General Information

A Sale Report DetailsCode: ZSDREP-ZMVR6480Date: 1.6.04 to 30.8.04Distribution Channel: 20 (RSO)Sales Organistion: 1000 (CVBU)Customer : 1000100 to 1999999

B Following staff personnel are authorized to create Sales Orders and Invoices at the RO (West) :-West

Name Designation SAP ID

C Following staff personnel are authorized to create Invoices at the RSOs (West) :-

RSO Name Designation

D All India Schemes1. Rs 3000 advance incentive is given to all dealers on the face of the Invoice for all CVBU models except Model 2702. Cash discount of 0.89% on Basic Price (Inclusive of PME and Excise) is given to all CVBU dealers.

SAP ID

1. Rs 3000 advance incentive is given to all dealers on the face of the Invoice for all CVBU models except Model 270

GL A/c: 800000A/c Name: Sale-Veh RSO-Dom CVD

Summary:

Rs. No of Invoices RefSale from July 04 to Sep 04Sample Checked: 23% #DIV/0!

Objective:To ensure that the sales balance is not materially mis-stated

Audit Procedures

1 Identification of Items to be tested (Sample selection)a Obtained the Sale Report from SAP for Sales at RSO of Vehicles for the Western Region

Report code - ZSDREP-ZMVR6480

b

2 Sample Checkinga Obtained list of All India incentive schemes which are recorded at the time of creation of Sales Invoice.b Obtained a list of Personnel authorised to Create Sale Orders at the RO and RSOc Obtained a list of Personnel authorised to Create Invoices at the RO and RSOd Agreed the Sale Invoice prices to the master price list and also verfied the updation in price master during the year on test check basise Checked the Invoice cum delivery challan and matched the terms of sale with the Sale order created.f Ensured that the Cash Discount given to the Dealer is calculated at the correct % i.e 0.89%.g Ensured that Rs. 3000 advance incentive has been given to the correct dealers.h Ensured that for Invoice selected, Post good Issued (PGI) entry has been passed

I Ensured that the Sale entry has been posted in the GL from the Sales and Distribution Module.jk Verified that only the authorised personnel are creating the Sales Order and the Invoice.

m Ensured that the Incentive given under Note For Approval (NFA) is approved by the appropriate authority.

n

o Checked invoices to ensure that the customer's and the RSO personnels signature are present on the Invoice.

3 Other Checksa Verified the results of the following report to check for Result

- Delivery List created but Post Goods Issue not done (VF04) No such cases- Post Goods Issue done but Invoice not generated.(VFX3) No such cases

b Cut offs

Also checked the next number in the series to see that the sale is recorded in the next quarter.

Selected a sample on CMA basis from the report covering various types of billings and also covering all the RSOs in the Western Region

rates and booked accordingly.

In case of Discounted Billing (ZAWL), Goods Returned, and Credit Notes obtained necessary NFA (Note for approval) and checked for authorisation.

created as on 30.09.04.

c Stocks sold but still lying in our premises / deliveries not taken.Obtained a list of such vehicles at each RSO and the confirmation from the buyer certifying the same.Checked in SAP to see that those sales have not been subsequently cancelled.In case of cancellations the sales have been reversed in September itself.

Observations:

1

2

3

4

5 Price Structure is as follows:Govt Sale:

Dealer Sale:

Retail Sale:

Conclusion:The sales balance is not materially mis-stated

The Basic price, PME, Excise Duty, Dealer Margin, and incentives are automatically generated by the system and no manual interventions are made in case of Normal sales (ZAOR billing type)

In case of discounted sales (ZAWL billing) there is manual intervention subject to the Approval note given by the LOB ( Line of Business) Manager or Mr. Mani VP Sales.

Incase of Normal Billing ZAOR, the sales order and the invoices can both be created at the RSO itself and the same is approved and released by the RO before Delivery list and invoice is generated. Only in case of Discounted sales and Government sales the Sales order is created at the RO.

Incase of Retail Sales to onetime customers the money is first received through a Demand Draft and then only the delivery list and invoice are generated.

manual price changes are made

on the details entered in the Pricing Module.

automatically computed by the Sap based on the details entered in the Pricing Module.

REF

Obtained list of All India incentive schemes which are recorded at the time of creation of Sales Invoice. DObtained a list of Personnel authorised to Create Sale Orders at the RO and RSO BObtained a list of Personnel authorised to Create Invoices at the RO and RSO CAgreed the Sale Invoice prices to the master price list and also verfied the updation in price master during the year on test check basisChecked the Invoice cum delivery challan and matched the terms of sale with the Sale order created.

Ensured that the Sale entry has been posted in the GL from the Sales and Distribution Module.

Verified that only the authorised personnel are creating the Sales Order and the Invoice.Ensured that the Incentive given under Note For Approval (NFA) is approved by the appropriate authority.

Checked invoices to ensure that the customer's and the RSO personnels signature are present on the Invoice.

Also checked the next number in the series to see that the sale is recorded in the next quarter.

Selected a sample on CMA basis from the report covering various types of billings and also covering all the

In case of Discounted Billing (ZAWL), Goods Returned, and Credit Notes obtained necessary NFA (Note for

Obtained a list of such vehicles at each RSO and the confirmation from the buyer certifying the same.

Price Structure is as follows:

The Basic price, PME, Excise Duty, Dealer Margin, and incentives are automatically generated by the system and no manual interventions are made in case of Normal sales (ZAOR billing type)

In case of discounted sales (ZAWL billing) there is manual intervention subject to the Approval note given by

Incase of Normal Billing ZAOR, the sales order and the invoices can both be created at the RSO itself and the same is approved and released by the RO before Delivery list and invoice is generated. Only in case of Discounted sales and Government sales the Sales order is created at the RO.

Incase of Retail Sales to onetime customers the money is first received through a Demand Draft and then

automatically computed by the Sap based on the details entered in the Pricing Module.

Sales Sample - Domestic Sales CVBU (Western Region)

Invoice

Sale order DeliveryNote

No Material Date Created Qty No

TickMarks

1 4290 161093 20677336000R 01.09.2004 MSDJFF500052 7 809335172 4290 213586 20678036000R 04.01.2005 MSDJRB503436 1 812715053 4300 179446 20741642000R 18.10.2004 MSDJRB503436 8 810471124 4300 216594 21533736000R 13.01.2005 MSDJRB503436 1 812934295 4300 194685 21630462000R 26.11.2004 MSDJRB503436 3 811511586 4300 225901 21690252000R 31.01.2005 MSDJRB503436 10 813550267 4310 174534 21711038000RBP02 01.10.2004 MSDPPP503484 1 810121808 4300 202991 21712038000R 15.12.2004 MSDJRB503436 1 812062609 4300 164876 26287536000R 14.09.2004 MSDJRB503436 1 80958233

10 4310 166685 26320348000R 17.09.2004 MSDPPP503484 2 8096823211 4310 181321 26326142000R 23.10.2004 MSDPPP503484 10 8105834512 4310 190120 26326142000R 13.11.2004 MSDPPP503484 4 8111373813 4315 164079 26326142000R 11.09.2004 MSDPDF502721 8 8095235914 4290 184836 26415338000R 30.10.2004 MSDJFF500052 2 8108114515 4310 198047 26415338000R 30.11.2004 MSDPPP503484 1 8116990916 4315 174481 27681632000R 30.09.2004 MSDPDF502721 1 8101198517 4300 172667 27681632000RMV15 29.09.2004 MSDJRB503436 4 8100472318 4310 221227 27703252000R 25.01.2005 MSDPPP503484 1 8132819419 4300 211623 27820848000R 31.12.2004 MSDRNN503621 1 8126606720 4300 222503 27821048000R 28.01.2005 MSDJSA504409 5 8135066521 4310 211830 27821048000R 31.12.2004 MSDPPP503484 2 8126632922 4315 185701 27821048000R 31.10.2004 MSDPDF502721 7 8108630823 4300 187957 28210134000R 05.11.2004 MSDJRB503436 1 81096939

Credit Note

Credit memo Request DeliveryNote

No Material Date Created Qty No

Tickmarks

1 4300 60058870 27681632000RMV02 07.10.2004 MSDRNN503621 1 840137692 4315 60068082 27681632000RMV16 22.01.2005 MSDRNN503621 1 81290496

SR No

Plant code

SR No

Plant code

3 4330 60067212 21770536000RBX67 17.01.2005 MSDRNN503621 1 840194354 4310 60059568 27681632000R 14.10.2004 MSDRNN503621 1 809326615 4310 60058391 26995426005R 23.09.2004 MFINMM504268 16 4315 60059809 27681632000R 18.10.2004 MSDRNN503621 1 81001466

Debit Note

RSO Name Debit memo req no.

No Material Date CreatedTickMarks

1 4300 70005005 26286136200R 02.11.2004 MSDRNN5036212 4315 70004888 28080248000R 29.10.2004 MSDRNN5036213 4315 70005069 26286136000R 29.11.2004 MSDRNN5036214 4300 70005039 26286136000R 19.11.2004 MSDRNN5036215 4310 70004534 26414438000R 24.09.2004 MSDPPP503484

SR No

Plant code

RSO Code

DeliveryNote Invoice no Invoice Amt (Rs) Qty Basic Price

Qty

1 P 930004222 01.09.2004 1105200 767,666.94 1 570,936.00 1 P 930004953 04.01.2005 1105200 803,724.29 1 595,936.00 1 P 931016225 18.10.2004 1100820 745,411.82 1 557,415.00 1 P 931018082 13.01.2005 1101700 648,899.87 1 494,109.00 1 P 931016939 26.11.2004 1100820 991,979.49 1 751,067.00 1 P 931018482 31.01.2005 1101680 726,395.78 1 545,603.00 1 P 932020041 01.10.2004 1107000 1,417,464.47 1 1,267,341.99 1 P 931017312 15.12.2004 1101680 1,070,285.99 1 808,448.00 1 P 931015574 14.09.2004 1100820 865,372.77 1 782,619.57 1 P 932019657 17.09.2004 1100500 702,278.72 1 521,266.00 1 P 932020409 23.10.2004 1100500 667,328.88 1 496,455.00 1 P 932020816 13.11.2004 1100500 667,328.88 1 496,455.00 1 P 932209181 11.09.2004 1109700 663,254.65 1 496,455.00 1 P 930004581 30.10.2004 1105200 573,483.71 1 385,570.00 1 P 932021211 30.11.2004 1103350 518,540.27 1 385,570.00 1 P 932209500 30.09.2004 1109700 951,935.49 1 728,247.00 1 P 931015917 29.09.2004 1101680 1,596,027.38 1 1,440,848.00 1 P 932021934 25.01.2005 1100500 697,935.22 1 518,239.00 1 P 931017713 31.12.2004 1199919 943,921.64 1 748,953.00 1 P 931903448 31.01.2005 1199919 921,179.01 1 703,453.00 1 P 932021574 31.12.2004 1107000 927,595.52 1 690,953.00 1 P 932209855 31.10.2004 1329700 918,411.41 1 690,953.00 1 P 931016560 05.11.2004 1101680 596,907.43 1 455,386.00

DeliveryNote Qty Amount Discount

Qty A/c 800000

1 1101680 931016060 1 2,149,061.90 1,939,062.93 20,257.661 1109700 932211019 1 1,501,236.14 1,352,426.00 12,036.59

Inventory posting

Invoice Date

Sold to Party

Inventory posting

Sold to Party

Credit note no

Amount Dr to Sales A/c

1 1199916 934031920 1 928,399.36 828,928.00 0.001 1199918 932701878 1 5,214.00 4,655.36 0.00

3100500 932701853 1 90,191.36 80,528.00 0.001 1199917 932400786 1 35,000.00 31,250.00 0.00

Debit memo req no. DeliveryNote Invoice Date

Qty No Qty

931703643 MSDRNN503621 931016110 14.10.2004932400787 MSDRNN503621 932209504 01.10.2004932400791 MSDRNN503621 932210045 10.11.2004

931703651 MSDRNN503621 931016740 17.11.2004932701856 MSDPPP503484 932019744 23.09.2004

Inventory posting

debit memo no.

Debit memo created by

original inv .no

Retail Markup Excise Duty

A/c 809910 A/c 800000

{a} {a} {a} {a} {a}

10,500.00 105,831.69 6,116.68 - 687,267.69 10,500.00 109,943.57 6,375.78 - 716,379.57 10,500.00 103,607.82 5,976.55 - 671,522.82 10,500.00 82,995.56 5,229.68 - 587,604.56 10,200.00 135,409.39 7,980.42 - 896,676.39 10,200.00 101,615.69 5,851.03 657,418.69 - - 11,279.34 1,267,341.99 10,800.00 144,945.81 8,581.32 - 964,193.81 - - 6,965.31 - 782,619.57 10,500.00 97,662.22 5,601.91 629,428.22 10,500.00 93,581.42 5,344.77 600,536.42 10,500.00 93,581.42 5,344.77 600,536.42 10,500.00 93,581.42 5,344.77 600,536.42 9,000.00 75,096.90 4,180.04 - 469,666.90 9,000.00 75,096.90 4,180.04 469,666.90 10,800.00 121,554.76 7,659.36 860,601.76 - - 12,823.55 - 1,440,848.00 10,200.00 97,115.01 5,567.43 625,554.01 10,800.00 21,000.00 135,160.37 - - 915,913.37 10,800.00 24,000.00 127,676.77 22,448.51 21,000.00 865,929.77 10,800.00 125,620.82 7,363.63 827,373.82 10,800.00 125,620.82 7,363.63 827,373.82 9,000.00 76,379.88 4,812.82 - 540,765.88

Saletax Created by Reasons Bill Type

230,256.63 MSDRNN503621 Salesreturn 931014595 30.07.2004 ZARE160,846.73 MSDRNN503621 Salesreturn 932210980 12.01.2005 ZARE

PME / Service Charges

Discount on Basic Price

0.89%

Discount on Dealer

margin

Amount Cr to Sales A/c

A/c 809920

Orginal Invoice no

Orginal Invoice

Date

99,471.36 MSDRNN503621 STO claims registration 934031910 13.01.2005 ZARE558.64 MSDRNN503621 price was too high 932905154 31.08.2004 ZACR

9,663.36 MFINMM504268 taxi refund ZAC33,750.00 MSDRNN503621 price was too high 932209408 29.09.2004 ZACR

Sold to Party Qty Amount cr to sales Saletax Amount Bill Type

A/c 800000

1101680 34,934.00 4,192.08 39,126.08 ZADR1310150 68,885.00 8,266.20 77,151.20 ZADR1310150 103,840.00 12,460.80 116,300.80 ZADR1100820 20,768.00 2,492.16 23,260.16 ZADR1107000 26,507.73 3,180.93 29,688.66 ZADR

Disc PME/Serv/old/veh PCBV

{b}

- - - - 3,000.00 - - - - - - - - - - - 3,000.00 - - - 3,000.00 - - - 3,000.00 - - - 3,000.00 - - - - - - - 3,000.00 - - - 3,000.00 - - - - - - - - - - - 3,000.00 - - - 3,000.00 - - - 3,000.00 - - - 3,000.00 - - - 3,000.00 - - - 3,000.00 - - - - - - - - - - - - - - - - - - - 3,000.00 - -

Query vouched

Offtake Disc

AM Bonus

Regional Price Diff

Advance Incentive Scheme

Incentive Comm to Dealers

DGS&D Disc

A/c 809910

A/c 1101680

Tickmarks

P

Reason Query vouched

price discrepancy pr was too low Pprice discrepancy pr was too low Pprice discrepancy pr was too low Pprice discrepancy pr was too low Pprice discrepancy pr was too low

Tickmarks

Entry Tax Saletax Bill Type Pmt Term RSO Sign on Inv

89,515.93 ZAOR Cash MSDJFF500052 P 93,720.50 ZAOR Cash MSDJFF500052 P 79,865.55 ZAOR Cash MSDRNN503621 P 69,524.99 ZAOR Cash MSDJRB503436 P 106,283.52 ZAOR Cash MSDJRB503436 P 77,828.12 ZAOR Cash MSDRNN503621 P

12,530.63 151,871.19 ZAOR Cash MSDPPP503484 114,673.50 ZAOR Cash MSDJRB503436 P 92,718.51 ZAOR Cash MSDJRB503436 P

6,208.26 75,244.15 ZAOR Cash MSDPPP503484 72,137.23 ZAOR Cash MSDPPP503484 72,137.23 ZAOR Cash MSDPPP503484 71,063.00 ZAOR Cash MSDPDF502721 P 110,996.85 ZAOR Cash MSDJFF500052 P 56,053.41 ZAOR Cash MSDPPP503484 101,993.09 ZAOR Cash MSDPDF502721 P 171,002.93 ZAOR Cash MSDJRB503436 P

6,169.87 74,778.77 ZAOR Cash MSDPPP503484 9,500.00 18,508.27 ZAOR Cash MSDRNN503621 P

98,697.75 ZAWL Cash MSDRNN503621 P 8,200.10 99,385.23 ZAOR Cash MSDPPP503484

98,401.22 ZAOR Cash MSDPDF502721 P 63,954.37 ZAOR Cash MSDJRB503436 P

Recovery of freight

Invoice Created By

Query Tickmarks

P Whole sale DealerP Wholesale DealerP Wholesale DealerP Wholesale DealerP Wholesale DealerP Wholesale Dealer

Wholesale Dealer Why no excise duty & PME charges {d}P Wholesale DealerP Wholesale Dealer Why no excise duty & PME charges {d}

Wholesale DealerWholesale DealerWholesale Dealer

P Wholesale DealerP Wholesale Dealer

Wholesale DealerP Wholesale DealerP Wholesale Dealer Why no excise duty & PME charges {d}

Wholesale DealerP Retail individualP Retail individual Why there is a Increase in basic Price {c}

Wholesale DealerP Wholesale DealerP Wholesale Dealer

Reciever Sign on Inv

Type of Sale

Customer group

Tickmarks

{a}

{b}

{c}

{d}

{e}

{f}

{g}

{h}

{i}

{j}

{k}

{l}

{m}

{n}

PME (Post Manufacturing Expenses)They are Transport cost, Freight, Insurance charges etc. in the invoice itself it differ from model to model .Retail Markup / Discount on Dealer MarginIncase of retail sale, the dealer margin is automatically calculated by the system as per the conditions in the pricing module and it is paid to the dealer through whom the sale was made.it is also fixed for different type of modelExcise DutyThis is a sale from factory of Chasis only and thus the excise is levied at this point Inclusive of 2% education cess from 8 th July 2004. Cash Discount Cash Discount of 0.89% are given to dealer operating through channel finance and own fund

Advance Incentive Scheme With effect from 1st November 03 all the Invoices that are raised for sale of Commercial vehicle, advance incentive of Rs. 3,000/-would be deducted from

Basic Pricehas been increased wef 1.1.2005 , we have verfied that it is updated by authorised person basedon circular

Excise is not shown separately since this is a case of sale of Body Built Chasis. Thus the excise duty was charged earlier at time of despatch of chasis to Bodybuilder.

{o}

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{s}

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