National Thermal Power Corporation Limited: November 2002

NATIONAL THERMAL POWER CORPORATION LIMITED
MANUAL ON COST ACCOUNTING

November 2002
A. F. FERGUSON & Co. NEW DELHI
Manual on Cost Accounting
Contents Section 1.00 2.00 3.00 4.00 Description Introduction Costing System Cost Centre Codes Apportionment of Costs Interface of Costing System Appendices attached Appendix I Appendix II Appendix III Costing Formats Analysis Reports Cost Centre Codes Page No 1 2 8 12 19
INTRODUCTION This manual outlines the cost accounting system for coal based, gas based and hydro power stations. The manual describes the procedures for preparation of cost sheet, basis for collection, allocation and absorption of costs and the interface with the underlying financial accounting system to generate cost reports. The cost accounting system has been formulated to meet the following objectives: To ascertain unit wise and station wise cost of power generated. To compare cost of generation between units in a power station and also of a power station vis--vis other stations of NTPC and other than NTPC. To provide a basis for trend analysis of costs. To analyse cost variances and take remedial actions where required.
The system envisages cost center-wise aggregation of expenses, apportionment of expenses of common systems to cost centers and ultimately to units and thus help in preparation of unit-wise cost sheet. The methodology of aggregation and apportionment of expenses have been dealt in details in the manual. The Cost Accounting System is not a stand-alone system and it envisages integration with Financial Accounting System. The system is dependent on payroll database, Material Management database, Financial Accounting database and OPPMS database. Department of Company Affairs has notified the Cost Accounting Records (Electricity Rules) 2001 vide notification GSR 913(E) dated 21st December 2001 and compliance with these rules is mandatory from financial year 2002-2003.
1.00 COSTING SYSTEM 1.01 In view of the business requirements of NTPC, the costing system should provide the cost accumulation and cost analysis as follows: Station wise and unit wise determination of cost of generating power Analysis of costs: Activity wise Function wise Cost centre wise
1.02
Costing reports are to be generated monthly. A brief description of the cost sheets/ reports to be generated is given below.
MONTHLY COST SHEET FOR POWER GENERATION 1.03 Stations are to generate monthly cost sheet Unit wise as well as for the station as a whole. The cost sheet would provide the cost for the month and upto the month along with a comparison with the budgeted and standard cost The cost sheet should provide the following: Fuel Cost - The fuel cost to be shown unit-wise separately for each type of fuel used. The main cost sheet to be supported by detailed reports to further analyse the fuel cost in terms of the quantity and price of fuel consumed. Repair and Maintenance cost The repair and maintenance cost to consist of all the direct costs incurred by the R&M departments. This would include employee cost, material cost, works cost and the direct overheads. The repair and maintenance cost for the Steam Generator (SG) and Turbo Generator (TG) are directly identifiable to a Unit and should be shown in the cost sheet separately for each unit. The R&M cost on the other systems, which are mainly common for the station/ stage, shall be grouped together in the main cost sheet. The main cost sheet to be supported by cost centre wise, sub cost centre and activity wise analysis of total repair and maintenance cost for SG, TG and other systems Operation cost - The operation cost to consist of all direct costs incurred by the Operation departments. This would include employee cost, material cost, works cost and direct overheads. The operation cost for the Steam Generator and Turbo Generator are to be shown in the cost sheet separately for each unit. The operation cost of the other systems, which are mainly common for the station, shall be grouped together in the main cost sheet. The main cost sheet is to be supported by 3
1.04
schedules for analysing cost centre wise as well as sub cost centre wise analysis of total operation cost for SG, TG and other systems Administration cost - The administration cost to consist of all costs incurred by the Administration, Service and Township departments / cost centres, and also to include the share of the Corporate Centre expenses. This would include employee cost, material cost, works cost and overheads. The main cost sheet to be supported by a detailed schedule to analyse department / cost centre wise total costs. Depreciation charge - The depreciation cost to consist of depreciation on all the fixed assets at the rates prescribed. Interest cost - The interest cost to consist of interest on long term loans and working capital for the station as a whole.
1.05
The formats of the main cost sheet are provided in Annexure.
ANALYSIS REPORTS 1.06 In addition to the above cost sheet, certain additional reports are to be generated to further analyse the costs.
Cost of power - Account head wise analysis of cost 1.07 The main cost sheet described above would provide total cost by nature of expenditure (i.e. the expenditure incurred under all the account heads for the functions of repair and maintenance, operations etc. are aggregated and shown as a single item of cost). Another cost sheet should be generated to analyse the costs as per the account heads given in the chart of accounts. For this purpose, the cost for each cost centre is to be apportioned account head wise to the Units in the same ratio as apportionment of total cost of a cost centre to the units. The formats of the cost sheet are provided in Annexure. (Form AR.1.1)
1.08
Repairs and maintenance cost analysis Function wise 1.09 The cost is to be analysed function wise (i.e. Mechanical, Electrical, C&I and Civil) for SG, TG and other systems. The function wise repair and maintenance is to be summarised in a separate sheet for all cost centres to ascertain function-wise cost for each Unit and the station as a whole. The formats of the cost sheet are provided in Annexure. (Form AR.1.2 to AR.1.4)
1.10
Activity wise 1.11 The cost is to be analysed activity wise (viz. Breakdown, Preventive, Overhaul etc.) for each Unit and station as a whole. Each activity wise cost would be further analysed cost centre wise and function wise. The formats of the cost sheet are provided in Annexure.(Form AR.1.5 and.1.6)
1.12
Summary report Operation and maintenance cost for the plant area 1.13 1.14 A summary report is to be generated to provide in one report the maintenance cost (function wise) and operation cost for each Unit and the station as a whole. The formats of the cost sheet are provided in Annexure (Form AR.1.7)
COST CENTRE WISE COST ANALYSIS 1.15 1.16 Cost centre wise cost report is be generated to determine and review the costs incurred by a cost centre. The cost center report is to be generated on the following basis: Direct cost All the direct cost incurred for a cost centre is to be considered in the cost report. Total cost The direct cost as well as the cost transferred from the other cost centres is be considered in the cost report. For example The total cost of Coal handled would include the cost of the coal handling system, MGR system, raw water for sprinkling etc.
In this case the costs incurred by a cost centre on behalf of other cost centres are to be apportioned to the beneficiary cost centres. 1.17 The cost should be analysed both for the direct cost and the total cost the cost of all the preceding direct cost centres involved for an output of a cost center can be added to obtain the total cost. For example: Per tonne cost of coal consumed can be worked out by adding the fuel cost to the cost incurred by MGR and CHP cost centres. Cost per tonne of steam raised can be worked out adding the cost incurred by the Steam Generator, AHP and Water Treatment plant (WTP) to the fuel cost.
1.18
The total cost as worked out above needs to be reviewed based on the relevant output of a cost centre. For example: Handling cost per tonne of ash should be worked out by dividing the cost incurred by the AHP by the quantity of ash handled Handling cost per tonne of coal (in CHP) should be worked out by dividing the cost incurred by the CHP by the quantity of coal handled Cost per tonne of water treated should be worked out by dividing the cost incurred by the WTP by the quantity treated
1.19
The above methodology does not take into account any change in stock / work in process to ascertain the total cost of an output. For example, there would be closing stock of coal in CHP and the cost of CHP should be transferred to the steam generation after taking into account the coal stock in hand. However, the impact of such items is not considered to be material and therefore is to be ignored for the purpose of cost analysis
VARIANCE ANALYSIS 1.20 The actual cost would be compared with the budgeted and the standard cost and the variances would be analysed to take appropriate action for cost control. The budgeted cost to be worked out based on the annual budgets following the same process as for the actual cost.
Variable cost 1.21 The variable costs are to be analysed for the quantity and price variance. Quantity consumed to be compared with the budgeted consumption for actual output Price to be compared with the budgeted price. The variance analysis would be carried out for the total cost of fuel as well as the various elements of fuel costs on account of quantity, quality and price
Fixed / Semi variable cost 1.22 The actual cost incurred during the month is to be absorbed against the output for the month. In view of this, the actual cost is to be compared with the budgeted cost. The actual cost per unit of an output is to be worked out based on the actual cost and the relevant output for a cost centre for the month. For example, in the case of CHP, the output would be quantity of coal consumed In the above analysis, the variance in total cost on account of variations in the actual physical activities vis-a-vis the budgeted physical activities should be considered. The cost of activities not carried out should be excluded to work out
1.23
the budgeted cost per unit of output. For example, the cost of carrying out a maintenance activity (as per the budgeted maintenance schedule), which has not actually been carried out, should be excluded from the budgeted cost for a more accurate variance analysis.
2.00 COST CENTRE CODES 2.01 Keeping in view the requirement of the costing system defined in the previous chapter, a 6 digit cost centre code is designed. The structure of the codes shall be as follows: X Stage code Stage code 2.02 The 1st digit of the cost center code would indicate the stage to which the expense pertains to. The valid codes for this field shall be 0, 1, 2, 3, and 4. 0 shall indicate that the expense is common to all the stages for example the administration expenses. 1, 2, 3 and 4 shall denote the respective stages. X Unit code X Activity code X X Cost centre codes X
Unit code 2.03 The 2nd digit shall indicate Unit number to which the expense pertains, for example Unit 1, Unit 2, Unit 3 through Unit 9. The Unit numbers shall be continuous for all Stages. In case the expense item cannot be identified with a particular Unit, the applicable code shall be 0. Thus, 1 in the first place and 0 in the second place shall denote expenses that are identified to the first stage but the Unit is not known and hence is a common expenditure for that stage. Example - Expenditure on Water treatment plant of the First stage. The system is to maintain mapping of the stage against Units to prevent wrong data entry by the user. Thus, if the first stage consists of four Units and the second stage consists of 2 Units, the system shall prevent entry of Unit code 1 4 under stage 2.
2.04
2.05
Activity codes 2.06 The 3rd digit of the cost code shall indicate the type of activity. The activity codes are used essentially to analyse the type of repairs and maintenance activities. The codes 4 to 9 would represent Repairs and Maintenance activities. The other codes would represent operation, administration and other overheads. The repairs and maintenance activities have been divided into non-discretionary and discretionary activities. The codification in this regard shall be as follows:
2.07
Non discretionary activity 1. Overhaul The maintenance activities carried out during the periodic overhaul program. Code for this activity = 7 2. Breakdown maintenance The maintenance activities which are carried out after a system or equipment has failed Code for this activity = 8 3. Preventive maintenance The maintenance activities which are carried out based on the condition of the equipment and failure of the same may lead to process / equipment / safety failure, such as : bearing replacement based on condition monitoring data pump reconditioning due to detoriation in performance lube oil change based on condition filter changes based on performance plant surveys / inspection initiated by performance problem or safety recommendation Code for this activity = 9 4. Routine Maintenance The maintenance activities which are based on a regular time frame (say calendar / time based) and are not condition based, such as: - safety system checks - lube oil level checks - filter changes (irrespective of conditions) - plant inspection at defined intervals - house keeping Code for this activity = 6 Discretionary Activity These are the activities that are planned for the financial year but may or may not be carried out, depending upon changes in the business priority during the year 5. Reliability One time planned maintenance / operational improvements, controlled by the budget holders, leading to direct improvement of system or operational performance. It must be borne in mind that only those expenses shall be booked under this head which are incurred for increasing the reliability of the system and are discretionary. For example, expense on replacing a motor / switch / bearing with a new technology
motor / switch / bearing, which is a technological advancement over the previous one and which requires less servicing / maintenance. Code for this activity = 5
6.
Exceptional One time budget spends in the financial year, which are planned for a range of activities that are not directly related to the short term performance of the process plant, such as: New security system Road repairs Railway siding
Code for this activity = 4 7. Operation Code for this activity = 1 8. Administration Code for this activity = 2 Cost centre codes 2.08 The 4th, 5th and 6th digits of the cost code indicate the cost centres (i.e. systems in the plant and other cost centres i.e. township, services, township etc). The 4th and 5th digit shall indicate the cost centre code and the 6th digit shall indicate the sub cost centre. For example, SG shall be a cost centre with various sub-cost centres within it pressure parts, coal mills, fans etc. The cost centres are essentially the systems/ plant area for which costs shall be accumulated and analysed. The cost centres may or may not necessarily be equivalent to a department. No functional code (i.e. operation, maintenance, administration etc.) is to form part of the cost centre codes. The requirements of functional classification of expenditures for a cost centre are to be met by using the department codes in conjunction with the cost centre codes. For example: The expense vouchers (issue of material from store, payment to contractors etc.) bearing Mechanical maintenance as department code is to be classified as mechanical maintenance expenditure. Similarly, all expenses bearing the department code Operation and Electrical Maintenance shall be treated as Operation and Electrical maintenance expenses respectively.
2.09
2.10
10
In case an expense item bears the department code as Mechanical (or Electrical or C&I or Civil) along with the Boiler Pressure Parts as the cost centre, it shall mean that the Function is Mechanical maintenance (or Electrical or C&I or Civil) for Boiler Pressure Parts. Thus, the aggregation of all expenses for Department code Mechanical maintenance shall give the total total expenses incurred for Mechanical Maintenance function. On the other hand, the aggregation of all expenses incurred for the cost centre boiler pressure parts shall give the total expenses incurred of that cost centre.
2.11
The existing cost centre codes have been expanded and logically grouped under the following broad heads: Turbo-generator Boiler Coal Handling Plant Ash Handling Plant Hydro mechanical equipment Civil Maintenance Electricals / Switchyard Control & Instrumentation MGR Offsites / Others Township Services and Administration
2.12
A list of cost center codes and their applicability to thermal, gas and hydro stations is provided in Annexure.
11
3.00
APPORTIONMENT OF COSTS
3.01This chapter provides the basis of allocation and apportionment of costs to the Units and cost centres. The basis of apportionment of costs of various cost centers to the Units is also provided. ALLOCATION / APPORTIONMENT OF COSTS TO UNITS/ COST CENTRES Fuel Cost 3.02 The fuel cost is to be ascertained based on actual consumption of fuel for each unit.
Material cost 3.03 The material cost is to be captured by the Cost accounting system through the Materials accounting system. (To enable this, the Materials accounting system shall contain provisions for incorporation of cost centre codes in all the input documents - SIV, MRN etc.) The filling up of cost centre in the store documents is mandatory.
3.04
Works cost 3.05 The works costs are to be identified to the respective cost centres/ sub cost centres. The cost centre should be indicated in the WO. In the Contracts accounting system, the bill amount against a Work Orders / LOAs is to be debited to the concerned cost centre. In case a work order is for more than one cost centre, the specific cost centres and the ratio of apportionment is to be specified by the Engineer-in-charge at the time of awarding the LOA. The system generated JVs to take the appropriate cost centre codes from the WO master. In case a manual JV is fed in the system, the cost centre code shall be entered at the time of making the JV. In case of multiple cost centres against a W.O, the allocation of costs to the cost centres shall be entered in the JV as specified by the Engineer in charge.
3.06
3.07
Employee cost 3.08 The employee cost is to be allocated to the cost centre based on the manpower deployed for each cost centre. The employee strength is to be worked out by the site IE deptt in consultation with the O&M in charge
12
3.09
Employee cost denotes the salaries and wages paid to the employees. Employees are identifiable to departments. Therefore, the employee cost of each department would need to be apportioned to respective cost centres (Employee costs are not proposed to be allocated to any sub cost centre). The employee costs of the Operations departments allocated to the cost centres shall be treated as Employee costs Operation and that of the Maintenance departments cost centres shall be treated as Employee cost Maintenance. Based on the above basis the monthly employee cost is to be allocated to the cost centers through the Payroll accounting system. In case identification of employees to respective cost centres is difficult then a predetermined ratio for apportioning the employee cost to each cost center, unitwise is to be worked out (in this case some approximations would be required). These ratios should be reviewed periodically (annually).
3.10
3.11 3.12
Other expenditure 3.13 The other overhead expenditure (i.e. other than employees and repair and maintenance shall not be apportioned to the cost centres but shall form a part of the Administrative costs and directly allocated to the units.
APPORTIONMENT OF COSTS TWO STATION AT THE SAME LOCATION 3.14 In case a Station has both Thermal and Gas based power plants with common facilities and departments, the following policy is to be adopted for apportioned of costs:
The Coal and Gas units shall be considered as two different power stations with different station codes. The plant area and the O&M departments are distinct for the units. Therefore, the costs incurred by these departments are to be debited to the respective cost centres for the Thermal and Gas plants. In respect of the common administration costs the same is to be apportioned to the units in the ratio of installed capacity of the respective units
APPORTIONMENT OF COSTS MORE THAN ONE STAGE AT THE SAME LOCATION
3.15
In case the station has Units which have been constructed in more than one Stage (say the first stage consists of 4 Units of 210 MW each and the second Phase consists of 2 Units of 500 MW each), the apportionment of expenditure is to be done as under:

In such cases, the Unit numbers shall be continued from the first stage. In the above example, the Units of stage two shall be numbered 5 and 6 respectively In case each stage has dedicated systems for coal handling, ash handling, water treatment plant, switchyard etc. then the Stage code in the cost centre 13
code shall differentiate the specific system. In such cases, all expenses of the common cost centres for a stage are to be apportioned to the respective Units. For example, all expenses of the system of the second stage are to be debited to the Units of the second stage. Similarly, the expenses of the systems of the first stage are to be debited to the Units of the first stage Common costs across stages (including administrative costs) are to be apportioned in the ratio of the installed capacity of the Units.
ALLOCATION / APPORTIONMENT COST OF COSTS CENTRES TO THE UNITS
3.16
All Fuel costs shall be identified directly to the Units. Other costs shall be identified and accumulated for the cost centers and then apportioned to units. Administration, township, financing cost, etc. shall be directly apportioned to units. The overall principles to be followed for apportionment of costs of cost centres to the Units are as follows: Employee cost of non- O&M departments To be apportioned to the Units based on the installed capacity of the Units. Operation cost These should be apportioned in the ratio of output consumed by the respective Units as the cost driver for the operation cost is largely be the actual utilisation of resources. R&M cost These should be apportioned in the ratio of output consumed by the respective Units as the cost driver for the operation cost is largely be the actual utilisation of resources Administrative costs These are to be apportioned in the ratio of the unit wise capitalized cost
3.17
3.18
Costs of dedicated cost centres of a particular stage are to be apportioned among the Units of that stage. Thus, the cost of Water Treatment Plant of stage I are to be apportioned among the Units of stage I. No cost is to be attributed to auxiliary consumption in power station / Units. The total cost shall be expressed as cost per unit of generation (total cost/ gross generation) and cost per unit of net generation (total cost/ net generation i.e. gross generation less the auxiliary consumption)
3.19
14
3.20 Sl. No. 1 2 3 4
The following table gives the basis for apportionment of common costs incurred by various cost centres among the Units. Cost Centre Code 100 140 150 170 180 190 200 210 Description Turbo-Generator Steam Generator Basis of apportionment Costs are directly identified to a Unit. Costs are directly identified to a Unit.
Hydro Mechanical Costs are directly identified to a Unit. Equipments Coal Handling Plant Employee cost - in the ratio of the installed (CHP) capacity of the Units. Operation and R&M costs - in the ratio of coal consumed by each of the Units Plant Employee cost - in the ratio of the installed capacity of the Units. Operation and R&M costs - in the ratio of coal consumed by each of the Units The electrical systems that can be identified to a particular Unit to be debited to that unit. For example, expense on Unit Auxiliary Transformers etc. to be debited to the Unit to which they are attached.
250 260
Ash Handling (AHP)
6.
300 310
Electricals / Switchyard
350 360
8.
400 409
The common expenses (ICTS, motors etc.) and employee cost - in the proportion of the installed capacity of the Units C&I and associated cost The C&I maintenance directly identifiable to a centres particular Unit (say a sensor in Boiler of Unit 4) to be booked in the Unit to which the expense is identifiable (i.e. Unit 4). The other expenses including employee cost - in the proportion of the installed capacity of the Units MGR Employee cost - in the ratio of the installed capacity of the Units. Operation and R&M costs - in the ratio of coal consumed by each of the Units
OFF-SITES
15
Sl. No. 9 10
Cost Centre Code 410 420
Description Compressed air systems Liquid Fuel system
Basis of apportionment Expenses - in the ratio of installed capacity of the Units Employee cost - in the ratio of the installed capacity of the Units.
11 12
430 440 446 -
Air conditioning ventilation plant Water treatment plant
Operation and R& M costs - in the ratio of the oil consumption by the units and Expenses - equally among the Units Employee cost - in the ratio of the installed capacity of the Units. The operation and R&M expenses - in the ratio of DM water consumed during the month by the Units Employee cost - in the ratio of the installed capacity of the Units. Operation and R&M expenses - in the ratio of number of hydrogen cylinders issued during the month to the Units Employee cost - in the ratio of the installed capacity of the Units.
13
450
Hydrogen plant
14
460
Cooling water system
15 16 17 18 19 20 21 22 23
470 480 500 510 520 530 540 550 560
Operation and R&M expenses - in the ratio of number of running hours of the Boiler Feed Pumps of the respective Units Crane and hoists Expenses - in the ratio of the installed capacity of the Units Fire hydrant, deluge and Expenses - in the ratio of the installed capacity of fire tender system the Units House Keeping Expenses - in the ratio of the installed capacity of the Units Main plant buildings Expenses - in the ratio of the installed capacity of the Units Roads / Drainage and Expenses - equally amongst the Units sewerage Other plant buildings Expenses - in the ratio of the installed capacity of the Units Workshop (Mechanical) Expenses - in the ratio of the installed capacity of the Units Fuel Gas system In the ratio of the installed capacity of the Units Chlorination plant In the ratio of installed capacity of units.
16
Sl. No. 24 25 26 27 28 29 30
Cost Centre Code 570 571 572 581 588 601 610 650-690 750-850
Description By pass stack Air Washing and ventilation system Air intake filter house Civil maintenance of Hydro Stations Township Services Administration
Basis of apportionment In the ratio of the installed capacity of the Units In the ratio of installed capacity of units. In the ratio of the installed capacity of the Units In the ratio installed capacity of units. Expenses - in the ratio of the installed capacity of the Units Expenses - in the ratio of the installed capacity of the Units Expenses - in the ratio of the installed capacity of the Units
APPORTIONMENT OF REVENUE 3.21 The revenue generated by the power station as per the current tariff structure can be broadly classified into Fixed and Variable components. The various components are as follows:

Fixed charges Variable charges Fuel Price adjustment Incentive / Disincentive Monthly Operating Pattern Adjustment (MOPA), in case of Gas based stations
3.22
The Fixed charges are to be apportioned in the ratio of the capitalised costs of the Units considered for tariff purposes. If the same is not available, then the apportionment to be done in the ratio of the capitalized cost of the units. The variable charges including FPA and MOPA charges may be apportioned in the ratio of Gross Generation Unit Auxiliary consumption for each of the Units. The incentive/ disincentive incurred by the station is to be apportioned in the ratio of unit wise deviations in actual generation vs. normative generation. The deviation can either be positive or negative) Under the Availability based tariff structure, three components of tariff are prescribed:

3.23
3.24
Capacity charge Energy charge (variable charge and FPA) Unscheduled interchange charge (receivables / payables)
17
3.25
The apportionment of the items of the revenue are to be done on the following basis:

Capacity Charge In the weighted average ratio of the capitalized cost of the units * availability of the units Energy charge - In the ratio of scheduled export of energy from the Units Unscheduled interchange (UI) charge - In the ratio of excess/ shortage over/ below scheduled generation. E.g. in case some of the Units have generated more than the declared generation and others Units have generated less, the power station would receive / pay from / to the pool. In such cases, an average UI rate per unit based on the actual charges payable / receivable should be worked out. The credit or debit would be given at this rate to the respective Units for the excess / less generation over the units scheduled generation.
3.26
The Rebate and LC charges shall be booked as finance charges and are to be apportioned in the ratio of unit- wise sales.
18
4. 00 INTERFACE OF COSTING SYSTEM 4.01The costs sheets and cost analysis sheets are to be generated from the system based on the information maintained in the underlying systems. The costing system should be fully interfaced with the existing systems to generate the costing reports. The physical data (other than those received from the fuel system) however would need to be fed into the costing module. 4.02 The interface of the Costing System with the other systems have been described below: Financial Accounting: The cost accounting system to be integrated with the Financial Accounting (including Payroll) system. The Financial Accounting system to act as the point of data capture for the cost accounting system. The various vouchers (CPV / CRV / BPV / BPV / JV) to have provision for entering the cost centre code. The employee cost and other data to be taken from the payroll module of the Financial Accounting system. Every employee shall be tracked department wise in the system or a ratio maybe fixed in consultation with the IE and O&M Deptt. Materials accounting: The Cost accounting system shall be integrated with the materials accounting system for capture of data relating to materials cost. The various stores vouchers (SIV / MRN etc.) to contain cost centre codes which to debit / credit upon issue of material pertaining to that cost centre Contracts accounting system: The contracts accounting system to provide the mapping of the work order to the Cost centre and the ratio of apportionment of the cost of the work order among the cost centres, if applicable On-line Plant Performance Monitoring: The cost accounting system to be integrated with the On-line Plant Performance Monitoring system. The system to capture the data relating to allocation of various costs among the units through this system. For example, the cost accounting system to obtain data relating to boiler running hours, Gross generation, auxiliary consumption, heat rate etc. from the On-line Performance Monitoring System. Alternatively, the cost accounting system to also allow for off line entry of this data at month end as only monthly entries are required to be input in the costing system ICMS: The cost accounting system to also be integrated with the integrated commercial management system for input of details of revenue. Alternatively, the cost accounting system to also allow for off line entry of this data at month end as only monthly entries are required to be input in the costing system
19
O&M budgeting system :The cost accounting system to be integrated with the O&M budgeting system. The system to provide the budgeted targets (physical / financial) for the month and up to the month for the year.
Reconciliation of cost accounting data with FAS 4.03 The information for the costing system shall be from the financial accounting system. However, in certain cases it may be essential to enter memorandum entries in the costing system directly. For e.g. depreciation, interest charges, share of CC expenses are to be provided in the costing system on a pro-rata basis every month, whereas the same may not have been accounted for in the financial accounting system every month. Thus, a reconciliation between the costing system and the financial accounting systems is to be carried out monthly. At the year-end, when the accounts are closed and the annual costing is processed, there should not be any difference between the two systems.
20
Annexure I
A 1.1 NTPC Station Particulars Monthly Cost and Revenue sheet For the month ended:
For the month Cross Actual Index

Rs. Paise per Unit
Year To date (YTD) Budgeted Standard Actual Budgeted Standard

Rs. Paise per Unit Rs. Paise per Unit Rs. Paise per Unit Rs. Paise per Unit Rs. Paise per Unit
FINANCIAL Fuel cost

Coal HSD LDO HFO Gas Naphtha Liquid Fuel Others Total fuel cost (1) R&M Cost SG+SG Aux. +Associated Systems TG+TG Aux. Associated Systems Other systems +
A 2.1
A 2.2
A 2.3
2
Total R&M cost Operation Cost SG+SG Aux. +Associated Systems TG+TG Aux. + Associated Systems (A 3.2) Other systems (A 3.3) Total operation cost (3) Administration Cost Administration cost Allocation from CC Total Administration cost Depreciation Interest Other Finance charges and provisions Total Cost Cost of generation (Total cost/ gross generation)
A 3.1
A 3.2
A 3.3 3
A 4.1
4 5 6 7
21

Rs. Paise per Unit

Cost of sales (Total cost/ ESO)
REVENUE
Two-part Tariff Fuel Recovery (Variable + FPA+ MOPA) Fixed Charges Incentives/ Disincentives ABT Tariff Capacity charge Energy charge [scheduled energy * (variable charges + FPA)] Unscheduled interchange charge [(Actual ESO scheduled energy) * UI rate] Incentives/ Disincentives Other Income Total Revenue
Fuel Contribution (Fuel recovery Fuel Cost)
Net profit / (Loss) (Total Revenue Total Cost)
PHYSICAL Gross Generation (MU) PLF (%) Auxiliary consumption (MU) Auxiliary consumption (%) Power consumption by
22

Rs. Paise per Unit

utilities (township, etc) (MU) Energy Sent Out (ESO) (MU) Declared capacity exbus MWH Normative Auxiliary Power consumption (APC) (%) Available capacity (MWH) [Declared capacity/ (1APC%)] Availability (%) [Available capacity (MWH)/ (installed capacity * no of hours in the time period)] Scheduled Energy Exbus (MU) PLF % for incentive purposes [Scheduled Energy/ (1APC%)]/ installed capacity Unscheduled Interchanges (MU) [ESO Scheduled Energy] Heat rate Specific Oil consumption GCV of oil Heat input from oil (Sp OC * GCV of oil) Oil Consumption Heat input from coal (Heat rate heat input from oil)
GCV of coal
Specific coal consumption (Heat input from coal/ GCV of coal) Coal consumption Note: The Report to be submitted by all sites monthly by the 5th of the subsequent month NTPC Form No A 1.2 Station Unit-wise Cost and Revenue sheet For the month ended:
23
Particulars
Unit 1 Cross Actual Index

Rs. Paise per Unit
Unit 2 Budgeted Standard Actual

Rs. Paise per Unit Rs. Paise per Unit Rs. Paise per Unit
Budgeted Standard
Rs. Paise per Unit Rs. Paise per Unit
FINANCIAL Fuel Cost

Coal HSD LDO HFO Gas Liquid Fuel Others
24
NTPC Form No A 1.2 Station Particulars
Unit-wise Cost and Revenue sheet For the month ended:

Rs. Paise per Unit 1

Budgeted Standard
Total fuel cost (1) R&M Cost SG+SG Aux. +Associated Systems TG+TG Aux. Associated Systems Other systems +
A 2.1
A 2.2
A 2.3
2
Total R&M cost Operation Cost SG+SG Aux. +Associated Systems TG+TG Aux. + Associated Systems (A 3.2) Other systems (A 3.3) Total operation cost (3) Administration Cost Administration cost Allocation from CC Total Administration cost Depreciation Interest Other Finance charges and provisions Total Costs Cost of generation (Total cost/ gross generation) Cost of sales (Total cost/ ESO)
A 3.1
A 3.2
A 3.3 3
A 4.1
4 5 6 7
REVENUE
Two-part Tariff Fuel Recovery (Variable + FPA+ MOPA)
25

Rs. Paise per Unit

Budgeted Standard
+ FPA+ MOPA) Fixed Charges Incentives/ Disincentives ABT Tariff Capacity charge Energy charge [scheduled energy * (variable charges + FPA)] Unscheduled interchange charge [(Actual ESO scheduled energy) * UI rate] Incentives/ Disincentives Other Income Total Revenue Fuel Contribution (Fuel recovery Fuel Cost)
Net profit / (Loss) (Total Revenue Total Cost)
PHYSICAL Gross Generation (MU) PLF (%) Auxiliary consumption (MU) Auxiliary consumption (%) Power consumption by utilities (townsip, etc) (MU) Energy Sent Out (ESO) (MU) {1- (2+5)] Declared capacity exbus MWH Normative Auxiliary
26

Rs. Paise per Unit

Budgeted Standard
Power consumption (APC) (%) Available capacity (MWH) [Declared capacity/ (1APC%)] Availability (%) [Available capacity (MWH)/ (installed capacity * no of hours in the time period)] Scheduled Energy Exbus (MU) PLF % for incentive purposes [Scheduled Energy/ (1APC%)]/ installed capacity Unscheduled Interchanges (MU) [ESO Scheduled Energy] Heat rate Specific Oil consumption GCV of oil Heat input from oil (Sp OC * GCV of oil) Oil Consumption Heat input from coal (Heat rate heat input from oil)
GCV of coal
Specific coal consumption (Heat input from coal/ GCV of coal) Coal consumption Note: The Report to be submitted by all sites monthly by the 5th of the subsequent month
27
NTPC A 1.3 Station Particulars
Cost and Revenue sheet Upto the month ended:
Form No
Unit 1 Cross Index
Actual
Rs. Paise per Unit
Budgeted
Rs. Paise per Unit
Standard
Rs. Paise per Unit
Unit 2 Actual
Rs. Paise per Unit
Budgeted
Rs. Paise per Unit
Standard
Rs. Paise per Unit
FINANCIAL Fuel Cost

Coal HSD LDO HFO Gas Liquid Fuel Others
29
Total fuel cost (1) R&M Cost SG+SG Aux. +Associated Systems
A 2.1
A 2.2
TG+TG Aux. + Associated Systems Other systems
A 2.3
2
Total R&M cost Operation Cost SG+SG Aux. +Associated Systems TG+TG Aux. + Associated Systems (A 3.2)
A 3.1
A 3.2
A 3.3 3
Other systems (A 3.3) Total operation cost (3) Administration Cost Administration cost Allocation from CC Total Administration cost Depreciation Interest Other Finance charges and provisions Total Costs Cost of generation (Total cost/ gross generation) Cost of sales (Total cost/ ESO) REVENUE
A 4.1
4 5 6 7
Two-part Tariff Fuel Recovery (Variable + FPA+ MOPA) Fixed Charges Incentives/ Disincentives ABT Tariff Capacity charge Energy charge [scheduled energy * (variable charges + FPA)] Unscheduled interchange charge [(Actual ESO scheduled energy) * UI rate] Incentives/ Disincentives Other Income Total Revenue Fuel Contribution
30
(Fuel recovery Fuel Cost) Net profit / (Loss) (Total Revenue Total Cost) PHYSICAL Gross Generation (MU) PLF (%) Auxiliary consumption (MU) Auxiliary consumption (%) Power consumption by utilities (townsip, etc) (MU) Energy Sent Out (ESO) (MU) {1- (2+5)] Declared capacity ex-bus MWH Normative Auxiliary Power consumption (APC) (%) Available capacity (MWH) [Declared capacity/ (1-APC%)] Availability (%) [Available capacity (MWH)/ (installed capacity * no of hours in the time period)] Scheduled Energy Ex-bus (MU) PLF % for incentive purposes [Scheduled Energy/ (1-APC%)]/ installed capacity Unscheduled Interchanges (MU) [ESO Scheduled Energy] Heat rate Specific Oil consumption GCV of oil Heat input from oil (Sp OC * GCV of oil) Oil Consumption Heat input from coal (Heat rate heat input from oil)
GCV of coal
Specific coal consumption (Heat input from coal/ GCV of coal) Coal consumption Note: The Report to be submitted by all sites monthly by the 5th of the subsequent month
31
Form A 2.1 NTPC Station : Pressure parts Valves Motors All sub-cost centres for SG Total (i) (ii) (iii) (iv) Total cost of repairs and maintenance SG / SG aux. Month : Rs. Unit I Unit II Unit X Month Bud. Month Bud. Month Bud.
Total Month
Bud.
YYY
YYY
YYY
YYY
YYY
YYY
XXX
XXX
For this report, cost shall be the sum of all departments (Mechanical, Electrical, C&I etc.) The total (YYY) R&M cost shall be carried forward to the respective Unit wise cost sheet i.e. A 1.2 The total (XXX) repair and maintenance cost shall be carried forward to the main cost sheet i.e. A 1.1 This report shall be also be generated for year till date
32
Form A 2.2 NTPC Station : Turbine Generator All sub-cost centres for TG Total (i) (ii) (iii) (iv) Total cost of repairs and maintenance TG / TG aux. Month : Rs. Unit I Unit II Unit X Month Bud. Month Bud. Month Bud.
Total Month
Bud.
YYY
YYY
YYY
YYY
YYY
YYY
XXX
XXX
33
NTPC Station : Fuel Oil system Compressed air system All cost centres Total (i) (ii) (iii) (iv)
Form A 2.3 Total cost of repairs and maintenance Other systems Month : Rs. Unit I Unit II Unit X Total Month Bud. Month Bud. Month Bud. Month Bud.
YYY
YYY
YYY
YYY
YYY
YYY
XXX
XXX
34
Form 3.1 NTPC Station : Pressure parts Valves Motors All sub-cost centres for SG Total (i) (ii) (iii) (iv) Total Operation Cost SG / SG aux. Month : Rs. Unit I Unit II Unit X Month Bud. Month Bud. Month Bud. Total Month
Bud.
YYY
YYY
YYY
YYY
YYY
YYY
XXX
XXX
For this report, cost shall be the cost incurred by Operation department The total (YYY) R&M cost shall be carried forward to the respective Unit wise cost sheet i.e. A 1.2 The total (XXX) repair and maintenance cost shall be carried forward to the main cost sheet i.e. A 1.1 This report shall be also be generated for year till date and paise per Unit
35
Form 3.2 NTPC Station : Turbine Generator All sub-cost centres for TG Total (i) (ii) (iii) (iv) Total Operation Cost TG / TG aux. Month : Rs. Unit I Unit II Unit X Month Bud. Month Bud. Month Bud. Total Month
Bud.
YYY
YYY
YYY
YYY
YYY
YYY
XXX
XXX
For this report, cost shall be the cost incurred by the Operation department The total (YYY) R&M cost shall be carried forward to the respective Unit wise cost sheet i.e. A 1.2 The total (XXX) repair and maintenance cost shall be carried forward to the main cost sheet i.e. A 1.1 This report shall be also be generated for year till date and paise per Unit
36
Form 3.3 NTPC Station : Fuel Oil system Compressed air system All cost centres (apart from SG / TG) Total (i) (ii) (iii) (iv) Total Operation Cost - Other systems Month : Rs. Unit I Unit II Unit X Month Bud. Month Bud. Month Bud. Total Month
Bud.
YYY
YYY
YYY
YYY
YYY
YYY
XXX
XXX
For this report, cost shall be the cost incurred by the Operation department The total (YYY) R&M cost shall be carried forward to the respective Unit wise cost sheet i.e. A 1.2 The total (XXX) repair and maintenance cost shall be carried forward to the main cost sheet i.e. A 1.1 This report shall be also be generated for year till date and paise per Unit
37
Form 4 NTPC Station : Account Heads Administration Cost For the Month ended : For the month Actual Budgeted (Rs. Lacs) Upto the month Actual Budgeted
Total (i)
XXX
XXX
XXX
XXX
The total (XXX) administration cost shall be carried forward to the main cost sheet i.e. A 1.1
38
Form 5 NTPC Station : Unit I Month Depreciation cost Plant building (A/c group 1609) Depreciation cost Other building (A/c group 1610) Depreciation cost MGR / Railway sidings(A/c group 1615 & 1616) Depreciation cost P &M (A/c group 1621) Depreciation cost Others (All other account groups) Total (i) (ii) (iii) Depreciation Cost Month : Unit II Bud. Month Bud. Rs. Unit X Month Bud. Total Month Bud.
YYY
YYY
YYY
YYY
YYY
YYY
XXX
XXX
The total (YYY) depreciation cost shall be carried forward to the respective Unit wise cost sheet i.e. A 1.2 The total (XXX) depreciation cost shall be carried forward to the main cost sheet i.e. A 1.1 This report shall be also be generated for year till date and paise per Unit
39
Form 6 NTPC Station : Interest Cost Term Loan (Account group 1501) Interest Cost Loans from Banks (Account group 1502) Interest Cost Foreign Currency (Account group 1504) Interest Cost Others (Account group all others relating to interest) Total (i) (ii) Interest Cost Month : Unit I Unit II Month Bud. Month Rs. Bud. Unit X Month Bud. Total Month Bud.
YYY
YYY
YYY
YYY
YYY
YYY
XXX
XXX
(iii)
The total (YYY) interest cost shall be carried forward to the respective Unit wise cost sheet i.e. A 1.2 The total (XXX) interest cost shall be carried forward to the main cost sheet i.e. A 1.1 This report shall be also be generated for year till date and paise per Unit
40
Form 7 NTPC Station : Commitment fees Agency Commission Total (i) (ii) YYY YYY YYY YYY YYY YYY XXX XXX Other Finance charges and provisions Month : Rs. Unit I Unit II Unit X Total Month Bud. Month Bud. Month Bud. Month
Bud.
(iii)
The total (YYY) other finance charges and provisions shall be carried forward to the respective Unit wise cost sheet i.e. A 1.2 The total (XXX) cost shall be carried forward to the main cost sheet i.e. A 1.1 This report shall be also be generated for year till date and paise per Unit
41
Form AR 1.1 NTPC Station : Cost Centre Code : Particulars PHYSICAL PARAMETRES Output Output 1 Output 2 FINANCIALS Employee Cost (Account group 1201, 1202, 1203, 1204, 1205, 1206) Repairs and maintenance Cost (Account group 1301, 1302, 1304, 1305) Material Cost Job Cost Others Operation Cost Chemicals Diesel Others Total (i) (ii) Generate this report for each cost centre and for year till date. The system shall have facility of grouping cost centre codes and generating report for a range of cost centre codes. E.g. all cost centres under the main code of SG/ TG, etc. Output and operation cost would be filled up where applicable Cost Centre wise cost analysis Month : For the month Actual Budgeted Upto the month Actual Budgeted
Variance
Variance
43
Form AR 1.2 NTPC Station : Major dept. wise cost of repairs and maintenance SG / SG aux. Month : Rs. Unit II Month Bud. Unit X Month Bud. Total Month Bud.
Unit I Month Bud. Department : Mechanical maintenance Department : Civil maintenance Department : Electrical maintenance
Department : Control and Instrumentation Total (i) Generate this report for year till date
44
Form AR 1.3 NTPC Station : Major dept. wise cost of repairs and maintenance TG / TG aux. Month : Rs. Unit II Month Bud. Unit X Month Bud. Total Month Bud.
45
Form AR 1.4 NTPC Station : Major dept. wise cost of repairs and maintenance Other Systems Month : Rs. Unit II Month Bud. Unit X Month Bud. Total Month Bud.
46
Form : AR 1.5 NTPC Station : Unit I Overhaul Breakdown maintenance Preventive maintenance Routine maintenance Reliability Exceptional Total Budgeted (i) (ii) Generate this report for year till date The system should have facility of generating this report cost centre wise as well as groups of cost centres Repairs and Maintenance Analysis report For Month of : Unit X Unit II Total (Rs.) Budgeted Variance
47
NTPC For Month of : Activity : Overhaul Cost centre 1 Cost centre 2 Cost centre 3 Cost centre 4
Form : AR 1.6 Repairs and Maintenance Analysis report Station : (Rs.) Mech maint. Elect. Maint. C&I maint. Civil Total
Cost centre X Total Budgeted Variance Note : Similar reports shall be generated for all the activites, i.e. 1. 2. 3. 4. 5. 6. I. Overhaul Breakdown maintenance Preventive Maintenance Routine maintenance Reliability Exceptional Similar reports shall be generated for all cost centres and sub-cost centres. The system should have facility of grouping / selecting a range of cost centres for report generation
48
Form AR 1.7 NTPC Station : Cost Centre wise O&M Report For Month of : (Rs.) Mech. Elect. C&I. Civilma Maint. maint. maint. maint. int. Total B A B A B A B A B A Operation B A Total B A
Turbo Generator Boiler CHP AHP Electricals Switchyard C&I Group Offsites Total
B = Budgeted A = Actual (i) The system should have facility of grouping / selecting a range of cost centres for report generation
49
Form AR 1.8 NTPC Station : Fuel Cost Employee Cost (Account group 1201, 1202, 1203, 1204, 1205, 1206) Repairs and maintenance Cost (Account group 1301, 1302, 1304, 1305) Material Cost Job Cost Others Administration Costs (Account Group 1402 1451) Total This report shall be also be generated for year till date Account head wise cost analysis Month : Unit I Unit II Month Bud. Month Bud. Rs. Unit X Month Bud. Total Month Bud.
50
PROFORMA A Name of the company : Name and address of the Plant : Statement showing the cost of utilities like (1) Water collection, (2) Water treatment, (3) Ash handling plant, (4) Effluent treatment, etc. : I Quantitative Information : Serial Particulars Number A1. Installed capacity 2. Quantity produced 3. Capacity utilization % 4. Quantity re-circulated 5. Quantity purchased, if any 6. Self-consumption including other losses (to be specified) 7. Net units consumed B1. Gross fixed assets at the end of the year/period (Rs./Lakhs) 2. Net fixed assets at the end of the year/period (Rs./Lakhs) 3. Date of commissioning Unit Current Year Previous Year
II Cost Information : Serial Particulars Number
Quantity
Rate (Rupees per unit)
Amount (Rupees) Current year (Rupees)
Cost per unit Previous year (Rupees)
A1.
Materials (specify) (a) (b) Utilities (specify) (a) (b) Wages and Salaries Consumable stores and spares Repairs and maintenance Depreciation
2.
3. 4. 5. 6.
51

National Thermal Power Corporation Limited: November 2002

Uploaded by

Copyright:

Available Formats

National Thermal Power Corporation Limited: November 2002

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

National Thermal Power Corporation Limited: November 2002

Uploaded by

Copyright:

Available Formats

What are the objectives of NTPC's cost accounting system?

What are the objectives of NTPC's cost accounting system?

What are the different types of cost sheets/reports that will be generated?

What are the different types of cost sheets/reports that will be generated?

NATIONAL THERMAL POWER CORPORATION LIMITED

MANUAL ON COST ACCOUNTING

A. F. FERGUSON & Co. NEW DELHI

Manual on Cost Accounting

Manual on Cost Accounting

Manual on Cost Accounting

Manual on Cost Accounting

The formats of the main cost sheet are provided in Annexure.

Manual on Cost Accounting

Manual on Cost Accounting

Manual on Cost Accounting

Manual on Cost Accounting

Manual on Cost Accounting

Manual on Cost Accounting

Manual on Cost Accounting

Manual on Cost Accounting

APPORTIONMENT OF COSTS MORE THAN ONE STAGE AT THE SAME LOCATION

Manual on Cost Accounting

ALLOCATION / APPORTIONMENT COST OF COSTS CENTRES TO THE UNITS

Manual on Cost Accounting

3.20 Sl. No. 1 2 3 4

Ash Handling (AHP)

Manual on Cost Accounting

Cost Centre Code 410 420

Description Compressed air systems Liquid Fuel system

430 440 446 -

Air conditioning ventilation plant Water treatment plant

Cooling water system

470 480 500 510 520 530 540 550 560

Manual on Cost Accounting

Manual on Cost Accounting

Manual on Cost Accounting

Manual on Cost Accounting

Manual on Cost Accounting

For the month Cross Actual Index

Year To date (YTD) Budgeted Standard Actual Budgeted Standard

FINANCIAL Fuel cost

Manual on Cost Accounting

For the month Cross Actual Index

Year To date (YTD) Budgeted Standard Actual Budgeted Standard

Cost of sales (Total cost/ ESO)

Fuel Contribution (Fuel recovery Fuel Cost)

Net profit / (Loss) (Total Revenue Total Cost)

Manual on Cost Accounting

For the month Cross Actual Index

Year To date (YTD) Budgeted Standard Actual Budgeted Standard

Manual on Cost Accounting

Unit 1 Cross Actual Index

Unit 2 Budgeted Standard Actual

FINANCIAL Fuel Cost

Manual on Cost Accounting

NTPC Form No A 1.2 Station Particulars

Unit-wise Cost and Revenue sheet For the month ended:

Unit 1 Cross Actual Index