ACCOUNTING AND FINANCE FUNCTIONS IN AN AUTOMOTIVE COMPONENTS MANUFACTURING COMPANY AREAS 1. Accounts Receivable. 2. Accounts Payable. 3. Inventory. 4. Direct and Indirect Taxes. 5. Payroll. 6. Treasury Operations. 7. Manufacturing/Final Accounts. Accounts. Activities in Accounts Receivable Function 1. Recording of Invoices based on the Sales made during the day. 2. Recording of Receipts during the day. 3. Passing the credit notes/debit notes and recording the same. 4. Preparing the Account Receivables report on periodical basis and giving the information to the concerned like: a. Aged AR to the Top Management. b. AR-Customer details to the sales/marketing people for collection and other purposes. c. AR-Customer detailed ledger to the Customer for reconciliation purpose. 5. Bad Debts provisions are also maintained and updated regularly. 6. Also the General Ledger Control Account is matched to the sub ledger on periodical basis. Activities in Accounts Payable Function 1. Recording of the vendor invoices on daily basis matching the same to the inventory receipts and also to the Purchase orders. 2. Passing the credit notes/debit notes and recording the same. . Updating the Accounts Payable-Vendor wise for the payments made to the Vendors which could be against the invoices outstanding or advance payments. 4. Accounts Payable report updating on periodical basis and using the information for MIS Reports to Management, Treasury Operations etc. 5. Ensuring that the Accounts Payable-Vendor detailed ledger are reconciled to the Vendor statement of accounts. 6. Also the General Ledger Control Account is matched to the sub ledger on periodical basis Activities in Inventory Function 1. Recording of Inventory movements like receipts of materials (Raw Materials, Stores and Spares, Fixed Assets, Consumables etc. ) and issue of the materials to the production/services department. Also, recording the receipt of finished goods from production department and the outward movement for sales etc. forms an integral part of the Inventory Function. 2. The inward and outward inventory movements must be matched to the respective Purchase and Sales orders. 3. Physical verification of the Inventory/Fixed Assets must be done on periodical basis and matched to the books. . MIS reports on inventory like ageing of the inventory, valuation etc. must be prepared and sent to the concerned. 5. Ensure that the control accounts in General ledger are matched to the sub-ledgers. Activities of Direct and Indirect Taxes Function 1. The Excise duties records must be maintained as per the Excise Laws and the same must be matched to the books of accounts. 2. The Sales tax/Service tax registers including returns must be prepared, updated and matched to the books of accounts. 3. The income/service taxes must be deducted at source for salaries, sub-contract charges etc. and the TDS certificates to be made and given to the parties in time. Also, the TDS Returns to be prepared and submitted at the regular due dates. 4. The company’s income tax/gift tax to be computed from the statutory accounts and the return to be submitted within the due dates. Also, the advance taxes to be computed and paid within the due dates.
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