P2P Process Narratives
1.
Direct & 3rd Party Manufacturer Purchases (Planning to Invoicing):
a.
Production planner Inputs the production schedule in Oracle basis sales plan for all the finished
goods provided by commercial team.
b.
Based on the above-mentioned production plan, Oracle computes the planned purchases for
each Raw Material (Chemicals) and Packing Material (Components) required in production of
the finished goods.
c.
Requisition is raised by the MRP Planner (Buyer) in Oracle basis planned purchase computed by
Oracle. These requisitions go through multiple levels of approvals based on the value of
requisition and auto converted to PO post all approvals in Oracle.
d.
System notifies if the requisition being raised is with-in the Budget based on the line item (GL)
and Department (Cost Center). If over budget, appropriate approvals are taken in Oracle to
amend the budget.
e.
Supplier receives PO via auto email and sends confirmation of the PO so received giving details
of Qty, rate and delivery date.
f.
Upon receipt of goods at ABC warehouse, receiving team inspects goods for damages and
receives the same in Oracle under ‘Quarantine’ status.
g.
QO/QC team are notified by receiving team for further testing of the goods received and upon
passing such tests status of the goods is changed to ‘Released’ by QO/QC team clearing it as
ready for use.
h.
Supplier Sends the Invoice of the goods to accounts payable team for payment processing.
i.
Any delays, damages, Short deliveries shall be tracked and reported by way of a Supplier Score
card on a monthly basis.
j.
Suppliers is held accountable for any losses on account of ‘i’ above and appropriate recoveries
are made from them basis agreement with them.
2. Indirect Purchases (Requisition to Invoicing):
a. Requisition is created in Oracle basis an order request form giving details of Qty, Material,
Supplier along with function heads approval.
b. The requisition so created goes through various approval levels in Oracle basis its value. Upon
receiving all the required approvals, the PO is auto generated in Oracle.
c. System notifies if the requisition being raised is withing the Budget based on the line item (GL)
and Department (Cost Center). If over budget, appropriate approvals are taken in Oracle to
amend the budget.
d. Supplier receives PO via auto email and sends confirmation of the PO so received giving details
of Qty, rate and delivery date.
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e. Upon delivery of goods to ABC warehouse / office the person raising the requisition in Oracle is
notified. Requisitioner checks the Qty received, damages if any to the goods and upon found
satisfactory receives the goods in Oracle against the PO.
f. Supplier sends the Invoice to the Accounts Payable team for payment processing.
g. Any delays, damages, Short deliveries shall be tracked and reported by way of a Supplier Score
card on a monthly basis.
h. Suppliers is held accountable for any losses on account of ‘i’ above and appropriate recoveries
are made from them basis agreement with them.
3. P Card / Non-PO Based Purchases:
a. Well defined purchase policy specifies the materials that can be bought without PO.
b. The policy also specifies the circumstances under which using P card is allowed and approval
process for the same.
c. Approval for such purchases shall be taken off-line (Outside Oracle) before the purchase takes
place. There shall be at least 2 approvers i.e. Finance and Function head approving such
purchases.
d. Any purchases made using P Card or Without a PO shall be treated as an exception to the
existing procurement purchase and a report be circulated to all the stake holders on monthly
basis for purchases done via these methods.
4. Capex Purchases (CAR to Invoicing):
a. Sourcing team and department raising request for a capital asset purchase goes through
process of vendor selection and finalize the best fit supplier basis quotes for at least 3 suppliers
for the requirement.
b. Physical copy of CAR specifying the details of Asset being purchased / constructed along with its
purpose and expected cost is prepared by the department initiating the request for purchase.
The same is approved by way of signature by Sourcing team, Head of Department raising the
request, Finance Approver of the site, CFO and CEO.
c. Upon approval of the CAR above, Plant Finance Controller generates a unique code in Oracle
against the CAR and notifies it on the physical copy of the CAR. Finance team files the physical
copy of the CAR in a central repository.
d. Requisition is raised in Oracle against the said unique code which goes through approval of
Finance, Sourcing and Head of Department raising the CAR only. Upon approval, PO is auto
generated in Oracle and emailed to Supplier.
e. Supplier confirms the receipt of PO via email confirming the details such as Qty, Rate, Delivery
Date etc.
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f. On receipt of actual asset or its component warehousing team notifies the requisitioner who
inspects the goods and receives the same against the PO.
g. Supplier sends the Invoice to accounts payable team for payment processing.
5.
Payment Process (Invoice Booking to Payment):
a. Invoice received from the supplier by accounts payable team.
b. Payable team checks the Invoice against the receiving done against PO in Oracle. Any
differences between the Invoice and PO/Receiving done is notified to the buyers which they get
resolved with the supplier.
c. Accounts payable is notified once query is resolved and Invoice is booked in Oracle accordingly.
d. Payments are processed on Thursday / Friday of every week. All payments falling due in the
week are identified through Oracle BI report.
e. These payments are sent to approval of Plant Finance Controller who may put some of the
payments on hold. For rest of the payment cheques are printed and dispatched to the supplier
via mail.
6.
Supplier Master (Creation, Edits and De-activation):
a. Request for Creation of New Supplier, changes to and deactivation of existing suppliers is made
via Change Control Request in Trackwise system. Details required for creation of such supplier
(Supplier Creation Form, Tax Declaration, Supplier Agreements and other relevant documents
etc.).
b. Central MDM team is responsible for creation, edits or deactivation of suppliers in Oracle.
c. Any of the changes made to the supplier master by MDM team goes through secondary
approval process within oracle.
d. Quarterly review of supplier master is done by MDM team to Identify and De-activate the old or
unused suppliers.
7.
Material Master (Creation, Edits and De-activation):
a. Request for Creation of new material (Chemicals, Components) or Bill of Material (BOM) or
changes there to is made via Change Control Request in Trackwise system. Details required for
the same (Material Code, Description).
b. Central MDM team is responsible for creation, edits of Material / BOM codes in Oracle.
c. Any of the changes made to the master by MDM team goes through secondary approval
process within oracle.
d. Quarterly review of material master is done by MDM team to Identify and De-activate the old
or unused material codes.
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