COMMODITY PURCHASING PROCEDURE OF APPROVAL FORM
I. PURPOSE
In order to account and manage financial invoices, documents according legislation, Company’s Policies and Board of Directors and for all employees to implement.
II. PRINCIPLE
· All financial issues must be followed the financial policies and procedures.
· Sequence, procedures of financial invoices are processed according Policies of Company and Ministry of Finance.
· Ensure transparency, clarity and efficiency in financial operations.
III. PROCEDURES OF FINANCIAL MANAGEMENT
1. Procedures of Purchasing; Receiving and Payment
Step 1
When requesting for purchase of materials and equipments, requesting departments must fill up the Approval Form and indicate the following informations:
· Date requested, Date of expected delivery
· Name of Items : e.g. LED 3W
· Product Type: white light
· Product Origin (made by): e.g. Rang Dong; China…
· Purpose and location of usage, : e.g. Set up in Cluster 3
· Other Remarks:
Requesting Department must preferably attach pictures of requested products and indicate the specifications, sizes, model, brand.
Approval Form must contain signatures of requesting person, Head of Department of requisitioner. The Approval Form will be discussed in the morning briefing about necessity, quantity, specification… approved by General Manager.
(All Approval Forms submitted which do not fully contain the above information will be rejected)
Step 2
The Requisitioner has to bring the Approval Forms mentioned in Step 1 to purchasing department after the morning briefing on the same day (no later than 1pm). In case the requesting Items needs approval by Owner, the requisitioner has to send scanned Approval Form to Owner (General Director/ Chairwoman) by e-mail, copying to Purchasing Department. If the Owner rejects the Approval Form, purchasing department will mark ‘Cancelled’ on the Approval Form and save in archive, if agreed, Purchasing Department will number and move to step 3.
The processing under Step 2 must be completed within 24 hours.
Step 3
Purchasing Department will provide at least three (2-3) quotations of three (3) suppliers complete with company name, address, telephone and telefax numbers, e-mail address to Purchasing/ Finance Department. Urgent Items costing below Vnd 200,000 may be purchased with just one (01) quotation.
Quotation must clearly indicate the value of the items whether this excludes or includes Value Added Tax as well as the rate of the applicable tax.
The processing period for Step 3 is within 24 hours. In case of rare or difficult to find items, or suppliers are limited. The processing time can be extended to 48 hours for Purchasing to have more time to search and buy but this is subject to submission of three (1) quotatins.
Step 4
Chief Accountant verifies the accuracy/reasonableness of the prices then forwards back the Approval Form to Financial Controller/ General Manager for approval. After approved, Purchasing Department will get Approval Forms and Process of Step 4 within 24 hours.
Step 5
The Purchasing department will procure the items according to the approved specifications and time schedule for delivery. Planning of Truck, making cash advance request Form (if necessary) should be done on the same day when quotations are approved. Items to be purchased valued at least Vnd 10 million must be covered by a Contract which is initialed by the Hotel’s Financial Controller and submitted to the General Director for final approval.
Invoicing should be made to specifically cross refer to the corresponding Purchase Order.
Step 6
Since cash advance is given, Purchasing departmanet must purchase exact amount and description of commodity and put in store within less than 10 days. Purchased commodity must be processed to put in store (with the first-time purchases, requesting department participate in the process); purchasing department is not allowed to directly deliver to requesting department without store accountant.
Step 7
If there is a Cash Advance previously issued, such advance should be settled no later than fifteen (15) working days from the time the items are delivered.
Purchasing department is responsible on gathering sufficient profile of payments and then sends to Account Payable Accountant to complete paying process.
- Payment as contracted: Account Payable Accountant settle the paying process as financial conditions in the contract after receiving completed and legal profile includeing: payment request, financial invoices, Purchase Requisition, Commodity records.
- Refundable payment for Purchasing department: less than fifteen official working (15) days from the date of store input, Purchasing department is required to complete refundable payment process. Payment profile must includes legal financial invoices, store return requisition with full signature of relevant parties.
- Processing and approval of the Payment should be through the Financial Controller/ Chief Accountant then finally approved by the General Director.
Process is legally applied since issued date
