PLANTATION SECTOR

STAND-ALONE PLANTATION UNIT (SPU)

STANDARD OPERATING PROCEDURES
PAYMENT OF SERVICE ORDER
(Index No. PP-3)
PP-3 OPERATIONAL PROCEDURE MANUAL
SUBJECT PAYMENT ON SERVICE BY INITIATING SERVICE ORDER
ISSUE/REVISION DATE: APPROVAL DATE ORIGINAL
Sr. No Activity Manual/ Responsibility Description of Activity Done by
Application (*

Procedures in initiating Service Order and recording the related service activities are outlined in Service Order Manual. Payment
process below includes SO initiated manually (SO Manual) and SO initiated through the system (SO System).
1.a Verification by Manual AM 1. Check that Service Order has been approved by Head of PPAA
Finance Department and is attached with work order, which has
Department been approved by Head of Department and the service
(SO Manual) provider.
2. Check invoice from service provider by comparing with PPAA
the approved Service Order.
3. Complete Tax Verification Checklist and compute PPAA/
withholding tax for the services. AAF
4. Record the information required in the system to
recognize the creditor (BMS Module). PPAA
5. The SO Manual keyed in into the BMS module shall be

1/15/2024 3
PP-3 OPERATIONAL PROCEDURE MANUAL
SUBJECT PAYMENT ON SERVICE BY INITIATING SERVICE ORDER
ISSUE/REVISION DATE: APPROVAL DATE ORIGINAL
Sr. No Activity Manual/ Responsibility Description of Activity Done by
Application (*

sanctioned by Accounts Manager. PPAA

6. Refer to Payment Manual Procedures through BMS
Module for accessing PAN Generation, Sanction and
raising Bank Payment Voucher and Cheque.
1.b Verification by System AM 1. Raising Service Order through the HIT system as User
Finance follows:
Department  Log in HIT SYSTEM
(SO System)  Select GMO
 Select Head Office
 Select Ordering Processing System
 Select Report
 Select Service Order – complete the details
 Already complete, clicks Save
2. The SO must be sanctioned by PM/FC/ME. Sanctioning PM/FC/
SO by PM/FC/ME/GM as follows: ME/GM
 Log in HIT SYSTEM
 Select GMO
 Select Head Office
 Select Ordering Processing System

1/15/2024 4
PP-3 OPERATIONAL PROCEDURE MANUAL
SUBJECT PAYMENT ON SERVICE BY INITIATING SERVICE ORDER
ISSUE/REVISION DATE: APPROVAL DATE ORIGINAL
Sr. No Activity Manual/ Responsibility Description of Activity Done by
Application (*

 Select Transaction
 Select Service Order Sanction – calls related SO
and clicks Sanctioned
3. When services completed and invoices received from HOD
authorized suppliers/dealers, the Service Order shall be
closed/ completed with the procedures as follows:
 Log in HIT SYSTEM
 Select GMO
 Select Head Office
 Select Ordering Processing System
 Select Transaction
 Select Service Order Sanction – calls related SO
and clicks Completed
4. Receiving Services Invoice (Original), Order Sheets, PPAA
Print Out Service Order Sanctioned and Service Order
Completed, VAT Invoice (Original) from Purchasing
Department.
5. PPAA reviews the completeness of supporting PPAA
documents and checks into BMS Module to ensure the
accuracy of service charges.

1/15/2024 5
PP-3 OPERATIONAL PROCEDURE MANUAL
SUBJECT PAYMENT ON SERVICE BY INITIATING SERVICE ORDER
ISSUE/REVISION DATE: APPROVAL DATE ORIGINAL
Sr. No Activity Manual/ Responsibility Description of Activity Done by
Application (*

6. PPAA sign off on hand over documents log book

submitted by Purchasing when receiving payments PPAA
supporting documents.
7. After review, the supporting documents are sent to AAF
and AAF signs off the hand over documents log book. AAF
8. Complete Tax Verification Checklist and compute
withholding tax for the services. AAF

2 Selection of SO Manual/ AM 1. Every 2 weeks (at 15th and 30th/31st each month), identify PPAA
paid in Regional System the outstanding SO which shall be paid in Regional
Office (Currently Office based on the approved guideline from Regional
SO can not be sent Finance Controller.
through interface to 2. Based on the approved SO transfer, then accesses the
PPAA
RO, if this required BMS Module to create Debit Note through the system as
to be paid in RO, follows:
manual hard copy  Access BMS Module
s/b sent to RO?)  Select Transaction
 Select Payable and fill out the detail Debit Note
 If already complete it, clicks Save
3. Once clicks save, the updated to GL by debiting Payable

1/15/2024 6
PP-3 OPERATIONAL PROCEDURE MANUAL
SUBJECT PAYMENT ON SERVICE BY INITIATING SERVICE ORDER
ISSUE/REVISION DATE: APPROVAL DATE ORIGINAL
Sr. No Activity Manual/ Responsibility Description of Activity Done by
Application (*

to Supplier and crediting Current Account RO PPAA

automatically done.
4. PPAA then manually prepare Credit Note and attached
supporting documents to transfer the liability to RO.
PPAA
5. Credit Note, list of SO transferred to RO,
acknowledgment receipts documents and all signed SO
PPAA
documents are sent to RO Finance for payment process.
6. Refer to Payment Procedures at Regional Office
3.5.3 Payment 1. Ordering System Module is linked to BMS Module for
Processes and payment purposes.
Raising BPV and 2. Refer to BMS Module – Generating Bank Payment
Cheque Vouchers and Cheque Procedures for payment
processes.

(* Explanation on abbreviation used:

FC Financial Controller in SPU
AM Accounts Manager
HOD Head of Department
AAF Account Assistant Finance
AAD Account Assistant in the related department

1/15/2024 7
PP-3 OPERATIONAL PROCEDURE MANUAL
SUBJECT PAYMENT ON SERVICE BY INITIATING SERVICE ORDER
ISSUE/REVISION DATE: APPROVAL DATE ORIGINAL
Sr. No Activity Manual/ Responsibility Description of Activity Done by
Application (*

AD Assistant in the related department responsible for the activity to be contracted

PPAA Payable and Payment Account Assistant – Accounting
CA Contract Administration
SO Service Order

1/15/2024 8