Skip to content

Finance Control in Direct Marketing.

March 10, 2010


Anurag is a Direct Sales executive in a Marketing firm selling Chemical Industrial products.He has to go to factories in many small town and cities who consume these products.He is assigned an area covering two -three states of India.He visits about 30 towns in these states where about 100 to 110 factories which use these products are located.He has to cover all these factories every month to get the contract or order for his company which may range from few thousands  to  lacs of Rupees depending upon the size of the factory.

He is away from his home town for almost 25 days in a month visiting these plants.In between he comes to the office to settle his accounts in the accounts office, submit his daily sales report, discuss new problems and developments in the market with his seniors , and so on. Other wise he communicates all these with his office on phone or fax. He is supposed to be in field all the time.His daily expenses , boarding and lodging in the hotels , travel expenses ,food all is taken care of to the minutest detail.For this he is given a form where he writes all the expenses given above . He is required to submit this form to the accounts department in the office when he returns. Of course all this has to be supported by the valid documents like hotel bills where he stays ,Train tickets , Bus tickets , Daily sales Report and other valid documents which can be available and submitted to the accounts department. The accounts department is authorized to cross check these reports in case it finds any discrepancy in the report.

This is a case of a small chemical marketing firm which may have around 15 employees working in its home office in a small town like Jabalpur . It may have a Director or the owner, a manager, 2 to 3 persons in accounts ,1 or 2 in staff like peon ,rest in marketing numbering 5 to 10 depending upon the company’s requirement from time to time.It will have just one room with few table and chairs where only the staff ( accounts, the manager , the owner are seated) The marketing people have no business here except when they are required to report. Mostly they are in the field.

The accounts section has the duty to keep record of the expenditure of the marketing people , their salary etc. Since the company is a marketing firm the marketing expenses have a major share in the total expenditure of the company.Rest is the salaries of the other employees and office expenses( Fixed and variable costs) like office rent, electricity & phone bill , daily expenses etc.

How does the accounts section do that. It has a previous record of the past sales people who have left or are promoted i.e. their hotel , Rail, bus bills. Since the new sales person will also stay in the same hotels , travel in same transport it is very easy to maintain accounts. In case there is a change in any price like an increase in hotel bill or rise in the train or bus fare suitable measures are taken.

For all companies there is a form known as daily expenses report which is legal and accepted by the Govt. income tax and Audit Department .It has different columns under different headings like Daily Allowance(D.A.) , Travel Allowance(T.A.) , and so on.The sales executive is required to fill all the details given in the form in a proper manner along with the valid bills.

Here is a simple format of the  Expenses Report.


Employee’s name and code number Anurag Dubey

Area of operation Madhya Pradesh, Chattisgarh,Maharashtra        
Period of tour.
(Number of days)
01/02 /2010 to 20/02/2010.
20 days.
Daily Allowance( D.A.)
Please attach valid document)

Rs 200 per day

20 days


Rs  4000

Travel allowance.(T.A.)
(Please attach  valid documents)
( From station _ to Station _)
(From _ to _)
( From _ to _)
Others Please specify
(From _ to _)
Total (B)
Total T.A.(1+2+3)          
Miscellenous expenses(Telephone,fax etc) Please attach the bills.         Total (C)
Total Expenses(D.A. + T.A. + Miscellenous)         Grand total expenses.
( A+B+C)
Signature and seal of the authorized person. Marketing Manager

Signature: __________


Accounts Officer

Signature: ____________

Director of the company.



* Important Points.

1. The sales executive must fill all the details given . He must write N.A. in those sections that are not Non- Applicable.

2. The DA, TA  is given to the sales executive according to their seniority and grading. The sales executive must verify this from his department.

3. The sales executive must verify how mush is he eligible for Rail fare – 1 st , 2nd or 3 rd class , Taxi fare , Telephone expenses from his department.

4. The sales executive will bear the expenses if they exceeds the prescribed norms which he is eligible of. The sales executive will bear any other expenses made   by him other than stated above.

5. This report must be verified and signed by all the authorized  signatories given above along with their individual Seal stating their name and designation .

6.. The report must be attached with the all valid documents recognized by the accounts department. The accounts department reserves the right to withhold any report that it finds incomplete or unfair.

7. In case any mistake is made by the sales executive knowingly or unknowingly  suitable action will be taken against him by the company.


This is a sample of Expenses Report of a Sales executive who works outstation i.e. outside his home town. This is other than what he gets as Salary, Bonus , Commissions & Incentives and other benefits which he is eligible of.For a sales executive who works in his home town he has to submit his petrol bill in case he goes to the field regularly in his own vehicle and his telephone or mobile voucher . Rest is included in his pay slip .

This kind of report whatever format it might be is a must for all companies having marketing department as per the income tax laws of the country. Also this is used by the company for internal auditing purpose.

Other than the above increments which is based upon actual , most companies provide their marketing and sales employees with Basic salary, Bonus , P.F., commissions and incentives , and other allowances depending upon the size , reputation of the companies as well as the seniority of the marketing person.

The Senior accounts persons , Chartered- accountants , Income- tax experts  along with the Senior marketing persons i.e. of the rank of General manager and Director, are authorized to determine the income and salaries of the marketing and sales employees from top to bottom. They have to consider all aspects before they determine the income of each employee. Of course the basis salary i.e. the salary that one takes home must be above than the minimum wages as prescribed by the government under the minimum wages act.They have the right to change the level of income when required.

The  Sales and Marketing  being one of the most visible department of any company in the eyes of public has to be careful when it comes to expenditure. It has to set up a ceiling in expenditure and balance its accounts in the end of the year . It must spend within the budget assigned to it by the board of directors be it in salaries of employees, outstation expenses, setting up new offices etc. The senior persons must be the first ones to spend wisely . Then the Junior ones. Also care must be taken see that no one is felt at loss . This is the tribute to the modern day’s finance which is showing the way to all the departments including  marketing .







No comments yet

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: