Invoicing Procedure

Document No. E2C-FMP-004

TABLE OF CONTENTS

I. PURPOSE.……………………………………………………………………………………………… 2
II. SCOPE.………………………………………………………………………………………………….. 2
III. REFERENCE DOCUMENTATION…….……………………………………………………….. 2
IV. DEFINITION.………………………………………………………………………………………….. 2
V. RESPONSIBILITY.……………………………………………………………….……………..…… 2 - 3
VI. PROCEDURE…………………………………………………………………………………….….… 3
VII. MEASUREMENT..…………………………………………………………….………………….... 4
VIII. QUALITY RECORDS………………………………………………………………………………… 4 - 6
IX. FLOWCHART……………………………………………………………………..…………………… 7

Rev. No. Rev. Date Description of Revision Revised by Approval

00 27/JAN/2016 New AM KIA
01 27/Mar/2018 3 Years Cycle Revision JD KIA

PROPRIETARY & CONFIDENTIAL

This document and the information contained herein is E2C proprietary know-how. This document or any part
therefore should not be reproduced stored in a retrieval system or transmitted by any means, electronic or
otherwise, or divulged without permission of E2C.

E2C-FMP-004 Page 1 of 7
I. Purpose

The purpose of this procedure is to define the method and controls in place in relation to the raising of
invoices by E2C on the project, and to document the invoice submittal, approval and payment processes.

II. Scope

The scope of this procedure covers the process for reviewing and approving contract invoice payment
request, it also applies to the processing of invoices for all awards.

III. Reference Documentation

Not Applicable

IV. Definitions

1. Invoice
- A formal request for payment; a record of a transaction submitted to Client when requesting
payment for services.

2. Advance Funding
- Providing an advance financial resource to finance a project. This refers to any advance made on
a future commitment or payment.

3. Advance Payment
- Is the part of a contractually due sum that is paid or received in advance for services, while the
balance included in the invoice will only follow the delivery.

4. Man-Hour Invoice
- Calculate the total cost of service with this invoice that contains a table whish allows you to
describe each job along with the hours spent and rate of pay.

5. Milestone/LSTK Invoice
- Contact payment scheduled according to completion of specified stages.

V. Responsibilities

1. Project Team
a. Ensuring relevant back-up to invoices is provided
b. Up-keep of invoice log & monitoring of overdue invoices
c. Ensuring availability of data for timely drafting, review, finalization and submission of fund’s
request and invoices.

E2C-FMP-004 Page 2 of 7
 2. Project Engineer
a. Preparing and submitting monthly, quarterly, biannual, or yearly invoices to Client.
b. Notifying client of overdue payments
c. Review of actual man-hour/expenses which form the basis of the actual invoice.
d. Review of draft for advance funding request and invoices and instructing adjustments as required.

3. Managing Director
a. Ensuring that the work is being accomplished in accordance with the contract scope of services or
the approved agreement.
b. Review and approval of final invoice for submittal to client.

VI. Procedure

1. Advance funding request will include man-hour cost, reimbursable expenses and forecast for the
billing period and a summary of the cumulative amounts billed. PE will submit the advance funding
request no less than 15 days prior to the billing period.

2. Each advance funding request will include a reconciliation of the previously issued actual invoice to
the advance funding request for the corresponding billing period, with the balance due/payable
amount.

3. Team will create a back-up actual invoice with comprise to man-hour schedule in format as presented
with the advance fund request including reconciliation of forecast to actual, reimbursable expenses
schedule, copy invoices, expense vouchers, and expense summaries.

4. Invoice should be submitted in duplicate and include cover letter stating the period for which
reimbursement is being sought and a summary of the work being completed.

5. PE will issue the actual invoice in the preceding month within 7 days of the end of a billing period,
showing the actual man-hours, the man-hour costs and actual expenses.

6. For advance payment invoices, the invoice will be issued in accordance with the specific contract terms
and conditions for each project. PE will administer the invoice process.

7. Invoices will be issued as milestones are achieved. Team will monitor vendor purchase orders for
progress against the agreed contract invoicing milestones and provide a relevant back-up evidence
with each invoice for the milestone’s achievement.

8. Milestone/LSTK invoices and advance will be paid within thirty-forty five (30-45) calendar days or as
agreed with client of receipt of an approved invoice. Payment of these invoices will be made in full if
retention bonds equal to 10% of cumulative earned value and issued in accordance with the contract.

9. If Client fails to pay within thirty-forty five (30-45) calendar days or as agreed with client, the delayed
payment shall accrue late payment fees, until such time as the payment is made
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 VII. Measurement (KPI’s)

Invoicing and payment measurements are primarily designed to motivate the provider to bill accurately
and on time.

Method of Frequency of
KPI Target Formula
Collection / Source Collection

20% Agreed Client Received date + 45days

Invoicing Timing Clients account payable records Quarterly
frequency (Agreed frequency)

VIII. Quality Records

EIF-01 : Man-hour Invoice Form

EIF-02 : Milestone/LSTK Invoice Form

E2C-FMP-004 Page 4 of 7
 FORM No. EIF - 01
Manhour Invoice No. :
Progress Inv.
No. :
Client Name
Date :
:
Address
:
Phone
Fax : Attn :
:
Project Project
: No. :

Client P.O.
Rev. (If any) : Date :
No.:

SL.
DESCRIPTION UNIT QTY U/RATE TOTAL
NO.

TOTAL SR :
Total in words:
SR

NOTE Transfer the

: amount to
Ensiab Engineering Consulting
National Commercial Bank (NCB)
Al-Jubail Industrial City, KSA
A/C No. ; IBAN No. : SA72-1000-0006-5732-1300-0106

Managing Director

E2C-FMP-004 Page 5 of 7
 FORM No. EIF – 02 (to be replace with Project Title)
Milestone Invoice

PROJECT NO. :
INVOICE NO. :
INVOICE PERIOD :
INVOICE DATE :
INVOICE STATUS : to be filled with
“Initial or Final”

TO : Client Name
Designation
Address
CC :
Subject :
REF. NO.:

Dear Sir,
In accordance with __________________, we bill you this ( to be filled with Initial or Final Status ) Invoice representing the
project’s issued for _______________________________ as per attached Trans. # ______________________.

TOTAL P.O. VALUE SAR amount

Project Progress Achieved %

Total
Less : Previous Billed Invoices

Final Amount Billed This Invoice - % SAR

SAR : amount in words

Please pay the amount due to us by check or by telex transfer to our account as follows:
Ensiab Engineering Consulting
National Commercial Bank (NCB)
Al-Jubail Industrial City, KSA
A/C No. ; IBAN No.: SA72-1000-0006-5732-1300-0106

Verily Truly Yours,

Ensiab Engineering Consulting
By:

MANAGING DIRECTOR

E2C-FMP-004 Page 6 of 7
IX. Flowchart

Billing
Period

E2C Team will E2C E2C Team will E2C

create a back- prepare an
up Invoice Invoice

Update Document Submittal with E2C

invoice monitoring duplicate and
cover letter

PE

Review Invoices

MD
Approval NO
Invoices

Yes

Client
Approval
Invoices

Payment E2C
Process
Client

Invoice
Paid

E2C-FMP-004 Page 7 of 7