ICFR Final gap tracker FY 22 Flashcards
Custom SAP R/3 programs are assigned to authorization groups
Custom SAP R/3 transactions are adequately secured.
i. Excess material remaining after the manufacturing processes is returned to stores annually. In case material is left unused in one batch then it is used in next batch.
iii. Standard vis-à-vis actual consumption of RM/ PM is analysed on monthly basis.
so ultimate question is—-Standard vs actual Cons analysis.
check for resolution
‘No monthly analysis of standard vis-à-vis actual consumption of RM/ PM.
‘We are also putting in place a process to review the variance with respect to BOM
Creation of New BOM:
Plant operations personnel/IT team creates new BOM in SAP upon receipt of BOM details and ticket raised by production department in an excel template. The template is approved by plant operations head through email.
SAP Consultant confirms back post creation of BOM in SAP to requester through email and upon receipt of confirmation closes the ticket raised in SAP.
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SOD conflict.
BOM related activities (creation & review) performed by Operations team itself.
Any ways mandar has complete denied and swanil also agreed that nocompany –finance dos the same.
- Since starting onwards, BOM management is being done by Operations Team only. We are not raising ticket for updating BOM.
- Once new material code is created, I (Venkatesh) am updating BOM for the same. Furthermore, we are reviewing BOM on half yearly basis for all running products.
Third party vendor shares the production MIS with location finance team on a quarterly basis post the physical verification exercise. Output loss is determined based on the consumption and handling norms as defined in the agreement with the third party vendor.
check Design Gap (Seeds Division) - Usage variance report is not shared by location finance team with Head Third Party operations on a quarterly basis.
Organiser code creations:
Basis Organiser evaluation performed by production team, vendor registration form along with KYC details (such as PAN, Aadhar card, cancelled cheque) is prepared by Production team and approved by Seed Production Head and SCM head. Approved form is sent to IT Team in a standard template for creation of Vendor code in SAP
Once Vendor is created in SAP, the details are verified by production co-ordination team for Organiser.
Grower code creation:
Basis evaluation of grower, details are sent to Production coordiation team.Further, the details are send to IT Team in an e-mail for creation of Vendor code in SAP
Once Vendor is created in SAP, IT team links grower code to Organiser code at the time of creation of vendor code of grower basis organiser details updated in vendor registration form
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Production/Supply chain team send email confirmation to finance for Material in transit for monitoring inventory balances
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so This is GIT related–now mandar has started taking GIT provision from Dec-21 Onwards
At the time of GRN weight as per Weighbridge slip and SDN is compared. In case of major variance justification is obtained from locations. Final GRN is posted in SAP based on the weighbridge slip or justification(Wherever obtained)
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Accounts team refers to SAP report for quality release, if Batches being marked as Sub_STD MIRO entries will not be posted for all such Batches.
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Details of field visit are captured by the person visiting the field in a diary which is then converted into spreadsheet
GPS acres are recorded in FIR 2 based on the acreage reflecting the GPS measurement machines
Details updated in FIR 1, 2 and 3 are updated by production centre incharges and are sent to Central production team. Based on these details advance payments are made
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Compensation amount is calculated by the Production team based on the comparison of Payment as per material received and price approved and Payment as per minimum income level defined.
Compensation working is prepared based on the dispatched acres
Compensation working is approved by COO based on which finance makes the payments.
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Organiser code creations:
Basis Organiser evaluation performed by production team, vendor registration form along with KYC details (such as PAN, Aadhar card, cancelled cheque) is prepared by Production team and approved by Seed Production Head and SCM head. Approved form is sent to IT Team in a standard template for creation of Vendor code in SAP
Once Vendor is created in SAP, the details are verified by production co-ordination team for Organiser.
Grower code creation:
Basis evaluation of grower, details are sent to Production coordiation team.Further, the details are send to IT Team in an e-mail for creation of Vendor code in SAP
Once Vendor is created in SAP, IT team links grower code to Organiser code at the time of creation of vendor code of grower basis organiser details updated in vendor registration form
On sample review of 15 instances of Grower & Organiser code creation, we noted the following:
i) In 6 instances (40%), we noted that the Grower-Organiser linkeage in system was not mapped against the respective grower codes. (PFA sample). The ageing from code creation date upto the testing date (17-03-2022) ranges from 110 to 267 days
Production/Supply chain team send email confirmation to finance for Material in transit for monitoring inventory balances
Design gap
Currently, transit material from field to plant is not tracked and therefore there is an absence of process to take provision
At the time of GRN weight as per Weighbridge slip and SDN is compared. In case of major variance justification is obtained from locations. Final GRN is posted in SAP based on the weighbridge slip or justification(Wherever obtained)
i) In 420 instances incorrect acreage details were captured at the time of creation of GRN leading to incorrect accounting of various charges/consumptions which are based on acreage. Leading to excess provision of various expenses (Roughing charges INR 64 lacs).
Accounts team refers to SAP report for quality release, if Batches being marked as Sub_STD MIRO entries will not be posted for all such Batches.
In 23 instances, MIRO has been posted for UD of ‘Hold’.
Details of field visit are captured by the person visiting the field in a diary which is then converted into spreadsheet
GPS acres are recorded in FIR 2 based on the acreage reflecting the GPS measurement machines
Details updated in FIR 1, 2 and 3 are updated by production centre incharges and are sent to Central production team. Based on these details advance payments are made
FIR details are maintained manually and prone to manual errors. Noted mismatch in FIR 2 (GPS acreage) vis-à-vis FIR 3 acreage and SDN acreage
Reconciliation is being performed before making the payments to the Organizer to ensure accuracy
