Month-End Procedure

1 Working days for each month by 4 working days.

Purchasing
2 Run and Action Open PO Report
3 Run Invoice Register Report
Accounts Payable
4 Run Invoice on Hold Report
5 Run ‘Material Distribution’ report
Inventory
6 Run ‘Value of Inventory’ report

7 Each Month-end run Open Purchase Orders Report to identify incomplete purch
Month-End - Purchasing
8 Close purchase orders by receiving the goods, matching against the invoice, /ca

9 Approve all AP invoices for the month (this is ongoing).

10 Review supplier statements and check all invoices are secondary approved/or c
11 Review employee expense claims/advances to ensure they are up-to-date and p
Month-End – Accounts Payable
12 Run Invoice Register report to identify invoices not primarily approved.
13 Run Invoices on Hold Report to list invoices placed on hold and then action all h
14 Review and approve any invoices that are coded to a project and are now “unap

15 Ensure stock is physically secure (on-going)

16 Complete all inventory issues and receipts (ongoing during the month).
Month-End – Inventory 17 Undertake monthly stock take or cycle count, check against records and investig
18 Run Value of Inventory report to review stock items
19 Run Material Distribution Retail Report showing issues of stock items with the d

20 he purchasing team generates Goods Receipt Notes (GRNs) for all items receive
Goods Receipt Note (GRN):
21 The GRNs act as internal confirmations that goods have been received and insp

22 Purchase invoices are processed for payment.

Invoice Processing 23 The purchasing department validates the invoices, ensures proper coding and a
24 forwards them to the accounts payable department for payment processing.

25 Purchasing professionals reconcile vendor statements with their records to ens

Vendor Reconciliation:
26 Purchasing professionals reconcile vendor statements with their records to ens

27 purchasing departments assess their spending against the budget allocated for
Budget Review
28 They analyze any significant variations and provide explanations for any overspe

Procurement Reports 29 Generate procurement reports for the month, including spend analysis, purchas

Process Optimization 30 Identify any inefficiencies or bottlenecks in the purchasing process and develop

Fixed Assets 31 AP Invoice (Track as Asset)

32 Inform Finance Division of fixed asset disposals sent out month end
33 Run ‘Fixed Asset Additions’ report
34 Review Departmental Fixed Asset Report for accuracy, sent out quarterly to dep
re

o identify incomplete purchase orders

ng against the invoice, /cancelling the order or manually closing the order.

e secondary approved/or current (i.e. not due for payment).

e they are up-to-date and processed
rimarily approved.
n hold and then action all holds, as necessary.
project and are now “unapproved” as a result of the AP Tie Back process.

during the month).

against records and investigate any differences

es of stock items with the department.

GRNs) for all items received during the month.

ve been received and inspected.

nsures proper coding and authorization

or payment processing.

s with their records to ensure all invoices are accounted for correctly
s with their records to ensure all invoices are accounted for correctly

t the budget allocated for the month.

xplanations for any overspending or underutilization of funds.

ing spend analysis, purchasing trends, supplier performance metrics

asing process and develop plans to optimize and streamline procedures for future months.

out month end

y, sent out quarterly to departments by the Finance Division

Stock transfer procedure details their own one plant to another pla
1
Preparation: 2
3

Authorization: 4

5
System Update:
6

7
Packaging and Labeling: 8
9

10
Transportation:
11

12
Documentation:
13

14
Shipment and Delivery: 15
16

Receiving Plant Update: 17

Stock Reconciliation: 18

Reporting: 19
edure details their own one plant to another plant in details procedure
Identify the need for stock transfer: Determine the quantity and type of stock required at the receiving plant.
Check inventory levels: Verify the availability of the stock at the sending plant to ensure that it can fulfill the transfer request.
Document the transfer: Create a stock transfer document that includes information such as the item codes, quantities, and th

Obtain approval: The stock transfer request must be authorized by the appropriate personnel or department responsible for s

Enter the transfer details: Record the stock transfer in the inventory management system or ERP (Enterprise Resource Plannin
This will update the inventory levels at both the sending and receiving plants.

Prepare the stock for transfer: Properly package the items to ensure they are protected during transit.
Depending on the nature of the stock, this might involve using boxes, pallets, or other suitable containers.
Label the packages: Clearly label each package with information such as the item code, description, quantity, and destination p

Choose the transportation method: Select the appropriate mode of transportation based on factors like the distance, urgency
Arrange for logistics: Coordinate with the logistics team or external transportation providers to schedule the pickup and delive

Prepare transfer documents: Generate transfer notes, delivery receipts, and any other necessary paperwork required for the s
Ensure compliance: Comply with any legal or regulatory requirements related to stock transfers, especially for goods that requ

Loading and transit: Load the stock onto the chosen transportation vehicle, ensuring proper handling to avoid damage during
Monitoring: Keep track of the shipment's progress to ensure it reaches the destination plant on time and in good condition.
Receiving at the destination: Upon arrival, the receiving plant should inspect the stock to verify its condition and quantity agai

Update the inventory: Record the receipt of the transferred stock in the inventory management system to reflect the increase

Regularly reconcile stock levels: Periodically check and reconcile the stock levels between the sending and receiving plants to e

Maintain records: Keep a record of all stock transfers, including relevant documentation, for auditing purposes and future refe

By following this detailed procedure, companies can ensure a smooth and well-documented process for transferring stock from
Regenerate response
errors and maintaining proper inventory control.
 Blanket Purchase Order
1 Contract period – start and end dates
2 Product quantity and quality
3 Specific purchase order number
4 A fixed price for the shipments
5 Specified time and location of delivery
6 Preferred method of invoicing and payment
7 Cancellation policy

Blanket Purchase Order 8

9

Getting Approval 10

 Fulfilling the Contract 11

12

Invoice Matching 13
14
 Blanket Purchase Order

and payment

 At this point, the paperwork is developed with all of the necessary data mentioned earlierumber. 
Don’t forget the price, quantity, start/end date, and purchase order n

a blanket purchase order needs to be approved by upper management

confirm that every shipment has the right quantity and quality, as with any services provided. 
Regular communication between all parties involved helps to avoid any mistakes and facilitates spend management.

review each invoice as it arrives for accuracy. 

 The invoice is then matched with the Blanket Purchase Order and payment is issued.
es spend management.
 Domestic Purchase Order
User Dept. 1 - Generate purchase request

2 - Select vendor
Procurement Dept. 3 - Set up vendor
4 - Raise purchase order

Vendor Makes Stores Dept. delivery

Stores Dept. 6 - Stores confirms delivery

7 - Vendor sends invoice

Acc . Dept. Excu. 8 - Invoice is processed for payment as par Payment Terms
Three-way Matching

9. Paper invoices
Invoice Processing
10. Electronic invoices
 Import Purchase
An import is a good or service bought in one country that was produced in another.  Imports are the components of internatio
produced abroad and purchased in your home country. Imported goods or services are attractive when domestic industries ca
cheaply or efficiently.

•Goods are imported in India or exported from India through sea, air or land. Go
1 passengers. Procedures naturally vary depending on mode of import or export
Process for the procurement of
the Trading product •With the globalization of Indian economy and consequent upon comfortable b
2 liberalized the Import Policy and practically all Controls on imports have been lift
3 •Imports in to India are governed by Foreign Trade (Development & Regulation)

Requirements Involved in Import Purchase

The first stage of an import transaction involves the buyer or their agent sending a written trade enquiry to the expo
the supply of goods.

Trade Enquiry: 4 Goods description

5 Catalogue number, grade, size, weight and quantity
6 Time and method of delivery.
7 Method of packing
8 Terms and conditions

   Procurement of Import License and Quota:

The import trade in India is controlled under the Imports and Exports (Control) Act, 1947. A person or a firm cannot
An import license may be either general license or specific license. 
1)    General License:  a general license goods can be imported from any country.

    Obtaining and Arrangements for Foreign Exchange:

 In India, the Exchange Control Department of the Reserve Bank of India deals with the foreign exchange. For this th
license to any exchange bank as per the provisions of Exchange Control Act.

9 Application Form
10 Identity Proof: A valid government-issued photo ID, such as a passport
11 Address Proof
12 Import Document: Proforma invoices, purchase orders, shipping docu
Documents required for foreign
exchange: 13 Importer Exporter Code (IEC): In the case of international trade transa
14 Tax Identification Number (TIN)
15 Purpose of Transaction: the purpose of the foreign exchange, whethe
16 Letter of Undertaking
17 Foreign Currency Invoice or Quotation: In cases of foreign currency pa
 18 Identify the Need
19 Request for Quotations (RFQ)
20 Evaluation of Quotations
21 Selecting the Supplier
22 Prepare the Indent or Purchase Order: The buyer prepares the indent (also k
23 Review and Approval
Placing the Indent or Order
24 Sending the Indent or Order: Can be done through various means, such as e
25 Acknowledgment and Acceptance
26 Order Fulfillment
27 Delivery and Inspection
28 Invoice and Payment
29 Record Keeping

Dispatching a Letter of Credit:

A letter of credit, popularly known as ‘L/C or ‘L.C is an undertaking by its issuer (usually importer’s bank) that the bi
on the importer will be honored on presentation up to a specified amoun

30 Shipping of bill
31 Airway of bill
32 Commercial of invoice
33 Insurance of certificate
34 Certificate of origin
35 Packing List
36 Certificate of Inspection.

       Obtaining Documents:

37 Draw Bills of Exchange:
38 Shipping documents:
39 Bill of lading
40 Invoice
41 Insurance policy
42 Certificate of origin
43 Consumer invoice
44 Documentary Bill
A)Documents against payment (D/P or D.P)
B)Document against acceptance (D/A or D.A)

   Customs Formalities and Clearing of Goods

45 Bill of entry
46 Commercial Invoice
47 Bill of lading and Airway Bill
48 Import License
49 Certificate of insurance
50 Letter of Credit (L/C)
51 Technical write-up or literature
52 Industrial License (For specific goods)
53 RCMC Registration Cum Membership Certificate
54 GATT/ DGFT Registration
55 DEEC/ DEPB / ECGC License for duty benefits

To obtain endorsement for delivery or delivery order

56 Completion of Customs Clearance
57 Submission of Import Documents
58 Compliance with Import Regulations- This includes adhering to import restri
59 Application for Delivery Order
60 Payment of Charges
61 Approval and Issuance
62 Goods Release- The goods can now be transported to their final destination,

To pay Dock dues and obtain Port Trust Dues Receipts

63 Identify the Applicable Dues
64 Register as a User
65 Obtain an Invoice or Challan
66 Payment: online payment, bank transfer, or payment at designated paymen
67 Documentation: bill of lading, cargo manifest, vessel particulars, or any othe
68 Verification
69 Issue of Port Trust Dues Receipt
Bill of Entry
A) Shipping Invoice
70 Company's name, address, and contact details
71 Recipient's name, address, and contact details
72 Invoice date
73 Invoice Number
74 Purchase Order (P.O.) Number
75 Shipping Details
76 Description of Goods
77 Unit Price
78 Currency
79 Terms of Sale: Incoterms
80 Payment Terms
81 Country of Origin
82 Packing List
83 Bank draft or letter of credit
84 Insurance documents
85 CHA or importer
Making the Payment
86 Letter of Credit
hase
e the components of international trade. An import is a product or service
ve when domestic industries cannot produce similar goods and services

India through sea, air or land. Goods can come through post parcel or as baggage with
ng on mode of import or export

consequent upon comfortable balance of payment position Government of India has

Controls on imports have been lifted.
ade (Development & Regulation) Act 1992 Goods arrival at the Port.

mport Purchase
tten trade enquiry to the exporter, requesting information on price and terms for

ense and Quota:

7. A person or a firm cannot import goods into India without a valid import license.

or Foreign Exchange:
foreign exchange. For this the importer has to submit an application in the prescribed form along-with the import

photo ID, such as a passport, driver's license, or national ID card.

rchase orders, shipping documents, or bills of lading.

of international trade transactions, the IEC issued by the Directorate General of Foreign Trade (DGFT) may be necessary.

e foreign exchange, whether it's for trade or other specific purpose

cases of foreign currency payments, an invoice or quotation in the foreign currency from the beneficiary or supplier.
uyer prepares the indent (also known as Purchase Requisition) or the Purchase Order (PO) with all the necessary details.

rough various means, such as email, fax, or an online procurement system.

of Credit:
importer’s bank) that the bills of exchange drawn by the foreign dealer,
tion up to a specified amount.

ments:

learing of Goods
ery or delivery order:

ludes adhering to import restrictions, customs valuation rules, product standards, labeling requirements, and any other relevant laws and

orted to their final destination, either by the importer's logistics team or a hired shipping company

rt Trust Dues Receipts:

payment at designated payment counters within the port premises

, vessel particulars, or any other relevant documentation.

ment
ay be necessary.

y or supplier.
other relevant laws and regulations.
 Purchase Return
A purchase return, also known as a return of goods, occurs when a buyer decides to return or send back the purchased goods
reasons, such as receiving damaged or defective goods, incorrect items, or an order that no longer meets the buyer's requirem
several steps to ensure a smooth and efficient return transaction. Below is a detailed explanation of the purchase return proce

1
Identify the reason for the return: 2
3

4
Check the return policy: 5
6

7
Contact the seller or vendor: 8
9

10
Provide purchase details:
11

Package the product securely: 12

13
Label the package:
14

15
16
Ship the return:
17
18

19
Tracking and confirmation:
20

21
Inspection and processing:
22

23
Refund or replacement: 24
25

26
Confirmation and completion:
 Confirmation and completion:
27

.
 Purchase Return
of goods, occurs when a buyer decides to return or send back the purchased goods to the seller. This can happen for various
fective goods, incorrect items, or an order that no longer meets the buyer's requirements. The purchase return process involves
ient return transaction. Below is a detailed explanation of the purchase return process:

The first step in the purchase return procedure is to identify the reason for the return.
must determine whether the product is damaged, defective, or incorrect,
if they want to return it for any other legitimate reason, such as a change of mind (if the seller allows returns for this reason).

Before initiating the return, the buyer should review the seller's return policy.
The return policy contains important information, such as the time frame within which returns are accepted, conditions for ac
Adhering to the return policy will ensure a smoother process.

After identifying the reason for the return and checking the return policy
the buyer should contact the seller or vendor to initiate the return process.
This can be done through email, phone, or via the seller's website, depending on the seller's preferred method of communicati

The seller will likely ask for information to locate the purchase in their records.
The buyer should be prepared to provide details such as the order number, purchase date, and the name or description of th

Once the return is authorized, the buyer should carefully package the product in its original packaging (if available)
or use appropriate packaging materials to ensure the item is protected during transit. It's essential to include all
original accessories and documentation, such as manuals and warranties, if applicable.

The buyer should label the package with the return address provided by the seller.
This ensures that the return reaches the correct destination and expedites the processing of the return.

The buyer is responsible for shipping the return to the seller.

Depending on the seller's policy, the buyer may need to bear the shipping costs
especially if the return is due to a change of mind or a non-defective item.
If the return is due to a seller error (e.g., damaged or incorrect product), the seller may provide a prepaid shipping label.

It's a good practice for the buyer to use a shipping method that provides tracking information.
This allows both parties to track the return shipment and confirm when the seller receives it.

Once the seller receives the returned item, they will inspect it to verify its condition and whether it meets the return criteria o
If everything checks out, the seller will process the return.

depending on the buyer's preference and the seller's policy, the return may result in either a refund or a replacement.
If the item was defective, damaged, or not as described, a refund or replacement may be issued.
If the return is due to a change of mind, the seller may issue a refund minus any applicable restocking fees or shipping costs.

The purchase return process is complete when the buyer receives a confirmation of the return being processed
This confirmation could be in the form of an email or notification from the seller.
 urns for this reason).

pted, conditions for accepting returns

ethod of communication.

me or description of the product being returned.

shipping label.

s the return criteria outlined in their policy.

replacement.

es or shipping costs.
 Subcontracting purchase
1

2
3

4
Identify the Need for Subcontracting:
5

8
9
Define Subcontracting Requirements: 10
11
12

13

14

15

16

17
Supplier Selection:
18

19

20

21

22

23
24
 25
26
27
28
29
30
31
Request for Quotations (RFQ): 32
33
34
35
36
37
38
39
40
41

42
43
44
45
46
47
48
49
Evaluate Quotations:
50
51
52
53
54
55
56
57

58

59
Negotiations and Contractual Agreements: 60
61
62
63
 Subcontracting Agreement: 64

65
Quality Control and Assurance:
66

Monitor Progress: 67

68

69
70
71
72
73
Delivery and Acceptance: 74
75
76
77
78
79
80
81
82

83
84
85
86
87
88
Payment and Invoicing:
89
90
91
92
93
94

95
96
97
Record Keeping: 98
99
Record Keeping:

100
101
 Subcontracting purchase
Company identifies specific tasks or processes that can be more efficiently and cost-effectively handled.

The identified tasks are considered suitable for outsourcing to an external vendor.
External vendors are selected based on their expertise and available resources.

The outsourcing decision is made to leverage the vendor's capabilities for the identified tasks.

By outsourcing these tasks, the company can focus on its core competencies and strategic priorities.

Outsourcing allows the company to benefit from the vendor's specialized knowledge and experience.

Cost savings can be achieved through outsourcing as the vendor may offer competitive pricing for the services
or tasks.

Scope of work
Technical specifications
Quality standards
Delivery schedules
Any other relevant details.

Capabilities: Assess the subcontractor's technical expertise and skills to determine if they align with the
project's requirements.

Experience: Review the subcontractor's track record by examining their past projects and clients.

Financial Stability: Analyze the financial health of the subcontractor to ensure they can meet their contractual
obligations and sustain their operations throughout the project's duration.
Production Capacity: Evaluate the subcontractor's production capacity to determine if they can handle the
workload and meet the project's deadlines.
Track Record of Delivering Similar Projects: In addition to experience, focus on their track record of delivering
similar projects on time and within budget.

Quality Assurance and Control: Assess the subcontractor's quality assurance processes and control measures.

Compliance and Legal Matters: Verify that the subcontractor complies with all relevant industry regulations
and legal requirements.
Communication and Collaboration: Evaluate the subcontractor's communication skills and willingness to
collaborate effectively with the company and other project stakeholders.
Ethics and Sustainability: Consider the subcontractor's commitment to ethical business practices and
sustainability efforts.
Cost and Pricing Structure: Compare the subcontractor's pricing with market rates and evaluate the overall
cost-effectiveness of their services.

Preparation:
Identification of Shortlisted Suppliers:
RFQ Distribution:
Cover Letter or Introduction:
Project Overview and Scope:
Technical Requirements:
Quantities and Timelines:
Terms and Conditions:
Submission Requirements:
Communication Channel:
Evaluation Criteria:
Confidentiality:
Acknowledgment of Receipt:
Follow-up and Clarifications:
Deadline for Submission:
Review of Quotes:
Negotiation (if applicable):
Selection of Subcontractor:
Contract Agreement:

Cost:
Quality:
Lead Time:
Terms of Service:
Experience and Track Record:
Capacity and Resources
Financial Stability:
Communication and Responsiveness:
Risk Assessment:
Additional Value-Added Services:
Comparative Analysis:
Price-Quality Ratio:
Long-Term Partnership Potential:
Final Selection:
Negotiation (if applicable):
Formal Contract Agreement:

Contract Initiation:

Scope of Work and Deliverables:

Pricing and Payment Terms:
Liability and Indemnity:
Confidentiality and Non-Disclosure:
Timeline and Deadlines:
The company and the subcontracting supplier sign a formal agreement outlining the responsibilities,
obligations, and expectations of both parties.

Vendor Qualification and Evaluation:

Quality Specifications:

The company closely monitors the progress of the subcontracted tasks to ensure timely delivery and
adherence to specifications.

Completion of Subcontracted Tasks:

Notification of Completion:
Arranging Delivery:
Receipt of Deliverables:
Verification of Deliverables:
Inspection Process:
Documentation and Records:
Acceptance Decision:
Acceptance Criteria:
Acceptance and Approval:
Rejection (if applicable):
Communication with Subcontractor:
Rectification of Defects (if applicable):
Payment Processing (if applicable
Quality Feedback and Improvement:

Work Completion:
Invoice Submission:
Invoice Review:
Verification of Deliverables:
Matching with Contract Terms:
Approval Process:
Payment Processing:
Payment Due Date:
Payment Records:
Accounts Reconciliation
Prompt Payment Compliance:
Communication with Subcontractor:

RFQ Documents:
Quotations Received:
Vendor Evaluation Records:
Purchase Orders:
Invoices:
Delivery and Receipt Records:
Quality Control Reports:
 Asset Purchase

1 The process starts with a department or individual within the organization

Asset Requisition identifying the need for a new asset.
2 Create an asset requisition, specifying the type of asset, its specifications,
quantity, and any other relevant information.

3 The asset requisition is submitted for approval to the relevant authorities,

such as department managers or budget controllers.
Requisition Approval
4 Approvers review the requisition and and either approve or reject it based
on budget availability and business needs.

5 Once the asset requisition is approved, a purchase order (PO) is generated.

6 The PO includes details such as the vendor's information, asset
Purchase Order (PO) Creation:
specifications, quantity, unit price, delivery date, payment terms, and other
relevant terms and conditions.

7 The procurement team uses to identify potential vendors based on the

asset requirements.
Vendor Selection
8 Maintain Vendor databases and performance records to assist with vendor
selection.

9 Facilitates the issuance of a Request for Quotation (RFQ) to select a vendor.

Request for Quotation (RFQ)
10 Vendor provide their Quotes

11 Compare vendor quotes based on criteria like cost, quality, delivery

Vendor Evaluation:
time, and vendor performance history.

PO Confirmation and Order

12 Once the vendor is selected, the purchase order is confirmed.
Placement:
13 Then updates the asset inventory or procurement with details of
ordered of asset.

14 Upon delivery, the receiving department uses to record the receipt of

the asset.
Receipt and Inspection:
15 Then conduct an inspection and verify that the delivered asset meets
the specified requirements.

16 Record the asset purchase in the accounting module, including the

Asset Recording: asset's cost, depreciation, and other financial details.
17 Update useful life of assets as per depreciation schedule.

18 Registers the new asset in the organization's asset register, maintaining

Asset Registration: essential details such as the assets description, serial number, acquisition date,
Asset Registration:
cost, location.
urchase

within the organization

sset, its specifications,

e relevant authorities,

prove or reject it based

order (PO) is generated.

formation, asset
yment terms, and other

ndors based on the

ds to assist with vendor

(RFQ) to select a vendor.

quality, delivery

with details of

cord the receipt of

ered asset meets

e, including the

sset register, maintaining

al number, acquisition date,
 Non-Po based Purchased
the term "Non-po based invoice procedure" could refer to a process where invoices are handled without using a purchase ord

1 Ensure that vendors are set up in the accounting/ERP system with a

Vendor Setup:
2 such as name, address, contact information, and payment terms.

3 Set up a designated email address or a portal for vendors to submit

Invoice Receipt:
4 Train vendors on the proper invoice submission process and provid

5 Establish an internal process to verify the authenticity and accuracy

Invoice Verification: 6 Check for duplicate invoices to prevent overpayment.
7 Ensure that invoices meet all legal and regulatory requirements.

8 Assign personnel responsible for entering invoice details into the ac

Invoice Data Entry:
9 Verify that all entered data is accurate, including invoice amount, ve

10 Implement an approval workflow to route invoices to the appropria

Approval Workflow:
11 Define rules for escalation in case of delayed approvals.

12 Establish a process to match the invoice with the relevant goods or

Matching and Payment
13 Set guidelines for payment scheduling, considering payment terms,
Processing:
14 Process payments either through electronic funds transfer (EFT) or

15 Generate regular reports to track the status of invoices, pending ap

Reporting and Reconciliation:
16 Perform periodic reconciliation between vendor statements and re
 Purchased
without using a purchase order (PO) as a reference document.

ounting/ERP system with accurate details,

on, and payment terms.

rtal for vendors to submit their invoices electronically.

mission process and provide necessary contact information for inquiries.

authenticity and accuracy of each received invoice.

verpayment.
gulatory requirements.

invoice details into the accounting/ERP system.

cluding invoice amount, vendor details, invoice date, and payment terms.

e invoices to the appropriate individuals for approval.

yed approvals.

with the relevant goods or services received.

nsidering payment terms, cash flow, and vendor relationships.
nic funds transfer (EFT) or check, depending on the vendor's preference.

us of invoices, pending approvals, and payment history.

vendor statements and recorded invoices to ensure accuracy.