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Standard Operating Procedures Manual SOPs
Assets Management
“Supplies Delivery, Receipt, Storage and Distribution”
Presented to:
Independent Elections Commission (IEC)
Funded and Supported By
United Nations Development Programme (UNDP)
Kabul- Afghanistan
Date: March 2016/ Hoot 1394
Prepared by: BDO- Jordan & SH
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Issue date Hoot–1394/ March 2016 Department Assets Management
SOP No. Assets Management-01 Revision No. and date NEW
Implemented By Asset Management Manager and Store Keeper
Review authority
No. of pages 29 Signature/ stamp
Terms and Definitions:
Warehouse: The place where the goods, equipment and inventories are stored and protected.
Material: All consumable and non-consumable materials that are stored and recorded as
inventory.
Consumable Material: The goods were it has less value and it’s not required to be recorded
against the transfer request, like (paper, stationery, IP material and etc.).
Non-consumable Supplies: The goods which have to be recorded and stored, the value is
important to reach in a depreciation period of time.
Equipment’s: The non-consumable goods that are used in government and non-government
organizations, which will be depreciated over period of time, such as (furniture, carpet,
machinery, computer equipment, electrical equipment, medical equipment, etc.)
Depreciation: The loss of the nature of the goods caused by normal use in period of time.
Inventory Records: Consists of all transactions related to the purchase and procurement,
storage and distribution of goods and assets within an organization.
Inventory: Is the verification of all the relevant goods and items as per the records of
warehouse or store department.
Store: The goods and assets which will be available in the warehouse.
Secondary Store: The goods and assets are placed in addition to the general warehouse for
the related departments of the organization in order to easily facilitate the needs and speed
up the work process.
Surplus assets: The goods that are available and it will be necessary for the next two months
Outmoded goods: The goods, which are all functional, but in terms of time period and
technical improvements on technology it is not applicable.
Wear out goods: The goods and assets that are lost by more usability.
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Defective goods: The goods and equipment that their period of durability is lost within a
minor damage.
Lost goods: The goods and assets that disappeared in the specified location but the
possibility of theft and robbery do not exist.
Stolen goods: The goods that has been stolen and it will be available in the context theft
o Source: Afghanistan Warehousing Manual Published on 1967
Abbreviations
NCB: National Competitive Bidding
DG: Director General
CEO: Chief Executive Officer
IEC: Independent Election Commission of Afghanistan
SOPs: Standard Operating Procedures
GoIRA: Government of Islamic Republic of Afghanistan
PFEML: Public Finance and Expenditure Management Law
RFQ: Request for Quotation
NCB: National Competitive Bidding
ICB: International Competitive Bidding
BOQ: Bill of Quantity
GPM: General Procurement Manager
GSM: General Stock Manager
SK: Stock Keeper
IC: Inspection Committee
SFP: Supplier Focal Point “Authorized”
GS: Gate Security
WF: Workers (Workforce/ Labors)
ID: Individual Departments
In. Co: Inventory Committee
P. Co: Procurement Committee
PP: Procurement Plan
PO: Purchase Order
SL: Supply list
PI: Purchase Invoice
I.Ch: Inspection Checklist for receiving of supplies
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1. Introduction:
When new goods are delivered to the location where the stock is kept (i.e. a warehouse mostly),
several checks take place. Firstly, the price and quantity are compared to the purchase-order to
see whether the delivered quantity and price match. In most of the organizations there is a link
to information from the purchase department at this point. For some materials, the quality is also
checked before adding the goods to stock. In some special cases the delivered goods even have
to stay in quarantine for a while (e.g. to stabilize after transport or to adjust) before the quality is
being checked. Because the quarantine process is optional, this block is dotted in the picture.
Additionally the completeness of the order is often checked and the delivery date is registered.
This information is used to keep track of the reliability of suppliers. Additionally, partial
deliveries can be monitored using this information.
2. Problem statement:
Stock management is a storage facility that receives assets and products for the eventual
distribution to the end consumers or to the businesses. Stock management is concerned with
ensuring that all the activities involved in store are carried out efficiently and effectively by
those employed in the store. In other words, it is the process of coordinating the incoming
assets, the subsequent storage and tracking of the assets, and finally, the distribution of the
assets to their proper destinations.
The evaluation found that, every year Millions of budgets are spent at Independent Election
Commission for the procuring of equipment and assets required for public services which are
then stored in many stores of related departments of IEC and later distributed to other sub-
departments at different zoon’s according to their requirements and needs.
Assets Management Department of Independent Election Commission does not have a reliable
management process for its fixed and disposable assets or supplies; In addition, IEC does not have
a system that can provide accurate, fast and updated information about these assets.
3. Purpose statement:
The purpose of this topic is to design a new management system (SOPs) standard operating
procedures for managing of IEC fixed assets to provide accurate information on the status of the
organization’s warehousing, more specifically, it will help: (a) Determine what are IEC fixed
assets, (b) Determine their condition or status, (c) Identify where these assets are located, (d)
Ensure that the inspection of specification of assets take place , (e) Assure that assets are
adequately insured, (f) Ensure that all fixed assets are registered, tagged and categorized (g) Assure
that proper depreciation procedures are in place.
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4. Scope:
The scope of this SOP will be limited to fixed assets that are movable in nature and the assets that
are considered to be highly vulnerable to theft or misuse or known is capital assets and how to
improve delivery, storage, distribution and record keeping of assets.
5. Objectives:
To modify how fixed assets forecasting and planning being accomplished.
To describe the procedures for receiving of assets from the IEC suppliers and to how to
increase and achieve the satisfaction level of end user.
Guarantee the continuous and transparent control of assets stored and distributed according
to Afghanistan Assets Manual.
To ensure availability of supply and proper stock management without delay to various
departments of the organization.
To prevent overstocking (Stock In) and under stocking (Stock Out) of IEC Assets.
To Standardize procedures for assets quality control and inspection
To minimize the storage costs and to increase high quality of stock management.
To ensure most effective utilization of available storage space and workers engaged in the
process of storekeeping.
6. Functions of Stock Management:
In the light of above objectives, the functions performed by the stock department are
outlined below:
• Issuing purchase requisitions to Purchase Department as and when necessity for materials in
stores arises.
• Receiving purchased materials from the purchase department and to confirm their quality
and quantity with the purchase order.
• Storing and preserving materials at proper and convenient places so that items could be
easily located.
• Storing the materials in such a manner so as to minimize the occurrence of risks and to
prevent losses due to defective storage handling.
• Issuing materials to various departments against material requisition slips duly authorized by
the respective departmental heads.
• Undertaking a proper system of inventory control, taking up physical inventory of all stores
at periodical intervals and also to maintain proper records of inventory.
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• Providing full information about the availability of materials and goods etc., whenever so
necessary by maintaining proper stores records with the help of bin cards and stores ledger
etc.
7. Tasks, Responsibilities and Procedures in the Stock Management Process
Task Authorized In charge Procedural Indicator
Forecast and Planning CEO Individuals/ Departments Store Request Form
(Form F.S.9)
Purchasing of Assets CEO Procurement/ Purchasing
Committee
Solicitation Doc
(NCBs, RFQs)
Receipt of Assets CEO Stock General Manger Delivery Receipt Form
(Form M.7)
Quality Check &
Inspection of
Specification
CEO Inspection Committee Inspection Committee
Objection/ Approval
Storage
Stock
General
Manager
Stock Management Team
Stock Record Card
(Form F.S.7) Inventory Records
Distribution Store Distribution
Form (Form F.S.5)
Inventory Surplus
Management CEO Stock General Manger
Stock Return Form
(Form F.S.8)
Stock Inventory Form
(Form F.S.4)
Delivery Receipt Form
(Form M.7)
8. Stack Management Department TOR and Hierarchy:
The main purpose of a stock management is to guarantee the availability of essential
supplies for accomplishment of the service activities, permanently, in a proper quantity, into
a proper place and with the best ratio cost and quality for proper final utilization.
a) Issuing purchase requisitions to Purchase Department as and when necessity for materials in
stores arises.
b) Receiving purchased materials from the purchase department and to confirm their quality
and quantity with the purchase order.
c) Storing and preserving materials at proper and convenient places so that items could be
easily located.
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d) Storing the materials in such a manner so as to minimize the occurrence of risks and to
prevent losses due to defective storage handling.
e) Issuing materials to various departments against material requisition slips duly authorized by
the respective departmental heads.
f) Undertaking a proper system of inventory control, taking up physical inventory of all stores
at periodical intervals and also to maintain proper records of inventory.
g) Providing full information about the availability of materials and goods etc., whenever so
necessary by maintaining proper stores records with the help of bin cards and stores ledger
etc.
Figure # 6.1: Assets Management Department Hierarchy
9. Stock Management Cycle:
9.1. Forecasting and planning:
The organization administration department (procurement committee) prepares the annual
procurement plan on the basis of organization needs and requirements which includes a
detailed plan schedule about how many list of items should be procured which areas will be
included, duration/length of the project, estimated cost of the project, procurement methods,
financial code of conduct, donor, purchasing reference number and purchasing/procurement
management duration.
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9.2. Purchasing of assets:
After approval of purchase documents from concerned authority, procurement department
prepares the bid document incorporating special guidelines of Afghanistan procurement law.
It initiates invitation of tender by advertising in the national/ international newspapers.
9.3. Receiving section:
While the agreement made in between Organization as a purchaser and the Vendor as
retailer, the list of required assets will be delivered to the organization address.
9.4. Quality check/ inspection:
It is a Committee of officials appointed by the entity for the purpose of assuring qualitative
and quantitative procurement performance as provided for by this Law.
Following procedure is followed in receiving of supplies:
- Receiving these incoming materials in stores.
- Checking and inspection of these incoming materials in stores etc.
- Recording the incoming materials in goods received book.
- Informing the purchase department about damaged and defective goods and surplus or deficit
supplies etc.
- Returning damaged or defective goods to the suppliers in accordance with the instructions of
the purchase department.
- Forwarding the materials to respective stores and locations where these are to be stored or
preserved.
9.5. Storage section:
After the completion of purchase procedure, the next important aspect of assets management
is storekeeping. This section is concerned with keeping proper records with regard to receipt
and issue of materials into stock card. The primary task of this section is to undertake the
process of inventory control.
9.6. Issue/Distribution section:
In this section the distribution department distributing assets to respective departments on
receiving duly authorized requisition slips or distributing on quarterly or monthly bases. An
entry is made immediately on the stock book which is the record of assets from where the
material has been issued and it shows the store balance.
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Figure # 9.1: Stock Management Cycle:
10. Supplies Delivery, Receipt, Storage and Distribution Work Flow:
10.1. Tasks:
1. Receiving purchased materials from the purchase department and to confirm their quality
and quantity with the purchase order.
2. Storing and preserving materials at proper and convenient places so that items could be
easily located.
3. Storing the materials in such a manner so as to minimize the occurrence of risks and to
prevent losses due to defective storage handling.
Inventory
Surplus
Mgt
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10.2. Key Personnel involved in the supply delivery and distribution process
1. CEO (Chief Executive Officer/ DG)
2. General Procurement Manager (GPM)
3. General Stock Manager (GSM)
4. Stock Keeper (SK)
5. Inspection Committee (I. Co)
6. Supplier Focal Point “Authorized” (S. F.P)
7. Gate Security (GS)
8. Individual Departments
9. Inventory Committee (In. Co)
10. Procurement Committee (P. Co)
10.3. Records and Appendices:
1. Procurement Plan (P.P)
2. Stock Request Form (F.S.9) Annex #: 1
3. Purchase Order (P.O)
4. Purchase Invoice (PI)
5. Standard Bidding Document (SBD copy of Solicitation Doc)
6. Inspection Checklist (I.Ch) Annex #: 4
7. Delivery Receipt Form (Form M.7) Annex #: 3
8. Government Property Record Form Annex #: 5
9. Stock Record Cards (Form F.S.7) Annex #: 6
10. Distribution Record Form (F.S.5) Annex #: 2
11. Staff property stock card (F.S.16) Annex #: 8
12. Return of Surplus Supplies (F.S.8) Annex #: 9
13. Stock Inventory Form (F.S.4) = Stock Physical Check Form Annex #: 10
14. Bin Card Annex #: Annex #: 7
15. Expenditure Chart Form “filling for Consumable Supplies” (F.S.10) Annex #: 11
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Table: 10.1 Supplies Reciept and Distribution Flow Chart Principles
STEP ACTIONS / OUTCOMES NOTES / EXCEPTIONS
Step One: Processing Purchase Order
1. The purchase order for both first time deliveries should be
made by the procurement/purchasing department to the
supplier at least 14 working days in advance.
2. General Procurement Manager then takes discussion with the
General Stock Manager to design the delivery schedule,
taking in consideration the resources available in the
Organization such as personnel (Labor), Space for stoking
and other special constraints.
3. At least 1 working day (24 hours) before the delivery, the
supplier will notify the GPM by phone.
4. The delivery booking or appointment should be notice.
5. The purchase order cover up the whole details of SBD/RFQs
and it’s a common reference for or between all the parties
(suppler name- address, and the supplies descriptions or
specification, bill of quantity “items name, Specifications,
units, quantities, unit price, total price and etc)
6. A delivery schedule is officially shared with the supplier by the
Procurement Unit.
7. A copy of the delivery schedule also shared with the
Inspection Committee of the organization who is already
assigned for three months (one quarter).
1.1. Late deliveries may
be chased with the
GPM by an official
source.
1.2. Liquidated
damages will be
applied, if the
supplier fails to
deliver any or all of
the supplies by the
date(s) of delivery
within the period
specified in the
contract, purchase
agreement.
1.3. The purchaser
(procuring entity
may without
prejudice to all its
other remedies
under the contract,
deduct from the
contract price as
liquidate damages,
a sum equivalent to
the percentage
specified in the
Procurement Law
of Afghanistan
Step Two: Receipt of Supplies (Arrival of Deliveries or Supplies)
1. On arrival of supplies at the organization, the delivery vehicle
(which may be sourced through a third party), the driver, any
of the supplier’s workers involved and the supplier’s focal
point (s) present themselves and their delivery paperwork to
the guard/ gate security.
2. The security guard calls the Procurement Department and
secures verbal approval that the delivery is planned and might
proceed (otherwise, the vehicle is refused access) and that
the relevant personnel should be admitted.
3. The Procurement Officer (or a representative) then proceeds
to the security gate and directs the vehicle and personnel,
once inside the compound, as where to park.
4. Review of receipt documentation
5. The delivery will be offloaded from the delivery vehicle to the
designated inspection / checking area by the driver, supplier’s
focal point and/or the supplier’s workers.
6. At the designated offloading point, where the delivery may be
checked, the Inspection Committee, plus the General Stock
Manager and Stock In-Charge, the panel will meet up and be
5.1. The procuring entity staff (Stock Labors) are not involved at this point.
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appraised of the following documentation relating to the
delivery by the supplier’s representative :
7. Purchase Order
8. Standard Bidding Document (SBD)
9. Purchase Invoice
10. Certification (if applicable)
Step Three:
Supplies
Quality Check/
Inspection
Process
1. The Inspection Committee in coordination with GPM is joining
the panel.
2. The supplier submits the purchase invoice at the time of the
delivery to the General Director. The GD refers the invoice to
the General Admin Manager and he/she refers it to the
Inspection Committee.
3. Inspection of any physical damage and Visual inspection are
administrated to the delivery by the Inspection Committee plus
the Supplier Focal Point and GSM using the Descriptive Form
to ensure that the Goods supplied are as per technical
specification.
4. On offloading/ delivery of supplies the availability of Inspection
Committee is mandatory, otherwise the supplies will be
offloaded but will be placed in the Quarantine aria and the
procuring entity will not have the responsibility of securing of
supplies theft, damage etc.
5. Items against the terms of the purchase order or agreement
it’s in inadequate quality, may be rejected and immediately
returned to the supplier’s focal point.
6. Items with incomplete Quality Assurance documentation may
be accepted but it will be in the pending delivery, until the
documentation submitted. but will be placed in quarantine,
meantime and cannot be distributed
7. Based on Afghan Procurement law, the QA documents should
be provided to the organization within 40 working days
(otherwise, reminders will be issued to the suppliers by the
Procurement Unit and supplies will be returned to the
suppliers address).
8. Items having quality assurance documents are stored in
specific place and sample of items like (Fuel, Mineral Water
etc will be sent to ANSA (Afghanistan National Standard
Agency) and sample of items like (Dry food, Vegetable Oil,
Medicine, Consumable Medical Item and etc) will send to
Quality Assurance Department of the MOPH for testing
(Quality Analysis Check).
9. The Supplies Description Form will be filled by the Supplies
Description Panel, while the supplies delivery finalized by
Inspection Committee and the Supplies Descriptive Form will
be considered and filled based upon the specification of the
SBD/PO and supplier invoice and comparison with actual
1.1. The inspection
Committee shall be
assigned by the
CEO, consisting of
three persons
including
(representative
Administration
Department, Store
Keeper or a member
of Stock
Management and
third one from the
representative of
end user).
4.1. Quarantine Aria; a- Is the place where
supplies are offloaded within the organization in absence of Inspection committee.
b- Is the place where supplies are against the terms and conditions of the procurement agreement and it’s kept in this place until to be replaced/ returned.
6.1. Exceptions will be those supplies that there are quarantined because of incomplete QA documentation.
8.1. Quality check fee
will be at the
supplier’s expense.
12.1. The deadline of
supplies return is
officially shared with
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receipts.
10. The original signed copy of the Supplies Descriptive Form is
then filed and signed by the Supplies Description Panel and
one copy will be signed by the Administration Panel who is
(CEO, General Admin Manager and General Stock Manager.
11. Two original supplier’s purchase invoice should be prepared
to show the actual delivery quantities and then it will be signed
and initialed by the Inspection Committee and the supplier’s
focal point, as proof of delivery. One original PI will be kept
with be GSM and the other will be given to SFP. Each
member of the committees can have a copy of the PI.
12. The supplier’s representative is then free to depart the
organization and should return any rejected items.
the supplier
“liquidate damaged
procedures should
be declared”.
Step Four:
Storage and
Records of
Supplies
1. While the supplies physically counted and inspected the
Inspection Committee completes signs and files the supplies
document and submit the documents to GSM.
2. The supplies are moved from the inspection/checking area by
the Stock and located on the appropriate storage locations
3. The Form M.7 (Delivery Report Form) will be prepared by
General Stock Manager with the whole supplies details
(specification of “items name, items description, quantity, Unit,
Unit price, Total price and the Total amount of supplies
delivered to stock of the organization, plus the Date of supplies
receipt, Purchase order number, Place of supplies offloaded,
the Name of Supplier and a Short statement of the supplies
receipt will be noticed and signed (approved) by both Store
Keeper, General Stock Manager and CEO.
4. The Form M.7 while prepared by GSM the Inspection
Committee will review and sign the form.
5. The GSM then attached the M-7 form and Purchase Invoice
with an official letter all in original form sending to control
manager of MOF (he/she is the MOF representative for
controlling financial affairs of organizations.
6. The GSM refers Form M-7 along with purchase invoice the
original to the Finance Department for invoice (payment)
proceeding and the copy the procurement/purchase
Department of contracts/purchase installments records and
one another copy in Stock Management Department for
contract/purchase balancing and reconciliations.
7. The stock management team will record the receipt of the
delivered items based on signed and approved documents into
a Stock Record Card (FS7) and one other copy in Bin Card.
3.1- before preparing the
Form M.7 the availability of supplies in the organization stock is mandatory, otherwise any other practices if be taken is against the store management manual.
4.1- MOF controller is to technically observing the prices and analysis and comparing the Purchase Invoice with the Form M-7 in order to find the financially mislaid.
Step Five:
Supply Request
(Individual
Requests)
1. The supplies then become available for distribution (assuming
the M.7 Form has already been filed).
2. Whiting the organization all related departments will request for
supply from Stock Management Department through Stock
Request Form (FS-9). And it’s completed by the individual
department head and submitted first to CEO for signatory
approval then forwarded to Stock Management Department for
distribution.
2.1. Applying Stock
Request Form (FS.9)
is mandatory and
there will be no
exception missing
(FS.9 Form)
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Step Six: Stock
Database
Record
1. Applying the Form F.S 16 for fixed assets (non-
consumable/non- disposable items) will be applied while the
supplies (Fixed Assets) issued to the individuals and
departments.
2. Each employee of the organization will have an assets record
or registry for the property they hold and use on their desk and
this record form is known as Staff Property Stock Card (F.S.16).
This form will be applied and filled while the assets (supplies)
issued the end user/ beneficiary.
3. There are two methods of stock record keeping; double entry
utilizing Stock Book (Stock Registry Book) method and the
second one is the Card Technique method, the purpose and
aim of both methods are same, but in this SOPs we prefer
utilizing or using Card Technique “Stock Record Card” (F.S.7)
method.
4. The SK and GSM both will update the stock record cards
(F.S.7) based on the received supplies recorded on M.7 From.
5. The disposable items or supplies which known as consumable
items will be recorded on Supplies Expenditure Chart (Form
F.S.10 )
1.1. For database
record hear it
means that the
Stock Management
Team will have
record of whole
employees of the
organization in
order to easily
apply or run
inventory physical
check within the
specific period of
time. This database
might be differs
from organizations
to organizations
(MS Excel, MS,
Access any other
software’s)
Step Seven:
Distribution of
Supplies
(Issuing of
Supplies to the
end user)
1. The distribution will be take place as per the department’s
forecasts or need (Request Form) that has been made on the
planning or forecasting stage. The formal distribution process is
applying the distribution of supplies by filling the goods/supplies
distribution form (From F.S.5) and the use of this form is
mandatory for any types of assets.
2. Each department will place its own orders independently and
there is no expectation that these orders will be coordinated.
3. On approval of the Request Form (FS-9) by all the required
signatories, GSM will prepare three copies of the Distribution
Form (FS-5) which must be formally approved within the CEO
and then communicated back to the requested departments.
4. While distribution of supplies takes place by the Store Keeper
or General Stock Manager, the stock out of any quantity of
supplies which is distributed should be re-adjusted in the Stock
Report Cards (F.S.7) which is used as a Stock Book and the
Bin Card which is made for each item and hanged on the items’
shelf. These two forms show the balances of stock-in and
stock-out and these forms filling on the delivery of supplies
(stock-in) and the distribution of supplies (stock-out).
5. The relevant stock cards and reporting database are updating
on daily biases by the Stock Keeper or General Stock Manager.
6. The disposable items or supplies which known as consumable
items will be recorded on F.S.10, F.S.5 forms and other related
specific forms.
7. For all Stationary distributions the (Form FS.10) will be applied.
This form filled for the individual departments as per their
forecasting request and in the light of this form the distribution
will take place.
8. The Organization Stock or Warehouse or Stores will be the only
source of supply for each type of assets/goods. There will be no
6.1. Short-shelf-life
items already should
be distributed to
departments, in
order to avoid expiry
of assets and its
applicable for
consumable
assets/goods like
(Medicine, Medical
Consumable items,
Vegetable Oil and
etc).
12.1. The Organization
stock should be
designed with two
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direct deliveries to the other departments through external
sources.
9. Ordering from each department should be limited on quarterly
biases, except urgent requests or immediate purchases.
10. The Distribution Forms (F.S 5) then send to the Control
Department for their approval.
11. The GSM should provide a suitable area at Stock for
inspections and administration, through which the team could
check the contents of the order while they are distributing
supplies.
mean categories
(Fixed Assets Store)
and (Non-Fixed
Assets Store) in
order to easily run
the stock
management
operations on daily
biases.
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11. Annexes: Stock Management Official Standard Forms
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26
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9. References:
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- Afghanistan Assets Management Guidelines 1967 - Procurement Law of Afghanistan 2009 - Introducing SOPs for Fixed Assets for Afghan Public Sector KARDAN University Kabul
2015. - Afghanistan Accounting Manual 2011
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