BNPL SOP for Customer Balance Clearance in DOP (Post Office)
Standard Accounting Procedure (SOP) for BNPL (Book Now Pay Later) Customer Balance Clearance
Download SOP for BNPL Customer Balance Clearance in DOP (Post Office) in PDF
Government of India Ministry of Communication Department of Posts (Tech Section- PAF Wing) Ver 1.0 File No: PA/CSI/02/118/2021-22 Dated: 15th April 2024 Effective: From FY 2024-25
References: (1) DGPS Instructions vide PA/CSI/04/161/2022-23 dated 17.11.2022 & 07.12.2022 (2) PO Division 27-15/2022-P0 dated 27.12.2022 to all HoCs (3) PO Division 27-15/2022-P0 dated 10.07.2023 to PAF Wing (4) UAT Report of CEPT
TABLE OF CONTENTS
Introduction
Booking: (Business Cycle)
Billing - Revenue Earned (Accrual Accounting)
Bill Payment
Settlement - Revenue Realized (Cash Based Accounting)
Bills to be cleared from FY 2024-25
Apportionment of Revenue between DDOs / Circles
Existing F-28 Settlement Process & Challenges
Revised Settlement Process
Scenarios
Remittance to Bank Sequence
Accounting Process by the Profit Centre where Payment is received (F-02)
Accounting Process by the Profit Centre where Revenue is accounted (F-04)
GL 4878200015 - RSAO- BNPL Customer Payment
Reconciliation before close of the account period
Record Maintenance & Reporting by the Profit Centres through their DDO
Monitoring
1. Introduction:
The Department of Posts offers Contractual Customers the "Book Now Pay Later" service under certain products. BNPL Customers are allowed to book their articles at one or more Booking locations as per their request.
2. Booking: (Business Cycle)
BNPL Customers present their articles for booking at predefined locations (Profit Centres), which may be spread across the country.
3. Billing - Revenue Earned (Accrual Accounting)
Bills are raised in SAP during the first week of every month for services availed in the previous month. Billed amount with applicable GST is accounted in respective Revenue & GST GL Accounts. Liability is raised against the respective BNPL Customer Account. Revenue is not realized until payment is received and the outstanding balance in the Customer’s Account is cleared in SAP.
4. Bill Payment
Bill amount is to be paid by the BNPL Customer on or before the last day of the month in which the bill is raised. Payment can be made at identified Booking Locations through authorized payment modes.
5. Settlement - Revenue Realized (Cash Based Accounting)
Payment received from BNPL Customer is adjusted against the bill raised in the BNPL Customer’s Account. Uncleared balances in SAP occur if payment is received but the bill is not settled, resulting in revenue not being reflected.
6. Bills to be cleared from FY 2024-25:
Payments received in Cash or Bank Account of the DDO from 01.04.2024 are taken into account for clearance of outstanding balances in the Customer Account.
7. Apportionment of Revenue between DDOs / Circles:
Revenue is accounted in the Profit Centre where BNPL articles are booked, hence apportionment of revenue & applicable GST does not arise.
8. Existing F-28 Settlement Process & Challenges:
F-28 Process fetches revenue to eLekha against "Remittance to Bank clearing" GL Account only. Revenue accounted in different Profit Centres but payment received at one Profit Centre could not be cleared through existing F-28 process, impacting revenue reflection.
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).
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16. Record Maintenance & Reporting by the Profit Centres through their DDO:
Details of BNPL Customers with jurisdiction to be maintained by each DDO. 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. 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:
Circle Office / Regional Office / Divisional Office to issue instructions to Post Offices for F-02 & F-04 processes. Receive reports in Annexure-I by 5th of every month. PAOs to monitor balances in GL "4878200015- RSAO BNPL Incoming Payment" and intimate necessary instructions to field units to clear Customer balances.
ANNEXURE-I (Monthly report on F-02: BNPL CUSTOMERS INCOMING PAYMENT)
ANNEXURE-II (Monthly report on F-04: BNPL CUSTOMERS BALANCE CLEARANCE)
BNPL CUSTOMER BALANCE CLEARANCE - F-02 / F-04 PROCESSES (ILLUSTRATION)
