ERP Implementation for PTPEC PTPEC Standard Key Process Definitions Guide Function: Purchase Module Client: PT PANGGUNG ELECTRIC CORPORATION, SURABAYA – INDONESIA Prepared By: ITTI Ltd www.itti.co.in Status: Draft PTPEC Standard Key Process Definition Guide -To-Be Model Page: 1 of 59 ERP Implementation for PTPEC Introduction 4 Objective 4 Scope & Coverage 4 Purpose 5 Initiator List 5 Organization Chart (Purchase) 6 Process Flow Chart Local Material Import Material /Spare Parts Jakarta Purchases Sub-ContractingLocal Spare Parts Local Spare Parts Memo Purchase Operation - Warehouse 7 7 8 9 10 11 12 13 Documents Description Purchase Requisition (Permohonan Pembelian) Purchase Order (Order Pembelian/Order Confirmation) Goods Inward Voucher (GIV) Payment Requisition 14 14 14 15 15 Process Definition Local Materials Import Material Import Material Spare Parts Jakarta Purchases Sub-Contracting Memo Purchase 18 18 24 32 38 42 47 Status: Draft PTPEC Standard Key Process Definition Guide -To-Be Model Page: 2 of 59 ERP Implementation for PTPEC Import Spare Parts (1B) Local Spare Parts (1A) Inventory Valuation & Control Status: Draft 49 54 57 PTPEC Standard Key Process Definition Guide -To-Be Model Page: 3 of 59 ERP Implementation for PTPEC Introduction Introduction PT PEC is a $ 50 Million Company, incorporated in 1970, and having it’s Corporate Office at Surabaya, Indonesia. The Company is an integrated manufacturer of Consumer Electronic products like Televisions, Audio Systems, Washing Machines, DVD Players and related accessories like Audio Tapes, Compact Discs, TV Racks, Computer Furniture, Injection moulded Items and so on. It is an ISO 9001 certified Company with approximately 2200 Employees. There are 4 Business Units and 2 Sub Units and the manufacturing facilities of the Company are centrally located at Surabaya, Indonesia. The Distribution and Logistics functions are separately handled by a subsidiary Company, PT Akari Indonesia. The Company’s products are marketed and sold under the brand names “AKARI” and “PANAREC”. PT.PEC is also an OEM Manufacturer for World Class brands like “MAXELL”. The company exports its products to Australia, Europe, South East Asia and Middle East. The Company has Regional Offices and Warehouses at Surabaya & Jakarta and also offices at Australia and Holland. This Document gives the details of PTPEC process definition data definition flow, across all units that will help to implement the Mfg/Pro System according to the PTPEC business standard. Objective Objective The Objective of this document is to explain the To-Be model flow of the purchase and inventory module for Unit 1A & 1B. Scope & & Coverage Coverage Scope Is to understand the transactions & reporting carried out under Purchase & Inventory. This would cover the departments under the Unit 1A & 1B. Find below the list of processes that would be studied under Purchase & Inventory. Purchase Module Local Material Local Spare Import Material Import Spare Parts Jakarta Purchases Purchase Return Memo Status: Draft PTPEC Standard Key Process Definition Guide -To-Be Model Page: 4 of 59 ERP Implementation for PTPEC Local GIV Quality Control Sub-contracting Purpose Purpose The Purpose of this document is to understand the existing model (As-Is Process). This would help in arriving at the To-Be Model, which would be mapped to MFG/PRO. Initiator Initiator List List Purpose: This section lists the codes used to identify users in the Setup and Process Flow documents. This document is often referenced while reading or modifying the Setup and Process Flow documents. SL # 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Status: Draft Division / Department / Section Purchase Department Production Planning and Inventory control Supplier Quality Control Department Unit Warehouse/Godown Exim-Finance Exim Department Marketing Team Sub-Contractor Koperasi General Service Department Parts Control Initiator Description PD PPIC SUPP QCD Purchase Department Production Planning and Inventory control Supplier Quality Control Department GDN EXFN EXD MKT SC KOP GSD Unit Warehouse/Godown Exim-Finance Exim Department Marketing Team Sub-Contractor Koperasi General Service Department PC Parts Control PTPEC Standard Key Process Definition Guide -To-Be Model Page: 5 of 59 ERP Implementation for PTPEC Organization Chart (Purchase) Status: Draft PTPEC Standard Key Process Definition Guide -To-Be Model Page: 6 of 59 ERP Implementation for PTPEC Process Flow Chart Process Flow Chart Local Material Print PR Prepare Purchase Order Order Print Checked by Section Head Approved by Department Head Approve Purchase Requisition Quality Check Godown Supplier Purchase PPIC Prepare PR Status: Draft B Copy of GIV A Original PO Approved by Unit Head Inform Supplier if any discrepancy Verify GIV 1 copy PO filed & copy given to AP A A Inform Supplier C D Material Shipment Verify Surat Jalan with Order SJ vs Unloaded Unload Material B GIV filed & copy to AP A Copy of PO C Receive Material in Godown/Loc Change status to Reject D Print GIV Purchase Return GIV Approval Dept Head N C Approved by Department Head Print RTV Mtl. Returned QC-Pend >QC-Clear Status QC Sampling Stock Status / Receipt Report pending QCCheck B QC Check Y PTPEC Standard Key Process Definition Guide -To-Be Model Page: 7 of 59 ERP Implementation for PTPEC Prepare PR Print PR Checked by Section Head Prepare Purchase Order Order Print Order Approval Unit Head A 1 copy filed & copy given to AP C Copy of GIV A Original PO Verify Packing List with Order/Inv C A Quality Check Godown /Parts Control Supplier Purchase PPIC/Pts Control Import Material /Spare Parts Status: Draft Check PL with Unloaded Qty D Copy of PO Stock Status/ Receipt Report pending QCCheck Change Status to Reject D Inform Supplier Print GIV Purchase Return E Approved by Unit Head /& Director A Print GIT Invoice received by EXIM GIV Entry E B GIV Approval Dept Head Print RTV C Approved by Department Head Purchase Return QC-Pend QCClear Status QC Sampling D Print L/C Req / Remittance Req GIT Entry at landed cost Shipment Material Unload Material GIV filed & copy to AP Inform Supplier if any discrepancy Verify GIV Approve Purchase Requisition Prepare L/C Req/Remittance Req Calculate Add-On Cost B Approved by Department Head QC Check PTPEC Standard Key Process Definition Guide -To-Be Model Page: 8 of 59 ERP Implementation for PTPEC Jakarta Purchases Checked & Approved by Department Head Print PR Copy of approved PR to Purchase - SBY Approve Purchase Requisition Jakarta Prepare PR Copy of PO Warehouse Supplier Purchase (SBY) A B A Copy of GIV Verify GIV Order Print Order Approval Unit Head A 1 copy filed & copy given to AP A Inform Supplier if any discrepancy Original PO Material Shipment Verify Surat Jalan with Order A Status: Draft Prepare Purchase Order Receive PR Unload Material SJ vs Unloaded Receive Material in Godown/Loc Print GIV GIV Approval Dept Head B Copy of PO PTPEC Standard Key Process Definition Guide -To-Be Model Page: 9 of 59 ERP Implementation for PTPEC Sub-Contracting Checked by Section Head Print PR Prepare PO (Converted Item) Order Print Approved by Department Head Approve Purchase Requisition Sub Contract Purchase PPIC Prepare PR C Copy of GIV A Original PO Godown Copy of PO B Verify Finished Mtl D Change status to Reject A Inform Supplier if any discrepancy Verify GIV Unload Material SJ vs Unloaded Reverse Prod Entry E Inform subcontractor D Quality Check Dispatch Mtl to Sub Contractor Approval from Dept Head Receive Material in Godown/Loc Purchase Return Production Entry for Receipt Qty Stock Status / Receipt Report pending QCCheck N D Print GIV Approved by Department Head Print RTV Approved by Department Head C Mtl. Returned QC-Pend >QC-Clear Status QC Sampling Status: Draft E B Print SJ Prepare SJ 1 copy PO filed & Copy given to AP A Send Finished Material to PEC Process Raw Material (Conv) Mtl. Receipt A Order Approval Unit Head QC Check Y PTPEC Standard Key Process Definition Guide -To-Be Model Page: 10 of 59 ERP Implementation for PTPEC Local Spare Parts Parts Control Prepare PR A Purchase Status: Draft B Receive Material in Godown/Loc Copy of PO Receive Purchase Requisition A Checked by Section Head Print PR Procure Material Print GIV Verify Qty with Invoice Approved by Department Head GIV Approval Dept Head Approve Purchase Requisition GIV filed & copy to AP Prepare Purchase Order B Order Print Order Approval Unit Head 1 copy filed & copy given to AP Copy of GIV PTPEC Standard Key Process Definition Guide -To-Be Model Page: 11 of 59 A ERP Implementation for PTPEC Memo Purchase Purchase Prepare PR Checked by Section Head Print PR B Koperasi/GS Godown Status: Draft A Copy of PO Approve Purchase Requisition Copy of GIV Check Qty with PR Receive PR Approved by Department Head Prepare PO Order Print Order Approval Unit Head A Send Material GIV Entry GIV Print GIV Approval Dept Head 1Copy Filed & given to AP Department PTPEC Standard Key Process Definition Guide -To-Be Model B Page: 12 of 59 ERP Implementation for PTPEC Operation - Warehouse GIV Entry Verify Surat Jalan / PL (Local / Import) Unload Material Check SJ/PL with Unloaded Qty Print GIV GIV Entry GIV Approval Dept Head Transfer to Production/Sub-contractor/QC Mtl. Req from Production Prepare SJ Print SJ Approved by WH in-charge Material transferred to Production Return from Production Mtl. Transferred back from Prod. Receipt Entry into Warehouse Print Receipt Note Approved by WH in-charge Receipt from Sub-contractor Verify Surat Jalan Unload Material Check SJ with Unloaded Qty GIV Entry Conversion Print GIV GIV Approval Dept Head Purchase Return Purchase Return Approval Status: Draft Purchase Return Print RTV Approved by Department Head PTPEC Standard Key Process Definition Guide -To-Be Model Page: 13 of 59 ERP Implementation for PTPEC Documents Description Documents Description This section describes the documents involved in processing purchase order. The documents described below are very necessary for the purchase cycle. The documents are 1. Permohonan Pembelian (Purchase Requisition) 2. Order Pembelian (Purchase Order) 3. GIV (Goods Inward Voucher) Purchase Requisition (Permohonan Pembelian) Permohonan Pembilian (PP) is also known as Purchase Requisition. This document is prepared by PPIC and Engneering section. This document will be prepared and issued to the purchasing department whenever there is requirement for such material. All PP issued to Purchasing Department will contain the PP Number. The numbering sequence of PP is as follows: - First characters is the unit identification followed by last digit of the year and Material/Non-Material/Spare Parts Identifier and followed by a running serial number(Specific to unit and material identification). Preparation and Authorization The document is prepared by the respective section, checked by the section head and approved by department head. Purchase Order (Order Pembelian/Order Confirmation) A Purchase Order is a contract with an outside supplier to purchase an amount of a particular product at a known price, due to be delivered on a specified date. After receiving requisition from the respective department, purchase department will contact supplier for the material and carry out price negotiation. After the price negotiation purchase department will prepare the Purchase order. Purchase Order will contain the Order number which is in the below format First character represents unit followed by the identification of order whether for local/import for domestic usage or import for export usage, followed bye year code and running serial number unit specific Multiple Orders can be created for one Permohonan Pembelian (PP) as the material is sourced from multiple suppliers. Status: Draft PTPEC Standard Key Process Definition Guide -To-Be Model Page: 14 of 59 ERP Implementation for PTPEC Preparation and Authorization The document is prepared by purchase department and authorized by unit head. Goods Inward Voucher (GIV) Goods inward voucher is prepared when material arrives at PEC. This document is prepared by Incoming Department or by export warehouse after receiving material from supplier. Goods Inward Voucher will contain the GIV number which is in the below format •LReceipt by Local, AReceipt by Air, SReceipt by Sea •0Non-Mtl,EConsumed for Export, D Consumed for Domestic BPurchase FG •Unit Identification •Month •Year •Running Serial Number (Unit Specific) Preparation and Authorization The document is prepared by Incoming department check and reviewed by the section head and authorized by department head Payment Requisition Purchase department requests finance department to make the payment to the supplier by preparing payment requisition. This document is prepared along with order confirmation. The Payment Requisition contain the following information Header Requisition number LCYUXXXX LCLetter of Credit Y Year U Unit Identification XXXX Running Serial Number Status: Draft PTPEC Standard Key Process Definition Guide -To-Be Model Page: 15 of 59 ERP Implementation for PTPEC Requisition Date Payment Method: There are 4 types of payment method a) LC AT SIGHT: After supplier ships material payment will be made by supplier bank. b) USANCE: After shipment payment will be done after number of days. Amount: Total value to be paid (FOB/XXX/XXX/XXX): Whether shipment is FOB/CIF/CNF Condition LC/TT: LOD (Last Opening Date): LC should be opened before this date LSD (Last Shipping Date): Supplier has to ship the material within LSD. If any discrepancy supplier has to pay for the charges. EXD (Expiry Date): LC Expiry Date. LC Applicant: Owner of LC Credit of: Supplier Name Advising Bank: Supplier Bank Bank A/C No: Supplier Account Number Purpose: Payment for a) Purchase of a material Ref No: Invoice Number Description: Detail Type: Purchasing Material OC NO: Order Number Quantity: Ordered Quantity Unit: Unit of measurement Unit Price: Price per um Amount: Total Item Value Grand Total: Total value of materials Others: Other charges if any Total At Usance: Total value after credit days Footer Remark: Remarks If any Status of Order: Whether order usage will be for local or export Freight Method: There are three types of freight Status: Draft PTPEC Standard Key Process Definition Guide -To-Be Model Page: 16 of 59 ERP Implementation for PTPEC a) FOB: Free on Board b) CIF: Cost Insurance freight (Local Handling + Ocean Freight + Insurance) are included in this freight. c) CNF: Cost and freight Freight Cost: Prepaid: Freight Cost can be CIF or CNF Collected: Freight cost is FOB Shipment From: Source of the shipment To: Destination of the shipment Partial Shipment: Whether partial shipment is allowed or not allowed Transshipment: Transshipment is allowed or not allowed C.O.O: Source shipment country Preparation and Authorization The document is prepared by Purchase Department checked by department head and authorized by unit head. Status: Draft PTPEC Standard Key Process Definition Guide -To-Be Model Page: 17 of 59 ERP Implementation for PTPEC Process Definition Local Materials I. Introduction The purchase department places local Material purchase orders to the supplier after receiving Purchase Requisition from PPIC for Material. This section explains the Local Material purchases. Purchase Requisition should be prepared by PPIC and to be given to purchase department II. Description PPIC prepares Purchase Requisition and gives it to Purchase Department to procure the material. After receiving the requisition from PPIC, purchase department will identify the Supplier(s) and carry out the price negotiation and place the order. One PP can be split into multiple orders based on the type of material and supplier. Purchase department prepares the Purchase Order on finalizing the Order qty. Purchase Order is approved by the Unit Head. Godown receives the material and verifies Purchase Order with Surat Jalan. Godown will unload the material and check the unloaded quantity with order. Godown prepares GIV and prints the GIV. GIV is approved by the Department Head. QC Department verifies the receipt report pending for QC. Godown will issue the material to QC Department for QC Check. QC Department Checks the material. If QC is not cleared then QC informs purchase department. Purchase Department informs supplier about the Quality of the material and informs godown to return the stock to the supplier. III. Process Owner/Primary Responsibility: Purchase Department. IV. Frequency - As required. V. Pre-requisite 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Status: Draft Inventory Control File Inventor Account Maintenance PO Control File (5.24) System Control File (36.1) Product Line Maintenance (1.2.1) Site Master (1.1.13) Location Master (1.1.18) Item Master (1.4.1) Supplier Maintenance (2.3.1) Work Order Control File (16.24) PTPEC Standard Key Process Definition Guide -To-Be Model Page: 18 of 59 ERP Implementation for PTPEC VI. Process Flow SL # Activity PPIC PD SUPP GDN QC Business Rule QAD Menu Option/System 5.1.4 1. Purchase Requisition PPIC/Section prepares PP (purchase requisition). 2. Purchase Requisition Print Print Purchase Requisition. Checked by Section head. Approved by Dept Head. 5.1.X 3. Approval of Purchase Requisition 5.1.16 4. Check Qty/Delivery Date with supplier Prepare Approval Requisition Purchase Requisition given to Purchase Department. Purchase department checks whether supplier is able to deliver Qty at the required date. 5. Price Negotiation Status: Draft If required qty is not within purchase lead time then PP will be give back to PPIC/section for revision Purchase department will carry out the price negotiation with supplier. PTPEC Standard Key Process Definition Guide -To-Be Model PreRequisite 16.24 Work Order Control File 5.1.4 Purchase Requisiti on Reference Document LKP1/LKP2 5.1.4 Purchase Requisiti on Manual Manual Page: 19 of 59 ERP Implementation for PTPEC 6. Purchase Order 7. Print Purchase Order 8. Surat Jalan 9. Material Receipt at PEC 10. Unload Material 11. GIV Entry Status: Draft After the price is negotiated the department head shall confirm the same to place the order. Prepare Purchase Order. Print Purchase Order Authorized by unit Head Original PO copy sent to Supplier. Copy PO will remain in purchase department One Copy of PO will be send to AP Department One Copy of PO will be given to Godown Supplier Prepares Surat Jalan and dispatch material to PEC. Godown will receive the material. Checks Surat Jalan with Purchase Order copy. Verify Unloaded Quantity with Surat Jalan Quantity. GIV Entry Receive Material Godown/Loc in QC- PTPEC Standard Key Process Definition Guide -To-Be Model 5.7 5.24 Purchase Order Control File 5.10 5.7 Purchase Order Manual Manual Manual 5.13.1 5.7 Purchase Page: 20 of 59 ERP Implementation for PTPEC PEND Status. GL Impact Dr Stk Cr POR Order 12. GIV Print Print GIV Approved by Department Head. GIV Filed & Copy to AP Department And another Copy send to Purchase Department 5.13.2 13. Verify GIV Purchase Department verifies GIV Copy with the Order. If any Discrepancy informs Supplier Quality Checks the Receipt Report Pending for QC Check Prepare Surat Jalan. Transfer from Godown to QC Location in QCPEND Status Check Quality of the material. If QC Cleared then Changing status of stock from QC-PEND to QC-CLEAR IF QC is not cleared then Quality informs purchase department. Purchase Department informs supplier. Manual 14. Check Stock Status 15. QC Sampling 16. QC Check 17. QC Failed Status: Draft PTPEC Standard Key Process Definition Guide -To-Be Model GIV Entry 3.6.5 3.4.X 3.1.1 Manual Page: 21 of 59 ERP Implementation for PTPEC 18. Stock Return 19. Stock Return Print Purchase Department informs Godown to return stocks back to supplier. Change the status of the material to reject. Godown returns the Stock to the supplier. GL Impact Dr POR Cr Stock 3.1.1 Inventory Detail Maintenance 5.13.7 Purchase Order Returns Print Stock Return. Approved by Department Head 5.13.8 Purchase Return Print VII. Explanation of Activities 1. 2. 3. 4. 5. 6. Purchase Requisition will be prepared by PPIC for the procurement of material. Print the purchase requisition by PPIC, Requisition checked by section head and approved by department head. Approve purchase requisition in system after getting approval from department head. Purchase Requisition to purchase department. Purchase Department on receipt of purchase requisition prepares purchase order attaching the purchase requisition number to the order. Print the purchase order approved by unit head. Original PO given to Supplier PO Copy filed and another copy given to AP Department and Godown. On Receipt of material Godown receives the material checks the surat Jalan with the order. If the documents are not matching inform purchase department. 7. If the Documents are matching then unload the material and verify the quantity unloaded with the invoice. 8. Make a GIV Entry, in this transaction the stocks will be moved from in-transit to the respective Godown location. GL impact will Dr Stock (Material Val + VAT(If any) ) Cr POR 9. Print the GIV, GIV is checked by the section head and approved by department head. Copy of GIV given to purchase department. 10. Purchase Department verifies the GIV with the order quantity. 11. QC Department takes the stock status report for inventory status “QC-PEND” for the unit. Status: Draft PTPEC Standard Key Process Definition Guide -To-Be Model Page: 22 of 59 ERP Implementation for PTPEC 12. QC Department takes the samples of items for testing QC from GODOWN. Godown prepares the Surat Jalan for the transfer of the material from Godown to QC Location with the Inventory status as “QC-PEND”. 13. Prints the Surat Jalan verified by department head. 14. QC checks the material and confirms the material is QC-Cleared or QC-Failed to the Godown. 15. After getting the confirmation from the QC Department. Godown transfers the total quantity to the “QC-CLEAR” Status. 16. If QC Failed then QC Department informs the purchase department about status of QC failed material. 17. Purchase department informs supplier and informs Godown to return the stock to the supplier. 18. Print the return to vendor document authorized by department head. Status: Draft PTPEC Standard Key Process Definition Guide -To-Be Model Page: 23 of 59 ERP Implementation for PTPEC Import Material I. Introduction The purchase department places import material purchase orders to the supplier after receiving purchase requisition from PPIC. II. Description PPIC prepares Purchase Requisition for materials and gives it to Purchase Department to procure the material. After receiving the requisition from PPIC, purchase department will verify the stock. If the stock on hand exceeds more than 3/4 th of the next months requirement then purchase department will send the PP back to PPIC for revision One PP can be split into multiple orders based on the type of material and supplier. Purchase department prepares the Purchase Order on finalizing the Order qty. OC is approved by the Unit Head. On Receipt of invoice from supplier Purchase department makes a GIT Entry. Godown receives the material and verifies Order Confirmation with Packing List. Godown will unload the material and check the unloaded quantity with order. Godown prepares GIV and prints the GIV. GIV is approved by the Department Head. QC Department verifies the receipt report pending for QC. Godown will issue the material to QC Department for QC Check. QC Department Checks the material. If QC is not cleared then QC informs purchase department. Purchase Department informs supplier about the Quality of the material and informs godown to return the stock to the supplier. III. Process Owner/Primary Responsibility: Purchase Department. IV. Frequency - As required. V. Pre-requisite 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Status: Draft Inventory Control File Inventor Account Maintenance PO Control File (5.24) System Control File (36.1) Product Line Maintenance (1.2.1) Site Master (1.1.13) Location Master (1.1.18) Item Master (1.4.1) Supplier Maintenance (2.3.1) Work Order Control File (16.24) PTPEC Standard Key Process Definition Guide -To-Be Model Page: 24 of 59 ERP Implementation for PTPEC VI. Process Flow SL # Activity PPIC PD SUPP EXFN GDN QC Business Rule 1. Purchase Requisition PPIC prepares Purchase Requisition 2. Purchase Requisition Print 3. Approval Print Purchase Requisition. Checked by Section head. Approved by Dept Head. Purchase Requisition given to Purchase Department. Approval Requisition 4. Stock Position Stock Position entry to enter the planned consumption quantity. 5. Stock Position Print 6. Check Qty/Delivery Date with supplier Stock Position Print. Given to Purchase Department Purchase Department checks the Stock Position. Stock On Hand at any point of time should not exceed more than Status: Draft QAD Menu Option/System 5.1.4 Purchase Requisition Maintenance PreRequisite 5.24 Purchase Order Control File 5.1.X 5.1.4 Purchase Requisitio n 5.1.16 Requisition Approval Maintenance 5.1.X 5.1.4 Purchase Requisitio n PTPEC Standard Key Process Definition Guide -To-Be Model Reference Document Imp2 Imp1 5.1.X Manual Page: 25 of 59 ERP Implementation for PTPEC 3/4th of next month’s requirement. If exceeds then PR is given back to PPIC for revision. Send Required Qty and Required Date to supplier by mail/fax. Purchase department checks whether supplier is able to deliver Qty at the required date. Purchase department will carry out the price negotiation with supplier and fix the price for the order. 7. Price Negotiation 8. Proforma Invoice Receive Proforma Invoice from supplier for preparation of order 9. Order Confirmation After Receipt of Proforma Invoice Prepare Order Confirmation. 10. Order Print Purchase Order Print. Authorized by Unit Head. Original PO given to supplier One copy filed to Godown & Finance Status: Draft PTPEC Standard Key Process Definition Guide -To-Be Model Manual Manual Imp3 5.7 5.1.4 Purchase Requisitio n 5.10 Purchase Order Print 5.7 Purchase Order Imp4 Page: 26 of 59 ERP Implementation for PTPEC Department 11. 12. Prepare Payment Requisition for LC or Remittance Requisition for TT Payment Requisition / Remittance Requisition Print 13. LC Opening/Bank advise 14. Shipping Documents Status: Draft Prepare Payment Requisition. 5.1.X 5.7 Purchase Order Print LC Payment / Remittance Requisition. Checked by Department head. Authorized by Unit Head or Managing Director/Finance Director. Send to Finance Department On Opening LC Finance department will send the copy of opened LC/TT to purchase department. Purchase Department sends the copy of LC/TT to Supplier. 5.1.X 5.7 Purchase Order On Receipt of LC/RR Supplier sends shipping documents to EXIM Department Exim Sends a copy of Shipping documents to Godown & Purchase Department. PTPEC Standard Key Process Definition Guide -To-Be Model Imp5 Manual Manual GIVS3 GIVS4 Page: 27 of 59 ERP Implementation for PTPEC 15. GIT Entry 16. Receipt of Material 17. Unload Material 18. GIV Entry GIV Entry Transfer Stocks from Intransit to Godown/Loc in QCPEND Status. GL Impact Dr Stk Cr GIT 5.13.X GIT Entry 19. GIV Print Print GIV Approved by Department Head. GIV Filed & Copy to AP Department And another Copy send to Purchase Department 5.13.2 GIV Entry Status: Draft Purchase department makes GIT Entry. Receipt of stock will be in intransit location GL Impact Dr GIT (Mtl + Add-on) Cr Add-on Charges Cr POR On Receipt of Material from supplier. Godown checks packing list, bill of lading with the order/invoice Verify Unloaded Quantity with Surat Jalan Quantity. PTPEC Standard Key Process Definition Guide -To-Be Model 5.13.1 Purchase Order Receipts 5.7 Purchase Order Maintenan ce Manual Manual Page: 28 of 59 ERP Implementation for PTPEC 20. Verify GIV Purchase Department verifies GIV Copy with the Order. If any Discrepancy informs Supplier. Manual 21. Check Stock Status Quality Checks the Receipt Report Pending for QC Check 3.6.5 22. QC Sampling 3.4.X Surat Jalan 23. QC Check Prepare Surat Jalan by Godown. Transfer from Godown to QC Location in QCPEND Status Check Quality of the material. If QC Cleared then Changing status of stock from QC-PEND to QC-CLEAR 24. QC Failed 25. Stock Return Status: Draft IF QC is not cleared then Quality informs purchase department. Purchase Department informs supplier. Purchase Department informs Godown to return stocks back to supplier. Change the status of the material to Reject. Godown returns the Stock to the supplier. 3.1.1 Inventory Detail Maintenance Manual 3.1.1 Inventory Detail Maintenance PTPEC Standard Key Process Definition Guide -To-Be Model Page: 29 of 59 ERP Implementation for PTPEC 26. Stock Return Print GL Impact Dr POR Cr Stock 5.13.7 Purchase Order Return Print Stock Return. Approved by Department Head 5.13.8 Purchase Return Print VII. Explanation of Activities 1. 2. 3. 4. 5. 6. 7. Purchase Requisition will be prepared by PPIC for the procurement of material Print the purchase requisition by PPIC, Requisition checked by section head and approved by department head. Entry in Stock position of the usage of the raw material. Print the stock position and send it to purchase department Approve purchase requisition in system after getting approval from department head. Purchase Requisition send to purchase department. Purchase Department on receipt of purchase requisition prepares purchase order attaching the purchase requisition number to the order. Print the purchase order & approved by unit head. Original PO given to Supplier PO Copy filed and another copy given to AP Department and Godown. 8. Prepare LC payment requisition attaching multiple orders to the requisition. 9. Print the LC payment requisition, requisition checked by department head and approved by unit head. LC Payment requisition given to finance department. 10. On Opening LC Finance department will send the copy of opened LC/TT to purchase department. Purchase Department sends the copy of LC/TT to Supplier. 11. Supplier on receipt of LC copy delivers the goods and sends the shipping documents to the exim department. 12. Exim Department sends the copy of shipping documents to the purchase department. Purchase department makes GIT entry. When Doing GIT Entry the other add-on charges will be entered and confirm the GIT transaction. In this transaction the stocks will be received in in-transit location of the unit with the inventory status as QC-PEND. GL impact will Dr GIT (Material Val + Add-on Charge) Cr POR Cr Add-on Charge 13. On Receipt of material Godown receives the material checks the invoice with the shipping documents. If the documents are not matching inform purchase department. 14. If the Documents are matching then unload the material and verify the quantity unloaded with the invoice. 15. Make a GIV Entry, in this transaction the stocks will be moved from in-transit to the respective Godown location. Status: Draft PTPEC Standard Key Process Definition Guide -To-Be Model Page: 30 of 59 ERP Implementation for PTPEC GL impact will Dr Stock (Material Val + Add-on Charge) Cr GIT 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. Print the GIV, GIV is checked by the section head and approved by department head. Copy of GIV given to purchase department. Purchase Department verifies the GIV with the order quantity. QC Department takes the stock status report for inventory status “QC-PEND” for the unit. QC Department takes the samples of items for testing QC from GODOWN. Godown prepares the Surat Jalan for the transfer of the material from Godown to QC Location with the Inventory status as “QC-PEND”. Prints the Surat Jalan verified by department head. QC checks the material and confirms the material is QC-Cleared or QC-Failed to the Godown. After getting the confirmation from the QC Department. Godown transfers the total quantity to the “QC-CLEAR” Status. If QC Failed then QC Department informs the purchase department about status of QC failed material. Purchase department informs supplier and informs Godown to return the stock to the supplier. Print the return to vendor document authorized by department head. Status: Draft PTPEC Standard Key Process Definition Guide -To-Be Model Page: 31 of 59 ERP Implementation for PTPEC Import Material Spare Parts I. Introduction The purchase department places import material purchase orders to the supplier after receiving purchase requisition from PPIC. II. Description Parts Control prepares Purchase Requisition for materials and gives it to Purchase Department to procure the material. One PP can be split into multiple orders based on the type of material and supplier. Purchase department prepares the Purchase Order on finalizing the Order qty. OC is approved by the Unit Head. On Receipt of invoice from supplier purchase department makes a GIT Entry. Godown receives the material and verifies Order Confirmation with Packing List. Godown will unload the material and check the unloaded quantity with order. Godown prepares GIV and prints the GIV. GIV is approved by the Department Head. QC Department verifies the receipt report pending for QC. Godown will issue the material to QC Department for QC Check. QC Department Checks the material. If QC is not cleared then QC informs purchase department. Purchase Department informs supplier about the Quality of the material and informs godown to return the stock to the supplier. III. Process Owner/Primary Responsibility: Purchase Department. IV. Frequency - As required. V. Pre-requisite 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Inventory Control File Inventor Account Maintenance PO Control File (5.24) System Control File (36.1) Product Line Maintenance (1.2.1) Site Master (1.1.13) Location Master (1.1.18) Item Master (1.4.1) Supplier Maintenance (2.3.1) Work Order Control File (16.24) VI. Process Flow Status: Draft PTPEC Standard Key Process Definition Guide -To-Be Model Page: 32 of 59 ERP Implementation for PTPEC SL # 1. Activity PC PD SUPP EXFN Business Rule Purchase Requisition Parts Control prepares Purchase Requisition 2. Purchase Requisition Print Print Purchase Requisition. Checked by Section head. Approved by Dept Head. 3. Approval 4. Check Qty/Delivery Date with supplier Approval Requisition Purchase Requisition given to Purchase Department. Send Required Qty and Required Date to supplier by mail/fax. 5. Price Negotiation 6. Proforma Invoice Status: Draft Purchase department checks whether supplier is able to deliver Qty at the required date. Purchase department will carry out the price negotiation with supplier and fix the price for the order. Receive Proforma Invoice from supplier QAD Menu Option/System 5.1.4 Purchase Requisition Maintenance PreRequisite 5.24 Purchase Order Control File 5.1.X 5.1.4 Purchase Requisitio n 5.1.16 Requisition Approval Maintenance Manual 5.1.4 Purchase Requisitio n Reference Document Imp2 Manual Manual PTPEC Standard Key Process Definition Guide -To-Be Model Imp3 Page: 33 of 59 ERP Implementation for PTPEC for preparation of order After Receipt of Proforma Invoice Prepare Order Confirmation. 7. Order Confirmation 8. Order Print Purchase Order Print. Authorized by Unit Head. Original PO given to supplier One copy filed & copy given to parts control Finance Department 9. Prepare Payment Requisition for LC or Remittance Requisition for TT Payment Requisition / Remittance Requisition Print 10. 11. Status: Draft LC Opening/Bank advise 5.7 5.1.4 Purchase Requisitio n 5.10 Purchase Order Print 5.7 Purchase Order Prepare Payment Requisition. 5.1.X 5.7 Purchase Order Print LC Payment / Remittance Requisition. Checked by Department head. Authorized by Unit Head or Managing Director/Finance Director. Send to Finance Department On Opening LC or Bank Advise Finance department will send 5.1.X 5.7 Purchase Order Imp4 Imp5 Manual PTPEC Standard Key Process Definition Guide -To-Be Model Page: 34 of 59 ERP Implementation for PTPEC the copy of opened LC/TT to purchase department. Purchase Department sends the copy of LC/TT to Supplier. 12. Shipping Documents 13. GIT Entry 14. Receipt of Material 15. Unload Material 16. GIV Entry Status: Draft On Receipt of LC/RR Supplier sends shipping documents to EXIM Department Exim Sends a copy of Shipping documents to Godown & Purchase Department. Purchase department makes GIT Entry. Receipt of stock will be in intransit location GL Impact Dr GIT (Mtl + Add-on) Cr Add-on Charges Cr POR On Receipt of Material from supplier. Godown checks packing list, bill of lading with the order/invoice Verify Unloaded Quantity with Surat Jalan Quantity. GIV Entry Transfer Stocks from Intransit to Godown/Loc in QCPEND Status. Manual 5.13.1 Purchase Order Receipts GIVS3 GIVS4 5.7 Purchase Order Maintenan ce Manual Manual 5.13.X GIT Entry PTPEC Standard Key Process Definition Guide -To-Be Model Page: 35 of 59 ERP Implementation for PTPEC 17. GIV Print 18. Verify GIV GL Impact Dr Stk Cr GIT Print GIV Approved by Department Head. GIV Filed & Copy to AP Department And another Copy send to Purchase Department Purchase Department verifies GIV Copy with the Order. If any Discrepancy informs Supplier. 5.13.2 GIV Entry Manual VII. Explanation of Activities 1. 2. 3. 4. 5. 6. 7. 8. 9. Purchase Requisition will be prepared by parts control for the procurement of material Print the purchase requisition by parts control, Requisition checked by section head and approved by department head. Approve purchase requisition in system after getting approval from department head. Purchase Requisition send to purchase department. Purchase Department on receipt of purchase requisition prepares purchase order attaching the purchase requisition number to the order. Print the purchase order & approved by unit head. Original PO given to Supplier PO Copy filed and another copy given to AP Department and Godown. Prepare LC payment requisition attaching multiple orders to the requisition. Print the LC payment requisition, requisition checked by department head and approved by unit head. LC Payment requisition given to finance department. On Opening LC Finance department will send the copy of opened LC/TT to purchase department. Purchase Department sends the copy of LC/TT to Supplier. Supplier on receipt of LC copy delivers the goods and sends the shipping documents to the exim department. Status: Draft PTPEC Standard Key Process Definition Guide -To-Be Model Page: 36 of 59 ERP Implementation for PTPEC 10. Exim Department sends the copy of shipping documents to the purchase department. Purchase department makes GIT entry. When Doing GIT Entry the other add-on charges will be entered and confirm the GIT transaction. In this transaction the stocks will be received in in-transit location of the unit with the inventory status as QC-PEND. GL impact will Dr GIT (Material Val + Add-on Charge) Cr POR Cr Add-on Charge 11. On Receipt of material Godown receives the material checks the invoice with the shipping documents. If the documents are not matching inform purchase department. 12. If the Documents are matching then unload the material and verify the quantity unloaded with the invoice. 13. Make a GIV Entry, in this transaction the stocks will be moved from in-transit to the respective Godown location. GL impact will Dr Stock (Material Val + Add-on Charge) Cr GIT 14. Print the GIV, GIV is checked by the section head and approved by department head. Copy of GIV given to purchase department. 15. Purchase Department verifies the GIV with the order quantity. Status: Draft PTPEC Standard Key Process Definition Guide -To-Be Model Page: 37 of 59 ERP Implementation for PTPEC Jakarta Purchases I. Introduction Jakarta marketing team prepares the Purchase Requisition to procure material. Purchase Department (Sby) raises the purchase order for the material. Original PO will be sent to the supplier the copy of PO filed in purchase department. II. Description Marketing team prepares the Purchase Requisition. A Copy of Purchase Requisition will be send to Purchase Department (SBY). Purchase department (sby) prepares Purchase Order. Original PO will be given supplier. When Jakarta receives material copy of Surat Jalan will be send to purchase department requesting for payment to the supplier. On Receipt of material, Jakarta sends the Surat Jalan Purchase Department. Purchase Department sends the copy of Surat Jalan of Godown, Godown will verify the Surat Jalan with purchase order and prepare GIV approved by department head. III. Process Owner/Primary Responsibility: Purchase Department. IV. Frequency - As required. V. Pre-requisite 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Inventory Control File Inventor Account Maintenance PO Control File (5.24) System Control File (36.1) Product Line Maintenance (1.2.1) Site Master (1.1.13) Location Master (1.1.18) Item Master (1.4.1) Supplier Maintenance (2.3.1) Work Order Control File (16.24) VI. Process Flow Status: Draft PTPEC Standard Key Process Definition Guide -To-Be Model Page: 38 of 59 ERP Implementation for PTPEC SL # Status: Draft Activity MKT PD PPIC GDN Business Rule QAD Menu Option/System 5.1.4 Purchase Requisition Maintenance PreRequisite 5.24 Purchase Order Control File 5.1.X 5.1.4 Purchase Requisition 5.1.16 Approval Requisition 5.1.4 Purchase Requisition Reference Document JP1 JP2 1. Prepare Purchase Requisition Marketing team of Jakarta prepares the Purchase Requisition. 2. Print Purchase Requisition 3. Approval Print Purchase Requisition. Checked by Section head. Approved by Dept Head. Department (SBY). Prepare Approval Requisition. Purchase Requisition given to Purchase. 4. Prepare Purchase Order Purchase department receives the Purchase Requisition Prepares Purchase Order 5.7 Purchase Order 5.1.4 Purchase Requisition 5. Purchase Order Print Print Purchase Order Authorized by Unit Head. Original PO given to supplier One copy filed to Godown & Finance Department 5.10 Purchase Order Print 5.7 Purchase Order Maintenance PTPEC Standard Key Process Definition Guide -To-Be Model Page: 39 of 59 ERP Implementation for PTPEC 6. Material Receipt in JKT 7. GIV 8. GIV Print After Material is received in Jakarta. Jakarta records the Purchase Requisition Number in Surat Jalan and fax the copy to the Purchase Department Purchase Department sends the copy to Godown. Godown receives the Surat Jalan and prepares GIV. GIV Print Manual 5.13.1 Purchase Order Receipts 5.7 Purchase Order 5.13.X GIV Print 5.13.1 Purchase Order Receipt VII. Explanation of Activities 1. Purchase Requisition will be prepared by marketing team in Jakarta for the procurement of material. 2. Print the purchase requisition by marketing team (Jakarta), Requisition checked by section head and approved by department head. 3. Approve purchase requisition in system after getting approval from department head. Purchase Requisition send to purchase department (Surabaya). 4. Purchase Department (SBY) on receipt of purchase requisition from Jakarta prepares purchase order attaching the purchase requisition number to the order. 5. Print the purchase order & approved by unit head. Original PO given to Supplier PO Copy filed and another copy given to AP Department and Godown. 6. After Material is received in Jakarta. Jakarta records the Purchase Requisition Number in Surat Jalan and fax the copy to the Purchase Department (Sby). Copy of Surat Jalan given to Godown. Status: Draft PTPEC Standard Key Process Definition Guide -To-Be Model Page: 40 of 59 ERP Implementation for PTPEC 7. Godown on receipt of Surat Jalan makes a GIV Entry. GL impact will Dr Stock (Material Val + Add-on Charge) Cr POR 8. GIV Print, Checked by the section head and approved by department head. Status: Draft PTPEC Standard Key Process Definition Guide -To-Be Model Page: 41 of 59 ERP Implementation for PTPEC Sub-Contracting I. Introduction Plastic used as the raw material to make the C-Zero and PS-Case for unit 1A. Unit 5 makes PS-Case with a very less quantity, which will not fulfill the requirement of the production so unit gives it to sub-contracts. PEC has 3 sub contractors’. One Sub contractor in Jakarta branch and two sub contractors in surabaya. II. Description PEC sends raw material i.e plastic to the Sub Contractor to manufacture the C-zero and P-Case. PPIC prepares PP based on the production plan for sub-contractor. Purchase Requisition is authorized by department head and given to purchase department. Purchase Department prepares Purchase Order. Purchase order is authorized by unit head. Original PO is sent to supplier and copy of PO sent to Godown. Godown prepares Delivery Order for raw material going out of PEC to sub contract. On Receipt of material Godown will unload the material and check the unloaded quantity with order. Godown prepares GIV and prints the GIV. GIV is approved by the Department Head. QC Department verifies the receipt report pending for QC. Godown will issue the material to QC Department for QC Check. QC Department Checks the material. If QC is not cleared then QC informs purchase department. Purchase Department informs supplier about the Quality of the material and informs godown to return the stock to the supplier. III. Process Owner/Primary Responsibility: Purchase Department. IV. Frequency - As required. V. Pre-requisite 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Status: Draft Inventory Control File Inventor Account Maintenance PO Control File (5.24) System Control File (36.1) Product Line Maintenance (1.2.1) Site Master (1.1.13) Location Master (1.1.18) Item Master (1.4.1) Supplier Maintenance (2.3.1) Work Order Control File (16.24) PTPEC Standard Key Process Definition Guide -To-Be Model Page: 42 of 59 ERP Implementation for PTPEC VI. Process Flow SL # Status: Draft Activity PPIC SC PD GDN QC Business Rule QAD Menu Option/System Manual PreRequisite 1. Price Negotiation Price is Negotiated by purchase department with the Sub-Contractor 2. Prepares Target production report PPIC Prepares Target production for each of the subcontractor monthly Manual 3. Purchase Requisition Based on the target production for each sub-contractor. PPIC prepares Purchase Requisition 5.1.4 Purchase Requisition 5.24 Purchase Order Control 4. Purchase Requisition Print Print Purchase Requisition. Checked by Section head. Approved by Dept Head. Purchase Requisition given to Purchase Department. 5.1.X Purchase Requisition Print 5.1.4 Purchase Requisiti on PTPEC Standard Key Process Definition Guide -To-Be Model Reference Document SB4 SB5 SB7 Page: 43 of 59 ERP Implementation for PTPEC Status: Draft 5. Purchase Requisition Approval Approval of Purchase Requisition. 5.1.16 Approval Purchase Requisition 5.1.4 Purchase Requisiti on 6. Purchase Order Purchase Department prepares Purchase Order for the conversion item 5.7 Purchase Order 5.1.4 Purchase Requisito n 7. Purchase Order Print Print Purchase Order Authorized by Unit Head. Original PO given to supplier One copy filed to Godown & Finance Department 5.10 Purchase Order Print 5.7 Purchase Order 8. Surat Jalan Godown Prepares Surat Jalan Transfer Material from Godown to sub contract location. 5.13.X Prepare Surat Jalan 9. Surat Jalan Print Print Surat Jalan Approved by department head. Sends the Raw material to Sub Contractor with Surat Jalan. 5.13.X Surat Jalan Print PTPEC Standard Key Process Definition Guide -To-Be Model SB8 SB3 5.13.X Surat Jalan Page: 44 of 59 ERP Implementation for PTPEC Status: Draft 10. Material Receipt On Material Receipt from Sub Contractor. Godown Verifies Surat Jalan. Manual 11. Unload Material Godown verifies the unloaded quantity with Surat Jalan quantity. 12. QC Check QC takes some samples for Quality test of the material delivered by sub contractor Manual 13. QC Cleared If QC Cleared then QC Department informs Godown. Manual 14. GIV Entry GIV Entry made by Godown. Receive converted material in sub contract location. Do Work Order Back flush for the Sub Contracted item. Consuming Plastic and Converted item 5.13.1 Purchase Order Receipts 18.14 RLT PTPEC Standard Key Process Definition Guide -To-Be Model Page: 45 of 59 ERP Implementation for PTPEC 15. QC Failed IF QC is not cleared then Quality informs purchase department. Purchase Department informs supplier. Purchase Department informs Godown to return stocks back to supplier. Manual VII. Explanation of Activities 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Status: Draft If Sub contractor requests for the revision of price purchase department will negotiate the price. PPIC prepares Target Production for each sub contractor. Based on the requirement PPIC prepares Purchase Requisition and sends it to purchase department. PPIC Prints the Purchase requisition which is checked by section head and approved by department head. After purchase requisition is being approved by department head then purchase requisition is been approved by PPIC. Purchase Requisition is being sent to purchase department. Purchase department on receipt of purchase requisition prepares Purchase Order. Print the purchase order and authorized by unit head. Original PO will be given to supplier. Copy of PO filed in purchase department and another two copies to AP Department and Godown. On receipt of purchase order copy from purchase department Godown prepares Surat Jalan to transfer the material from Godown to sub contract location. Print Surat Jalan, Surat Jalan is approved by department head. On material receipt of the converted item from sub contract, Godown verifies Surat Jalan with the order. Godown unloads the material and verifies the unloaded quantity with the Surat Jalan. Quality department checks the material delivered by the sub contractor. If quality clears the QC then inform Godown. Godown makes the GIV Entry for the unloaded material. Receive converted material in sub contract location. Do Work Order Back flush for the Sub Contracted item. Consuming Plastic and Converted item. If QC failed then return back the stocks to the sub contractor. PTPEC Standard Key Process Definition Guide -To-Be Model Page: 46 of 59 ERP Implementation for PTPEC Memo Purchase I. Introduction Memo Purchases will be done for the items, which are not part of inventory like Stationery, Pens Office equipments. II. Description Purchase department will raise the requisition for the memo purchases give the requisition to the koperasi / GSD. On Receipt of material Purchase department prepares the purchase order. Print the purchase order and approved by unit head. Copy of Purchase order sent to Godown for preparation of GIV. Godown prepares GIV print the GIV, which is approved by department head. III. Process Owner/Primary Responsibility: Purchase Department. IV. Frequency - As required. V. Pre-requisite 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Inventory Control File Inventor Account Maintenance PO Control File (5.24) System Control File (36.1) Product Line Maintenance (1.2.1) Site Master (1.1.13) Location Master (1.1.18) Item Master (1.4.1) Supplier Maintenance (2.3.1) Work Order Control File (16.24) VI. Process Flow SL # 1. Status: Draft Activity Prepare Purchase Requisition PD KOP GDN Business Rule Purchase department prepares purchase requisition QAD Menu Option/System 5.1.4 Purchase Requisition PTPEC Standard Key Process Definition Guide -To-Be Model PreRequisite 5.24 Purchase Order Control File Reference Document Page: 47 of 59 ERP Implementation for PTPEC 2. Print Purchase Requisition 3. On Receipt of Material 4. Purchase Order 5. Print Purchase Order 6. GIV 7. GIV Print Print Purchase Requisition Checked by section head. Authorized by Department Head. Send it to Koperasi Purchase Department checks the material with the purchase requisition. 5.1.X 5.1.4 Purchase Requisition Manual GIVM1 GIVM1 Prepare purchase order Print Purchase Order. Authorized by unit head. Copy given to Godown. Godown receives the copy of PO. Prepares GIV. Print GIV. Approved by Department Head. VII. Explanation of Activities 1. 2. 3. 4. 5. 6. 7. Status: Draft Purchase Department prepares the purchase requisition for the memo items. Print purchase requisition checked by section head and approved by department head. Send it to koperasi for the material. Koperasi delivers the material as per the requisition along with GIV. Purchase department checks the material as per the requisition. Purchase Department prepares purchase order for the received materials. Print the purchase order authorized by unit head. Send the purchase order to Godown. Godown on receipt of purchase order copy prepares GIV for the order. Print the GIV approved by department head. PTPEC Standard Key Process Definition Guide -To-Be Model Page: 48 of 59 ERP Implementation for PTPEC Import Spare Parts (1B) I. Introduction The purchase department places import spare parts purchase orders to the supplier after receiving the request from the production engineer. II. Description Spare parts request will be given by production engineers. Purchase department will check the availability of spare parts with different suppliers. Supplier will prepare the price quotation and send to purchase department. Purchase department prepares purchase requisition. Prints the purchase requisition checked by section and approved by department head. After preparing purchase requisition prepares purchase order. Prints the purchase order approved by unit head. On Receipt of invoice from supplier Purchase makes a GIT Entry. Godown receives the material and verifies Order Confirmation with Packing List. Godown will unload the material and check the unloaded quantity with order. Godown prepares GIV and prints the GIV. GIV is approved by the Department Head. III. Process Owner/Primary Responsibility: Purchase Department. IV. Frequency - As required. V. Pre-requisite 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Inventory Control File Inventor Account Maintenance PO Control File (5.24) System Control File (36.1) Product Line Maintenance (1.2.1) Site Master (1.1.13) Location Master (1.1.18) Item Master (1.4.1) Supplier Maintenance (2.3.1) Work Order Control File (16.24) VI. Process Flow Status: Draft PTPEC Standard Key Process Definition Guide -To-Be Model Page: 49 of 59 ERP Implementation for PTPEC SL # Status: Draft Activity Eng PD FD Supp GDN Business Rule 1. Requisition 2. Negotiate with Supplier 3. Purchase Requisition Prepare purchase requisition. 4. Print Purchase Requisition 5. Approval Purchase Requisition Print purchase requisition. Checked by section head. Approved by department head. Approval of Purchase requisition. 6. Prepare Purchase Order Prepare Purchase Order. 7. Print Purchase Order Print the Purchase Order. Authorized by Unit QAD Menu Option/System PreRequisite Reference Document Production department will inform the purchase department about the requirement of the spare parts. Purchase Department will identify the supplier and place the order. Supplier sends the price quotation. Certain suppliers include bank charges in the price quotation. PTPEC Standard Key Process Definition Guide -To-Be Model Page: 50 of 59 ERP Implementation for PTPEC Head. Send Original to the supplier. PO Copy filed and given to Godown & AP Department. 8. 9. Prepare Payment Requisition for LC or Remittance Requisition for TT Payment Requisition / Remittance Requisition Print 10. LC Opening/Bank advise 11. Shipping Documents Status: Draft Prepare Payment Requisition/TT Requisition. Print LC Payment / Remittance Requisition. Checked by Department head. Authorized by Unit Head or Managing Director/Finance Director. Send to Finance Department On Opening LC or Bank Advise Finance department will send the copy of opened LC/TT to purchase department. Purchase Department sends the copy of LC/TT to Supplier. On Receipt of LC/RR Supplier sends shipping documents to EXIM Department Exim Sends a copy PTPEC Standard Key Process Definition Guide -To-Be Model Page: 51 of 59 ERP Implementation for PTPEC 12. GIT Entry 13. Receipt of Material 14. GIV 15. GIV Print of Shipping documents to Godown & Purchase Department. Purchase department makes GIT Entry. Receipt of stock will be in intransit location GL Impact Dr GIT (Mtl + Addon) Cr Add-on Charges Cr POR Purchase department receives material along with Invoice checks the quantity with the invoice. And sends the copy of invoice to Godown GIV Entry. Transfer of material from In-transit to Godown location. GIV Print Checked by section head. Approved by department head VII. Explanation of Activities 1. Production department informs the requests for the spare parts to the purchase department. 2. Purchase Department will identify the supplier and place the order. Supplier sends the price quotation. Department head verifies the price quotation and approves to the price quotation. 3. Purchase requisition is prepared by purchase department. Status: Draft PTPEC Standard Key Process Definition Guide -To-Be Model Page: 52 of 59 ERP Implementation for PTPEC 4. 5. 6. 7. 8. 9. 10. 11. 12. Purchase department prints the purchase requisition, checked by section head and approved by department head. Approve purchase requisition in system after getting approval from department head. Prepares purchase order attaching the purchase requisition number to the order. Print the purchase order & approved by unit head. Original PO given to Supplier PO Copy filed and another copy given to AP Department and Godown Prepare LC payment requisition attaching multiple orders to the requisition. Print the LC payment requisition, requisition checked by department head and approved by unit head. LC Payment requisition given to finance department. On Opening LC Finance department will send the copy of opened LC/TT to purchase department. Purchase Department sends the copy of LC/TT to Supplier Supplier on receipt of LC copy delivers the goods and sends the shipping documents to the exim department. Exim Department sends the copy of shipping documents to the purchase department. Purchase department makes GIT entry. When Doing GIT Entry the other add-on charges will be entered and confirm the GIT transaction. In this transaction the stocks will be received in in-transit location of the unit with the inventory status as QC-PEND. GL impact will Dr GIT (Material Val + Add-on Charge) Cr POR Cr Add-on Charge 13. On Receipt of material purchase department receives the material checks the invoice with the shipping documents. Send the invoice to the Godown. 14. Godown makes a GIV Entry in this transaction the stocks will be moved from in-transit to the respective Godown location. GL impact will Dr Stock (Material Val + Add-on Charge) Cr GIT 15. Print the GIV, GIV is checked by the section head and approved by department head. Copy of GIV given to purchase department Status: Draft PTPEC Standard Key Process Definition Guide -To-Be Model Page: 53 of 59 ERP Implementation for PTPEC Local Spare Parts (1A) I. Introduction There are certain spare parts, which are purchased locally. The requisition for the spare parts will be given by Parts Control Department. A person will survey the market for the material requested by the parts control department. II. Description Parts Control prepares Purchase Requisition. Purchase Requisition is approved by department head and given to Purchase Department. A person will get the Purchase Requisition and survey the market on a daily basis and purchase the material. At the end of the day person will deliver the material to the purchase department. Purchase Department checks the material and prepares purchase order. Purchase order is authorized by unit head. Invoice of the material is attached with the Order Pembelian. OP is authorized by the unit head III. Process Owner/Primary Responsibility: Purchase Department. IV. Frequency - As required. V. Pre-requisite 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Inventory Control File Inventor Account Maintenance PO Control File (5.24) System Control File (36.1) Product Line Maintenance (1.2.1) Site Master (1.1.13) Location Master (1.1.18) Item Master (1.4.1) Supplier Maintenance (2.3.1) Work Order Control File (16.24) VI. Process Flow SL # Status: Draft Activity PC PD GDN Business Rule QAD Menu Option/System PTPEC Standard Key Process Definition Guide -To-Be Model PreRequisite Reference Document Page: 54 of 59 ERP Implementation for PTPEC Status: Draft 1. Purchase Requisition 2. Print Purchase Requisition. 3. Procure Material 4. Prepare Purchase Order Parts Control prepares Purchase Requisition. Print the purchase requisition. Checked by section head. Approved by department head. Given to purchase department. Purchase department receives the PP. A person dedicated only for the purchases of spare parts surveys the market and purchases the material and hands the material along with invoice to the purchase department. On receipt of material Purchase department checks the material and If the invoice value is more than 25,000 Rp then Prepare Purchase Order else prepare tanda terim and send it to finance department. PTPEC Standard Key Process Definition Guide -To-Be Model Page: 55 of 59 ERP Implementation for PTPEC 5. Print Purchase Order 6. GIV Entry 7. GIV Print 8. Prepare Tanda Terim Print purchase order. Authorized by unit head. Given to parts control and AP department Parts control department makes GIV Entry. Parts Control Prints the GIV. Checked by section head. Approved by department head. Purchase Department on receipt of GIV prepare Tanda Terim and send it to finance department VII. Explanation of Activities 1. 2. 3. 4. 5. 6. 7. Parts control will prepare purchase requisition. Print the purchase requisition checked by section head, and approved by department head. Purchase Requisition given to purchase department. Purchase department receives the PP. Purchase Department procures the material requested by the parts control after surveying the market. Purchase Department prepares the purchase order for the procured item. Prints the purchase order purchase order authorized by unit head. A copy of purchase order given to parts control. On receipt of purchase order from purchase department Parts control makes GIV Entry. Parts Control Prints the GIV Checked by section head, approved by department head. Status: Draft PTPEC Standard Key Process Definition Guide -To-Be Model Page: 56 of 59 ERP Implementation for PTPEC Inventory Valuation & Control I. Introduction In PEC inventory is valuated at the lot level for all the materials received in local or import. For the import materials received by sea Export Warehouse will prepare GIV but the checking of stock will happen in Godown. For the materials received by air or materials received locally Incoming will prepare GIV and checking of stock will be done in Godown. II. Description Unit has 3 godowns one for main material and packing material, second Godown for storing jumbo and plastic and third Godown halfes /P – Case / Carton Box. Incoming department prepares GIV for all the items received locally and by import air and export warehouse prepares GIV for material received by sea. All spare part items are maintained by engineering section. Materials are kept in separate location for import, local reject and return from production in Godown. III. Process Owner/Primary Responsibility: Godown. IV. Process Flow Stock Tracking / Issue to Production & Sub Contractor of materials at Gudang Different Materials are kept in 3 different godowns. In Godown 1 Halfes/P-Case/Carton Box materials will be stored. In Godown 2 Plastic and jumbo materials will be stored In Godown 3 raw materials for injection and packing materials for cassette box will be stored. On Receipt of material the materials will be marked with the lot number supplier code and receipt date. Production will give the requisition of material, Godown will prepare Surat Jalan for the requested materials option 3.4.X. Print the Surat Jalan checked by section head and approved by department head and issue the material to the production based on FIFO basis. Any Materials that is returned from production Godown makes ILT from production location to the Godown location option 3.4.1. PPIC gives the requisition of material to transfer to the sub contractor. Godown prepares Surat Jalan and transfers the material to the sub contractor. Godown 2 is bifurcated into two locations one for jumbo and another for plastic. Godown maintenance stock card for the materials. Issues and receipts of the materials are also maintained in the stock card. Stock Tracking / Issue to production for spare parts in Gudang Stocks for Spare parts are maintained by engineering section. Status: Draft PTPEC Standard Key Process Definition Guide -To-Be Model Page: 57 of 59 ERP Implementation for PTPEC Spare parts are bifurcated into different types of parts i.e Injection parts, Auto Assembly Parts, Slitting & Compressor Parts, Packing & Manual Assembly Mold Part and general part. All the individual locations are again split into sub locations, which are identified by numbers. Engineering section will get the requisition for spare parts from production department. Section prepares surat pengambilan barang to issue the spare parts to the production department. Manual Stock card is maintained for spare parts which is updated every month end. Lot Number for Materials A different Lot number assigned to materials received in PEC the format of the lot number is as below 1st LLocal, DDomestic, EExport,0Non-Material 2nd Year 3rd Month 4th – 7th Supplier Code (4 Character) 8th Running Serial Number (Specific to Month & Item Code) 1st L/I (Local / Import) 2nd – 4th Item Code 5th Month Code 6th – 7th Year Code 8th – 10th Supplier Code 11th – 12th No Partial shipment Physical Verification of Materials Unit accounting will freeze the inventory option 3.16.4 and take the location wise stock report for all the items. Materials kept in Godown are being verified 3 months by accounting, production, purchase & PPIC. Production department will verify the materials every month end. For Spare parts the physical verification will happen once in 3 months. Stock Valuation of materials Valuation of material will be online moving weighted average at the item and site level. Materials received by import, valuation will at the material value and the add on cost. Sub contractor cost is also valuated at the item and site level Issue to the production is at that moments moving weighted average. Unit accounting will prepare stock position & Material cost actual report every month. Status: Draft PTPEC Standard Key Process Definition Guide -To-Be Model Page: 58 of 59 ERP Implementation for PTPEC Reports Stock Data Prepared by PPIC Refer inv1 Stock Position Status: Draft PTPEC Standard Key Process Definition Guide -To-Be Model Page: 59 of 59