Cash Management ‘As-Is’

Contents
Master Data...............................................................................................................................................3
1.10 Master data input for Bank book open:.....................................................................................3
1. 20 Bank Master data for petty cash sites....................................................................................3
1.30 Bank book and petty cash book..............................................................................................3
1. 40 Master data input for sanctioned facilities............................................................................3
1.50 Standard Group Overall fund movement summery.....................................................................4
Foreign Currency receive and payment..................................................................................................5
2.00 Export bill realization....................................................................................................................5
2.01 Short realisation........................................................................................................................5
2. 02 Local bank charges and statutory deductions from proceeds...........................................6
3.00 Compensation / other foreign currency revenue......................................................................6
4. 00 Deemed export bill realisation...................................................................................................6
5.00 Fund transfer from USD to USD with order/contract reference:.............................................7
6.00 Foreign currency loan:..................................................................................................................8
6.01Foreign currency loan through refinance:...............................................................................8
7.00 UPAS / deferred bill/EDF payment with interest at maturity by reference to import bill
and order/contract:...............................................................................................................................8
8.00 Payment for capital expenditure:................................................................................................9
8.01 purchasing FC from local currency..........................................................................................9
9.00 Payment for Cartoon, Chemicals, Accessories or other bulk purchase for export order:...12
10.00 Other foreign currency payment from USD account:...........................................................12
11.00 Selling of foreign currency for BDT:........................................................................................12
Local currency receives and payment...................................................................................................13
12.00 Fund Transfer bank-to- bank local currency:.........................................................................13
13.00 Receive from Local currency Loan:..........................................................................................13
14.00 Receive from Local sales:.........................................................................................................13
14.01 Other received as revenue or as other kind of receive.....................................................13
15.00 Supplier and others payment through bank:.........................................................................14
16. Payment directly ducted by bank such as bank Charge, Bank interest, Loan repayment....16

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17.00 Salary Payment:.........................................................................................................................17

17. 01 Salary Payment process by Bkash......................................................................................17
17. 02 Salary Payment process by Rocket & Bank.......................................................................18
17. 03 Wages & Salary Posting Process........................................................................................18
Cash receive and payment.....................................................................................................................20
18.00 Cash withdraw from bank as per indent requirement:.........................................................20
19.00 Other cash received as revenue or as other kind of receive................................................20
20.00 Send factory remittance as per factory requirement:...........................................................20
21.00 Send project site remittance as per site requirement:..........................................................20
22.00 Petty cash payment from factory and Head office:...............................................................21
23.00 IOU Payment from H/o & Factory:.........................................................................................21
Bank and Cash Balance Reconciliation.............................................................................................22
24.00 Bank and cash reconciliation...................................................................................................22
24.01 Bank reconciliation...................................................................................................................22
24.02 Daily Cash reconciliation......................................................................................................22

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Master Data
1.10 Master data input for Bank book open:
Generally, as per requirement we create a new Bank account on system with below information:
Company name or business unit name
Bank name
Account number
Account type
Bank branch name
Account opening date

Master data input for pettycash book open:

Company name or business unit name
Project name or business name

1. 20 Bank Master data for petty cash sites

We have daily cash transaction with various sites/factory/location with cash balance limit and
significant number of transactions. Cash transaction is carried GL code with site reference.

1.30 Bank book and petty cash book

Bank book maintain according to Bank A/C which is executed by our corespondent Bank and
petty cash book maintain for each business unit’s factory site, project site and H/O petty cash to
the system.
1. 40 Master data input for sanctioned facilities
We are Maintaining manually of our loan facility according to sanctioned letter provided by
bank.

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1.50 Standard Group Overall fund movement summery

Foreign Currency receive and payment

2.00 Export bill realization

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We receive foreign currency against export invoices and contact number reference.
Generally, remittance forwarded to our bank after deduction of foreign bank charges and any
other agreed amount with remitter with Bangladesh bank threshold.
Further local banks also deduct charges and statutory deductions. Some local banks deduct
from MOB account and some deduct from local current account.

Realised bill allocated to below type of bank account on consistent basis:

MOB Account
ERQ Account
Current Account
2.01 Short realisation
Generally, remittance forwarded to our bank after deduction of foreign bank charges and any
other agreed amount with remitter with Bangladesh bank threshold.
Sometimes customer or agent is remitting fund against invoice netting agreed deductions.
Generally foreign bank deductions are as below:
 Buyer Commission.
 Swift/cable charge
 Reimbursement charge
 Discrepancy charge
 Acceptance Commission
 L/C opening & amendment commission
 Others

Accounting of bill realisation:

Bank Credit Voucher
Respective head of charges Dr.
Bank Account-C/A Dr.

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Bank Account-ERQ Dr.

Bank Account-MOB Dr.
AR Invoice Direct Export Cr.

2. 02 Local bank charges and statutory deductions from proceeds

Local Bank deduct advance tax, central fundof BGMEA and other bank charges from Foreign
currency account or local currency account.
Generally local deductions are as below:
 Export bill handling/Swift/cable charge
 EXP certify charge
 Courier charge
 TDS
 Central fund for WPF of BGMEA

Accounting for local bank charges:

Bank Debit Voucher
Bank Charges Dr.
TDS against Direct Export Dr.
Central fund for WPF & WWE Dr.
Respective Bank Account Cr.

3.00 Compensation / other foreign currency revenue

Some cases we generate claim for various reasons to customer or supplier by issuing a debit
note or credit note. Accordingly we realised fund from customer or supplier through Bank.

Somecases such renittance to MOB account or sometimes deposited to local currency account.

Accounting:
Related Bank Account Dr.
Other revenue Cr.

4. 00 Deemed export bill realisation

We always record receiving against deemed export invoice with reference to bill number.

Received from deemed export may deposited to:

MOB account
ERQ account

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BDT account

Accounting of deemed export bill realisation:

Bank Credit Voucher
Respective expense head for short Dr.
Bank Account-C/A Dr.
Bank Account-ERQ Dr.
Bank Account-MOB Dr.
AR Invoice Deemed Export Cr.

5.00 Fund transfer from USD to USD with order/contract reference:

To meet bank liability such as deffered bills, UPAS, EDF and BTB sight payment we transfer FC
fund from one bank to another(within LE or outside LE) with reference to order/contracr.

We facilitate such transaction with FDD or Fund transfer letter.

Fund Transfer from USD to USD:

FDD
Fund transfer request letter
In adition, FDD issue from sister concern business unit’s or same business unit’s but different
bank. This case issue bank issue FDD in the name of receiver bank and make accounting is like
fund transfer through request letter method.

Accounting of FDD to same business unit:

Contra Voucher:
Cash at Bank – Receiver Dr.
Cash at Bank – Sender Cr.

Accounting of FDD to different business unit:

Bank Credit Voucher:
Cash at Bank Dr.
Sister concern Loan account Cr.

Bank Debit Voucher:

Sister concern Loan account Dr.
Cash at Bank Cr.

6.00 Foreign currency loan:

Foreign currency loan y bank which is taken against capital expenditure.

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Accounting of Foreign currency loan:

Bank Credit Voucher:
Cash at Bank FC A/C Dr.
Long term loan (loan ref) Cr.
Accounting of Foreign currency loan when UPAS retirement:
Bank Credit Voucher:
Accounts Payable-UPAS Dr.
Long term loan (loan ref) Cr.

6.01Foreign currency loan through refinance:

Bank liability of UPAS / deferred bill/EDF against capital expenditure adjusted by refinancing of
foreign currency.

7.00 UPAS / deferred bill/EDF payment with interest at maturity by reference to import bill and
order/contract:
Bank liability of UPAS / deferred bill/EDF with refference to order/contract listing as acceptance
date, maturity date, interest , currency of bill, bank refference no,bill no and with other relavent
information to commercial software. According to maturity date of liability neccessary step has
been taken at this stage.

UPAS / deferred bill/EDF liability sattlement against import bill recorded in our bank book with
interest and deducted bank charges from current A/C.

UPAS / deferred bill/EDF liability sattlement by FC A/C

MOB account
ERQ account
Accounting of UPAS / deferred bill/EDF liability sattlement:

Bank Debit Voucher:

Accounts Payable-UPAS/EDF/BTB Dr.
Interest on UPAS/EDF/BTB Dr.
Cash at Bank MOB/ERQ Cr

Please note, in any circumstances if bank balance of FC A/C is not available to meet the above
liability sattlement at this stage, rest of the required FC amount exchange from local currency
considering spot rate.

8.00 Payment for capital expenditure:

Bank liability of UPAS other than export contract listing with other relavent information with
relavent information to commercial software. accoerding to maturity date of liability settled from
below manner.

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Payment for capital expenditure L/C retirement

MOB account
ERQ account
BDT account
USD Loan account
Accounting of UPAS liability settlement by bank A/C debited:
Bank Debit Voucher:
Accounts Payable-UPAS Dr.
Interest on UPAS Dr.
Cash at Bank MOB/ERQ/C/A Cr.

Accounting of UPAS liability settlement by USD loan initiation:

Journal Voucher:
Accounts Payable-UPAS Dr.
Interest on UPAS Dr.
Long term loan (loan ref) Cr.

8.01 purchase FC from local currency

some cases, UPAS/deferred bill for capital expenditure settled by purchasing FC from local
currency.

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9.00 Payment for Cartoon, Chemicals, Accessories or other bulk purchase for export order:
supplier payment of Cartoon, Chemicals, Accessories or other bulk purchase with reference to
export order which is settle by below LC form:

At sight
UPAS
Deferred
Accounting of Sight bill payment by bank A/C debited:

Bank Debit Voucher:

Accounts Payable-Import bill Dr.
Cash at Bank MOB/ERQ Cr.

Accounting of UPAS/Defferd bill liability settlement by bank A/C debited:

Bank Debit Voucher:

Accounts Payable-UPAS/BTB Dr.
Interest on UPAS/BTB Dr.
Cash at Bank MOB /ERQ Cr.

10.00 Other foreign currency payment from USD account:

Payment for audit fees, service rendering fees for various complaince and other export related
issues as customer requirement we pay through wire transfer or Credit card against invoice or
other kind of request.

11.00 Selling of foreign currency for BDT:

We sale foreign currency for local currency to meet local payments.
We maintain foreign pool of fund reference to order/contract in MOB or ERQ bank account.
Accordingly we sale foreign currency reference to order/contract to have local currency.
Accounting entries as below
Local currency account Dr. (Actual BDT amount deposited but not converted by system)
Foreign currency account Cr. (Amount of foreign currency credited)

We also mantain following for performance purpose:

Trasantion wise effected exchange rate history (not our corporate rate in syatem)
Forward sell or spot sell contract/reference of the transaction whether it is.

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Local currency receives and payment

12.00 Fund Transfer bank-to- bank local currency:
Payment and adjustment from Several bank account of our business units of BDT requirements
we need to transfer BDT fund from same/other bank’s BDT A/C.
In case of, separate bank’s transfer, we make transfer through RTGS, BEFTN and for same bank
we go internal fund transfer method.
Accounting of Fund transfer to sister concern business unit:
Bank Credit Voucher:
Cash at Bank Dr.
Sister concern Loan Account Cr.
Bank Debit Voucher:
Sister concern Loan Account Dr.
Cash at Bank Cr.
Accounting of Fund transfer to same business unit:
Contra Voucher:
Cash at Bank (PBL) Dr.
Cash at Bank (SCB) Cr.
13.00 Receive from Local currency Loan:
We record loan as per category and purpose of loan
Long term loan
Short term loan
Packing credit
Preshipment financing
Manufacturing demand loan
Over draft
Generally we keep information of loans such as sanction of loan, terms and condition, rate
of interest, Loan availibility, listing of loans, scheduling of loan adjustment and interest
payment
The above process record in manual sytem.
14.00 Receive from Local sales:
We receive revenue from local sales from projects or cash fund as other income:
Revenue from construction is recorded with project reference
Revenue from realstate is recorded with project reference
Revenue from local sales is recorded as general receipt.
Receive from scrap leftover and other sources is recorded as general receipts.
14.01 Other received as revenue or as other kind of receive
We receive incentives from government cash assittances policy:
Duty draw back against utility bill
Cash incentives on export bill realisation

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15.00 Supplier and others payment through bank:

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Cheque payment
Concern person get Indent with bill and requirement to print cheque.
Bill and requirement search in system by request number given in indent.
Select bank instrument mode (Cheque pay order, RTGS, BEFTN & TT) option
Fill-up bank instrument reference (Cheque no)
Respective bank account blank cheque put in printer tray and click cheque button then get
printed cheque & click voucher button then get voucher.
Printed cheque & voucher attach with bill and send to get signature by authorized person.
After get signature this cheque disbursed by authorized person to party or supplier
Bank Debit Voucher
Accounts payable (Supplier Name) Dr.
Advance to party (Party Name) Dr.
Bank Account-C/A Cr.

RTGS or BEFTN:
Concern person get bill and requirement to electronic fund transer.
Bill and requirement search by request number then print Bank Payment voucher and with
attached bill.
Fill the precribe form of EFT according to corespondent bank.
EFT form send to signature/approval by authorized person.
After get signature /approval, the payment requests send to respective bank.

Bank transfer
Concern person get bill and requirement to make fund transer.
Bill and requirement search by request number then print Bank Payment voucher and with
attached bill.
Fill the precribe form of EFT according to corespondent bank for online fund transfer.
EFT form send to signature/approval by authorized person.
After get signature/approval, the payment requests send to respective bank.

Pay order
Concern person get bill and requirement to pay order.
Bill and requirement got search by request number then print Bank Payment voucher and attach
with bill.
Ready to pay order letter against respective bank account.
Pay order letter send to signature by authorized person.
After signature this letter through to bank.
Bank ready a pay order by debit our respective bank account.
After receive this pay order we disburse this pay order to party or supplier

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Accounting:
Accounts payable (Supplier Name) Dr.
Advance to party (Party Name) Dr.
Bank Account-C/A Cr.

16. Payment directly ducted by bank such as bank Charge, Bank interest, Loan repayment
There are certain charges and payments Bank directly deducted from Bank Accounts. On getting
statements and deductions advices we generate accounting entries after validation of such
deductions.
Payment for Banks Charges deducted by bank:

Export bill realisation charges:

Export bill handling/Swift/cable charge
EXP certify charge
Courier charge
TDS
Central fund for WPF of BGMEA
LC opening commision and acceptance charges:
LC openning commission
LC acceptance commission
Stamp and stationary charge
LC swift charge
Credit rating collection and other charges
Other bank charges:
Fund transfer fee
Pay order fee
Statement issue charge
Endorsement fee
TDS and VAT
Local currency loan installment and interest payment:
Bank deduct loan installment, interest of loan and deduct other loan related charges
Loan installment
Interest of loan
Excise duty
Loan management fee
All bank charges and commission, Bank Interest as per bank statement generate a bank
payment voucher in ERP then posted to system

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Accounting of loan liability sattlement by bank A/C debited:

Bank Debit Voucher:
loan A/C Dr.
Interest on UPAS Dr.
Cash at Bank MOB/ERQ/C/A Cr.
Accounting of bank charges:
Bank Debit Voucher
Bank Charges Dr.
Bank Account-C/A Cr.

17.00 Salary Payment:

17. 01 Salary Payment process by Bkash
Factory admin dept. attendance sheet send to H/O Payroll dept. for data input to system
H/O Payroll dept. data entry to System.
After data entry payroll dept. printed salary sheet & attendance sheet send to factory audit dept.
Factory audit checked the salary sheet with attendance sheet.
H/O Accounts (Cash Management Team- CMT) Download monthly Bkash salary Excel sheet
from Payroll System.
H/O Accounts (CMT) send this Bkash Salary Sheet to Factory Accounts for Checking.
Factory accounts team after Checking Bkash Salary Sheet they will mail Bkash locked salary sheet
to H/O accounts (CMT)
H/O Accounts (CMT) reconcile of Factory Bkash locked salary sheet with Payroll System
Download Sheet (1)
Factory audit Team mail to accounts team a summary of total salary of the unit to be paid for
the month with braking down to Cash Payment, Bkash Payment.
H/O Accounts (CMT) reconcile summery of total salary from Audit Team and detail from factory
accounts.
CMT also perform same validation process independently and signed the payment voucher as
Checker.
The prepared and checked payment voucher will be approved by any of one of Chief of
accounts and Finance Controller.
H/O Accounts (CMT) Upload locked excel sheet to Bkash Portal for payment.
Finally, Bkash disburse the salary according to uploaded sheet.
Accounting of Bkash Salary:
Cash in Hand - Factory – Cheque Dr.
Cash at bank (bKash DM code) Cr.

Accounting of Bkash Salary refund against Bkash Failed report:

Bank/bKash (sub-Bank account no.) Dr.
Cash in Hand - Factory - Cheque Cr.

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17. 02 Salary Payment process by Rocket & Bank

Factory admin dept. attendance sheet send to H/O Payroll dept. for data input to system
H/O Payroll dept. data entry to System.
After data entry payroll dept. printed salary sheet & attendance sheet send to factory audit dept

Factory audit checked the salary sheet with attendance sheet.

H/O Accounts (Cash Management Team- CMT) Download monthly Rocket salary Excel sheet
from Payroll System.
H/O Accounts (CMT) send this Rocket Salary Sheet to Factory Accounts for Checking.
Factory accounts team after Checking Rocket Salary Sheet they will mail Rocket locked salary
excel sheet to H/O accounts (CMT)
H/O Accounts (CMT) reconcile of Factory Rocket locked salary sheet with Payroll System
Download Sheet
Factory audit Team mail to accounts team a summary of total salary of the unit to be paid for
the month with braking down to Cash Payment, Rocket Payment.
H/O accounts prepared salary documents and send to Bank hard copy & soft copy (excel sheet)
for salary disburse.
Finally, Bank disburse the salary according to hard copy & soft copy sheet.
Accounting of salary through forwarding letter :
Cash in Hand - Factory -Cheque Dr.
Bank A/C Cr.

17. 03 Wages & Salary Posting Process

Provision of Salary:
After receiving of wages and salary sheet, factory accountant make provision against salary
as on the salary month end day (Back date posting done)

Accounts payable of Salary:

Provision of salary debited by Salary & allowance – Ap as per salary sheet and make
posting within the date.

Payment of salary:
While salary amount payment has been done, then account module debited by Salary &
allowance- Ap against factory liquid Cash/Cheque

Adjustment of TDS against Salary A/P, Mobile bill, advance against salary, medical expenses:
The above deduction against the employee’s salary recorded by credited against Salary &
allowance- Ap

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Cash receive and payment

18.00 Cash withdraw from bank as per indent requirement:
Cash Management receive cash requirement from factory, factory site cash requirement,
management approval cash Requirement, treasury petty cash purpose cash requirement
This requirement included in daily Indent
Cash cheque issue for all accumulated cash requirement which is included in daily indent.
Collect cash by issued cash cheque from bank
Accounting of bank withrawl:
Bank Debit Voucher
Cash in Hand - H/O - Liquid Cash Dr.
Bank Account-C/A Cr.

19.00 Other cash received as revenue or as other kind of receive

20.00 Send factory remittance as per factory requirement:

Factory Accounts Fill up a cash requirement form against purpose wise weekly fund, audited by
factory audit and authorized by AGM/DGM/GM/SGM then they are send to Head Office Cash
Management. H/O Chief of accounts included this cash requirement in indent and send to
Treasury, Treasury requirement wise cash Disbursement by Security services or Others process.

Accounting of cash send to factory from H/O:

Factory Remittance Dr.
Cash in Hand - H/O - Liquid Cash Cr.

Accounting of cash received by factory from H/O:

Cash in Hand - Factory - Liquid Cash Dr.
Head office remittance Cr.
Accounting of factory expense from factory petty cash:
Expenses Dr.
Cash in Hand - Factory - Liquid Cash Cr.

Cash in Hand - Factory - Liquid Cash limit need to be sanctioned by authority

21.00 Send project site remittance as per site requirement:

Site Accounts Fill up a cash requirement form against purpose wise weekly fund and take
Aauthorizeation form authority then they are send to Head Office Cash Management. H/O Chief
of accounts included this cash requirement in indent and send to treasury, Treasury requirement
wise cash Disbursement by Security services or Others process.

Accounting of cash send to site from H/O:

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Project site remittance Dr.

Cash in Hand - H/O - Liquid Cash Cr.

Accounting of cash send to Other Site from H/O: (Director personal site)
Project Other site remittance Dr.
Cash in Hand - H/O - Liquid Cash Cr.

Accounting of project site expenses from site petty cashPosted from H/O or factory):
Expenses Dr.
Project site remittance Cr.
Project Other site remittance Cr.

# Cash in hand- Project site Remittance limit need to be sanctioned by authority

22.00 Petty cash payment from factory and Head office:

Cash payment:
After collection of cash from treasury of H/O. petty cash dept. debit cash against approved
bill/advance/IOU Finally bill adjustment against advance/IOU.
Expenses Dr.
Cash in Hand - H/O - Liquid Cash Cr.

23.00 IOU Payment from H/o & Factory:

Approved IOU by functional heads comes to accounts department. After approval from COA in
accounts department, such IOU has been forwarded to Cash Section. Cash Section check for IOU
amount, related approvals and create a cash payment voucher. Then Cash section print this
voucher and sign, also he receives a sign who Receive Cash then he payment.

Accounting of IOU from H/O petty cash:

IOU Account Sub- (Employee ID & Name) Dr.

Cash in Hand - H/O - Liquid Cash Cr.

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Bank and Cash Balance Reconciliation

24.00 Bank and cash reconciliation
24.01 Bank reconciliation
Bank Reconciliation Team reconcile bank ledger with bank statement on daily, weekly or
monthly basis as per requirement. Reconciliation team collects bank statement by online or by
mail and sometime by person hard copy from Bank.

Generally concerned team has recorded receive and payments transaction at real time.
Generally, reconciliation team is checking ledger with bank statement. Sometime reconciliation
team has record miscellaneous type charges. Most Reconciliation team informs other team to
record transactions if it goes pending.

Generally, voucher for payment from bank by cheque is kept un-posted status in present system
and bank reconciliation team has posted such voucher upon cleared from bank.

24.02 Daily Cash reconciliation

project site and each factory liquied cash keep in control and monitoring by day to day cash
position report which is send from concern person.

In addition, reconciliation of remitance to factory petty cash between remit from H/O petty cash
maintaining in each week.

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