Administration Manual - B.E.S.T. Undertaking.

3.7.13 Balance Payments are effected by separate vouchers being prepared
and are processed in a similar manner to regular bill except that the
earlier advances made are sometimes simultaneously liquidated.
3.7.13A The concept of ‘E Payment’ is also introduced by Materials
Management Department in case of payment to Oil Companies for HSD
Oil etc. For ‘E Payment’ instead of preparing vouchers payment advice
is prepared and payments are transferred from Undertaking’s Bank
A/c. to supplier’s Bank A/c. through Internet facility. The payment
advice is verified by Audit and also ensured that payments are
transferred from Undertaking’s Bank A/c. to supplier’s Bank A/c. as
per audited advice.
3.7.14 Liquidation of Advance Payments: Journal Entries are prepared in the
Journal Entry Forms to liquidate advance payments and regularize the
transactions from the point of view of accounting. The value of SRN is
debited, to the extent of Advance Payment made, to –
585
“ Advance and Suspense Head Stores Account Purchases Stores
Purchase Creditor’s Account” and credited cash advance to
“Advance and Suspense Head Stores Accounts Purchase
Personal Account (of supplier)”.
3.7.15 Journal Entry Bills are for all purposes identical to regular bills except
that no payments are involved, the amounts being merely adjusted in
books, but all formalities are otherwise observed in their preparation,
etc. as in regular bills.
3.7.16 Cash Purchases: When stores supplies are urgently required,
purchases are made by cash payments from the Standing Advance
maintained as Imprest Cash (Petty Cash as it is generally known) in
the Materials Management Department. The payments are supported
by Cash Memo and not invoices as in other cases and these