Chapter XXVIII: Check and Payment of Stores Bills

Direct payment for stores is made when the liability incurred by the receipt of stores is settled through direct payment.

Purchases arranged by the Controller of Stores are examples of direct payments.

Direct payments can include local petty stores purchases authorized by the Directorate General of Supplies & Disposals.

Book adjustments resolve store bill liabilities concerning internal railway transactions, inter-departmental payments, and payments to other government departments or railways.

Direct payment procedures require a Purchase Order (S. 714) check to verify the order accuracy.

Direct payment procedures also require a check of Receipt Notes (S. 719 or 726) to ensure actual receipt of the ordered stores.

Purchase Account Registers (S. 2809) keep track of store purchase liabilities unresolved by payments before detailed bill checks.

Checking if Purchase Orders have sequential numbers; reporting missing ones.

Purchase Orders must comply with established policies specified in Chapter III

Purchases handled by external agencies (e.g., Directorate General of Supplies and Disposal) to be done only in emergencies.

Checking for consistent pricing of same materials over time.

Checking if rates comply with contracts when material supply agreements exist.

Recording Receipt Note number and date on the related Purchase Order.

Indicating stocked items on Purchase Orders for later review in the Suspense Register.

Receipt notes in Part III of S.719 or 726 are crucial when payment isn't based on dispatch proof.

Individual supplier or contractor's transactions should be tracked in separate sections of the Purchase Account Registers.

Registers for suppliers with contracts longer than a year should have space for three years of transactions; shorter-term contracts can use a smaller register.

Registers should reserve enough space to record payments related to an order or agreement.

Purchase Account Registers should have unique serial numbers for each financial year.

Registers track various payment details including receipts, voucher numbers, and dates related to purchasing from suppliers.

Abbreviations for Agreement/Order. Refer to a purchase agreement or order.

A unique number identifying a receipt of goods from a supplier.

Records confirming the receipt of goods from a supplier.

Represents a specific department in a larger organization (likely railway system) responsible for stores and supplies.

A record of all purchases made by the railway, including stores. It tracks debits and credits, reflecting the balance of money owed for purchases.

Indicates money owed for stores purchases that have not yet been paid for. This should be rare and investigated immediately if it occurs.

Bills for stores can be paid even before the stores arrive, especially for reputable suppliers. Payment is usually a percentage of the total value.

Used for recording payments made before stores arrive. This helps to keep track of the transactions and ensure that the correct amount is paid.

Ensuring the Purchase Account Registers are current is important for timely processing and payment of bills.

The Purchase Account Registers are inspected regularly by both section officers and the stores accounts officer to ensure accuracy and prevent delays.

Bills for stores are prepared by the suppliers using Form S. 2817 and sent to the railway's accounts officer.

This signifies that the railway has already paid for more stores than it has received.

When a debit balance occurs, it requires investigation to ensure there are no errors or discrepancies.

Suppliers must submit bills with Part II of the Receipt Note (S. 716 or 726) from the depot that received the supply.

Duplicate copies of Part II of the Receipt Note should never be issued to suppliers by depots. All requests for duplicates must be addressed to the Chief Accounts Officer.

Bills are stamped with the date, examined for completeness and accuracy, and then registered in the Register of Bills.

A rate verification clerk compares the rates and quantities on the bill with the original Purchase Order from the Controller of Stores.

The Section Officer keeps track of the quantities supplied against each Purchase Order by noting the bill details on the order. When the order is completed, the Purchase Order is marked 'COMPLETED'.

Stores bill liabilities are discharged either through direct payment or book adjustments.

Direct payments are made for purchases arranged by the Controller of Stores, local petty stores authorized by the Directorate General of Supplies & Disposals, timber, coal, coke, oil fuel, sewing, tailoring charges, customs duty on imported stores, loading/unloading charges, and port dues.

Book adjustments are used for internal railway transactions like stores returned or manufactured stores supplied by workshops, payments due to other government departments or railways with exchange account facilities.

Internal check of bills for direct payments includes checking the Purchase Order (S. 714), Receipt Notes (S. 719 or 726) and maintaining Purchase Account Registers (S. 2809).

Purchase Account Registers maintain a record of liabilities incurred for stores purchased from each supplier that haven't been paid yet, pending detailed bill checks.

The Purchase Account Register tracks receipts, voucher numbers, and dates related to purchases from suppliers.

Bills for stores can be paid in advance, especially for reputable suppliers, usually a percentage of the total value. A separate Purchase Account Register is used to track these payments.

Purchases exceeding the Controller of Stores' buying power need approval from a higher authority, usually based on the item's value or type.

External organizations like the Directorate General of Supplies and Disposal handle purchases except in emergencies.

Ensuring that the same type of material is bought at consistent rates over time.

Matching the rates in a purchase order to the agreed-upon contract terms.

Tracking items received in the warehouse against Purchase Orders for later review.

The Accounts Officer verifies Purchase Orders, ensuring they are complete and compliant with regulations.

Purchase Orders that don't meet requirements are either corrected or rejected.

A document summarizing daily credits to the Purchase Account for each depot, used to reconcile stores received with the Purchase Account Register.

When dealing with reputable suppliers, payments can be made in advance for stores that haven't arrived yet, usually a percentage of the total value.

To track payments made before stores arrive, ensuring proper accounting and preventing overpayment.

Indicates a situation where the railway owes more than it has received, requiring prompt investigation to identify potential errors or discrepancies.

Bills are checked for completeness and accuracy, then registered in the Register of Bills, with rates and quantities compared to the original Purchase Order.

The register keeps track of receipts, voucher numbers, and dates related to purchases from individual suppliers.

To maintain a record of liabilities incurred for purchases that haven't been paid yet, pending detailed bill checks.

The process of settling the financial liability incurred by receiving stores from a supplier.

Making a direct payment to a supplier for the stores you received.

Resolving store bill liabilities through internal transfers or adjustments within the organization.