Chapter-21 CDR Accounting - training.bsnl.co.in · ©BSNL, India For Internal Circulation Only 2...

E4-E5 Core Rev. Date: 31-03-2016

©BSNL, India For Internal Circulation Only 1

Chapter-21

CDR Accounting



Contents Page No.

1. Introduction to Accounting 3

2. Accounting Scope 4

3. Process Flow 6 4. Chart of Accounts 8

5. Accounting for Invoices and Related Payments 13 a. Invoice Generation and Complete Payment in the same SSA 14 b. Excess/Double Payments when payment is made in the Billing SSA 16

c. Partial Payments made in the Billing SSA 19 d. Remittance to different SSA, Same Circle (Complete payment) 22 e. Remittance to SSA of Same Circle (Partial Payment) 24

f. Remittance to different SSA of same Circle (Excess Payment) 28 g. Remittance to SSA of different Circle (Full Payment) 29 h. Surcharge on delayed payments (Late fee) 30

6. Accounting for GSM Collections 30 a. GSM Invoice of one Circle, Payment in SSA of same Circle 30 b. GSM Invoice of one Circle, Payment in SSA of different Circle 31

7. Adjustments 32 a. Debit Voucher

b. Credit Voucher 34 c. Cancellation of Invoice 36

d. Write off of Bad Debts 36 e. Collection against Write off 37

8. Payments from Various Channels 38 a. Payments on CSR counter 38 b. Payments from Post Offices 39

c. Payments from Banks 40 d. Payments through ECS 42

e. Payments through Bill-desk f. Payments involving units outside the CDR system(ERU) 44

9. Cheque Dishonour Scenario 49 10. Missing Daily Lists Scenario (Unadjusted Credits) 53

11. Reconciliation of channel payments 54 12. Accounting for sale of Pre-paid Cards/Modem through PMS counters 54 13. Accounting for Advance Payments 55

14. Period End Closing Activities 56

a. Income Received in Advance 56

b. Accrued Income 57

c. Interest on Deposits 57 d. Accrued Interest on Deposit 58

15. Refund 61

16. Accounting treatment for OYT rebate in CDR System 63 17. Implementing Bundled PC EMI solution in the CDR system 64

18. Migration Strategy 66 19. Revised Strategy for Financial data/Delta payment Migration 69 20. Journal entries for migrated financial data 89 21. Handling third party vendor payments collected through CDR invoices 96 22. Accounting for Zonal Electronic Stapling(ES) 99



23. Handling of ES discount in CDR Accounting 104 24. Account Settlement procedure 105 25. Accounting module-Oracle applications-Operation guidance 108 26. Accounting for amended Service Tax Rules -Point of Taxation 113

List of Figures Page No. Figure 1: Process flow for Accounting 3

Figure 2: Billing and complete payment in the same SSA 15

Figure 3: Excess or double payment in the same SSA 16

Figure 4: Excess or Double Payment Adjustment in the next invoice 18

Figure 5: Refund of Excess or Double Payment 19

Figure 6: Refund for closed/surrendered connections 19

Figure 7: Partial payment made in billing SSA 20

Figure 8: Partial Payment adjustment in next cycle 21

Figure 9: Remittance to different SSA in same circle 23

Figure 10: Remittance to different SSA in same Circle (Partial Payment) 25

Figure 11: Remittance to different SSA in same Circle

(Partial Payment Adjustment) 27

Figure 12: Remittance to different SSA in same circle (excess payment) 28

Figure 13: Remittance to an SSA in different circle (full payment) 29

Figure 14: Surcharge on delayed payments(Late fee) 30

Figure 15: Accounting for GSM Collections: Payment in SSA of same Circle 30

Figure 16: Accounting for GSM Collections: Payment in SSA of diff. Circle 31

Figure 17: Debit Voucher: Settlement of short billed invoice 33

Figure 18: Accounting for debit voucher (Settlement of short billed invoice)

on generation of next invoice 34

Figure 19: Accounting for Credit Voucher where the bill is fully settled 35

Figure 20: Accounting for Credit Voucher on Gen eration of new Invoice 36

Figure 21: Accounting for Write Off of Bad Debts 37

Figure 22: Accounting Entry on Billing 38

Figure 23: Accounting entry on receipt of daily list 38

Figure 24: Accounting entry on receipt of TRC Schedule and Cheque 38 Figure 25: Accounting entry on receipt of daily list from Head Post Office 39 Figure 26: Accounting entry on receipt of TRC Schedule, Cheque from HPO 40



Figure 27: Accounting entry on receipt of payment information from Billing 40

Figure 28: Accounting treatment for Discount on ECS 41

Figure 29: Accounting entry for Missing Daily list 53



1.Introduction to CDR Accounting

The integrated accounting has been implemented for the first time in BSNL through the CDR based Operation

Support System/Business Support System(OSS/BSS). The whole accounting process is automated and taken

care of by the system with hardly any user intervention. Accounting is done in the CDR system based on actual

details.

The main sources of information for Accounting , at present, are:

Zonal Billing System

Zonal Payment Management System

The accuracy and timeliness of data in accounting system depends on data from the above systems:

Following figure is a representation of the various systems that interact with the Accounting system.

Figure:1 Process flow for Accounting

The basic flow within a zone is captured as:

1. Invoices are generated in CDR

2. The billing data is transferred to PMS for receiving payment

3. GL Code based information on billing data from CDR system is sent to the Accounting system

for doing credit posting to Revenue A/cs with corresponding debit posting to the relevant Sundry

Debtors and receivable accounts.

4. Invoices are settled through approved payment channels which operate in offline and online

modes.

5. Each channel operates based on a hierarchical structure of Collection Desk (CD) and Collection

Center (CC).

6. Collection Centre (or Collection Desk) sends payment data directly in the form of daily lists to be

entered into the PMS. CollectionCenter does the monetary settlement with BSNL through PMS.

Zonal PMS

Zonal Billing

System

Zonal Accountin

g System

External Financial System



7. PMS sends daily feed to Accounting - “receiving_SSA” and “Collection_Center” wise .

Based on this ,the Accounting will debit to one of the following accounts:

(i) Claims Recoverable from DoP

(ii) Claims Recoverable from WSC

(iii) Claims Recoverable from Banks

(iv) Claims recoverable from AO (Cash)

(v) Claims recoverable from State Govt IT(E-seva)

(vi) Claims recoverable from EAU(Portal)

(vii) Claims Recoverable from Others etc.

with corresponding credit to “CDR TR Collections account”.

Money from the CollectionCenter will be received at the prescribed frequency and managed by AO Cash

simultaneously.

8. When money received is entered into the PMS (based on Schedule) and the information

transferred to the accounting system the entry will be to Credit „collection center (Claims

Recoverable from HPO/Banks/AO Cash/Others/Bill Desk etc)‟ and Debit „TRC Settlement

account’ operated within the CDR accounting system

9. PMS sends collection information to the home billing system in the form of lockbox files in the

required format.

10. When CDR billing system does the posting of these payments, it sends the GL Code based

payment information to the accounting system. Accounting system does the posting of this by

debiting „TR Collection Account „ and crediting the relevant „Sundry Debtors and relevant Tax

Recoverable heads‟ created based on billing data.

Relevant Remittance Accounts will be used in case Receiving and Owning SSA are different and also

when collections belong to external systems like GSM.

2.Accounting Scope

The objective of CDR Accounting is to implement accrual accounting at a consolidated level.

Scope for Accounting:

o Landline and Broadband: Revenue accounting

o GSM: Payment to be collected by zonal PMS, Remittance to be passed to GSM at circle level.

o Leased Circuits: Payment to be collected by zonal PMS and accounting to be carried out in EFS

(External Financial System) with necessary Journal entry.



o Revenue accounting is to be done based on the feeds from PMS & CDR Billing only and no

other interface is in the scope of accounting at present.

o Accounting system can confirm the consolidated amount received at SSA level and not at

individual transaction level. Reconciliation with individual customer account (which is maintained

at Billing system) is not in accounting scope as only consolidated entries are done based on

feed received from other systems and break up of these entries are available in the base

systems (for payments in PMS and for cleared and outstanding amount in Billing system).

Reconciliation shall be carried out manually by comparing the accounting output of GL extract

and a report from Billing system.

o Debtors are maintained at consolidated level in Accounting and individual customer accounts

are maintained in relevant billing systems.

o Debtors control account is based on service types eg. Landline and Broadband.

Reporting scope (feed for External Financial System)

o GL Extract (SSA Level; for all accounts in the system)

o Trial Balance (SSA Level)

In the existing system of accounting where SSA is the basic accounting unit, any financial

transaction done by one SSA that affects the accounts of another SSA will be settled through the

operation of “Remittance” heads. The idea of maintaining these heads is that while no physical

exchange of money will take place, the impact of the transaction will be incorporated into the books

of accounts of the SSAs involved. For this purpose, the following Remittance heads are used

o Remittance same circle (O) and (R)

o Remittance between circles <Circle name> (O) and (R)

Further Remittance heads are used for parking payments received by PMS related to invoices

generated by GSM etc.

Fiscal Year:

o Fiscal year shall be from 1st April to 31st March.

Currency:

o Reporting currency needs to be INR.

o Billing currency for retail customers has to be INR.

It is necessary to keep the accounts of each month open for a sufficient period in the next month to

ensure that all the transactions are entered into the system. In the existing systems the TR



Accounts for the previous month are open until the 25th of the next month ie upto generation of

SLR reports . In the CDR system also it is proposed to close the accounts by 15th of next month

from now onwards.

3. Process Flow

With reference to Figure 1:

Flow from Billing to Accounting:

o Information required Per Billing Cycle:

GL Code wise billed amount of revenue/adjustments for revenue owning SSAs in each

circle, consolidated SSA wise.

Discounts: As they will be adjusted against amount outstanding as a part of invoice

information, posting in accounting to be done GL Code wise like normal revenue items

during bill cycle run with additional line item in invoice.

Excess/Double Payments: For all SSAs in each circle when adjusted in subsequent

invoice. Accounting will capture this as an additional line item based on the consolidated

GL code wise feed received from Billing system.

Adjustment entries for deposits and interest on deposit will be passed based on the

consolidated feed from billing system. The logic for interest and principal amount break

up is to be maintained at billing system level.

Refunds: As and when refund of deposit is due, refund of double/excess payment and

refund on closed/surrendered connections

Either as an adjustment in next invoice

Or refund is given in the form of a cheque

o Information required Daily

Clearing information in order to clear amount outstanding including both revenue

receiving and revenue owning SSA, consolidated based on Owning and Receiving SSA

is received from Billing at end of day.

Adjustments

Debit Voucher information for all SSAs in each circle.

Credit Voucher information for all SSAs in each circle.

Consolidated feed for Interest on deposit for all SSAs in each circle based on type of

deposit to be posted for provisioned connections based on GL Codes.

o Write-offs:



Write offs are manually done in Billing and posted to Accounting on periodic basis.

Reversal of write-offs not supported

Collections against write-off, if any, will go to „Other Income‟. Posting to be done by

PMS to Accounting.

o At year end, consolidated feed for Interest accrued on interest bearing deposits for all SSAs in

each circle based on type of deposit to be posted for unprovisioned new

connections(prospects) and additional services for existing customers.

o At end of financial year or quarterly as desired, feed file on Accrued Income: Unbilled revenue

items (Earned but not billed) grouped SSA wise upto last day of every month.

o At end of financial year or quarterly as desired, feed file on Advance Income: eg. Rent (Billed but

unearned) grouped SSA wise, revenue unearned and unbilled grouped SSA wise

Flow from Payment Management System to Accounting:

o Daily Basis

Payment information combined SSA wise:

Revenue Receiving SSA

Revenue Owning SSA

Collection Centre: Details of payment received from Head Post offices, Banks,

AOCash, Bill Desk etc.

Information about the bounced cheques both Retail cheques and settlement cheques

Deposit information

For all SSAs in each circle, payment received in the form of deposits. This

information need not be identified as deposits. This identification will be done by

the Billing system

o Periodic Basis (mainly by AO Cash)

Information when schedule is received for Billing System

Consolidated information on amount received.

Collection centre (HPO, Bill Desk etc)

Revenue Receiving SSA

Flow from Accounting to External Financial System

o At period closing, a report containing GL Balances will be generated containing GL Code, GL

Account name, Closing Balance, SSA, Circle.



o An SSA wise trial balance will be obtained.

4. Chart of Accounts:

Following are some important G/L codes introduced for and operated in CDR system:

Allotment of account codes under Current Assets Schedule 113 (Basic segment)

Minor account code:

Detailed suspense account codes

1132300 – „CDR based TRC claims recoverable‟ is allotted

1132301 – „CDR based TRC Claim from DOP‟ 1132302 – „CDR based TRC Claim from Bill desk‟ 1132303 – „CDR based TRC Claim from Banks‟ 1132304 – „CDR based TRC Claim from Cash counter of BSNL‟ 1132305 – „CDR based TRC Claim from State Govt. IT solution channels‟ 1132306 - CDR based TRC claims recoverable from EAU

1132399 – „CDR based TRC Claim from others‟

The following existing account codeswill be utilized for booking of the claims, which are not pertaining to CDR based TRC claims . 1130805 – Claims recoverable from DOP 1130813 – Claims recoverable from Bill Desk 1130816 – Claims recoverable from Bank 1130899 – Others

Minor account code: Detailed suspense account codes

1131000 – „Revenue Accrued‟

1131025 – „CDR based Debit Memo Invoicing‟

1132400 – „Settlement of CDR based transactions with CMTS‟

1132401 – „CDR based claims for bill collection charges recoverable from CMTS‟ 1132402 – „CDR based claims for share of discount on post-paid bills recoverable.

Allotment of account codes under Current Liability Schedule 119

Minor account code:


1194500 – „CDR based TR settlement / adjustment Account‟

1194501 – „CDR based TRC Settlement Account‟ 1194502 – „CDR based TR Collection Account‟ 1194503 – „CDR based Unallocated TR Collection Account‟ 1194504 – „CDR based Credit Memo Invoicing Account‟ 1194505 - CDR based third party system TR collection Account



1194506 - CDR based ATC settlement Account

1194600 – „Settlement of CDR based transactions with CMTS‟

1194601– CDR based claims payable to CMTS for post-paid account‟ 1194602 – CDR based claims payable to CMTS for pre-paid account „

Allotment of account codes under Schedule 419 in CMTS segment:

Minor account code:


4193500 – „Settlement of CDR based transactions with Basic‟

4193501 – „CDR based claims payable to Basic for bill collection charges‟ 4193502 – „CDR based claims payable to Basic for share of discount on post-paid bills‟

1132401-CDR Based Claims for bill collection charges recoverable from CMTS:

With the introduction of PMS, all restrictions on CMTS bill payments get lifted. CMTS bills can be paid at all

payment points accepting Land Line payments. The collection channels are not required to separate out the

CMTS payments. It will remain mixed with the LL payments. Similarly the schedules also will be common. That

is the collection channels will give a single statement along with the settlement cheque. The commission on

collection will be deducted in advance or paid later by the Basic segment even in relation to CMTS Bills. When

we have to do Segment Based accounting, the bill collection charges that Basic segment has paid for collecting

Mobile bills will have to be reimbursed to the Basic segment by the Mobile Segment. In fact even for online

acceptance of mobile bills, the Basic segment should claim a bill collection charges from the Mobile segment.

While in the first instance, the collection charges will be paid by the Basic segment, it will compute the portion to

be borne by the CMTS segment based on a report on channel-wise CMTS bill collection details to be taken from

the PMS.

When bill collection charges are paid by Basic segment, the following entries are passed in basic segment

books. These are passed at the PMS if commission is configured there as for Post Office or passed

manually in the Cash Book when a separate claim for it is received from the channel.

A. PMS dealing with/recognizing the bill collection charges: a. Collection charges are deducted and settlement is only for the net amount (Post Office) Bill Collection Charges (substitute actual GL code) Dr.

To Claims Recoverable from <Channel>

b. When collection charges are computed by PMS although the channel makes a full settlement. Collection

Charges will be paid separately by AO (Cash)



Bill Collection Charges (Substitute actual GL code) Dr.

To TRC Settlement Account

When payment is actually made by the AO (Cash) to the channel

TRC Settlement Account Dr

To Bank/Cash

It may be noted that for all transactions passing through the CDR system, AO (Cash) will operate only TRC

Settlement Account.

2. Bill collection charges settled outside the CDR system.

Bill Collection Charges (Substitute actual GL code) Dr.

To Bank/Cash

In both the above cases another MANUAL Journal Entry will be passed in the EFS as follows:

1132401 'CDR Based Claims for bill collection charges recoverable from CMTS' Dr. To Bill Collection Charges (Substitute actual GL code) Cr. A corresponding entry will be passed in the CMTS Segment books to settle this (Exact GL codes to be taken from the GL code list) Bill collection charges Dr

To 4193501Caims for bill collection charges Payable to Basic Segment 1132402-CDR Based Claims for share of discount on post-paid bills recoverable from CMTS: This is to deal with discounts given in the ES bills which include bills generated in the CMTS System. The

discounts are given on the total ES bill by the Basic Segment. The above GL Code will be used to deal with

that part of the discount to be borne by the CMTS system on account of discounts allowed to its bills.

Allotment of account codes under Schedule 413 in CMTS segment:

Minor account code:


4132000 – „Settlement of CDR based transaction with Basic‟.

4132001 – „CDR based claims recoverable from Basic for post-paid account‟

4132002 – „CDR based claims recoverable from Basic for pre-

paid account „



CDR based TR Remittance Heads –Different circle

Minor account code-

1990900 – „CDR based TR Remittance – Different circle (Originating)‟

1991000 - „CDR based TR Remittance – Different circle (Responding)

Detailed account code

CDR based TR Remittance – Different circle(Originating)

CDR based TR Remittance – Different circle (Responding)

Name of Circle Assam 1990902 1991002

Calcutta Phones 1990903 1991003

Chennai Phones 1990904 1991004

Andhra 1990905 1991005

Bihar 1990906 1991006 Gujrat 1990907 1991007

J & K 1990908 1991008

Karnataka 1990909 1991009

Kerala 1990910 1991010 Madhya Pradesh 1990911 1991011

Maharastra 1990912 1991012

NE I 1990913 1991013

Punjab 1990914 1991014

Orissa 1990915 1991015 Rajasthan 1990916 1991016

Tamil Nadu 1990917 1991017

UP (East) 1990918 1991018

UP (west) 1990919 1991019

West Bengal 1990920 1991020 Haryana 1990921 1991021

Himachal 1990922 1991022

Andaman & Nicobar 1990943 1991043

Chattisgarh 1990950 1991050

Jharkand 1990951 1991051

Uttaranchal 1990952 1991052

NE II 1990953 1991053

CDR based TR Remittance Heads –Same circle

Minor account code-

1991100 – „CDR based TR Remittance – Same circle (Originating)‟

1991200 - „CDR based TR Remittance – Same circle (Responding)‟



Detailed account code

Above remittance heads must not be utilized by any Circle for book transfer of any kind of inter-circle and intra-

circle transactions other than those for TR transactions (revenue and expense) exclusively generated by CDR

based billing system.

Allotment of account codes for Post coneection deposits:

Minor account code:


1132500 – „Post connection deposits recoverable‟

1132501 – Security deposit recoverable 1132502 – Security Deposit (broadband) recoverable 1132503 – STD PT Deposit recoverable 1132504 – Other deposit recoverable

1194700 – „Post connection deposits under recovery‟

1194701 – Security deposit under recovery 1194702 – Security Deposit (broadband) under recovery 1194703 – STD PT Deposit under recovery 1194704 – Other deposit under recovery

The above detailed account codes will be utilized only by CDR Based billing system at the time of raising

invoice for post-connection deposit, collection of such post connection deposits as per invoice and to transfer of

such post connection deposits to final account codes related to different types of post connection deposits. The

above mentioned account codes will not be utilized for any purpose other than the invoicing, recovery and

accounting to final account code of post connection deposits, through CDR based billing system.

The CDR based billing system must ensure that at the end of each accounting period and particularly at the end

of the financial year the balance under each detailed account code of minor account code 1132500 are equal to

the balance of corresponding detailed account code of minor account code 1194700.

The business process rules as per CDR based billing system, must ensure that theclaims raised against the

existing subscribers for additional deposits / new type deposits and accounted by CDR based billing system

under the account codes mentioned above for post connection deposits are settled within a pre-fixed time

frame and no claim raised and accounted under account codes of 1132500 and 1194700 can remain unsettled

beyond the said pre-fixed time frame and CDR based billing system must neutralize such unsettled claims

immediately after the expiry of the said pre-fixed time frame, by passing accounting entries affecting the account

code of 1132500 and corresponding account code of 1194700.

The above account codes must not be utilized for accounting the transactions meant for collections of

pre-connection deposits if any, from the prospective customers.

Since CDR based billing system is account based billing and not invoice based billing the post

connection deposits shall be account based. Therefore, various types of postconnection deposits in respect of

Basic Segment may be accounted under the following account codes only:

1192701 – OYT Deposits

1192705 – Tatkal Deposits



1192710 – Deposits from STDPT Franchisees

1192712 – Security Deposits for Broadband services

1192714 – Security Deposits

1192799 - Others

The various types of deposits which are reflected under 1192702, 1192703, 1192704, 1192706, 1192707,

1192708, 1192709, 1192711,1192713 are transferred to account codes1192714 / 1192799. However, in such

cases the CDR based billing system shall keep separate information internally about each nature of post

connection deposits, which will be clubbed and booked to account code 1192714 / 1192799.

For the purpose of transferring various type of deposits reflected under 1192702, 1192703, 1192704, 1192706,

1192707, 1192708, 1192709, 1192711 & 1192713 by CDR based billing system to account code 1192714 /

1192799 all concerned circles must reconcile the GL balance under the account codes 1192702, 1192703,

1192704, 1192706, 1192707, 1192708, 1192709, 1192711, 1192713 with the sub-ledger / subsidiary records

details and pass on the correct information i.e. reconciled full details of such balances to CDR based billing

system.

The claims / demand notes for pre-connection deposits to be recovered from prospective customers shall be

taken care of by the CDR based billing system internally and such claims / demand notes shall not be reflected

in the external financial system till such claims / demand notes are paid by the prospective customers and after

that it should be booked in the relevant account codes .

Allotment of account codes for Refunds:

Minor account code:


1193000 – „Refund due to Telephone Subscribers‟

1193001- Refund on excess/double payments(existing) 1193002- Refund due on closed connections. (existing) 1193003 – „Refunds due on working connections‟ (new) 1193004 – „Refunds due on pre-connection deposits and advances‟ (new)

The above-mentioned account codes will be utilized by CDR based billing system for keeping the liability

towards the (a) refund due on working connections and (b) refund due on pre-connection deposits & advances.

The amount of liability towards refund booked to above-mentioned account codes will be cleared by way of

adjustment or otherwise as per sanction issued by the competent authority.

5. Accounting for Invoices and Related Payments

All financial data originating in billing are being posted in accounting. In addition, in order to comply with Indian

Accounting Standards, manual entries are also posted in accounting especially at the year-end. Accounting

requires all the feeds from various systems at a consolidated level for each combination of owning and receiving

SSA.



a. Invoice Generation and Complete Payment in the same SSA

Consider a scenario where invoice is generated in Hyderabad and the payment is also made in Hyderabad.

1. On generation of invoice, relevant sundry debtors and recoverable accounts are debited, with appropriate credit

being given to the various revenue accounts.

2. Customer makes a payment at a collection centre at Hyderabad. The collection centre updates the PMS about

the same through a daily list comprising of collections made by it during the day and that made by the various

collection offices that report to it. This will be sent to Accounting, debiting the Claims Recoverable from

Others/HPO/Bill Desk account as the case may be, and passing the appropriate credit to TR Collection Account

in the books of account of Hyderabad.

3. On receipt of the schedule information and the cheque for the actual payment, TRC Settlement account is

debited, passing the credit to Claims recoverable from. Others/HPO/Bill Desk etc. The corresponding entry of

debiting the Bank Collection Account and crediting the TRC Settlement Account is done by AO Cash in Cash

book of the SSA. Thus the closing of TRC Settlement account is manual.

4. When information is received from Billing System about the payments clearing the Sundry Debtors outstanding,

the TR Collection Account is debited, crediting the sundry debtors and other recoverable accounts.

Consider that the following invoice is generated:

Customer Invoice

Fixed charges from subscriber 180 Local Call Charges 500 International Trunk Calls 200 Installation Charges 500 Total 1380

Add Service Tax 166 Education Cess 3 Higher Education Cess 2 Grand Total 1551

Net Payable 1551



(Service tax figures in examples areapproximate & assumed for easy representation )

The accounting treatment is depicted in the following figure.

Figure 1. Billing and complete payment in the same SSA

On Receipt of payment posting data from Billing (In the books of Hyderabad SSA)

1194502 TR Collection a/c Dr. 1551 To 1110101Sundry Debtors 1380 To 1110901Service Tax Recoverable 166 To 1110906 Education Cess Recoverable 3

To 1110909 Higher Education Cess Recoverable 2

On Receipt of Schedule data from PMS (In the books of Hyderabad SSA)

1194501 TRC Settlement A/c Dr. 1551

To 1130899 Claims Recoverable from Others 1551

On Receipt of Daily List data from PMS (In the Books of Hyderabad SSA)

1130899 Claims Recoverable from Others Dr. 1551

To 1194502 TR Collection 1551

Accounting entries on Invoice Generation (In the Books of Hyderabad SSA)

1110101 Sundry Debtors LL a/c Dr. 1380 1110901 Service Tax Recoverable (Telephones) Dr. 166 1110906 Education Cess Recoverable Dr. 3 1110909 Higher Education Cess Recoverable Dr. 2 To 1310101 Fixed Charges from Subscriber 180 To 1310201 Local Call Charges 500 To 1310303 International Trunk Calls 200 To1310601 Installation Charges 500 To 1192301 Service Tax Payable 166 To 1192306 Education Cess Payable 3

To 1192309 Higher Education Cess Payable 2

Invoice in Hyderabad, Payment in Hyderabad

On Receipt of Schedule data from PMS (In the books of AO Cash) (Outside CDR system)

Bank Collection A/c Dr. 1551

To 1194501 TRC Settlement A/c 1551



b. Excess/Double Payments when payment is made in the Billing SSA

Suppose in the above case, if payment of Rs 2551 is received against the billed amount of Rs

1551,then there is an excess of Rs 1000. This will be treated as follow:



Figure 2. Excess or double payment in the same SSA

For the invoice considered in the previous section, if an excess payment is accepted, Billing system

will have to identify excess payment. As depicted in Figure 3 above, for an invoice of Rs.1551, a

payment is received in excess of Rs.1000, that is, Rs.2551. So when the TR Collection is cleared by

On Receipt of payment posting data from Billing (In the books of Hyderabad SSA)

1194502 TR Collection a/c Dr. 2551 To 1110101Sundry Debtors (Other than WLL) 1380 To 1110901Service Tax Recoverable 166 To 1110906 Education Cess Recoverable 3 To 1110909 Higher Education Cess Recoverable 2

To 1193001 Refund due on Double/Excess Payment 1000


Claims Recoverable DOP/Others/Bill Desk/AOCash/Banks a/c Dr. 2551



1110101 Sundry Debtors LL a/c Dr. 1380 1110901 Service Tax Recoverable (Telephones) Dr. 166 1110906 Education Cess Recoverable Dr. 3 1110909 Higher Education Cess Recoverable Dr. 2 To 1310101 Fixed Charges from Subscriber 180 To 1310201 Local Call Charges 500 To 1310303 International Trunk Calls 200 To1310601 Installation Charges 500 To 1192301 Service Tax Payable 166 To 1192306 Education Cess Payable 3 To 1192309 Higher Education Cess Payable 2

Excess or Double Payment

On Receipt of Schedule data from PMS (In the books of Hyderabad SSA)

1194501 TRC Settlement a/c Dr. 2551

To Claims Recoverable HPO/Others/Banks/AOCash/Bill Desk 2551

On Receipt of Schedule data from PMS (In the books of AO Cash)





debiting Rs.2551, the exact amount that is enough to clear them, is credited to respective sundry

debtors and other recoverable accounts. The excess Rs.1000 is credited to the account of „Refund

due on Double/Excess Payments‟.

When the next invoice is generated, this excess amount is adjusted by crediting the sundry debtors

by the excess amount, as depicted in figure 4 and in the invoice depicted below.

Customer Invoice Fixed charges from subscriber 180 Local Call Charges 1000 International Trunk Calls 500 Total 1680 Add Service Tax 100 Education Cess 15 Higher Education Cess 5 Grand Total 1800 Less: Excess payment Adjusted 1000

Net Payable 800



Figure 3. Excess or Double Payment Adjustment in the next invoice

On Clearing outstanding by Billing (In the Books of Hyderabad SSA)

1194502 TR Collection a/c Dr. 800 To 1110101Sundry Debtors (LL) 730 To 1110901Service Tax Recoverable 55 To 1110906 Education Cess Recoverable 12 To 1110909 Higher Education Cess Recoverable 3

On Receipt of Schedule (In the Books of Hyderabad SSA)


To Claims Recoverable Bill Desk/HPOBanks/AOCash/Others 800


Claims Recoverable HPO/Banks/AOCash/Others/Bill Desk a/cDr. 800



1110101 Sundry Debtors (Other than WLL) a/c Dr. 1380 1110901 Service Tax Recoverable (Telephones) Dr. 166 1110906 Education Cess Recoverable Dr. 3 1110909 Higher Education Cess Recoverable Dr. 2 To 1310101 Fixed Charges from Subscriber 180 To 1310201 Local Call Charges 500 To 1310303 International Trunk Calls 200 To 1310601 Installation Charges 500 To 1192301 Service Tax Payable 166 To 1192306 Education Cess Payable 3 To 1192309 Higher Education Cess Payable 2 1193001 Refund due on Double/Excess payment Dr. 1000 To 1110101 Sundry Debtors (LL) a/c 950 To 1110901 Service tax recoverable 45 To 1110906 Education cess recoverable 3


Excess or Double Payment Adjustment

On Receipt of Schedule data from PMS (In the books of AO Cash)

Bank Collection A/c Dr. 800 To 1194501 TRC Settlement A/c 800



In case the balance needs to be refunded, the accounting entries will be as depicted in Figure 5.

Figure 4. Refund of Excess or Double Payment

In case of refund for closed/surrendered connections, the following entries are made:

Figure 5. Refund for closed/surrendered connections

c. Partial Payments made in the Billing SSA

This section deals with the accounting treatment of partial payments that is payment made is less

than the amount outstanding. If we consider a scenario where bill is generated in Hyderabad for

Rs.1130 as shown below.

1193001 Refund due for closed or surrendered connections Dr. 1000


Refund for closed/surrendered connections

1193001 Refund due on Double/Excess Payment Dr. 1000


Refund of Excess or Double Payment

Customer Invoice Fixed charges from subscriber 100 Local Call Charges 500 International Trunk Calls 400 Total 1000 Add Service Tax 100 Education Cess 20 Higher Education Cess 10 Grand Total 1130

Net Payable 1130



A payment of Rs. 565 is received at Collection Centre1, say, a cash counter in Hyderabad The

payment received knocks off the debit in relevant sundry debtors and other recoverable heads

through a credit entry in proportion to the payment received, as depicted in the figure below.

Figure 6 Partial payment made in billing SSA


1194502 TR Collection a/c Dr. 565 To 1110101 Sundry Debtors (LL) 500 To 1110901 Service Tax Recoverable 50 To 1110906 Education Cess Recoverable 10




To Claims Recoverable Bill Desk/HPO/Banks/AOCash/Others 565


Claims Recoverable Bill Desk/HPO/Banks/AOCash/Others Dr. 565



1110101 Sundry Debtors (LL) a/c Dr. 1000 1110901 Service Tax Recoverable Dr. 100 1110906 Education Cess Recoverable Dr. 20 1110909 Higher Education Cess Recoverable Dr. 10 To 1310101 Fixed Charges from Subscriber 100 To 1310201 Local Call Charges 500 To 1310303 International Trunk Calls 400 To 1192301 Service Tax Payable 100 To 1192306 Education Cess Payable 20


Partial Payment

On Receipt of Schedule data from PMS (In the books of AO Cash) (outside CDR)

Bank Collection A/c Dr.565




On generation of next invoice as depicted below, the partial amount outstanding is also reflected.

When the payment is received, the outstanding amounts are credited by the proportional amount,

GL Code wise, based on feed received from Billing system. This is depicted in the following figure.

Figure 7 Partial Payment adjustment in next cycle


1194502 TR Collection a/c Dr. 1695 To 1110101 Sundry Debtors (LL) 1500 To 1110901 Service Tax Recoverable 150 To 1110906 Education Cess Recoverable 30 To 1110909 Higher Education Cess Recoverable 15


1194501 TRC Settlement A/c Dr. 1695 To Claims Recoverable Bill Desk/HPO/Banks/AOCash/Others 1695


Claims RecoverableBill Desk/HPO/Banks/AOCash/Others a/c Dr. 1695


Partial Payment Adjustment




Customer Invoice Fixed charges from subscriber 100 Local Call Charges 500 International Trunk Calls 400 Total 1000 Add Service Tax 100 Education Cess 20 Higher Education Cess 10 Grand Total 1130 Add: Balance from last invoice 565

Net Payable 1695



d. Remittance to different SSA, Same Circle (Complete payment)

In cases where the SSA where the payment is made is different than the SSA where the Bill has

been generated, we need to pass a remittance entry from the revenue receiving SSA to the revenue

owning SSA.

Accounting System is capable of generating remittance accounting entries for payments received in

SSA other than revenue owning SSA. Revenue owning and revenue receiving SSAs can be in

different Circles in the same Zone.

In order to comply with this requirement it is essential that Billing provides SSA information for

revenue at the time of billing as well as information on revenue owning and revenue receiving SSA

at the time of payment adjustment against outstanding.

In the following figure, a scenario is considered where Invoice is generated in Hyderabad and

payment is made in Vizag, that is both SSAs belong to the same circle. On receipt of daily list

information by PMS, Claims recoverable from collection centre a/c is debited by the amount

received, in the books of accounts of the receiving SSA that is Vizag here, crediting the TR

Collection Account.

When Schedule information and cheque is received by PMS, TRC Settlement account is debited,

thus clearing the outstanding Claims recoverable a/c in the revenue receiving SSA. On payment

feed from Billing system, the correct remittance entries are determined and posted. TR Collection

Account is debited and Originating Remittance same circle credit entry is made in the books of

accounts of revenue receiving, here Vizag. The responding remittance entry in revenue owning SSA

(Hyderabad in this case) is used to clear the debtors outstanding and other recoverable accounts in

revenue owning SSA.

Customer Invoice Fixed charges from subscriber 180 Local Call Charges 500 International Trunk Calls 200 Installation Charges 500 Total 1380 Add Service Tax 166 Education Cess 3 Higher Education Cess 2 Grand Total 1551 Net Payable 1551



Figure 9 Remittance to different SSA in same circle


1110101 Sundry Debtors (Other than WLL) a/c Dr. 1380 1110901 Service Tax Recoverable (Telephones) Dr. 166 1110906 Education Cess Recoverable Dr. 3 1110909 Higher Education Cess Recoverable Dr. 2 To 1310101 Fixed Charges from Subscriber 180 To 1310201 Local Call Charges 500 To 1310303 International Trunk Calls 200 To1310601 Installation Charges 500 To 1192301 Service Tax Payable 166 To 1192306 Education Cess Payable 3


On Receipt of Daily List data from PMS (In the Books of Vizag SSA)

Claims Recoverable Bill Desk/HPO/AOCash/Banks/Others Dr. 1551


On Receipt of Schedule (In the Books of Vizag SSA)


To Claims Recoverable Bill Desk/HPO/AOCash/Banks/Others 1551

On Clearing outstanding by Billing (In the Books of Hyderabad SSA based on feed from Billing system)

1990401 Remittance same circle (R) Dr. 1551 To 1110101 Sundry Debtors (LL) 1380 To 1110901 Service Tax Recoverable 166 To 1110906 Education Cess Recoverable 3


Invoice in Hyderabad Payment in Vizag

On Clearing outstanding by Billing (Automatically generated by system)

1194502 TR Collections Dr. 1551 Vizag

To 1990201 Remittance same Circle (O) 1551 Vizag

On Receipt of Schedule (In the Books of AO (Cash) Vizag SSA)

Bank Collection a/c Dr. 1551




e. Remittance to SSA of Same Circle (Partial Payment)

This section deals with the accounting treatment of a scenario of Partial payment made in some

other SSA of the same circle in which invoice has been generated. Consider a scenario where Bill is

generated in Hyderabad (AP Circle) and payment is made in Vizag (AP Circle).

Consider the bill to be the following:

Customer Invoice Fixed charges from subscriber 100 Local Call Charges 500 International Trunk Calls 400 Total 1000 Add Service Tax 100 Education Cess 20 Higher Education Cess 10 Grand Total 1130 Net Payable 1130



The accounting treatment of the same will be as depicted in the figure below.

Figure 10 Remittance to different SSA in same Circle (Partial Payment)

Partial Payment Different SSA same Circle


Claims Recoverable Bill Desk/HPO/AOCash/Banks/Others A/c Dr. 565

To 1194502 TR Collections 565








1990401 Remittance same Circle (R) Dr. 565 To 1110101 Sundry Debtors (LL) 500 To 1110901 Service Tax Recoverable 50 To 1110906 Education Cess Recoverable 10


On Clearing outstanding by Billing 1194501 TR Collections Dr. 565 Vizag To 1990201 Remittance same Circle (O) 565 Vizag


Bank Collection a/c Dr. 565




When Billing sends a payment feed to accounting, the correct remittance entries are used to settle the

recoverables by proportional amount as posted by the Billing System.

The next bill is depicted as follows:

The accounting treatment of the same is depicted in the following figure.

Customer Invoice

Fixed charges from subscriber 100 Local Call Charges 500 International Trunk Calls 400 Total 1000

Add Service Tax 100 Education Cess 20 Higher Education Cess 10 Grand Total 1130

Add: Balance from last invoice 565

Net Payable 1695



Figure 81 Remittance to different SSA in same Circle (Partial Payment Adjustment)

Partial Payment Adjustment (different SSA same Circle)


1110101 Sundry Debtors (LL) a/c Dr.1000 1110901 Service Tax Recoverable Dr. 100 1110906 Education Cess Recoverable Dr. 20 1110909 Higher Education Cess Recoverable Dr. 10 To 1310101 Fixed Charges from Subscriber 100 To 1310201 Local Call Charges 500 To 1310303 International Trunk Calls 400 To 1192301 Service Tax Payable 100 To 1192306 Education Cess Payable 20



Claims Recoverable Bill Desk/HPO/AOCash/Banks/Others Dr. 1695 To 1194502 TR Collections 1695





1990401 Remittance same Circle (R) Dr. 1695 To 1110101 Sundry Debtors (LL) 1500 To 1110901 Service Tax Recoverable 150 To 1110906 Education Cess Recoverable 30


On Clearing outstanding by Billing (Automatically generated)

1194502 TR Collections Dr. 1695 Vizag

To 1990201 Remittance same Circle (O) 1695 Vizag


Bank Collection a/c Dr 1695

To 1194501 TRC Settlement 1695





f. Remittance to different SSA of same Circle (Excess Payment)

Figure 9 Remittance to different SSA in same circle (excess payment)


1110101 Sundry Debtors (Other than WLL) a/c Dr. 1380 1110901 Service Tax Recoverable (Telephones) Dr. 166 1110906 Education Cess Recoverable Dr. 3 1110909 Higher Education Cess Recoverable Dr. 2 To 1310101 Fixed Charges from Subscriber 180 To 1310201 Local Call Charges 500 To 1310303 International Trunk Calls 200 To1310601 Installation Charges 500 To 1192301 Service Tax Payable 166 To 1192306 Education Cess Payable 3


Excess or Double Payment Different SSA same Circle


Claims Recoverable Bill Desk/HPO/AOCash/Banks/Others Dr. 2551 To 1194502 TR Collections 2551





1990401 Remittance within Circle (R) Dr. 2551 To 1110101 Sundry Debtors (LL) 1380 To 1110901 Service Tax Recoverable 166 To 1110906 Education Cess Recoverable 3 To 1110909 Higher Education Cess Recoverable 2 To 1193001 Refund due on Double/Excess Payment 1000


1194502 TR Collections Dr. 2551 Vizag To 1990201 Remittance same Circle (O) 2551 Vizag

On Receipt of Schedule (In the Books of AO Cash Vizag SSA)





The accounting treatment here is similar to that where excess payment is made in the owning SSA itself

as depicted in some other Section earlier. The only difference being in remittance entries.

g. Remittance to SSA of different Circle (Full Payment)

Figure 10 Remittance to an SSA in different circle (full payment)

On Receipt of Daily List data from PMS (In the Books of Bangalore SSA)

Claims Recoverable Bill Desk/HPO/Others Dr. 1551 To 1194502 TR Collections 1551


1990309 Remittance between circlesKarnataka(R) Dr. 1551 To 1110101 Sundry Debtors (LL) 1380 To 1110901 Service Tax Recoverable 166 To 1110906 Education Cess Recoverable 3


Invoice in Hyderabad

Payment in Bangalore


1110101 Sundry Debtors (Other than WLL) a/c Dr. 1380 1110901 Service Tax Recoverable (Telephones) Dr. 166 1110906 Education Cess Recoverable Dr. 3 1110909 Higher Education Cess Recoverable Dr. 2 To 1310101 Fixed Charges from Subscriber 180 To 1310201 Local Call Charges 500 To 1310303 International Trunk Calls 200 To1310601 Installation Charges 500 To 1192301 Service Tax Payable 166 To 1192306 Education Cess Payable 3 To 1192309 Higher Education Cess Payable 2


1194502 TR Collections Dr. 1551 BLR To 1990105 Remittance between circles AP (O) 1551 BLR

On Receipt of Schedule (In the Books of BLR SSA)


To Claims Recoverable Bill Desk/HPO/Others 1551

On Receipt of Schedule (In the Books of AO Cash BLR SSA)(Manual Entry Outside CDR)

Bank Collection A/c Dr. 1551 To 1194501 TRC Settlement A/c 1551



In the previous figure , a scenario is considered where Invoice is generated in Hyderabad and payment is

made in Bangalore, that is both SSAs belong to different circles in the same zone. On receipt of daily list

information by PMS, Claims recoverable from collection centre a/c is debited by the amount received, in

the books of accounts of the receiving SSA that is Bangalore here. TR Collection Account is credited by

the same amount. When Schedule information and cheque is received by PMS, TRC Settlement account

is debited, thus clearing the outstanding Claims recoverable from CC(HPO/Bill Desk/Others) a/c in the

revenue receiving SSA. On payment feed from Billing system, TR Collection account is debited, The

corresponding originating Remittance credit entry is made in the books of accounts of receiving SSA.

The responding remittance entry is used to clear the debtors outstanding and other recoverable accounts

in revenue owning SSA. The remittance account used here is Remittance between circles.

h. Surcharge on delayed payments (Late fee)

Surcharge on delayed payments is created as an adjustment in Billing system. So when the adjustment

is created the following entries are passed to accounting module:

Figure 11: Surcharge on delayed payments(Late fee)

6. Accounting for GSM Collections

a. GSM Invoice of one Circle, Payment in SSA of same Circle

Consider a scenario where for a GSM Invoice belonging to Punjab Circle, a payment of Rs. 5000 is

accepted in an SSA (Ludhiana) of the same Circle. On receipt of feed file from PMS for Daily list, the

amount and the receiving SSA is recognised, with a flag for Collections for GSM. At this time itself, the

accounting entries are passed to debit Claims recoverable from Others and passing correct remittance

entries because in this case there is no clearing feed obtained from Billing System in this case. On

receipt of information at the time of schedule, TRC settlement account is debited and Claims

recoverable account is credited.

I.On Receipt of Daily List data from PMS with a flag for GSM Payments Particulars Dr Cr Books 1130899 Claims Recoverable from OthersA/c 5000 LDH

To 1192899 Claims Payable to CMTS 5000 LDH

II. On Receipt of Schedule data from PMS (IN THE BOOKS OF Ludhiana SSA)

Particulars Dr Cr Books

1194501 TRC Settlement Account 5000 LDH

To 1130899 Claims Recoverable from Others 5000 LDH

Invoice in PunjabCircle Payment atLudhiana (Punjab Circle)

(Full Payment)

1110101 Sundry Debtor (LL) Dr. 1000

1310701To Surcharge on Delayed Payments(Late fee) 1000



Figure 15: Accounting for GSM Collections: Payment in SSA of same Circle

The credit entry to TRC Settlement A/c is made in the books of AO Cash with a debit to Bank Collection A/c on receipt of schedule.

b. GSM Invoice of one Circle, Payment in SSA of different Circle

Consider a scenario where for a GSM Invoice belonging to Punjab Circle, a payment of Rs. 5000 is

accepted in an SSA (Gurgaon) of Haryana Circle. On receipt of feed file from PMS for Daily list, the

amount and the receiving SSA is recognised, with a flag for Collections for GSM. At this time itself, the

accounting entries are passed to debit Claims recoverable from Others and passing correct remittance

entries because in this case there is no clearing feed obtained from Billing System in this case. On

receipt of information at the time of schedule, TRC settlement account is debited and Claims

recoverable account is credited.

Figure 16: Accounting for GSM Collections: Payment in SSA of different Circle

I.On Receipt of Daily List data from PMS with a flag for GSM Payments Particulars Dr Cr Books

1130899 Claims Recoverable from Others a/c 5000 GGN To1990114 Remittance between Circles (Punjab)(O) 5000 GGN 1990321 Remittance between Circles (Haryana)(R) 5000 Punjab

To 1192899 Claims Payable to CMTS 5000 Punjab

II. On Receipt of Schedule data from PMS (In the books of AO Cash)

Particulars Dr Cr Books

Bank Collection A/c 5000 GGN To 1194501 TRC Settlement Account 5000 GGN

Invoice in PunjabCircle Payment atGurgaon (Haryana Circle)

(Full Payment)

III. On Receipt of Schedule data from PMS Particulars Dr Cr Books 1194501 TRC Settlement Account 5000 GGN

To 1130899 Claims Recoverable from Others 5000 GGN



7. Adjustments

The adjustment would update customer balance in billing system and appear on subsequent bill.

The adjustment voucher is required from the billing system to post accounting entry. Also, when the

amount is included in the next invoice, the relevant GL Code based information will flow from Billing

to accounting as depicted in the following sections.

a. Debit Voucher A debit voucher on account of revenue would arise on account of the following reasons.

Detection of short billing on a previous invoice

Detection of non-billing for any previous period.

To create cheque dishonour charges, if any.

To create late fee to be incorporated into the next invoice.

To deal with special charges to be levied for bold entry in telephone directory etc.

When the billing is done in the above cases, the revenue being invoiced would be belonging to a

previous bill cycle falling within the same fiscal (Accounting) year or an accounting period in respect

of which final accounts have already been closed. In the former case, no accounting issues are

involved and the revenue would be billed as current year income. In the latter case, we have to

follow the accounting policy on dealing with “prior period income”.

Based on this the amount would be booked either as income in the current year or as prior period

income. Booking of Prior Period income will be done in accounting as a manual journal entry.

Take an example where short billing on a previous invoice is detected. For recovery of charges

subsequent to generation of bill, a debit is posted in the Billing System. The debit voucher updates

customer account balance in Billing system and appear in subsequent bill. The debit voucher is

posted in accounting simultaneously.The debit voucher is required from the billing system to post

accounting entry. The taxation part of the debit entries will be taken care of at the time of actual

billing. Only the basic amount will be entered as a debit voucher. This is depicted in following

Figure .



Figure 12. Debit Voucher: Settlement of short billed invoice

Customer Invoice Fixed charges from subscriber 1000 Local Call Charges 5000 International Trunk Calls 4000 Add: Adjustment for short Billing 5000 Total 15000 Add Service Tax 1000 Education Cess 200 Higher Education Cess 100 Net Payable 16300

For all debit amounts, applicable taxes will be computed and added while it is invoiced. On

generation of next invoice by the billing system, the debit voucher entry will be passed like other

adjustments as line items, debiting the Sundry Debtors and crediting the account pending for

adjustment. This is depicted in following Figure.

Debit Voucher: Settlement of Short billed invoice

Scenario: Debit voucher against short billing Bill Generated in HYD for Amt. Rs. 10000

(5000 short billed amount) Adjustment of short billing in next invoice

Customer Invoice Fixed charges from subscriber 1000 Local Call Charges 5000 International Trunk Calls 4000 Total 10000 Add Service Tax 1000 Education Cess 200 Higher Education Cess 100 Grand Total 11300 Net Payable 11300

1194502 TR Collection a/c Dr. 11300

1110101To Sundry Debtors (LL) 10000 1110901To Service Tax Recoverable 1000 1110906To Education Cess Recoverable 200 1110909 To Higher Education Cess Recoverable 100

1110101Sundry Debtors (LL) a/c Dr. 10000 1110901Service Tax Recoverable Dr.1000 1110906 Education Cess Recoverable Dr.200 1110909 Higher Ed Cess Recoverable Dr. 100 To1310101 Fixed Charges from Subscriber 1000

To1310201Local Call Charges 5000 To1310303 International Trunk Calls 4000 To 1192301Service Tax Payable 1000 To 1192306 Education Cess Payable 200 To 1192309 Higher Education Cess Payable 100

On Detection of Short Billing (Debit Voucher information from Billing) 1131025 Debit amount pending for adjustment Dr.5000

1310101To Fixed Charges from Subscriber 2500 1310201 To Local Call Charges 2500



Figure 18. Accounting for debit voucher (Settlement of short billed invoice) on generation of next

invoice

b. Credit Voucher

The credit voucher would update customer account balance in Billing system and appear in

subsequent bill. The credit voucher will be posted in accounting simultaneously. The credit voucher

is required from the billing system to post accounting entry.

The scenario in the following figure depicts a case where the bill is generated for Rs.11300 and

payment is made for Rs.11300, clearing the bill. Post the settlement of the invoice, it is realised that

the customer was billed in excess for Rs.5000.

Debit Voucher: Generation of Next Invoice

1110101Sundry Debtors (LL) a/c Dr. 10000 1110901 Service Tax Recoverable Dr. 1500 1110906 Ed Cess Recoverable Dr. 30 1110909 HEC Recoverable Dr. 15 1110101 Sundry Debtors (LL) Dr. 5000 To 1310101 Fixed Charges from Subscriber 1000 To 1310201 Local Call Charges 5000 To 1310303 International Trunk Calls 4000 To1192301 Service Tax Payable 1500 To 1192306Education Cess Payable 30 To 1192309 Higher Education Cess Payable 15

To 1131025 Debit amount pending for adjustment 5000



Figure 19. Accounting for Credit Voucher where the bill is fully settled

On generation of next invoice, this account created for parking the excess credit pending for

adjustment, is debited and the appropriate Sundry Debtors and recoverable amounts are credited

with the excess amount. This is depicted in the following figure.

Scenario: Credit voucher against excess billing Bill Generated in HYD for Amt. Rs. 10000 (5000 excess billed amount) Adjustment of excess payment in next

invoice

Customer Invoice Fixed charges from subscriber 1000 Local Call Charges 5000 International Trunk Calls 4000 Total 10000 Add Service Tax 1000 Education Cess 200 Higher Education Cess 100 Grand Total 11300

Net Payable 11300

On detection of excess billing 1310101Fixed Charges Dr. 3000 1310201Local call charges Dr. 2000 1194504 To Credit amount pending for adjustment 5000

1194502 TR Collection a/c Dr. 11300 1110101To Sundry Debtors (LL) 10000 1110901To Service Tax Recoverable 1000 1110906To Education Cess Recoverable 200 1110909 To Higher Education Cess Recoverable 100

1110101Sundry Debtors (LL) a/c Dr. 10000 1110901Service Tax Recoverable Dr.1000 1110906Ed Cess Recoverable Dr.200 1110909 HEC Recoverable Dr.100 1310101To Fixed Charges from Subscriber 1000 1310201To Local Call Charges 5000 1310303To International Trunk Calls 4000 1192301To Service Tax Payable 1000 1192306To Education Cess Payable 200 1192309 To Higher Education Cess Payable 100

Credit Voucher: Where the bill is already fully settled



Figure 20. Accounting for Credit Voucher on Generation of new Invoice

c. Cancellation of Invoice

Although the system is capable of accounting for invoice cancellation, but as a part of best

practices, this scenario is not present. The adjustment to the invoice will flow like normal

adjustments to accounting. Correspondingly, entries would be passed in Accounting related to

the reversal/cancellation.

d. Write off of Bad Debts

Write offs are manual. Reversal of write-offs not supported.

Collections against write-off, if any, will go to „Other Income‟. Service tax need not be taken into

account for that. The flow to accounting will be from PMS.

For an active customer there will be no write-off; only adjustments will be posted to customer

account in Billing. Write-off can only be for a closed account.

Credit Voucher: Generation of new invoice

Scenario: Credit voucher against excess billing

Bill Generated in HYD for Amt. Rs. 10000 (5000 excess billed amount) Adjustment of excess payment in next invoice

Customer Invoice Fixed charges from subscriber 1000 Local Call Charges 5000 International Trunk Calls 4000 Gross Total 10000 Less: Adjustment for excess Billing 5000 Net Total5000 Add Service Tax 500 Education Cess 100 Higher Education Cess 50 Grand Total 5650 Net Payable 5650

1110101 Sundry Debtors (LL) a/c Dr. 10000 1110901 Service Tax Recoverable Dr. 500 1110906 Education Cess Recoverable Dr. 100 1110909HEC Recoverable Dr.50 1310101 To Fixed Charges from Subscriber 1000 1310201 To Local Call Charges 5000 1310303 To International Trunk Calls 4000 1192301 To Service Tax Payable 500 1192306 To Education Cess Payable 100

1192309 To Higher Education Cess Payable 50

1194504 Credit amount pending for adjustment Dr. 5000 1110101To Sundry Debtors Landline 5000



Figure 21. Accounting for Write Off of Bad Debts

Any write-off because of erroneous usage will come as an adjustment in the subsequent bill.

Account of the same will be done based on the feed received from Billing.

e. Collection against Write off

For Collections made against written off amount, feed will flow in to accounting from Payment

Management System. The accounting entries made will be:

1194502 TR Collection Dr. 1000

To 1410199 Other Income 1000

In case of Receiving SSA being different from Owning SSA, the correct remittance entries will be

passed before crediting Other Income account.

Write Off of Bad Debts

When Bad Debts written off (Flow from Billing to Accounting) 1742006 Bad Debts Dr. 4900 ST payable etc Dr 500 To 1110101 Sundry Debtors Telephones 4900 ST recoverable etc 500

At close of Accounting Period (Manual Entry in EFS) 1200115 Provision for Bad and Doubtful Debts Dr. 4900

To 1742006 Bad Debts 4900

If Provision is insufficient (Manual Entry in EFS) P&L Account Dr. 1000 To 1200115 Provision for Bad and Doubtful Debts 1000 In case of Excessive Provision (Manual Entry in EFS) 1200115 Provision for bad and doubtful debts Dr. To To

1410314 Other Income – Excess provision written back Cr.



8. Payments from Various Channels

a. Payments on CSR counter

On Billing:

Figure 22 Accounting Entry on Billing

The online collections made in a day by each CSR counter will get captured in the PMS database with

the necessary details. The collections made by each counter will be tallied and also the total collection

by each online collection center. The total collections as per the daily collection statement for each

CollectionCenter will be accounted for as follows based on feed from PMS. The account to be debited

would be Claims recoverable from AO(Cash).

Figure 23 Accounting entry on receipt of daily list

Periodically, the PMS will generate a schedule of collections for each online collection center. It should

be noted that the TRC Schedule is prepared by the collection centers concerned in respect of offline

collection, which is reconciled with the corresponding payments entered into the PMS. However, since

the collection in this case is directly accounted for in the SSA level Bank (Collection) Account on a day

to day basis, by the AO Cash, the schedule would be generated by the PMS and got verified and

certified with respect to actual amounts in the collection account from the AO (Cash).

The schedule will show the total amount of TR collection made by the center. Differences if any arising

out of verification prescribed above will be examined and reconciled. PMS will provide an interface for

entering the actual collection for the month as obtaining from the SSA bank books (which should be the

amount generated in the schedule). Based on feed from PMS, accounting will record another transaction

as follows:

Figure 24 Accounting entry on receipt of TRC Schedule and Cheque

1110101Sundry Debtors Landline Dr. 4500 1110901 Service tax recoverable Dr. 540 1110906 Education Cess recoverable Dr. 20 1110909 Higher Education Cess recoverable Dr. 5 1310101 To Rental charges 500 1310201 To Call charges 4000 1192301 To Service tax payable 540 1192306 To Education Cess Payable 20

1192309To Higher Education Cess Payable 5

1132304 Claims Recoverable from AO(Cash) Dr. 5065 1194502 TR Collections 5065

1194501 TRC Settlement A/c Dr. 5065 1132304 To Claims Recoverable from AO(CASH) 5065



The credit entry for this TRC Settlement account is created in the books of AO Cash when Collection bank

is debited.

Bank/Cash A/c Dr. 5065

1194501 To TRC Settlement 5065

b. Payments from Post Offices

Post Offices collect the payments against invoices presented to them along with cash or Cheque

drawn in the favour of the Post Master concerned. Each Post Office will prepare a daily list of

collections being a list showing the account number, phone number, bill date and the amount

collected in multiple copies. One copy of this list along with the counterfoils of the invoices is sent to

the Accounts Officer of the SSA concerned. The Post Office sends no money along with the daily

list to Accounts Officer. The Cheques received are sent for collection by the post office and is

credited to the post office account. The concerned Head Post Office does the account settlement for

collections made by post offices. The collecting office will incorporate their daily collections in their

accounts and sent this along with a copy of the daily list of Telecom Bill collections to the HPO

concerned.

Post Office accepts cheque only in the postmaster‟s name. Settlement is done only at Head Post

Office. Daily list is received on a daily basis from Post Offices. Schedule can be received

periodically from head post office along with a cheque after deduction of tax and commiss ion. A

summary schedule is received at the end of the month.

On receipt of Daily List:

The online collections made in a day by each Post Office will be captured in the PMS database with

the necessary details. The collections made by each Post Office will be tallied and the total

collection by each Head Post Office. The total collections as per the daily collection statement for

each Collection Center (HPO) will be accounted as follows in the PMS

Figure 25 Accounting entry on receipt of daily list from Head Post Office

On receipt of TRC Schedule and Cheque:

1132301 Claims Recoverable from DoP Dr.5000 1194502 To TR Collection 5000



The periodical TRC schedule will show the total amount of TR collection made by the collection

center, here HPO. Differences if any arising out of verification prescribed above will be examined

and reconciled. PMS provides an interface for entering the actual collection for the month as

obtaining from the SSA bank books (which should be the amount generated in the schedule). Based

on this entry, the following accounting transactions will be entered:

Figure 13 Accounting entry on receipt of TRC Schedule, Cheque from HPO

The Post Office is entitled to commission at the prescribed rate for doing the TR collection. They are

authorized to do the settlement of accounts after deducting the commission and service taxes due

on the commission.

On outstanding settlement feed from Billing:

There will be a flow from the Billing System regarding the clearance of sundry debtors outstanding,

after receipt of relevant information from PMS. Thus the TR Collection a/c is debited with

corresponding credit to Sundry Debtors.

Figure 27 Accounting entry on receipt of payment information from Billing

c. Payments from Banks

The accounting entries remain the same as for other channels except that the GL code to be

debited on receipt of daily list is:

1132303 Claims Recoverable from Banks

1194501 TRC Settlement A/c Dr. 4850 1742701 Commission to DoP Dr. 100 1131505 Service Tax(input service) Dr. 40 1131506 Education Cess Dr. 8 1131509 Higher Education Cess Dr. 2 1132301 To Claims Recoverable from DoP 5000

1194502 TR Collections Dr. 5000 1110101To Sundry Debtors Landline 4940

1110901To Service Tax recoverable 50

1110906To Education Cess recoverable 8

1110909 To Higher Education Cess Recoverable 2



Bank Charges cannot be deducted directly from the cheque sent to BSNL. Banks have to claim

from BSNL and get it settled.

Accounting for commission of banks is to be done in EFS.

d. Payments through ECS

ECS will be considered as a part of Online(Cash Counters) payment channel. As and when PMS

gets updated about the amount collected from this channel it will update accounting. For the ECS

customers additional discount is provided and feed for the same will be provided by the Billing

system on the next invoice as separate line item. The accounting entries are as depicted in the

following figure.

Figure 28 Accounting treatment for Discount on ECS

On Daily list entry 1132304 Claims recoverable from AO(Cash) Dr. 100000 To 1194502 TR Collection 100000 On entry of schedule by AO(Cash) 1194501 TRC Settlement Dr. 100000

To 1132304 Claims recoverable from AO(Cash) 100000 On payment settlement feed from Billing system 1194502 TR Collection Dr. 100000

To 1110101 Sundry Debtors (Telephones) 89000 To 1110901Service Tax Recoverable 10700 To 1110906 Education Cess recoverable 200 To 1110909 HEC recoverable 100

On generation of credit voucher for discount/rebate(feed from Billing system)

1742602 Discount on ECS Dr. 1000 1194504 To Credit amount pending for adjustment 1000

On generation of next invoice (feed from Billing system)

1194504 Credit amount pending for adjustment Dr. 1000 1110101To Sundry Debtors (Telephones) 890 1110901To Service Tax Recoverable 107 1110906To Education Cess recoverable 2

1110909To HEC recoverable 1



e. Payments through Bill-desk: We are dealing with the collections made by "BILL DESK" payment aggregator in THREE

different ways.

1. Online Web based payments made by CDR system customers through the Web Self-Care

portal of the CDR system. This is online payment from the CDR system perspective in that

the invoice data is accessed by the portal directly from the CDR system and the payment

processing is done online without any manual intervention.

(This is under implementation stage)

2.Web based payments made by CDR customers through BSNL All India Portal. This is

NOT an online payment from the CDR system perspective since the invoice or payment data

does not flow seamlessly between the AIP and the CDR system. The payment data is

captured into the CDR system through manual intervention. It is an offline channel for the

CDR system.

3. A third option is that the customer registers with bill-desk system and the payment due is

collected through Direct Debit to the registered customers' bank account. This solution

operates more or less completely outside the BSNL systems. It is also an offline channel.

All the above three modes of operation cannot be dealt with through a single channel

configuration. We are actually dealing with three distinct channels although the aggregator

operating behind all the three channels is the same. One physical entity is actually operating

through three different logical entities. Mixing these and operating a single channel to deal

with the three situations explained above will lead to serious reconciliation issues. The basic

concept of payment channel is not based purely on the 'person' behind the collection activity,

it is based both on the person and the solution behind the collection activity. A single channel

can be operated only when the person and solution are identical. If there is a mismatch, a

new payment channel would originate.

The solution to deal with the present situation is as follows:

1. Operation through WSC of CDR system will be dealt with as 'bill desk' channel and will use

related GL code „1132302 CDR TRC Claim WSC‟.



2. All India Portal is dealt with as collections by External Accounting System. It is already

made clear in the BSNL CO circular 209 that the BSNL units collecting invoices issued from

the CDR system and operating outside the CDR system will be handled as per instructions

related to the handling of EAU payments. This will use the GL code „1132306 CDR Claims

EAU‟

3. Operation through bill desk web site is essentially based on a 'franchisee' concept. It is an

outsider solution. It has to be dealt with accordingly through GL code „1132399 CDR TRC

Claim others‟..

The aggregator cannot mix collections related to the above three types of solutions and make

a single settlement. It has to be separated. Some settlements are at SSA level and some will

be at the centralized level (AP Circle) and the others at the DC SSA level. All collections will

involve schedule entries. No reconciliations are possible unless the schedule is entered and

the related payment details are also captured through the PMS.

Accounting for Web Self Care(WSC):

In CDR based billing and Customer Care system (BCCS), a Payment Managemenrt System

(PMS) is available which will accept payments against bills. PMS will be operational for a CDR Zone.

The WEB SELFCARE System(WSC)which is also a part of CRM Software, is also Zone specific A

landline customer or any other customer being served by the above BCCS who wishes to make

payment of his bills through internet will access the WSC of the Zone for information regarding bill

and will then be re-directed to an online payment platform (OLPP) where payment can be made using

the available options of bank account/debit card/credit card as the case may be. The detailed

operational procedures are available in CO letter No. 1-8/BFCI/CI/CDR Procedure/09-10 dated

15/12/2009.

The accounting flow in the CDR system is similar to other online/offline channels . Following

are the accounting flow:

When daily list is posted in the PMS (online):



1132302 Claims Recoverable from WSC (BillDesk) Dr

1194502 To TR Collections.

When Money is received from the aggregator:

Collection Bank Dr

1194501 To TRC Settlement Account

(Entry done in the EFS Bank Book)

When schedule is entered in the PMS:

1194501 TRC Settlement Account Dr

To Claims Recoverable from WSC (Bill Desk)

When feed from billing is received for the payments:

(In books of DC SSA-automated entries in the CDR system)

1194502 TR Collections a/c Dr

To Sundry debtors, ST recoverable etc.(For amounts in respect of DC SSA)

1191100 To Remittance Same Circle (O) (for SSAs in AP in respect of SouthDC)

To Remittance between Circles-<Circle name>(O)

(In the books of respective SSAs - automated entries in the CDR system)

Remittance same Circle( R ) Dr

To Sundry debtors, ST recoverable etc. (for SSAs in AP)

Remittance between Circles –AP ( R ) Dr

To Sundry Debtors etc (for SSAs in other Circles)

f. Dealing with payments involving units outside the CDR system(ERU)

Definitions:

External Revenue Unit (ERU) or External Accounting Unit(EAU): A BSNL unit outside the

CDR system other than the GSM system that:

i) Receives advance payment in relation to service to be provided from the CDR system or

ii) Collects payments on invoices issued from the CDR system or

iii) Expects payment transfers from the CDR system relating to invoices issued by it and

collected by the CDR system.



Note: The term will also cover systems operated by units already operating from the CDR

system while also maintaining other systems that are not migrated to the CDR System.

External Financial System (EFS): Refers to that part of the books of accounts of a BSNL

unit that is operating through the CDR system, which is maintained outside the CDR system

ERP. In this case accounting for the TR transactions is done by the ERP module of the CDR

system which will get incorporated into the EFS to generate the complete accounting

statement for the unit concerned.

ATC Settlement Account: A new GL code 1194506 - CDR based ATC settlement Account has been

created in the BSNL Books to deal with ERU related Advices of Transfers. This will be

operated in a manner similar to that of “TRC Settlement Account” already in operation. This

head will deal with funds movement handled through book adjustments while TRC Settlement

account will operate for actual cash/bank transactions. ATC Settlement Account will operate

through a journal entry in the external financial system (EFS) while TRC Settlement Account

will operate through an entry in the Cash/Bank book in the EFS.

Scenario-I: Demand Notes paid outside CDR system for services to be provisioned from the CDR system. a. Situation:

Bhopal SSA is operating from the CDR system. A customer makes a payment of demand

note for services like LL and/ or BB in a SSA other than Bhopal SSA. The payment receiving

SSA raises ATC for the payment so received and based on such ATC the Bhopal SSA

provides the services to the customer parented to it. This has happened in case of forest

Department.They made the payment for Broadband connections at Indore for all connections

to be provided across MP. Based on the ATC received from Indore, Bhopal SSA provided the

required connections.

Demand Note is issued from the Indore SSA. Payment is made at Indore SSA. There are 20

connections to be provided from Bhopal SSA. Case is one in which service is to be

provisioned from the CDR system based on demand notes issued and paid at an ERU.

b. End to End Flow:



i) No Accounting Entry is required in the books of Indore SSA (ERU operating outside the CDR

system) for the demand note issued by the Indore SSA.

ii) When the demand note payment is received by Indore SSA (ERU), an Advice of Transfer

Credit will be issued by it by passing the following entries in its books:

Collection Bank A/c Dr.

To Remittance Same/Between Circle(s) (Originating).

Note: The SSA will NOT operate the Remittance GL codes specifically issued for use

within the CDR system as per BSNL CO (CA Section) Circular-190. It will use the

regular Remittance Heads only.

iii) The ATC received from the Indore SSA will be accepted by Bhopal SSA (Operating

within the CDR system) in its External Financial System (EFS). The journal entry to be

passed by Bhopal SSA will be as follows:

Remittance Same Circle(s) (Responding) Dr

To ATC Settlement Account

iv) The demand note will be re-created for the Bhopal SSA in the CDR system through its

CRM module. Such demand notes will be re-created for each customer account although the

customer might have paid a single consolidated Demand Note at the ERU.

v) Payment noting for this demand note will be done through a batch entry done manually

through the PMS of the CDR system. These payments will be tagged to a new Payment

Channel named as „ERU‟ which will have the new payment mode „ATC‟. The payment

channel and the payment mode are created in the PMS. The payment mode „ATC‟ will be

used only by the payment channel „ERU‟.

vi) The accounting entries for such payments will be to debit Claims Recoverable from

ERU and to Credit TR Collections. The GL Code „Claims Recoverable from ERU‟ is

created newly in the BSNL books.

vii) A schedule entry will be made by the AO (Cash) based on ATC acceptance. This is

equivalent to cheque receipt from the collection centre entered in to the cash book. The



accounting entries arising out of schedule entry will be to debit ATC Settlement Account and

credit Claims Recoverable from ERU.

viii) Further flow for provisioning of the service and its billing will proceed without any change as is

happening in the case of any demand note paid by Cash/Cheque/DD.

ix) When the trial balance from the CDR system ERP and that from External Financial System

get merged, the GL code ATC Settlement Account will have a zero balance. In case this is

not the case, it will indicate missing or wrong accounting entries in the system.

Scenario-II:

Bills generated by the CDR system gets paid in an External Revenue Unit (ERU)

a. Situation:

A customer makes a payment of a bill issued from the CDR system in a unit outside the CDR

system (ERU). For instance a consolidated bill for e-governance services is collected by

Northern Telecom Region (NTR). The payment receiving unit sends the paid invoice details to

the customer owning SSA operating from the CDR system. It also raises ATC for the

payment so received.

b. End to End Flow:

i) Accounting Entries for the revenue and taxes billed is done in the CDR system in the books of

the customer owning SSA (Operating from the CDR system) for the invoices issued by it.

When the invoice is paid, the details are sent to the SSA concerned. This constitutes the

„daily list‟ for the purpose of payment noting at the Payment Management System (PMS).

The payment receiving unit (ERU) will also issue an Advice of Transfer Credit targeted at the

customer owning SSA. The journal entry as follows will be passed by the ERU for the ATC:

Collection Bank A/c Dr.

To Remittance between Circle (Originating)




ii) When the daily list is entered into the system, the following accounting entries will get passed:

1132306 - „CDR based Claims recoverable from ERU Dr



1194502 To TR Collection




iii) PMS will send the batch to the billing system. The billing system will deal with the

batch in the usual manner. No special accounting handling is required at the billing system

level for ERU payments.

iv) The ATC received from the ERU will be accepted by Bhopal SSA (Operating within the

CDR system) in its External Financial System. The journal entry to be made by Bhopal SSA

will be as follows:

Remittance between Circles (Responding) Dr

1194506 -To ATC Settlement Account

v) A schedule entry will be done by the AO (Cash) for the ATC related payments on invoices

generated by the billing system. This schedule entry will lead to the following accounting

entries:

1194506-ATC Settlement Account Dr

1132306 To Claims Recoverable from ERU

vi) When the trial balance from the CDR system ERP and that from External Financial System

get merged, the GL code ATC Settlement Account will have a zero balance. In case this is

not the case, it will indicate missing or wrong accounting entries in the system.

Important Note: The same approach (with the required changes in GL Codes) is applied

for dealing with BSNL Web Portal Payments.



Scenario-III:

Bills generated in the ERU gets paid in the CDR system

a. Situation:

A customer makes the payment of a bill issued from an ERU through the PMS of the CDR

system. For instance a bill issued for leased line from an outside system (say TWARIT or

NIB-P3) gets paid through the PMS. No invoice or customer details are present in the CDR

system. The PMS will receive this as „Third Party System payments‟. The payment receiving

unit within the CDR system raises ATC for the payment so received in favour of the ERU

concerned.

No such ATC will be issued in case the third party system is parented to the SSA operating

through the CDR system.

b. End to End Flow:

i) Accounting Entries for the revenue and taxes billed is done in the ERU system for the

invoices issued by it.

ii) When the invoice is paid, the details are sent to the SSA concerned (Through the counter foil

of the paid invoice and a daily list in the form of statement of payments).

iii) The accounting for the payment will be done in the CDR system as follows

Claims Receivable from (the collection channel) Dr

To Third Party TR Collection Account

iv) The payment gets noted in the ERU.

v) The payment receiving unit within the CDR system will also issue an Advice of Transfer Credit

targeted at the customer owning SSA (ERU) from the EFS. The journal entry as follows will

be passed by the ERU for the ATC:

Third Party TR Collection A/c Dr.

To Remittance same/between Circle (Originating)






vi) The ATC issued by the CDR unit will be accepted by the ERU by debiting the

corresponding „Remittance‟ head and crediting the relevant account head for „Sundry Debtors‟

and Taxes etc in the ERU books.

vii) In case the system considered as ERU is parented to a unit operating through the CDR

system (as in the case of Hyderabad where leased line bills are issued through the

DOTSOFT system for which payment is received through the PMS as TPS payment), no ATC

will be involved. The unit (say Hyderabad) will directly pass a journal entry in their External

Financial System (EFS) debiting „Third Part TR Collection Account‟ and crediting Sundry

Debtors and others.

viii) When the trial balance from the CDR system ERP and that from External Financial System

get merged, the GL code 1194505- Third Party TR Collection will have a zero balance. In

case this is not the case, it will indicate missing or wrong accounting entries in the system.

9. Cheque Dishonour Scenario Cheque dishonour information is captured in PMS. Cheque dishonour information is reflected as a negative

receipt in the daily list of the day when the information regarding dishonour of cheque is received.

A. We have to segregate the cheques broadly into three categories.

1) Cheques submitted by customers and drawn in favour of the designated BSNL authority.

Such cheques from the customers are expected to come only through channels

(online/offline) directly operated by BSNL. Such cheques are entered into the collection Bank

book of the SSA before being sent for realization.

2) Cheques submitted by customers when payments are made at channels NOT operated

directly by BSNL. Such cheques are expected to be drawn in favour of the channel authority

concerned (say Post Master/Branch Manager of the Bank etc). Settlement between channel

and BSNL will happen only to the extent of cheques realized. But cheques dishonoured after

the daily lists are sent will be intimated to BSNL by the channel authorities.

3) Cheques received in settlement of the collections made by channels that are NOT operated

directly by BSNL. Such cheques are not expected to get dishonoured. Yet provision is

created in the system to deal with such dishonours too. In such cases the payments made by

the customer will not be affected.

B. In respect of (A.1) above, the accounting entries are as follows:



a) On the creation of daily list (and posting of payment after due verification). (Automated

Entries in the CDR System)

Claims Recoverable from BSNL Cash Counters Dr To

i. TR Collection Account Cr

(If the payments relate to bills issued from the CDR system) OR

ii. Claims Payable to CMTS Account Cr

(If payments relate to bills issued from the CMTS system) OR

iii. Third Party TR Collection Account Cr

(If payments relate to Bills issued from the External Financial System)

b) On Posting of the Payment by the CDR Billing System (Applicable for (i) above) (Automated Entries in the CDR System)

TR Collection Dr. To Sundry Debtors Etc Cr

c) On posting of Payment by the CMTS Billing System (Applicable for (ii) above) (Entries

in the CMTS System)

Claims Receivable from Basic Segment Dr To Sundry Debtors Etc (CMTS) Cr

d) On posting of Payment by the EFS Billing System (Applicable for (iii) above) (Entries

in the EFS)

Third Party TR Collection Account Dr To Sundry Debtors Etc (TPS) Cr

e) On Posting of the Collection in the Collection Bank Book of the SSA (In All Cases).

(Entries in the EFS) Bank Dr To TRC Settlement Account Cr

f) On Posting (Acknowledging) of the Collection in the PMS (As part of Schedule Entry)

(Automated Entries in the CDR System)

TRC Settlement Account Dr To Claims Recoverable from BSNL Cash Counters Cr



g) On Receipt of Cheque Dishonour information from the Bank (In All Cases).

(Entries in the EFS)

TRC Settlement Account Dr

To Bank Cr

h) On Posting of Cheque Dishonour in the PMS. (Automated Entries in the CDR System)

i. TR Collection Account Dr


ii. Claims Payable to CMTS Account Dr


iii. Third Party TR Collection Account Dr

(If payments relate to Bills issued from the External Financial System)

To

Claims recoverable from Cash Counter Cr

On TR reconciliation done by AO(cash):

Claims recoverable from cash Counter Dr

To TRC settlement account Cr

i) On Posting of the Dishonour by the CDR Billing System (Applicable for (i) above) (Automated Entries in the CDR System)

Sundry Debtors Etc Dr To TR Collection Account Cr

j) On posting of Dishonour by the CMTS Billing System (Applicable for (ii) above) (Entries in the CMTS System)

Sundry Debtors Etc (CMTS) Dr To Claims Receivable from Basic Segment Cr

k) On posting of Dishonour by the EFS Billing System (Applicable for (iii) above) (Entries in the EFS)

Sundry Debtors Etc (TPS) Dr To Third Party TR Collection Account Dr

C. In respect of (A.2) above, the accounting entries are as follows:



a) On the creation of daily list (Loading/Manual Batch entry in the PMS). (Automated Entries in the CDR System)

Claims Recoverable from <Channel Concerned> Dr

To

i. TR Collection Account Cr


ii. Claims Payable to CMTS Account Cr


(Payments related to Bills issued from the External Financial System not expected)

b) On Posting of the Payment by the CDR Billing System (Applicable for (i) above)

(Automated Entries in the CDR System)

TR Collection Dr. To Sundry Debtors Etc Cr

c) On posting of Payment by the CMTS Billing System (Applicable for (ii) above) (Entries

in the CMTS System)

Claims Receivable from Basic Segment Dr To Sundry Debtors Etc (CMTS) Cr

d) On Receipt and entry of Cheque Dishonour information from the Channel with respect

to Customer cheques drawn in favour of the Channel Authority. Entry is done in the PMS. (Automated Entries in the CDR system)

i. TR Collection Account Dr


ii. Claims Payable to CMTS Account Dr

(If payments relate to bills issued from the CMTS system)

To

Claims Recoverable from <Channel Concerned> Cr

e) On Posting of the Dishonour by the CDR Billing System (Applicable for (i) above) (Automated Entries in the CDR System)

Sundry Debtors Etc Dr To TR Collection Account Cr



f) On posting of Dishonour by the CMTS Billing System (Applicable for (ii) above) (Entries in the CMTS System)

Sundry Debtors Etc (CMTS) Dr To Claims Receivable from Basic Segment Cr

D. In respect of (A.3) above, the accounting entries are as follows:

a) On Posting of the Settlement Cheque from Channel in the Collection Bank Book of the SSA (In All Cases). It is assumed that for cheque payments received by the channels, they will settle with BSNL only to the extent of cheques realized by them( ie after deducting the dishonour amount if any) (Entries in the EFS)

Bank Dr To TRC Settlement Account Cr

b) On posting of the Settlement Cheque in the PMS (As part of the Schedule Entry) (Automated Entries in the CDR System)

TRC Settlement Account Dr To Claims Recoverable from <Channel Concerned> Cr

c) On posting of the Settlement Cheque Dishonour in the Collection Bank Book

(Entries in the EFS) TRC Settlement Account Dr

To

Bank Cr

d) On posting of Dishonour of SETTLEMENT CHEQUE in the PMS. (Automated Entries in the CDR System)

Claims Recoverable from <Channel Concerned> Dr To TRC Settlement Account Dr

10. Missing Daily Lists Scenario (Unadjusted Credits) This case will be treated as un-vouchered payment where the schedule amount is more than the consolidated

daily list amount and the difference is posted to the un-vouchered or unadjusted credit account. The feed for the

amount to be posted to unadjusted credits will be provided by PMS and adjustment of the same will be handled

internally by PMS and billing system. As and when the missing information is recovered, the amount is moved

from the un-vouchered account to TR Collection account or remittance account as the case may be, based on



feed from PMS. Subsequently, the relevant Sundry Debtors and other recoverable accounts shall be cleared

with a feed from the billing system.

Figure 29 Accounting entry for Missing Daily list

When in schedule, it is determined that a daily list is missing Debit Credit SSA

1132301 Claims recoverable from DOP 1000 SSA1 To 1194503 Unallocated TR collection 1000 SSA1 1194501 TRC Settlement A/c 1000 SSA1 To 1132301 Claims recoverable from DOP 1000 SSA1 When daily list information is obtained 1194503 Unallocated TR colln a/c 1000 SSA1 To 1194502 TR Collections 1000 SSA1



11. Reconciliation Bank reconciliation will not be handled in Accounting. TRC Settlement account shall only be maintained as a

control account for collection from banks as collection centre. This account shall be settled during the period

closing activities.

Bank Accounts shall be maintained at AO Cash level by AO Cash for each SSA.

Post Office:Reconciliation of schedule received from Head post office with Daily list received from Post office

will be done at time of posting schedule to be carried out by Payment Management System.

Bank:Reconciliation of schedule received from Head office(main branch) with Daily list received from Nodal

Branch will be done at time of posting schedule to be carried out by Payment Management System.

Reconciliation with other systems can be done by comparison of SSA wise GL Extract and trial balance

obtained from the Accounting system and a detailed report obtained from the base systems (Billing, PMS etc)

manually.

12. Accounting for sale of Pre-paid Cards/Modemthrough PMS counters

Direct sales in respect of the following items are taking place through PMS counter:

(1) Modem

(2) EVDO Cards

(3) NIC Cards

(4) VCC Cards

(5) GSM Prepaid cards

In addition to direct sales,there is also option to bill the modem costs through regular invoices. Modem cost is

configured inclusive of sales tax. Sales tax is not configured in the billing system. Hence it needs to be handled

in the EFS by taking the modem sales report from PMS/Billing.

The items at serial (1) ,(2) & (3) above are credited to

„1361007 Sale proceed from Modem‟ and

The items at (4) & (5) above are credited to

'1350804 Income against CDR PP card'

Necessary journal entries need to be made in the EFS to account for the actual items and the sales tax

element.



13. Accounting for Advance Payments

If a prospect customer makes an advance payment of Rs. 1000, PMS sends the feed in the form of a normal

daily list. The accounting entries would be as follows:

113230? Claims recoverable from <channel> Dr. 1000


On Schedule entry, the accounting entries would be

1194501 TRC Settlement account Dr. 1000

To 113230? Claims recoverable from <Channel> 1000

Billing system will send a feed file classifying this to be an advance payment. The accounting entries for the same would be:

1194502 TR Collection Dr. 1000

To 1191100 Advance from customers 1000

When the service is provisioned and the prospect becomes a customer, the invoice is generated and the following accounting entries would be done:

1110101 Sundry Debtors (Telephone) Dr. 1680

1110901 Service tax recoverable Dr. 100

1110906 EC Recoverable Dr. 15

1110909 HEC Recoverable Dr. 5

To 1310101 Fixed charges 1680

To 1192301 Service tax payable 100

To 1192306 EC Payable 15

To 1192309 HEC Payable 5

1191100 Payment received in advance Dr. 1000

To 1110101 Sundry Debtors (Telephone) 1000

Customer Invoice Fixed charges from subscriber 1680 Total 1680 Add Service Tax 100 Education Cess 15 Higher Education Cess 5 Grand Total 1800 Less: Advance payment Adjusted 1000 Net Payable 800



14. Period End Closing Activities

a. Income Received in Advance

Any billing done on income during an accounting period in respect of which service in full or part will

be rendered after the closure of the accounting period, the income part not belonging to the

accounting period will be treated as “Advance Income” to be transferred as income in the relevant

accounting period. Billing system to give the details of such advance income (separately for each

Type, SSA-wise) invoiced until the end of the period. Accounting entry for period closure will be

done by Debiting Revenue accounts (for each Type, SSA-wise) and crediting “Advance income not

earned “.

On 31st March before period closure Manual Entry will be passed based on report from billing : Revenue account head (e.g Fixed call charges) Dr. To Advance income (relevant application head e.g telephone) On 1st April in next year above entry will be reversed manually as income booked in advance is revenue for this current year

Advance income (relevant application head e.g telephone) Dr. TO Revenue account head (e.g Fixed call charges)

Let us consider a scenario where advance rental is charged for a year. The invoice would look like:

Customer Invoice

Advance Rental from subscriber for the full year i.e. Dec‟09 to Nov‟10. 1200 Add Service Tax 144 Education Cess 3 Higher Education Cess 1 Grand Total 1348

The accounting entries would be as depicted below:

1110101 Sundry Debtors A/c Dr. 1200 1110901 Service Tax Recoverable Dr. 144 1110906 Education Cess Recoverable Dr. 3 1110909 Higher Ed Cess Recoverable Dr. 1 To 1310101 Fixed Charges from Customer 1200 To 1192301 Service Tax Payable 144 To 1192306Education Cess Payable 3 To 1192309 Higher Ed Cess Payable 1

On receipt of collection from PMS, the Billing would give the payment settlement feed based on

which the following accounting entries would be generated:

TR Collection/Remittance accounts as the case may be Dr. 1348 To 1110101Sundry Debtors 1200 To 1110901 Service Tax Recoverable 144 To 1110906 Ed Cess Recoverable 3

To 1110909 Higher Ed Cess Recoverable 1



At year end On 31st March before period closure following Manual Entry will be passed based on

report from billing :

1310101 Fixed Charges from customer Dr. 800 To 1191701 Income Received in advance 800

b. Accrued Income

Revenue billed during an accounting period for which actual service was rendered in a previous period, will be

assessed and accounted for in the accounts of the relevant previous period as “Revenue Accrued”. Billing

system shall provide the details of such accrued income (separately for each SSA-wise) un-invoiced till the end

of the period.

On 31st March before period closure below Entry will be posted through feed file from billing :

Revenue Accrued (relevant type e.g Telephone) Dr.

To Revenue account head (e.g Fixed call charges)

On 1st April in next year above entry will be reversed manually.

Revenue account head (e.g Fixed call charges) Dr.

To Revenue Accrued (relevant type e.g Telephone)

Following are typical entries that would be done manually for accrued income booking:

1131001 Revenue Accrued-Telephones Dr. 1000

To 1310201Local call charges 500

To 1300202 STD Charges 500

These entries would have to be manually reversed on the first day of the next year.

c. Interest on Deposit (Fiscal year end)

Security Deposit:

Interest is only posted to Security deposits with account category PT (PCO related deposits).

The interest on deposit amount would be computed and applied as adjustment in the bill of the customer,

depending upon the bill cycle.

As far as interest accounting approach in BSNL is concerned.

a. Interest computations and its incorporation in to books would always be done by debiting the Interest

(Expenditure) head and Crediting the „Interest Accrued on..‟ (Liability head).



b. The setting off of interest against recoverable dues will always operate the „Interest Accrued on..” head

only.

c. The above approach is applicable for computation of interest irrespective of the point at which it is

computed like bill-cycle, calendar month, annual etc.

When Interest is calculated and posted in system,following are the entries:

1950805 Interests on PCO Deposits Dr

To 1191306 Interest Accrued on PCO Deposits

When outstanding balance is settled

1191306 Interest Accrued on PCO Deposits Dr

To Sundry Debtors

To Service tax payable

To EC Payable

To HEC Payable

d. Accrued Interest on Deposit

The interest for the PCO deposits (security deposit type) for which billing cycle date falls later than 31st March &

whose interest is to be calculated at their respective billing cycle date after the close of the financial year , then

in that case the interest accrued is calculated for the period up to 31st March & the report is given to the

accounting on the basis of which the following accounting entry is passed

On 31st March before period closure Manual Entry will be passed

1950805 Interests on PCO Deposits Dr

1191306To Interest Accrued on PCO Deposits

On 1st April in next year the above entry would be reversed 1191306 Interest Accrued on PCO Deposits Dr. 1950805 To Interests on PCO Deposits Voluntary Deposit: As the interest on deposit amount would be computed and applied as adjustment in the bill of the customer

depending upon the bill cycle, the treatment of the same is as follows:

When Interest is calculated and posted in system

1950804 Interests on Voluntary Deposits a/c Dr

To 1191307 Interests Accrued on Voluntary Deposits

When outstanding balance is settled

1191307 Interests Accrued on Voluntary Deposits

To Sundry Debtors etc.

The interest for those Voluntary deposits who‟s billing cycle date falls later than 31st March & whose interest is to

be calculated at their respective billing cycle date after the close of the financial year i.e. 31st March is to be



calculated for the period up to 31st March & the report to be given to the accounting on the base of which the

following accounting entry would be required to pass manually;

1950804 Interests on Voluntary Deposits Dr

1191307To Interest Accrued on Voluntary Deposits

The above entry would be reversed on the next day i.e. on the 1st April of the next year.

1191307 Interests Accrued on Voluntary Deposits Dr

1950804 To Interests on Voluntary Deposits

Interest on Deposit not provisioned :

The interest on application deposit is to be dealt with as follows .

a. The interest due on the pre-connection deposits migrated as per the Waiting List will be computed by

each SSA for the period up to last day of the previous financial year (31 Mar)

b. This amount will be brought into the CDR system as opening balance on interest accrued on pre-

connection deposits. This is one of the OB GL codes (1191399)

c. When connections from the waiting list are given through the CDR system, it will compute the total

interest due on the deposit from the date of payment of deposit to the date of service provisioning. It will

deduct the interest accrued as already available to the credit of the waiting list account from this total

interest amount. For the balance amount, the following journal entry will get passed.

1950806 Interests on Pre Connection Deposits Others a/c Dr

To 1191399 Interest accrued on Pre-connection Deposits Others

Note: The GL code for others is used since in the CDR system a common GL code (1191100 advance from

customers) is used for application deposits.

d. The interest to the extent feasible will get set off against the first bill issued to the customer by debit to the

“Interest Accrued on pre-connection deposits Others”.

e. At the close of each post-migration financial year, the CDR system will compute the total interest due on

the deposits pending as on 31 March of the year on account of non-provisioning of the service. The

amount already credited as accrued interest will be deducted from this total interest due as computed and

the net amount will be accounted for in the system by passing the following journal entry.

1950806 Interests on Pre Connection Deposits Others a/c Dr

To 1191399 Interest accrued on Pre-connection Deposits Others

The treatment of interest accounting for post-connection deposits and pre-connection

deposits are different. In relation to post-connection deposits, interest is available only

for special cases like PCO deposits and Voluntary deposits. There can be two

approaches to computation of interest in such cases.



a. Compute the interest on calendar month basis.

In this case there will be no year-end special entries. The interest will be computed on

the last day of each month and entries will be passed debiting „Interest on ...‟ and

crediting „Accrued interest...‟. In this case there will be no reversals also.

b. Interest is computed on a bill-cycle basis.

In this case interest is computed based on the bill-cycle, at the point of generation of

the invoices. Taking an example, if bill-cycle is 16 Mar 2010 to 15 Apr 2010 and bills

are generated on 20 Apr, the interest for the period 16 Mar 2010 to 31 Mar 2010 will

get computed on 20 Apr 2010. On this date, a journal entry will be passed debiting

Interest expenditure and crediting „Accrued interest..‟. This happens in the FY 2010-

2011. But the interest burden for the period 16 Mar 2010 to 31 Mar 2010 should have

been borne by FY 2009-2010. To take care of this, a journal entry is passed (year end

entry) on 31 Mar 2010 for the interest liability for the period from 16 Mar 2010 to 31

Mar 2010 by debiting expenditure and crediting liability in the FY 2009-2010.

Now let us assume the interest amount is Rs.125/- for the period from 16 Mar 2010 to

31 Mar 2010 and that the interest that would get computed as per bill -cycle interest

computation configured in the system for the period 16 Mar 2010 to 15 Apr 2010 is

Rs.200/-.

As per the proposal above, on 31 Mar 2010 entries as follows will get passed.

Interest Dr 125

To Accrued interest Cr 125

The expenditure is borne by FY 2009-2010.

Since the interest computation configuration is not fiddled with, irrespective of the fact

that interest for a part of the bill-cycle was taken care of in the previous FY, the billing

system will compute interest again for the full bill-cycle. This is the reason why we

have to reverse the entries on 01 Apr 2010.

On 20 Apr 2010 entries will be created as follows:

Interest Dr 200

To Accrued interest Cr 200

The net expenditure is borne by FY 2010-2011.



Now the accounts will have balances as follows:

INTERES ACCOUNT (P&L Item)

Date Description Amount (Dr)

Date Description Amount (Cr)

31 Mar 10

To Accrued Interest

125.00 31 Mar 10

By P & L Account 125.00

ACCOUNT CLOSED BY TRANSFER TO PROFIT AND LOSS ACCOUNT

20 Apr 10

To Accrued Interest

200.00 By Accrued Interest

125.00

By Balance 75.00

200.00 200.00

ACCRUED INTEREST ACCOUNT (Balance Sheet Item)

Date Description Amount (Dr)

Date Description Amount (Cr)

01 Apr 10

To Interest 125.00 31 Mar 10

By Interest 125.00

To Balance 200.00 20 Apr 10

By Interest 200.00

325.00 325.00 It may be seen from the above that by carrying out the reversal we have been able to achieve the following. a. The interest expenditure of Rs.125 is borne by FY 2009-1010.

b. The net interest expenditure of only Rs.75.00 is borne by FY 2010-2011.

c. The system configuration for bill-cycle based interest computation is undisturbed.

d. The customer gets a total interest of Rs. 200/- which is his right due.

For application deposits, interest is calculated only annually.

NO reversal is applicable for application deposits. The calculations are done each year until

the service is provided.

In relation to working connection deposits for which accrued interest is computed on 31 Mar,

the reversal is done on 1 Apr. The entries and reversals are manual operations. The person

making the entry has to ensure that reversal is done only for accrued interest applicable for

post-connection deposits for which interest computation is done on the basis of bill cycle and

also that amount reversed is right.



15.Refunds:Following heads are operated with regard to refunds and adjustments:

1193001- Refund on excess/double payments 1193002- Refund due on closed connections. 1193003 – „Refunds due on working connections‟ 1193004 – „Refunds due on pre-connection deposits and advances‟ Refund on excess/double payments: The excess payments are posted to this GL code and will, in the normal course, only get set

off against future bills to be issued to the customer. No cash (which includes cash

equivalents like cheque etc) refunds will operate on this GL code.

All refunds done otherwise than through adjustment in future bills will need a sanction to be

issued by the competent authority. The sanction/ or the approval for refund conveyed through

the system (CRM module) will pass an accounting entry debiting the 'Refunds dueon

Excess..etc. and crediting 'Refunds dueon working connections'. As the basic concept is that

the AO (Cash) will operate TRC settlement Account head only for all transactions passing

through the Cash/Bank book related to TR operations, when the cheque is issued, the cash

book entry will be 'TRC settlement account' Dr to Bank. The fact of the issuance of the

cheque will be required to be entered by the cheque issuing authority in the CDR system. The

CDR system will convert this into a journal entry debiting' Refunds dueon working

connections' by credit to 'TRC settlement account'. When the trial balances from the CDR

system and the EFS are merged, TRC settlement account will get a zero balance.

Refunddueon working Connections :

Sometimes the customer is active and he disconnects some add-on services .In such cases the customer

seeks to have some refundable amount to be paid to him rather than being adjusted against future invoices.

Following will be the accounting entry for this:

Relevant deposit/income head Dr

To Refund due on working connections

On issue of sanction & feeding of Cheque details in PMS:



Refunddueon working Connections Dr. 1193003

To TR Settlement 1194501

Refund due on closed connections:

In relation to closed connections, the account finalization will look into all un-billed charges,

adjustments, deposits (dealt with as advance payments in the CDR system) including Credit

Vouchers Pending for invoicing, Debit Vouchers Pending for invoicing, Refunds on Excess

Double payments etc and finalize the accounts. If any amounts become refundable, this will

be moved to 'Refunds dueon closed/surrendered services' by debiting the heads of original

booking as mentioned above. This is effectively the 'refund approval' for closed accounts.

Beyond this, the refunds/entries will happen as mentioned for Excess payments with

necessary changes in the GL codes being operated.

Refunds due on pre-connection deposits and advances:

There is a third GL code for 'Refunds dueon pre-connections deposits' meant for applications

payment refunds involving cancellation of demand notes.

The amount from Excess Payment head does not get moved directly to the 'TRC settlement

account'. The sanction moves it to one of the below mentioned three heads. The actual

issuance of cheque and its entry in the system will only move it from these heads to the credit

of TRC Settlement Account. This is done so to enable us track the cases of sanctions issued

and refund cheques not issued.

The amount moved to the following three refund heads will not be available for adjustment

against future bills.

1. Refunds due on working connections

2. Refunds due on closed/surrendered connections

3. Refunds due on pre-connection deposits (on account of cancellation of demand and dealt

with as advance payments in the CDR system).

In all other cases the amount will be available for adjustment against future bills unless and

until it gets moved into one of the above three heads depending upon the type of refunds



done. The booking under application deposit (advance payment) will be available for

adjustment beyond the provisioning of the service sought.

16. Accounting treatment for OYTrebate in CDR System

The calculation of rebates, refund amount and other related adjustments will be done by the Billing system and

accounting system will post the entries based on the feed from the billing system.

Following are some of the features of OYT deposit:

This deposit would be a non-interest bearing deposit applicable to existing customers only.

Rebate and administrative (accounting) charges are applied on monthly basis and the available OYT

deposit would be reduced based on feed from Billing system.

At the time of closure , the OYT deposit available would be completely refunded to the customer.

No new OYT deposits will be collected .

„1310102 - Share of Fixed Charge Transferred from OYT Deposits‟ is an existing head under

„INCOME FROM SERVICES - TELEPHONES (OTHER THAN RURAL)‟. This is an Income (Final)

head and not a suspense head. Ideally we are not expecting any debit under this GL Code.

As per the original concept of the OYT deposit operation, billing to the customer is expected to be

done only for the net amount. At the close of the year, we were expected to compute the amount of

OYT deposit that was actually due for adjustment against bills and transfer the sum from OYT Deposit

to the GL code „Share of Fixed Charge Transferred‟.

But after the introduction of Service Tax, we are expected to do the fixed charge billing for the full

amount (and compute ST on it) and set off the OYTrebate against it. As such the GL code „1310102 „

becomes impossible to be operated as originally conceived.

In the CDR system, the process is that irrespective of the bill cycle, it computes the OYTrebate

applicable for each calendar month (and parks that amount under GL code „1310102‟). When actual

billing is done income is booked for the full fixed charges and to the extent of OYTrebate, amount is

transferred from „1310102‟ to the credit of „Sundry Debtors‟ etc.

Posting Adjustments from billing feeds

Let us assume the following example:



Monthly Rental Rs.180

OYT Deposits Rs.15000

Rebate @ Rs.4 per thousand rupees per month for Rs.15000 = Rs.60

Rental payable by the subscriber (180-60) Rs.120

For accounting of the OYT rebate, the following entries would be passed;

On 1st

of every month

1192701 OYT Deposit (After Connection) Dr 60

To 1310102 Share of Fixed Charge transferred from OYT Deposit Cr 60

o When Rebate is adjusted against outstanding balance

1310102 Share of Fixed Charge transferred from OYT Deposit Dr 60

To 1110101 Sundry debtors 54.40

To 1110901 Service tax recoverable 5.45

To 1110906 EC Recoverable 0.10

To 1110909 HEC Recoverable 0.05

For adjusting the Accounting Charges – billing will calculate accounting charges based on agreed

rate and post the same on 1st

of every month.

Accounting charges are to be adjusted and appropriate entry need to be posted

1192701 OYT Deposit (After Connection) Dr 2.50

To 1410199 Other Receipts Cr 2.50

17. Implementing Bundled PC EMI solution in the CDR system

The salient features of this scheme is available in C.O. circular No: 64-35/2009-Broadband Dated 09-11-

2009.

The accounting procedure is as follow:

“Let us assume that the total cost of the HCL bundled PC is 24,000. Upfront amount is 6000 and 12

instalments of 1500 each.”

The upfront payment is not raised, received or accounted for in the CDR system. The

CDR system will deal with the case as if the total price of the equipment is Rs. 18000/- to be

recovered in 12 monthly instalments of Rs.1500/- each.

When the bill for the EMI is raised each month the following entries will be passed on to the

accounting system.



1132701 – „EMI for PC/Laptop as PC bundling scheme for Broadband‟ Dr. Rs. 1500.00 To 1193401 – „Payable to PC/Laptop Mfg. for EMI of PC under bundled scheme‟ Rs.1500.00

No sundry debtors are raised here. This is very similar to the way we deal with Deposits

billed through invoices.

When payment is done, it would come through the PMS which only understands the total

invoice amount and not its classification.

The Accounting Entry for daily list entered in the PMS will be as usual. Assuming online

counter payment, it would be as follows:

Claims Recoverable on online payments Dr. Rs. 1500.00 To TR Collections Rs.1500/-

There will be no change on further activities regarding the collection and its accounting in the

cash book.

When the payment gets posted in the Billing system, to the extent of EMI included in the bill,

the accounting will be as follows:

TR Collections Dr. Rs.1500

To

1132701 – „EMI for PC/Laptop as PC bundling scheme for Broadband‟ Dr. Rs. 1500.00

The difference between the bookings under 1193401 and 1132701 (1193401 is expected to

have a balance equal or greater than the balance under 1132701) represents the EMI

collected and not sent to the hardware supplier.

When the EMI amount is transferred to the hardware supplier, a cheque is issued by the AO

(Cash). As a rule, the AO cash will operate only one GL code for all TR related payments and

receipts. So cheque issuance will be captured in the EFS (Cash/Bank book) as

TRC Settlement Account Dr Rs.1500/- To Bank Rs.1500/- (In fact there is Re.1/- commission BSNL can claim on each EMI which is ignored since the

complications it would create is not worth the efforts involved. Some solution to deal with it

outside the CDR system will have to be thought of if BSNL is really interested in that Re.1/-)



The information on cheque issued will be input in to the CDR system. The result would be as

follows.

1193401 – „Payable to PC/Laptop Mfg. for EMI of PC under bundled scheme‟ Rs.1500.00 To TRC Settlement Account Rs.1500/-

At the end of the accounting month/year the balance under GL Codes 1193401 and 1132701

should be equal in theory. Any difference should be a higher amount under 1193401

indicating collections received and not transferred to the hardware supplier. Since actual

cheque for March will get issued in the month of April, there will be a higher amount under

1193401 as on 31 March. For instance if the net balance 1132701 is Rs.30000/- and that

under 1193401 is Rs. 40000/-, the difference of Rs.10000/- will go into the Balance Sheet

under „Current Liabilities‟.

The amount collected and not settled will be the balance. The collection is already in the

Current Asset and Cash/Bank balance. What is required is a corresponding figure on the

Liability side of the Balance Sheet indicating that the collection does not really belong to

BSNL.

GL Cod 1132701 cannot have a balance in excess of the balance under GL Code 1193401.

The term „after adjusting‟ used in the above para would not mean that a journal entry be

passed for adjustment. It should only imply that the effective balance only would be brought

into the balance sheet. The balances under GL Codes 1193401 and 113270 will get carried

over without any change into the books of the next financial year.

“If the customer disconnects his BB before the 12 instalments are over, whether the pending instalments will be cancelled ?”

The balance will be cleared from the debit of the customer accounts. A journal feed will be given debiting 1193401 and crediting 1132701 to clear it from the suspense heads.

“Whether during account settlement total outstanding against that account is to be

considered for write off ?”

There will be no „write off‟ in this case. Write off will apply only in relation to BSNL income. This is not BSNL income and is not considered or accounted as part of Sundry Debtors.



18. Migration Strategy:

Accounting is done in the CDR system based on actual details. These details are

sitting in the collaborating modules forming part of the CDR system. These are primarily the

Billing and PMS modules. As far as opening balance is concerned, the details are expected

to be available in the billing system alone since PMS starts its operation from the „go live‟ date

only. This would mean that unless billing system is populated with the required data, the

accounting system cannot create the opening balance. In short there can be no opening

balance creation without completing data migration.

The strategy we are following for financial data migration is that all transactions that

occur prior to the „go live‟ date must get incorporated in the source billing system to arrive at

the closing balance in the source system and all transactions taking place from the „go live‟

date will be dealt with in the CDR system. The „go live‟ date is the date on which the Payment

Management System (PMS) deals with its first transaction. The closing balance in the source

billing system is to be taken as the OB in the CDR based system. In the event of migration

happening between the first and last day of a month, the sub-ledger and therefore accounting

for the first month will take place for parts of the month in each of these systems.

Opening balance will be created only for the 15 or so GL codes that are part of the Balance

Sheet items of the company. P & L related GL codes will be dealt with separately in each of

these systems for the related periods. Balances on these are not brought over to the CDR

system.

Let us now take the case of Sundry Debtors (LL) as an example and understand the situation.

We are dealing with multiple balances in the various systems. These are:

a. A balance shown in the books of the SSA (We have named it as the External Financial System or EFS

with reference to the CDR system).

b. The sum of customer-wise balance sitting in the existing billing systems.

c. The sum of customer-wise balance extracted for migration from the source billing system.

d. The sum of customer-wise balance loaded into the CDR system.



Now, the situation obtaining could be something as follows:

i) There are substantial differences between (a) and (b). This is the result of the accumulated errors

and inconsistencies in the operation of the legacy systems.

ii) There can be a difference between (b) and (c) too since some sort of purifications are carried out in

the process of migration. For instance, we may not migrate the invoices in which surcharge alone is

outstanding. Also we may ignore invoices with less than Rs.10/- outstanding. In other words the differences can

arise on account of the policy we have adopted in doing financial data migration.

There can also be differences between (b) and (c) on account of data extraction errors. Some invoices fail to get

extracted on account of errors in the extraction application or on account of data errors etc. Such errors are

expected to be cleared before the final data extraction for migration is carried out. If there is a failure on this, it

will lead to extra difference between (b) and (c).

iii) Ideally, there should be no difference between (c) and (d). But in reality there may be mistakes that

occur during data transformation or data loading. Thus there may be a difference. This difference too is

unacceptable and should be cleared before final data transformation and loading takes place in order to ensure

that all the data extracted get loaded rightly into the CDR system.

So the correct after-migration situation would be that we have invoices in the CDR system that are expected to

be there as per the migration policy we are following. We have to reconcile the balances between the data

extracted and data in the source billing system. The difference will be explained by the migration policy. The

next reconciliation is between balances extracted and balances finally found in the CDR system. There should

be no difference between the two at the aggregate level. But there may be differences at lower level

classifications. For instance the balances under Sundry Debtors LL and Sundry Debtors BB as arrived at from

the extracted data and loaded data may differ on account of difference in allocation policy followed in relation to

partially paid invoices by existing and target systems.

Now what we have at the point of the completion of (first stage) migration is only provisional

balances. This is on account of the payments that remained in the pipeline as on the „go live‟ date.

These payments have to get incorporated into the provisional balance for arriving at the final closing/opening

balances. The process is what we have been calling the „delta‟ migration. Ideally all payments relating to the

period prior to the go live date and reaching us subsequent to the date of „data cut‟ (the date on which database

export is taken) will have to be processed through the source billing system also. This is because we have to

process the sub-ledger for the period up to the „go live‟ date in the source billing system.

Once delta migration is completed, the final balances based on actual data migrated and sitting in the CDR

system with all transactions for the period up to the date of „go live‟ incorporated into it will provide the figures

required to create the OB in the CDR system. It is expected that a journal feed on this will go from the billing

system to the accounting system. The OB will now be frozen.



The OB arrived at in the CDR and the balances in the source as per data migrated may have some minor

differences as already explained above. There may be differences at lower level classifications. For instance the

balances under Sundry Debtors LL and Sundry Debtors BB as arrived at from the extracted data and loaded

data may differ on account of difference in allocation policy followed in relation to partially paid invoices by

existing and target systems. The difference arises as a result of surcharge considered in target due to expiry of

pay by dateat the time of migration whereas in source it might not have been considered. In such case it needs

to be accounted for in source to agree with target. Conversely the Source system might have considered

surcharge even though not due at the time of SLR run for the period upto date of data-cut but the same might

not have been migrated to the target CDR system.

There may be differences in service tax also . These differences need to be handled with one time Journal entry in source as follow:

Details LL SC BB Tax Total

A Source invoice 10000 300 5000 1500 16800

B

Paid & allocated in source

8000 300 800 9100

A-B

Balance in source 2000 0 5000 700 7700

C Payment allocated as per target

5579 2708 813 9100

D Balance as per Target

4721 2292 687 7700

(A-B)-D

Difference between source & target

-2721 2708 13 0

Journal entry required in source: Dr Cr

Sundry Debtor (LL) 2721

To Sundry Debtor BB 2708

To Service tax recoverable 13

The difference arising out of non-migration of certain data as per migration policy needs to be

reconciled separately. The above treatment is only for the source data actually migrated and

Assuming a tax rate of 10% & total outstanding of Rs 16,800



there are differences due to partial payment at source and different payment allocation policy

across systems.

19. Revised Strategy for Financial data/Delta payment Migration(with effect from 01/10/2010): Introduction:

A standard approach to deal with migration of financial data from the existing SSA level

systems to the CDR based billing and customer care system was devised earlier, keeping in

mind a strategy that will enable „any day‟ migration. This strategy has evolved taking into

account the views of teams involved from both BSNL and TCS. Under this strategy, normally

delta payment data is expected to be provided to migration team within 10-15 days of a SSA

going live on CDR. Adherence to this policy is critical due to its impacts on future SLR, bill

runs and accounting data updates.

However, post go-live, some major issues are observed as noted below since majority of

the SSAs are not adhering to the guidelines; They are:

Wrong disconnections due to non-updation of delta payments in time.

Delay in generation of SLR.

Delay in sending opening balance feed to accounting system

Delay in Bill generation in target system pending updation of delta payments.

In case of abnormal delay in updating the delta payment, bill generation happens in

target system without posting of delta payments .As a result, some times it so happens

that the delta payment gets allocated to target generated invoices. It makes the task of

arriving at the correct opening balance very difficult.

In some cases SLRs in target system are generated and after that delta is provided by

SSA. In such a case there will be a mismatch in this month closing balance and next

month opening balance due to the delayed delta posting.

In order to avoid delay and simplify the process, it has been decided to implement a revised approach in dealing with delta payments in the Financial data migration.

Definitions: Delta payment is that payment received in source system after data-cut either in online or offline

relating to the period prior to Go-live Date.



Source Systemis the SSA level systems currently managing the operations and data that are

being migrated to the CDR based customer care and billing system.

Data Cutis the activity of extracting the data required in the target system for enabling its

operations, from the source system.

Cutover Dateis the date on which the „data cut‟ is taken for the last time from the source

system for being loaded into the target system.

Cutover Data is the data that is extracted from the source system on the cutover date and

loaded into the target system.

Go Live Date is the date on which CDR system is opened for operation either fully or partially

to the SSA level users. Payment Management System (PMS) is the first module going live

from the target system.

Target Systemis the CDR based Customer Care and Billing System (Operation Support

System/Business Support System ) being implemented to replace the „Source System‟.

Revised Migration Strategy:

1. All bi-Monthly Customers, whose billing cycle ends on the last day of the „go live‟

month, will be issued a single month‟s Bill from the source system for the period up to

the end of the month immediately preceding the „go live‟ month. Data Cut will be taken

only after these bills are issued. For instance, assuming that „go live‟ date is „any day‟ in

September 2010, bi-monthly customers whose bill cycle covers the period from 01 Aug

2010 to 30 Sep 2010, will be issued a bill for the period from 01 Aug 2010 to 31 Aug

2010. These customers will be issued another monthly bill for the month of Sep 2010

from the target system. Beyond this, the customer will receive bi-monthly bills as usual

from the target system. In order to avoid hardships to the customers on account of this

change, the pay by date related to the monthly bills issued to bi-monthly customers

may be suitably extended. When the second monthly bills are issued to the customers

from the CDR system, following the „balance carry forward‟ approach, all previous

outstanding will also get included in it. Any notice to be issued to the customer to

communicate this interim change in billing schedule will be taken care of by the SSA

concerned



2. All online counters in the source system will be temporarily stopped from accepting

payments before data-cut is taken. This activity can take place during night/closed

hours or on a holiday.

3. All online counters will be finally processed and payments updated in the source billing

system.

4. Data-cut will be taken immediately on updation of online payments in the source billing

system. The data-cut should take care of the complete data in source including

deposits (at refundable value), unbilled deposits, unbilled debits, unbilled credits,

accrued interests ,accrued income, advance income, etc.

5. A Sub-ledger (source-SLR-I) for the period upto the end of the previous month of Go-

live will be generated in source system after data-cut.

6. Another Sub-ledger (Source-SLR-II) for the partial month from first of the go-live month

to the date of data-cut will be processed in source in succession.

7. Once the above two sub-Ledgers are processed , the online counters of the source

system will be allowed to accept normal invoice payments till such time PMS (Payment

management System ) starts operation in the CDR system within a day or two. No

transactions other than payment acceptance on invoices issued from the source

system will be permitted in the source system beyond the point of „data cut‟. However

sales transactions that have no impact on „cut over data‟ can continue.

8. After cut-over, the online counters of source system will merely function as offline

collection channel for acceptance of payments from the customers across the counters

(online) till PMS goes LIVE .

9. Demand Note Payments are not expected in the source system beyond the „cutover

date‟. However, any demand note in the pipeline as at the point of „data cut‟ and

coming into the source system after the „data cut‟ will need to be re-issued from the

target system.

10. Payments, during the delta period, which involves the restoration of service under

suspension for non-payment of dues, shall be managed by the source system.

11. All online counters in the source system will be stopped and PMS system in the target

will start operations.

12. All normal payments (excluding delta payments) will be accepted through PMS.

13. A summary report from source billing system will be generated by the SSA (Annexure-

IA). A similar statement from cut-over data(before transformation) will be generated by

the migration team(Annexure-IB). Normally there should not be any difference between



these two. However SSA needs to be convinced for the difference, if any, between

these two reports by the migration team by making a reconciliation.

14. Cutover data will be transformed and uploaded into the target billing system.

15. Migration/billing team will generate an account head-wise (GL Codewise) provisional

statement both from cutover data and data uploaded into the target billing

system(Annexure-II) . A reconciliation of these two statements will be carried out

immediately. Mostly there may be differences only in sundry debtors, service tax &

surcharge and that too due to the migration policy and change in payment allocation

logic in the target system. This difference needs to be explained to the SSA by

migration team. (Invoices prior to 1.4.97, invoices of MSC WLL, invoices having only

surcharge as outstanding etc. are not migrated as per the migration policy. For partially

paid invoices, due to different allocation logic of payments in the target, there may be

internal difference between debtors and service tax as compared to source and target

but the total of Debtors(LL including surcharge+BB) and service tax as per uploaded

data in the target should match with the corresponding invoices in cutover data). The

complete details of invoices migrated has to be provided by the migration team showing

the details as per source and target in a text dump (preferably pipe separated text file,

since SSAs find it difficult to handle the dump presently being provided). This has to be

in the format given in Annexure-III.

16. Once the above provisional reconciliation is done, the delta payments including the

online payments in the source accepted after data cut, will be dealt with through a

separate sub-channel in the target system.

17. A separate franchisee (collection sub channel) namely „Delta„ will be configured in

PMS under the dummy channel „Others „ which is specific to delta data.

18. All delta payments will be posted by SSA in PMS under this franchisee „delta‟ sub-

channel only. SSAs will take extra care not to post the normal payments relating to the

period on or after go-live date in this delta sub-channel. Migration/PMS team need to

extend the support to SSA in preparation of the structured files for uploading in delta

channel. SSAs should take care not to make any duplicate entries in delta channel and

system will not take care of this aspect. SSAs should also take care not to enter

payments to wrong accounts or incorrect payments. SSAs will not make any schedule

entry in delta channel and migration team may emphasize this point to SSAs.

19. These delta payments will be processed in target system as normal payment.

20. These delta payments should not be updated in source system since it technically

stands closed from the time “data cut” is initiated .



21. All delta payments will be entered into the PMS with ACTUAL DATE OF

TRANSACTION . Books will be opened for the migration month AND ONE previous

month in the CDR system to take care of any delayed payment.(In other words the

go-live date will be temporarily shifted to first of the previous month called

„temporary go-live date‟).It would be the responsibility of the SSA to ensure that all

payments related to earlier periods are accounted for before data cut is taken. For

instance, if migration is done in July with „go live‟ on 12 July 2010, the books of June

2010 too will be opened. PMS will accept payment belonging to June 2010. But it WILL

NOT accept payment related to a period prior to 01 June 2010 UNDER ANY

CIRCUMSTANCES.

22. The SSA will have 15 days from the date of „go live‟ to identify and bring all payments

related to the period up to „go live‟ date into the PMS. The SSA has to furnish a

confirmation to the effect that all such payments have been accounted for. The SSA will

also furnish the details of cheques dishonoured prior to data-cut but not reversed in

source prior to data cut within 15 days from the date of „Go-live‟.

23. The balances of the migrated invoices in the target billing system will be manually

corrected by the migration team for such cheque dishonour cases. The source SLR-I/II

closing outstanding balances will be manually increased to the extent of cheque

dishonour. No manual correction of migrated invoices in target will happen if the

cheque dishonour relates to delta payments. Instead such cheque dishonour cases will

be posted in PMS through delta sub-channel.

24. The first bill run to happen in Target system only after receiving confirmation from the

SSAs to the effect that all delta payments have been posted. Migration team should

also confirm that the balances of migrated invoices have been manually corrected in

respect of cheque dishonour cases..

25. Once confirmed, a sub-ledger (Target-SLR-I) will be generated from the target CDR

system by the billing/migration team for the previous month to cover the delta

payments of previous month. This SLR will have only the delta payments relating to the

previous month and no billed invoice details (already available in Source-SLR-I) will

appear in this target-SLR-I.

26. Source-SLR-I and target-SLR-I when clubbed gives the full sub-ledger for the previous

month .In other words the delta payments figuring in Target-SLR-I for the previous

month will be reduced from the outstanding balance in Source-SLR-I. This way the

complete payments of the previous month is taken into the relevant SLR of that month.



27. The opening balance of Source-SLR-II (from first to Go-live date) will be corrected to

the extent of closing balance arrived at in the full Sub-ledger for the previous month as

above.

28. The SSA has also to furnish the left over details ,if any, to the migration team well in

time so that they can update all these details in target billing system before SLR for the

go-live month is generated from target system. This should be completed not later than

20th of the next month from Go-live month.

29. The Sub Ledger (Target SLR-II) for the „go live‟ month for the period from the „go live‟

date to the end of the month will be processed in the CDR system by 23 rd of the next

month.

30. The full Sub Ledger for the „go live‟ month will be compiled by combining the Source-

SLR-II and target-SLR-II.

31. No schedule entries will be required for daily lists belonging to the period prior to „go

live‟ date.

32. In case of a schedule which overlaps the Go Live date (schedule has collection details

for the period before Go Live date and after Go Live date), SSA will bifurcate it into two

different schedules, first having the pre-go-live collection details, which need not be

posted in the „delta‟ sub channel of the target system and second having the post-go-

live collection details, which will be posted in the normal channel of the target system.

33. On receipt of the confirmation from SSA on completion of all delta payments in to the

CDR system, the daily lists for the period concerned will be marked as „schedule entry

completed‟ in the CDR system by the PMS team.

34. In order avoid feeding any further payments with pre-go-live date, the „temporary go-

live date‟ will be changed to the actual „go-live date‟ in the system.

35. A summary report of payments fed through delta sub-channel (including cheque

reversals) will be generated from PMS by the TCS /O &M team. A GLcode-wise report

for the delta payments(including cheque reversals) fed in delta sub-channel of PMS will

also be generated by migration/billing team from the billing system. Taking these and

the reconciled cut data figures into consideration, the migrated opening balance will be

arrived at as in annexure-IV.

36. It is not necessary that journal feeds based on the initial data (cut over data) be sent to

the Accounting Module of the CDR system. The data and payment transactions may

remain in the billing system. Reconciliation will be done based on reports to be



generated and provided by TCS from both source and target billing systems as

mentioned above. This will ensure that the data is reconciled as on the date of go-live.

37. A stage-I reconciliation report (annexure-V) to signoff the Opening Balances by TCS

and BSNL (SSA) will be generated after the „delta migration‟. This report will present

the Opening Balances under the designated GL codes as on the „go live‟ date. The IFA

of the SSA will furnish a certificate duly signed on the reconciliation of source

and target data in the format given in Annexure-VI.

38. Once the reconciliation reports for the opening balances are created and signed off by

the stake holders, the required journal feed will be given by the Billing system covering

all transactions for the pre-go-live period including the migrated data. This should take

care of the entire migrated data as at the point of data cut and all the transactions

impacting it related to the period up to the „go live‟ date.

39. The required manual journal entries will be passed at the DC level to take care of the

accounting impact of the non-entry of schedules through the PMS for the delta

payments. The details will be furnished by PMS/migration team and the accounting

team will provide the necessary Journal template. There will be an accumulated debit

against the head „Claims recoverable from others-Delta Channel‟ for the total amount of

delta payments posted through this Channel and this will be cleared by a manual

journal entry in CDR Accounting system as follow at DC level:

1194501 TR settlement account Dr

To 1132399 Claims recoverable from others-Delta Cr

The settlement cheques for these delta payments will be classified as „TR settlement

account‟ in bank books. All bank/cash receipts accepted through PMS and CDR related

payments made need to be classified as „TR settlement account‟ in the cash/bank book in

EFS(External financial system) from the day following data cut. Commission if any ,

deducted , in the settlement cheque in respect of delta payments may have to be

accounted for in the EFS by the SSA as follow:

1742701 PO /Other Commissions Dr

1131505 Service Tax(input service) Dr. 1131506 Education Cess Dr. 1131509 Higher Education Cess Dr.

To 1194501 TR settlement account Cr.

40. The balances assembled based on this data by the Accounting module of the CDR

system will furnish the Trial Balance as at the end of the „go live‟ month. Since the



books are opened for one month prior to go-live month, we can also generate a Trial

balance for the previous month which will give an account for the complete delta

transactions accounted for the previous month in the target-SLR-I. A report on GLcode-

wise transactions for the period from Go-live date to month-end (excluding cutover

data) in respect of the OB related GL codes will be generated from billing by the billing

team. The correctness of opening balance arrived in annexure-IV will be cross-checked

as in annexure-VII.

41. Beyond the „go live‟ month, all linkages with the source system will stand severed and

the entire TR related operations will be performed only through the CDR system.

42. The SSAs will take care to make necessary journal entries in the EFS(external

Financial System) for all the unbilled(debit/credit vouchers etc)/unaccounted

transactions remained in the source system prior to migration.

43. The book related to any previous month, opened for delta payment posting , will now be

closed in accounting system.

44. So far, we have only reconciled the data as per billing system both as per source and

target. If there are differences between EFS trial balance and source billing system

itself , the same needs to be reconciled by the SSAs in stage-II separately. Differences

if any, in deposit heads will be dealt with by the SSAs as per Corporate office circular

No.236 dated 18/08/2010. The SSAs will operate these heads in circular-236 only in

EFS. Accounting procedure within CDR for handling the difference in deposits will be

evolved separately. The deposit difference heads communicated in circular CA-236 is

detailed in Annexure-VIII.

The SSAs may also please note that the various deposits in source system are moved

and merged in only few heads in the target system. However individual flagging

is kept for STD PT deposit, Voluntary deposit, Broadband Plan/Modem deposit

etc. A deposit mapping in CDR is given in Annexure-IX.

45. Action point-wise listing is provided in annexure-X.



Annexure-IA/IB

Sl.

No. Item Type Count

Amount Billed Bal

Amount Basic

Charges

Service

Tax

Sur

charge Total

1 Invoices

Fully

Closed

Partially

closed

Fully Open

Total

2 Credit Vouchers

Pending

Instalment

Others

Total

3

Debit

Vouchers

Pending

Instalment

Others

Total

4

Working

Connection

Deposits

Paid

deposits

OYT

Security/Tatkal

PT

Voluntary

Total

Billed &

Unpaid

deposits

OYT

Security

PT

Voluntary

Total

Unbilled

deposits

OYT

Security

PT

Voluntary

Total

5 Application Deposits

6 Accrued interest

PT

Voluntary

Preconn. deposits

7 Refund due on Double/ Excess payments

8 Refund due on closed connections



Note: OYT & Tatkal deposits will be migrated at net refundable value to the subscribers.



Annexure-II Cutover data Target data

Sl.No. GL

Code Description Amt(Dr) Amt(Cr) Amt (Dr) Amt(Cr)

1 1110101 Sundry Debtors LL 2 1110509 Sundry Debtors BB 3 1110901 Tax Recoverable 4 1192301 Tax Payable

5 1194504

CDR based Credit

Memo Invoicing

account

6 1131025

CDR based Debit

Memo Invoicing

account

7 1193001 Refund due on double

or excess payment

8 1193003 Refund due on

working connections

9 1193002

Refund due on

Closed/Surrendered

connections

10 1191100 Advance payment recd

from cust.

11 1191399 Accrued Interest for

application deposit

12 1192701 OYT Deposits

13 1192714 Security Deposits

14 1194701 Security Deposit under

recovery (Billed)

15 1132501 Security Deposit

recoverable (Billed)


recovery (Un-Billed)



The internal difference between the source & target system will be handled by one time Journal entry

in the EFS by the SSA.

Annexure-III

From SOURCE SYSTEM From TARGET SYSTEM

BILLED

SETTLEMENT (including Payment, Adjustments)

OS Balance OS Balance

UID

BILL

NO ABF

SERVICE

TAX

SUR

CHARGE ABF

SERVICE

TAX

SUR

CHARGE

Last Settle ment

date ABF

SERVICE

TAX

SUR

CHARGE ABF

SERVICE

TAX

SUR

CHARGE

G.Total



Annexure-IV Cutover

data

Adjustmen

t for Chq

reversals

Adjustmen

t for delta

payments

OB as on

go-live date

Sl.No

.

GL

Code Description

Amt(Dr/Cr

)

Amt(Dr/Cr

)

Amt

(Dr/Cr)

Amt(Dr/Cr

)

1 111010

1 Sundry Debtors LL

2 111050

9 Sundry Debtors BB

3 111090

1 Tax Recoverable

4 119230

1 Tax Payable

5 119450

4

CDR based Credit

Memo Invoicing

account

6 113102

5

CDR based Debit

Memo Invoicing

account

7 119300

1

Refund due on double

or excess payment

8 119300

3

Refund due on working

connections

9 119300

2

Refund due on

Closed/Surrendered

connections

10 119110

0

Advance payment recd

from cust.

11 119139

9

Accrued Interest for

application deposit

12 119270

1 OYT Deposits

13 119271

4 Security Deposits

14 119470

1

Security Deposit under

recovery (Billed)

15 113250

1

Security Deposit




16 119470

1

Security Deposit under




Annexure-V

Statement to be attached duly signed with annexure VI:

Sl.No. GL Code Description Amount (Dr) Amount(Cr)

1 1110101 Sundry Debtors LL XX

2 1110509 Sundry Debtors BB XX

3 1110901 Service Tax Recoverable XX

4 1192301 Service Tax Payable XX

5 1194504 CDR based Credit Memo Invoicing account XX

6 1131025 CDR based Debit Memo Invoicing account XX

7 1193001 Refund due on double or excess payment XX

8 1193003 Refund due on working connections XX

9 1193002 Refund due on Closed/Surrendered conns XX

10 1191100 Advance payment received from customer XX

11 1191399 Accrued Interest for application deposit XX

12 1192701 OYT Deposits XX

13 1192714 Security Deposits XX

14 1194701 Security Deposit under recovery (Billed) XX

15 1132501 Security Deposit recoverable (Billed) XX

16 1194701 Security Deposit under recovery (Un-Billed) XX 17 0099999 Migration control account XX (Cr/Dr)

AO / CAO AO/SDE/CAO/DE

(TR – Sub ledger) (Computer)

<SSA> <SSA>





Annexure-VI

Certificate on Stage-1 reconciliation (To be issued by the IFA <SSA> within ONE month with

reference to the „go live‟ date).

Place:

Date:

“Certified that the Stage-1 reconciliation of the financial data between the source system

and the CDR system has been completed by this SSA in accordance with instructions

contained in BSNL Corporate Office Lr.No: 1-16/2009/RA/BSNL Dated

09.03.2010. Related statements (annexure-V), duly signed by the competent

authorities are attached herewith. These balances have been taken as provisional

Opening Balance as on the „go live‟ date for the Account Codes concerned. Stage-2 of

reconciliation of the financial data between the bookings in the EFS(External Financial

System) Trial Balance and that obtained from the CDR system will be completedby

<date1>. All differences relating to deposits remaining after Stage-2 reconciliation will

be moved to the deposit difference Suspense account heads on <date2> as per C.O.

Circular 236-dated 18/08/2010 and the details of the same will be furnished to

Corporate office. The differences moved to deposit difference heads will be reconciled

and cleared within 6 months as stipulated in Circular-236.”

IFA <SSA>



Annexure-VII

Balance as

per Trial

balance as

at the end

of go-live-

month

Transactions

between go-

live-date &

month-

end(excluding

cutover data)

OB as on

go-live date

Sl.No. GL

Code Description Amt(Dr/Cr) Amt(Dr/Cr) Amt(Dr/Cr)

1 1110101 Sundry Debtors LL 2 1110509 Sundry Debtors BB 3 1110901 Tax Recoverable 4 1192301 Tax Payable

5 1194504

CDR based Credit

Memo Invoicing

account

6 1131025 CDR based Debit Memo

Invoicing account

7 1193001 Refund due on double

or excess payment

8 1193003 Refund due on working

connections

9 1193002

Refund due on

Closed/Surrendered

connections

10 1191100 Advance payment recd

from cust.

11 1191399 Accrued Interest for

application deposit

12 1192701 OYT Deposits



recovery (Billed)









Annexure-VIII (Circular CA-236 dated 18/08/2010) GL--.General Ledger SL--->Subledger EFS-->External Financial System(Non-CDR)

Existing

Account

heads in EFS

New Account heads for the Difference in EFS

If GL>SL If GL<SL

A 1191200 Application Deposits (Before providing service) 1194900 1132800

1191201 OYT Deposits 1194901 1132801

1191202 Non-OYT Deposits 1194902 1132802

1191203 WILL Deposits (NON-MSC) 1194903 1132803

1191205 Tatkal Deposits 1194905 1132805

1191206 Indo Net Deposits 1194906 1132806

1191207 Voice Mail Deposits 1194907 1132807

1191208 Internet Deposits 1194908 1132808

1191209 Radio Paging Deposits 1194909 1132809

1191210 Deposits from STDPT franchisees 1194910 1132810

1191211 Registration charges for free telephones 1194911 1132811

1191212 Deposits from franchisees of Broad Band Services 1194912 1132812

1191213 Voluntary Deposit 1194913 1132813

1191214 Security Deposit 1194914 1132814

1191299 Others 1194999 1132899

B 1192700 After Connection Deposits 1195100 1133000

1192701 OYT Deposits 1195101 1133001

1192702 Non-OYT Deposits 1195102 1133002

1192703 WILL Deposits (NON-MSC) 1195103 1133003

1192705 Tatkal Deposits 1195105 1133005

1192706 Indo Net Deposits 1195106 1133006

1192707 Voice Mail Deposits 1195107 1133007

1192708 Internet Deposits 1195108 1133008

1192709 Radio Paging Deposits 1195109 1133009

1192710 Deposits from STDPT franchisees 1195110 1133010

1192711 Registration charges for free telephones 1195111 1133011

1192712 Security Deposits (refundable) on Broad Band Services 1195112 1133012


1192714 Security Deposits 1195114 1133014

1192799 Others 1195199 1133099

C 1191300 Interest accrued on Application Deposits 1195000 1132900

1191301 OYT Deposits 1195001 1132901

1191302 Non-OYT Deposits 1195002 1132902

1191303 WILL Deposits(NON-MSC) 1195003 1132903

1191305 Tatkal Deposits 1195005 1132905

1191306 STDPT Deposits 1195006 1132906




1191308 Security Deposit 1195008 1132908

1191399 Others 1195099 1132999

Annexure-IX

Deposit Heads in CDR

New

Account Heads

in CDR

Existing

Account heads

in EFS

New

Account Heads

in CDR

Existing

Account heads in

EFS

1191200

Application Deposits

(Before providing

service)

1191300 Interest accrued on

Application Deposits

1191100 1191201 OYT Deposits 1191399 1191301 OYT Deposits

1191100 1191202 Non-OYT Deposits 1191399 1191302 Non-OYT Deposits

1191100 1191203 WILL Deposits (NON-

MSC) 1191399 1191303

WILL Deposits(NON-

MSC)

1191204 Telex Deposits 1191304 Telex Deposits

1191100 1191205 Tatkal Deposits 1191399 1191305 Tatkal Deposits

1191100 1191206 Indo Net Deposits 1191399 1191306 STDPT Deposits

1191100 1191207 Voice Mail Deposits 1191399 1191307 Voluntary Deposit

1191100 1191208 Internet Deposits 1191399 1191308 Security Deposit

1191100 1191209 Radio Paging Deposits 1191399 1191399 Others

1191100 1191210 Deposits from STDPT

franchisees

Existing

in EFS

New GL

in GSM

MSC WLL Deposit

codes (Circular CA-

235 dt 16/08/2010)

1191100 1191211 Registration charges for

free telephones

4191200

4191200 Deposit

received for CMTS &

MSC based CDMA

1191100 1191212 Deposits from franchisees

of Broad Band Services 1192703 4191210

4191210 Deposit for

MSC based CDMA

1191100 1191213 Voluntary Deposit

4191211 4191211 STD Deposit

for MSC based CDMA


4191212 4191212 ISD Deposit

for MSC based CDMA

1191100 1191215 Advance from other operators for POI/Port

Charges

4191213 4191213 Roaming Deposit for MSC based

CDMA

1191100 1191299 Others



1191100

Advances from Customers-pre-

connection (includes wait list,

Voluntary deposit etc from pre-

migration period)

Deposit

head in CDR

Interest

head in CDR

Accrued interest head in

CDR

1191100 1950806 1191399



Annexure-IX (contd)

New

Account Heads

in CDR

Existing

Account heads

in EFS

Deposit head in

CDR

Interest head in

CDR

Accrued interest head in

CDR

1192700

After Connection

Deposits

1192701 1192701 OYT Deposits

1192714 1192702 Non-OYT Deposits

1192714 1192703 WILL Deposits (NON-MSC)

1192704 Telex Deposits

1192705 1192705 Tatkal Deposits

1192714 1192706 Indo Net Deposits

1192714 1192707 Voice Mail Deposits

1192714 1192708 Internet Deposits

1192714 1192709 Radio Paging Deposits

1192710 1192710 Deposits from STDPT

franchisees 1192710 1950805 1191306

1192714 1192711 Registration charges for free telephones

1192714 1192712

Security Deposits

(refundable) on Broad

Band Services

1191100 1192713 Voluntary Deposit 1191100 1950804 1191307


1192714 1192799 others

1191100 Advance from customers (Existing customers)



Annexure-X

Action points on proposed modified approach on financial data migration/delta payments:

Sl Scope of work Action

by

Revised

migration

strategy

document para No.

1 Issue of monthly bills to bi-monthly subscribers for the previous month of go-

live SSA 1

2 Temporary stoppage of online counters before data-cut& updation of

payments SSA 2 &3

3 Taking data-cut TCS 4

4 SLR processing for previous month & current month in source SSA 5 & 6

5 Restoration of services for delta payment cases SSA 10

6 Uploading the data in target & starting PMS operations TCS 11

7 Summary report from source billing system- Annexure-IA SSA 13

8 Summary report from cut-over data - Annexure-IB & reconciliation with

annex-IA TCS 13

9 GL Codewise provisional statement both from cutover data and data uploaded into the target billing system(Annexure-II)

TCS 15

10 Configuration of 'delta' sub-channel to accept delta payments in PMS TCS 17

11 Preparation of structured files and uploading of delta payments in delta

channel SSA/TCS 18

12 Furnishing details of cheques dishonoured prior to data-cut date but not reversed in source prior to data cut& manual correction of invoices in target billing system

SSA/TCS 22 & 23

13 Confirmation of delta payments posting & cheque reversal updation before first bill run

SSA/TCS 24

14 Generation of Target-SLR-I from CDR billing system for the month prior to go-live month.

TCS 25

15 Compilation of full SLR for the previous month combining Source-SLR-I&

Target-SLR-I SSA 26

16 Correction of OB of Source-SLR-II w.r.t. combined full SLR for previous month.

SSA 27

17 Submission of left over details,if any, by 20th of next month of go-live to migration team.

SSA 28

18 Generation of Target-SLR-II for the go-live month by 23rd of next month of Go-live

TCS 29

19 Compilation of full Sub Ledger for the „go live‟ month combining the Source-SLR-II and target-SLR-II.

SSA 30



20 In cases of overlapping, bifurcation of schedules into pre-go-live & post-live

and entering schedule only for post-live period. SSA 31 & 32

21 Confirmation on completion of all delta payments in to the CDR system & marking of batches as „schedule entry completed‟ in the CDR system

SSA/TCS 33

22 Changing temporary go-live date to actual go-live date. TCS 34

23 Delta-channel payment summary report generation SSA/TCS 35

24 Glcode-wise report generation from billing for the delta payments & arriving

at Opening balance as in annexure-IV TCS 36

25 Stage-1 reconciliation and furnishing signoff report in annexure-V & VI SSA 37

26 Sending journal feed from billing to accounting for opening balances TCS 38

27 Clearing „Claims recoverable from others-Delta Channel‟ debits by manual journal entry in accounting system

TCS/DC 39

28 Making journal entry in EFS for the commissions deducted from delta

payments,if any. SSA 39

29 Generation of Trial balance for the go-live month and previous month TCS 40

30 Making necessary journal entries in the EFS(external Financial System) for all the unbilled(debit/credit vouchers etc)/unaccounted transactions remained in the source system prior to migration to CDR.

SSA 42

31 Closing of books opened for the month prior to Go-live month in CDR TCS 43

32 Stage-2 reconciliation between EFS Trial balance and CDR system balances SSA 44

20. Journal entries for migrated financial data .

On migration , TR related balances are moved to CDR system from the existing source

system(External Financial system). Non-CDR balances will continue in the source

system(EFS). Hence there is going to be two different Trial balances one from CDR and the

other from EFS. Both these trial balances will be merged to get a consolidated Trial balance

for the unit as a whole.

For moving the TR related balances from EFS to CDR we need to make two sets of

Journal entries- one for transferring the balances from EFS to CDR (on behalf of EFS) and

another for taking over the balances in CDR (on behalf of CDR system)



Following journal entries are required to be done ( on behalf of CDR system for taking over

the balances in CDR) after migration of financial data as per strategy :

(Similarly a reversal of following entries will happen for transfer from EFS to CDR on behalf

of EFS)

(i) Sundry Debtors: This includes surcharge (and WLL if migrated with landline)

Sundry Debtor account LL Dr XXX

To migration control account XXX

Sundry Debtor account BB Dr XXX


(ii) Service Tax Recoverable:

Service tax recoverable Dr XXX


Migration control account Dr XXX

To Service tax payable XXX

Note: Service tax payable and recoverable are taken at equal figures since it is assumed that

both will be equal in the normal circumstances. Difference if any may have to be dealt with in

the EFS.

(iii) CDR based Credit Memo Invoicing account:

All credit vouchers pending relating to revenue items are to be migrated through this

head. But it has to be borne in mind that these credit vouchers are lying unaccounted in

the source till such time they are billed. Hence we need to account these in source first

and then we have to move the balance sheet item to CDR system.

For example if there is a credit voucher for rental rebate granted for fault period, following JS

needs to be made in source system first:

Fixed charges-Telephones Dr XXX

To Credit memo invoicing account XXX



The above debit in income head will be accounted for in the source, and the credit entry will

be migrated to CDR for subsequent adjustment through future bills, as follow:


To Credit memo invoicing account Cr XXX

If it is an ECS discount credit voucher, for example, then the following entry will be made in

source system:

ECS Discount account Dr XXX

To Credit memo invoicing account XXX

The above debit head will be accounted for in the source , and the credit entry will be

migrated to CDR for subsequent adjustment through future bills , as follow:


To Credit memo invoicing account Cr XXX

Similarly all the credit vouchers pending in source needs to be accounted for in source

before migration.

CDR based Debit Memo Invoicing account: Similar to Credit vouchers, the debit

vouchers(except deposits) also need to be accounted for in the source first and then

moved to CDR system.

For example if there is a debit voucher for short billing of local call charges, following will be

the journal entry in source system:

Debit memo invoicing account Dr XXX

To Local call charges XXX

The credit entry will be accounted for in source and the debit entry will be moved to CDR

for subsequent adjustment through future bills, as follow:


To Migration control account XXX

Refund due on double or excess payment:


To Refund due on double or excess payment XXX

Refund due on working connections:


To Refund due on working connections XXX



Refund due on closed connections:


To Refund due on closed connections XXX

Advance payment received from customer:

Voluntary deposits,pre-connection deposits etc are considered advance payments in CDR.


To advance from customers XXX

Accrued Interest for application deposit:

Accrued interest on application deposits etc. need to be calculated upto 31st March of the

year prior to migration date and interest accounted for in the source system. The accrued

interest will be moved to CDR.

Interest on pre-connection deposits etc Dr XXX

To accrued interest on pre-connection deposits XXX


To accrued interest on deposits XXX

OYT Deposits: Upto date adjustment for rebate etc. needs to be accounted for in the source

first and only the net balance eligible for refund as on migration date will be transferred to

CDR system.

If any adjustment is required in source, then following JS is required.

OYT deposits Dr XXX

To fixed charges XXX

For the balance OYT deposit,following will be the entry:


To OYT Deposit account XXX

Security Deposits:

Migration Control account Dr XXX

To Security Deposit account XXX



Security Deposit raised as debit voucher but not billed:

This has to be first brought into the source book as follow:


To Security deposit under recovery XXX

Then it has to be moved as follow:


To Security Deposit under recovery XXX


To Migration Control account XXX

When subsequently billed in target CDR:

Security deposit recoverable Dr XXX

To debit memo invoicing account XXX

Security Deposit billed but not realised:

This has to be first brought into the source book as follow:


To Security deposit under recovery XXX

Then it has to be moved as follow:


To Security Deposit under recovery XXX


To Migration Control account XXX



Account Codes (GL codes) normally involved in the data migration:

Sl.No. GL Code

Description Amount (Dr)

Amount(Cr)

1 1110101 Sundry Debtors LL XX

2 1110509 Sundry Debtors BB XX

3 1110901 Service Tax Recoverable XX

4 1192301 Service Tax Payable XX

5 1194504 CDR based Credit Memo Invoicing account

XX

6 1131025 CDR based Debit Memo Invoicing account

XX

7 1193001 Refund due on double or excess payment

XX

8 1193003 Refund due on working connections XX

9 1193002 Refund due on Closed/Surrendered connections

XX

10 1191100 Advance payment received from customer

XX

11 1191399 Accrued Interest for application deposit XX

12 1192701 OYT Deposits XX

13 1192714 Security Deposits XX

14 1194701 Security Deposit under recovery (Billed) XX

15 1132501 Security Deposit recoverable (Billed) XX

16 1194701 Security Deposit under recovery (Un-Billed)

XX

17 0099999 Migration control account XX (Cr/Dr)

There will be difference between the debits and credits and this is due to the fact that we are

migrating only the balance sheet items related to TR and not the P & L account items & other

balances. The revenue booked in the source are left there only and needs to be dealt with in

the EFS. The difference between the total of debits and credits is shown against „0099999



Migration control account to make it balance. This will be a constant figure which will be

frozen afterOB is reconciled.

Sample JS For Transfer to CDR (on behalf of EFS)

Dr Cr

0099999 Migration Control account 62668969.50

1110101 Sundry Debtor account LL 62668969.50


1110509

Sundry Debtor account BB 7265563.27


1110901 Service Tax Recoverable 7068447.09

1192301 Service Tax Payable 7068447.00


1194504 CDR based Credit Memo Invoicing account 1980129.80



1131025 CDR based Debit Memo Invoicing account 240841.60


1131025 CDR based Debit Memo Invoicing account -Unbilled SD 67500.00

1193001 Refund due on double or excess payment

0099999 Migration Control account

1193003 Refund due on working connections


1193002 Refund due on Closed/Surrendered connections


1191100 Advance payment received from customer 321347.00


1191399 Accrued Interest for application deposit


1192701 OYT Deposits 9413489.00


1192714 Security Deposits 117243711.45


1194701 Security Deposit under recovery (Billed) 189208.99




1194701 Security Deposit under recovery (Un-Billed) 67500.00



1132501 Security Deposit recoverable (Billed) 189208.99

Total for migration control account 77500530.45 136283833.24 Net of migration control a/c 58783302.79 CR

Sample JS For Taking over in CDR(On behalf of CDR) Dr Cr

1110101

Sundry Debtor account LL 62668969.50


1110509 Sundry Debtor account BB 7265563.27


1110901 Service Tax Recoverable 7068447.09



1192301 Service Tax Payable 7068447.00


1194504 CDR based Credit Memo Invoicing

account 1980129.80

1131025 CDR based Debit Memo Invoicing account 240841.60


1131025 CDR based Debit Memo Invoicing account-Unbilled SD 67500.00



1193001 Refund due on double or excess payment


1193003 Refund due on working connections


1193002 Refund due on Closed/Surrendered connections


1191100 Advance payment received from customer 321347.00


1191399 Accrued Interest for application deposit


1192701 OYT Deposits 9413489.00




1192714 Security Deposits 117243711.45


1194701 Security Deposit under recovery (Billed) 189208.99


1194701 Security Deposit under recovery (Un-Billed) 67500.00

1132501 Security Deposit recoverable (Billed) 189208.99


Migration control a/c total 136283833.24 77500530.45 Net of migration control a/c 58783302.79 DR

It may be seen from the above two sample JS, there is a credit under migration control account in EFS and a corresponding Debit in CDR.When both are merged ,this gets nullified.

21. Handling third party vendor payments collected through CDR invoices

Right now there is a provision for entering the details of refund cheques issued to

subscribers in the CRM module. As per the approach document shared with TCS on

'Implementing Bundled PC EMI solution in the CDR system' there has to be a similar

provision in CDR system to enter the details of cheque payment made to the PC vendor.

When the EMI amount is transferred to the hardware supplier, a cheque is issued by

the AO (Cash). As a rule, the AO cash will operate only one GL code for all TR related

payments and receipts. So cheque issuance will be captured in the EFS (Cash/Bank book)

as

1194501 TRC Settlement Account Dr XXX

ToBank Cr XXX

The information on cheque issued will be input in to the CDR system. The result would be as

follows.

1193401 – „Payable to PC/Laptop Mfg. for EMI of PC under bundled scheme‟ Dr XXX

To 1194501 TRC Settlement Account Cr XXX

Similarly provision is expected for all the third party vendor payments collected through

CDR invoices. However this feature is not available in CDR at present.

At present the following type of payments are there which are raised and collected through

CDR invoices and paid to vendors from EFS(External Financial System):



1. EMI collected from rural subscribers on Bundled PC offers from HCL/NOVA etc.

2. Service tax collected and payable to excise authorities.

Following constraints were expressed in providing the above feature:

a) It could not provided in accounting directly:

Currently manual entries passed by the user are only for rectification and adjustment.

Any other entries in accounting has to come from Billing/PMS.

b) It could not be provided from billing:The cheque payment to customer is for an account

which is in CDR and there is a related transaction. Hence the transactionsrelating to third

party vendor who does not hold any account in CDR billing system cannot be captured

through billing system.It can be a direct transaction from PMS to Accounting.

c) It could not be provided from PMS: We cannot have payment disbursements getting in

to the PMS. All receipts will come through PMS and disbursements will be dealt

with through CRM/Billing. This is the fundamental rule that we have tried to implement in

the CDR system.

A proposal to have some dummy account created and deal this through billing was put

forth and again having the dummy account created at SSA level for all such transactions

was felt another practical constraint.

Strategy decided:

In view of the above constraints, it has been decided to have these transactions entered

as a Journal Slip in the accounting system on monthly basis. The SSAs already provided

with user id and password will make the Journal entry on monthly basis before generation

of SLR reports and Trial balance. Other SSAs, till such time user id/password is provided,

will pass on the Journal entry details in the prescribed template to the respective ITPC-DC

and the Journal entries will be made by DC.

AO(cash) of the respective SSAs dealing with this payment will prepare the Journal Slip

in the prescribed format on monthly basis and handover the same to the Accounting

section in the SSA which is empowered to access the CDR accounting system and pass

Journal entries. Along with the Journal slip, the details of cheque payments also need to be

enclosed. These payments are to be classified under „1194501 TR settlement

account‟ in the EFS(External Financial system) bank book.

The Accounting section will keep a complete record of these Journal Slips serially

numbered. They need to note the system generated sequence number also on the Journal



slip. They have to take care that there is no duplication in entering these Journals. The

SSAs have to review these balances from the Trial balance and reconcile periodically.

Template of Journal slip to be prepared :

Journal Slip No: CDR System Journal Seq.No:

Journal Entries for the payments made to third party vendors

Description

Entries for the payments made to third party vendors for amount collected through CDR invoices.

Ledger BSNS (Replace S with N,W,E etc for the respective Zones)

Category MA MA means manual entry.

Period Jul-10 If it is for July-10

Effective Date 31-Jul-10 If it is for July-10

Lines

Line Account * Debit(INR) Credit(INR) Description

1 S.AP.HYD.1192301 XX Service tax payment to excise authorities

2 S.AP.HYD.1192306 XX ST CESS payment to excise authorities

3 S.AP.HYD.1192309 XX ST HEC payment to excise authorities

4 S.AP.HYD.1194501 XX Service tax payment to excise authorities

5 S.AP.HYD.1193401 XXX EMI payment on PC bundling scheme

6 S.AP.HYD.1194501 XXX EMI payment on PC bundling scheme

7

Total XXX XXX

* Replace S.AP.HYD with zone,Circle,SSA code. Here it is for Hyderabad in AP Circle in South Zone.

Description of GL codes used above: 1192301 Ser Tax Payable 1192306 Ser Tax Payable-Education Cess 1192309 Ser Tax Payable –Hiher Education Cess



1194501 CDR TRC Settlement account 1193401 Payable to PC/Laptop Mfg. for EMI of PC under bundled scheme

22. Accounting for Zonal Electronic Stapling

Electronic Stapling(ES)is used tocombine various bills (if required, from different billing systems also) of the

same customer and then provide the information to PMS for collection.

In Zonal ES System, access remains in one particular zone (SSA of the DataCenter). Zonal Bill is generated in

one zone only, the home zone of the customer. It is not replicated across various zonal PMS Systems.

An account for excess payments will be maintained in the CDR billing system for every ES account. Any excess payment, made against the ES invoice, will be posted in this account. This will be a master account in DC SSA.

Under the Zonal ES system, there will be various scenarios for which respective accounting treatments is captured below.

Scenario 1: No Excess Payment

Consider a scenario, where a customer is having four connections from BSNL 1 landline, 1 Broadband and 2

GSM connections at different SSA‟s mentioned below. Now the monthly bill is raised as follows;

LL1 BB1 GSM1 GSM2 Total

Owning SSA/Circle Bhopal Pune MH MP

June Bill Due 553 663 1103 2206 4525

*- Master Account is at DC (i.e. Pune)

In step 1, the Billing System will give feed to the Accounting System for posting the entry related to the invoice

generation belonging to the landline of the customer in Bhopal & Pune SSA.

There will not be any Global System for Mobile Communication (GSM) related invoice feeds from the external

invoicing systems. Hence, no Accounting related to them is carried out here.

So the following two entries are made at the time of invoice raised by the home billing system for different SSA‟s

of Bhopal & Pune respectively. Entries for invoice raised in Bhopal & Pune are as under;

Invoice generation feed from Billing system for LL1 at Bhopal SSA 1110101 Sundry Debtors Landline Dr. 500 BPL

1110901 Service tax recoverable Dr. 50 BPL

1110906 Education cess recoverable Dr. 2 BPL

1110909 HEC Recoverable Dr. 1 BPL

To 1310101 Fixed charges 150 BPL

To 1310201 Local Calls 350 BPL

To 1192301 Service tax Payable 50 BPL

To 1192306 Education cess Payable 2 BPL

To 1192309 HEC Payable 1 BPL



Invoice generation feed from Billing system for BB1 at Pune SSA 1110509 Sundry Debtors Broadband Dr. 600 PUN

1110901 Service tax recoverable Dr. 60 PUN

1110906 Education cess recoverable Dr. 2 PUN

1110909 HEC Recoverable Dr. 1 PUN

To 1310101 Fixed charges 250 PUN

To 1310201 Local Calls 350 PUN

To 1192301 Service tax Payable 60 PUN

To 1192306 Education cess Payable 2 PUN

To 1192309 HEC Payable 1 PUN

In step 2, ES will club all the invoices of the same customer, where the accounting is not impacted and send a

single bill to the customer.

No accounting entries at this point of time

In step 3, PMS collects the consolidated payments and provides the same information to the Accounting

System based on which the Claims Recoverable and CDR based TR Collection Accounts will be updated at the

receiving SSA only. Let‟s say the customer pays the full bill of Rs. 4525 at Bank and payment is made at Pune

SSA. The respective entries from PMS to accounting will be as under:

Daily list (PMS feed):

1132303 CDR based TRC Claims from Bank Dr. 4525 PUN

To 1194502 CDR based TR Collection 4525 PUN

Schedule (PMS feed):

1194501 CDR based TRC Settlement A/c Dr. 4525 PUN

To 1132303 CDR based TRC Claims from Bank 4525 PUN

In Step 3, ES will distribute the consolidated amount to various invoices of the same customer; it will provide a

feed to the Accounting System for all the invoices so that Accounting can pass the Remittance appropriately to

Revenue Owning SSA and other Invoicing Systems. So here only the payments related to GSM would be

closed. The ES will send the owning and receiving SSA information in the feed.

On ES Feed

For GSM 1, the owning circle is MH and payment is received in Pune which is in MH circle. So there is no

remittance involved. The following entries would be passed

1194502 CDR based TR Collection Dr. 1103 PUN

To 1194601 CDR claims payable to CMTS 1103 PUN

For GSM 2, the owning circle is MP and payment is received in Pune which is in MH circle. So the remittance

entries would be as follows from the ES feed;


To 1990915 CDR bsd TR Remittance btwn circles Madhya Pradesh (O) 2206 PUN

1991016 CDR bsd TR Remittance btwn circles Maharashtra(R) Dr. 2206 MP

To 1194601 CDR claims payable to CMTS 2206 MP



Billing Feed at the time of settlement of invoice

When the CDR billing gives the feed to the Accounting System, that is when outstanding from a customer is

cleared, the Accounting System will book the entry accordingly by crediting the Sundry Debtors.

For LL1



1991016 CDR bsd TR Remittance btwn circles Maharashtra(R) Dr. 553 BPL

To 1110101 Sundry Debtors Landline 500 BPL

To 1110901 Service tax recoverable 50 BPL

To 1110906 Education cess recoverable 2 BPL

To 1110909 HEC Recoverable 1 BPL

For BB1 1194502 CDR based TR Collection Dr. 653 PUN

To 1110509 Sundry Debtors Broadband 600 PUN

To 1110901 Service tax recoverable 50 PUN

To 1110906 Education cess recoverable 2 PUN

To 1110909 HEC Recoverable 1 PUN

Scenario 2: Excess Payment

Considering the above scenario, let‟s say customer makes the excess payment of Rs.975 by paying the total

amount of Rs.5500. In thisscenario the ES will park the excess amount to the CDR master account created to

park the excess payment. This payment will always be parked at the DC SSA, here it is Pune SSA.

LL1 BB1 GSM1 GSM2 Total Payment Excess

Owning SSA/Circle Bhopal Pune MH MP Pune

June Bill Due 553 663 1103 2206 4525 5500 -975


In step 1, the Billing System will give feed to the Accounting System for posting the entry related to the invoice

generation belonging to the landline of the customer in Bhopal & Pune SSA.

There will not be any Global System for Mobile Communication (GSM) related invoice feeds from the external

invoicing systems. Hence, no Accounting related to them is carried out here.

Invoice generation feed from Billing system for LL1 at Bhopal SSA

1110101 Sundry Debtors Landline Dr. 500 BPL













1110906 Education cess recoverable Dr. 2 PUN

1110909 HEC Recoverable Dr. 1 PUN




To 1192306 Education cess Payable 2 PUN

To 1192309 HEC Payable 1 PUN

In step 2, ES will club all the invoices of the same customer, where the accounting is not impacted and send a

single bill to the customer.

No accounting entries at this point of time

In step 3, PMS will collect the consolidated payments. Let‟s say the customer pays the Rs.5000 at post office and payment is made at Pune SSA. Daily list (PMS feed):

1132303CDR based TRC Claims from Bank Dr. 5500 PUN




To 1132303CDR based TRC Claims from bank 5500 PUN

In Step 3, ES will distribute the consolidated amount to various invoices of the same customer; it will provide a

feed to the Accounting System for all the invoices so that Accounting can pass the Remittance appropriately to

Revenue Owning SSA and other Invoicing Systems. So here only the payments related to GSM would be

closed.

On ES Feed For GSM 1, the following entries would be passed based on the ES feed; 1194502 CDR based TR Collection Dr. 1103 PUN


For GSM 2, the following entries would be passed based on the ES feed;



1991016 CDR bsd TR Remittance btwn circles Maharashtra(R) Dr. 2206 MP




For Excess Payment, the following entries would be parked based on the ES feed at the Pune SSA, as the

master account is at Pune SSA. Here the payment is received at Pune so no remittance entries would be

involved.


To 1193001Refund due on Double/Excess Payment of bills 975 PUN

On Billing Feed; the entries at the time of the settlement of the invoice

When the CDR billing gives the feed to the Accounting System, that is when outstanding from a customer is

cleared, the Accounting System will book the entry accordingly by crediting the Sundry Debtors.

For LL1 1194502 CDR based TR Collection Dr. 553 PUN


1991016 CDR bsd TR Remittance btwn circles Maharashtra(R) Dr. 553 BPL





For BB1 1194502 CDR based TR Collection Dr. 653 PUN



To 1110906 Education cess recoverable 2 PUN

To 1110909 HEC Recoverable 1 PUN

On next invoice generation LL1 BB1 GSM1 GSM2 Total Excess Due

Owning SSA/Circle Bhopal Pune MH MP Pune

July Bill Due 333 221 883 1655 3092 -975 2117


Invoice generation feed from Billing system for LL1 at Bhopal SSA 1110101 Sundry Debtors Landline Dr. 300 BPL













1110906 Education cess recoverable Dr. 0.80 PUN

1110909 HEC Recoverable Dr. 0.20 PUN




To 1192306 Education cess Payable 0.80 PUN

To 1192309 HEC Payable 0.20 PUN

Now, the customer pays the net outstanding of Rs. 2117 after settling his excess payment of Rs.975. LL1 BB1 GSM1 GSM2 Total Excess Payment Due

Owning SSA/Circle Bhopal Pune MH MP Total Pune

July Bill Due 333 221 883 1655 3092 -975 2117

Settlement from

Excess -333 -221 -421 0 -975 +975

Settlement from

Payment 0 0 -462 -1655 -2117 0 -2117

Balance 0 0 0 0 0 0 0

The entries from PMS would be as follows;

Daily list (PMS feed):

1132303 CDR based TRC Claims from bank Dr. 2117 PUN




To 1132303CDR based TRC Claims from Bank 2117 PUN

On ES Feed; The entries based on the ES feed would be as follows;


Excess payment settlement of Rs.421 1193001Refund due on Double/Excess Payment of billsDr. 421 PUN







1991016 CDR bsd TR Remittance btwn circles Maharashtra(R) Dr.1655 MP


On Billing feedat the time of invoice settlement, the following entries would be made;



For LL1

1193001Refund due on Double/Excess Payment of billsDr. 333 PUN


1991016 CDR bsd TR Remittance btwn circles Maharashtra(R) Dr.333 BPL





For BB1

1193001Refund due on Double/Excess Payment of billsDr. 221 PUN



To 1110906 Education cess recoverable 0.80 PUN

To 1110909 HEC Recoverable 0.20 PUN

23. Handling of ES discount in CDR Accounting

As per clarification from Corporate office vide letter No.2-22/2007-BSNL/TR dated 13/05/2010 , the group discount

needs to be treated „trade discount‟ (reducing the income(usage)). Also as per existing orders on this, the discount

needs to be allowed in the same bill . If the bill amount is not paid within the specified period, the discount allowed has

to be raised as a debit and income recognized in the next bill.

In view of the integrated accounting in CDR, there are practical difficulties in allowing the discount in the same bill.

Since discount is based on total volume of all child accounts, to arrive at the discount, the invoices of all child

accounts need to be generated first. Once discount is arrived at,all the child accounts have to be regenerated

considering this as usage discount. Subsequently,if payment is not taking place within specified time, the discount

allowed needs to be raised as debit in the next bill and income recognized. All these activities involve in processing

delay and further manual monitoring. Hence the practice of allowing discount based on actual eligibility in the next bill

run seems to be the better alternative and the same has been proposed to be continued.. Corporate Office order

No.11-2/2009-CDR/IT/Vol-IV dated 27th Apr-2010 also permits allowing of discount in the next bill as adjustment.

Moreover, if discount is straight away debited to the income head as „Trade discount‟ we may not be in a position to

tell the Group bill discount amount, if required for some policy decision , at a later date.

Hence we have proposed to continue the following procedure to achieve the desired result:

At the time of allowing discount:

1310201 Local Calls Dr

To 1742601 Discount on ES Billing Cr

(We have to debit a standard head like „Local calls „ , since identifying each revenue head and passing

debit to the extent of discount allowed will be a cumbersome process).

At the time of billing:



1742601 Discount on ES Billing Dr

To 1110101 Sundry debtors etc Cr

This way , we will be treating the discount as „trade discount‟ and we can know the amount of discount

allowed based on „period credit‟ in Trial balance from the GL code „ 1742601 Discount on ES Billing „

even though the net figure under this head will be „0‟.

24. Account Settlement Procedure Initiated either in case of Disconnection due to Non Payment or due to Voluntary Closure.

Initiated from CRM through a batch process afterensuring that

(a) all the services attached to the account are disconnected and

(b) there are no open order or waitlist order for the account.

The accounts are marked as „account settlement‟ status in CRM to avoid raising of any

modify order or ISR.

In case of Disconnection due to non payment, account settlement process will be initiated

immediately after the date of closure.

In case of Voluntary closure, it is proposed to be initiated 20 days after the disconnection of

the last service or 10th of the next month whichever is earlier.

Billing will receive the feed from CRM and run a script to process the accounts for settlement.

Accounts with active services and CDR errors are excluded from this process.

The script ensures adjustment of all outstanding deposits and unbilled deposits as follow:

1. Adjustments will be posted on all the invoices which have deposit outstanding.

The following entries will be sent to the accounting system in the billing feed

Security Deposit under Recovery Dr To CDR based Credit Memo invoicing account

The billed entries will be sent to the accounting system once these adjustments

are billed as part of the account settlement process

2. Any unbilled deposit charges if exist will be waived off. The following entries

would be sent to the accounting system

Security Deposit under Recovery Dr

To Debit Memo Pending for Invoice

3. The deposit amount available will be adjusted against the invoice outstanding

and if there are no open invoices, then the deposit amount will lie in excess. The

following entries would be sent to the accounting system

Security Deposit Dr

To Sundry Debtors



To Refund due on Closed Connections

The deposit amount will be posted as a payment.

4. For PCO deposit customers, the interest on LL Security Deposit will be

calculated. The interest will be calculated on the deposit amount from the

interest start date to till date.The following entries would be created in the

accounting system

When there is an outstanding

Interest on STD PCO Deposit Dr

To Sundry Debtors

When there is no outstanding

Interest on STD PCO Deposit Dr

To Interest accrued on STD/PT deposits

The process generates bills for all the pending bill cycles, if any.

It generates an interim bill upto the date of closure. It will bill all the adjustments carried

out.

All the invoices which were billed as a part of account settlement process are sent to

CRM and PMS system.

After generation of interim bill, a script will be runto generate the account settlement response

feed for the accounts where the interim bill is successful.

The account status in billing will be marked as „Disconnection request’.

Once the account settlement process is completed, a response feed would be sent to CRM . If

the outstanding amount is less than zero, a feed will go to CRM with the refund flag and a

refund request will be created in CRM and sent to AOTR for approval.

1. AOTR has an option of approving the complete amount or partial amount.

2. The AOTR is also given an option to enter the amount to be transferred to GSM system and

approve the refundable amount.

3. Once the AOTR approves the amount, an activity will be created for AO-Cash.

4. The AO-Cash will input the approved amount, cheque number, bank name and the

comments. A confirmation of refund will get triggered to billing.



The cheque amount should not be in decimals. So if the refundable amount is

in decimals, the rounded off payment will be posted

The following entries would be created in the accounting system due to

the rounding off payment:

Gain or Loss on Rounding Dr

To Refund due on closed connections

Or

Refund due on closed connections Dr

To Gain or Loss on Rounding

5. The cheque details will be captured into the billing for the approved amount and the

remaining amount , if any, will be booked under „Other Receipts‟ in accounting.

6. Separate refund transactions will be created for GSM and Customer refund.

7. Based on the success response from billing, the account will get inactivated in CRM.

If the outstanding amount is greater than zero, then a feed would be sent to CRM with the

write-off flag. Write-off request will be created in the CRM and the request will be sent to AO-

Pursuit.

1. The outstanding amount needs to be pursued by following all the procedures

applicable for defaulters.

2. When the outstanding amount becomes irrecoverable and declared as a „Bad

Debt‟, AO Pursuit can enter the comments and write off the amount.

3. A confirmation of write-off will be triggered to billing and necessary journal will

flow to accounting debiting „bad debt‟/ „ST payable‟ and crediting „Sundry

Debtors‟/ „ST recoverable‟.

4. Based on success response from billing,the account will be made inactive in

CRM .

5. Once the write-off payment is posted a feed will be sent to PMS system. PMS will mark

those accounts as „write-off „ accounts. Any subsequent recovery from written-off

amounts will not be posted to billing but will be sent direct to accounting and will get

classified as „other receipts‟.

If the outstanding amount is equal to zero, then a feed would be sent to CRM with the „Closure‟

flag and the account would be made inactive in CRM.



In either of the cases either through refund or Write off payments, the outstanding against the account is

made Rs.0. The immediate bill that is generated after the balance is made Rs.0 will move the account

status from “Disconnection request” to “Disconnection done”.

When the account status in billing is changed to “Disconnection done” then the system will not allow any

transactions on the account.

CRM system will allow to raise adjustments on the account with status as “Account Settlement”. When

any such transaction is made the status of the account in CRM will become “Active”.

The account settlement refund/write off requests existing against the account will be cancelled

automatically by the system and the status will be modifed to “Cancelled”

The account will be picked when the account settlement list is generated next time and sent to billing.

Accounting Module (Oracle Applications)-UserManual Introduction

Accounting module is dependent on other source systems for data.

The source systems are Billing, PMS and ES.

The Accounting system keeps the monetary records of the CDR system.

Journals -These are entries made in the form of Debit and Credit for monetary transactions

In CDR system, the journals are entered either manually or through source systems (Billing, PMS, E-

Stapling Systems) automatically

Account Analysis Report – This report provides information regarding a particular GL code or range of

GL codes for a particular period

Trial Balance Report – This report provides the detailed information about all the GL codes for a

particular period

Features in Accounting Module Creating or Reversing the Manual Journals Entries

Posting the Manual Journals Entries

Viewing the existing Journal Entries

Submitting and Viewing the Account Analysis Report

Submitting and Viewing the Trial Balance Report

Authorizations at SSA level

Depending on the authorization, the following tasks can be performed by the users at SSA level:

Access to the Responsibility screen

Create or Reverse Manual Journal Entries

Post Manual Journal Entries

View Journal Entries

Submit and View the Account Analysis Report



Submit and View the Trial Balance Report

There are two levels of SSA user:

CHN GL (Does not have access to Post the journals)

CHN GL Post (Does have access to Post the journals)

Viewing Journals On the basis of the following fields, the Journals can be viewed or searched at SSA level :

o Posting Status : Posted or Unposted

o Source : Billing, PMS, ES, or Manual

o Category : Different feeds for different sources

o Period : Month and year in which the journals are created

Login to Accounting Module of Oracle Applications To login to the Oracle Applications:

Step 1: Enter the User Name and Password.

Step 2: Click Login. A screen appears with the user responsibilities.

After successful login, the Responsibility screen appears.

Access the responsibility

To access the responsibility:

Step 1: Click CHN GLorCHN GL Post. A menu appears on the right side of the screen.

Step 2: Click the menu for executing the task. An Applet form appears.

Note: Depending on the user privileges the menu is displayed.

• Journals > Enter : Park or Reverse manual journals

• Journals > Enter (CHN GL Postonly) : Post manual/reversal journals

Or

Journals >Post (CHN GL Postonly): For mass posting

• Reports > Request : Account Analysis and Trial Balance reports can be executed

• Reports : Inquiry > Journal : The journals related to a particular SSA can be viewed

Step 3: Click on the task which has to be executed as per the requirement. An applet appears.

For example, Click Journals > Enter.

Along with the applet, the form of task appears.

Park or Reverse Manual Journals

To park manual journals:

Step 1: Click Journals > Enter in CHN GL screen. The Find Journals window appears.

Step 2: Click on New Journal on Find Journals window.

Step 3: Enter the following field:

i) Journal: Name of the journal entry. It is free text.



ii) Ledger: BSNS

iii) Category: Select from List of values like MA,AI or AD.

iv) Period: Name of the period

v) Effective Date: Date of the journal

Lines

i) Line: Enter 1. Hence after, system will take Line automatically

ii) Account: Select Zone. Circle. SSA. GL code from the List of values.

iii) Debit (INR): Debit Amount for the corresponding Account described

iv) Credit (INR): Credit Amount for the corresponding Account described

Step 4: Save the journal

Reverse Manual Journals

To reverse manual journals:

Step 1: Click Journals > Enter. The Find Journal window appears.

Step 2: Inquire the journal (which needs to be reversed i.e. MA,AD or AI) on Find Journals window.

Step 3: Click on Review Journal tab.

Step 4: Enter the following details on the right hand side corner of Journals window:

i) Period: The period in which the journal has to be reversed.

ii) Method: Switch Dr/Cr

iii) Status : Not Reversed

Step 5: Click on Reverse button.

Note: Only posted manual journals can be reversed.

Post Manual/ Reversal Journals – CHN GL Post

To post manual/reversal journals from CHN GL Post responsibility:

Step 1: Go to CHN GL Post responsibility.

Step 2: Click Journals > Enter. The Find Journals window appears.

Or

Click Journals > Post for mass posting. The Find Journal Batches window appears.

Step 3: Find the journal to post from Find Journals window.

Or

Select the journals to post (for mass posting) from Post Journals window.

Step 4: Click on Post

Note: The period should be open for posting journals.

Find and View the Journals

To find and view the journals:

Step 1: Click Reports: Inquiry > Journal. The Find Journals form appears.



Step 2: Enter the details. Click Find. The journals appear on the Journal Entry Inquiry form.

Step 3: Select a journal. Click Review Journal. The Journals form appears.

Step 4: Click T Accounts… to view the Journal in T-format.

Step 5: Close the Journals form. The Navigator-CHN GL screen appears.

Submit the Account Analysis Report

To submit the Account Analysis Report:

Step 1: Click Reports > Request in the Navigator-CHN GL screen. The Submit a New Request screen

appears.

Step 2: Select Single Request and click OK. The Submit Request form appears as shown in next slide.

Step 3: Enter the Name as Account Analysis – (180 Char). Press Enter. The Parameters form appears.

Step 4: Enter the Parameters as per the requirement.

Ledger/Ledger Set: By default, it is BSNS.

Ledger Currency: By default, it is INR.

Currency Type: Select Entered or Total from the list of values.

Entered Currency: By default, it is N/A.

Type: Select Entry Item, Line Item or Source Item from the list of values.

Balance Type: Select A, that is, Actual from the list of values.

Budget or Encumbrance Name: By default, it is N/A.

Starting Period & Ending Period: Select the Starting and Ending period from the list of values for which the

report has to be generated.

Flexfield From & Flexfield To: Select the From and To Flexfield for which report has to be generated. The

Flexfield will be in Zone. Circle. SSA. GL code format.

Order By: Select Account Segment, Balancing Segment or Source from the list of values.

Step 5: Click OK. The Parameters form closes.

Step 6: Click Submit. The Submit Request form closes.

Note: The status of the report generated can be viewed as shown in the next slide.

Note: The Copy…button on the Submit Request form helps to copy the request that has been executed with the

same parameters to run the process.

View the Account Analysis Report

To view the Account Analysis Report:

Step 1: Click View > Requests. The Find Requestsform appears.

Step 2: Click Find. The Find Requests form appears.

Step 3: Click Name. The reports that have been generated previously appears.

Step 4: Select the report. Click View Output to view the report.

Note: The output can be saved as a text file.

Submit the Trial Balance Report

To submit the Trial Balance Report:



Step 1: Click Reports > Request in the Navigator-CHN GL screen. TheSubmit a New Request form appears.

Step 2: Select Single Request and click OK. The Submit Request form appears as shown in next slide.

Step 3: Enter the Name as Trial Balance.

Step 4: Enter the Parameters as per the requirement.

Ledger/Ledger Set: By default, it is BSNS.

Ledger Currency: By default, it is INR.

Currency Type: Select Entered or Total from the list of values.

Entered Currency: By default, it is N/A.

Pagebreak Segment: Select SSA from the list of values.

Pagebreak Segment Low & High: Select CHN from the list of values.

Period: Select the period from the list of values for which report has to be generated.

Amount Type:Select YTD or PTD from the list of values.

Step 5: Click OK. The Parameters form closes.

Step 6: Click Submit. The Submit Request form closes.

Note: The status of the report generated can be viewed as shown in the next slide.

Note: The Copy…button on the Submit Request form helps to copy the request that has been executed with the

same parameters to run the process.

View the Trial Balance Report

To view the Trial Balance Report:

Step 1: Click View > Requests. The Find Requestsform appears.

Step 2: Click Find. The Find Requests form appears.

Step 3: Click Name. The reports that have been generated previously appears.

Step 4: Select the report. Click View Output to view the report.

Note: The output can be saved as a text file.

Log out from Oracle Applications

To log out from Oracle Applications:

Step 1: Click X, as circled above.

Or, From the menu bar, click File > Exit Oracle Applications.

Step 2: A dialog box appears, Exit Oracle Applications?. Click OK. The Oracle Applications window closes.



Implementation of amended Service Tax Rules in CDR System as per Corporate office Circular CA-264 dated 1st July-2011.

With reference to certain amendments made in Service taxrules through Finance Bill 2011 and

subsequent clarifications given by BSNL Corporate office, some changes in CDR system are

made to comply with the following:

Service tax payment based on invoices raised irrespective of its realization (against the

existing procedure of payment on realization of tax).

Payment of Service tax on advance payments.

Payment of service tax on excess payments.

Payment of service tax on voluntary deposits.

For implementation of the above amendment, Corporate office have allotted some new account

codes vide Circular CA-264 & CA-264-A.

The overall accounting flow in respect of post paid basic service given in the circular is as

summarized below:

Accounting Entries-Basic services-Post Paid [ C.O. circular CA-264 ]

GLcode Description Dr/Cr

On billing:

1114401 Service Tax Recoverable on post paid service as per POT rule Dr

1114402 Education cess recoverable as per POT Dr

1114403 Higher Education cess recoverable as per POT Dr

1196001 Service Tax Payable on post paid service as per POT rule Cr

1196002 Education cess payable as per POT Cr

1196003 Higher Education cess payable as per POT Cr

1133101 Service Tax paid to Service Tax Authority on post paid Basic service as per POT rule Dr

1133102 Education cess paid as per POT Dr

1133103 Higher Education cess paid as per POT Dr

1196201 Service tax Payable to Service Tax Authority on post paid basic service as per POT rule Cr

1196202 ED cess on ST Payable to Service Tax Authority on post paid basic service as per POT rule Cr

1196203 SHE cess on ST Payable to Service Tax Authority on post paid basic service as per POT rule Cr

On realisation of invoice amount/excess amount:

Bank/Cash Dr

Sundry Debtor Cr

1114401 Service Tax Recoverable for post paid service as per POT Cr

1114402 Education cess recoverable as per POT Cr

1114403 Higher Education cess recoverable as per POT Cr





1196301 Amount paid in excess by subscriber (in case of excess payment) Cr

Apportionment of excess payment

1196301 Amount paid in excess by subscriber Dr

1196302 Amount of revenue out of excess payment Cr

1196303 ST payable on the amount excess paid Cr

1196304 ED cess on ST payable on the amount excess paid Cr

1196305 SHE cess on ST payable on the amount excess paid Cr

1196001 Service Tax Payable for post paid service as per POT Dr

1196002 Education cess payable as per POT Dr

1196003 Higher Education cess payable as per POT Dr

1133101 Service Tax paid to Service Tax Authority for post paid service Cr

1133102 Education cess paid as per POT Cr

1133103 Higher Education cess paid as per POT Cr

On receipt of advance payment:

Bank account Dr

Advance from customers Cr

1196401 ST payable on advance amount Cr

1196402 ED cess on ST payable on advance amount Cr

1196403 SHE cess on ST payable on advance amount Cr

On refund of advance due to non-provision:

Advance from customers Dr

1133401 ST recoverable on advance refunded Dr

1133402 ED cess on ST recoverable on advance refunded Dr

1133403 SHE cess on ST recoverable on advance refunded Dr

1193005 Refund of advance taken (including ST) Cr

1193005 Refund of advance taken (including ST) Dr

Bank account Cr

On cancellation (adjustment):











1133301 Amount of service tax pertaining to post paid bills cancelled Dr

1133302 Education cess cancelled as per POT Dr

1133303 Higher Education cess cancelled as per POT Dr


1133102 Education cess paid to ST authority Cr

1133103 Higher Education cess paid to ST authority Cr

On write off proposal:

1133201 Amount of service tax paid in respect of post paid bills which could not be collected Dr

1133202 Education cess could not be collected Dr

1133203 Higher Education cess could not be collected Dr


1133102 Education cess paid as per POT Cr

1133103 Higher Education cess paid as per POT Cr







On realisation after write-off proposal:

Bank/Cash Dr

Sundry Debtor Cr

1133201 Amount of service tax paid in respect of post paid bills which could not be collected Cr

1133202 Education cess could not be collected Cr

1133203 Higher Education cess could not be collected Cr

On write off approval:

1742006 Bad debt for service provided written off Dr

1742007 Service Tax paid but not collected hence written off Dr

1133201 Amount of service tax paid in respect of post paid bills which could not be collected Cr

1133202 Education cess could not be collected Cr

1133203 Higher Education cess could not be collected Cr

Sundry Debtor Cr





On payment to ST Authority:

1196201 Service Tax Payable to Service Tax Authority for post paid service Dr

1196202 ED cess on ST Payable to Service Tax Authority on post paid basic service as per POT rule Dr

1196203 SHE cess on ST Payable to Service Tax Authority on post paid basic service as per POT rule Dr

1196303 ST payable on the amount excess paid Dr

1196304 ED cess on ST payable on the amount excess paid Dr

1196305 SHE cess on ST payable on the amount excess paid Dr

1196401 ST payable on advance amount Dr

1196402 ED cess on ST payable on advance amount Dr

1196403 SHE cess on ST payable on advance amount Dr

1133301 Amount of service tax pertaining to post paid bills cancelled Cr

1133302 Education cess cancelled as per POT Cr

1133303 Higher Education cess cancelled as per POT Cr

1133401 ST recoverable on advance refunded Cr

1133402 ED cess on ST recoverable on advance refunded Cr

1133403 SHE cess on ST recoverable on advance refunded Cr

CENVAT credit Cr

Bank Cr

The new GL codes are to be operated for the service tax on all the invoices raised for services

rendered from 01.07.2011 onwards and advance/excess payments received from the effective date [

01.07.2011 ].

The module in CDR has been developed prior to issue of this circular with some limited account codes

after sharing the approach document with Corporate office. Hence the SI could not incorporate the

complete Account codes given in Circular CA-264 . As per endorsement given to ITPC in circular CA-

264, only the following account codes are considered for operation in CDR system:

1114401ST/ED cess/SHE Cess Recoverable as per POT

1196001Service Tax/Ed cess/SHE cess Payable as per POT rule

1196401ST/Cess/SHE Cess payable on advance amount 1196302Amount of revenue out of excess payment

1196303ST/Cess/SHE Cess payable on excess payment

1742007 Service Tax paid but not collected hence written off [ Bad debt-Tax]



Billing procedure: At the time of billing, service tax amount received in advance & tax paid on excess

payment will be adjusted against tax due or any other due and invoice will be sent for the balance

amount.

Accounting treatment:

(a) Advance payment including deposit.

Let us assume a demand note payment of Rs 1000+10.03 % tax (on Rs 250) Rs 26 ie Rs 1026

which includes Rs 750 towards security deposit.

Billing will send the following invoice settlement ( IS) feed to accounting:

1194502 - TR Collection Account Dr 1026

To 1191100 Advance from customers Cr 1000

To 1196401ST/Cess/SHE Cess payable on advance amount Cr 26

In case the demand note payment receiving SSA is not the owning SSA and the payment relates to

other SSAs/Circles, then the entire payment to be booked in remittance head and the booking in

GLcode „1196401ST/Cess/SHE Cess payable on advance amount „ will happen on behalf of the

owning SSA and the owning SSA has to settle the tax liability. The accounting feed in such cases will

be as follow:

(Payment receiving SSA)


To Remitance same/different Circle Cr 1026

(Payment owning SSA)

Remittance same/different Circle Dr 1026

To 1194502 TR collection account Cr 1026

1194502 -TR Collection Account Dr 1026

To 1191100-Advance from customers Cr 1000

To 1196401ST/Cess/SHE Cess payable on advance amount Cr 26

(b) Excess payment

Let us assume a payment of Rs 1500 including an excess payment of Rs 500. Tax 10.03%

Billing will send the following invoice settlement ( IS) feed to accounting:


To Sundry debtors etc Cr 908

To 1114401ST/ED cess/SHE Cess Recoverable as per POT Cr 92

To 1196302Amount of revenue out of excess payment Cr 454



To 1196303ST/Cess/SHE Cess payable on excess payment Cr 46

The revenue on excess payment will be calculated on pro-rata basis ie “

(100 /110.03)*excess_amt “ and the balance will be the ST on excess payment.

In case the payment receiving SSA is not the owning SSA and the payment relates to other

SSAs/Circles, then the entire payment to be booked in remittance head and the booking in

GLcode „1196303 ST payable on excess payment „ will happen on behalf of the owning SSA and

the owning SSA has to settle the tax liability.The feed in such cases will be as follow:


To Remitance same/different Circle Cr 1500

(Payment owning SSA)

Remittance same/different Circle Dr 1500

To 1194502 TR collection account Cr 1500

1194502 -TR Collection Account Dr 1500

To Sundry debtors etc Cr 908

To 1114401ST/ED cess/SHE Cess Recoverable as per PO Cr 92

To 1196302Amount of revenue out of excess payment Cr 454

To 1196303ST/Cess/SHE Cess payable on excess payment Cr 46

Payment to service tax authorities will happen based on the total liability existing for the month

in following GLcodes:

1. 1196001-Service Tax/Ed cess/SHE cess Payable as per POT rule

2. 1196303ST/Cess/SHE Cess payable on excess payment as per POT

3. 1196401ST/Cess/SHE Cess payable on advance amount as per POT

However the total amount paid to ST authorities will be debited to „1196001-Service Tax/Ed

cess/SHE cess Payable as per POT rule‟. The debit balance , if any , appearing in the „1196001-

Service Tax/Ed cess/SHE cess Payable as per POT ‟ will get adjusted from subsequent normal

credits. A summary report along with annexure-I,II,III, IV,V & VI will be provided for this purpose.

The GL „1196001 –ST/Ed cess/SHE cess payable as per POT‟ may at times have a debit balance and

the corresponding credit will be available in GL „1196303 ST/Cess/SHE Cess payable on excess

payment as per POT‟ and „1196401- ST/Cess/SHE Cess payable on advance amount as per POT‟.



[ Actually AO cash will classify the payment to service tax authorities as „1194501-TR settlement

account‟ in bank book in EFS (external Financial system). A manual journal entry will be made in

CDR accounting system debiting „1196001-Service Tax/Ed cess/SHE cess Payable as per POT rule‟

and crediting „1194501-TR settlement account‟ by the SSAs or by DC if the details are furnished by

SSA to the Data centre.]

The account settlement process will transfer the balances , if any , under ‟ 1196302Amount of revenue

out of excess payment „ and „1196303ST/Cess/SHE Cess payable on excess payment as per POT‟ to

the credit of „1193002 Refund due on Closed connections‟.

1196302Amount of revenue out of excess payment Dr 1196303ST/Cess/SHE Cess payable on excess payment as per POT Dr

To 1193002 Refund due on Closed connections Cr

In respect of advance payments, when service is provided and invoice raised, following will be the

accounting feed (Assuming FC 750, usage Rs 1250, security deposit due Rs 750 and tax @10%):

1110101/1110509 Sundry Debtors LL/BB etc Dr 2000

1114401ST/ED cess/SHE Cess Recoverable as per POT Dr 200

1132501-Security deposit Recoverable Dr 750

To various revenue heads (FC,Usage) Cr 2000 To 1196001-Service Tax/Ed cess/SHE cess Payable as per POT Cr 200

To 1194701-SD under recovery Cr 750

1191100 -Advance from Customers Dr 1000

1196401ST/Cess/SHE Cess payable on advance amount Dr 26

To 1110101/1110509 Sundry Debtors LL/BB etc Cr 1000


(credit will happen to the available open item and not necessarily to tax)

Thus the net invoice to customer will be for the amount 2000+200+750-1000-26=1924 (Interest applicable, if any , on pre-connection deposits will be calculated on the net amount after tax

ie Rs 1000 and not on 1026 in this case).

Let us assume the first invoice after provision of service is having FMC due of Rs 150 only (due to broken period) and usage of Rs 50. Then following are the accounting feeds expected:

1110101/1110509 Sundry Debtors LL/BB etc Dr 200

1114401ST/ED cess/SHE Cess Recoverable as per POT Dr 20 1132501-Security deposit Recoverable Dr 750

To various revenue heads (FC,Usage) Cr 200

To 1196001-Service Tax/Ed cess/SHE cess Payable as per POT Cr 20

To 1194701-SD under recovery Cr 750



1191100 - Advance from Customers Dr 1000 1196401ST/Cess/SHE Cess payable on advance amount Dr 26

To 1110101/1110509 Sundry Debtors LL/BB etc Cr 200


To 1132501-SD recoverable Cr 750 To 1191100 - Advance from Customers Cr 56

The ST payable on advance payment credit will get fully distributed towards any due in the invoice

including tax. Surplus, if any, will remain in the same head-ie advance from customers in this case)

The internal payments on account of transfer from deposit, OYT rebate etc. will not be routed to the

new GL „1196303ST/Cess/SHE Cess payable on excess payment „. Excess if any arising in internal

payments will be routed to the existing old GL „1193001 Refund due on Double Excess Pmt‟

Similarly the Tax payable on excess payment and amount of revenue out of excess payment credits

will also be fully adjusted against any due in the next invoice as follow:

1196302Amount of revenue out of excess payment Dr

1196303ST/Cess/SHE Cess payable on excess payment as per POT Dr

To 1114401ST/ED cess/SHE Cess Recoverable as per POT Cr

To Sundry debtor LL/BB etc Cr

In both the cases based on the invoices against which this excess/advance amount is being distributed ie invoice before 1st August or after 1st August old and new GL codes will be used respectively

Payments: The tax part of payments received are allocated to the respective tax GLcodes depending

on whether the invoice is for the service period before or after 01.07.2011 (ie invoice date is prior to 01.08.2011 or after ).

For invoices issued upto 31.07.11:

TR collection account Dr

To sundry debtors etc Cr

To ST recoverable (old GL) Cr

To Ed cess recoverable Cr To Higher Ed cess recoverable Cr

For invoices issued from 01.08.2011 onwards:

TR collection account Dr

To sundry debtors etc Cr

To ST/Ed cess/SHE cess recoverable as per POT Cr



Adjustments: Whenever some adjustment is required due to erroneous billing, deficiency in service,

surrender of service or change over to monthly plan before expiry of annual plan etc., adjustments as follow will happen:

Revenue heads Dr

1196001-Service Tax/Ed cess/SHE cess Payable as per POT Dr

To 1194504-Credit memo invoicing account Cr

1194504-Credit memo invoicing account Dr

To Sundry debtor etc Cr

To 1114401ST/ED cess/SHE Cess Recoverable as per POT Cr

In view of some system constraints expressed by SI in knocking off the old tax GL codes for the

adjustment happening on invoices prior to 01.08.2011 , a separate report (AnnexureVIII) will be

provided detailing the tax adjustment on such invoices for carrying out manual Journal entry in accounting system.

In case of non-provision of service and refund of the advance payments, following will be the feed to

accounting system: 1191100 -Advance from customers Dr

1196401ST/Cess/SHE Cess payable on advance amount Dr

To 1193002-Refund due on closed connections Cr

Write-offs: In case of settlement of account on permanent closure, irrecoverable outstanding tax under

„1114401ST/ED cess/SHE Cess Recoverable as per POT „ , if any, cannot be set off against the

liability „1196001-Service Tax/Ed cess/SHE cess Payable as per POT ‟. It has to be set off against

„bad debts‟ only. The accounting entry in respect of this will be as follow:

1742006-Bad debts (old GL) Dr

1742007 Service Tax paid but not collected hence written off Dr

To 1110101/1110509 Sundry Debtors LL/BB etc. Cr To 1114401ST/ED cess/SHE Cess Recoverable as per POT Cr

However tax outstanding for the period prior to the effective date of this amended service tax rules

have to be set off as per the earlier procedure as follow: 1742006-Bad debts Dr

1192301 /1192306 /1192309 Service tax payable (old head) Dr

To 1110101/1110509 Sundry Debtors etc. Cr

To 1110901/1110906/1110909 Service tax recoverable (old head) Cr

Reports : There will be a separate SLR report for the GL „1114401ST/ED cess/SHE Cess

Recoverable as per POT ‟ head including age-wise break up etc. In addition following reports will

also be provided to comply with the Service tax Audit requirements :

1. Invoice –wise details of tax raised – (Annexure-I)

2. Details of advance payments and advance tax- (Annexure-II)

3. Details of excess payments and tax on excess payment (Annexure-III).



4. Details of adjustments carried out-(annexure-IV)

5. Billing/Adjustment details of service tax payable on advance payments–(Annexure-V)

6. Billing/adjustment details of service tax payable on excess payments.(Annexure-VI) 7. Details of annual plan charges billed during the bill cycle (annexure –VII). 8. Details of adjustments on invoices issued before 01.08.11 but debited to POT tax payable GL(Annexure-VIII)

9. Summary of Annexure-I to VI

Summary of Annexure-I to VI

Summary statement of Service tax payable for the month of ---------------

SSA:

Sl Details Amount (Rs) Remarks

1 Total tax billed through invoices as per annexure-I

2 Add: Tax on Advance pmt received as per annexure-II

3 Add: Tax on excess payment received as per annexure-III

4 Less: Adjustments carried out during the month-Annexure-IV(on inv fm 1.8.11)

5 Less: Tax on Advance pmt billed/adjusted during the month-Annexure-V

6 Less:Tax on excess pmt billed/adjusted during the month-Annexure-VI

7 Net Service Tax/Ed cess/SHE cess Payable as per POT(1+2+3-4-5-6)

Break up: Service tax ?% Education Cess ?% Higher Education Cess ?% Total

With this , tax payable on realisation basis for the invoices issued prior to 01.08.2011 also has to be added (

based on separate SLR ) and Tax payment to service tax authorities regularised.

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