In plant wise requirement various excel files are

In plant wise requirement various excel files are prepared
which is as follows
Summery statement
Revenue expenditure
Capital expenditure
RCC wise
Similarly depending upon the functions various budgets is
prepared. Basically here for production and engineering
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requirements send by RCC head is provided in plant wise
description chart but for others such as
Personnel/security
Safety/ETP
QA/QC
Stores
In above functions division wise budgets are also made for
example
QA/QC -> Division -> PDL
QA
Contract Manufacturing
Personnel/security -> Division -> Personnel/security
Division Management
Division Accounts
Separate budgets are prepared and then sanctioned by
respective head.
Now the budgets prepared by finance department is further
send to respective departmental head. Then plant heads,
followed by Vice President & onwards as per the Capex
amount, approves these capex’s.
As explained earlier Finance manager maintain the budget
information, following manufacturing locations of API are
catered at Mohali Division
MOHALI
TOANSA
DEWAS
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After preparation of Budgets, BOD approves Capital
Expenditure by initiating CAPEX form by Plant head that is
appropriately signed by requisite authorities. In CAPEX Form
itself amount is classified into various categories
A. Replacement/Cost Reduction
B. Expansion into New Product/New Product Packs
C. Quality, Safety, Environmental
D. Expansion of Existing Products Packs
E. Replacement: Maintenance of Business
F. Others
All kinds of expenditure are classified into above head for API
Manufacturing for approval of Capital Expenditure
Accounting Route for API Manufacturing
Capital Expenditure
When top authorities approve the Capex requirement then an
internal order number is created by Plant department. After the
creation of internal order number finance department inform
respective accounts department about the same. On receipt of
the IO, indenter will create the purchase requisition that
subsequently go to purchase department. Purchase department
will float enquires and prepare comparative charts for at least 3
vendors. After selecting the vendor, purchase department will
place a purchase order (PO) on the vendor for supply of the
asset. In case, as per the terms of the PO, any advance is to be
given to vendor, the same is released by accounts department,
after passing the necessary entries in the vendor account under
respective business area (BA). The purchase department while
preparing the PO would ensure to mention complete name as
“RANBAXY LABORATORIES LIMITED, API
MANUFACTURING” and address/ location of delivery of the
asset. On receipt of the goods, the
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Stores department will arrange to prepare the GRN and get the
same approved by the user department. On approval of the
GRN, the stores department will send the bill to accounts for
invoice verification. The accounts department will verify the
invoice with PO and release the balance payment to vendor.