Check and Payment of Stores Bills

CHAPTER XXVIII

CHECK AND PAYMENT OF STORES BILLS

Direct payments, 2802

Book Adjustments, 2803

Payment for Direct Purchases by the Controller of Stores, 2804

Check of Purchase Orders , 2805.

Uncomplied with Purchase Orders, 2806

Check of Receipt Notes, Part III of S. 719 or 726. 2807

Periodical Summary of Credits to Purchases Account, 2808

Purchase Account Registers, 2809

Abstract off Purchase Account Registers, 2813

Debit Balances in Purchase Account Register, 2815

Review of Purchase Account Registers, 2816

Bills for Supplies, 2817

Check of Supplier's Bills, 2819

10 per cent Bills, 2820

Defacement of Part II of the Receipt Note, 2821

Risk Purchases, 2823

Abstract of Bills, 2824

Prompt Payment of Bills, 2825

Paid Bills, 2826

Watch over Suppliers against Contracts, 2827.

Payment for Direct Purchases from Abroad, 2828

Custom Duty Bills, 2830

Clearance Contractor's Bills, 2831

Port Trust Bills, 2832

Bills paid through Book Adjustments, 2833

Debits by Foreign Railways, 2834

Exchange Accounts, 2835

Purchases through the Directorate General of Supplies and Disposals, 2836

Percentage Charges, 2837

Supplies of Stationery & c., by the Controller of Printing and Stationery, 2838

Printing and Binding work done by the Controller of Printing and Stationery, 2839

Expenditure Register, 2862

Accountal of Earnest Moneys and Security Deposits for Tenders and Contracts, 2863

CHAPTER XXVIII

CHECK AND PAYMENT OF STORES BILLS

2801. The liabilities incurred in connection with 'receipts' of stores are discharged either:

(a)by direct payment ; or

(b)by means of book adjustments.

2802. Direct Payments- Bills in respect of which direct payments are made, are in respect of:

(a)Purchases arranged by the Controller of Stores

(b)'Local purchases' of petty stores, arranged through the Directorate General of Supplies & Disposals, in cases in which- the Directorate General of Supplies and Disposals has authorised direct payment to the Suppliers

(c)Supplies of timber;

(d)Supplies of Coal, Coke and oil fuel;

(e)Sewing and tailoring charges ;

(f)Customs duty on 'imported stores';

(g)Loading and unloading charges due to contractors ;

(h)Port dues, wharfage, etc.

These are in respect of bills submitted for payment in terms of contracts placed by the Rlys.

Book adjustments- These are inrespect of:

(a)railway inter-departmental transactions as in the case of stores returned to the Stores Depots and manufactured stores supplied by railway workshops to Stores Depots these items have been dealt with in Chapter XXVII;

(b)payments due to other Government Departments where the Exchange Account facility is available;

(c)payments due to other railways.

2804. Payment for Direct Purchases by the Controller of Stores -In all cases of direct payments, the procedure for the internal check of bills for stores supplied should generally include;

(i) a check of the Purchase Order (S. 714) on firms as, described in paragraph 2805;

(ii)a check of the Receipt Notes (S. 719 or 726) which notify the actual receipt of the stores ordered for, as described in paragraph 2807 ; and

(iii)the maintenance of Purchase Account Registers (S. 2809) to enable a record being kept of the liabilities incurred on account of stores purchased from each supplier that have not been discharged by payments, pending the detailed check of bills as described in paragraph 2818 to paragraph 2821.

2805. Check of Purchase Orders -As stated in paragraph S. 715, a copy of the Purchase Order will be received by the Accounts Officer, Stores, direct from the Controller of Stores. On receipt of this, he should see:

(i)that there is continuity in the number of Purchase Orders (missing numbers should be reported to the Controller of Stores for necessary action)

(ii)that items of stores, Purchase Orders of which are beyond the powers of purchase by the Controller of Stores have been sanctioned by the competent authority ;

(iii)that the Purchase Orders do not infringe the Purchase Policy Rules in Chapter III

(iv)that the Purchase Orders do not contain any items of stores which should be purchased through the Directorate General of Supplies and Disposal; and other nominated agencies except in emergencies;

(v)that there is no great variation in the rate adopted from time to time for the purchase of the same kind of material ;

(vi)that the rates and other particulars are in accordance with the agreement with the contractor in case where a contract for the supply of material is in force;

(vii)that there are no erasures, overwritten figures or unattested correction in the Purchase Orders ; and

(viii)that the Purchase Orders have been signed by a Gazetted Officer of the Stores Department, authorised to do so.

2806. Uncomplied with Purchase Orders. -ThePurchase Orders should then be kept arranged serially group by group or in any other order as may be decided upon by the FA & CAO.

2807. Check of Receipt Notes Part III of S. 719 or 726. – The next document to reach the Accounts Officer is usually the Receipt Notes (S. 719 or 726) Part III, in cases where payments are not to be made on proof of despatch (S. 2815).

(i)The number and date of Receipt Note should be entered on the connected Purchase Order. The Receipt order No. and date for stocked items should also be indicated on the Purchase Order, for facilitating review of Suspense Register at later date.

(ii)The rates and quantities on the Receipts Note should be compared with the rates-and quantities shown on the Purchase Order and the Receipt Note should be enfaced 'Checked with Purchase Order' over the initials of the clerk responsible for the check. In case of part supplies, a note of the quantities supplied should be made on the Purchase Orders.

(iii)The 'value' should be calculated and entered into the 'amounts' column of the Receipt Note. In calculating the value of each item of stores, the total value should be rounded off to the nearest praise.

(iv)It should be seen that there are no overwritten figures, erasures or unattested correction on the Receipt Note, and that the number of the Receipt Notes is in consecutive order.

2808. Periodical Summary of Credits to Purchase Account. –Where the stores accounting of a railway has been decentralised it is necessary to provide for the individual Stores Accounts Offices to be advised of the day-to-day credits to the Purchase Account maintained at the Headquarters Office in respect of materials pertaining to depots served by such offices. In such cases, therefore, after the above checks have been applied, the Receipt Notes received each day from the stores depots or any authorised inspecting and receiving agency should be sorted by the depots to which the stores are consigned, and listed separately for each depot in the form similar to the Periodical Summary of Issues (S. 2702) showing the number and the date of the Receipt Note and the value. These summaries will be called "Periodical Summaries of Credits to Purchase Accounts (S. 2808)" and sent periodical to the local Stores Account Officeconcerned alongwithPart IV of theReceipt Notesincluded therein. The totalof these summaries for a month should agree with the total credits for thesame month in the Purchase Account Register for stores for stock.

2809. Maintenance of Purchase Account Register. -Generally 'Purchases' are made first and ‘payments’ follow. In order to record each transaction as it takes place, Purchase Account Register should be maintained head of accountwise by the Stores Accounts Office in the form shown below:

Form No. S. 2809

.……..…. Railway

PURCHASE ACCOUNTS

FOR………………………………………………………………….

Name of Contractor and Address……………………………………………..

Sl.No. / AB No. or TC No and Date / Debit Voucher No
Order No & date / AT No & date / Receipt Note No. & date / Receipt Order No and date / Inspection Note No & date / RR No/ & date
1 / 2 / 3 / 4 / 5 / 6 / 7 / 8
Quantity / Rate
Rs. P. / Opening Balance / Month…………………… / AND SO ON
Due to Vendors Rs. P. / Due by Vendors
Rs. P. / Supplies / Payments / Balance
Due to Vendors / Due by Vendors
9 / 10 / 11 / 12 / 13 / 14 / 15 / 16 / 17

Purchase Account Registers should have separate pages reserved for transaction of each firm or contractor and should be provided with sufficient columns to record details continuously for three years in case of suppliers whose contracts run for more than one year at a time or who are known to have frequent and regular dealings with the Stores Department. Where space permits, the same page may be used for more than one A.T. or Order, enough space being left between two A.Ts or Orders for the number of payments likely to be made on each A.T. or order. In respect of suppliers whose contracts are not expected to run beyond a year, and whose dealings with Railways are frequent a smaller size of register may be used which provides columns for only twelve months (i.e. one financial year). The Purchase Accounts Registers should be chronologically numbered for a financial year, and should be capable of being identified by the year and serial number of the Register. After checks prescribed in paragraph 2807 have been applied the Receipt Notes, Receipt Order Number, Railway Receipt No. and date, Quantity, rate and value of supply should be entered in the Purchase Account Register as a credit to the account of the supplier. Reference to the Register No. and the page number of the Purchase Account Register should be quoted on each receipt Note at the same time. When the bills for stores supplied is received from the supplier, it should, before being passed for payment, be checked against the credit in the Register, and if the amount billed for is found to agree with the credit the same should be entered as a debit against the entry of credit. Differences, if any, should be immediately investigated and rectified. No bill should be passed for debit to 'Purchases' unless the corresponding credit already appears in the Register except in case of advance payments to firms authorised to receive such advance payments.

Note-For hundred per cent supplies, Purchase Account Registers may, if considered, convenient, be maintained depotwise in the serial order of the Receipt Note without allotting a separate page for each supplier. All the particulars prescribed in form S. 2809 should be posted in this form for each entry. If the items are not likely to get cleared within the same year, the register may be designed to accommodate 2 years transaction to save tune in carrying over of Balances.

2810. Deleted.

2811. Deleted.

2812. Deleted.

2813. Abstract of Purchase Account Registers.- At the end of each month abstract should be made in the following form by bringing together the transactions-debits, credits and balances of each contractor.

Form No. S. 2813.

ABSTRACT OF PURCHASE REGISTER FOR THE

...... YEAR

ALLOCATION

Name of Vendors / Balance from last month / Month / Month
Due
to Vendor / Due
by Vendor / Credits / Debits / Balance / Credits / Debits / Balance

2814. The vertical total of the figures for the month will represent the debits, credits and balance for the month, of the Purchase Account (Capital 7200). Subject to the exception stated in paragraph 2815, a debit balance should not be permitted in the Purchase Account Register. If a debit balance arises from any other cause it should be investigated and removed at once.

2815. Debit Balances in Purchase Account Register.-It occasionally happens that bills for stores supplied are received, supported by the railway receipt, in advance of intimation of the actual arrival of the stores, and that payment has to be made before the stores have been acknowledged as received in the stores Department. Such cases of payment prior to the actual debit to stores should be permitted only in the case of well known firms of commercial standing;; but when they do occur, the payment made is usually 100/98/95/90 per cent of the value of stores despatched and should be debited to 'purchases account' even though there is no credit and a debit balance will consequently ensue. When such bills are passed, the postings shall be made in a separate Purchase Account Register reserved for the purpose and immediate steps should be taken to clear the debits in the Purchase Account, by debits to 'Stores' on acknowledgements of the Stores by Depot Officers. In the Purchases Account Registers the amount will be posted separately as a debit balance against the account of the supplier concerned.

2816. Review of Purchase Account Registers.-It is imperative that thepostings of credits in the Purchase Account Registers should be correctly made and that they should be unto date, as arrears or incorrect postings will cause delay in passing bills for payment. The register should beinspected once a week by the Section Officer and once a month by the Stores Accounts Officer.

2817. Bills of Supplies. –Bills for the supply of stores should be prepared by the suppliers in Form S. 2817 and sent direct to the Accounts Officer, Stores, of the railway for payment.

Form No.S.2817

BILL FOR STORES PURCHASED

The……………………………………………………………………Dr To……………………………………………………for stores supplied by him on purchase order

No……………………………Dated………………………………………………………………

Authority for Purchase / Description of Stores / No. or Qty . / Rate. / Price / Amount
Rs / P. / Rs. / P / Rs. / P
*Total

* ( In words) Rupees ……………………………..

______

Despatch detail
Place and Date / RR.No.………………..dt………………(Inspection Certificate dt…………….…………

Signature of Supplier

Certificate regarding Rates

Certified that rate(s) shown in the bill agree(s) with the rates (s) shown in the purchase order

Bill passing Clerk

______

Certificate regarding Credits

Certified that necessary credits available in the Purchase Accounts Register vide receipt

No. ……………………

(Purchase Register No…………………………Page no……………………………….)

______

(Audit entries to be made in the Accounts Office)

Audit No……………………………………………………date……………………

Entered in Audit Abstract No………………………………and date……………..

Passed for Rs.………………………………………………( )………………….

Amount passed Rs…………………………………………………………………

Less deductions of Rs…………………………………………………………………

Net amount payable Rs ……………………………………………………………

Rupees ( in words ) .………………………………………………………………….

Chargeable to ……………………………………………………………………….

Posted by ………………………….. Checked by ………………… Chief Accounts officer

Certified that debits have been posted in the Purchase Accounts Register vide Register No …………………… Folio No ……………………….in the Accounts for ……………………..
Purchase Section

(Entries to be made by pay Department )

Cash entry dated…………………………………….Amount paid Rs…………………………….

Amount un-paid Rs………………………………….Total Rs……………………………………

Head pay Clerk

2818.Bills may not be submitted in duplicate by suppliers. The bills should be supported by Part-II of the Receipt Note (S. 716 or 726) granted by the depot receiving the supply. Bills that are not supported by the Receipt Note should be returned unpaid to the party presenting the bill. An exception is made in thecase of 95 per cent bills, vide paragraph 2815. Duplicate copies of Part II of the Receipt Note should not in any circumstances be issued to the suppliers by the depots. All applications of this nature should be addressed to the Chief Accounts Officer who will take any necessary action in the matter.

2819. Check of Suppliers bills. --(i) On receipt of the bill it should be stamped with the date

Stamp of the Office and examined to see: -

(a) that the bill is prepared in standard form and if not prepared in that form, that all the necessary particulars required by the form are given, and

(b) that is marked 'original' and is free from erasures and unattested corrections and bears the signature and address of the vendor.

(ii) The bill should then be registered and numbered in a Register of Bills and passed on

immediately to the rate verification clerk, who should verify the correctness of the rates and quantities charged in the bill with those given in the copy of the Purchase Order received direct from the Controller of Stores. The certificate of the correctness of rate and quantities should be signed by the Section Officer, in charge of the section who should also see that the particulars of bills are noted on the Purchase Order to keep a watch over the quantities supplied against an order from time to time. When the order is completed and payment made in full, the purchase order should be stamped 'COMPLETED'.

(iii) The bill should then be passed on to the clerk responsible for checking the totals and calculations, who should also see: -

(a) that the rates, quantities and nomenclature in the bill agree with those given in the Receipt Note Part II; the latter being compared with Part III of the Receipt Note (S. 719 or S. 726). received direct in the Accounts Office (see paragraph 723 and paragraph 729);

(b) that the rates are given both in words and figures;

(c) that the Receipt Note Part II is signed by the Officer authorised to do so and his signature agrees with the specimen signature kept in the Accounts Office;

(d) that the purchase is made by the authority competent to do so and in accordance with the rules in force;

(e) that any extra charges claimed by the contractor such as freight and insurance, etc. are accepted by the Stores Department and are in accordance with the terms of the agreement; and

(f) that all recoveries due from the contractor are made

(iv)The Purchase Account Register Clerks should then verify the amount lying at the credit of the contractor in his ledger. The amount for which the credit is verified should be written on the bill by the purchase ledger clerk under his initials. He should quote the accounts bill number and the amount passed in his Purchase Register against the entry of credit received through Receipt Order, Part III and also post thevalue of the bill as debit in the Purchase Account Register. It should be ensured that the allocations given in the Bill by the Bill passing section agree with the allocation of the Purchase Account in which the credit is outstanding. Once this is done, the Register No…………………………… Folio No………………………………………

of the Purchase Account Register should be noted as a proof of posting the item. Except in the case of bills referred to in paragraph 2815, no bill should be passed unless a credit exists in the Purchase Account Register. (The Controller of Stores should furnish to the Account Office a list of the suppliers entitled to the concession referred to in paragraph 2815).

(v)In case no credit has been received through Receipt Order, Part III, the bill should be kept pending till the receipt of such credit and inquiries made of the depot regarding the delay in the submission of the Receipt Note.

2820. 5/10per cent bills etc: - The procedure in paragraph 2817-S etc. will be followed mutatis mutandis.

2821Defacement of Part II of the Receipt Note. -After each bill has been audited the head of the sub-section will see that the acknowledgement of receipt of the stores, i.e. Part II of the Receipt Note is punched and enfaced with the following stamp:

Stores supplied under this receipt have been passed for payment under bill No…………………. dated…………….. in the Accounts for ………………………….for Rs…………………………