(i) Sales
- All sales must be evidenced by use of predesigned invoices or cash sale receipts.
- All invoices and cash receipts must be pre-numbered and used sequentially.
- Selling prices must be clearly authorised by a relevant person.
- Any discounts must be authorised by a relevant person and evidenced in writing usually
by way of debit notes
- All sales returns must be signed for
- Segregation between invoicing and recording
- Credit control policies example bad debts and discounts
- Reconciliation of accounts receivables
- Monthly customers statements
(ii) Purchases
- Purchases must be.on the basis of local purchase order (CFOs) sourcing to get the best
price and quality.
- All purchases must be evidenced by invoice in the name of the entity.
- Purchases ledger should be updated periodically using correct prices and quantity
- Periodic reconciliations of purchase ledger are essential to identify discrepancies.
- Verification of goods purchased
- Approved supplies list to be approved
- Recording of purchases
- Budget for the purchasing of goods .
- Approval or authorisation of purchases
(iii) Cash
- All cash collections should be banked and not used in operations.
- An imprest system should.be used to manage cash.
- Periodic surprise cash counts are essential to deter malfeasance.
- The cashbook should be promptly updated.
- Expenditure should be on the basis of voucher duly supported and authorised.
- Cash should be under lock and key
- Periodic reconciliation of balances
Kavungya answered the question on May 14, 2019 at 12:57
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