Railway Accounts Department Examinations

Showing posts with label Stores. Show all posts
Showing posts with label Stores. Show all posts

Wednesday, April 22, 2020

iMMS

 

iMMS

By Shri Damodar Prasad, Sr.AFA (Retd)

 


Source: Official Twitter account of Indian Railways Click here


·         Acronym of Integrated Material Management System.

 

·         Initially  Materials  Management  Information  System  (MMIS)  was  developed  by  Central Railway  in  1998 year.

 

·         Covered PCMM office, Stores Accounts Office and Major Depots of  the Central Railway.

 

·         MMIS  - Areas

Purchases

Issues

Generating PO - Purchase Order

Generating ERM - Electronic Requirement Mandate

RO - Receipt Order

Issue Note

 

·         MMIS - Generation of the following Reports

A.      Details of slow moving items.

B.      Quantities available as on date.

C.      Pending POs (Purchase Orders)

 

·          MMIS  has  undergone  several  customizations  and  is  implemented  at  most  of  the  Stores Depots; Divisions  & Stores finance  branches  all  over  Indian  Railways. 

 

·         MMIS  to iMMS - This decentralized  MMIS  running  on  individual server  in  Zonal  Railways  is  being  integrated  at  CRIS  (Centre  for  Railway  Information Systems),  New  Delhi  with  the  iMMS  (Integrated  Material  Management  System)  web  based application  on  central  servers. 

 

·         First phase of iMMS - Local  purchase  module  of  iMMIS  has  been rolled  out  for  implementation  in  all  depots  and  divisions  of  stores  department  of  Zonal Railways,  both  for  Stock  &  Non-Stock  items.   

 

·         iMMS  -  catering  depot  transaction (Issue/  Receipt)  of  all  the  Indian  Railways.

 

·          iMMS  to IPAS   - Once  this  application  is  fully  implemented  and integrated  with  IPAS  it  will  take  care  of  all  the  payments  and  suspense  head  operated  in Stores Accounts.

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Tuesday, April 21, 2020

Unit Piling in Stores Accounts


Unit Piling


·          Para 1250 of Indian Railway Stores Code

·         Object of Unit Piling: To retrieve or ascertain the existing stock at any time without any difficulty

·         System of stocking the stores like
1.       So many deep to a row and so many rows to a layer
2.       In case of small items,  a system of packing in bags , uniform quantities in convenient weights or number based on average quantities for one issue.
3.       Wherever practicable, graduation marks should be painted on bins to show certain previously ascertained quantities which would enable a busy DSK  to know at glance the approximate stocks in his custody and for taking steps for prompt recoupment.

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Monday, April 13, 2020

Material Management - 2018-19

Material Management  - 2018-19

Source:  Year Book 2018-19

 

·         Total purchases - Rs. 62,134 Crores

 

Procured by

%

Zonal Rlys & PUs

63

Railway Board

36

Others

1

 

·         Total Number of Depots - 262

 

·         Total Number of items stocked - 1.3 Lakh

 

·         Scrap Sales - Rs. 4192 Crores

 

·         E-Procurement started in the year 2010-11

 

·         Single Web portal IREPS - Indian Railways Electronic Procurement System -   for Goods, Services, Works, Earning, Leasing & Sale of Scrap

 

·         IREPS - आपूर्ति - (Apoorthi) Android app  - enables access to useful information at one go.

 

·         System of Lot Publishing, instead of traditional catalogue publishing, has been rolled out for re-Auction in January, 2019.  This has made paradigm shift in the method of disseminating information pertaining to the available scrap for sale to prospective bidders in a transparent manner.

·         Common use Goods and Services available on GeM are reserved for procurement through GeM portal ( Government E Marketplace

Turn Over Ratio - TOR

 

·           Meaning: Ratio of Stores Balances at the end of financial year to Total issues during the year.

 

·         Formulae = Stores Balances as on 31st March/Total Issues during the year x 100

 

·         Stores Balances = Stores in stock + Stores in Transit + Purchase Suspense + Sales Suspense + Stores Adjustment Account

 

·         Calculated separately with fuel and without fuel

 

·         Expressed in Percentages

TOR

2014-15

2017-18

2018-19

Without Fuel

15

10

9

With Fuel

-

8

6

 

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Sunday, February 2, 2020

Stock Sheets




Stock Sheets / Stock Verification Sheets

·         Source: Stores Code Chapter 12

·         Whether book balances of Stores agree with physical balances?  This is the item to be replied while submitting Annual Statement of Stores transactions of Zonal Railway to Railway Board duly signed by PFA and PCMM.
·         Object: To achieve the above object,  an independent stock verification is to be done by Accounts Stock Verifiers (ASVs).
·         To brought out the discrepancies between Ground balances and Ledger balances of the stores

·         Prepared by SV - Stock Verifier

·         prepared in triplicate from the Field Book of SV in Form No. S 1260

·         A Stock Verification Report has to be prepared at the time of posting the Priced Ledger showing the book balance, the ground balance as per the Stock Sheet and the excess / shortage, if any.

·         Numbering of Stock sheets serially for each unified group of stores

Instructions:

1.    Stock sheets / Stock Verification Reports for different categories and qualities of stores should be clearly so marked.
2.    Entries should be made on one side only.
3.    Space of 1 or 2 lines  - Between two entries
4.    Ensure that all the entries in the Field book are carried to Stock sheets or not, by giving cross reference  to the field book number and its page & item number.
5.    The columns of PL Balances, Rate & Value  - filled up by Accounts Office at the time of posting of Priced Ledgers (PL)
6.    For items that have not verified  - Remarks such as 'Average weighment', ' Measurement' , ' book balance accepted' should be given in the remarks column.
7.    Signed by the Stock Verifier (SV) and Subordinate incharge of the Stores verified such as DMS - Depot Material Superintedent.
8.    Adjustment / Supplementary Stock Sheets - Quantities that found subsequent to their verification.
9.    All stock sheets should be entered in manuscript register in Form S 3261
10. Finalized - within 6 months.
11. In case, the responsible staff for shortage is to retire, this matter should be finalized before his/her retirement.
12.  The Stock sheets and the explanations there on should be scrutinized by the Sr.ISA (Sr Inspector of Stores Accounts) to see that every discrepancy has been explained or not.  Further explanations should be called for in regard to remarks that are unsatisfactory. "Accounts Note" will be issued in such cases.
13. The explanations should be represent facts, clear, intelligible and definite.
14. In case of analogous/similar items (where sizes only differ) - adjustments i.e., excess in one category adjusted into shortage of another category may be passed up to 2 % of the transaction since the date of last verification.
15. Cost of the missing articles is invariably recovered from the responsible staff and the same should be noted in manuscript register of recoveries in Form No. S. 3263



Items
Shrinkage admissible Percentage
1. Chalk, White
2. Pumice
3. Asbestos packing
Not more than 2.5% moisture
4. Coir, loose.
5. Coir, yarn
6. Cotton , raw
7. Cotton , spun
8. Cotton, waste
9. Gum country
10. Jute, country
11. Jute, gasketing
12. Log line
13. Ropes
14. String, scotly
15. Wool, Worsted
Not more than 5%
16. Band, Catgut
17. Brooms, Goa
18. Cane, split
19. Hides and leather goods
20. Moonj, Raw
21. Moonj, Raw
22. Soap
Not more than 10%

·     
   Additional items (for above shrinkage percentages) may be added with the approval of the General manager.

Accounts Note:

·        Incorporated - All discrepant items for which satisfactory explanations have not been offered by the executive
·        Form S 3266
·        Care should be taken to group all items of similar nature where identical information is required
·        The salient features of each case of discrepancy should be pointed out in the form of Accounts Notes
·        Submitted to Stores Accounts Officer for final disposal.
·        Monitoring and control of Issue Notes - A manuscript register of Accounts Notes in Form No. S. 3267 - maintained with separate part for the various divisions/depts/depots.
·        The date of final disposal should be noted in the above register.
·        Register of Important Irregularities detected by Stock Verification staff to incorporate the result of the internal check. Maintained in the Accounts Section. - To facilitate the preparation of the memorandum of results of internal check required to be submitted to the Railway Board. 
·        Half - yearly Report to GM - on General review of Stock Verification work
·        Depot Stock Sheets - Prepared by Stores Depots.  The object and disposal is as same as of Stock Sheets prepared by Accounts Dept.
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Monday, November 11, 2019

Stores Suspense Accounts


Stores Suspense Accounts

                                                                                                                                By Rajeev Bagalwadi, Sr.SO(A)/SCR/SC


Indian Railways being a large transport organization, it requires to procure or manufacture and stock items needed for its regular maintenance and upkeep of various services. The stores procured are Capital intensive and are stocked in depots located at different places on the Railway.  As the receipt of material at depots is initially for stocking and then for issues to the consuming departments, they can not be charged off to final heads immediately. Hence, suspense accounts are to be maintained in Stores for temporarily keeping them in the suspense account and watch their clearance.

                Various suspense accounts maintained in stores are as under:

1.       Stores in Stock:This suspense account is maintained depot wise and it accounts for the materials received, inspected and accounted for in the depot. On receipt and accountal of the material, a receipt note is prepared which is the basis for posting the debit side of this account. Therefore, the transaction would be as under;

                Stores-in Stock A/C                         Dr
                To Purchase suspense A/C          Cr

On issue of material by the depot to the consuming department, an issue note is prepared and this account is credited. The transaction would be

                Revenue Demand/Work concerned        Dr
                Stores-in Stock A/C                                         Cr
               
2.       Purchase Suspense Account:When the material is supplied to the depot by the supplier, he receives a receipt note copy which is essential for him to claim payment. While the depot accounts for the material, payment is made by Accounts office. Therefore transactions where material is received but payment is yet to be made are passed through Purchase suspense. The receipt note copy of Accounts when received in the Purchase section, the Purchase Suspense is credited. When the bill of the supplier is received for payment and passed this account is debited as the corresponding credit is already available when Stores in Stock is operated. The transaction thus would be;

                Purchase Suspense A/C                                Dr
                To Cheques& Bills A/C                   Cr

                While the above reflects the payment made after receipt of material, there are cases of advance payment to Suppliers in which case the Suspense account is first debited with corresponding credit to Cheques& Bills. On receipt and accountal of material, Receipt note forms the basis for affording credit against the debit for advance payment made. While a healthy balance in Purchase suspense would be credit, at times there can be debit balance in this account representing payments made to supplier but material not received in depot and accounted for.

3.       Stores-in-Transit: Whille the stores are normally stocked in depots for issue to consuming departments, at times there will be transfer of store from one depot to another either within zonal railway or between zonal railways. When such transactions take place, the stores in stock eeA/c of both the issuing and receiving depot are to be credited and debited. e.g., ABC depot transfers material to PQR depot and the transactions are recorded as under:

                Stores In Stock A/C PQR depot                  Dr
                To Stores in Stock A/c ABC depot              Cr

                However, it may so happen that the receiving depot receives the vouchers but actual material has still not reached the depot due to delay in transit. In such case the receiving depot operates a temporary suspense account called ‘Stores in Transit’ which is accountd as under

                Stores in Transit A/C of PQR depot           Dr
                To Stores in Stock A/C of PQR depot   (-) Dr

                On actual receipt of material by the dpot, the Stores in Transit account is reversed as under:

                Stores in Stock A/C of PQR depot             Dr
                To Stores in Transit A/C of PQR depot     Cr

4.       Stock Adjustment Account: This suspense account is operated for recording differences arising out of;
1.)    Variation in stock noticed during:

 (a) Periodical Accounts Stock verification.
(b) Departmental stock verification.       

2.) Variations in price of stock due to

     (a) Change in price of products purchased from market.
     (b) Change in price of products manufactured in workshop.

3.) Difference in Book Value and actual value realized on Scrap sale.

4.) Miscallaneous:

(i) Difference due to loss, theft obsolescence etc.
(ii) Miscellaneous
(iii) Loss on account of classification of new material as second hand
(iv) Rounding off
(v) Value brought on books through depot stock sheets pending receipt of vouchers.

                The debits and credits to this account are posted separately and reconciled regularly so as to ensure that balance under this suspense account is cleared every six months. All items of small value which do not serve any useful purpose by keeping in SAA serve no useful purpose should be cleared to final heads. Items remaining uncleared at the end of each quarter , unless it is established  by advanced enquiry that there is a possibility of their clearance in the next month or two should be reported to G.M. for obtaining orders as to the Heads of accounts to which they be debited or credited.

5.       Miscellaneous advance Capital: Some of the stores stocked are not products ready for consumption by the users as these are in the form of raw material and need to be issued for fabrication before actual issue. Such issues when given for fabrication are temporarily lodged under the suspense head MAC. The value of the raw material issued is Dr. to MAC with corresponding credit to Stores in Stock A/c of the depot. When the material is fabricated and issued to users the value of such product (includes fabrication charges) is credited to MAC with corresponding debit to the user department. As the Credit in MAC is more than the debit, the same is cleared by way of payment of fabrication charges.
6.       Sales Suspense: This suspense is opposite to that of Purchase suspense in its operation i.e., while Purchase Suspense is credited with value of material received, sales suspense is credited with scrap sold. When the scrap is sold in auction, the EMD and Balance Sale Value paid by the successful bidderare first placed at the credit of Sales suspense. This is done as there is atime gap between the sale of scrap and actual delivery of the material by the purchaser. The transactions are as under;

On receipt of MCR for EMD/BSV paid by the successful bidder  

Remttance Into Bank A/C                         Dr
        To Sales Suspense A/C                  Cr

On receipt of Issue note for having delivered the material

        Sales Suspense A/C                        Dr
        To stores in stock (scrap) A/C     Cr

Sales suspense should always have a credit balance. A debit balance in stores in stock represents either material delivered without payment having received or material received in excess to the qty sold in auction. Only in case of sale to foreign Railways this account is debited first and when the foreign railway accepts the debit sales suspense is credited.

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Wednesday, November 6, 2019

eRA - Reverse Auction


Reverse Auction
By Shri Joseph Selvakumar, SSO(A)/Trichy


·         eRA  - Electronic Reverse Auction  - Software developed by CRIS - Centre for Railway Information Systems, New Delhi
·         Major reforms initiative for all  high value procurements
·         Similar to a unique bid auction
·         major reforms initiative has decided to implement Electronic Reverse Auction for all high value procurements.
·         Similar to a unique bid auction as the basic principle remains the same.
·         in eRA, roles of buyers and sellers are reversed.
·         In oridnary auction i.e., Forward auction, buyers compete to obtain goods or services by offering increasingly higher prices ( like we experienced in Scrap auction at Railway Scrap Depots)
·         In eRA - Electronic Reverse Auction, the sellers compete to obtain the business from the buyer and prices will be typically decreases as the sellers underbid each other to obtain the contract.
·         eRA - extended to all Zonal Railways, Production Units and Railway PSUs

·         eRA applicable to

ü  Supplies  - Rs. 10 Crores each and above
ü  Works  & Services   - Rs. 50 Crores each and above

Advantages of eRA

ü   Saving in cost due to increased competition. Expected to save Rs. 10000 crores on over all procurement of Goods worth Rs. 50.000 crores and of track materials worth of Rs. 10,000 crores and projects worth of 1,00,000 crores.
ü   Ease of doing business.
ü  Eliminates human intervention
ü  Paperless transactions
ü  Easy to operate the software by all without charging any fees.
ü  Entire process becomes online and digital
ü  Buyer is the primary beneficiary.
ü  Lot of saving in procurement/purchasing costs
ü  Saving in time, thus resulting timely and speedy procurements. completes in 3 to 8 hours instead of 6 weeks duration in traditional auction.
ü  More transaparency
ü  Negotiations through multiple rounds of bidding are eliminated.
ü   Suppliers are able to see the bids of others and thus buyers benefit from the vendors "fighting the price out"
ü  It removes geographical limitations, since same is online process.
ü  Provides a level playing field among the vendors.
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