Professional Accounting package

Anmol Poudel
Course Content
➢ Company Registration / Pan Registration/Letter writing
/ Billing Software
➢ Accounting & Inventory
➢ Inventory & Manufacturing
➢ Payroll Management
➢ Taxation
➢ Reporting
➢ Management setting of Accounting software

2
Accounting & Inventory
● Introduction about Accounting, Inventory, Payroll, Manufacturing & Taxes
● Introduction to accounting and its terms
● Aspects of Transaction
● Creating Journal entries and passing it into the ledger & Voucher

3
 Classification of accounts

Current Direct

Assets Liabilities Income Expense

Non
Indirect
Current

4
Assignment on classification of accounts

1. Solve Question SET 2

5
What is accounting & Its Equation

The process or work of keeping financial accounts.

Accounting Equation

Assets = Capital + Remark

Liabilities

+ 50000 = + 50000 Capital Receive

+ 5000 = + 5000 Cash Receive

- 6000 = - 6000 Capital Withdraw

49000 = 49000
6
 Book keeping system

Single Entry mode Double Entry mode

Traditional approach Modern approach

Debit Credit
Real Nominal Personal Asset Increase Decrease

Liabilities Decrease Increase

Income Decrease Increase

Expense Increase Decrease

7
Double Entry System Approach
This concept assumes that every transaction has a dual effect, i.e. it affects two accounts in their
respective opposite sides.
For example, goods purchased for cash has two aspects which are
Creating a dual aspect (i) Giving of cash & (ii) Receiving of goods.

DR CR Question for Dual Aspect

Ram started business with Rs. 5,00,000 in Cash

Purchase building for Rs. 50,00,000 in credit from Ram

Purchase Computer (As good) for Rs. 10,000 in credit from

shyam

Paid to creditor Rs. 9,500 in full and final settlement

8
Let’s analyze some more business transactions in terms of their dual aspect

1. Capital brought in by the owner of the business The two aspects in this transaction are :
a. Receipt of cash
b. Increase in Capital (owners equity)
2. Purchase of machinery by cheque The two aspects in the transaction are
a. Reduction in Bank Balance
b. Owning of Machinery
3. Goods sold for cash The two aspects are
a. Receipt of cash
b. Delivery of goods to the customer or Party a/c
4. Rent paid in cash to the landlord The two aspects are
a. Payment of cash
b. Rent (Expenses incurred).

9
Assignment on dual aspect

S.N Transaction 1st aspect 2nd aspect

1 Owner brings cash in business
2 Goods purchased for cash
3 Goods sold for cash
4 Furniture purchased for cash
5 Received cash from Sharma
6 Purchased machine from Rama on credit
7 Paid to Rama
8 Salaries Paid
9 Rent Paid
10 Rent Received

Solve it Question set 3

10
Accounting terms
Business transaction: A business transaction is “The movement of money and money’s worth from one person to another”. Or
exchange of values between two parties is also known as “Business Transaction”.

Purchase: A purchase means goods purchased by a businessman from suppliers.

Sales: Sales is goods sold by a businessman to his customers.

Purchase Return or Rejection in or Outward Invoice: Purchase return means the return of the full or a part of goods purchased
by the businessman to his suppliers.

Sales Return or Rejection out or Inward Invoice: Sales return means the return of the full or a part of the goods sold by the
customer to the businessman.

Assets: Assets are the things and properties possessed by a businessman not for resale but for the use in the business.

Liabilities: All the amounts payable by a business concern to outsiders are called liabilities.

Capital: Capital is the amount invested for starting a business by a person.

11
 Accounting terms
Debtors: Debtor is the person who owes amounts to the businessman.

Creditor: Creditor is the person to whom amounts are owed by the businessman.

Debit: The receiving aspect of a transaction is called debit or Dr.

Credit: The giving aspect of a transaction is called credit or Cr.

Drawings: Drawings are the amounts withdrawn (taken back) by the businessman from his business for his personal, private and
domestic purpose. Drawings may be made in the form cash, goods and assets of the business.

Receipts: It is a document issued by the receiver of cash to the giver of cash acknowledging the cash received voucher.

Account: Account is a summarized record of all the transactions relating to every person, everything or property and every type of
service.

Ledger: The book of final entry where accounts lie.

12
 Accounting terms
Journal entries: A daily record of transaction.

Trial Balance: It is a statement of all the ledger account balances prepared at the end of particular period to verify the accuracy of
the entries made in books of accounts.

Profit: Excess of credit side over debit side.

Profit and loss account: It is prepared to ascertain actual profit or loss of the business.

Balance Sheet: To ascertain the financial position of the business. It is a statement of assets and liabilities.

Current asset: It is converted into cash within a year.Ex. Bills receivable.

Direct expenses: These are the expenses which are directly related to manufacturing of goods. Ex. Wages, factory rent, heating,
lighting etc

Indirect expense: These are the expenses which are indirectly related to manufacturing of goods. Ex. Salary, rent, stationery,
advertisement, printing

13
 Accounting terms
Depreciation: Decrease the value of the asset.

Sundry debtors: The person who is the receiver or customer

Sundry creditors: The person who gives or supplier.

Expenses Outstanding or Unpaid expenses or Expenses due: Expenditure incurred during current year but the amount on which
is not yet paid. (Added to the expenditure on the debit side and entered on the liability side.)

Income received in advance or Income received but not earned: Income received during the current year but not earned or a part
of which relates to the next year. (Deducted from the concerned income on the credit side and entered on the liability side)

Prepaid advance or Expenses or Prepaid expenses: Expenditure paid during current year but not incurred or a part of which
relates to the next year is called expenditure prepaid. (Deducted from the concerned expenditure on the debit side and entered on the
assets side)

Income outstanding or income earned but not received or Income accrued: Income outstanding means income earned during
the current year but the amount on which is not yet received (added to the concerned income on the credit side and entered on the
asset side)

14
Trial Balance
A trial balance is done to check that the debit and credit column totals of the general ledger accounts match each other,
which helps spot any accounting errors. If the totals don't match, a missing debit or credit entry, or an error in copying over
from the general ledger account may be the cause.

Particular L.F Debit Credit

Cash A.C 13 ˟˟˟˟˟˟ ˟˟˟˟˟˟

Capital A.C 2 ˟˟˟˟˟˟ ˟˟˟˟˟˟

Drawing A.C 5 ˟˟˟˟˟˟ ˟˟˟˟˟˟

Purchase A.C 12 ˟˟˟˟˟˟ ˟˟˟˟˟˟

Sales A.C 15 ˟˟˟˟˟˟ ˟˟˟˟˟˟

Total ˟˟˟˟˟˟ ˟˟˟˟˟˟

15
P/L Account
An income statement or profit and loss account is one of the financial statements of a company and shows the company's revenues and expenses
during a particular period. It indicates how the revenues are transformed into the net income or net profit

Particular Amount Particular Amount

TO Opening Stock ˟˟˟˟˟˟ BY Sales ˟˟˟˟˟˟

TO Purchase ˟˟˟˟˟˟ BY Purchase Return ˟˟˟˟˟˟

TO Sales Return ˟˟˟˟˟˟ BY Closing Stock ˟˟˟˟˟˟

TO Direct Expense ˟˟˟˟˟˟ BY Direct Income ˟˟˟˟˟˟

Gross Profit ˟˟˟˟˟˟ Gross Loss ˟˟˟˟˟˟

TO Gross Loss ˟˟˟˟˟˟ BY Gross Profit ˟˟˟˟˟˟

TO Indirect Expense ˟˟˟˟˟˟ BY Indirect Income ˟˟˟˟˟˟

Net Profit ˟˟˟˟˟˟ Net Loss ˟˟˟˟˟˟

16
Balance Sheet
A financial statement that reports a company's assets, liabilities, and shareholder equity at a specific point in time. Balance sheets
provide the basis for computing rates of return for investors and evaluating a company's financial structure

Liabilities Amount Assets Amount

Current Liabilities ˟˟˟˟˟˟ Current Assets ˟˟˟˟˟˟

Loan ˟˟˟˟˟˟ Fixed Assets ˟˟˟˟˟˟

Sundry Creditors ˟˟˟˟˟˟ Sundry Debtors ˟˟˟˟˟˟

Capital ˟˟˟˟˟˟ Closing Stock ˟˟˟˟˟˟

Expense Outstanding ˟˟˟˟˟˟ Income Outstanding ˟˟˟˟˟˟

Gross Profit ˟˟˟˟˟˟ Gross Loss ˟˟˟˟˟˟

17
Interview Question set on Accounting terms
1. accounting term please refer to the Question SET 4
2. Question SET 5

18
Real Time accounting system

1. Slides & Example

19
Company Registration

1. Company Registrar office ( Private, Public, non-profit etc)

a. Visit Website Online Company Registration after approval of name
b. Visit near Company registrar office with documents. Get full details on clicking by this link
2. Banijya & Gharelu
a. Visit this website for more details with banijya Registration https://doc.gov.np/
i. For Big Industry, Trading Company & Importers.
b. Visit this website for details with Gharelu Registration http://dcsi.gov.np/
i. For Small industry & Others
3. Municipality Registration
a. Must has to be registered in Municipality its compulsory for registered company in 1 & 2
b. Also you can register and run company by registration only in municipality 20
PAN & VAT Registration

1. After registration of company you can get PAN & VAT registration
2. Visit Near Tax office for registration with documents.
3. For documents visit https://ird.gov.np/
4. There are several Rules & Regulation for Getting PAN & VAT. All rules & Process will be discuss
on the taxation topic

21
Assignment on Registration

List out all document needed

1. Document Needed for Company Registration

2. Document needed for Banijya
3. Document needed for Gharelu
4. Document needed for PAN & VAT Registration (For Personal & Company)

22
Creating Documents

1. You can create or download the document from website or using CHATGPT an AI tools.
2. Creating a house rent agreement
3. Creating Document for Company Registrar
a. Niyamawali Patra
b. Prabandha Patra
c. Minute
4. Company Policy writing like Code of Conduct etc

23
Assignment

1. Print & Stitch all the document need to register a company

2. Print & Stitch all the document need to Register in PAN or IRD
3. Create a code of conduct must follow by accountant
4. Write a minute meeting on the topics of “Marketing discuss on the admission of new students”
5. Create a employee agreement letter
6. Rules to follow while facing to interview
7. Write a letter for “Paicho pasal” as you want to join them as an accountant

24
Billing software

1. How to choose a billing software https://www.ird.gov.np/public/pdf/834857563.pdf

2. Billing software Act of nepal Government https://ird.gov.np/public/pdf/1491134985.pdf
3. Process of Registration of Billing software for your organization
4. Installing & Setting up different type of software like Tally, Busy, Swatik
5. Installing Crack software with Nepali Miti
6. Offline based software & Online Based software

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Managing company in different type of software

1. Creating a new Company

2. Modify the company
3. Deleting the un-necessary company
4. Backup & Restore the company
5. Selecting for working company
6. Shut down the unnecessary Company

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Assignment on Company details

1. Create a new company with name “HUB IT TRAINING” & “HUB IT SOLUTION” which
fiscal year of 2078.
2. Shut or Close the company “HUB IT SOLUTION” from list.
3. Edit company Name HUB IT TRAINING to HUB IT TRAINING & SOLUTION and change
the fiscal year to latest fiscal year.
4. Backup the company in google drive, Pendrive and another drive in your computer.
5. Delete the company HUB IT TRAINING & SOLUTION & Restore it.
6. Create a new year fiscal year.
7. Interview Question set Question SET 1

27
Managing company in different type of software

1. About Splitting & User Security Control

2. Software Password
3. Creating New fiscal Year

28
Assignment on Fiscal Year, Splitting Company, User control

1. Create a new year fiscal year.

2. Interview Question set Question SET 1

29
Accounting Master

Key Aspect on master:

1. Group : Manage Ledger on order

2. Ledger : Use to record the transaction
3. Cost Center & Category: Department or function within an
organization that does not directly add to profit but still costs the
organization money to operate.
4. Budget : Spending plan based on income and expenses
5. Scenarios : Management tool used to address unexpected
transaction that did not affect report data
6. Currencies : Maintaining multiple currency
7. Voucher types : Creating custom voucher
Assignment on Accounting Master
Master on Inventory

➔ Stock item
➔ Stock group
➔ Stock Categories
➔ Unit Single unit & Multiple unit
➔ Voucher type
➔ Price list
➔ Multi currency
Accounting Voucher
Key aspect of accounting voucher Extra Applied on Voucher

➔ Payment ➔ Memorandum
➔ Receipt ➔ Optional
➔ Contra ➔ Post Dated
➔ Journal ➔ Rev journal
➔ Sales ➔ As Invoice
➔ Purchase ➔ As voucher
➔ Debit note
➔ Credit note
 Extra Vouchers

Optional voucher allows voucher as optional. When a voucher is marked as optional, it

doesn’t affect book of accounts. To activate optional voucher, first enable optional voucher
by pressing f11 then go to voucher, you will see optional voucher.

Post dated voucher refers to transaction that are recorded in advance with future date. The
main purpose is to allow business to plan, prepare and record transaction that are expected
to occur in future.

Memos are informational and don’t affect the financial figures or accounts directly. They
are for internal reference and documentation.

Reverse journal is a feature that allows you to automatically create the reverse of a
previously recorded journal entry. It simplifies the process of correcting entries or handling
adjustments.
 Voucher processing

Cancel voucher is used to void or nullify a previously entered voucher without altering
the accounting records. This action will create a reverse entry. To cancel the voucher in the
respective voucher entry screen, press “Alt + X” .

Delete voucher is used to remove voucher or ledgers permanently. While modifying or

deleting vouchers to maintain accurate financial records, we have always exercise caution.
To delete voucher or ledger, press “Alt + D”.

Duplicate involves creating an identical copy of an existing transaction. This is helpful

when you have similar transaction and you want to save time by replicating the details of
the original voucher.

Add voucher involves action of entering a new voucher or transaction after

According to nepal IRD we cannot delete
the selecting voucher or transaction numbers.
the voucher after saved and print
But we can cancel the voucher
Insert voucher involves action of entering a new voucher or transaction
before the selecting voucher or transaction numbers.
Terms on accounting

➔ Outstanding, Method of adjustments,Due days ➔ Multi pricing management

➔ Debit & Credit Note ➔ Multi Currency Management
➔ Actual & billed Quantity ➔ Bank Reconciliation Statement
➔ Fixed Assets Management ➔ Counter sale / Point of sales
➔ Marked Changed Voucher ➔ Bank EMI
➔ Multi unit ➔ Interest calculation
➔ Bill wise and item wise discount ➔ Item wise TAX, Tax Exempted Billing
➔ Opening/ Closing Ledger & Stock ➔ Pragyapan Patra
➔ Petty cash Management ➔ Scenario management
➔ Budget management ➔ Year end adjustments
About Outstanding, Method of adjustments,Due days or Credit period

It refers to financial obligation that has not fulfilled. In other words, it is financial transaction or commitment that are
pending or unsolved within a specific time period.

Some Key Aspects:

1. Bill wise Details

2. Outstanding Receivable
3. Outstanding Payable
Method of adjustments

Some Key Aspects:

1. On Account : This method is used when we want to adjust a

receipt or payment without referring to a specific invoice.

2. New reference : This method is used when we want to create a

new reference while adjusting a receipt or payment.

3. Against reference :This method is used when we want to adjust

a receipt or payment against specific invoice.

4. Advance: This method is used when we make or receive an

advance payment and want to adjust it against future invoices.
Debit Note & Credit note

➔ Debit Note : It represents a document issued by a buyer to inform seller about an ➔ Supplier information
increase in amount payable. ➔ Date of debit note and debit note number
➔ Original invoice details and reason for issuing
Rectifying various discrepancies such as :
debit note
◆ Purchase return ➔ Details of good and services
◆ OverBilling ➔ Debited amount
◆ Extra charges ➔ Terms and condition
◆ Incorrect invoicing

➔ Customer information
➔ Date of credit note and debit note number
➔ Credit note : It represents a document issued by a seller to inform buyer about an ➔ Original invoice details and reason for issuing
decrease in amount payable.
credit note
➔ Details of good and services
Rectify various discrepancies such as :
➔ Credited amount
◆ Sales return ➔ Terms and conditions
◆ Overbilling
◆ Extra charges
◆ Incorrect invoicing.
 Actual quantity and Billed quantity

Actual quantity refers to the real quantity or physical quantity of goods

or services delivered or received.

For eg: we order 100 units of product from supplier, and they
deliver 95 units due to shortage. In this case, actual quantity received is
95 units.

Billed quantity refers to quantity mentioned in invoices or billed issued

for goods or services.

For eg: In above example, even though supplier delivered only

95 units, they might issue an invoices for the full 100 units. The billed
quantity in this cases is 100 units.

Note: During reconciliation, both parties may need to communicate

and adjust the billed quantity based on actual quantity received or
delivered.
 Fixed Assets Management

Fixed assets management is the process of recording and

tracking long term assets over their entire lifecycle, from
acquisition to disposal. Company must maintain accurate records
to ensure compliance with accounting standards and reporting
requirements.

Its includes
➔ Acquisition
➔ Maintenance
➔ Depreciation
➔ Revaluation
➔ Disposal
 Marked Changed Voucher

➔ Marked Changed Voucher refers to a feature provided

with the understanding that the client will not modify
the vouchers after data is shared with you.

➔ If client updates their data after sharing, the changes

will be overwritten when the marked vouchers are
imported.

➔ It includes all the vouchers that are altered, added, or

canceled. Deleted vouchers are not a part of the list.

Note: CA or Auditor often needs to modify his clients' books of accounts.

However this may lead to confusion for the client.
 Multi Unit

Multi Unit features allows businesses to manage inventory and

transactions involving multiple unit of measurement for the same
item. This feature is useful in scenarios where items are bought
or sold in different units and conversion between these units are
necessary.
 Bill wise and Item wise Discount
Bill wise Discount is a reduction in overall invoice amount that is applied
to the entire transaction or bill.

Item wise Discount refers to a reduction in the selling price that is applied
especially to individual items within a transaction.

Some Condition where bill wise and item wise discount is applied :
➔ Bulk purchases
➔ Customer loyalty programs
➔ Promotional offers
➔ Negotiated agreements
➔ Seasonal sales
➔ Customized pricing agreements
➔ Cross Selling and Up-Selling Scenarios
 Scenario Management

It allows users to create and view multiple accounting entries

without affecting the actual financial records. It is useful feature
for analyzing and planning financial transaction before
committing them to main accounts. It is tool for “what-if”
analysis and planning before committing changes to books.

Petty cash
It is a small amount of cash kept on hand by
business for minor expenses. It is used for small,everyday
transactions that are impractical to process through regular
accounting procedures.
Year End Adjustments

Year end adjustments are financial changes made to records

at the close of the fiscal years to ensure accuracy and compliance.

Year end adjustments are :

➔ Outstanding expenses
➔ Prepaid expenses
➔ Accrued income
➔ Unearned income
➔ Drawing adjustment
➔ Net profit transfer
➔ Provision for doubtful debt
➔ Difference in opening balance
 Budget Management

Budget is an estimation of revenue and expenses over a specified future

period of time and is eventually compiled and re-evaluated on a periodical
basis.

Types of Budget
➔ Administrative Expenses Budget
➔ Selling and Distribution Expenses Budget
➔ Capital Expenditure Budget
➔ Production Cost Budget
➔ Purchase/Sales Budget
➔ Labour Budget
➔ Cash Budget
➔ Debtor Budget

On Closing Balance: To Monitor the balance of accounts and not the

transactions, especially Balance Sheets items like assets and liabilities.

On Net Transactions: To compare transactions against budgets, especially

revenue income and expense, On Net Transaction can be Selected.
 Bank EMI

Bank EMI is a fixed payment amount made by a borrower to a bank or

financial institution at specified date each calendar month. EMI are
commonly used to repay loans such as home loans, car loans or personal
loans and typically consist of both principal and interest calculation.
 Multi Pricing Management

Multi Pricing Management refers to the ability to set and manage

multiple price levels for items and services. This feature allows business
to establish different selling price based on various criteria such as
customer categories, regions, or quantities.
 Multi Currency Management

➔ Capability of handling transactions and maintaining accounts in multiple

currencies.

➔ It is beneficial for business engaged in global trade or those that conduct

transactions in currencies other than their local currency.

Note: According to IRD, all the transaction shall be denominated in home

currency. If any or all transaction involved in foreign currency then
foreign currency shall be denominated in home currency.
 Bank Reconciliation Statement

Bank Reconciliation Statements is a process that explains the difference

on a specified date between bank balance shown on organization bank
statement as supplied by bank and corresponding amount shown in the
organization’s own accounting records.

Reason for difference in balances of cashbook and passbook

➔ Cheques issued by bank but not yet received for payment
➔ Cheques paid into bank but not yet collected
➔ Cheques paid into bank for collection but dishonoured by bank
➔ Directly deposit into bank by customers
➔ Directly debits made by bank on behalf of customers
➔ Directly payment made by by bank on behalf of customers
➔ Interest and dividends collected by bank
 Counter Sale and Point of Sale

Counter Sale refers to transaction that takes places directly at physical

sales counter or location. It involves face to face interaction between
customers and sales staff at counter.

Point of sales refers to transaction that involves both physical and digital
platforms. It includes traditional cash registers, computerized system and
online transaction through websites or mobiles apps.

To enable point of sales(Tally erp 9),

● Go to masters and create voucher for point of sales
● Enable POS invoicing
In tally prime
Above two steps are same and additional steps
is you have to add mode of payment in name of class
Interest Calculation

Transaction by transaction
It refers to method of calculating interest on
overdue payment or outstanding amount for each individual
transaction separately Instead of all pending transaction
Terms on Inventory

➔ Godown Management ➔ Batch Wise Details

➔ Purchase Order and Sales Order ➔ Physical Stock Verification
➔ Receipt Note and Delivery Note ➔ Stock Valuation
➔ Rejection Inwards and Outwards ➔ Manufacturing Management
➔ Job Order Processing ➔ Ageing Analysis
➔ Reorder Level ➔ Movement Analysis
➔ Standard Rates
 Godown Management

Godown Management involves the efficient handling and supervision of

warehouse or storage facilities where goods or inventory are kept.

It manage stock movement, transfers and stock keeping units across multiple
physical location efficiently.

Benefits of Godown Management

➔ Proper Space Utilization
➔ Faster Order fulfillment
➔ Optimized Inventory Levels etc
➔ Time Management
 Purchase Order and Sales Order

Purchase Order
It is a commercial document issued by a buyer to a seller. It outlines
the types, quantities and agreed prices for product or services that buyer intends to
purchase. Once seller accepted then it serves as legal document between buyer and
supplier.

Sales Order
It is a document issued by a seller to confirm a buyer’s purchase
request. It details the product or services the buyer has agreed to purchase including
quantities and prices. It serves as a basis for the creation of invoices.
 Receipt Note and Delivery Note

Receipt Note
It is a document generated to acknowledge the receipt of
goods from a supplier. It helps in recording the incoming inventory
accurately and facilitate reconciliation with purchase orders.

Delivery Note
It is a document issued by a seller to accompany the
delivery of goods to a buyer. It serves as proof of delivery and help in
ensuring that the correct items has been received by buyer.

Rejection Outwards
It is passed to record the rejected goods in purchase items.
This is a pure inventory voucher.

Rejection Inwards
It is passed to record rejected goods in sales items. This is a pure
inventory.

Note : Rejection Inwards and Outwards are passed when bills were not
issued but goods should be returned
 Job Order Processing

Job Order Processing

It is the process of taking an order to manufacture or
process goods as per prescription of the client by utilizing the material
supplied by the client or purchased on behalf of the client and charging him
for services provided as job work or sub contract.

Job Order can be classified into

➔ Job Work Out Order
➔ Job Work In Order

Purchase Order from

Identify Job Worker Rise Job Work Order
Customer

Finished Goods received Deliver Raw Material to Job

Make Payment to Job Worker
from Job Worker Worker
 Job Order Processing

Job Work Out Order is an order placed by the principal to manufacture or

process goods as per the prescription given to Job Worker.

Job Work In Order is an order received by the job worker to manufacture or

process goods as per prescription given by the principal.

Material In
It refers to the recording of materials received specifically for a
particular job or project.

Material Out
It refers to the issuance of materials from inventory for the
purpose of completing a specific job or project.
 Reorder Level

Reorder level is the level on reaching which an order has to be placed for
stock items.

Minimum Level is the lowest quantity of an item where we can have in

stock and still meet customer demand.

Maximum Level is highest quantity of an item where we can have in

stock and shouldn't exceeded under normal circumstances.

Economic Order Quantity is the order quantity that minimizes the total
holdings costs and ordering costs in inventory management..
 Standard Rates

Standard Rates refers to predetermined or fixed values assigned to

various financial elements such as costs and prices within a business. It
serves as benchmarks or reference points for financial management, aiding
in cost control, performance evaluation, and strategic decision-making
within a business. These rates represent the cost or selling price of the stock
items for accurate financial recording and reporting.

Notes: Standard Rates is used to set prices based on stock

items and Price Level is used to set prices based on types of
customers
 Batch Wise Details

Batch wise details refers to the ability to track and manage inventory items
based on batches or production lots. Unique batch number is assigned to
each group of items manufactured or purchased together. With the help of
batch number, we can monitor movement, expiry dates and other specific
attributes of each batch ensuring better inventory control and traceability.
 Physical Stock Verification

Physical Stock Verification refers to process of physically counting and

reconciling the actual inventory present in warehouse or godown with
inventory records maintained in the accounting software or accounts books.

Reason for conducting Physical Stock Verification

➔ Accuracy
➔ Fraud Prevention
➔ Financial Reporting
➔ Compliance
➔ Decision Making
 Stock Valuation

Stock valuation refers to the process of determining the monetary value of

inventory held by business at a specified point of time. It involves
assigning a cost to each item in the inventory based on the method chosen
by the business.

Reason for using Stock Valuation

➔ Financial Reporting
➔ Cost of Goods Sold (COGS)
➔ Taxation
➔ Strategic Decision Making
 Manufacturing Management

Bills of materials (BOM) refers to a structured lists of raw materials,

components, and their quantities required to manufacture a finished
products. It helps in planning and managing the production process by
providing a clear outline of materials needed for each product.

It helps business manage their inventory and production efficiently.

It calculates effective units costs for each products.

Ageing Analysis and Movement Analysis

Ageing Analysis refers to the process of analysing the age of

outstanding receivables or payables. It helps business to monitor
and manage their cash flow effectively by identifying overdue
payment or receivables, following up with customers or vendors
and taking appropriate action to mitigate any potential financial
risks.

Movement Analysis refers to process of analysing the movement

or flow of inventory items within the organization.
It helps in finding out the slow-moving items which causes
blockages in the flow of the working capital of the organizations.
When running a business, it is important for business owners to
practise a periodic inventory analysis to have better inventory
control.
 Payroll Management

Payroll management refers to handling everything related to paying

employees. This includes calculating how much money employees should
get paid based on their work hours or salaries, deducting taxes and other
expenses and making sure everyone gets paid accurately and on time.
 Payroll Management

Payroll Units : It refers to a unit of measurement based on Name Type Symbol

which pay head are calculated.

It can be classified into

Hours Simple Hrs
➔ Simple Payroll Units
➔ Compound Payroll Units Minutes Simple Mins

Hrs of 60 mins Compound Hrs of 60 mins

 Payroll Management

Attendance/ Production Types represents the basic units that is

used to compute employees’ pay and to track and represent data on
productivity

List of Attendance Types

➔ Attendance / Leave with Pay
➔ Leave without Pay
➔ Production
➔ User Defined Calendar Type
 Payroll Management

Pay Heads represents different component of an employee’s

salary or wages.

Component in Pay Heads

➔ Basic Salary
➔ House Rent Allowance (HRA)
➔ Dearness Allowance (DA)
➔ Provident Fund (PF)
➔ Bonus
➔ Overtime
➔ Medical Allowance etc.
 Payroll Management

Salary Structure
➔ Gross Salary : Amount paid to an employee
before any deductions
➔ Net Salary : Amount paid to an employee after
deduction and withholding tax
➔ Cost to Company (CTC) : Total cost incurred
by company for employing an individual's.
Payroll Reporting

Pay Slip : A Pay Slip is a document issued to an employee that lists each component of earnings and deductions, and the net amount
paid to an employee for a given pay period.
Pay Slip can be
➔ Single pay slip for each employee
➔ Multi payslip for selected employee or all employee

Payment Advice : The Payment Advice is used to generate Payment Advice / Bank Transfer letters to transfer Salary Amount from a
specific bank account to the respective bank accounts of the employees based on the Salary Payment voucher.