Error Sheets - Accounts Office Debits & their clearance

 

Traffic Accounts - Accounts Office Debits & their clearance 

                28th Chapter of Accounts Code Vol. 2 

Source: Accounts Code Volume 2 

Error Sheets:  

• Debits raised by the Accounts Office 

• When a mistake involving apparent loss to Railways    

• As a result of an Internal check of Traffic documents and returns rendered by Stations 

• Through an Error Sheet (Form No. A.2802)  

• Full particulars of the transaction along with reasons for the Debit

• In 3 copies (1st copy - Accounts, 2nd and 3rd copy - the concerned Station) 

• In 4 copies (if a separate Outstanding branch of the Commercial Dept is there)  

• Computerized environment - sent through FOIS/TAMS Errorsheet module  

• Manual ones - Signed by SSO(A) or as may be decided by the FA&CAO(T).   

• In FOIS/TAMS - Validation is done by the system itself. Hence signature not required. 

Exceptions: 

1. Undercharges up to the limit minimum limit - individual items of Coaching and Goods Revenue  (The rationale is the principle of Materiality Concept) 

2. Time-barred claims  - 6 months 

3. If any document is not susceptible of check for want of any information from the station staff or traffic dept.  

4. An undercharge coming to the notice after the expiry of the time limit i.e., 6 months due to the negligence of the Accounts Office (in such case suitable action should be taken against the Accounts staff at fault)

 

Errorsheets - Personal check of Accounts Officer before issue  

• Rs.50 to Rs.100  - 10% check

• Rs.100 and above - 100% check  

• Any doubt about the correctness of the charge, the Accounts Officer should consult the Traffic Dept officer. In case of dispute between the two, the matter referred to the Dy.CCM or CCM for final decision. 

Register of Error Sheets:  

• Before issue, all Error Sheets entered in the Register 

• Form No. A 2808 

• If necessary, more than one register should be maintained with a suitable code letter prefixed before the number to distinguish it from the other.  

• Computerized environment - automatic entries 

Admitted Debits: 

• Takes into the Station Accounts (on the Debit side) by the Station Master

• Fill in the name and designation of the responsible person in the Error sheet. 

• Inform when should be paid or deducted from the salary of the person responsible. 

Disputed Debits 

 

• The grounds of objection are fully and clearly stated on the Error sheet. 

• Returned to the Accounts Office and the Outstanding branch of Commercial Dept (if existed)    

Clearance of Debits / Error Sheets:  

By deduction in the Salary bill of the concerned staff (if admitted)

By the Outstanding Branch of the Commercial Dept.

• Acts as a liaison between the Station staff and the Accounts Office 

• After scrutinizing the error sheets, if a Debit is to be withdrawn, the same is advised to the Accounts Office  

• Sometimes, in extenuating circumstances, the whole or a part thereof is written off by a duly authorized Commercial Officer, the Accounts Officer being advised  

Through Overcharge Sheets: 

• Where Error Sheets are adjusted through Overcharge Sheets, the Debits need not be withdrawn. 

• The station should take the same Credit in the Station Balance Sheet on the authority of the Overcharge Sheet.  

• Certified by the Station against whom the debit does not lie or by the competent Commercial Officer 

By Written off: 

• Either part or full amount in Error Sheets is written off by the authorized Commercial Officers. 

• The sanction to the write-off should be checked in the same way as other sanctions. 

CAN - Credit Advice Note:  

• If the disputed debit is found incorrect, the same is withdrawn through CAN 

• Form No. A-2811 

• Basis for taking as Special Credit in the Station Balance sheet 

• Issued only for such Error Sheets as have been taken into account by the station and are outstanding the same.  

• Reference to CAN - should be made against the connected entry in the Register of Error Sheets 

• Computerized environment  - CAN be generated online through the system (FOIS/TAMS) 

Keypoints for MCQ:

1. Error Sheet - 3 copies (1st - Accounts Office, 2nd & 3rd - Station) 

2. Error Sheet - 4 copies (If a separate Outstanding branch exists in the Commercial Dept) 

3. FOIS stands for Freight Operations Information System

4. TAMS stands for Traffic Accounts Management System 

5. CAN stands for Credit Advice Note 

6. Time-barred claims - 6 Months 

7.  Personal check of Accounts Officer on Errorsheets 

• Rs.50 to Rs.100 - 10% check 

• Rs.100 and above - 100% check 

8. The Outstanding branch in the Commercial Dept acts as a liaison between the Station staff and the Accounts Office 

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Traffic Accounts - Worked Lines - 31st Chapter of Accounts Code Vol. 2

 

Traffic Accounts - Worked Lines - 31st Chapter of Accounts Code Vol. 2 

 

What is Worked Lines?   

 

Answer: The Worked Lines, that are 

·        Constructed at the cost of Branch Line companies, Private Companies, JV - Joint Venture companies, Local Bodies, State Governments etc (PPP- Public Private Partnership) 

 

·        Worked by the Main Line System i.e., Indian Railways 

 

• Agreements (entered with the above bodies) -  Basis for Working as well as the apportionment of the revenue & expenditure of such Worked Lines. 

 

• A copy of the said Agreement with main features should be maintained in the Accounts Office and updated for reference if required. The features are:   

·        The Gross revenue of each Worked Line 

·         Percentage or proportionate share or actuals to be recovered from each line as working expenses, 

·        The rebate to be allowed under certain conditions, 

·        Principles of apportionment, 

·        GST provisions etc, 

 

Apportionment between the Main Lines i.e., Indian Railways and the Worked Lines:

 

• Coaching Revenue includes 

·        Fares and freight charges proper for carrying the various kinds of Coaching Traffic  and 

·        Other special charges such as Pilgrim tax, Poll tax or GST and Cartage charges, etc.  

• The Taxes and terminal charges - if leviable and included in fares 

·        Creditable to the parties concerned 

·        Excluded from the fares before apportionment.   

• Cartage charges: 

·        Not payable to the Worked Lines; 

·        Deducted from the Freight before apportionment.  

•  Special Charges - Excluded:

·        Those that do not pertain to Worked Lines are levied for specified purposes unconnected with the Worked Lines and should be excluded from the fares & freight before apportionment. If specifically mentioned in the Railway Board guidelines or explicitly mentioned in the Agreement, the same is Included in the Fares & Freight.    

• Undercharges - The Correct amount to be apportioned regardless of the amount collected. 

• Overcharges - No credit to be afforded to Worked Lines. So it should be excluded before the apportionment.  

• Penalty/Clerkage charges  - As is where is basis. That means Credited to the Main Line Station or Worked Lines Station as the recovery is done at Main Line Station or Worked Line Station respectively.  So no apportionment. 

 

Apportionment of Carried Over Traffic: 

• If within the Zonal Railway  - Based on the Agreement 

• In the absence of the above, either Matrix in CAS - Central Apportionment System or through FOIS - Freight Operations Information System as provided by the CRIS 

 

• As per the guidelines of Para 868 of Finance Code Volume 1 and Para 2324 of Accounts Code Volume 2   

Items to be deducted before apportionment: 

1. The Taxes and Terminal charges 
2. The Cartage charges  
3. Overcharges
4. All Special charges (which do not pertain to Worked Lines) are levied for specified purposes unconnected with the Worked Lines.   

 

Other Traffic:

• The following items which are creditable to the Worked Lines - should be picked up from the Station Balance Sheets of Worked Line Stations only 

 

Coaching Traffic:  

 

1.     Left Luggage, Wharfage & Demurrage  

2.     Platform Tickets 

3.     Excess in Booking 

4.     Telegraph Revenue 

5.     Special Debits taken by Station in the Coaching Balance Sheets, but not accounted in the returns submitted to the Accounts Office  

 

Goods Traffic: 

 

6.               Demurrage & Wharfage 

7.               Special Debits taken by Station in the Goods Balance Sheets, but not accounted for in the returns submitted to the Accounts Office  

• Items debitable to the Worked lines, that is, items of credit taken by stations of the Entire System in their Coaching or Goods Balance sheets in respect of: 

1.     Overcharge sheets pertaining to Station's outstandings 

2.     Previous Debits withdrawn

3.     Reversal of Credits., and 

4.     Re-booking etc.,   

 

Payments to Worked Lines: 

• Statement prepared every Month
• Net Revenue = Gross Revenue minus share of working expenses
• Rounding off to the nearest rupee
• Passed on to the Books Section (of the Accounts Office) for arranging Payment to the Worked Lines  

 

Advance Payments: 

• In some cases, Advance payments is allowed. 
• A certain percentage of Advance payment of Revenue to the Worked Lines
• Quarterly or Half Yearly 
• Actual Revenue on that date plus Approximate Revenue for the rest of the period will be based for calculating the Advance payments. 
• Necessary adjustment between Actual and approximate figures- Should be made at the time of the yearly final payments, when actual Revenue for the whole year are known.   

 

Test Check: 

• Very difficult for automatic reconciliation to prove the accuracy of Worked Lines accounts.
• The important one is compiling Worked lines accounts taking lakhs of transactions in each month
• Hence, a Test check of Worked Lines Accounts is necessary. 
• The Accounts prepared by the Staff should be subjected to a rigorous test check by the Supervising staff as well as by the staff compiling the Accounts

 

Note: The Word Revenue is used in place of Earnings.  

 

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