PPC Package

the payment is to be a part (provisional) payment, then the bill type should be P. When a bill is to be
registered for the remaining (adjustment) amount, the bill type entered should be A. Whenever a
single bill is raised for the entire amount in the purchase order, then the bill should be treated as an
adjustment bill. On entering the amount claimed against each item, the computer cross checks with
the maximum amount allowable for that item on the basis of the payment percent in the purchase
order. The computer generates a bill serial number for reference purpose. Any recovery statements
against a particular vendor are to be registered in the system. The recovery from a particular vendor
are to made against a purchase order raised against him. The type of recovery and the amount to be
recovered are required once the vendor code and purchase order number are cross checked by the
computer. The recoveries registered may be adjusted against a particular vendor bill when the bill is
being passed.
If the bill is an adjustment bill, then it has to be linked to receipt vouchers before any further action
can be taken on it. This activity links the material that has been received against the purchase order
with the bill. It must be noted that the values on receipt vouchers which are partly linked or not
linked at all are linked to the adjustment bill.
Payment may not be made before the bill is passed. A provisional bill may be passed once it has
been registered whilst an adjustment bill may only be passed after it has been linked to receipt
vouchers. In case of adjustment bills the amount that is passed cannot exceed the amount against
which material has been linked. While passing a bill any recoveries that are to be made against the
vendor are accounted for in the bill. The recoveries in this case are made purchase orderwise. The
amount that is to be recovered in the bill is therefore deducted from the total bill amount. Once a bill
has been passed, there is provision to modify the recovery amount.
Once a bill has been passed, the payment advice is generated. The particulars of the bank of the
vendor (if payment is to be made through a bank) are to be entered and a printed copy of the
payment details is obtained.
In case recoveries are to be made by accounts after a bill has been passed, then they must be
identified and recorded against the particular bill. These recoveries are distinct from the recoveries
made against a purchase order. It is for this simple reason tthat the recovery type for such recoveries
should always begin with the digit 3. A final deduction in the amount that has been passed would
therefore be nescessary.
The cheque number, cheque date and the cheque amount are recorded when a cheque is passed
against a particular bill. The cheque amount should not exceed the amount that has been passed by
accounts. In case the bill is a provisional bill, it has to be regularised. This activity may be done after
the part payment has been made and before the adjustment bill is registered. This activity involves
the linking of the provisional bill to receipt vouchers. The values in the receipt vouchers for an item
in the bill are either comppletely linked or partly linked to the bill. The partly linked receipt
vouchers and those receipt vouchers which have not been linked are linked against the item in the
adjustment bill after it has been registered. Thus regularising the provisional bill and linking the
coressponding adjustment bill actually links up the entire material received against the purchase
order.
CONTENTS
Ordnance Factories Institute of Learning, Dehradun 22