Provisions &

Service Entry
Sheet
- Sep 24, 2015
Overview of session

1. Provision - Key Concepts

2. Estimation

3. Hiccups

4. Service Entry Sheet

5. Hiccups

6. Questions

2
Liabilities and
provisions
Following terms are defined in AS by ICAI as notified by NACAS.

Liability = present obligation of the entity arising from past events, the
settlement of which is expected to result in an outflow from the entity of
resources embodying economic benefits or service potential.

Provision = a liability measured by substantial degree of estimation.

There must be a clear measurable present obligation from a past

obligating event.

3
Value Estimation

Below methods may be used for monthly estimation.

Milestone/Event based contract
Based on % of completion of each milestone at month end
and/or
Completion of such activity/event.
Monthly service contract
Monthly service value likelihood to be raised by Vendor or
Monthly service value as reduced by the penalty/uncertified
value portion.

4
Hiccups

No proper coverage of POs for provision

Month not properly mentioned in Provision sheet.
Previous month provision not covered.
Incorrect GL & Cost Centre in PR leading to wrong GL expense
booking.
Provision sheet does not carry PO No.
Service Entry Sheet incompletely punched.
Provision for supply item is provided even if the material has
not been received.

5
Service Entry Sheet

6
Service Entry Sheet

Step 1 : Use T Code ML81N

7
Service Entry Sheet

Step 2 : Select the PO

8
Service Entry Sheet

Step 3 : Select Create Entry Sheet

9
Service Entry Sheet

Step 4 : Enter Service Code No. and other fields as

marked

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Service Entry Sheet

Step 5 : Tally the Invoice value with encircled value

as per screenshot below.

11
Service Entry Sheet

Step 6 : Select the Flag and indicator changes to

Yellow.

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Service Entry Sheet

Step 7 : Save & indicator changes to green.

13
Hiccups

Period of Invoice missing

SES not accepted before saving.
SES value is not same as that of the Gross Invoice Value
excluding ST (in case contract value has a separate ST value).
Short Text doe not include month/period of Bill.
Incorrect SES is not deleted after punching.
Service Code no. shall be taken from PO which is found
missing.

14
Other Issues

Capex PR is raised under service/supply category.

CERs are not serially numbered.
Incorrect GL/Asset/ Cost Centre.

15


Provisions, Service
Entry Sheet

Questions