Risk Control Matrix (RCM) for Procure to pay S. No. 1 Process Procure to pay Sub process Procure to pay Account head Other expenses and trade payable 2 Procure to pay Procure to pay Other expenses and trade payable 3 Procure to pay Procure to pay Other expenses and trade payable 4 Procure to pay Procure to pay 5 Procure to pay 6 Process Owner Entity actual process Risk Control Procurement of goods and services are made based on the annual budgets approved, Approval from HOD and CEO (if required) may not be obtained Procurement of goods or services cannot be done without obtaining and in case of exceptions, based on the approval from the CEO. before availing of services or procurement of goods. approval from HOD and CEO (if required). User of respective department send email request to their HODs, whenever the goods or services are required to be procured. Head of department approves the requisition, if it is as per the annual budget, and in case of exception obtain the CEO approval before approving the procurement request Once the requisition is approved by HOD, quotations are invited from minimum three vendors for procurement of goods or services exceeding Rs. 1 lac. Based on the evaluation of technical and commercial eligibility, vendor that fulfils the technical requirement with lowest commercial is jointly approved by HOD of the user department and Finance controller / CFO. Procurement of goods / services below Rs 1 lac, is made without any quotation, and based on the vendor approved by the HOD of the user department. Quotations may not be invited for the procurements exceeding Procurement of goods or services above Rs 1 lac, can not be made Rs 1 lac. without inviting quotations Other expenses and trade payable Once the vendor is shortlisted, agreement to provide goods / services is executed or Purchased Order is issued to the vendor. The proposed agreement with vendor, is required to be reviewed and approved by the legal team, HOD of the user department and Director operations. In case, purchase order is issued, it is required to be approved by HOD and Director operations. For purchases below Rs 1 lac, no agreement or purchase order is issued by the Company, and order to procure goods or services is placed with vendor through email communication, duly approved by HOD. Agreement with vendor may not be approved by legal team, Agreements with shortlisted vendors are approved by legal team, HOD HOD of the user department and Director operations. of the user department and Director operations, or only by HOD and In case, there is no agreement and purchase order is issued, it Director operations, as the case may be. may not to be approved by HOD and Director operations. Procure to pay Other expenses and trade payable Based on the final selection of the vendor, user departments intimate accounts team for Vendor account is created in Tally without required approval, Accounts team do not create vendor code without requisite creation of vendor account in Tally, and relevant KYC documents i.e. PAN, GSTIN, MSME KYC documents including MSME declaration documents and approvals. declaration, cancelled cheque, vendor registration form, etc., are shared. Based on the KYC document, and approval email for the creation of vendor account, accounts team create the vendor account in Tally. Procure to pay Procure to pay Other expenses and trade payable 7 Procure to pay Procure to pay Other expenses and trade payable 8 Procure to pay Procure to pay Other expenses and trade payable Once the vendor raises the invoice, HOD of user department ensures that the invoice is raised as per the terms of the agreement, i.e. advance invoice, milestone invoice, or invoice on the final delivery of goods or services, and accordingly provide approval to accounts team to book the invoice and process the payment. Accountant, based on the email containing details like approval from HOD, tax invoice, signed contract/PO etc., pass the accounting entry for booking the vendor invoice and making the payment. The accounting entry so passed is than reviewed and approved by the Accounts Head. Once the payment entry is approved, it is forwarded for final payment approval to CFO post which payment is made to the vendor. Shortlisted vendor (based on the quotation) may not be All the shortlisted vendors are approved by both HOD of user approved by both HOD of user department and Finance department and Finance controller / CFO, or only HOD, as the case controller / CFO. may be. Shortlisted vendor (without quotation) may not be approved by HOD of user department. Vendor invoice and payment is accounted without approval Accountant do not account the vendor invoice without obtaining from HOD of user department email approval from HOD of user department Accounting for Vendor invoice and payment may not be correct Accounting entry and the underlying approvals are reviewed and and approved by the Accounts Head. Payment to the vendor is made without approval from CFO Payment MIS is approved by CFO, before each payment cycle, and accordingly payment is released by the accounts team
