Internal Control Measures Taken With Respect To The Various Aspects Of Business
An organization deals with different departments where internal control needs to be applied. One such concern is with the sales and debtor’s division and the initiated measures include
- Each and every document related to this field like the invoices, challans or so should be immediately numbered and any case of lost leaflets should be immediately investigated.
- All the sectors including the despatch team, sales and invoicing department and their functions are to be readily coordinated.
- All the delivery challan forms should be thoroughly examined by the transporter before dispatch.
- Further, this form shall be also checked with the corresponding client purchase order before actually delivering it and must also be recorded in the respective dispatch sheet. In return, the customers should also acknowledge as the goods accepted as soon as they receive the product.
- All the deliveries should be followed with a safety invoice that should reach the customer within a reasonable time.
- The rates of the products printed on the invoice must be on track with the standard price and if in case, any casual reductions are done, then this must be duly authorized.
- Also, the returned goods must be noted down and the related credit papers should be attached to the invoice sheet.
- Even the part delivery cases must also be listed down.
- The record of the sales ledger should be in balance with the control account of the company.
- All the cheque leaves received via post are to be duly entered in the account transaction book and the bearer cheque must be entitled as ‘A/c payee only’.
- Further, the transaction receipts are to be examined along with the corresponding pay-in-slip along with the savings book.
- The money received or collected should match the invoice offered to the customers.
- The duty of segregating the respective sales department must be confined to the person dealing with the transaction recording sector and the money extracting sector.
- Crypto Code review states that the file of sales ledger should be checked periodically with the account controlling records by the independent company officials.
- In the case of any missed-out balances in the company account, this should be followed up by a concerned staff to comfort the balance issue. This process of evaluating the old accounts is referred to as the aging
- Transaction statements have to be regularly sent to the respective customers and all the settling items should be definitely followed up.
- And finally, the credit limits must be thoroughly examined before accepting the orders.