cbe corp auto recon proposal (1)

8/13/2019 CBE Corp Auto Recon Proposal (1)

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Orbito Asia Technology Solutions 97877 97877 Near Kidney center, Puliyakulam Road, [email protected] - 641025, Tamilnadu, India.www.orbito.in

-Date: Sunday, 08 December 2013Sunday, 08 December 2013

CONFIDENTIAL

ProposalFor

Online Auto Reconciliation for Coimbatore City Municipal Corporation

Submitted by:

Orbito Asia Technologies Systems Pvt LTd,

Address:

Email: vishnuvardhan@OrbitoAsia .com

Contact Person Name: Vishnuvardhan T

This document is the property of Orbito Asia Technologies Pvt Ltd., who owns the copyright thereof. Theinformation in this document is given in confidence and without the written consent of Orbito AsiaTechnologies Pvt Ltd., given by contract or otherwise, this document must not be copied, reprinted orreproduced in any material form, either wholly or in part. Also the contents of this document or anymethods or techniques available there from, must not be disclosed.


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Section 1 Scope


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Auto Recon: Automatic Reconciliation using Imported Bank StatementOverview

Auto-Recon is web based application that provides a visual tool for managing bank statements thatsimplifies data entry into accounts. As soon as a statement is validated, the corresponding accountingentries are automatically generated by Auto-Recon. So non-accounting people can enter financialtransactions without having to worry about things such as credit, debit and counterparts.

This process assumes that the corporation receives an electronic bank statement from all banks andwishes to automatically reconcile it to the Financial Account in the system.

The automatic reconciliation process involves 4 steps, one of them (step 2) is optional:

1. Import the bank statement2. Post the bank statement3. Match using the imported bank statement

4.

Reconcile

Payment Process

To illustrate these steps we will assume that there are

1. Transactions in the Financial Account in the system that have now cleared through the bankingsystem (i.e., they are showing on the bank statement and need to be marked as cleared in the


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Financial Account).

2. Transactions on the bank statement (for example bank fees) that need to be reflected in theFinancial Account.

3. We will illustrate this process using a Financial Account of type "Bank", as the process is(intentionally) not supported for Financial Accounts of type "Cash".

4. We will use whichever matching algorithm is associates with the Financial Account we select.

The only requirement for Bank Account Reconciliation is for the bank to be able to provide a bankstatement in electronic format. The statement must be entered into Auto-Recon, which then creates amain statement, balance information and of course all entry lines in the statement including chequetransactions. Bank Account Reconciliation then finds the corresponding bank entries in sales/purchaseentries and reconciles them, or creates proposals for reconciliation, if there are multiple options.

Bank Account Reconciliation can also automatically configure proposals for counter-entries in cashreceipt. For example, if any direct payments have been made into accounts, you can find a debit entry, forexample, from the annex number in the account statement's entry text. The system also generatesautomatic proposals in cash receipt, in the case of OCR payments, in which the payment ID is generated inaccordance with Auto-Recon invoices or statement printouts. At the same time, Bank AccountReconciliation can create proposals for entry lines in cash receipt for interest, fees etc, which have beenascribed to the statement by the bank. This is done on the basis of the rules in the form of text strings thatare configured for that purpose in the balancing rules. Finally, one can of course implement a manualbalance of one or more bank entries.

How it WorksReconciliation Process

The reconciliation operation consists of matching entries in different accounts to indicate that they arerelated. Generally reconciliation is used for:

Matching invoice entries to payments, so that invoices are marked as paid and customers do notget payment reminder letters for those entries (reconciliation in a customer account),

Matching deposits and cheque withdrawals with their respective payments,

Matching invoices and credit notes to cancel them out.

Reconciliation must be carried out on a list of accounting entries by an accountant, so that the sum of

credits equals the sum of the debits for the matched entries.

The scanned-in account statement lines should contain 3 reference fields, which are completed accordingto which bank the account statement comes from, and what the sender has attached. The fields are:Personal Reference, Entry Text and Sender Reference. The balance is implemented according to thefollowing algorithm:

Each account statement line is reviewed independently and, if there are several proposals, it will bereflected in the number of balance proposals. One must choose the correct line. First, Bank Account


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Balancing tries to find bank entries that correspond to the account statement lines for direct balance. Theprogram looks for accounted payment entries on the basis of the Sender Reference field. For all paymentsmade via Auto-Recon, it is best to complete the Sender Reference field with the unique UPR number.Completing the field is defined as described above via the Sender Reference code in the bank accountcard's "Payment" tab. The transaction number of the detected payment entry will then be used to find thecorresponding bank entry, which is subsequently marked for balance.

Then Bank Account Balancing tries to find closed debit entries, corresponding to the information in thestatement line. This is executed on the basis of Debit No., Payment ID or Annex No. - and, of course,amount and date - If it finds a closed debit entry, it then finds the corresponding bank entry, which is thenmarked for balance.

It then tries to find balance proposals by searching directly in bank entries on the basis of paymentreference and then with amount and date as search keys.

If it still cannot find a bank entry for the statement entry line, Bank Account Balancing then runs throughthe open debit entries again with Debit No., Payment ID or Annex No. as search key. It does this in orderto find debit entries, which have been paid without yet being registered in Auto-Recon.

For open debit entries discovered on the basis of the latter method, Bank Account Balancing also sets upproposals for the payments in cash receipt ready for accounting.

After accounting, payment will then be made and the corresponding bank entry can balance with the linein the account statement.

Lines that have not yet been balanced correctly can be handled manually with the use of the "Balance"button. If it does not find any bank entry corresponding to the entry from the bank, it is possible to markthe line as "Manual management" and the system can now automatically set up a line in the cash receiptfor further accounting.
https://doc.openerp.com/doc_static/6.1/_images/account_reconcile_auto.png


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Bank Reconciliation Process DescriptionThe bank reconciliation process contains automatic interface transactions as well as user intervention.When cheques are cashed at the bank or deposits are made, the bank sends transaction text files toAUTO-RECON. This information is processed into the AUTO-RECON automatically and this is referred toas an interface. If the transactions from the bank match off with their contra transactions, it will postautomatically according to the transaction processing the rules that are set up by the system controller. Ifthere is a discrepancy and the transaction does not match with a contra transaction, it will post to therelevant exception account and must be cleared to the correct account after the discrepancy has beenresolved.

The person responsible for clearing the Bank Reconciliation or Exceptions must obtain a bank statementfrom the bank and then request Matching reports on the following accounts.

Exception Account (This is a system controlled account to post all unmatched bank reconciliationtransactions. This account must be cleared on a monthly basis and must have a zero balance beforemonth closure or year closure. This account is debited or credited and the Pay Master General (PMG)

account is credited or debited).

Bank Adjustment Account (this account is used to post incorrect debits (debit bank adjustment andcredit the Exception Account) and incorrect credits (debit Exceptions and credit Bank Adjustmentaccount) received from the bank. These transactions will be cleared as soon as a reversal is received. (Fora debit amount debit Exceptions account and credit PMG Adjustment Account. For a credit amount creditException account and debit Bank adjustment account).

Control Account (This account is credited with payments (for example salaries and pensions etc.,) (debitOutstanding payment and credit Control Account) and debited with bank debits received (debit ControlAccount and credit Pay master general Account).

Example Real Case of Using ReconciliationSuppose that you are entering customer order details. You wonder what is outstanding on the customeraccount (that is the list of unpaid invoices and unreconciled payments. Auto-Recon opens a history ofunreconciled accounting entries on screen.


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Unreconciled Accounting Entries

After running the Reconcile Entries wizard, these lines can no longer be selected and will not appearwhen the entries are listed again. If there is a difference between the two entries, Auto-Recon suggestsyou to make an adjustment. This "write-off" is a compensating entry that enables a completereconciliation. You must therefore specify the journal and the account to be used for the write-off.

For example, if you want to reconcile the following entries:

Entries for reconciliation

Date Ref. Description Account Debit Credit

12 May 13 INV23 House Tax 4010 544.50

25 May 13 INV44 Water Tax 2010 100.00

31 May 13 PAY01 Tax Penalty 4010 644.00

On reconciliation, Auto-Recon shows a difference of 0.50. At this stage you have two possibilities:

do not reconcile, and the customer receives a request for 0.50,

reconcile and accept an adjustment of 0.50 that you will take from the P&L account.

Auto-Recon generates the following entry automatically:

Write-off account
https://doc.openerp.com/doc_static/6.1/_images/account_sample2_entries.png


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03 Jun 11 AJ001 Adjustment: profits and losses 4010 0.50

03 Jun 11 AJ001 Adjustment: profits and losses XXX 0.50

The two invoices and the payment will be reconciled in the first adjustment line. The two invoices willthen be automatically marked as paid.


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Implementation Approach

This section explains the high-level strategy that Orbito Asia will be adopting for developing Online AutoReconciliation for Coimbatore corporation bank accounts. Orbito Asia proposes to adapt agile projectManagement methodology for MIS.

Agile development methodology attempts to provide many opportunities to assess the direction of aproject throughout the development lifecycle. This is achieved through regular cadences of work, knownas sprints or iterations, at the end of which teams must present a shippable increment of work. Thus byfocusing on the repetition of abbreviated work cycles as well as the functional product they yield; agilemethodology could be described as iterative and incremental. In an agile paradigm, every aspect ofdevelopment requirements, design, etc. is continually revisited throughout the lifecycle. When ateam stops and re- evaluates the direction of a project every two weeks, theres always time to steer it inanother direction. The results of this inspect -and- adapt approach to development greatly reduce bothdevelopment costs. And because a teams work cycle is limited to two weeks, it gives stakeholdersrecurring opportunities to calibrate releases for success in the real world.


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Solution Approach


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End-User and Ad hoc ReportingGenerating reports is the most important task any data-management product has, presuming secureand valid data maintenance as a basic expectation. OATS products are designed to support report-generation with the tools you or your users are already comfortable with, as well as providing

sophisticated integrated tools. Hundreds of existing reports support most standard reporting, andthere is flexible support for new report generation. Some of the currently supported tools include:

Microsofts Office Suite, including Excel, Access and Word, for many reporting, dataextraction and analysis tasks. By extension, any of the other competing office productivityproducts which are ODBC compliant and capable, will work just as well.

Discoverer, from MySQL., for point-and- click reporting, data mining and whatif analysis. BI reports for point and click report generation, especially where presentation-quality is

important. Ad hoc reports can be developed by IS staff, proficient users, or OATS personnel using any of

these tools, or any other SQL-compatible tool.

Relational Database: MySQLMySQL Enterprise provides the data-management needs for all OATS products, leveraging theadvanced security of RHEL natively. MySQL provides a database environment which supports highreliability, data integrity, open systems accessibility, optimal throughput and high performance.Features such as afterimage and recovery-unit journaling, together with the ability to perform on-line database verifications and backups, work together to guarantee data reliability. Internal featuressuch as primary/foreign keys and relational constraints support data integrity. MySQL systemsaccess is provided by network features, cross-platform integration products and reliance on

industry-standard SQL for query and update access. Multi-area and multi-file physical organization,hashed and sorted data indexes, data compression, physical and logical data placement controls allsupport highly optimized performance and throughput. In compliance with industry-standard client-server application architectural principles, all business rules are coded in stored-SQL modules in theOffender Database or via callbacks. This means the business logic resides on the server. This designenhances OATS's product's modularity, making it straightforward and manageable to makedeployment-specific customizations and enhancements to the product. Changes in business logic ordatabase requirements do not require updates to client-side software.

System Security

We take system security issues very seriously each user account has access that can be customized,providing for every interaction to be mediated, controlled and potentially reportable. All programsand data objects are protected by Access Control Lists (ACLs); this scheme complies with the C-2computer systems security rating specified by the MHA. No elevated or special access permissions orprivileges are required by any user for normal use of the system. Password expirations andmanagement policies can be specified and controlled by administrative staff according to thecustomers approved policies & procedures. All security features are the result of trusted kernelimplementation (again, as required by MHA standards), and are not grafted on by after -market or


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application software provisions. This insures robustness, reliability of the security technology andimplementation, and gives the customer control and flexibility in implementing their existing policiesor implementing new department requirements quickly. Physical network security is compatiblewith current firewall technologies. OATS staff has extensive training and experience in firewall and

protocol-oriented network security issues and technology and monitors new development regularly.OATS has extensive expertise in the realm of computer systems security; we have conductedsystems security trainings and seminars, and have provided computer security consulting servicesfor the Sikkim Department of Commercial Taxes, among others.

Support for Support StaffCentral Services can have integrated maximum of 24-365 support as per client requirement. Thismeans customers and support staff can call at any time for assistance with everything from crisismanagement to routine account questions. Regular user-group meetings provide the opportunity todiscuss general use issues and allow for face to face time with staff, and in-house visits can be

arranged as needed. In-house installations get integrated initial configuration and orientation,several months minimum unlimited phone and in-house support, and the option of extendedsupport. During covered support periods, experienced OATS staff are available at all times forindividualized phone support, and on-site visits are scheduled for integration and available asneeded after initial adoption. In short, OATS places a premium on supporting our clients, andfocuses on empowering IT and IS staff with transparent technical backing. You'll never get dedicatedsupport personnel with us. You talk to someone who helped build and install you r system and ispersonally invested in your satisfaction.


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Section II Company Profile


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About Orbito AsiaOrbitoasia Technology Solutions is an Information Technology services, solutions and IT staffingsolutions provider serving businesses globally, Headquartered in the Coimbatore, India. Orbitoasia ispart of 500 Cr Megala Group of Companies. Orbitoasia is inspired to build the Next Generation IT

Services & Solutions Company through Differentiated & Superior Customer Experience . We arededicated to the success of our customers. Orbitoasia has sustained an impressive growth rate inboth capability and profitability and is now positioned to be one of the major contributors in varioussectors such as, Pharmaceutical & Life Sciences, Transportation, Media, Banking and Financialservices, Insurance, Textile, Manufacturing, Retail, Utilities and others. At Orbitoasia, we arecontinually undergoing a transformation and reorientation in response to the rapidly evolving needsof our clients. Orbitoasia has in-depth experience of IT Services complemented with technicalexcellence and quality, to generate IT solutions for today and tomorrow. Orbitoasia helps to achievereal business results that allow you to transform, and not just maintain, your operations. Our ITservices, business solutions, and outsourcing bring you a level of certainty that sets Orbitoasia apart

from competitors. Youll experience requirements that are met on -time, within budget, and withhigh quality; greater efficiency and responsiveness to your business; and the ability to shiftinvestment to strategic initiatives rather than tactical functions. Our Process compliance to ISO9001:2008 and CMMi L3 will help our customers to get the value addition to their projects. InOrbitoasia we transform core functionalities of corporate with greater efficiency, lower cost andsimpler approach. Our on-site / off-shore model with our unique turnaround time guide us to theglobal platform with conviction and transformation. Orbitoasia reaches across a broad spectrum,including Mobility Solutions, Big Data Solutions, Cloud Solutions and Testing. The solutions portfolioincludes Consulting, Application Development & Management Infrastructure Managed Services, and

Remote Infrastructure Management.


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1. Client ReferencesProjects:

AppIB

URL: http://www.appib.com/

iCallDialer

URL: http://www.icalldialer.com/
http://www.appib.com/http://www.appib.com/http://www.appib.com/http://www.icalldialer.com/http://www.icalldialer.com/http://www.icalldialer.com/http://www.icalldialer.com/http://www.appib.com/


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Mimo

URL: http://www.mymimoapp.com/
http://www.mymimoapp.com/http://www.mymimoapp.com/http://www.mymimoapp.com/http://www.mymimoapp.com/


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Emitac

URL: http://www.emitac-ees.ae/
http://www.emitac-ees.ae/http://www.emitac-ees.ae/http://www.emitac-ees.ae/http://www.emitac-ees.ae/


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Allied health Care

URL: http://www.silcock.com.au/
http://www.silcock.com.au/http://www.silcock.com.au/http://www.silcock.com.au/http://www.silcock.com.au/


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Section III Financial Proposal


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S No

DESCRIPTIONManpower, Design and Development, Consultancy,Installation and delivery.

No Of PersonMonths Required

Price (Rs)

1 Auto Reconciliation Module with basic reports(15Nos) 12 9,00,000

2 Integration with Bank Account for municipalcorporation services (3 templates of bankstatement + fixed services)

3 2,25,000

3 Maintenance & Support/Annum 12 9,00,000

4

Additional Services (if Required)

New Bank Statement formats (Services) 1 75,000

5 Business Analytics and Reporting for BankReconciliation.

10 6,00,000

Estimated Price for Development 11,25,000

(Rs. Eleven Lacs and Twenty Five Thousand only)

Estimated Price for Maintenance

(Rs. Nine Lacs Only)

9,00,000

M1

M2

Terms and Conditions.

Payment Milestone:

Mobilization fund along with firm Purchaseorder or work order.

Release of Auto-Recon Module with oneTemplate for Bank Account StatementReconciliation

10%

50%

M3 Additional of 2 Template for Bank AccountStatement with Basic Reporting Modules (35Nos)

30%


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Orbito Asia Technology Solutions 97877 97877 Near Kidney center, Puliyakulam Road, [email protected] - 641025, Tamilnadu, India.

bit i

M4 Final UAT 10%

Maintenance Phase:

Payment Paid on Monthly basis.

Taxes:

All applicable taxes extra.

cbe corp auto recon proposal (1)

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