PLANTATION SECTOR

STAND-ALONE PLANTATION UNIT (SPU)

STANDARD OPERATING PROCEDURES
PAYMENT OF BAPP RECORED IN CONTRACT MODULE
(Index No. PP-2)
PP-2 OPERATIONAL PROCEDURE MANUAL – CASH AND BANK PAYMENTS
SUBJECT PAYMENT ON BAPP RECORDED IN CONTRACT MODULE
ISSUE/REVISION DATE: APPROVAL DATE ORIGINAL
Sr. No Activity Manual/ Responsibility Description of Activity Done By
Application (*

1 Initiate Contract Manual HOD 1. Based on budget or operational requirement, Head of HOD
Agreement Department (HOD) prepares operation plan identifying
requirements for third parties services.
2. HOD requests quotations minimum from 3 different HOD
contractors. Public invitation shall be made, if it is
practical to do that. REFER TO VENDOR RATING &
SELECTION PROCEDURES. HOD
3. Discuss the quotations with PM & GM in negotiation of
contract terms with contractors. Based on the
negotiation results, GM, with consultation to FC, decides
the contractor.
4. Prepare draft contract agreement based on the AD
approved contract terms using standard contract
agreement. If significant modification is required from
the standard contract agreement, the revised contract
agreement shall be reviewed by Legal division in CMSL.
5. Obtain contract number from Account Assistant in AD
related Department. The Account Assistant shall check
the completeness of information required and complete
the Check list (specimen attached) before releasing the

1/15/2024 5
PP-2 OPERATIONAL PROCEDURE MANUAL – CASH AND BANK PAYMENTS
SUBJECT PAYMENT ON BAPP RECORDED IN CONTRACT MODULE
ISSUE/REVISION DATE: APPROVAL DATE ORIGINAL
Sr. No Activity Manual/ Responsibility Description of Activity Done By
Application (*

number.
6. The contract agreement shall be signed by HOD and
Contractor before signed by GM. HOD/AD
7. The original contract shall be sent to Finance
Department for registration and filing. The second AA
original is sent to contractor.
8. For any new contractor, AAF shall initiate Supplier
Master Creation procedures (refer to SOP on Supplier AAF
Master Creation).
2 Registering System AM 1. Account Assistant responsible for maintaining contract AA
Contract register shall stamp and initial the original signed
Agreement in the contract with “CONTRACT REGISTER” chop and date
System of registration. A copy of the stamped contract shall be
sent to the related Account Assistant responsible for the
related department activities for reference and filing.
2. Refer to Assets Protection – Fixed Assets Addition AM
through CIP Capitalization Procedures (sub process
Registering Contract Agreement) relates to registering
Contract Agreement in the HIT system.
3. If the contractor request revision on the contract

1/15/2024 6
PP-2 OPERATIONAL PROCEDURE MANUAL – CASH AND BANK PAYMENTS
SUBJECT PAYMENT ON BAPP RECORDED IN CONTRACT MODULE
ISSUE/REVISION DATE: APPROVAL DATE ORIGINAL
Sr. No Activity Manual/ Responsibility Description of Activity Done By
Application (*

agreement, the existing contract shall be terminated and AD/HOD

process for service compensation, if meet the
qualification for payment based on the agreement. A
new contract agreement shall be processed followed the
same procedures for a new contract.

3 Recording contract Manual/ HOD 1. Refer to Assets Protection – Fixed Assets Addition FA/AAA/
progress System through CIP Capitalization Procedures (sub process AM
BAPP Progress and Updating CIP and GL) relates to
registering Recording Contract Progress in the HIT
system
2. Contract Module is linked to BMS Module.
3. Raising BAPP system generated when the payments to
contractor will be made in accordance with the payments
terms. Refer to Assets Protection – Fixed Assets
Addition through CIP Capitalization Procedures (sub
process BAPP Progress and Updating CIP and GL) in
raising BAPP.
4 Review of BAPP to System/ FC 1. Account Assistant Finance (AAF) shall review AAF
be Paid in RO and completeness of BAPP documents and check

1/15/2024 7
PP-2 OPERATIONAL PROCEDURE MANUAL – CASH AND BANK PAYMENTS
SUBJECT PAYMENT ON BAPP RECORDED IN CONTRACT MODULE
ISSUE/REVISION DATE: APPROVAL DATE ORIGINAL
Sr. No Activity Manual/ Responsibility Description of Activity Done By
Application (*

SPU Manual consistency of the terms of contract applied in the BAPP.

2. If AAF identifies any discrepancy from the contract term,
the issues shall be communicated with the related AD AAF
and resolve for payment process. If the discrepancy
could not be resolved at the due date, the documents
shall be returned to the related HOD for resolution.
3. When complete review the BAPP, AAF gives BAPP and
supporting documents to PPAA. AAF
4. PPAA selects BPAA which will be paid in RO based on
guideline determined by Regional Financial Controller. PPAA
5. Prepare list of BAPP which shall be transferred to RO for
payment process. The list shall be reviewed by AM and PPAA
be approved by FC.
6. Based on the approved BAPP transfer, then accesses
the BMS Module to create Debit Note through the PPAA
system as follows:
 Access BMS Module
 Select Transaction
 Select Payable and fill out the detail Debit Note

1/15/2024 8
PP-2 OPERATIONAL PROCEDURE MANUAL – CASH AND BANK PAYMENTS
SUBJECT PAYMENT ON BAPP RECORDED IN CONTRACT MODULE
ISSUE/REVISION DATE: APPROVAL DATE ORIGINAL
Sr. No Activity Manual/ Responsibility Description of Activity Done By
Application (*

 If already complete it, clicks Save

7. Once clicks save, the updated to GL by debiting Payable
to Supplier and crediting Current Account RO PPAA
automatically done.
8. PPAA then manually prepare Credit Note and attached
supporting documents to transfer the liability to RO. PPAA
9. Credit Note, list of BAPP transferred to RO,
acknowledgment receipts documents and all signed
BAPP documents are sent to RO Finance for payment
process. PPAA
10. Refer to Payment Procedures at Regional Office
RO
Finance
5 Payment Manual AM 1. As most of contractors is individual contractor, they will AD/ ACE
documents not send an invoice for the claim. They will refer to the
verification agreed manual Bill of Quantity (BOQ)/ Work Progress
Project Detail.
2. BOQ is prepared based on physical inspection to the AD
progress of contracted work attended by the related
technical department (CE/Mechanic).

1/15/2024 9
PP-2 OPERATIONAL PROCEDURE MANUAL – CASH AND BANK PAYMENTS
SUBJECT PAYMENT ON BAPP RECORDED IN CONTRACT MODULE
ISSUE/REVISION DATE: APPROVAL DATE ORIGINAL
Sr. No Activity Manual/ Responsibility Description of Activity Done By
Application (*

3. The technical person, HOD and Senior Manager

responsible for the contract, shall approve BOQ before AD
send to contractor for signing.
4. In case contractor sends invoice and Faktur Pajak,
verification of invoice and faktur pajak shall be compared AAF
against the contract detail and the signed BAPP. Tax
verification shall be completed by Account Assistant
Finance.
5. If contractor does not send invoice, the BPV shall be
signed by the contractor or authorized person on a PPAA/AD
sealed stamp duty in accordance with the law.
6. Withholding tax and value added tax, if any, shall be
computed in the BAPP processes. PPAA
7. The remaining BAPP shall be paid in SPU, and
accordingly follow the procedures below. PPAA

6 Preparation System FC 1. The BAPP (manual and system generated) and its AAF
payment voucher supporting documents used as a basis to raise Bank
and cheque Payment Voucher and Cheque.

1/15/2024 10
PP-2 OPERATIONAL PROCEDURE MANUAL – CASH AND BANK PAYMENTS
SUBJECT PAYMENT ON BAPP RECORDED IN CONTRACT MODULE
ISSUE/REVISION DATE: APPROVAL DATE ORIGINAL
Sr. No Activity Manual/ Responsibility Description of Activity Done By
Application (*

2. Refer to BMS Module – Generating Bank Payment

Vouchers and Cheque Procedures

(* Explanation on abbreviation used:

FC Financial Controller in SPU
AM Accounts Manager
HOD Head of Department
AAF Account Assistant Finance
AD Assistant in the related department responsible for the activity to be contracted
PPAA Payable and Payment Account Assistant – Accounting
CA Contract Administration

1/15/2024 11