Procurement Accounting

Technique
PAT's Simplified Cost Preparatio
n
Form 1'!A1 Codes For use on Procurement & as Accounting Heads Officials Notification of codes
Accounting Notations' combination at sheet Example- Mobilisation of
raw & column cell entry is cost offices is coded as <4b>
Code = project
code/item
Code To be used
for every item on
Cost cannot be Rows can be
changed in added for sub
Columns can be
added
After addition
of new codes,
Engineers,
Supervisors,
Executive Operations
Director or Manager/
Codes code. Code for cement is <7a> requisition whatever, case codes, but with on right of notification to Managers, by Projects
Refer to selected descriptio of subscripts, such as column k for concerned Accountants, delegation Manager/
head & find code a or b etc. certain new officials to be Procurement, General Technical
example 5 a activity made Corporate Manager Manager
Managers,
Stores,
Estimation,
Cost Control,
Planning etc.

Discipline
Code Heads of disciplines Break up

a b c d e f g h i j k
1 Site preparation Clearing Grabing Grading
2 Land Surveying GPS prime Local Bench marks Approvals

Applications for existing

services drawings
3 Government Records & relocation
sewage tank/ local
4 Mobilisation Fencing offices containment electricity water stores yards maintenance terpauline IT
5 Excavation Equipment hire survey truck
6 Backfill Equipment hire compactors Testing
7 Dry material supplies Cement aggregate sand dune sand lime gypsum powder POP plastic sheet
8 Substructure Concrete Blinding RCC Protection Grade slab Forms Rebars Binding wire
9 Superstructure Concrete Basement All floors
10 Structural Steel Structural steel Sheeting All gutters Acessories
11 Precast concrete All units deliveries Erection Diapragm Crane Trailors
12 Light weight framing All members Erection Sheetings
13 Blockwork Blocks deliveries mortar
14 Dry surfaces Materials fixtures erection
15 Plastering + Rendering Metal laths mortar admixtures application
aluminum
16 Roofing Preparation foam concrete waterproofing testing geotextile insulation gravel flagstone tiles flashing sealants
Ceramic Tiling on
17 walls & floors Preparation tiles adhesive mortar spacers joints

18 Other tiling on walls & floors Preparation tiles adhesive mortar spacers joints
19 Suspended / False Ceiling Framing or suspension tiles bulkhead others
Total system
20 Painting Total system internal external old work
21 Wooden Doors + Windows Sub framing doors + frames ironmongery signs others paints
22 Metal works + glazing Sub framing doors + frames ironmongery signs railings others
23 Sealants all types internal external fire hours based
 Procurement Accounting
Technique
PAT's Simplified Cost Preparatio
n
Form 1'!A1 Codes For use on Procurement & as Accounting Heads Officials Notification of codes
Accounting Notations' combination at sheet Example- Mobilisation of
raw & column cell entry is cost offices is coded as <4b>
Code = project
code/item
Code To be used
for every item on
Cost cannot be Rows can be
changed in added for sub
Columns can be
added
After addition
of new codes,
Engineers,
Supervisors,
Executive Operations
Director or Manager/
Codes code. Code for cement is <7a> requisition whatever, case codes, but with on right of notification to Managers, by Projects
Refer to selected descriptio of subscripts, such as column k for concerned Accountants, delegation Manager/
head & find code a or b etc. certain new officials to be Procurement, General Technical
example 5 a activity made Corporate Manager Manager
Managers,
Stores,
Estimation,
Cost Control,
Planning etc.

Discipline
Code Heads of disciplines Break up
24 Wood work package delivery paint ironmongery
25 Sanitation services units traps piping fixtures
reverse osmosis
26 Water Supply services tanks piping fixtures heaters or filter
27 Electrical services conduits+accessories wiring panels DBs Connections Commissioning
chilled water
28 HVAC Units / equipment ducting piping blowers
29 Elevators package Delivery guide rails supports machine room
30 LPG Tanks piping riser distribution
31 Loss prevention FM 200 Inergen piping smoke detectord FAS
32 Fire Fighting Sprinkler system eaternal ring piping dry hose reel
33 Security servers cameras cabling systems access cards
34 Furniture wooden steel kitchen others
35 External civil works Asphalt paving kerbstone pergolas parking street lights
36 External drainage Trenching Sewage tanks manholes soakways piping covers
37 External electrical Trenching cable bed + fill manholes
38 Soft landscape sweatsoil dune sand fertilizer plantation
39 Irrigation piping water supplies sprinklers pumps
40 External special facilities Arm barriers gates fencing guard houses
41 Other special facilities escalators translators crawlers
trade
42 Tools all trade tools equipment
43 Consumables Nails Plywood Scantlings Ties PVC pipes Lost items stationary
44 General equipment/plants Vibrators concrete mixer dumper bob cat jack hammer jumper compactor grinder hoist generator
45 HSE equpment PPE coveralls special equipment
46 Transport Cars coasters macro buses fuel maintenance
Recreation/Business occassional
47 Promotion office bewerages pantries refreshment food parties telephones books codes seminars training
external civil
48 Subcontracts Electrical Mechanical security works IT
49 Trade services Supplies training maintenance
 Procurement Accounting
Technique
PAT's Simplified Cost Preparatio
n
Form 1'!A1 Codes For use on Procurement & as Accounting Heads Officials Notification of codes
Accounting Notations' combination at sheet Example- Mobilisation of
raw & column cell entry is cost offices is coded as <4b>
Code = project
code/item
Code To be used
for every item on
Cost cannot be Rows can be
changed in added for sub
Columns can be
added
After addition
of new codes,
Engineers,
Supervisors,
Executive Operations
Director or Manager/
Codes code. Code for cement is <7a> requisition whatever, case codes, but with on right of notification to Managers, by Projects
Refer to selected descriptio of subscripts, such as column k for concerned Accountants, delegation Manager/
head & find code a or b etc. certain new officials to be Procurement, General Technical
example 5 a activity made Corporate Manager Manager
Managers,
Stores,
Estimation,
Cost Control,
Planning etc.

Discipline
Code Heads of disciplines Break up
50 Workforce wages (projects) monthly regular overtime incentives awards penalties
Workforce wages
51 (supplies contracts) monthly regular overtime incentives awards penalties
52 Staff salaries monthly regular overtime incentives awards penalties
53 Perks accommodation food electricity water medical ticket
54 Business travel accommodation food ticket allowances
Form 1'!A1
Materials Cost Procure
procurement Project Site controll ment Procure Executiv
procedure involving Site Quality Engineer/ Manager er/Plan Ps M expedito ment e Site Central Destinati
S# client Responsible Engineer Engineer CM /PM ner /OM r officer Director Stores Store on stores
1 Origin
Purchase Order
Quantification Y Y Y
Specific
Support / approvals
Drg, specs, BOQ etc. Y Y Y
documents
Vendors list, if any Manufacturers Y Y
Alternative options For betterment Y Y Y Y
References/samples Catalogue, datasheet Y Y
Expected Date of
Check schedule Y Y Y
delivery to site
2 Review
Stores review Availability? Y
Site Review Enter on register Y
Site approval Complete review Y
Transmission Mail or by courier Y
Management
3
Approval
Check Cost
Budget review Y Y
allocation provision
HO approvals Check funds Y Y
Transmission to Record on
Y
procurement HO despatch register
4 Administration
Quote invitation Select vendors & invite Y Y
Attachment reviews Check supports Y Y
Transmission to
Mail or by courier Y
vendors
Follow up Fax & telecphone Y Y
Record on share folder
Receipt of quotes Y

Record comparison on
Updates on status share folder Y Y

Compile all technical

Comparison statements & commercial Y Y
comparisons
 Materials Cost Procure
procurement Project Site controll ment Procure Executiv
procedure involving Site Quality Engineer/ Manager er/Plan Ps M expedito ment e Site Central Destinati
S# client Responsible Engineer Engineer CM /PM ner /OM r officer Director Stores Store on stores
Check compliance
Technical scrutiny Y
to specs
Raise queries to
Clarifications Y
vendors
Check all technical
Compliance statement Y
provisions

Vendor's profile check Check all prequalifications Y

For significant items

Visits to factory if,
requiring FAT (factory Y Y
required
testing)
All clauses on
Negotiations Y Y
quotations

Price, payment terms,

Final negotiation Y Y
delivery terms, credits etc.

All aspects of budget,

Review by PM prosecution, quality, time Y
& technicalities
Back to Detailed comments
Y
Procurement on foregoing
Action on PM review Response on comments Y
Recommendations/
Submission to HO Y
Propositions

Management Approval Decision making Y Y

4 Client approval

Submittal sheet,
datasheet,samples, test
certficates, vendors other
Submission details, material details, Y
suppliers details,
specification, codes
drawings reference

Meet client/consultants
Follow up Y
/discipline specialist
 Materials Cost Procure
procurement Project Site controll ment Procure Executiv
procedure involving Site Quality Engineer/ Manager er/Plan Ps M expedito ment e Site Central Destinati
S# client Responsible Engineer Engineer CM /PM ner /OM r officer Director Stores Store on stores
Receive back, review
Arrange clarification comments, forward to
Y Y
on comments vendor, follow up with
vendor, act self if PAT's
Receive back, review
Resubmit Y Y
resubmit, follow up
Study all comments,
Client approval instruct vendor & PAT's Y Y
procurement
5 Procurement order
Prepare LPO/LC etc.
Compose order Y Y
verify, approve, forward
Review & approve
Authorised signatory Y Y
for processing
Transmission Mail/Fax or other means Y
Ensure schedule date,
Monitor delivery Y Y Y
Follow up till deilvery
6 Deliveries
Check Order, Ensure
quantity, manufacturer,
Receive delivery Y
brand, insurance,
certifictaes etc

Quality check
Inspect materials Y Y Y Y
& comments
Satisfied, request client,
Clearance on site consultant etc. Sign off Y Y
deliveries
Approval by client
Inspection by client Y
for payment
Send records to stores,
Record delivery Y Y Y
store to document entry
Receipt, record, inform,
Stores procedures Y
issue, balance
Sign receipt to forward
Stores receipt Y
to procurement
 Materials Cost Procure
procurement Project Site controll ment Procure Executiv
procedure involving Site Quality Engineer/ Manager er/Plan Ps M expedito ment e Site Central Destinati
S# client Responsible Engineer Engineer CM /PM ner /OM r officer Director Stores Store on stores

Keep delivery note

Keep requisition open, until material fully
if material partly delivered, send Y Y
delivered confirmationof part
deivery on copy of note

Send a communique to
Inform procurement Y
Procurment about delivery
Close requisition if, Send signed off delivery
Y
fully delivered note to Procurment
Clear LC or other Verify, approve &
Y Y Y Y
mode sign off
7 Stores status Y
Update records Enter, show balance Y
Notify to originator Statement of balance Y
8 Surplus materials
List materials
Material details Y Y
not required on project
Inquire about Send details to
Y Y Y Y
destination procurement
Check requirements on
Decision on
other projects & decide or Y Y
destination
order central storing
Inform destination Name destination site Y Y
Stores to Fill standard gate
Gate pass Y Y
pass form,
Stores & PM to sign off
Material despatch visa of material to other Y Y
sites or central store
Central store or
Material receipt Y Y
dsestination to receive
9 Tools write off Y
 Materials Cost Procure
procurement Project Site controll ment Procure Executiv
procedure involving Site Quality Engineer/ Manager er/Plan Ps M expedito ment e Site Central Destinati
S# client Responsible Engineer Engineer CM /PM ner /OM r officer Director Stores Store on stores

Ensure sales documents

& warranty card issued by
Check
seller & record them. Y Y
warranty/guarantee
When required trace them.
Inform procurement.

Arrange with
Send for repairs documents, tools to be Y Y
sento to vendor for repairs

Check persons handled Records technicians

Y Y Y
on work used tools, equipment
Unrepairable, examine
Investigate cause Y Y
cause
Investigation report &
Report to procurement Y
recommendation
Notify, if within
Report to manufacturer warranty to replace or Y Y Y
reinstate
Manufacturer's
Review for action Y Y
response
Report any misuse Notify names Y Y Y
Warning, training & cost
Action against misuse Y
recovery, if so required
No signs for repair or
If no chance for repair, replacement, propose &
Y Y Y Y Y Y
write off order write off from
records to scrap records
Gate pass, despatch to
Send to central store Y Y Y
central stores

Record by central store Enter into scrap register Y

Order scrap sale or try if,

Scrap management salvagable or throw away Y
to garbage
 Materials Cost Procure
procurement Project Site controll ment Procure Executiv
procedure involving Site Quality Engineer/ Manager er/Plan Ps M expedito ment e Site Central Destinati
S# client Responsible Engineer Engineer CM /PM ner /OM r officer Director Stores Store on stores
Act on Executive
Scrap action Y
Director's decision
Form 8 Project: Project # P= Permanent Py=Preparatory
Stores Write Off Request C=Consumable T= Temporary
# 1 Y=Yes N=No B/F=Brought Forward

Who is
responsible In every
Out of Reason for Manufacture
Details of for damage? Date of consideration
Order' being 'Out of r's Response. What shelf
Material materials Specifications Specific original , write off is
Entry # Code # P/Py/C/T Unit Quantity order'/Inveti Repairable life Remarks
Description manufacturer of item person or delivery to a
Available gation or remains?
& other deta often bad use site requirement
Report, Y/N replaceable?
or wear & from Quality
tear Assurance
view point

Action 1 Action 2 Action 3

Central
Project Office Head Office Report By Decision Y/N Site Store Store
Stores Project Manager PMs/OM Procurement Executive Director Gate Pass Scrap Management
Sign Sign Sign Sign Sign Sign Sign
Date Date Date Date Date Date Date
Form 7 Project: Project # P= Permanent Py=Preparatory
Stores Transfer Request C=Consumable T= Temporary
# 1 Y=Yes N=No B/F=Brought Forward

Date
Surplus Is it in Date of when can
Details of materials Reason What
Quantity good original be
Entry # Code # Material Description P/Py/C/T Unit manufacturer & other Specifications for being shelf life Remarks
Available condition? delivery released
details Surplus remains?
Y/N to site to demand
location

Send to
Project #......./ Site Project /
Cent Stores Stores Receipt Receipt
Stores Site Manager PMs/OM Procurement Gate Pass Central Stores Destination Stores
Sign Sign Sign Sign Sign Sign Sign
Date Date Date Date Date Date Date
Form 6 Project: Project # P= Permanent Py=Preparatory
Stores Issued Records C=Consumable T= Temporary
Each sheet to allow only individual prime code, separate form for each prime code Y=Yes N=No B/F=Brought Forward

New New
Quantity New More
Delivery Delivery Current
Entry # Code # Material Description Unit Already Balance Date Issued to materials Remarks
B/F Quantity balance
Available Quantity requested
page ref B/F
 Form 5 Project: Project # P= Permanent Py=Preparatory
Stores Receipts Records C=Consumable T= Temporary
Date : Y=Yes N=No

Delivery
Quantity Posted Total of note copy+
balance feom here this item this report
En to be to quantity sent to
try Quantity delivered Damaged Inspection relevant Balance Procuremen Insurance
S# Code # PR # PR Item # Originator Date arrived Vendor's name Delivery note reference Material description delivered to stores materials approval T/P/C/Py item page update t claims Remarks
Form 4
Project Name
Prepared By
Quotations 'Compliance' Equivalence Statement
Proposal As Specified
Vendor's name
Commercial

Payment
Description of Item Unit Qty Rate Amount Terms &
Validity

Sum
Proposal As An Alternative
Vendor's name
Commercial

Payment
Description of Item Unit Qty Rate Amount Terms &
Validity

Sum
Project # PR #
Item #
Y=Yes N=No
Quotation Reference

Technical

Quality Specific Listed Client

Designs BOQ
Complian ations Vendor Approval
complied complied
ce complied on project Required

Technical
Specific
Listed
Quality ations Client
Designs BOQ Vendor
Complian equal or Approval
complied complied not on
ce superior Required
project
proposed
Form 3 Form 1'!A1
Project Name
Prepared By
Quotations 'Comparison' Statement Form 2'!A1
Commercial
Vendor's name
Payment
Description of Item Unit Qty Rate Amount Terms &
Validity

Sum

Vendor's name
Payment
Description of Item Unit Qty Rate Amount Terms &
Validity

Sum

Vendor's name
Payment
Description of Item Unit Qty Rate Amount Terms &
Validity

Sum
Form 1'!A1
Project # PR #
Item #
Form 2'!A1 Y=Yes N=No
Quotation Reference
Technical
Quality Listed Client
Specific Designs BOQ
Complian Vendor on Approval
ations complied complied complied
ce project Required

Quotation Reference
Technical
Quality Listed Client
Specific Designs BOQ
Complian Vendor on Approval
ations complied complied complied
ce project Required

Quotation Reference
Technical
Quality Listed Client
Specific Designs BOQ
Complian Vendor on Approval
ations complied complied complied
ce project Required
 Project Name Form 1'!A1 Project # PR #
Y= Yes, N= No Form 2 By Procurement Serial #
Procurement Process Items wise Items #s This form to be attached with Comparison Statement
Action Check Remarks Missing Actions=N
1 Procurement Officer/Manager/Engineer Y
To order on requisition
2 Order to be recoded on procurement register Y N
3 Order to be allotted list of vendors or suppliers
Procurement to define list
4 Preparation for Enquiries
5 Enquiries despatch By mail or by fax or by courier
6 Ensure confirmation of acknowledgement by vendor
7 Follow up action by procurement section
8 Providing additional information, if so required by vendor
9 Try to receive as many quotations as practically feasible in reasonable time
10 Request complete data & statements from vendor
11 Request for options as well
12 Receive quotes electronically or, otherwise
13 Technical check
14 Commercial check
15 Delivery period check
16 Local or importable
17 Reliability % respecting vendor
18 Is standby required?
19 Comparison Statement Respecting all quotations
20 Compliance Statement Respecting alternative material offers
21 Submit the statements to management
22 For permanent project items, material approval required
23 Make submission through Project Manager
24 Obtain Approval
25 Management Review
26 Place Procurement Order
 Y=Yes, N=No Py=Preparatory T= Temporary C=Consumable P= Permanent
Procurement Accounting Technique
Engineering Enterprises Link PAT's Simplified Cost Codes Page = 1
Form 1 Material Requisition Form Quotations Comparison Statement
Project Name Site …… Requisition # 1 Link Requisition Procedure'!A1 Procurement Process
Project Number PAT…… Requires 10 days minimum for order process Submit request in advance

Unit
m3/
Material m2/
m/l Date
Name of Vendor
or
Cost Specification/
Description Brief BOQ Drawings
Approval m/#s
Referenc /kg Required Manufacturer,
S# in full (attachments if any) Location to install Code reference Reference T C Py P e etc Quantity on site if any Remarks

Originator/Site Engineer Project Engineer Stores Officer Project Manager

Name Name Name Name
Signature Signature Signature Signature
Date Date Date Date
Head Office (Option) (Option) Order
Cost Control Projects Manager/ Operations Manager General Manager/Director Procurement
Date Date Date Date