SOP Library
SOP NO:
GM-DN01
(List of Exhibits/Attachments)
Mission
:
Technical Support Services
Area:
Grains Marketing (GM)
Area:
Grains Marketing (GM)
Activity:
Distribution (GM-DN)
Title:
Cash Sales Thru PNB
Date Approved/Issued:
04/11/1984
Date Effective:
06/01/1984
Digest:
I. TERMS OF REFERENCE
A. Rationale
B. Objective
C. Scope
D. Basis
II. IMPLEMENTING GUIDELINES
A. General Policies
1. Cash Sales Thru PNB as an Alternative Scheme
This alternative scheme shall refer to the direct payment by the clients to PNB instead of to the NFA Collecting Officers. The clients shall deposit to PNB for the account of NFA the amount equivalent to their total rice purchases from NFA. The following conditions shall be considered for the implementation of this scheme:
B. Specific Policies
1. NFA-PNB Memorandum of Agreement
The proper implementation of this scheme shall depend upon the abidance of the parties concerned (NFA, PNB and clients) to their respective responsibilities. PNB's participation in this scheme is vital, therefore, it should be aware of its responsibilities in the implementation of this scheme. A request shall be sent by NFA to the PNB Branch indicating therein PNB's duties. PNB's consent shall be signified on the same request which shall serve as the
NFA-PNB Memorandum of Agreement (Exhibit 1)
for this scheme.
This agreement shall be executed only after Central Office authority for the scheme's implementation had been secured. Prior to the request for Central Office authority, the provincial management shall first have an understanding with PNB or secure its consent regarding its participation in the scheme.
2. Notice to PNB/NFA Clients
The Provincial Management shall properly notify PNB and NFA clients concerning the scheme's implementation, suspension and subsequent adoption. Notice to PNB shall be sent directly to PNB, whereas, the notice to clients shall be posted conspicuously in concerned/participating NFA offices/warehouses/PNB offices.
3. Scheduling of Payments
Scheduling in accepting payments for this scheme shall be adopted by the province for the mutual benefit of NFA and PNB. This shall be done at a maximum of three (3) times a week depending upon the number of clients to be served. If such can be accommodated for one day, a once a week schedule shall be ideal.
4. Lead Time of One Day
The clients shall allow one day as NFA's lead time before the actual stock withdrawal. This means that the clients shall only return to the NFA office/warehouse the next following working day after the date of deposit for the stock withdrawal. The lead time shall be allotted for the pick-up of the duplicate deposit slips by the Cashier/NFA representative.
5. Documentation
5.1 Authority to Accept Payment (AAP)
a. Case 1 - AAP can be secured from the Provincial Office. The AAP shall be prepared by the Operations Section of the Provincial Office in two (2) copies: Original - PNB thru client and Duplicate - Operations Officer.
b. Case 2 - Warehouse/PNB is far from the Provincial Office.
The AAP shall be prepared by the Warehouse Assistant (WA) or Field Clerk (FC) authorized thru an Office Order signed by the Provincial Manager to issue AAP and subsequently, Authority to Issue (AI) based on
Allocation Schedule
(AS).
The
Allocation Schedule
(Exhibit II) shall serve as the principal control document of the province in the distribution activity in the warehouse.
This shall be prepared by the Operations Officer for approval by the Provincial Manager in three (3) copies: Original - authorized Warehouse Assistant/Field Clerk; Duplicate - PNB, and Triplicate - Operations Officer.
Only those clients whose name shall appear on the
Allocation Schedule
shall be served under this scheme. Only the allocation indicated in the
Allocation Schedule
per client shall be available for purchase for the period. This allocation shall be the ceiling of distribution for the indicated period from which the issuance of AAP and subsequent AI shall be based. Unavailed allocation (quantity purchased per variety is less than allocation) during the allocation period is deemed forfeited, and therefore, could not be added to subsequent allocation. The Warehouse Assistant/Field Clerk shall strictly follow the instructions indicated in the
Allocation Schedule
.
The
Allocation Schedule
shall be prepared and approved for transmittal on a weekly or monthly basis depending upon the allocation period. The
Allocation Schedule
should be received by the Warehouse Assistant/Field Clerk and PNB one week before the allocation period covered. This weekly/monthly
Allocation Schedule
shall update previous
Allocation Schedule
s issued and/or serve as new authorizations for the Warehouse Assistant/Field Clerk.
5.2 Deposit Slips
The deposit slips shall be accomplished by the clients based on the AAP. In addition to the usual data contained in the AAP, the PNB branch (especially in those localities where there are two or more PNB offices) and the NFA bank account number shall also be indicated therein. The following informations shall be accomplished by the client in the deposit slips:
a. Data of Deposit
b. NFA Bank Account Number
c. NFA as depositor
d. Name and address of client
e. Amount of Payment (Form of Payment: Cash or Check)
All the informations should be correctly stated in all the copies of the deposit slips and should be verified by the PNB Teller as against presented AAP before accepting payment/validation of the deposit slips.
The deposit slips shall be accomplished and validated
only in three copies
:
Original - to be retained for PNB
Duplicate - to be retained for pick-up by the Cashier or authorized NFA
representative for subsequent submission to the NFA Cashier
at the end of the day (case 1).
- to be retained for pick-up by the Warehouse Assistant /Field
Clerk at the end of the day (case 2).
Triplicate - to be given to the client for subsequent submission to NFA.
In cases wherein NFA shall undertake the delivery of stocks to clients, the clients shall likewise deposit with the PNB under a separate deposit slip the payments pertaining to delivery fees and handling charges of NFA as indicated in the AAP. Therefore, such informations including the appropriate SALO account number shall also be indicated in the AAP. The same flow of documents shall be applicable.
6. Financial Reporting System
Based on the validated deposit slips (DS-2 and DS-3), the Cashier shall prepare a Weekly
Report of Collections and Deposits - Cash Sales thru PNB (Exhibit III)
. The usual manner of RCD preparation and reporting shall apply. The numbering of the report shall also follow the usual RCD numbering except for the code of the type of transaction, which shall be "P" for
RCD
prepared under Case 1 and "PO-A" for Case 2. In cases wherein there are more than one warehouse utilized under Case 2, "P-B" shall be used and so on.
7. Reconciliation of Sales Issuances vs. Deposit Slips
The sales issuances for the scheme based on WSIs shall be reconciled, as against deposit slips submitted, by the Accounting Section on a weekly basis. The bank tickets corresponding to the deposits and remittance made under this scheme shall be forwarded by PNB to the Provincial Accountant on a weekly basis, instead of monthly, for immediately verification thereof as against stock issuances. The deposit slips shall be further verified from the Monthly Bank Statement and/or confirmed from PNB.
For control, easy reconciliation and record reference, the corresponding AI No. should be indicated in the deposit slips submitted.
8. Accounting Entries
8.1 To record sales collections and deposits
DR: Cash in Bank xxx
CR: Sales xxx
8.2 To record cost of sales (reduction in inventory account)
DR: Cost of sales xxx
CR: Inventory Account xxx
8.3 To record collections from delivery fees/handling charges
DR: Cash in Bank xxx
CR: Miscellaneous Income-Delivery Fees xxx
III. RESPONSIBILITIES
1.
Provincial Manager
1.1 Requests authority from the Central Office before the implementation of the scheme
1.2 Responsible for the over-all implementation of the scheme as authorized.
1.3 Executes a Memorandum of Agreement with PNB concerning the scheme.
1.4 Ensures compliance to the approved policies and procedures.
1.5 Formulates/implements modifications and/or modifications and/or revisions necessary to adapt the scheme to the needs of the province subject to confirmation of concerned C.O. officials, copy furnished MSD for information purposes.
1.6 Approves Authority to Issue
1.7 Authorizes Warehouse Assistant/Field Clerk thru an Office Order to issue AAP and AI based on
Allocation Schedule
in Case 2 of this scheme's implementation.
1.8 Approves
Allocation Schedule
prepared by the Operations Officer.
1.9 Authorizes the Operations Officer to conduct surprise inspections of the activities of the Warehouse Assistant/Field Clerk concerning the scheme.
2. Cashier
2.1 Case 1
a. Picks-up the validated duplicate deposit slip (DS-2) from PNB at the end of the
either personally or thru a duly authorized representative.
b. Reconciles the duplicate deposit slip as against validated triplicate deposit slip (DS-3) presented by the client.
c. Notes the triplicate deposit slip, if there are no discrepancies, and returns to client for presentation to the Operations Officer for issuance of AI.
d. Accepts the triplicate deposit slip (corresponding AI issued and AI No. indicated therein) from the Operations Officer at the end of the day.
e. Prepares the weekly
RCD
- Cash Sales thru PNB for submission to the Accounting Section together with the duplicate and triplicate deposit slips.
f. Indicates AI No. in the triplicate deposit slip.
g. Forwards to the Cashier all copies of the triplicate deposit slips at the end of the day.
3.2 Case 2
a. Prepares
Allocation Schedule
(AS) for approval by the Provincial Manager.
b. Transmits approved
Allocation Schedule
to authorized Warehouse Assistant or Field Clerk and PNB one week before actual allocation period covered by the
Allocation Schedule
.
c. Verifies copies of AAP, AI and validated deposit slips submitted by the Warehouse Assistant or Field Clerk.
d. Forwards verified documents to Cashier (duplicate and triplicate deposit slips) and to the Accounting Section (AI).
e. Monitors the activities of the Warehouse Assistant or Field Clerk and conducts surprise inspections as authorized by the Provincial Manager.
4. Warehouse Assistant or Field Clerk
4.1 Issues AAP in two copies (original - PNB; Duplicate - Operations Officer ) based on
allocation schedule
.
4.2 Picks-up validated duplicate deposit slips from the bank at the end of the day.
4.3 Reconciles duplicate deposit slip as against triplicate deposit slip presented by the client and notes same.
4.4 Prepares AI and stamps "AI ISSUED" on the duplicate and triplicate deposit slip.
4.5 Indicates variety and quantity purchased based on AAPO #2 and corresponding AI No. in the duplicate and triplicate deposit slips.
4.6 Presents to the Warehouse Supervisor the AI.
4.7 Prepares the weekly
RCD
- Cash Sales thru PNB.
4.8 Forwards to the Operations Officer weekly all copies of the documents prepared and issued as well as the weekly
RCD
together with the duplicate and triplicate deposit slips.
5. Provincial Accountant
5.1 Verifies submitted
RCD
-Cash Sales thru PNB and the duplicate and triplicate deposit slips.
5.2 Reconciles sale issuances per WSIs as against deposit slips and bank tickets (weekly) and bank statement (monthly).
5.3 Confirms deposits made under the scheme.
IV. FLOW CHART
1.
Case 1 - AAP and AI prepared at the P.O.
2.
Case 2 - AAP and AI prepared at the Warehousing Units
V.
Letter-Code for Field Office Positions shown in Annex F
Top Page
EXHIBITS
Cash Sales Thru PNB Scheme of NFA - Exh 1
Allocation Schedule (Cash Sale Thru PNB)
Report of Collections and Deposits (Cash Sales Thru PNB)
Title of Positions (Cash Sales Thru PNB) - Annex C
Letter-Code for F.O. Positions
DFD-AAP and AI prepared at the Warehousing Unit
DFD-AAP and AI prepared at the P.O.