Review Procedure :

A: SALES (Final product, Rejected Products, Scrap, Stores sales)

1. Check whether all the Sales of sold stock according to schedules. If not, prepare the list of the delay dispatches along with reason of the delay in dispatches.

2. Quantify the losses, for the material which are not dispatched with in time i.e. the company has paid the Airfreight/sea freight.

3. Check whether all the bills are made according to the purchase contracts with the customer. If not list out the discrepancy. Check the billing system and see whether the billing has been done through the authorized channel. Check for any informal billing system. If such system exists, analyze with management and report. List out the cases of delays in dispatches for sold & unsold stock after production. Also find out the average no of days taken to clear the stock after production. Review the system of stock records maintenance.

4. Check whether there is variance in actual and target sales prices. If so ascertain the reasons after discussions with marketing executives. Check whether the discount given is approved by the appropriate authority.

B: Review of system of awarding the transport contracts

1. Check the system of sending enquiry and receiving quotations.

2. Check the control over sending enquiry and receiving, how followed up, record keeping, etc

3. Check whether basis of taking decision is documented properly or not.

4. Check whether date of approval, name of approving authority is mentioned on the approval document
or not.
5. Check whether the contract is entered into with thee selected transporter. Check the terms and conditions of transporter agreement and report lapses if any.

C: Review of process of taking insurance during transit
1. Check whether the process of taking insurance for transit vehicle exists or not.

2. Check the coverage of insurance policy i.e. it covers full inventory value or just material price.

3. Check who takes the insurance transporter or the client

4. Check whether proper insurance value is declared for insurance coverage.

5. Check whether the insurance policy is made available to all concerned.

6. Check whether any cost benefit analysis has been done for the insurance premium paid and claim launched.

D: Review of Sales Return

1. Is the mechanism of schedule of schedule of authority exist for the sales return i.e. system relating to sale returns prescribe limits on the authority of managers at various levels to accept return of goods?

2. Are sale return analyzed with reference to the reason & necessary actions taken viz- a- viz reasons identified

3. Are the returned goods inspected before acceptance? Are returned goods duly accounted in inventory records?

4. Is an inward return note prepared promptly against each sale return, indicating the quantity and specifications of the goods received back?

5. Whether credit note are issued on the basis of inward returned note. Whether a proper control over the issue of credit notes especially with regard to the authority for issuing the same. Whether credit notes are properly checked with reference to the relevant inward return note before it is approved and sent to the customer? Are appropriate entries made in the books of account promptly? Check whether the excise paid is reversed for the returned goods or not

6. Is the sale commission paid in respect of goods returned recovered through an appropriate debit note?

E: Review of Claims by customer

1. Are all claims (for poor quality or for delay in delivery and similar other reason) approved by an authorized manager? Is the approval granted only after a proper examination of the matter?

2. Is a credit note sent to the customer in respect of each approved claim? Are appropriate entries made
in the books of account promptly?

F: Review of Debit/Credit notes
1. Check whether the corresponding impact of credit note/debit note on Sales Tax, Excise etc. have been considered or not

2. Check whether credit note/debit note are issued in accordance with the Sales Policy and term of the Sales Order.

3. Check whether credit note/debit note properly authorized.

G: Review of Sales Commission

1. Check all the sales commission are given as per contracts made with the party

2. Make the reconciliation of sales with sales commission.

H: Review of Export Sales

1. Reasons wise analysis of the overdue bills.

2. Loss of overdue interest due to delay in realization of the export bills.

3. Norms of Export trade, imports, process of order booking to production planning, realization, settlement benefits, claims, etc.

I: Review of Marketing – International & Domestic:

1. Are standard price lists maintained? Is a special sanction from a senior manager required in the case of sales at prices lower than the standard price?

2. Does the system of allowing rebates and discount provide for adequate controls? In particular is there a clear cut policy for allowing such rebates and discounts? Are the authorities for various managers in this regard clearly laid down and are they reasonable?

3. Are special sanctions required in case of sales to those companies/ other enterprises in which the managerial personnel or senior employees are interested?

4. Is there a well defined policy for making sales to employees at concessional prices? Does it laid down any limits in this regard?

5. Is there a timely preparation of a written sale order on receipt of an order from a customer?

6. Are sale orders pre numbered? Is a lack of continuity in sale order number duly enquired into?

7. Is there a proper authorization of credit, price, quantity and other important terms of the sale order?

8. Is there a system of fixing credit limit for regular customer? Are these limits approved by a senior manager as per the sales policy determined by the top management? Are these limits reviewed periodically in the light of the experienced in dealing with the customer?

9. Is credit limit of the customer concerned checked before sanctioning the credit on the sale order? Is up to date information on the extent of the credit already extended to the customer readily available for this purpose?

10. Is a copy of each sale order sent to the dispatch department and the accounts department?

11. Is a dispatch document, e.g. a good outward challan, prepared at the time the goods are dispatch to the customer? Is it matched with the bill of lading or railway receipt/transporter receipt?

12. Are dispatch documents pre numbered and missing document numbered duly enquired into?

13. Is there a system of checking each consignment of good leaving the premises with the related dispatch document?

14. Is a copy of dispatch document, i.e. goods outward challan/gate pass sent to the customer and to the accounts department?

15. Is an acknowledgement of receipt of goods obtained from the customer or from his agent on the copy of the dispatch document?