MIDLANDS STATE UNIVERSITY
Name Of Author Chapanda Kudakwashe Gracious
Registration No. R0645087
Degree Programme BCom (Hons) Business Management
Title A Work Related Learning Report
Period Of Attachment November 2008-August 2009
Placement Company The Wattle Company, Mutare
Academic supervisor Mr Mafuka
This report has been submitted to the Midlands State University in
partial fulfilment of the requirements of Bachelor Of Commerce
(Hons) Business Management Degree
Acknowledgements
My gratitude goes to the Midlands State University academic staff that has imparted their vast knowledge and has so much assisted me during my industrial attachment. It is through their valued support that I would be able to get my attachment and enjoy it. Many heartfelt thanks for their support.
Many thanks go to the management and the rest of the staff at Wattle Company for their unwavering support and for giving me a chance to be part of the Wattle family. Worth mentioning is the invaluable support and guidance that I constantly got throughout my industrial attachment from the operations and manufacturing team. I also want to extent my gratitude to the accounting team. Special thanks go to Mr Masvore (finance manager), Mr I Tahwa (Operations Accountant), Mr Mukomberanwa G (Accounting officer), Mr Mafulela T (Accounting officer), Mr Dube T (creditor’s clerk), Mr Ndekwere C, Mr Madzongwe E, and all the accounts team members for their professional guidance, supervision and for all the support and ideas that we shared during the course of my industrial attachment. I owe the successful compilation of this report to all these people who were constantly beside me, cheering me on and supporting me all the way during my fruitful year at Wattle Zimbabwe.
I would also like to extent my heartfelt gratitude to my family members for their invaluable support (moral and otherwise) throughout my attachment. I truly thank the Lord Almighty for the opportunity of a memorable fruitful year at Wattle Zimbabwe. God bless you all.
The Business Management Department of Midlands State University introduced the attachment programme in its learning curriculum so as to give students a chance to combine theoretical knowledge with practical skills in the real working environment. This move requires that a student go for industrial attachment in his/her chosen field of profession for a period of at least 8 months. At the end of the attachment programme, the student is expected to compile a report that incorporates work experience gained linking it to the theoretical knowledge. The following are the objectives of industrial attachment:
To enable students to marry theory to practice in real world business situations that often involves decision-making, functional management, and the Accounting function.
To make students develop realistic expectations in respect to the real world of work, playing the role of being an employee and experience what it takes to work within a generally structured environment in authority and being held responsible for duties performed
To afford students to test the theoretical tools learned in the first two years of the programme with the realities of the operations of Accounting systems and running of organizations in the economy.
To expose the student to the behaviour of organizations both in the internal and external environments and encourage them to be productive whilst developing future managers.
To afford the student the opportunity to develop hands-on experience in the world of work and its intricacies, hence making the student employable and become fully productive immediately after arriving at the work place.
To expose the students to the structures, operations, and integration of different functional areas such as finance, marketing, research and development. Purchasing etc
To seek industry evaluation of our degree programs in terms of relevance to industry and commerce.
From the above mentioned objectives it is therefore necessary for one to compile a report that may act as a benchmark to see if the objectives of industrial attachment are being achieved.
Abstract
This report summarizes the author’s real-life experiences in a working environment with real operational structures that he went through at Wattle Company Private Ltd. The duration of the attachment was twelve months, which were spent in the finance and control department, a service department to the firm. It is in line with Bachelor of Commerce Business Management Honors Degree that a report be compiled that summarizes the relation of practical experience gained to academic education. Therefore, this report is feedback to the Midlands State University.
The author was attached in the accounts department, which is made up of: 1. Management Accounting
2. Financial Accounting 3. Cost Accounting
Data was gathered through carrying out specific tasks, sharing ideas, observation and experimental work. The main goal behind this report is to give the conceptual view of the department and how it fits in the overall performance of the firm. It is also an analysis, evaluation and assessment of whether the department is complying with the recommended accounting practices. On the other hand it is there to summarize the extensive work experience that he was exposed to during his stay at Wattle Company and allows the reader to get the real feeling of how things happen in the accounts department at Wattle Company.
The intention of this report is give a brief background of the industrial attachment programme as well as to give a report of the host company, its history, core business, present operations and future business prospects. After the brief background, it will then move on to main findings, recommendations and conclusions.
Chapter one
Introduction to the Company 8
1.1 Background of the Wattle Company 8
1.2 Organisational Structure 9
1.3 The Wattle Company’s products and services 12
1.4 the Wattle Company’s corporate culture 17
1.5 The Wattle Company and social responsibility 18
1.6 Nature of industry 20
1.7 Expectations and industrial reality 22
Conclusion
23Chapter two
Work Related Learning assignments 24
2.1 Accounts Department 24
2.2 Stores Department 30
2.3 Relevance of theory to practice 32
2.4 Recommendations for further learning needs 37
Conclusion 38
Chapter three
Personal and Professional Development 39
3.1 New skills acquired 39
3.2 Personal Development 42
3.3 Strengths and Weaknesses 43
3.4 An assessment of Work Related Learning 45
Challenges and recommendations 47
4.1 Challenges faced during attachment period 47
4.2 Suggestions to improve industrial attachment 50
Conclusion 51
Chapter five
Conclusions 52
5.1 Recommendations to Midlands States University 52
5.2 Recommendations to Wattle Company 53
Conclusion
56Re-entry
57GRN-Goods Received note SIV-Stocks Issue Voucher SR- Stocks Transfer Return SMB-Small to Medium Enterprise ERP-Enterprise Resource Planning RT-Stock Transfer Request
JV- Journal Voucher
HCC-Human Capital Centre MD-Managing Director
GMF- General Manager Finance WRL-Work Related Learning
Chapter one
This chapter introduces The Wattle Company and its background. The Company’s vision, mission and goals are explored. “One’s values and principles guide his or her actions and way of life.” This remains true for large organizations like The Wattle Company. At the end of this chapter, one should be able to match the company’s business operations with its vision, goals, values, its sense of social responsibility and what it hopes to achieve.
1.1 Background of the Wattle Company
The Wattle Company was founded in 1945 as The Rhodesian Wattle Company by the Forestal Lands, Timber and Railways Company of England (“The Forestal Company”) with the purpose of
developing a wattle extract industry in Southern Rhodesia. Baron Emile Beaumont d'Erlanger was the founder and financier of the Forestal Land, Timber, and Railways Company that developed the Wattle extract industries in South Africa, Kenya, and Zimbabwe.
Land was purchased in the eastern districts and the development of plantations commenced. Two wattle extract factories were commissioned in the mid-fifties at Nyanga and Chimanimani.
Subsequent changes in the demand for wattle extract in the world leather industry arising from the development of non-leather shoe materials, as well as the development of synthetic tanning agents, compelled the Company to rationalise its wattle holdings and seek diversification into other
activities. This diversity is the reason for continuing growth and vigour of the Company.
Today, The Wattle Company Limited is a vertically integrated forest products and Agricultural company with a superior and diverse range of export products from its 43000 hectares of land situated in the eastern highlands of Zimbabwe. In addition to wattle extract, the Company is a leading producer of pine-sawn timber, eucalyptus pole products, Arabica coffee and charcoal. The Company services both local and export markets.
The company services both local and export markets. The Wattle Company owns five estates/tree plantations namely Chipinge, Chimanimani, Nyanga, Vumba and Dunsinane (in Penhalonga).
The Managing Director is based at the head office and is responsible for daily activities of the whole company. The Managing Director reports to the board of directors. Five executives report to the Managing Director and these executives have different roles and tasks.
The Financial Director heads the finance department and is responsible for all financial matters of the company. He deals mainly with the accounts department. The Financial Director reports to the Managing Director. Below the financial directors are three accountants, accountant wattle, and accountant head office and accountant pine division. These accountants deal with the accounts of their respective divisions. They all report to the General Manager Finance. Below these accountants are accounts clerks who are responsible for the accounts of the department they fall under. All accounts clerks report to their respective accountant. They work together to produce financial statements periodically.
Operations Director is responsible for all operations up to the point when goods are sold. Each division has a manager who is responsible for all operations. Production managers, foresters, rangers and factory hand works together under these divisional mangers for the production of timber in different estates. Factory hand works do the general work like cutting poles and some of them report to foresters. Each person works towards the production of timber for the department he works for.
The Human Resources Executive deals with labour related activities. He is responsible for recruiting and retrenching employees and salary related issues. They also keep confidential information like salary increments, promotions and records of employees of the company. He is based at the head office since he deals with labour related issues for the whole company. Salaries administration and wages clerk are under the Human Resources Executive and they deal with payment of salaries and wages respectively. Safety, Health and Environment manager deals with safety at work and health issues.
Supplies Manager deals with the purchasing of the whole company and he is based at the head office. The supplies manager purchases all materials and goods required by the company after different managers of the departments requesting them authorize them. He will first have quotations from different suppliers and compare prices and quality and see if the goods to be purchased are of use to the requesting department.
Marketing and Sales Manager heads the marketing department. This department is responsible for marketing and selling products produced. All invoices and orders are processed in this department. It also deals with transportation of sales both local and exports. This department produces useful information for report writing.
Organogram
C O . S E C
A C T S . C L E R K S
A C C O U N T A N T
W A T T L E
A C T S . C L E R K S
A C C O U N T A N T
H E A D O F F IC E
A C T S . C L E R K S
A C C O U N T A N T
P IN E
G M F IN
F IN D IR E C T O R
F A C . H A N D S
P R O D . S U P
P R O D . M G R
S A W M IL L S M G R
F O R . H A N D S
R A N G E R S
F O R R E S T E R S
E S T A T E S M G R
D IV M G R
P IN E
F A C . H A N D S
P R O D . S U P .
P R O D . M G R
F A C T O R Y M G R
D IV M G R
W A T T L E
F O R . H A N D S
R A N G E R S
F O R R E S T E R S
E S T A T E S M G R
O P S M G R
V U M B A
O P S D IR E C T O R
M E S S /D R IV E R S
W A G E S C L E R K
S A L . A D M IN
H R A D M IN .
S H E O F F .
S H E M G R
H R E X E C U T IV E
S U P . M G R
C L E R K S
M A R K E T . O F F
C L E R K S
S H IP O F F IC E R
S A L E S M G R
M A N A G IN G D IR E C T O R
This organogram was carefully designed to aid effective management within Wattle Company. Decision-making is decentralised to all the divisions present although overall feedback and reports on all operational decisions made on the lower levels of the chain of commands are brought to top-level management. In this way The Wattle Company remains successful as workers at the estates and factories never experience drawbacks and delays caused by waiting for important decisions to be made at the Head Office and then passed back to them. Production continues to flow even in times of crisis as estate managers and divisional managers are on site to play Henry Fayol’s managerial roles; planning, controlling, leading and organizing. The chain of command is fairly short such that
communication is fast and chances of information distortion are fairly low.
1.3 The Wattle Company’s Products and Services
The Wattle Company is divided into three main divisions namely Nyanga Pine Division which encompasses pine plantations and saw milling, Wattle Division which centres its operations on the production of wattle extract and charcoal and Eucalyptus Division which is specifically for treated poles and saw logs.
1.3.1 Products
I. Charcoa l
Charcoal is produced as a by-product from wattle timber in brick and metal kilns. The wattle tree is an exotic hardwood species and is therefore particularly well suited to the manufacture of charcoal of a high calorific value. The company has 18 kilns at Chimanimani, 6 kilns in Chipinge and 2 more kilns located in Vumba that produce eucalyptus charcoal. Charcoal is sold to industrial consumers for industrial purposes e.g. smelting of silica for the manufacture of silicon .It is also sold under the brand Vesta Barbeque Charcoal. This charcoal is meant for domestic use like in the heating barbeques.
The product is marketed locally through poultry farmers and companies like Quest. Internationally the chief customer of charcoal is Silicon Smelters in Petersburg, South Africa.
The quality of charcoal is based upon density, weight of unit of packaging, and the timber used for its production. There was once the introduction of pine charcoal due to some fires, which erupted .The pine charcoal, was however not marketed extensively due to the reason that it is soft.
How Charcoal is produced
Dry logs are brought in from the fields and are fed and stacked into charcoal kilns (clay or steel). The logs are fired up in the kilns and combustion takes place, in an oxygen-starved environment. The process is monitored and controlled so that the charcoal does not burn to ashes. Charcoal undergoes a cooling process (air vents are closed to prevent further combustion). The final product is packed into standard 30kg bags ready for selling. The whole production process from stacking logs into the kilns to the packaging takes an average of a week.
II. Pine Sawn Timber
The Wattle Company is the 3rd largest producer of pine-sawn timber in Zimbabwe. It produces
approximately 20% of Zimbabwe's total annual timber output. Pine plantations are located at Nyanga and Dunsinane Estates approximately 65kms and 35kms north of Mutare respectively. Logs from these plantations are supplied to the Nyanga estates Our Pine Sawn timber is marketed locally and regionally under the brand name Nyanga Pine. Local markets include companies like P.G, T.S Timber, J.W Johnson and Halsteds Brothers. The quality of the pine timber is based upon the dimensional accuracy, moisture content, appearance and structural load bearing capacity.
The sawn timber is split roughly 76% industrial grade, 20% structural grade and the 4% appearance grade. The mill produces timber in thickness of 19.25mm; 3850mm and 76mm.The widths range from 76; 114; 152 and 228mm while lengths produced range from 900mm and 6.6metres .In addition to supplying timber the company is able to finger-joint to customers' specifications.
Customers are divided into two main categories. These are structural sawn timber customers such as builder' merchants and roof trusses manufacturers and the industrial sawn timber customers such as furniture and door manufacturers and pallet market.
III. Eucalyptus
Eucalyptus plantations are located at Vumba Estates 30km South East of Mutare. It is a division comprising of 1900 hectares of Eucalyptus Grandis and Eucalyptus Cloenzia. The eucalyptus division has restructured in the past, with the exit from treated poles and the consequential 5-8 year conversion of the estates into a saw log regime. Raw logs, pulpwood, and saw logs are being sold from the estates. Poles from the estates are treated with creosote preservative at the Wattle Company Creosote Impregnation Plant in Mutare.
In order to ensure maximum utilization of resources the Vumba estate has 2 charcoal kilns that burn waste cut-offs from Eucalyptus Cloeziana to make charcoal. The bulk of Wattle Company's products are exported in order for the company to gain revenue. Most of the company's customers are foreign based. This is due to the reason that it has a contract to supply its products to these customers through the company's agencies.
As the resource base matures, it is the company’s intention to establish a state-of-the-art hardwood sawmill and kilns on the estate to enable us to produce eucalyptus-sawn board as the demand for exotic hardwoods worldwide increases.
IV. Wattle extract
The Wattle Company is the only producer of wattle extract in Zimbabwe and also the country's principal producer of charcoal in Zimbabwe and one of the eight extracts producer's worldwide .It supplies over 4500tonnes to the world market.
A total of 10690 hectares of wattle plantations are located predominantly in Chimanimani and Chipinge districts approximately 160 and 120 km south of Mutare respectively.
Black wattle (Acacia mearnsii) is grown on a 9-10 year rotation. The wattle extract is produced at Silver-stream Extract Factory that is located at Chimanimani Estates. After it has been produced it is marketed under the "Rhomosa " brand name through the company's agents, Forestal Mimosa (U.K) Limited. Exports are shipped in containers from stocks held at the port of Beira.
A sustainable 6000tonnes of Wattle Mimosa extract is produced annually at our Silver streams Factory in both solid and powder (Ordinary Powder and Green Special Powder) form. The principal properties of wattle extract are high tanning content, its solubility in water and consistent high quality. These features make it a highly suitable and preferred vegetable leather-tanning agent.
Wattle extract is used for tanning leather, purifying boilers and as an adhesive additive in paints and glue. The wattle extract is marketed in India and Pakistan (far East region) and the Middle East. Demand is a derived demand based upon factors affecting demand for leather, mainly fashion trend.
The wattle extract is quality based on moisture content and appearance e.g. colors. Due to the high quality of wattle extract produce the company has not experienced a single product return in over 60 years.
How Wattle Extract is produced
When mature, the wattle trees are felled and stripped of their bark, which is taken to the extract plant at Silverstream. The bark is finely chopped and pushed through a series of autoclaves. Tannin is extracted using heat and pressure. The thin tannin liquor is thickened until it is of a consistency that solidifies on cooling.
1.3.2 Services
I. Human Capital Centre
It is responsible for recruiting all the company’s employees both at the estates and the Head Office. This department deals with all the labour-related issues that arise in the company including retrenchment and salary/wages negotiation issues. This is a confidential department since any leak in confidential information can result in a legal action being taken against the company if charges are pressed.
II. Security and Audit
This department inspects or assesses to see if there are any potholes as far as business procedures are concerned. This department is also responsible for in-house investigations in cases of illegal practices occurring within the company like theft of company assets and fraudulent practices of any other sort.
III. Accounting
The department’s functions include management and financial accounting, credit controlling and debtors payments. Each division has its accountants, accounting officers and accounts clerks who are dedicated to their respective divisions.
It is responsible for purchasing all the materials, which are deemed necessary for use by any of the other departments. This department acquires the requested equipment and materials locally, regionally and at times even internationally.
All these like different parts of a body come together to form a functional body. One department can hardly do without the other just as none of the department is more important than the other. Each has its own way of adding value to the company within its specific functions. Heads of Departments meet occasionally to keep in touch with the company’s goals and remind each other of the roles to be played by their departments as a contribution to the success of the company.
1.4 The Wattle Company’s Corporate Culture
I. Professionalism
In all its operations it believes in professionalism, integrity, discipline and honesty. Its actions, at all times will be ethical, legal and fair. The company’s principles remain fundamental in all it does and will be constantly applied.
II. Respect for the individual
The Wattle Company believes in and has respect for the individual, be he or she an employee, a customer, a shareholder or any other stakeholder.
III. Teamwork
The company believes that its goals will only be achieved through teamwork. “WE” and not “I” will forever guide its actions.
IV. Quality
The company’s success and dominance in the industry has resulted from the quality of its products and services through efficiency. It is committed to excellence of quality and services.
V. Continuous Improvement
It believes in the principle of doing better and improving what it is already doing, and with this it embraces quality management, technology advancement and facility improvement. It encourages ingenuity and promotes preservation of the environment.
VI. Good Corporate Citizen
The Wattle Company is fully aware of its responsibilities to participate and promote
development in this nation. It is also fully cognizant of its responsibilities to society through its contribution, sponsorship and caring for the environment.
All in all, Wattle Company has managed to outdo the harsh economic environment and other limiting factors by continually living and practicing its set values. The values are not just documented
statements can be noted as one moves around the company.
1.5 The Wattle Company and Society Connection
Social responsibility refers to the idea that businesses should not function amorally but instead should contribute to the welfare of their communities, hence the need to fund innovative ideas and improve lives around the business’ society. The Wattle Company is an active player in the communities in which it operates. Its community activities include sports and recreation, education, health and safety and community relations.
I. Sport and recreation
The company offers sporting facilities for a number of disciplines such as football, netball, tennis and squash in all estates. The Wattle Company is the proud sponsor of the Premier League side, Monomutapa Football Club that has emerged the pride of Mutare and the whole of the province of Manicaland
II. Education
The Wattle Company runs seven primary schools on all its estates to cater for the learning of children belonging to its workers. The total enrolment is over 1,500 children and 40 teachers are employed. The Government of Zimbabwe pays the salaries to the teachers as well as per-capita grants towards the costs of running the schools. The Wattle Company provides and maintains the schools’ infrastructure and contributes additional development funds when required.
The Wattle Company has a full service Occupational Health and Safety department. Health and Safety in the workplace is a major priority. Annual Safety competitions are held to ensure in-house safety practices
IV. Community relations
The Wattle Company voluntarily ceded 3,200ha of land to the Government of Zimbabwe for the purposes of resettling landless people. It has also sponsored the education of a number of less privileged children over the years and has retained them for employment in their relevant departments after completion of their studies.
The Wattle Company has significantly played its part in terms of welfare of its workers and the community. However more can be done for the society as the economy gets worse and worse each day. Families that have lost their heads to HIV/AIDS within the communities could be assisted regularly with food aid and school fees for the children that are in school. Old people’s homes and centres for the disabled would also be more than glad to receive donations from companies as big as The Wattle Company.
1.6 Nature of industry
The Zimbabwean primary wood processing industry is an oligopoly dominated by five players namely: Wattle Company, Border Timbers, Allied Timbers, Mutare Board and Paper Mills, and Hunyani. Each of these companies has its own timber processing facilities and rows timber for own use.
Competitor analysis
Forest Company of Zimbabwe continues to grow into an empire owning about 40% of the
plantations with mature trees. They are trying to convert their business concept from a 90% local to 60% export and have incorporated EC Meikle.
Forest Company of Zimbabwe, currently the largest producer is both a retailer and wholesaler who is slowly moving into hardware and has opened recently in Botswana. It locally operates eight outlets and two truss plants using a flanking strategy.
Border Timbers is now the second biggest player in the industry but of late experiencing problems of diminishing resources.
Wattle Company, Forest Company of Zimbabwe, and Border Timbers produce about 89% of timber in Zimbabwe and 1% is from Bush Millers.
Threat posed by forest fires locally affects output in terms of quality. Recent fires in South Africa had weakened output prices.
Only Wattle Company and Boarder Timbers are Forest Standard Commission (FCZ) certified giving Forest Company of Zimbabwe a disadvantage on the international market.
Corporate SWOT analysis
Strengths
Forestry Standard Commission (FSC) certification assists with marketability of pine products particularly in the export market. It is also used as a forestry standard benchmark.
Since the industry is an oligopoly there are strong barriers to entry thereby protecting profitability in the industry.
The good reputation of the company with the outside world has made the company to easily access borrowing.
The company’s staff is competent, loyal and experienced and with this the company has an advantage over its competitors.
Weaknesses
Gaps in plantation age class resulted in high fluctuation in timber supply. The management should monitor production target annually to minimise the effect of gaps.
The Wattle Company has one export market destination that is South Africa; this means any surge in economic activities will affect company profits.
The company’s failure to recognise staff training and development might result in lack of competence in the future
Wattle plantations were over harvested last years and this may affect supply of wattle in the future. The management is monitoring and updating harvesting plans
Opportunities
Initiative by government to promote corporate farming provides diversification opportunities All non-millable baboon and fire-damaged timber can be converted to charcoal.
There is an expansion of plantation resources within Zimbabwe and neighbouring countries like Mozambique. The company is pursuing arrangements with Chipinge local authority at ST Kelvin
Aging harvesting equipment. The company is implementing preventive maintenance programs such as replacing obsolete equipment
Wild plantation fires. The company has implemented in-house training on fire control
Pests such as baboons, myriad and white grubs are a threat to the growth of wattle. There is a continued aerial spraying programs as well as shooting control
1.7 Expectations and industrial reality
Expectations
As a student I was expecting that the supervisor would be sitting at my side teaching what to do. Apart from that I expected to be taken as just a student who would contribute insignificantly to the organisation.
Further more I thought, though I was just a student my contributions would be needed in some situations.
I expected to apply the rich theoretical approach I had acquired for two years at college with the knowledge from different modules.
Expectations versus reality
The working environment was not hostile at all. Particularly colleagues in the accounts department were willing to help any time the student had a question on some procedures. The supervisor was so helpful to the extent of making sure his welfare at home was superb.
Besides that, the team helped the student to realize that he was an important figure who was able to contribute something significant to the organisation. The supervisor would leave him to accomplish certain tasks without the aid of anyone. Eventually when he had finished these tasks and send them to the executives he realized he was at Wattle Company for a significant purpose.
However, on decision-making he had no chance to contribute anything. This was mainly at
organizational level. He only contributed with decisions on smaller issues, which were of concern to his duties.
Though some of the theory learnt at college, could not match precisely with the practical applications, the student noticed a common approach that was particularly emphasized by the supervisor. To create effective communication, he was supposed to report to the supervisor on tasks he had to do.
Conclusion
The background, mission and values have at the point been explored in great detail. Wattle Company takes it upon itself to do its best in business and in its social responsibility endeavours in its day-to-day operations. Chapter two has detailed information of the student’s work related learning
Chapter two
Work related learning assignments
This chapter highlights the relevant departments to which the student was assigned. It provides a brief description of the assignments performed and their relevance to the degree programme. The Wattle Company finance department is comprised essentially of the purchasing and accounting functions. All these divisions rely on the head office for their information processing needs. As part of the orientation process, attachment students are taken on a tour of the company’s divisions.
2.1 Accounts department
There are five sections in the accounts department, which are stocks, cash and bank, creditors, debtors and management section.
I. Creditors section
The creditors section processes creditors invoices into the system. The main processes involved include:
• Costing of goods received note from the stocks section with invoices received from suppliers. Quoted prices on orders are compared with invoices
• Invoice processing: on receipt of invoices, they are matched with the purchase order and checks whether the quantities and quoted prices on the purchase orders agree with the invoices then batch for input. The invoices are then processed.
• Batching of goods received notes (GRN)
• On receipt of GRN, creditors batch, cost and then process them
• Payment of trade creditors and sundry creditors
• Creditors reconciliation
• Follow-ups with stores for incomplete documentation and outstanding queries
• Capturing creditors’ invoices, cheque requisitions, credit notes and journals
• Withholding tax payments
• Preparing withholding tax certificates for suppliers and distribution
• Railage recoverable analysis
• Matching invoices with goods received vouchers
• Checking documents for price variances
• Receiving import invoices for input
• Foreign creditors reconciliation
• Preparing and printing month-end reports that are purchase ledger, credit note daybook, cash discount daybook, ageing analysis report and check if agreeing
• Age debt analysis
• Creditors divisionalisation
• Nominal ledger analysis
• Statutory payment requirements, for example, withholding tax and vat
• Creditors input
• Creditors account maintenance
II. Cash and bank
The following duties were performed:
• Checking bank and cash input before processing
• Input all cash receipts and journals
• Travel debtors claims and clearance analysis
• Processing foreign payments requisitions
• Maintaining all bank accounts in preparation of bank reconciliation
• Stale cheques analysis
• Input tax schedules local and imports
• Reviewing bank, creditors and petty cash reconciliation
• Cash and bank account reconciliation
• Processing foreign receipts and reallocate to respective foreign current accounts (FCAs)
III. Debtors section
The following duties were performed:
• Inputting debtors invoices and cash receipts. Invoices received monthly will be processed together with cash receipts and this will reduce our debtors in the system
• Ageing analysis. Debtors will be ranged according to the number of days they have been debtors. Those who have been debtors for a long time will be declared bad debts and will be included in the final accounts
• Debtors control to subsystem reconciliation. Value of debtors in the subsystem and nominal must be the same
• Sales volume reconciliation per invoices processed. Total volume of output sold will be reconciled against receipts received from sales
• Process debtors transfer journals
• Foreign debtors revaluation. Due to inflation, amount owed to us by our foreign debtors will be revalued so that they reflect a true and fair value of money owed to us
IV Management section
The following were the duties performed:
• Input vehicle and chainsaw returns and wage analysis
• Job costing and nominal ledger maintenance
• Job costing reconciliations. Jobs processed during the month will be checked against nominal ledger
• Preparing notes to the financial statements. Every figure on the final accounts should have notes explaining how that figure was calculated
• Assisting in the preparation of the management accounts that is from trial the balance to the balance sheet.
• Vehicle and chainsaw costs recovery. Costs incurred by the chainsaws and vehicles will be calculated and apportioned to various jobs done during the month
• General estate expenses reallocation to the estates that incurred them and posting schedules
• Plantation reconciliation that is nominal to the subsystem. Plantation nominal code will be compared with plantation job code and they must be the same
• Transport reconciliation to different estates. Nominal code for vehicles will be compared with job code and they must be the same
• Capital reconciliation that is nominal to subsystem. This is for fixed assets where job codes for fixed assets are compared with nominal codes and must be the same as well
• Variance analysis. This involves calculating costs that are directly linked to the plantation that is direct costs. The costs will then be apportioned basing on wages of the estate
• Volume of pine, charcoal, wattle and eucalyptus reconciliations. Sales figure derived from the reconciliation will be used in the preparation of the trading account
• Stock section
This is a department that processes most documents from the stores department. Following duties were performed:
• Processing goods received notes from the stores department in the stock control routine. This updates the stock file by increasing items in stock, open purchase order file by reducing the number of open orders and the nominal ledger by debiting stock suspense account and crediting stock accrual account with the quoted value of goods received
• Printing and checking stocks input audit trails to verify accuracy of goods received input
• Raising cost adjustment and quantity adjustment to correct any errors. Cost adjustment will be correcting the average cost to the figure it was before processing. Quantity adjustment will be adjusting price if wrong price was processed. If there is no mistake, the purchase order, goods received note, delivery note are then send to the creditors clerk pending receipt of invoices
• Issuing of stock. We processed stock issue vouchers where all issues of stock are recorded. These stock issue vouchers are coded, checked and then batched before processing.
Processing the stock issue vouchers updates the stock file by reducing items in stock and the nominal ledger file by debiting expense allocation and crediting stock control account by the value of stock issued
• Raising a stores return voucher if wrong goods are issued to return goods in stock. Goods are transferred among different depots using a request to transfer document where the issuing depot, receiving depot, quantity transferred and description of the goods are detailed. It is processed at the stock section
VI Business information system section
I was involved in the introduction of the new accounting system (ERP) to the accounts department.
The drawbacks of the SMB:
• Because of high inflation figures the SMB could not coup up with changes in the economy and hence it would drop figures and distort the accounts
• The SMB could not process at real time, there was need to wait to process input until the end of the period, and hence the accounts will be behind by one month in terms of the accounts, it did not allow to process when things happen, and it could not produce the trial balance it has to be done manual and hence increase in overheads because many people needed to be employed.
• The SMB was not dynamic to changes in the system thus the changes in inflation and revaluations. Revaluation had to be done manually and it took 2or more weeks to revalue the whole system.
The introduced system ERP-Enterprise Resource Planning is a system that integrates or at least attempts to integrate all data and processes of an organization into a unified system. This meant that the accounting system, the marketing orders system and all invoicing processes were to be swallowed up in one system called ERP.
Advantages of ERP
• The ERP accommodates more than 50 people at one time log on, and this will be of benefit if all the estates will be online and input as things happen
• The accounts can be run any time and the position of the firm can be seen at the click of a button.
• The system is dynamic and can easily adapt to changes in the economy, thus it can also report in multi currencies.
• It can accommodate huge or big figures and it’s easy to revalue figures at the click of a button the whole system would be revalued.
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2.2 Stores department
Rotation of duties carried on and moved to the stores department where buying and issuing of stocks is done. Below are the movement of documents and different tasks performed.
Buying at Wattle Company is centralized. User departments raise RS (requisition to purchase non-stock items). These RS details the quantity, unit and description of items to be purchased. An authorized person indicates the account to which the expense should be charged and sign them.
Requisition to purchase stock items (RP) are raised by the stores administrator when stock levels reach the reorder levels. These RP details the quantity, unit and description of the items to be purchased. An authorized person signs them and indicates the stores allocation to which the cost should be charged. RP and RS documents are then send to the buyer by the stores department.
On receipt of an RP and RS, the buyer raises four purchase orders. The top copy goes to the supplier, the second copy to the record supervisor, third copy goes to the department that requested for the purchase and the last copy is a fast copy. The record supervisor and his staff batches the purchase orders and put them in purchase order routine. They are then dispatched to the accounts department where they are processed. The computer updates the open purchase order file by increasing the number of open orders and the stock file by increasing the number of items in order. Orders are then send to the receiving department were they are filed pending receipt of goods.
Suppliers on receipt of order will send goods to the buying company. When goods are received, a goods received note is raised in the receiving bay. The purchase order and delivery note are signed in this bay to acknowledge receipt. The GRN, purchase order, delivery note and the goods are passed on to the dispatches bay. The dispatches bay then send goods to the requesting department
accompanied by an advice of movement, while the goods received note, order, quotation are passed to the accounts department for processing.
2.3 Relevance of theory to practice
Raw data must be applied in the work environment and put into practice. During the attachment period, some of the concepts, knowledge, skills and attitudes acquired from MSU were applied to the working environment. The following are the concepts applied:
I. General disclosure
The group comprises of The Wattle Company Limited and its subsidiary Nyanga Pine (Pvt) Limited, both of which are incorporated in Zimbabwe. The main business of the group consists of commercial forestry. The principal accounting policies of the group for example accounting convention, revaluation of fixed assets etc have been consistently followed in all material respects.
II. Principles of management
The author noted the clear hierarchy of control and chain of command in the organisation. Leadership functions and roles as well as the management style were noticeable as one had a theoretical knowledge to this.
III. Business statistics and corporate finance
Borrowings and investments were regular activities in the firm. Matching borrowings to investments taking note of interest rates and duration could have been a demanding activity without a sound theoretical background. Calculation of future values and interest on Productive Sector loans and short-term investments required a support statistical knowledge thus applying the concepts learnt from school.
IV. Economics
So many factors affected the firm at a macro and micro scale in its operations. The reactions to this were observed and the author could share ideas on how to conquer some of the problems from the theories learnt in school. The major areas were escalating borrowing interest rates, rapid inflation, and customer’s disposable income.
The consolidated financial statements incorporate the financial statements of the company and its subsidiary. The premium arising of the acquisition of the subsidiary is shown as cost of control and is deducted from non-distributable reserves.
VI. Revaluation of fixed assets
Independent values undertake revaluations of freehold property annually and where the current carrying value differs materially from the revalued amount the revaluation is reflected in the financial statements.
Surpluses on revaluation are transferred to a non-distributable reserve while an amount
equivalent to the portion of the annual depreciation charge relating to the revaluation surplus is transferred to retained income each year. Profit or loss on the disposal of a revalued asset is calculated as the difference between sales proceeds and the carrying book amount at the date of sale and the appropriate portion of the non-distributable reserve is transferred to retained income.
VII. Foreign currency translation
Transactions in foreign currencies are translated to Zimbabwe currency at rates of exchange ruling at the time of transaction. Exchange gains or losses arising on the settlement of foreign currency transactions are dealt with in the income statement.
Assets and liabilities in foreign currencies are translated to Zimbabwe currency at rates of exchange approximating those ruling at the balance sheet date or rates applicable to forward exchange contracts entered into. Exchange gains or losses arising on translation are dealt with in the income statement.
VIII. Depreciation of fixed assets
Depreciation is not provided on freehold land, dams, roads, and capital work in progress.
Depreciation on other fixed assets is provided on the straight-line basis calculated to write of the cost of fixed assets over their anticipated useful lives, for example:
Sawmill-20 years
Buildings and bridges-40years Plant and machinery-13-20 years etc
Livestock is valued at standard values. Other stocks are valued at the lower of cost and net realizable value. Cost is computed on a weighted average basis. Trading stocks include a proportion of overheads where appropriate.
X. Accounting concepts
When preparing final accounts, prudence concept was applied, which states that profits should not be overstated and losses should not be understated. The matching concept was also applied when preparing the final account that is matching expenses against revenue that brought it about. Expenses incurred during the month are recorded in the actual month they were incurred so that the final accounts reflect a true and fair view of the company. It was also of great importance to apply the going concern concept. When preparing the final accounts, the company will continue to operate in future. The materiality concept was used to identify transactions that were worth recording that is those of great importance and those that are to be written off.
XI. Financial accounting
Basic principles of accounts on treatment of assets and expenses were strictly followed and the author went through this on a daily basis, as this was the department that the author spent most time in. Since the company is engaged in exporting activities, the author was also involved in foreign transaction processing.
XII. Management and cost accounting
The author was involved in forecasts that are budgets and was also involved in the budgetary control. Variance analysis was part of regular activities. Noted the application of Activity Based Costing (ABC) as most the costs incurred in the service cost centres were greatly unaffected by production volumes but varied with the range and complexity of products manufactured by the company. These costs are absorbed into cost units on the basis of benefits received from the particular service cost centres. This method shows product costs and the activities that cause them
XIII. Auditing
Internal controls imparted in audit lectures were in full force, and strictly monitored within the organisation. The author also had a chance to work with external auditors as they went through their audit process for year-end.
XIV. Information systems
The knowledge acquired from introduction of computers course helped a lot in providing with the basic know how of computers since the working environment involved working with computers. Most of the tasks, which were done in the accounts department, or any department are done using computers. It was very easy to adapt because of background of computers acquired earlier at college.
Some of the concepts learnt from information system that were able to applied included keeping password a secret and logging off each time the office has no occupant so that information is secured. Information system was applied when filing to keep documents safe and in chronological order. At the end of each period, all the documents were filed for each period in each respective department worked in.
XV. Human resources management
A positive attitude developed towards teamwork. At college we normally students have study groups when studying or writing assignments. As a result, working with all people from every department was easy although difficult at first. In accounts department, for final accounts to be produced, working as a team is the remedy.
XVI. Communications skills
Communicating with different workmates was easy although at first it proved to be difficult. Later on the importance of good communication skills at work were applied and everything started working out.
XVII. Introduction to taxation i. Deferred taxation
Deferred taxation is calculated on the partial liability basis at the current rate of taxation in respect of timing differences resulting from the recognition of income and expenses in differing periods for financial statements and taxation purpose. Amounts that will be deferred in this manner for less than three years from the accounting date are included within the charge for taxation and set aside as deferred taxation. Amounts that will be deferred for more than three years are shown as contingent liability.
Vat is chargeable only by registered operators. It is paid on the 20th of every month. Items which
are exempted from VAT include medical services, fuel etc. The standard rate of VAT is 15% except for cell phones that attract 22.5%.
iii. Withholding tax To make adjustments
Withholding tax is paid on interests and capital gains
ITF 263 is charged on business operators who do not have a tax clearance certificate issued to them by Zimbabwe Revenue Authority (ZIMRA). Payments to such operators exceeding a certain threshold are liable to deduction of 10%.
2.4 Recommendation for further training needs
The student has never been exposed to meetings where decisions are being made. As a Business Management student he is supposed to know a great deal of decision making at managerial level. In addition some of the communication skills needed for example the ability to write minutes, notices and the speech can be gained there.
Wattle Company is a large company with a number of depots. The was based at the head office and he should have had a tour to all the company’s depots so that he could have an idea on how decision are being made at operational level. It was going to be an advantage if the student had a deep
Conclusion
All the tasks that the student was exposed to were explained in detail in this chapter. The student was attached to the accounts department and to his benefit he was exposed to all the sections that include creditors section, cash and bank, debtors section, management section and stocks section. However the student wasn’t exposed to some areas like meetings, workshops, which could have equipped him with other necessary skills.
Chapter 3
Personal and professional development
This chapter gives a detail on personal and professional development that the student gained during his stay with the company. Highlighted are the key skills developed by the student, his strength and weaknesses and an assessment on the work related learning.
3.1 New skills acquired
His stay with the company resulted in the student gaining a lot of skills, which include technical, skills, communication skills, analytical skills, human relation skills and conflict handling skills.
I. Technical skills
Working at Wattle Company helped the student in acquiring new skills. Prior to attachment little knowledge about Microsoft Excel was acquired. The student was also introduced to an accounting package known as SMB (Small to Medium business Accounting Software). At first it was difficult to use the accounting package. As more exposure was gained, inputting information, producing
different reports, for example purchases ledger report for different creditors became faster and accurate. Periodic stock counts were carried out. Stock take would mean comparing physical counts and what will be on the bin cards. After every stock take a report of the proceedings and any
problems that might have risen would have to be reported. Stock variances were also highlighted in the report.
II. Communication skills
Communication skills were acquired especially when working at the creditors section. One of the duties on creditors section was to talk to creditors almost on a daily basis to inform them about their payments and any queries they needed to be attended to. As a result the attachee learnt to be polite, patient and tolerant with different characters. Good communication improves the company’s image to its outside world. With particular attention to verbal skills, the student noticed a big improvement. It was a frightening thing consulting the suppliers whose documents had not been completed. They
would ask a number of questions in a hostile manner. Such a situation helped the student on how to talk nicely so that they would understand.
III. Analytical skills
Analytical skills were acquired during the attachment period. Accounts must not be analyzed just at the surface but right from the bottom up to the top. The student was able to analyze things in detail that is what they brought them about and the consequences. The supervisor played a major role in instilling this skill in the student. During marketing intelligence findings the student gained a skill of critically examining the competitors environment in a broad spectrum. Through such analysis the student realized that there are some blind spots, which people may exempt as if they do not affect them whilst they have significant impact on the organisation.
IV. Human relation skills
The attitude developed towards teamwork improved. In accounts department, it is essential to work as a team and it helped a lot. Teamwork made work easier if communication with workmates for better ideas was made regularly. Teamwork improves workers morale and aid in maintaining the organisational behaviour.
V. Conflict handling skills
Sometimes the attachee’s interests would conflict with those of the company. For instance, just like any other employee one may need money to survive but sometimes the company may not have that money. Or the money may be there but for other purposes. Considering the fact that Work Related Learning is there to arm students with practical skills on what they have learned theoretically, the student had to concentrate on learning. The more he did the work the more he learned.
VI. Interpersonal skills
The student interacted with people of different backgrounds and personalities. This improved his interpersonal skills. The student had to meet the suppliers and deal with their problems. He had to run around all departments looking for documents, information and sometimes disseminating the information. Due to these interpersonal skills I began to realize the relevance of teamwork and began to shun witch hunting. I was prepared to accept outcomes of my actions and admit where negative results had emerged.
VII. Meeting skills
There were a few meetings I attended and these were only in the department level. Though they were formal meetings the manager tried to infomalise them so that students could be accommodated since they were unfamiliar with such meetings. The prominent skill I grasped was that the agenda should be followed. Whenever one gets the platform to say something he or she should to stick to the agenda. Failure to do so would lead to stray discussions, which would not accomplish objectives of the meeting. Apart from that I learnt that for one to contribute meaningful suggestions he should listen when others are passing their own opinions and it is a skill to abide by the chairperson orders not just uttering when its not called for.
VIII. Self Confidence
During the first I lacked this skill when talking to my supervisor or even to those who would want to be served. However, later on I became adapted to the working environment. I could even complete tasks from one department to another under the clear notion that I was doing the right thing. As I began to settle my confidence got built up and in meetings like those of reporting on marketing intelligence I became able to say out my findings, explain them in detail and defend them against criticism.
IX. Self initiative
I had a driving force in me that pushed me to execute my tasks. I would not wait for the supervisor to coerce me carrying out my duties. In some trivial cases, which needed a quick decision to be made, I had to pass decisions to avoid curbing the process by consulting my assistant supervisor.
3.2 Personal Development
The four A’s of Steve Pavlina, were part of the way taken in the personal development process.
Assessment of the working environment was done at arrival at Wattle. Adopting the way of life at the
place was next, followed by adaptation to the environment in it. Necessary adjustments to personal characteristics were made to suit the people at Wattle and the ups and downs found in all working environments.
Mastering time usage for extreme productivity and overcoming procrastination of tasks were part of the learnt tips. Setting of realistic goals, creations of action plans in case of crisis and achievement of results were not left out either. In times of crisis, there is need to confront and solve hard problems faced in working situation which is now done with confidence. It was also learnt that to succeed in any field, personal motivation and cultivating a burning desire to keep moving towards your goals was vital.
3.3 Strengths and weaknesses
Strengths
I. Adaptation
The environment in which the student was working was so complex with ever changing systems that the student had to be flexible and be able to adapt to some changes. He quickly familiarises himself with the systems to such an extend that some of the workers had to consult from him
II. Pressure sustenance
The most pressure was experienced at the end of a financial period when all documents had to be inputted in the system. During such a period the student had to stay at work till late to come back the following day very early. All these he did willingly without experiencing any stress.
III. Proper communication skills
The student has proved to have good communication skills through his ability to handle any conflict with the creditors, ability to trace missing documents and communication with the management. Interaction with different people either over the phone or face to face called for the use of tactics learnt at college. In most cases the situations called for politeness and cheerfulness in explaining and asking for certain things.
IV. Punctuality
Work started at 8.00am and most of the time the student would get at work at 6:30am.this enabled him to counter the pressure he would face if he had to start work at exact times. In that bid I became so punctual almost every day. And 4.30pm was the dismissal time but the student would go an extra mile up to 5.00pm.
V. Accuracy
Input of documents in the system need a great deal of accuracy any failure might cause information distortion. However the student had proved to be very accurate and his supervisors chose him as one of the team members who helped in input.
Weaknesses
.I. Unfamiliarity with some computer functions
The student had to cope with the computer functions such as excel. Excel is widely used in the accounting department and the student’s little knowledge about excel affected the work progress.
3.4 An assessment of the Work Related Learning
The full year spent at Wattle was not just a formality so as to adhere to the Bachelor of commerce degree programme. Rather it was a productive learning process that exposed the student to the real working environment. Practical business situations that are often presented at college were made real
through this process. The working environment was not modified so as to cater for students but it was a real with clear operational structures. It gave the student the necessary practical experience needed in developing future managers. This was more than a mere academic process as the students matured in their individuality improving interpersonal communication skills.
Most of the objectives of the WRL were met significantly as the student has now mastered most of the listed areas in the outline. Some of the topics took longer to be mastered than others. This was because other tasks were day-to-day happenings like the use of spreadsheets and some were one-off like data capturing in the system. The other flaw of the outline was that most of the topics were drafted like they were to be covered in theory. In the end the student had to search the net before presenting the monthly report and claim that a certain topic was well covered.
The supervisors were also pushed by the student’s drive to learn. Where the student showed no interest, there was no need for the supervisor to force it on the student as they had lots of other work to do. The same can be said for any other company with students on attachment.
Conclusion
At first the attachment period was not enjoyable since the student had to familiarize with both workmates and the working environment. As time went by it turned out to be fruitful. So much experience and skills was gained. There were a lot of things that could not be done before attachment that can be done now, for example using SMB (Small to Medium Business Accounting Software) system and working as a team. The student also learnt to appreciate that theory without practice is dead, to be patient and being tolerant. The student is now a better person due to the attachment experience both at work and personally
Chapter 4
Challenges and recommendations
In this chapter challenges faced by the student during his Work Related Learning period are explained and a highlight of how some of these challenges can be reduced. As a matter of fact students face so many challenges in their learning on which some are attributed to the company of placement, some to their learning institution and others to the students themselves.
4.1 Challenges faced during attachment period
I. Applying theory to practice .
At college, theory staff was learnt. It proved to be difficult to put theory into practice since very few things learnt at college applied to the practical part. Theory is skeletal without any experience from the working environment. The student had to use that little information to tackle all the situations.
II. Slow adaptation to accounting information system packages .
Accounting information system packages used like the SMB and later on ERP that are custom made to meet Wattle Accounting System needs were a real challenge in the first days. The student was not familiar to it and did not know how to use it and was very slow in using at first. As time passed by, he managed to get used to the system and now using it faster with few or no errors at all. This he managed through observation whilst others did the data capturing and asking questions for clear understanding, taking down the procedures for future reference also eased the task
III. Dealing with other workers .
Some of the workmates were very difficult to work with. Some were reluctant to offer assistance in detail and were rude. Difficulties were experienced in performing some jobs up to perfection at first. Some people at Wattle Company used to think that attachee students were a threat if they know or perform better than they do. They had a mindset that they can loose their jobs if that attachee happens to be employed back after graduation since the student would have shown potential during
attachment. The student had to humble himself and show respect to the entire staff member regardless of their positions.
IV. Changing of duties .
Some new things were introduced very often. It took time to adapt to this rotation system. New people were met to every department the attachee worked in. It took time to get used to the people and the duties performed in each respective department. The student had to grasp the concepts quickly and familiarize himself with the organization.
V. Teamwork problem .
Teamwork was difficult to cope up with at first. Working with many people with different characters, attitudes, backgrounds and cultures was not an easy task to do. Some people were found to be very rude and difficult to work with especially at the end of an accounting period. It was characterized by long working hours almost everyday and working under pressure to meet deadlines. The student had to be flexible and easily adapt to the team works.
VI. Multiple supervisors .
Since the student was to transfer from one section to the other, he faced a great challenge of being supervised by different supervisors some of whom were not that cooperative. The teaching
techniques had to differ from one supervisor to the other because of that the student was to be flexible.
VII. Few resources .
The company had shortage of computers and had to share one computer with other students, which delayed the basic activities. The company had to increase the numbers of computers to meet one machine-one user needs.
When it comes to book closing, the accounts department is at the end of the activity as information required is sometimes an output of other departments. The required reports are usually delayed late. The student had to regularly prompting the people to impart the information earlier by constantly reminding them and try to explain the importance of the information required outlining the repurcations of delays.
IX. Obtaining information from banks
-Some personnel at the banks were reluctant to provide information over the telephone or by a fax thus posing challenges on meeting the deadline. The student had to apply the communication skills learnt in college as well as develop interpersonal relationships with the relevant people by improving on the communication skills.
4.2 Suggestion to improve industrial attachment
For students to be better prepared for attachment, certain issues must be taken into consideration.
I. Case study of the company .
The student suggested that attachment students must have a case study of a company they work on from production up to when final accounts are produced. They must get to the final stage of
producing final accounts. This will enable them to see how theory applies in the work environment. They will be familiar with what takes place in industries.
II. Regular visits to companies .
The student also proposed that students must visit companies after a certain chapter that has
something to do with what takes place in companies. This will make them understand better how it is done in real life that is putting theory into practice. Students must also visit the company they will be working for during their attachment period for a week or two so that they get used to the
environment and the people they will be working with.
It is also proposed that the company can revise the supervisor - student ratio so that students can have enough time with their supervisors. Considering the fact that one supervisor had to take care of four students, students had to learn through other students.
