CHAPTER 1 - REVENUE SYSTEM A. CASH REVENUE (CASH RECEIPTS) SYSTEM I. Policies Delivery a.

An agreement regarding the handling of jugs shall be filled up and signed by the customer. (refer to the Free Use Agreement presented in Forms and Format for further information about the agreement.) b. Aqua Vill shall have a designated Delivery Man and shall be responsible for cash collections. c. The Delivery Man shall load 18 Slim Jugs and 27 Round Jugs on the first trip. d. Selling prices of all items shall conform to the over-all pricing strategy of the business and approved by the Owner. e. All delivered goods shall be covered with pre-numbered Temporary Delivery Receipts. f. Pull-out slips, for the jugs, shall be issued to customer in every delivery of goods. g. All cash receipts shall be covered with pre-numbered Cash Sales Invoice issued in sequential manner. h. All collections shall be remitted to the owner every day. i. All excess payments shall be credited to the next delivery. j. All collections are deposited every thirty (30) or forty (40) days. k. A Daily Collection Report (DCR) shall be prepared covering all collections. l. The number of jugs returned shall tally with the number of jugs delivered.
m. Customers that cease purchasing are pulled out from current files and transferred to archives.

Walk-in a. All cash receipts shall be covered with pre-numbered Cash Sales Invoice issued in sequential manner. b. All cash collections shall be remitted to the owner every day. c. A Daily Collection Report (DCR) shall be prepared covering all collections. d. All cash collections are deposited every thirty (30) or forty (40) days. II. Systems and Procedures Delivery a. The customer shall fill up and sign the agreement form regarding the handling of the jugs provided by the owner before delivery. b. The Delivery Man shall deliver the goods to the following designated areas: 1. Monday : different areas within Iloilo province 2. Tuesday : Municipality of Oton 3. Wednesday: City Proper 4. Thursday : Villa Area 5. Friday: Jaro Area, Brgy. Baldoza,La Paz, Municipality of Leganes 6. Saturday and Sunday : on Call *Customers may request for delivery anytime of the week other than regular delivery, free of charge. c. The Delivery Man shall load 18 Slim jugs and 27 Round jugs on its first trip.

d. The number of jugs returned shall tally with the number of jugs delivered. e. The Delivery Man shall issue Temporary Delivery Receipts (D.R) in two (2) copies. Gives the original copy to the customer and the duplicate copy to the owner. f. The Delivery man issues Charge Sales Invoice (C.S.I.) in three (3) copies. The C.S.I. shall be issued in sequential manner by the Delivery man. The Delivery man gives the original copy of C.S.I. to the customer and returns the copies to the owner for filing. g. The Delivery Man shall issue a Cash Receipt (CR) in two (2) copies upon receipt of cash payment for all credit sales. Gives the original copy to the customer and the duplicate copy to the owner. h. The Delivery man remits the daily cash collections to the owner at the end of the day. i. The owner keeps the cash safe in drawer. j. Every thirty to forty days, the Owner deposits the all collection intact to depository bank. k. The Owner prepares a Daily Collection Report (DCR) and files each transaction to individual customer folder. Cash Sales Invoice (CSI), original forwarded to customer, duplicate and triplicate to the owner for attachment to DCR. l. The Owner prepares a manual copy of the daily collections. Walk-in a. The Refiller issues Cash Sales Invoice (CSI) in three (3) copies upon receipt of cash. The CSI shall be issued in sequential manner by the Refiller. The Refiller gives the original copy of CSI to the customer, and the duplicate copy to the owner. b. The Refiller remits the daily cash collections to the owner at the end of the day. c. The owner keeps the cash safe in drawer. d. Every thirty to forty days, the Owner deposits the all collection intact to depository bank. e. The Owner prepares a Daily Collection Report (DCR) and files each transaction to individual customer folder, if it was an existing customer. f. The Owner prepares a manual copy of the daily collections.

III.

Systems Flow
Delivery Delivery Man From Customer Cash Cash Box Owner

To Customer D.R

1 D.R

2 1 P.O.S 2 P.O.S

Cash To Bank DS

To Customer

1 2 3 C.S.I C.S.I D.R 2 O.R

From Bank DS 2 2 3 C.S.I C.S.I Validated

To Customer O.R

1 2

O.R DS DCR 2 O.R 2 D.R 2 3 C.S.I C.S.I

Walk-in

Refiller

Owner

From Customer Cash Cash Box

Cash To Customer 1 2 3 C.S.I C.S.I DS To Bank

From Bank DS Validated

DS DCR 2 3 C.S.I

IV. V.

Forms and Format Duties and Responsibilities

B. REVENUE ON ACCOUNT I. Policies Delivery a. An agreement regarding the handling of jugs shall be filled up and signed by the customer. (please refer to the Free Use Agreement presented in Forms and Format for further information about the agreement.) b. Aquavil shall have designated Delivery Man and shall be responsible for cash collections. c. The Delivery Man shall load 18 Slim jugs and 27 Round jugs on the first trip. d. Selling prices of all items shall conform to the over-all pricing strategy of the business and approved by the Owner. e. The Delivery Man shall issue upon delivery, a Temporary Delivery Receipt in two (2) copies. f. Pull-out slips (for the jugs) shall be issued to customer in every delivery of goods. g. All credit sales must have prior approval of the owner. h. All credit sales must be covered by a pre-numbered Charge Sales Invoice. i. Credit Period shall be n7, n15 and n30. If customer cannot pay after 30 days the credit shall be considered uncollectible. j. The Delivery Man shall issue a Charge Sales Invoice in two copies (2), upon receipt of payment of accounts. k. All excess payments shall be credited to the next delivery. l. All daily credit sales must be accounted by the owner in his general ledger. m. Customers that cease purchasing are pulled out from current files and transferred to archives. II. Systems and Procedures a. The Owner process the approval of credit sales. b. The Delivery Man shall issue upon delivery, a Temporary Delivery Receipt in two (2) copies. Then gives the original copy to the customer and the duplicate copy to the owner. c. Based on the approved credit and the item the customer purchase, the Delivery Man then prepares Charge Invoice in three (3) copies. d. The Delivery Man requires the customer to acknowledge receipt of the items by signing of the CSI. Give the customer the original copy of the CSI. e. The Delivery Man shall issue a Charge Sales Invoice in two copies (2), upon receipt of payment of accounts. Then gives the original copy to the customer and the duplicate copy to the owner. f. At the end of the day, the Owner prepares Daily Credit Sales Report (DCSR) in two (2) copies and attaches to it the original copy of the CSI. g. The Owner files the duplicate DCSR.

Systems Flow

Delivery Man
Customer applies for credit

Owner

Credit Approved?

Y Approved Credit

To Customer D.R

1 P.O.S 2

To Customer

1 C.S.I 2

DCR 2 3 C.S.I

III. Forms and Format IV. Duties and Responsibilities

Chapter 2 Disbursement System A. PETTY CASH FUND SYSTEM I. Policies 1. The owner shall set-up a Petty Cash Fund (PCF) of P500 to cover minor expenses of P500 or less. 2. The Owner shall act as the petty cash fund custodian. 3. In case of cash advance from the fund, the advance shall be recorded in the cash advance journal. 4. All disbursements from the Petty Cash Fund shall be recorded in the general journal. 5. The Petty Cash Fund shall be replenished daily. II. System and Procedures 1. The Owner shall set-up a PCF amounting or less. The amount of the PCF shall be decrease / increase if necessary. 2. The owner shall act as the Petty Cash Fund Custodian (PCFC) who shall keep the fund separate from other funds. 3. In case of cash advance from the fund, the Owner records the cash advance in the Cash Advance Journal. 4. The Owner shall record in the General Journal all disbursements from the Petty Cash Fund. 5. The owner shall replenish the Petty Cash Fund daily.

III. Systems Flow Without cash advance

For minor expenses of P500 and below

Cash

Cash

Supporting Documents

General Journal For Replenishment

With Cash Advance

Owner

Need for Cash Advance

For minor expenses of P500 and below

For approval

Approved

CAJ

CAJ

CAJ

Cash

Cash

From Supplier

Supporting Documents

Supporting Documents General Journal

For Replenishment

Supporting Documents

General Journal

IV. Forms and Format

V. Duties and Responsibilities B. BANK TO BANK TRANSACTIONS I. Policies [Link] expenses over P500 shall be paid through bank to bank transactions. [Link] transactions shall be supported by Delivery receipts. [Link] owner shall authorized bank transactions.

II.

System and Procedure Requisition 1. The Delivery Man or the Refiller shall inform the owner about depleting supplies two (2) days before inventory will be totally run out. List of inventorys level of inventory considered before ordering: (this is not the complete list of inventorys) a. 10 packs of seal b. 5 sacks of salt 2. The owner shall call the suppliers for delivery of needed supplies. 3. The Owner allots one (1) week for suppliers to deliver, if suppliers cannot deliver the goods on time, emergency supplies are bought here in Iloilo. 4. Suppliers are being ordered in fixed volume by hundreds. Purchase 5. The owner is the only one authorized to transact purchases with suppliers. Delivery 6. Manual counting is a must upon delivery of supplies. 7. Delivery Man or Refiller shall sign the Suppliers Delivery Receipt after verifying number of supplies received. Payment 8. Payments are made via bank to bank transactions. 9. The owner files the supporting documents such as delivery receipt, and records them in the purchases account in the general journal. 10. The owner fills up deposit slip in the bank to pay the suppliers.

VI. Systems Flow VII. Forms and Format

VIII.

Duties and Responsibilities

I. 1. 2. 3. 4.

C. PAYROLL Policies: Employees shall report for work at 8:00 a.m. every day. The Owner shall account for the number of days an employee is present and absent. There shall be a fixed amount of salary per day with Cost of Living Allowance (COLA) of P300 and free Board and Lodging. The distribution of salary will be on the 15th and 30th day of the month.

II. Systems and Procedures: 1. Employees shall report to the Owner every day before starting their respective work assignments. 2. The Owner shall maintain a record of the number of days the employees are present and absent. 3. The Owner shall base their salary on the number of working days, with a fixed amount per day as agreed by the owner and the employee. 4. Employees contribution on SSS and Philhealth shall be deducted every end of month. 5. The salaries are directly given to the employees. Receipt of salary shall be evidenced by signature on the record book of the Owner. III. Systems Flow
Employee Owner General Journal

Payroll Sheet

Pay Slip

Pay Slip

Pay Envelopes

Pay Envelopes

Chapter 3 Bookkeeping I. General Policies - Bookkeeping [Link] Owner shall record all the business transactions using the established Chart of Accounts and Journals. [Link] statements shall be prepared every month but not later than 10 days after the end of each month. [Link] following account-schedules shall be prepared regularly: 3.1. Schedule of depreciation 3.2. Schedule of accounts receivable 3.3. Schedule of accounts payable [Link] accrual system of accounting shall be observed consistently. [Link] shall be recorded using the periodic system thus monthly inventory is necessary for the preparation of monthly financial statements. Inventories shall be valued based on Average Costs Method. [Link] if any, shall be recorded using the asset method. [Link] most transactions are on sales and payments, a simplified bookkeeping system shall be adopted. The following books shall be maintained: 8.1 Cash Receipts Journal 8.2 Cash Disbursement Journal 8.3 General Journal [Link] files/records are to be kept for a minimum period of three (3) years.

II. Systems and Procedures - Bookkeeping [Link] Owner records all business transactions in its appropriate journal based on original copies of source documents. The source documents referred to are as follows: [Link] Report (with attached duplicate copy of Official Receipts and deposits Slip/s) [Link] Vouchers (with attached Purchase Order/s, Job Order/s, Fund Voucher/s and Official Receipts or equivalent). [Link] vouchers (with attached detailed schedules/computation) [Link] recording the transaction to its respective journal, the Owner posts the data to its appropriate Subsidiary Ledger (if required). [Link] on the balances on the Journals the Owner shall prepare the following Schedules for analysis purposes: 3.1. Schedule of Depreciation 3.2. Schedule of Accounts Receivable 3.3. Schedule of Accounts Payable 4. The Owner prepares the Financial Statements within ten (10) days after end of each month.

[Link] Owner files all accounting records in a proper order.

III. System Flow - Bookkeeping Owner _________________________________________

Sales Journal

Cash Disbursements

General Journal

File Schedule of Accounts Receivable

File

File Schedule of Depreciation

Trial Balance

Prepares Statement of Income with Supporting Schedule, Statement of Financial Position and Statement of Cash Flows

Statement of Income Statement of Supporting Financial Position

Schedule to the Statement of Cash Flow

LEGEND:

Basis of recording/preparing report Flow of documents/transaction

Maintains a daily report and net for monthly assessment. One week, 15 days and one month. Checks or cash no credit cards Payment: excess payment is credited on the next delivery. Checks are deposited 30-40 days along with cash on hand. Salesman and Refiller remits cash collections every end of the day. Revenue on account: Payment of customers: Red on credit Green payment of credit Black cash Cash receipt- cash payment of credit sales Disbursement System PCF 500 PCF per Day Purchasing Call for supplies no fix date in volume of 100 from manila. Payment of supplies are on cash. Via bank to bank transaction For manila 1 week to fifteen days lead time. Depending on the supplier. If there is available then one day. Emergency purchases are made here in Iloilo. 10 packs of seal, 5sacks or sat then order, Payroll 15th and 30th day of the month Stay in with food board and lodging allowance 300 pesos per month. Bookkeeping Expenses: Light electric bill Maintenance and repair Salary and wages Sss Philhealth Rental expenses Other expenses emergency and daily expenses

Gasoline Sales over all Accounts: Cash Payment- accounts receivable paid Charge-accounts receivable Gross Sale Net Sale Purchases