Purchase to Be Document v.01 16-Dec-13 Final

8/10/2019 Purchase to Be Document v.01 16-Dec-13 Final

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Chemfab Alkalis LimitedBusiness Process Mapping

Oracle R 12.1. Purchase Order !o Be Mapping

Author : R Vinodh Kumar & R Selvaraj

Creation Date : 07-Dec-2013

Last Updated : 07-Dec-2013

Control Number : Pur/V.01


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Document Control

Revision Details

Date Author Version

Change Reference

"#$%ec$2"1

&inodhkumar R '(el)ara* R

%raft1."

Distribution

2

S.No.

Name Department Position Signature Date

1. Mr.Bala(ubramanian &

MaterialManagement

&P MM

2. Mr. (arfudeen + ( Material

Management

(r.Manager

. Mr. Ra*aram ( Material

Management

%,.Manager

-. Mr. %heera*kumar ( Material

Management

%,.Manager

. Mr. Ramasam, M & Material

Management

O/cer


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Document Table Contents

BRS.No. Process Description Page

Number

1. P$"10 Purchasing Process o 3 4ndent from 5ser %epartment to (tock %eli)ered to

4n)entor,

-

2. P$"20 Purchase 4ndent Process 1"

. P$"0 Purchase 4ndent Appro)al Process 12

-. P$"-0 Purchase Order Appro)al Process 1

. P$"0 Purchase Order Amendment 16

6. Anne7ure Points 18


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P-0! Purchasing Process "o# $ %n&ent from 'ser Department to Stoc(

Delivere& to %nventor)

-


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BRS%D

BRS ProcName

BRS Description *racle +itment ,o-Be

PO$"1A

Purchase4ndent

9Anne7ure A::o 3 ;

9Anne7ure A::o 3 ;

Material 4ndent Process

.%n&ent Receipt 5ser department Process engineerraise the 4ndent. 4ndent ill forard touirement or ne groups of)endor the folloing process ill startsb, purchase department.

.B Purchase user re>uest the >uotationfrom )endors 9R?@;

Purchase Re>uisition Process

Purchase Responsibilit, has the Purchasere>uisition form.

Purchase re>uisition number based on

the operating unit ise.

Purchase re>uisition status1. 4n complete 3 :e Re> and 5ser

allos making changes.2. 4n process 3 Re>uestor forarded to

ne7t appro)er and restricted tochange the Re>.

. Appro)ed $ R?@ or PO ill raised

against the Appro)ed statusRe>uisitions.

!,pes of 4ndent details ill be captured inPurchase re>uisition uisition and status inPurchase Re2uisition summar) form.

Purchase user check the stock a)ailabilit,through *n 3an& Availabilit)form.

Purchase Re>uisition for AMC ' (er)ice raisedthrough 4tem Categor, ise.


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9Anne7ure A::o$6 ;

. C. Purchase department collect the>uotation ith Material !echnical and@ualit, speci=cation and terms. Based onthe details prepare the Price comparisonchart.

. %. Price negotiation based on theprice comparison chart

. . %epartment and acti)it, ise

Budget de=ned and at the time orpurchase order preparation s,stemchecking the a)ailabilit, of the fund.

. ?. Purchase department prepare thePurchase Proposal and that ill beappro)ed b, purchase head. Beforeappro)ing the PO internal auditdepartment )erif, the supportingdocuments

Purchase Re>uisition need to be short closed b,manuall, b, 5serPurchase

%f the Purchase is ne# then

Re>uest for @uotation 9R?@;

Purchase user select the appropriate

Appro)ed re>uisition and con)ert as aRe>uest for @uotation 9R?@; throughAuto Create ?orm.

Based on t,pes of 4ndent to t,pes of R?@

is applied hile creating R?@0a. Bidb. (tandard

a. Bid $Repair ' MaintenanceD Ra MaterialDCashD OthersD Eork 4ndentD CapitalDConsumables. Bid R?@ Eill con)ert to Bid

>uotation and (tandard purchase order

b. (tandard $ AMC 9Annual MaintenanceContract;. (tandard R?@ ill con)ert to(tandard >uotation and Blanket Purchaseagreement and releases

@uotation ntr,

Purchase user collects the >uotation from

supplier and enters in 45uotation 4entr,form ith RateD !a7es ?unctional and@ualit,!echnical speci=cationD !erms andconditions.

@uote Anal,sis

Purchase user collected and entered the

>uotation detailsD !he, ill anal,sis therateD term and speci=cation details through45uotation anal)sis 6ocali7e& form

Quote analysis data can convert as Price

6


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9Anne7ure A::o$#;

ill goes for Chairman appro)al.

:. Receipt Process.

&endor sends the materialagainst the PO. &ehicle numberand material details in Fate

entr, register. 4f Eeighment applicable )ehicle

mo)ed to Eeighbridge for =rsteight.

Re>uest sends to >ualit,person to collect the sample.After anal,sis @A gi)es theresult.

@ualit, result is accepted.

(tock ill be updated inin)entor,

@ualit, result is re*ected.Material return back to &endor.

;. Cancellation (hort Close ofPurchase orders

a. Appro)ed @uotation is con)erted to (tandardPurchase Order through Cop, %ocumentprocess.b. Appro)al is based on Position uotation is con)erted to BlanketPurchase Agreement. 4t includes appro)edsupplierD eJecti)el, dateD )alue etcK

Blanket Purchase agreement is appro)edthrough Position uisitionR?@@uotePurchase Order

b. Purchase Re>uisitionPurchase Order

c. Manual Purchase Order

Approve Stan&ar& Purchase*r&er


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=. %mport purchase or&ers. (ame procedure folloed for

4mport purchase orders.

Purchase orders in foreign

currenc,.

Clearing and forarding chargesapplicable.

Custom dut, and related ta7es

based on the Bill Of ntr,I.

%ut, and Additional import relatedreco)erable ta7es ill not includein item cost.

:on reco)erable ta7es ill added

in 4tem cost.

a)ailable. 4f there is shortage in Budget thenproposal is to be sent for appro)al manuall,.Budget is then added in s,stem

4nternal Audit is included in Position


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>. Service purchase or&ers.

Purchase order raise for ser)ice

ith and ithout material.

user can selects the CorporateI or 5serde=ned rate. 5ser selects corporateD rateill be captured from FL module.

5ser de=ned or spot rate ill entered b,purchase user.

4tem cost calculation purposeD 4mportrelated duties and ta7es attached ithpurchase order.

7act ill dut, and ta7es a)ailable in Bill ofentr,. But purchase order preparation timebu,er does not kno the appropriateta7es. (o the, can attach the adhoh ta7categor,.

At the time of purchase receipt 4n)entor,user ha)e the bills of entr, cop,. !he, canenter the appropriate %ut, and otherta7es.

Service purchase or&ers

Blanket Purchase agreement can raise forAMC. Purchase user release the Blanketrelease hene)er re>uired.

(er)ice order raise ith materials. (er)ice

related ta7es attached for (er)ice line.

Purchase order receipt against the ser)icelineD related e7penses account ill hit.

7cise or other ta7es ill attach ith

material line and after receipt against thematerial stock ill be added in in)entor,.

Service purchase or&ers

1"


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(alt Penalt, Charges due to the change in thestandard speci=cation of CAL salt

P-0/! Purchase %n&ent Process

%n&ent Creation Process!

11


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BRS %D BRS ProcName

BRS Description *racle +itment ,o Be

PO$"2A 4ndent

Creation

Creation of 4ndent b, department users!,pes of 4ndent

a. Repair ' Maintenanceb. Eork 4ndent

c. AMCd. Consumablese. Cashf. Othersg. Capitalh. Ra Material

Creation of Purchase Re>uisition b, ProcessDMaintenance and Pro*ect department users

S)stem ?ntere&!

Purchase Re>uisition %?? ha)e option toselect the appropriate 4ndent t,pea. Repair ' Maintenanceb. Eork 4ndentc. AMCd. Consumablese. Cashf. Othersg. Capitalh. Ra Material

5ser department ill be captured in

Purchase Re>uisition %?? likeMaintenanceD 4nstrumentationD LabD R '%.

Purchase re>uisition appro)al hierarch,a)ailable. 5ser department user enters there>uest and forard to department head.

%epartment head check the Purchasere>uisition and appro)e or re*ect or alter there>uest >t,.

Purchase in&ent base& on the Pro&uctionan& sales Plan.

Ra material and Production ingredientre>uirement decided based on theProduction and sales plan.

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P-01! Purchase %n&ent Approval Process

BRS %D BRS Proc Name BRS Description *racle +itment ,o Be

PO$"A ngineer%,. Manager a. Raise the 4ndent andforard to the ne7tle)el for

a. Create PurchaseRe>uisition. Appro)eand ?orard to

1


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%epartment


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%,. Manager

(r. Manager

4nternal Audit

&P Material

&P ?inance

Chairman

b. PrepareCreate Purchase Order

c. Check the PO prepared b, PurchaseO/cer ' %,. Manager

d. Check the correctness of PO in line iththe indentD negotiated price ' terms andad)ice suitabl, in case of an, de)iation.

e. Can appro)e the PO )alue upto Rs 1 Lakh

after internal audit. 4f PO )alue is morethan 1 Lakh proposal is to be send toChairman for procurement appro)al.

f. Can appro)e the PO )alue upto Rs 1 Lakhafter internal audit. 4f PO )alue is morethan 1 Lakh proposal is to be sending toChairman for procurement appro)al.

g. Can Appro)e for 5nlimited )alue

and ?orard to (r. Manager

b. Create Purchase Order. Appro)eand ?orard to (r. Manager

c. 4f (r. Manager appro)es thennoti=cation goes to 4nternal

Audit. 4f re*ects then noti=cationgoes to concerned Bu,ers foran, changescancellation.

d. 4f 4nternal Audit appro)es thennoti=cation goes to &P Material.4f re*ects then noti=cation goesto concerned Bu,ers for an,changescancellation.

e. 4f the PO )alue is upto Rs 1 Lakh&P Material and &P =nance bothshould be appro)ed.'. (P )aterial approve and

forward to (P *inance forapproval

f. 4f PO )alue is more than 1 lakhpre appro)al to be obtained fromChairman.

g. After appro)al of PO b, &P$MaterialD PO is forarded to &P?inance through


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1#


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P-0:! Purchase *r&er Amen&ment

BRS

%D

BRS Proc Name BRS Description *racle +itment ,o Be

PO$A

PO$B

Receipt 7cessLess@t,

Budget Appro)al

a. 4f the @t, is e7cess then Purchase communicates toconcerned department. 4f the department accepts

for e7cess >t, then Purchase accepts the >t, ithamendment. 4f the department re*ects the e7cess>t, then Purchase returns the material to supplier.

b. 4f the @t, is e7cessless .r.to 4n)oice then M%: iscreated stating the shortage of >t,. 4f the >t, ispending .r.to PO then Purchase follo up ithsupplier to recei)e the shortage >t,.

a. Amendment PO shall be released based on budget

appro)al for additional @t,. As per e7isting C(DAmendment PO cannot be released ithout budgetappro)al. 4f there is no budget an, short fallD freshbudget appro)al has to be obtained for releasingthe POs

a. Based on indent from user for the e7cess >t,Damendment issued to the respecti)e PurchaseOrder manuall,

b. (imilarl,D 4f the ordered >t, is not re>uired andcancelledD necessar, amendment issued to therespecti)e PO to re)erse the budget.

a. PrepareD forardD follo up and get backamendment purchase orders after internal audit.

b. After preparation of POD the same is forarded to

a. Create PurchaseOrder.

Appro)e and?orard to (r.

Manager

b. 4f the Receipt @t, ise7cess then Purchasecommunicates to5ser manuall,.

c. 4f the 5ser acceptsthe e7cess >t, thenPurchase creates

Re)ision in the PO

a. 4f the partial >t, isnot re>uired then @t,in PO line is cancelled

b. 4f the partial >t, isre>uired thenpurchase follo upith supplier torecei)e pending >t,

a. %uring Appro)alstage Budget ischeckedautomaticall,. 4f thereis insu/cient Budgetthen Budget isappro)ed manuall,.After manualappro)al the Budget

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PO$C

PO$%

PO$

PO$?

PO$F

Create PurchaseOrder

9Anne7ure A: :o$2;

Create AmendmentPurchase Order

9Anne7ure A: :o$6 ;

Re*ection '

Replacement

Amendment.

Cancellation short

Closing of Purchase

Order

internal audit after checked b, (r.Manager. ?olloup and get back purchase orders after internalaudit

c. After getting signature from &PM &P?D POreleased to suppliers ' accounts. One cop, of PO

to be kept in =le ith back papers.

a. 4n case of an, re*ection due to non compliance ofspeci=cationD loss damage shortageD M%: isprepared and communicated to suppliers forreplacement. ?ollo up ith stores for sendingback the re*ected materials and arranging forreplacement.

a. Amendment Order is gi)en for )ariance in !a7structureD %eli)er, ' commercial terms

a. Amendment PO is short closed in the s,stemmanuall, due to non suppl,D item is not re>uiredand short suppl, 9eg. 1""" Ngs of M( Angleordered and supplied @t, 2 Ngs. !hen thebalance 8 kgs short closed in the s,stem;.(imilarl,D 4f the ordered >t, is not re>uired cancelled (hort closed the respecti)e PO tore)erse the budget amount partiall, or full,.

is added in s,stem.

a. Purchase Re>uisitionill be created forthe e7cess >t,Dre)ision ill be done

for e7isting PO.

b. 4f the ordered >t, isnot re>uired then theentire PO is cancelledand Budget ill bere)ised.

a. Re)ised Purchase

Order is Appro)ed '?orarded to ne7t

le)el through Position

uired.

c. !hen re)ised PO is

released to suppliers.

a. 4f the receipt

e7cesssame >t, is

re*ectedD then Return

to &endor Process is

done to return the

material back to

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Annexure Points

S No.ANNo.

Business Process R%C? )pe Solution

1 1 earl, budget 3 demand :ot ?easible

2 2 Monthl, break up 3

demand

:ot ?easible

?rom )arious department$$ Purchase re>uisition$$ 4ndent Q Appro)al9&erif, stock ' appro)e;

(tandard a. Purchase Re>uisition is created b, users ofdiJerent department.

b. Personalisation to be done for Purchase to )iestock hile creating PO

- - Fross materialre>uirement $$ (tock)eri=cation $$ :etdemand

(tandard a. Fross material re>uirement is )ieed inRe>uisition (ummar,

b. (tock )eri=cation 3 Report to check the On handc. :et demand is arri)ed manuall,

R?@ $ )endors $ &endor

comparison $$ POProposal $$ Appro)al

(tandard

a. 4ndent to PO Con)ersion ith @uote process

6 6 PO Feneration Authoriation Release$$ PO Amendment ithAuthoriation

(tandard a. PO Creation ' Appro)al through Position


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displa,ed ha)e the pending re>uisition details.

21 21 4tem Categor, (tandard

2222 POPR (e>uence for

multiple t,pes

(tandard

Purchase Re>uisition and Purchase order header %??ha)e the t,pes of purchase order and departmentdetails.

2 2 Amending PO (tandardPurchase order amendment process e7plained ithochart

2- :e (alt Penalt, Report (tandard Manual %ebit :ote for de)iation in (alt speci=cation

2

Purchase to Be Document v.01 16-Dec-13 Final

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Transcript of Purchase to Be Document v.01 16-Dec-13 Final