL treasury shall confirm credit date to North revenue accounts by email
and mark the entry on bank statement so that duplication can be avoided.
1.11 North revenue accounts also receives few bank statements directly from
bank with cc to IIL treasury for which revenue accounts do not ask
treasury confirmation and mark credit date by self.
1.12 Revenue accounts (north & south) will sort the payment maturity date
wise for the day for a customer and update the same in ERP by adjusting
invoices on FIFO basis.
1.13 In certain circumstances invoice wise payment is adjusted instead of
FIFO if old overdue invoice has some dispute to resolve.
1.14 ERP receipt date shall be the current date in which payment is being
updated but maturity date shall be entered as per bank credit date in
which IIL receive the funds for performance bonus workings and bank
reconciliation.
1.15 During entry in ERP revenue accountant shall select one of the following
mode of payment options for analyze the payment pattern of the
customer.
a. Cash – (for all cash deposits)
b. Export – (for export customers)
c. Others – (3rd party cheque and instrument)
d. Self – (customer own cheque directly adjust in the same title of
account)
1.16 After entry in ERP “receipt issued” stamp applied by revenue accountant.
1.17 All receipts generated shall be checked by other revenue accountant with
cash receipt day book.
1.18 Revenue accounts shall send receipt day book to all concerned head of
sales
1.19 Revenue accounts shall send “customer copy” of ERP generated receipt
directly to parent account
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Work Instruction for Receivable Payment process
Title

IIL-W-03-09 0 4 of 6
Accounts
Document No. Version Copy # Date of Version Page Department Issuing

1.20 Revenue accounts shall send “accounts copy” along with banking
instrument to IIL treasury department for bank reconciliation. IIL treasury
department shall be custodian of accounts copy of receipt and supporting
documents.

2. Procedure for reversal of ERP generated receipt

2.1 In exceptional circumstances where reversal of receipt is required
because of wrong user entry, typo error or wrong intimation of credit,
receipt shall only be reversed after taking back original customer copy of
receipt which to be physically cancelled.

2.2 Reason for reversal shall be updated in ERP.

3. Procedure for returned / dishonored cheques

3.1 Cheque dishonored in clearing shall be communicating to respective
sales department through email cc to head of sales.

3.2 In exceptional circumstances where customer ask to return the

dishonored cheque for further follow up with his customer. No cheque will
be returned back to customer if equal amount payment duly credited in IIL
account has not been received by revenue accounts department.

3.3 Dishonored cheque information will be updating in ERP by preparing

receipt and then cancel the same with reason for dishonored cheque
which will be helpful to analyze customer credit rating.

4. Procedure for duplicate banking instruments

4.1 In certain circumstances where customer has lost original banking
instrument.

4.2 Duplicate banking instrument with an original bank stamp shall be

provided to revenue accounts. If the same is not provided, approval of
HOD M&S/ GM (N) / HoD PE shall be required to process the receipt.

4.3 Customer shall also provide an undertaking on letter head that original
slip has been lost and they will take full responsibility if original found in
future will be provided to IIL
4.4 Revenue account department ask IIL treasury department to check credit
confirmation and bank statement if the entry has not been marked
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 INTERNATIONAL INDUSTRIES LIMITED
Work Instruction for Receivable Payment process
Title

IIL-W-03-09 0 5 of 6
Accounts
Document No. Version Copy # Date of Version Page Department Issuing

previously. Further, SM (revenue accounts) will liaise with HOD IT to

configure a check in ERP to restrict duplicate cheques/ instrument
number in the system.

4.5 After treasury confirmation revenue account will check ERP if payment
has not been previously received / adjusted and if it is not received, the
revenue accounts shall prepare ERP generated receipt.

5. Procedure for un-identified payments

5.1 IIL treasury reconcile the bank with payment enter in the ERP and if found
any un-identified payment the same shall be communicating to CFO / FC.
The details of unidentified payments shall not be shared with Revenue
accounts/ sales team.

6. Procedure for export (international) payments

6.1 IIL treasury shall provide the banking advice along with customer name,
custom invoice numbers (if payment is not advance) to revenue accounts
department with an entry to register.

6.2 In case of advance payment against PFI, Export Sales shall provide
Order No. for future adjustments.

6.3 Revenue accounts acknowledge the payment on register and generate

ERP receipt by knocking off the invoices or advance entry.

6.4 Revenue account shall print the generated receipt and attach bank advice
to accounts copy and hand over the same to IIL treasury for bank
reconciliation.

6.5 Where the bank charges are to be recovered from the Customers,
Revenue accounts will make receipt with full amount and a separate DN
will be generated to recover the same.

7. Cleansing of long outstanding small balances:

7.1 On monthly basis, revenue accounts will generate a list of balances below
Rs 1000 which are aged over 30 days.
7.2 The same balances will be adjusted on monthly basis after obtaining
approval from FC/ HOD M&S, CFO and CEO.

8. Application of Receipts against Invoices:

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 INTERNATIONAL INDUSTRIES LIMITED
Work Instruction for Receivable Payment process
Title

IIL-W-03-09 0 6 of 6
Accounts
Document No. Version Copy # Date of Version Page Department Issuing

8.1 For domestic sales, all receipts shall be applied on FIFO basis meaning
thereby old invoices will be first adjusted. However, in case of local LCs,
receipts shall be applied on invoice to invoice basis.

8.1 For exports sales, all receipts shall be applied on invoice to invoice basis
except for Afghanistan for which FIFO shall be followed

D) Related Documents & Records:

Related documents and records to be kept by related departments.

Prepared by: Date:

Revenue Accounts

Verified By: ______________

Senior Sales Managers (North, South), GMS (North), HOD PE Division

_ Date:_________
HoD IT, HoD Treasury, Finance Controller, CFO, HoD M&S

Approved By: _______________________________ Date: ______________

Chief Executive Officer

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