Standard Accounting ProcedureBNPL Customer Balance Clearance (F-02 / F-o4)(Ver 1.0)
File No : PA/CSI/02/182/2022-23
Dated : 15th April 2024
Effective : From FY 2024-25 (w.e.f 01/04/2024)
References
(1) DGPS Instructions vide PAICSI104/161,/2022-23 dated 17.11.2022 & 07.12.2022
(2) PO Division 27-75/2022-PO dated 27.72.2022 to all HoCs
(3) P0 Division 27-1.5/2022-PO dated 1.0.07.2023 to PAF Wing
(4) UAT Report of CEPT
Standard Accounting Procedure BNPL Contractual Customer Balance Clearance (Revised process effective from the FY 2024-25)
1. Introduction:
Department of Posts offers to Contractual Customers "Book Now Pay Later" Service under certain products. BNPL Customers are allowed for booking their articles at one or more Booking locations as per their request.
2. Booking: (Business Cycle)
BNPL Customers may present their articles for booking at the predefined locations (Profit Centres). These locations (Profit Centres) may be in one or more than one spread across the country.
3. Billing - Revenue Earned (Accrual Accounting)
→ During the first week of every month, Bills are raised in SAP for the services availed in the previous month, after applying the eligible discount to the BNPL Customer, for the business done across all the booking locations.
Eg: Articles booked in January are billed in February.
❖ When the bill is generated in SAP, billed amount with applicable GST is accounted in the respective Revenue & GST GL Accounts. Liability is raised against the respective BNPL Customer Account.
It is not treated as revenue realized until payment is received and the outstanding balance in the Customer's Account is cleared in SAP.
4. Bill Payment
As per agreement, the bill amount is to be paid by the BNPL Customer on or before the last day of the month in which month the bill is raised.
BNPL Customers can make payment at one of the identified Booking Locations through any of the authorized payment modes.
5. Settlement - Revenue Realized (Cash Based Accounting)
Payment received from the BNPL Customer is to be adjusted against the bill raised in the BNPL Customer's Account.
If payment is received but bill is not settled in SAP results in uncleared balances in SAP and "Revenue is not reflected" in e Lekha.
6. Bills to be cleared from FY 2024-25:
→ The payments received in Cash (or) in the Bank Account of the DDO from 01.04.2024 are to be taken into account for clearance of outstanding balances ("RV" Documents) in the Customer Account.
Bills for which the "Payments Received & Accounted in SAP up to 31.03.2024" should not be cleared from the FY 2024-25.
Bills for which the "Payments Received but NOT ACCOUNTED in SAP up to 31.03.2024, may be cleared in FY 2024-25.
7. Apportionment of Revenue between DDOS / Circles:
Revenue is accounted in the Profit Centre where the BNPL articles are booked. Hence, apportionment of revenue & applicable GST does not arise.
8. Existing F-28 Settlement Process & Challenges:
→F-28 Process will fetch revenue to eLekha against "Remittance to Bank clearing" GL Account only
"Revenue" accounted in the Profit Centres under NCDDO, could not be cleared through "Remittance to Bank" as NCDDO does not have a Government Bank Account. Revenue is not reflected.
"Revenue" accounted in different Profit Centres but payment received at one Profit Centre, could not be cleared through the existing F-28 process and "Revenue" under the respective DDOS is not reflected.
Note: F-28 T-Code is blocked from the FY 2024-25
9. Revised Settlement Process:
F-02 at the Profit Centre where amount is received (including NAF)F-04 at the Profit Centre where Bill amount is accounted (RSAO GL 4878200015 will be used for accounting between Profit Centres)
Note:
(1) There is no change in the existing Billing Process.
(2) F-02 & F-04 processes should be carried out in the same month before closure of account period. (3) Customer Account Balance SHOULD NOT be cleared directly with "Remittance to Bank". (4) Customer Balance is to be cleared by debiting 4878200015 (RSAO-BNPL Customer Incoming Payment), subject to confirmation from payment Office.
10. Scenarios
(1) Involving two different Profit Centres where "Revenue is Accounted" and "Payment is Received" (Profit Centres may be under the same DDO or different DDOS)
(2) Involving same Profit Centre where "Revenue is Accounted" and "Payment is Received" (Same DDO)
Note:
(1) DDO includes CDDO & NCDDO and all the profit centres under the jurisdiction of that DDO. (2) BNPL Customers includes NAF Customers
11. Remittance to Bank Sequence:
(1) If Cheque is received at a Profit Centre which does not have a Bank Account, the physical cheque is to be sent to the Profit Centre (HO) having Government Bank Account. No accounting entry is required in SAP. This process is same for SO to HO/ NCDDO to CDDO/ MBC BPC to HO etc.,
(2) The Profit Centre which receives the Cheque shall remit to the Bank and after clearance, it is posted in SAP through F-02 Process as mentioned in this document.
(3) If Payment is received through NEFT ie., to the Bank Account directly, Payment Office will perform F-02 process and intimate the same to "Revenue Profit Centre(s)" concerned.
12. Accounting by the Profit Centre where BNPL Customer Payment is received:
(a) Receive the amount by the Profit Centre either through Cash / Bank Credit (Cheque/DD / NEFT/RTGS etc.,)
(b) Post the following accounting entries on the current date through T-Code F-02
Note:
(1) F-02 is to be carried out only on receipt of payment from BNPL Customer
(2) Current Date is the date on which the accounting entry is posted. Back Dated Transactions are to be avoided for correct reflection of revenue in e-Lekha.
(c) In case of reversal of the above document, it should be done within T+2 days only. Profit Centres where the above entry is posted shall be responsible for correct posting. (d) Only after correct and confirmed accounting, the payment information is to be communicated to other Profit Centres where Revenue is accounted ("RV" Document accounted). No reversal are to be made once it is communicated to other Profit Centres. (e) Communicate the Incoming Payment details (Document Number, Customer Account No, Customer Name etc.,) to the Offices concerned (Profit Centres) where "RV" Documents are posted against the BNPL Customer Account. These details are to be communicated to the respective Profit Centres on the same day of performing F-02, without delay, to perform F-04 process.
(f) Follow the process mentioned at Para 12 of this document, for clearing the Customer Liability ie., "RV" document of their own Profit Centre.
(g) Submit a monthly report to PAOS with a copy to DO, in Annexure-I (F-02 report)
Note:
(1) Customer Account Balance should not be cleared directly with "Remittance to Bank" (2) "RSAO-Credit" is to be accounted even if the Profit Centre is the same (i.e. where "Revenue is accounted" and "Payment is received"). This Credit is cleared by debit in the same Profit Centre while performing F-04 process as in para 12.
13. Accounting Process by the Profit Centre where Revenue is accounted:
(a) Receives communication from the Profit Centre where the amount was received (Ref: Para 11 above)
(b) Clear the "RV" Document in the respective BNPL Customer's Account.
(c) Post the following accounting entries on current date through T-Code F-04
Note:
(1) Current Date is the date on which the accounting entry is posted. Back Dated Transactions to be avoided, for correct reflection of revenue in e-Lekha.
(2) F-04 processes are to be carried out in the same month of F-02, before closure of account period.
(a) In case of reversal of the above document, it should be done within T+2 days only. Profit Centres where this entry is posted shall be responsible for correct posting.
(b) Submit a monthly report to PAOS with a copy to DO, in Annexure-II (F-04 report)
Note:
(1) Customer Account Balance is not be cleared directly with "Remittance to Bank" (2) RSAO Debit is accounted even if the "Revenue Accounted" and "Amount Received" Profit Centre is same.
14. GL 4878200015 BALANCE: RSAO- BNPL Customer Incoming Payment
(a) For the Customers within the same DDO, Total Debit is equal Total Credit in the GL for the month, at DDO Level.
(b) For the Customers within the same Circle, Total Debit is equal Total Credit in the GL for the month, at Circle Level.
(c) For the Customers involving multiple Circles, Total Debit is equal Total Credit in the GL for the month, at pan India Level.
Note:
(1)At the close of every month, total credits should be equal to total debits in the GL Account 4878200015, at the pan India level.
15. Reconciliation before close of the account period:
(a) Generate FAGLB03 for 4878200015 to check the Total Debits & Credits
(b) If Total Credit is more than Total Debit in a month, F-04 process is pending. This will impact Revenue Realization
(c) If Total Credit is less than Total Debit in a month, F-04 is processed and Customer balance
is cleared without receipt of Payment. This will impact Cash realization
(d) If Total Credit is equal to Total Debit in a month, then the process of Customer Clearance is proper. Revenue reflection is followed by Cash realization
Exception:
(1)Manual posting other than for BNPL Customer Incoming Payment Clearing.
(2)Bill amount paid by the Customer is not equal to the total of all "RV" Documents
(3)Payment Office did not communicate the details to Other Profit Centres to settle the bills
16.Record Maintenance & Reporting by the Profit Centres through their DDO:
(a) Details of BNPL Customers with jurisdiction (within DDO, within the same Circle, Between Circles) to be maintained by each DDO.
(b) F-02 Process carried out by the Profit Centres where payment is received is to be communicated to the Profit Centres where Revenue is accounted.
(c) A monthly report in Annexure-I (F-02 report) & Annexure-II (F-04 report) to be submitted by the DDO to their Divisional Office & PAO, by 5th of each month.
17.Monitoring:
I.Circle Office / Regional Office / Divisional Office:
(a) Issue instructions to the Post Offices to perform F-02 & F-04 processes as applicable, in the same month.
(b) Monitor performance of F-02 / F-04. If not done, there will be an impact on Cash realization and Revenue Realization.
(c) Receive the reports received in Annexure-I by 5th of every month
(d) Review the Operational activity and ensure execution of F-02 / F-04 Processes by the Profit Centres in their jurisdiction so that revenue is reflected properly in e Lekha.
II.Postal Accounts Offices:
(a) Receive a copy of the report in Annexure-I (For F-02) & Annexure-II (For F-04) by 5th of every month
(b) PAO to monitor the balances in the GL "4878200015- RSAO BNPL Incoming Payment" to review the imbalance, if any, and intimate their Circle Office / respective Regional / Divisional Offices, to issue necessary instructions to their filed units to clear the Customer balances.
25/04/24
(Shivani Sharma) ADG (Accounts)
Annexure- I Monthly report on F-02 : BNPL Customers incoming payment
To be submitted by the DDOs where payment are received from the Customers ( Due Date: 5th of every month)
Annexure- II Monthly report on F-04 : BNPL Customers Balance Clearance
To be submitted by the DDOs where payment are received from the Customers ( Due Date: 5th of every month)
BNPL CUSTOMER BALANCE CLEARANCE-F-02/F-04 PROCESSES
(ILLUSTRATION)
Customer ledger T Code in SAP-FBL5N
Customer: 4000039317
Scenario: RV document in two different Profit Centres in different Circles
1. INVOICE GENERATED
(a) Invoice (RV) document No: 9000001102 at Profit Centre 1132010000 (Chittoor HO) for Rs. 59000.00 dated 31.03.2024
(b) Invoice (RV) document No: 9000002265 at Profit Centre 2132610000 (Mysuru HO) for Rs. 118000.0 dated 31.03.2024
Tags: BNPL SOP | BNPL Latest SOP | SOP for BNPL Incoming Payment | BNPL SOP for clearing incoming payment | BNPL Payment Clearance | BNPL Customer Payment |Alternate method for F-28 |Procedure for clearance of incoming BNPL customer payment
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