Why we should be efficient in collection of our zero interest accounts, collecting penalties thereof, forfeiting promptly, and WHY WE SHOULD BE BETTER AND AGRESSIVE IN SELLING SERVICES: IS, CMCS

TO       All Accounting Staff especially at ICR

           CMC staff, 

           Holy Gardens Greenhills

           HAMP

Subject   Why we should be efficient in collection of our zero interest accounts, collecting penalties thereof, forfeiting promptly, and WHY WE SHOULD BE BETTER AND AGGRESSIVE IN SELLING SERVICES: IS, CMCS

1.  It could be boring  and sound very repetitive but we enjoin every one again to

    Be efficient and aggressive in collecting our MA

             1.  Have an aging immediately

              2. Text blast/email blast the colleciton

              3.  Demand letter on the 30th day overdue;

              4.  Charge the 1% interest and 4% penalty for account in arrears

              5.  Forfeit deliquent account on the 90th day

              6. Revert to with interest sales policy by 2017, or why we should end the 0 interest regime soon

              7.  Make the posting efficient, decentralize the operations,, include the JV sharing in excel, or teach the same, and come out 

                   with RGP even without a system

2. Focus on selling services: Interment Service, and Chapel Memorial Care and Services either as at Need or Pre Need 

             1. Make additional investments in FFE:  hearses, karuwahe, lamps for CMCS

             2.  Up the CMCS in La Union, HAMP and Calamba

             3  Hire and train people well on CMCS

            4.  Rationalize the prices and offerings (make it more competitive

            5.  Sell the plots and BC in packages  (support with discounts) special offer

Why:

        A.  We are losing money or miniscule GP on plots.at special price and 0 interest

             WHY ARE WE ARE SELLING OUR PLOTS AT SPECIAL LOW PRICES:AND AT ZERO INTEREST

             1. To get our market share

             2.  To build the Holy Gardens brand further

            3.  To get customers get their foot in and buy our better margin offerings  IS and CMCS

 3.  COMPUTATION OF RGP FOR MOST SPECIAL PRICED PLOTS

                        JV 50 - 50  Lawn Plots

TLP            NLP          JV share     Less CGS   Total  RGP        RGP/Mo

30,000     14,487         7,242           8,750           (1,508)               (25.13)

36,000     17,380         8,690           8,750           ( P60)                (1.0)

39,000     18,829         9,414           8,750          P664.60              P11.08

48,000     23,174         11,587         8,750           P28.37               P47.28  

4. Computation for RGP of IS or CMCS

     P30,000 x 40%    =    P12,000

                     50%    =      15,000

     This is the right business to be in and which we are trying hard to avoid, or not do well

     PANALO

iT IS HOPED THAT EVERYBODY SEE THE LIGHT AND SUPPORT OUR VISION

Share the vision

      TO COMPLETE AND PROVIDE COMPLETE AFFORDABLE MEMORIALIZATION BUSINESS IN THE NEXT FIVE YEARS:

     1.  Chapel Services

     2.  Cremation

     3.  Columbarium

     and offering the same for packages.

     WE ARE BEEFING UP OUR INTERMENT SERVICES:

     1.  Buying and upgrading equipment

         Jackhammer for Calamba and La Union

         Navarra 4x4 for hauling soil/trailer

         Minimum of 6 trailers per sbu

         Genset and water pumps

         Steel matting or equivalent

         Upgading chain block

      2.  Hiring complete staff:  CSS I 2 and 3

      3.   Incentivizing IS and CMCS

            Payment of P100.00 for tributes for DeLuxe interments with 20 to 39 pages movie maker

           Incentives of 5% of GP for both provided:

           10 IS or more per month    40% and up GP

            5 CMCS  per month         50% and up GP

     4.  Increasing our  interment fee and upping the services, amenities

          Upping payment for ISG

          Dressing up ISG

           

    5. Strict monitoring of work of AP, not to delay IF
--

PAGSASANAY SA TAGUMPAY (Training for Success)

SETTING THE STANDARDS IN INTERMENT SERVICE

Innovation creates more wealth and more customers

  Jorge U. Saguinsin

  Be a BIDDA now

  RRURAC   (Read, Reflect, Understand, Realize Act, Check)

   Please visit the following sites:

   

   Free Obituaries for Friends of Holy Gardens

   Free Obits for Holy Gardens Customers

   Archives for Holy Gardens Tributes

   Birthdate and death date anniversaries of dearly departed

   Holy Gardens Rewards

   Patsikot/SUV Promo

Notice:   This email address is a private property of Holy Gardens Group and its contents are private and confidential.    Its contents and attachment  may not be copied nor forwarded to parties other than the ones intended to,  nor can the contents be used other than the original intent  You are advised to delete the message you received if in case it may have been wrongly sent to your good office

Re accounting exam and hacks into RGP computation

---------- Forwarded message ----------
From: Jorge Saguinsin <holygardens.groupnew@gmail.com>
Date: Sun, Nov 19, 2017 at 8:49 PM
Subject: Re accounting exam
To: Majorem Investor <majorem.lending@gmail.com>

To:    All Accounting staff

These are my comments on your exams;

1.  Thank you for striving to apply xls on your accounting exam

2. It was better if you did the following

      1.  The journal entries were spread out into a trial balance/per account 

           with debit and credit   No no need for T accounts

      2.  E.g.

      Journal Entries                Cash                      She               FFE

                                   DR           CR             DR        CR        DR       CR

1.  Investment              10,000                                   10,000

2   Buy garapon etc                   3,000                                     3,000

You can summarize this trial balance and harvest all the accounts for IS, Cash Flow etc.   Again we are repeating that the cash account is the Cash Flow statement

 You can make this neater by having all the Balance Sheet Accounts together and Income Statement together

3.  We can hack make the short cut the Excel file, by creating a cell or computing quickly:  (For RGP)

      a.  Copy the total of the NLP from your excel

      b.  Create new column

           Enter formula:

          Say row P  x 40%

          Say  row  Q x 50%

      3.  Compute  RGP total

          NLP   x    Developers Share  -  CGS

                         P8,750 for  lawn

                         P35,000 for SSN

                        P105,000 for GE

      4.  Divide by 60

      5.  Subtract from MA the CGS  per month if all the rows are all minimum MA

--

PAGSASANAY SA TAGUMPAY (Training for Success)

SETTING THE STANDARDS IN INTERMENT SERVICE

Innovation creates more wealth and more customers

  Jorge U. Saguinsin

  Be a BIDDA now

  RRURAC   (Read, Reflect, Understand, Realize Act, Check)

   Please visit the following sites:

   

   Free Obituaries for Friends of Holy Gardens

   Free Obits for Holy Gardens Customers

   Archives for Holy Gardens Tributes

   Birthdate and death date anniversaries of dearly departed

   Holy Gardens Rewards

   Patsikot/SUV Promo

Notice:   This email address is a private property of Holy Gardens Group and its contents are private and confidential.    Its contents and attachment  may not be copied nor forwarded to parties other than the ones intended to,  nor can the contents be used other than the original intent  You are advised to delete the message you received if in case it may have been wrongly sent to your good office

--

PAGSASANAY SA TAGUMPAY (Training for Success)

SETTING THE STANDARDS IN INTERMENT SERVICE

Innovation creates more wealth and more customers

  Jorge U. Saguinsin

  Be a BIDDA now

  RRURAC   (Read, Reflect, Understand, Realize Act, Check)

   Please visit the following sites:

   

   Free Obituaries for Friends of Holy Gardens

   Free Obits for Holy Gardens Customers

   Archives for Holy Gardens Tributes

   Birthdate and death date anniversaries of dearly departed

   Holy Gardens Rewards

   Patsikot/SUV Promo

Notice:   This email address is a private property of Holy Gardens Group and its contents are private and confidential.    Its contents and attachment  may not be copied nor forwarded to parties other than the ones intended to,  nor can the contents be used other than the original intent  You are advised to delete the message you received if in case it may have been wrongly sent to your good office

Fwd: Recognition of Income and Expenses for Sales Of Holy Gardens Plots

Computing for our current CGS:

Our current CGS for Holy Gardens Group is P3,500 per sm

             Thus for  Lawn x 3.5   =   8,750

                           SSN x 10 sm =  35,000

                           GE   x 30 sm  =  105,000

 Thus for 36,000 installment  x 50%

                   Amount subject for JV sharing   =   18,000

                           x   say   50%                         9,000

                                 less CGS                         8,750

                                 RGP                                   250

             % of RGP for every MA (P600)     250/36,000   = 0.0694%

                                                                                 = 250/60   =   P4.16   per MA

          Unbelievable

        What are the opportunities?

        1.  The collection fee of 5%  if we have rewards system and points of 1%   =   5%  - 1.5%  =    3.5%

        2.  Insurance.   If we spend 2.3% of 4.00 then we make a margin of 1.7%

        3.  Marketing   -   if we spend 17% on marketing, then we can make a margin of 3% (however this is not happening because of the prizes we are making.

        Comparative analysis:

        Say  4,000 plots sold    x 36,000                         =    144,000,000

         Margin on plots          4,000 x 250                      =        1,000,000

         Margin in insurance     144 m x 1.7%                  =         2,448,000

         Margin on CF              144 m x 3.5%                  =         5,040,000

         What to do next?

         Reality:

         1.  We cant process our documents efficiently  (use  the portal, hire a better staff, train well,)

         2. Di masimulan ang insurance   (hire an insurance assistant, rewards assistant na train well)

         Do it now.   Be responsible   People.  3ffb

    

        However, we are not paying much attention to this.  Especially to the insurance.   Nothing is moving

       WE NEEDED TO SELL  THE SPECIAL THE PLOTS AT LOSS OR BREAK EVEN TO:

        1.  Generate more jobs and employment for sellers

        2.  To make the customers happy and to get their foot in;  when their feet are in, we can offer products/services where we can make higher gp.

                   cms -   chapel memorial service  -    as much as 30%

                   is  -   interment service   20 to 30%

                   regular plots   -  as much as 40%

      We cant sell the special plots again, because we are losing money on them

       We are running out of inventories

  

       

                           

---------- Forwarded message ----------
From: Jorge Saguinsin <jorge.saguinsin@gmail.com>
Date: Tue, Jun 27, 2017 at 12:30 PM
Subject: Recognition of Income and Expenses for Sales Of Holy Gardens Plots
To: Bpi Records <bpi.records3ffb@gmail.com>, holygardens.group.memorial@blogger.com, Mad Elie <madz2424@gmail.com>, "Bereavement PROVIDERS INC." <bpi.apacctng@gmail.com>

This office discussed with the Accounting Staff (AP, AR, Treasury and Majorem Acctg.Loans the Chart of  Accounts and Significant accounting policies and Chart of Accounts. They are not aware of this

They are walking in the dark.They need light

Objectives:

1. To determine the eligibility of SBU to be granted additional benefits like the health card.;they must be profitable for the last 6 months to qualify;

2.  To make the accounting staff  be expert on the system and structure of accounting at Holy Gardens before attempting changes.;

3.  To move the accounting staff to be more efficient:   stricter on the expenses, and stingy on the discount,  ME, and collection fee

4.  To be aware of other opportunities for earning like service

Reality:

1.  We do not know the latest financial  statements from the chief accountant

2.  We received  the Jan Feb P N L which showed the SBUs making large sums of money and thus must be verified

Explanations

Some important concepts to be understood

1.  Sale -

    Cost

    GP

     Businesses must increase sales always:   Sales can be increased by:

            1.   Increasing the channels

            2.   Price increase

            3.   Increase awareness

            4.  Increase the number of uses (or frequency, as with Starbucks, to 

                 increase number of occasions to drink coffee)

            5.  Increase the value of the product

     Decrease the cost:

           1.  Improve quality

           2.  Remove waste (MUDA)

           3.  Reduce labor cost

           4.   Reduce COGS

           5.   Outsource

   Increasing the GP is incresing value added,   increases value creation

2.   Setting up a real estate company:

      1  Cash/Cash in bank                xxxx

                Stockholders equity              xxxx

      2.   Purchase of land               xxxx

                Cash/Loans                         xxxx

      3.   Set up inventory

               Development cost          xxx

                    Unexpended development cost       xxxxx

              Thus let us say we buy land at  P350.00/ sm   x   50,000 =

                    P16,500,000

              Computing for development cost let us say P1,000/sm =  P50,000,000

              Total inventory / salable area =     CGS

              Saleable area =    50,000 x 65% =   32,500

             Total inventory   =   P50,000,000  +  16,500,000 =  66,500,000/32,500

             CGS =  P2,078/sm   

                        Lawn   x 2.5    =       P5,195

                        SSN   x  10.00 sm = 20,078

                        GE     x  30 =           62,340

    4.  Determine the GP  rate  vs SP

             Thus:

                  TLP                                         100%

                Less PC               17%

\

                        Insurance       4%

                       Collection fee  5%

                       Total             26%

             Net sales                                      74%

                 Less VAT   12%  -  8.88%

                         ME    20%    14.8

                         Total              23.68              

                         Amount subject for JV       50.32

                        Say  TLP  =   36,000 x  50.32%

                                                             P18,000

                       Say   50% - 50% sharing     9,000

                                     Less CGS            5,195

                                     RGP/DGP            3,805

                        Thus our RGP per installment rate =  3,805/36,000 = 10.56%

     5.  Computing for RGP for installment  sales

          MA of P600.00 x 10.56      =    P63.36

        However, actually, our CGS is P3,500 /sm or P8,350

       or    DGP   of only   P9,000 - 8,350   =  P650 only !!!

             GP rate =    650,00 /36,000  = 1.8% only

       RGP for installment sales (60 months to pay  

             P600 x 1.8%   =    ONLY P10.80!!!!

       Thus:  (CONCLUSION)

      1.  The PNL so submitted could be over stated

      2.   We have to be more efficient

      3. The special plots sale is not sustainable, and does not make money

      4.  We make money on:

           1. Regular plots

           2.  20% dp, only 3 years to pay with interest

           3. Services like PIS and PMS where there is no huge CGS

        Please print and discuss with the Chief Accountant

        What is your take on this?                   

               

             

--

Jorge U. Saguinsin
To "be the best, do your best, expect the best" always

N.B.   The information contained herein are private and confidential in nature.  The sender does not assume any damage that may arise from improper use of the email contained. ;  especially if the information in this communication falls into the wrong hands causing damage and loss. to the company or any other parties.

--

Jorge U. Saguinsin
To "be the best, do your best, expect the best" always

N.B.   The information contained herein are private and confidential in nature.  The sender does not assume any damage that may arise from improper use of the email contained. ;  especially if the information in this communication falls into the wrong hands causing damage and loss. to the company or any other parties.

Cash Sales & Installment Sales for Memorial Park

Some amendments correction:

Subject: Cash Sales & Installment Sales
To: Holy GardensGroup <holygardens.group@gmail.com>

COMPUTATION OF COGS

 Cost of goods sold is arrived at by dividing UDC + cost of land  by saleable area (usually 60% to 70%)  UDC is the projected total amount of development to be incurred during the entire development of the property into a memorial park.  It is set up based on the signed computation of the Project Engineer.

Thus:

Real Estate Held for Sale (REH)

Cost of Land                         xxx

Total cost to develop            xxx

Unexpected development cost:                                    xxxx

Subsequent sale of plots are credits to REH;  forfeitures are debits to REH. The supporting documents to REH are:

         1.  UDC computation

         2.  Master list with all the additions and subtractions

         Dual (or even triple control of master lists are instituted:

         1 copy from Sales Admin Assistant (Records Assistant)  based on documents

         1 copy of Treasury Assistant  (based on SBU records updating)

         1 copy at each SBU based on PPA, and abstract

          COGS  =      Cost of 

CASH SALES

Sales which are paid in full, in spot or for a period of 30 and 60 days from the date of the reservation depending on the agreement with the customer.

                    Cash                                xxx

                              PC                                    xxx                                                            VAT 
                                   

                              (COGS)            REHS 

                              Sales                                xxx
                     COGS                                Sales

                              Gross Profit                      xxx

CASH SALES JOINT VENTURE

                    Sales

                 _-_ME__

                Net Sale

                JV Partner Share

               Our share

               Less: COGS

INSTALLMENT SALES

These are sale of lots on credit. The clients/customers paid a certain portion of the contract price.  The balance is payable within one (1) year or five (5) years at the discretion of the buyer.  This is evidenced by a notarized Contract to Sell/Offer to Purchase, duly signed by the buyer, agent, marketing specialist, accounting, Chief Operating Officer and Managing Director.

Net Sales – Gross Sales less sales discounts and other non plot prices

          Cash (D/P)              xxx

          ICR                          xxx

                         Deferred Income  (Sale - COGS)    

                        CAPF (AP)                               xxx

                PC     (AP)                               xxx

                 VAT    (AP)                              xxx

Since there is a debit to Sale at DI side there is a Cr to COGS at REHS

               COGS               REHS            xxxx

                    

                   

Installment Sale (Owned)

            Sale

      _ME_

Net Sale

       _COGS_

Deferred Income

Accounting for installment sale

Down Payment

          Cash

          

                    PC 

                    CAPF

                    Deferred Income               xxx

AR              VAT (for one year)

Our DP includes:

      1.  The down payment for the lot price

      2.  Perpetual Care

The VAT is a receivable for one year (without interest)

Where deferred income is Net Sale - COGS (for the entire cost of land before sharing)

MONTHLY AMORTIZATION

          Cash                                          xxx

                    Realized Gross Profit                   xxx

                    Interest Income                            xxx

         The DI is a control account, and all subtractions from this coming from RGP should be properly noted.

Installment

RGP = Installment x Fraction of Installment x 80%) Deferred Income

                    1/36 (3 years to pay) x 80% of the deferred income

                    1/48 (4 years to pay)                   "

                    1/60(5 years to pay)                    "

Forfeiture

The sale transaction is reversed:

Sale ( Deferred Income and RGP)                              xxx

COGS                   REHS
          COGS         Sale         xxxx
          ICR                              xxxx

          No transactions are made with regards to VAT since they have been paid to the govt, PC is likewise deposited to trusteee bank

         

          

                    Cash        (50%of principal payments)               xxx

                    Other Income  (Interest income + penalties       xxx                                                     

 This is excluded from further JV sharing since the JV all ready got its share and the inventory is returned for further sale.