01-08-2012, 09:44 PM
01) Purchase Requisition
A purchase requisition is a request sent to the purchasing department to procure goods or services. For an audit point of view it should come though proper channel.
02) Purchase Order
A PO is a commercial document issued by a buyer to seller, indicating types, quantities, and agreed prices for products or services the seller will provide to the buyer. Sending a purchase order to a supplier constitutes a legal offer to buy products or services.
03) Receipt of Goods/Services
A receipt of goods is a document or an instrument which is given by the seller to respective receivers a valid legal paper which proves that goods have been delivered to the customer.
04) Vendor Invoice
Below are the requirements for vendor invoice
Your invoice number - please include your own invoice reference number to help avoid any confusion when tracking an invoice
Invoice date :- Date should be mentioned on the invoice.
Vendor ID number ;- as provided by RRD; your Vendor ID Number is a unique seven digit number assigned to you, and will appear on any Work Order (WO) for services requested by a Project Coordinator
GTS Work Order number;-, as provided to you by a Project Coordinator in a Work Order for the service requested. This number is unique for each assignment. The second element of the WO number is the GTS project number, which may help when referencing the assignment with your Project Coordinator. For example, WO number “1254-42457”
Service performed for GTS:- (translation, editing, proofreading, etc.)
Date of Consignment: – date of consignment should be on the invoice
Rate:- rate must be mentioned on invoice like (per-word, per-page or per-hour).
Total invoice amount mostly on invoices rate amount are on USD currency or local invoices country amount mentioned on it.
Consolidated invoices must include a line item breakdown for each consignment, and reference the WO number pertaining to each consignment.
Banking information applies ONLY to ACH/wire transfer payments.
05) Payment of Invoice
Approved invoices are imported into the Accounts Payable system daily. During approval and import the invoices pass through system validations. If the invoice is successfully imported, payment is issued and mailed to the vendor based on the vendor payment terms displayed in the vendor list of values.
• If the vendor’s payment terms are net cash or the check will be issued and mailed the next day.
• If vendor terms are other than net (snow) cash (e.g., net 30 days), the payment will be issued at a later point within the time period specified by the vendor terms. For example, a vendor with terms of net 30 will be paid within 30 days of the invoice date. Note that the invoice Status will display as Imported. (To determine if payment has been made, use Procurement Inquiry to see if a check number is displayed for the transaction.
For each purchase determine whether a LPO/requisition is sent to the Buyer (Head Office).
Check the completeness of the requisition. All fields should be completed e.g., authorized signature of the station accountant and not the requester, etc
Determine if the requisition meets the MRIP requirements as detailed in section of the procurement policy.
Check if the correct reference code is used.
Determine if requisitions are processed according to the FIFO principle.
Test the efficiency of the processing process i.e. from the time the requisition is received until the time the order is processed.
Determine that for each requisition a request for quotation is prepared and sent to at least four suppliers from the database in the Suppliers Management System.(all quotations should be requested and obtained by the buyer and not the requester).
Ensure that for each requisition; at least four quotations are received. If not check for approval of the Commercial Manager or his designated representative.
Determine if the lowest technically acceptable offer and which has scored the highest adjudication points was accepted.
Check for the following:
Date on requisition should be before that on the quotations and invoices, and Purchase orders are prepared after quotations are received.
Date on the invoices should be after that on the requisition, quotation and purchase order Determine if the receiving person signed the delivery note/invoice as evidence of checking items received. Determine if the function of authorization, ordering and receiving is adequately segregated.
A purchase requisition is a request sent to the purchasing department to procure goods or services. For an audit point of view it should come though proper channel.
02) Purchase Order
A PO is a commercial document issued by a buyer to seller, indicating types, quantities, and agreed prices for products or services the seller will provide to the buyer. Sending a purchase order to a supplier constitutes a legal offer to buy products or services.
03) Receipt of Goods/Services
A receipt of goods is a document or an instrument which is given by the seller to respective receivers a valid legal paper which proves that goods have been delivered to the customer.
04) Vendor Invoice
Below are the requirements for vendor invoice
Your invoice number - please include your own invoice reference number to help avoid any confusion when tracking an invoice
Invoice date :- Date should be mentioned on the invoice.
Vendor ID number ;- as provided by RRD; your Vendor ID Number is a unique seven digit number assigned to you, and will appear on any Work Order (WO) for services requested by a Project Coordinator
GTS Work Order number;-, as provided to you by a Project Coordinator in a Work Order for the service requested. This number is unique for each assignment. The second element of the WO number is the GTS project number, which may help when referencing the assignment with your Project Coordinator. For example, WO number “1254-42457”
Service performed for GTS:- (translation, editing, proofreading, etc.)
Date of Consignment: – date of consignment should be on the invoice
Rate:- rate must be mentioned on invoice like (per-word, per-page or per-hour).
Total invoice amount mostly on invoices rate amount are on USD currency or local invoices country amount mentioned on it.
Consolidated invoices must include a line item breakdown for each consignment, and reference the WO number pertaining to each consignment.
Banking information applies ONLY to ACH/wire transfer payments.
05) Payment of Invoice
Approved invoices are imported into the Accounts Payable system daily. During approval and import the invoices pass through system validations. If the invoice is successfully imported, payment is issued and mailed to the vendor based on the vendor payment terms displayed in the vendor list of values.
• If the vendor’s payment terms are net cash or the check will be issued and mailed the next day.
• If vendor terms are other than net (snow) cash (e.g., net 30 days), the payment will be issued at a later point within the time period specified by the vendor terms. For example, a vendor with terms of net 30 will be paid within 30 days of the invoice date. Note that the invoice Status will display as Imported. (To determine if payment has been made, use Procurement Inquiry to see if a check number is displayed for the transaction.
For each purchase determine whether a LPO/requisition is sent to the Buyer (Head Office).
Check the completeness of the requisition. All fields should be completed e.g., authorized signature of the station accountant and not the requester, etc
Determine if the requisition meets the MRIP requirements as detailed in section of the procurement policy.
Check if the correct reference code is used.
Determine if requisitions are processed according to the FIFO principle.
Test the efficiency of the processing process i.e. from the time the requisition is received until the time the order is processed.
Determine that for each requisition a request for quotation is prepared and sent to at least four suppliers from the database in the Suppliers Management System.(all quotations should be requested and obtained by the buyer and not the requester).
Ensure that for each requisition; at least four quotations are received. If not check for approval of the Commercial Manager or his designated representative.
Determine if the lowest technically acceptable offer and which has scored the highest adjudication points was accepted.
Check for the following:
Date on requisition should be before that on the quotations and invoices, and Purchase orders are prepared after quotations are received.
Date on the invoices should be after that on the requisition, quotation and purchase order Determine if the receiving person signed the delivery note/invoice as evidence of checking items received. Determine if the function of authorization, ordering and receiving is adequately segregated.
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