ERP Implementation for PTPEC
PTPEC Standard Key Process Definitions Guide
Function: Purchase Module
Client: PT PANGGUNG ELECTRIC CORPORATION, SURABAYA – INDONESIA
Prepared By: ITTI Ltd
www.itti.co.in
Status: Draft
PTPEC Standard Key Process Definition Guide -To-Be Model
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ERP Implementation for PTPEC
Introduction
4
Objective
4
Scope & Coverage
4
Purpose
5
Initiator List
5
Organization Chart (Purchase)
6
Process Flow Chart
Local Material
Import Material /Spare Parts
Jakarta Purchases
Sub-ContractingLocal Spare Parts
Local Spare Parts
Memo Purchase
Operation - Warehouse
7
7
8
9
10
11
12
13
Documents Description
Purchase Requisition (Permohonan Pembelian)
Purchase Order (Order Pembelian/Order Confirmation)
Goods Inward Voucher (GIV)
Payment Requisition
14
14
14
15
15
Process Definition
Local Materials
Import Material
Import Material Spare Parts
Jakarta Purchases
Sub-Contracting
Memo Purchase
18
18
24
32
38
42
47
Status: Draft
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ERP Implementation for PTPEC
Import Spare Parts (1B)
Local Spare Parts (1A)
Inventory Valuation & Control
Status: Draft
49
54
57
PTPEC Standard Key Process Definition Guide -To-Be Model
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ERP Implementation for PTPEC
Introduction
Introduction
PT PEC is a $ 50 Million Company, incorporated in 1970, and having it’s Corporate Office at Surabaya, Indonesia. The Company is an integrated
manufacturer of Consumer Electronic products like Televisions, Audio Systems, Washing Machines, DVD Players and related accessories like Audio
Tapes, Compact Discs, TV Racks, Computer Furniture, Injection moulded Items and so on. It is an ISO 9001 certified Company with approximately
2200 Employees. There are 4 Business Units and 2 Sub Units and the manufacturing facilities of the Company are centrally located at Surabaya,
Indonesia. The Distribution and Logistics functions are separately handled by a subsidiary Company, PT Akari Indonesia. The Company’s products
are marketed and sold under the brand names “AKARI” and “PANAREC”. PT.PEC is also an OEM Manufacturer for World Class brands like
“MAXELL”. The company exports its products to Australia, Europe, South East Asia and Middle East.
The Company has Regional Offices and Warehouses at Surabaya & Jakarta and also offices at Australia and Holland.
This Document gives the details of PTPEC process definition data definition flow, across all units that will help to implement the Mfg/Pro System
according to the PTPEC business standard.
Objective
Objective
The Objective of this document is to explain the To-Be model flow of the purchase and inventory module for Unit 1A & 1B.
Scope &
& Coverage
Coverage
Scope
Is to understand the transactions & reporting carried out under Purchase & Inventory. This would cover the departments under the Unit 1A & 1B.
Find below the list of processes that would be studied under Purchase & Inventory.

Purchase Module
 Local Material
 Local Spare
 Import Material
 Import Spare Parts
 Jakarta Purchases
 Purchase Return
 Memo
Status: Draft
PTPEC Standard Key Process Definition Guide -To-Be Model
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ERP Implementation for PTPEC



Local GIV
Quality Control
Sub-contracting
Purpose
Purpose
The Purpose of this document is to understand the existing model (As-Is Process). This would help in arriving at the To-Be Model, which would be
mapped to MFG/PRO.
Initiator
Initiator List
List
Purpose: This section lists the codes used to identify users in the Setup and Process Flow documents. This document is often referenced while
reading or modifying the Setup and Process Flow documents.
SL #
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Status: Draft
Division / Department /
Section
Purchase Department
Production Planning and
Inventory control
Supplier
Quality Control
Department
Unit Warehouse/Godown
Exim-Finance
Exim Department
Marketing Team
Sub-Contractor
Koperasi
General Service
Department
Parts Control
Initiator
Description
PD
PPIC
SUPP
QCD
Purchase Department
Production Planning and Inventory
control
Supplier
Quality Control Department
GDN
EXFN
EXD
MKT
SC
KOP
GSD
Unit Warehouse/Godown
Exim-Finance
Exim Department
Marketing Team
Sub-Contractor
Koperasi
General Service Department
PC
Parts Control
PTPEC Standard Key Process Definition Guide -To-Be Model
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ERP Implementation for PTPEC
Organization Chart (Purchase)
Status: Draft
PTPEC Standard Key Process Definition Guide -To-Be Model
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ERP Implementation for PTPEC
Process Flow Chart
Process Flow Chart
Local Material
Print PR
Prepare Purchase
Order
Order Print
Checked by Section
Head
Approved by
Department Head
Approve Purchase
Requisition
Quality Check
Godown
Supplier
Purchase
PPIC
Prepare PR
Status: Draft
B
Copy of GIV
A
Original PO
Approved by Unit
Head
Inform Supplier if
any discrepancy
Verify GIV
1 copy PO filed &
copy given to AP
A
A
Inform Supplier
C
D
Material
Shipment
Verify Surat
Jalan with
Order
SJ vs
Unloaded
Unload
Material
B
GIV filed &
copy to AP
A
Copy of PO
C
Receive
Material in
Godown/Loc
Change status
to Reject
D
Print GIV
Purchase
Return
GIV Approval
Dept Head
N
C
Approved by
Department Head
Print RTV
Mtl.
Returned
QC-Pend >QC-Clear
Status
QC Sampling
Stock Status /
Receipt Report
pending QCCheck
B
QC
Check
Y
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ERP Implementation for PTPEC
Prepare PR
Print PR
Checked by Section
Head
Prepare Purchase
Order
Order Print
Order Approval
Unit Head
A
1 copy filed &
copy given to AP
C
Copy of GIV
A
Original PO
Verify Packing
List with
Order/Inv
C
A
Quality Check
Godown /Parts Control
Supplier
Purchase
PPIC/Pts
Control
Import Material /Spare Parts
Status: Draft
Check PL with
Unloaded Qty
D
Copy of PO
Stock Status/
Receipt Report
pending QCCheck
Change Status
to Reject
D
Inform Supplier
Print GIV
Purchase
Return
E
Approved by Unit
Head /& Director
A
Print GIT
Invoice received by
EXIM
GIV Entry
E
B
GIV Approval
Dept Head
Print RTV
C
Approved by
Department Head
Purchase
Return
QC-Pend  QCClear Status
QC Sampling
D
Print L/C Req /
Remittance Req
GIT Entry at landed
cost
Shipment
Material
Unload
Material
GIV filed &
copy to AP
Inform Supplier if
any discrepancy
Verify GIV
Approve Purchase
Requisition
Prepare L/C
Req/Remittance
Req
Calculate Add-On
Cost
B
Approved by
Department Head
QC
Check
PTPEC Standard Key Process Definition Guide -To-Be Model
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ERP Implementation for PTPEC
Jakarta Purchases
Checked & Approved
by Department Head
Print PR
Copy of approved PR to
Purchase - SBY
Approve Purchase
Requisition
Jakarta
Prepare PR
Copy of PO
Warehouse
Supplier
Purchase (SBY)
A
B
A
Copy of GIV
Verify GIV
Order Print
Order Approval
Unit Head
A
1 copy filed &
copy given to AP
A
Inform Supplier if
any discrepancy
Original PO
Material Shipment
Verify Surat
Jalan with
Order
A
Status: Draft
Prepare Purchase
Order
Receive PR
Unload
Material
SJ vs
Unloaded
Receive
Material in
Godown/Loc
Print GIV
GIV Approval
Dept Head
B
Copy of PO
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ERP Implementation for PTPEC
Sub-Contracting
Checked by Section
Head
Print PR
Prepare PO
(Converted Item)
Order Print
Approved by
Department Head
Approve Purchase
Requisition
Sub Contract
Purchase
PPIC
Prepare PR
C
Copy of GIV
A
Original PO
Godown
Copy of PO
B
Verify
Finished Mtl
D
Change status
to Reject
A
Inform Supplier if
any discrepancy
Verify GIV
Unload
Material
SJ vs
Unloaded
Reverse
Prod Entry
E
Inform subcontractor
D
Quality Check
Dispatch Mtl to
Sub Contractor
Approval from
Dept Head
Receive
Material in
Godown/Loc
Purchase
Return
Production
Entry for
Receipt Qty
Stock Status /
Receipt Report
pending QCCheck
N
D
Print GIV
Approved by
Department Head
Print RTV
Approved by
Department Head
C
Mtl.
Returned
QC-Pend >QC-Clear
Status
QC Sampling
Status: Draft
E
B
Print SJ
Prepare SJ
1 copy PO filed &
Copy given to AP
A
Send Finished
Material to PEC
Process Raw
Material (Conv)
Mtl. Receipt
A
Order Approval
Unit Head
QC
Check
Y
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ERP Implementation for PTPEC
Local Spare Parts
Parts Control
Prepare PR
A
Purchase
Status: Draft
B
Receive
Material in
Godown/Loc
Copy of PO
Receive Purchase
Requisition
A
Checked by Section
Head
Print PR
Procure Material
Print GIV
Verify Qty with
Invoice
Approved by
Department Head
GIV Approval
Dept Head
Approve Purchase
Requisition
GIV filed &
copy to AP
Prepare Purchase
Order
B
Order Print
Order Approval
Unit Head
1 copy filed &
copy given to AP
Copy of GIV
PTPEC Standard Key Process Definition Guide -To-Be Model
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A
ERP Implementation for PTPEC
Memo Purchase
Purchase
Prepare PR
Checked by Section
Head
Print PR
B
Koperasi/GS
Godown
Status: Draft
A
Copy of PO
Approve Purchase
Requisition
Copy of GIV
Check Qty with PR
Receive PR
Approved by
Department Head
Prepare PO
Order Print
Order Approval
Unit Head
A
Send Material
GIV Entry
GIV Print
GIV Approval
Dept Head
1Copy Filed & given
to AP Department
PTPEC Standard Key Process Definition Guide -To-Be Model
B
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ERP Implementation for PTPEC
Operation - Warehouse
GIV Entry
Verify Surat
Jalan / PL (Local
/ Import)
Unload
Material
Check SJ/PL
with Unloaded
Qty
Print GIV
GIV Entry
GIV Approval
Dept Head
Transfer to Production/Sub-contractor/QC
Mtl. Req from
Production
Prepare SJ
Print SJ
Approved by WH
in-charge
Material transferred to
Production
Return from
Production
Mtl. Transferred
back from Prod.
Receipt Entry into
Warehouse
Print Receipt Note
Approved by WH
in-charge
Receipt from Sub-contractor
Verify Surat
Jalan
Unload
Material
Check SJ with
Unloaded Qty
GIV Entry
Conversion
Print GIV
GIV Approval
Dept Head
Purchase Return
Purchase
Return Approval
Status: Draft
Purchase
Return
Print RTV
Approved by
Department Head
PTPEC Standard Key Process Definition Guide -To-Be Model
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ERP Implementation for PTPEC
Documents
Description
Documents
Description
This section describes the documents involved in processing purchase order. The documents described below are very necessary for the purchase cycle. The
documents are
1. Permohonan Pembelian (Purchase Requisition)
2. Order Pembelian (Purchase Order)
3. GIV (Goods Inward Voucher)
Purchase Requisition (Permohonan Pembelian)
Permohonan Pembilian (PP) is also known as Purchase Requisition. This document is prepared by PPIC and Engneering section. This document will be
prepared and issued to the purchasing department whenever there is requirement for such material.
All PP issued to Purchasing Department will contain the PP Number. The numbering sequence of PP is as follows: - First characters is the unit identification
followed by last digit of the year and Material/Non-Material/Spare Parts Identifier and followed by a running serial number(Specific to unit and material
identification).
Preparation and Authorization
The document is prepared by the respective section, checked by the section head and approved by department head.
Purchase Order (Order Pembelian/Order Confirmation)
A Purchase Order is a contract with an outside supplier to purchase an amount of a particular product at a known price, due to be delivered on a specified
date. After receiving requisition from the respective department, purchase department will contact supplier for the material and carry out price negotiation.
After the price negotiation purchase department will prepare the Purchase order.
Purchase Order will contain the Order number which is in the below format
First character represents unit followed by the identification of order whether for local/import for domestic usage or import for export usage, followed bye year
code and running serial number unit specific
Multiple Orders can be created for one Permohonan Pembelian (PP) as the material is sourced from multiple suppliers.
Status: Draft
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ERP Implementation for PTPEC
Preparation and Authorization
The document is prepared by purchase department and authorized by unit head.
Goods Inward Voucher (GIV)
Goods inward voucher is prepared when material arrives at PEC. This document is prepared by Incoming Department or by export warehouse after receiving
material from supplier.
Goods Inward Voucher will contain the GIV number which is in the below format
•LReceipt by Local, AReceipt by Air, SReceipt by Sea
•0Non-Mtl,EConsumed for Export, D Consumed for Domestic
BPurchase FG
•Unit Identification
•Month
•Year
•Running Serial Number (Unit Specific)
Preparation and Authorization
The document is prepared by Incoming department check and reviewed by the section head and authorized by department head
Payment Requisition
Purchase department requests finance department to make the payment to the supplier by preparing payment requisition. This document is prepared along
with order confirmation.
The Payment Requisition contain the following information
Header
Requisition number LCYUXXXX
LCLetter of Credit
Y Year
U Unit Identification
XXXX Running Serial Number
Status: Draft
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ERP Implementation for PTPEC
Requisition Date
Payment Method: There are 4 types of payment method
a) LC AT SIGHT: After supplier ships material payment will be made by supplier bank.
b) USANCE: After shipment payment will be done after number of days.
Amount: Total value to be paid
(FOB/XXX/XXX/XXX): Whether shipment is FOB/CIF/CNF
Condition LC/TT: LOD (Last Opening Date): LC should be opened before this date
LSD (Last Shipping Date): Supplier has to ship the material within LSD. If any discrepancy supplier has to pay for the charges.
EXD (Expiry Date): LC Expiry Date.
LC Applicant: Owner of LC
Credit of: Supplier Name
Advising Bank: Supplier Bank
Bank A/C No: Supplier Account Number
Purpose: Payment for
a) Purchase of a material
Ref No: Invoice Number
Description:
Detail
Type: Purchasing Material
OC NO: Order Number
Quantity: Ordered Quantity
Unit: Unit of measurement
Unit Price: Price per um
Amount: Total Item Value
Grand Total: Total value of materials
Others: Other charges if any
Total At Usance: Total value after credit days
Footer
Remark: Remarks If any
Status of Order: Whether order usage will be for local or export
Freight Method: There are three types of freight
Status: Draft
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ERP Implementation for PTPEC
a) FOB: Free on Board
b) CIF: Cost Insurance freight (Local Handling + Ocean Freight + Insurance) are included in this freight.
c) CNF: Cost and freight
Freight Cost:
Prepaid: Freight Cost can be CIF or CNF
Collected: Freight cost is FOB
Shipment From: Source of the shipment
To: Destination of the shipment
Partial Shipment: Whether partial shipment is allowed or not allowed
Transshipment: Transshipment is allowed or not allowed
C.O.O: Source shipment country
Preparation and Authorization
The document is prepared by Purchase Department checked by department head and authorized by unit head.
Status: Draft
PTPEC Standard Key Process Definition Guide -To-Be Model
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ERP Implementation for PTPEC
Process Definition
Local Materials
I. Introduction
The purchase department places local Material purchase orders to the supplier after receiving Purchase Requisition from PPIC for Material.
This section explains the Local Material purchases. Purchase Requisition should be prepared by PPIC and to be given to purchase
department
II. Description
PPIC prepares Purchase Requisition and gives it to Purchase Department to procure the material. After receiving the requisition from PPIC,
purchase department will identify the Supplier(s) and carry out the price negotiation and place the order. One PP can be split into multiple
orders based on the type of material and supplier. Purchase department prepares the Purchase Order on finalizing the Order qty. Purchase
Order is approved by the Unit Head. Godown receives the material and verifies Purchase Order with Surat Jalan. Godown will unload the
material and check the unloaded quantity with order. Godown prepares GIV and prints the GIV. GIV is approved by the Department Head. QC
Department verifies the receipt report pending for QC. Godown will issue the material to QC Department for QC Check. QC Department
Checks the material. If QC is not cleared then QC informs purchase department. Purchase Department informs supplier about the Quality of
the material and informs godown to return the stock to the supplier.
III. Process Owner/Primary Responsibility: Purchase Department.
IV. Frequency -
As required.
V. Pre-requisite 1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Status: Draft
Inventory Control File
Inventor Account Maintenance
PO Control File (5.24)
System Control File (36.1)
Product Line Maintenance (1.2.1)
Site Master (1.1.13)
Location Master (1.1.18)
Item Master (1.4.1)
Supplier Maintenance (2.3.1)
Work Order Control File (16.24)
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ERP Implementation for PTPEC
VI. Process Flow
SL #
Activity
PPIC
PD
SUPP
GDN
QC
Business Rule
QAD Menu
Option/System
5.1.4
1.
Purchase Requisition
PPIC/Section prepares
PP (purchase
requisition).
2.
Purchase Requisition
Print
Print Purchase
Requisition.
Checked by Section
head.
Approved by Dept
Head.
5.1.X
3.
Approval of Purchase
Requisition
5.1.16
4.
Check Qty/Delivery
Date with supplier
Prepare Approval
Requisition
Purchase Requisition
given to Purchase
Department.
Purchase department
checks whether
supplier is able to
deliver Qty at the
required date.
5.
Price Negotiation
Status: Draft
If required qty is not
within purchase lead
time then PP will be
give back to
PPIC/section for
revision
Purchase department
will carry out the price
negotiation with
supplier.
PTPEC Standard Key Process Definition Guide -To-Be Model
PreRequisite
16.24
Work
Order
Control
File
5.1.4
Purchase
Requisiti
on
Reference
Document
LKP1/LKP2
5.1.4
Purchase
Requisiti
on
Manual
Manual
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ERP Implementation for PTPEC
6.
Purchase Order
7.
Print Purchase Order
8.
Surat Jalan
9.
Material Receipt at
PEC
10. Unload Material
11. GIV Entry
Status: Draft
After the price is
negotiated the
department head shall
confirm the same to
place the order.
Prepare Purchase
Order.
Print Purchase Order
Authorized by unit
Head
Original PO copy sent
to Supplier.
Copy PO will remain in
purchase department
One Copy of PO will be
send to AP Department
One Copy of PO will be
given to Godown
Supplier Prepares
Surat Jalan and
dispatch material to
PEC.
Godown will receive the
material.
Checks Surat Jalan
with Purchase Order
copy.
Verify Unloaded
Quantity with Surat
Jalan Quantity.
GIV Entry
Receive Material
Godown/Loc in QC-
PTPEC Standard Key Process Definition Guide -To-Be Model
5.7
5.24
Purchase
Order
Control
File
5.10
5.7
Purchase
Order
Manual
Manual
Manual
5.13.1
5.7
Purchase
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ERP Implementation for PTPEC
PEND Status.
GL Impact
Dr Stk
Cr POR
Order
12. GIV Print
Print GIV
Approved by
Department Head.
GIV Filed & Copy to AP
Department
And another Copy send
to Purchase
Department
5.13.2
13. Verify GIV
Purchase Department
verifies GIV Copy with
the Order.
If any Discrepancy
informs Supplier
Quality Checks the
Receipt Report Pending
for QC Check
Prepare Surat Jalan.
Transfer from Godown
to QC Location in QCPEND Status
Check Quality of the
material.
If QC Cleared then
Changing status of
stock from QC-PEND to
QC-CLEAR
IF QC is not cleared
then Quality informs
purchase department.
Purchase Department
informs supplier.
Manual
14. Check Stock Status
15. QC Sampling
16. QC Check
17. QC Failed
Status: Draft
PTPEC Standard Key Process Definition Guide -To-Be Model
GIV
Entry
3.6.5
3.4.X
3.1.1
Manual
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ERP Implementation for PTPEC
18. Stock Return
19. Stock Return Print
Purchase Department
informs Godown to
return stocks back to
supplier.
Change the status of
the material to reject.
Godown returns the
Stock to the supplier.
GL Impact
Dr POR
Cr Stock
3.1.1
Inventory Detail
Maintenance
5.13.7
Purchase
Order Returns
Print Stock Return.
Approved by
Department Head
5.13.8
Purchase
Return Print
VII. Explanation of Activities
1.
2.
3.
4.
5.
6.
Purchase Requisition will be prepared by PPIC for the procurement of material.
Print the purchase requisition by PPIC, Requisition checked by section head and approved by department head.
Approve purchase requisition in system after getting approval from department head. Purchase Requisition to purchase department.
Purchase Department on receipt of purchase requisition prepares purchase order attaching the purchase requisition number to the order.
Print the purchase order approved by unit head. Original PO given to Supplier PO Copy filed and another copy given to AP Department and Godown.
On Receipt of material Godown receives the material checks the surat Jalan with the order. If the documents are not matching inform purchase
department.
7. If the Documents are matching then unload the material and verify the quantity unloaded with the invoice.
8. Make a GIV Entry, in this transaction the stocks will be moved from in-transit to the respective Godown location.
GL impact will
Dr Stock (Material Val + VAT(If any) )
Cr POR
9. Print the GIV, GIV is checked by the section head and approved by department head. Copy of GIV given to purchase department.
10. Purchase Department verifies the GIV with the order quantity.
11. QC Department takes the stock status report for inventory status “QC-PEND” for the unit.
Status: Draft
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ERP Implementation for PTPEC
12. QC Department takes the samples of items for testing QC from GODOWN. Godown prepares the Surat Jalan for the transfer of the material from
Godown to QC Location with the Inventory status as “QC-PEND”.
13. Prints the Surat Jalan verified by department head.
14. QC checks the material and confirms the material is QC-Cleared or QC-Failed to the Godown.
15. After getting the confirmation from the QC Department. Godown transfers the total quantity to the “QC-CLEAR” Status.
16. If QC Failed then QC Department informs the purchase department about status of QC failed material.
17. Purchase department informs supplier and informs Godown to return the stock to the supplier.
18. Print the return to vendor document authorized by department head.
Status: Draft
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ERP Implementation for PTPEC
Import Material
I. Introduction
The purchase department places import material purchase orders to the supplier after receiving purchase requisition from PPIC.
II. Description
PPIC prepares Purchase Requisition for materials and gives it to Purchase Department to procure the material. After receiving the requisition
from PPIC, purchase department will verify the stock. If the stock on hand exceeds more than 3/4 th of the next months requirement then
purchase department will send the PP back to PPIC for revision One PP can be split into multiple orders based on the type of material and
supplier. Purchase department prepares the Purchase Order on finalizing the Order qty. OC is approved by the Unit Head. On Receipt of
invoice from supplier Purchase department makes a GIT Entry. Godown receives the material and verifies Order Confirmation with Packing
List. Godown will unload the material and check the unloaded quantity with order. Godown prepares GIV and prints the GIV. GIV is approved
by the Department Head. QC Department verifies the receipt report pending for QC. Godown will issue the material to QC Department for QC
Check. QC Department Checks the material. If QC is not cleared then QC informs purchase department. Purchase Department informs
supplier about the Quality of the material and informs godown to return the stock to the supplier.
III. Process Owner/Primary Responsibility: Purchase Department.
IV. Frequency -
As required.
V. Pre-requisite 1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Status: Draft
Inventory Control File
Inventor Account Maintenance
PO Control File (5.24)
System Control File (36.1)
Product Line Maintenance (1.2.1)
Site Master (1.1.13)
Location Master (1.1.18)
Item Master (1.4.1)
Supplier Maintenance (2.3.1)
Work Order Control File (16.24)
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ERP Implementation for PTPEC
VI. Process Flow
SL #
Activity
PPIC
PD
SUPP
EXFN
GDN
QC
Business Rule
1.
Purchase
Requisition
PPIC prepares
Purchase Requisition
2.
Purchase
Requisition
Print
3.
Approval
Print Purchase
Requisition.
Checked by Section
head.
Approved by Dept
Head.
Purchase Requisition
given to Purchase
Department.
Approval Requisition
4.
Stock Position
Stock Position entry to
enter the planned
consumption quantity.
5.
Stock Position
Print
6.
Check
Qty/Delivery
Date with
supplier
Stock Position Print.
Given to Purchase
Department
Purchase Department
checks the Stock
Position.
Stock On Hand at any
point of time should
not exceed more than
Status: Draft
QAD Menu
Option/System
5.1.4
Purchase
Requisition
Maintenance
PreRequisite
5.24
Purchase
Order
Control
File
5.1.X
5.1.4
Purchase
Requisitio
n
5.1.16
Requisition
Approval
Maintenance
5.1.X
5.1.4
Purchase
Requisitio
n
PTPEC Standard Key Process Definition Guide -To-Be Model
Reference
Document
Imp2
Imp1
5.1.X
Manual
Page: 25 of 59
ERP Implementation for PTPEC
3/4th of next month’s
requirement. If
exceeds then PR is
given back to PPIC for
revision.
Send Required Qty
and Required Date to
supplier by mail/fax.
Purchase department
checks whether
supplier is able to
deliver Qty at the
required date.
Purchase department
will carry out the price
negotiation with
supplier and fix the
price for the order.
7.
Price
Negotiation
8.
Proforma
Invoice
Receive Proforma
Invoice from supplier
for preparation of order
9.
Order
Confirmation
After Receipt of
Proforma Invoice
Prepare Order
Confirmation.
10.
Order Print
Purchase Order Print.
Authorized by Unit
Head.
Original PO given to
supplier
One copy filed to
Godown & Finance
Status: Draft
PTPEC Standard Key Process Definition Guide -To-Be Model
Manual
Manual
Imp3
5.7
5.1.4
Purchase
Requisitio
n
5.10
Purchase
Order Print
5.7
Purchase
Order
Imp4
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ERP Implementation for PTPEC
Department
11.
12.
Prepare
Payment
Requisition for
LC or
Remittance
Requisition for
TT
Payment
Requisition /
Remittance
Requisition
Print
13.
LC
Opening/Bank
advise
14.
Shipping
Documents
Status: Draft
Prepare Payment
Requisition.
5.1.X
5.7
Purchase
Order
Print LC Payment /
Remittance
Requisition.
Checked by
Department head.
Authorized by Unit
Head or Managing
Director/Finance
Director.
Send to Finance
Department
On Opening LC
Finance department
will send the copy of
opened LC/TT to
purchase department.
Purchase Department
sends the copy of
LC/TT to Supplier.
5.1.X
5.7
Purchase
Order
On Receipt of LC/RR
Supplier sends
shipping documents to
EXIM Department
Exim Sends a copy of
Shipping documents to
Godown & Purchase
Department.
PTPEC Standard Key Process Definition Guide -To-Be Model
Imp5
Manual
Manual
GIVS3
GIVS4
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ERP Implementation for PTPEC
15.
GIT Entry
16.
Receipt of
Material
17.
Unload Material
18.
GIV Entry
GIV Entry
Transfer Stocks from
Intransit to
Godown/Loc in QCPEND Status.
GL Impact
Dr Stk
Cr GIT
5.13.X
GIT Entry
19.
GIV Print
Print GIV
Approved by
Department Head.
GIV Filed & Copy to
AP Department
And another Copy
send to Purchase
Department
5.13.2
GIV Entry
Status: Draft
Purchase department
makes GIT Entry.
Receipt of stock will be
in intransit location
GL Impact
Dr GIT (Mtl + Add-on)
Cr Add-on Charges
Cr POR
On Receipt of Material
from supplier. Godown
checks packing list, bill
of lading with the
order/invoice
Verify Unloaded
Quantity with Surat
Jalan Quantity.
PTPEC Standard Key Process Definition Guide -To-Be Model
5.13.1
Purchase
Order
Receipts
5.7
Purchase
Order
Maintenan
ce
Manual
Manual
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ERP Implementation for PTPEC
20.
Verify GIV
Purchase Department
verifies GIV Copy with
the Order.
If any Discrepancy
informs Supplier.
Manual
21.
Check Stock
Status
Quality Checks the
Receipt Report
Pending for QC Check
3.6.5
22.
QC Sampling
3.4.X
Surat Jalan
23.
QC Check
Prepare Surat Jalan by
Godown.
Transfer from Godown
to QC Location in QCPEND Status
Check Quality of the
material.
If QC Cleared then
Changing status of
stock from QC-PEND
to QC-CLEAR
24.
QC Failed
25.
Stock Return
Status: Draft
IF QC is not cleared
then Quality informs
purchase department.
Purchase Department
informs supplier.
Purchase Department
informs Godown to
return stocks back to
supplier.
Change the status of
the material to Reject.
Godown returns the
Stock to the supplier.
3.1.1
Inventory
Detail
Maintenance
Manual
3.1.1
Inventory
Detail
Maintenance
PTPEC Standard Key Process Definition Guide -To-Be Model
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ERP Implementation for PTPEC
26.
Stock Return
Print
GL Impact
Dr POR
Cr Stock
5.13.7
Purchase
Order Return
Print Stock Return.
Approved by
Department Head
5.13.8
Purchase
Return Print
VII. Explanation of Activities
1.
2.
3.
4.
5.
6.
7.
Purchase Requisition will be prepared by PPIC for the procurement of material
Print the purchase requisition by PPIC, Requisition checked by section head and approved by department head.
Entry in Stock position of the usage of the raw material.
Print the stock position and send it to purchase department
Approve purchase requisition in system after getting approval from department head. Purchase Requisition send to purchase department.
Purchase Department on receipt of purchase requisition prepares purchase order attaching the purchase requisition number to the order.
Print the purchase order & approved by unit head. Original PO given to Supplier PO Copy filed and another copy given to AP Department and
Godown.
8. Prepare LC payment requisition attaching multiple orders to the requisition.
9. Print the LC payment requisition, requisition checked by department head and approved by unit head. LC Payment requisition given to finance
department.
10. On Opening LC Finance department will send the copy of opened LC/TT to purchase department. Purchase Department sends the copy of LC/TT to
Supplier.
11. Supplier on receipt of LC copy delivers the goods and sends the shipping documents to the exim department.
12. Exim Department sends the copy of shipping documents to the purchase department. Purchase department makes GIT entry. When Doing GIT Entry
the other add-on charges will be entered and confirm the GIT transaction. In this transaction the stocks will be received in in-transit location of the unit
with the inventory status as QC-PEND.
GL impact will
Dr GIT (Material Val + Add-on Charge)
Cr POR
Cr Add-on Charge
13. On Receipt of material Godown receives the material checks the invoice with the shipping documents. If the documents are not matching inform
purchase department.
14. If the Documents are matching then unload the material and verify the quantity unloaded with the invoice.
15. Make a GIV Entry, in this transaction the stocks will be moved from in-transit to the respective Godown location.
Status: Draft
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ERP Implementation for PTPEC
GL impact will
Dr Stock (Material Val + Add-on Charge)
Cr GIT
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
Print the GIV, GIV is checked by the section head and approved by department head. Copy of GIV given to purchase department.
Purchase Department verifies the GIV with the order quantity.
QC Department takes the stock status report for inventory status “QC-PEND” for the unit.
QC Department takes the samples of items for testing QC from GODOWN. Godown prepares the Surat Jalan for the transfer of the material from
Godown to QC Location with the Inventory status as “QC-PEND”.
Prints the Surat Jalan verified by department head.
QC checks the material and confirms the material is QC-Cleared or QC-Failed to the Godown.
After getting the confirmation from the QC Department. Godown transfers the total quantity to the “QC-CLEAR” Status.
If QC Failed then QC Department informs the purchase department about status of QC failed material.
Purchase department informs supplier and informs Godown to return the stock to the supplier.
Print the return to vendor document authorized by department head.
Status: Draft
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ERP Implementation for PTPEC
Import Material Spare Parts
I. Introduction
The purchase department places import material purchase orders to the supplier after receiving purchase requisition from PPIC.
II. Description
Parts Control prepares Purchase Requisition for materials and gives it to Purchase Department to procure the material. One PP can be split
into multiple orders based on the type of material and supplier. Purchase department prepares the Purchase Order on finalizing the Order qty.
OC is approved by the Unit Head. On Receipt of invoice from supplier purchase department makes a GIT Entry. Godown receives the material
and verifies Order Confirmation with Packing List. Godown will unload the material and check the unloaded quantity with order. Godown
prepares GIV and prints the GIV. GIV is approved by the Department Head. QC Department verifies the receipt report pending for QC.
Godown will issue the material to QC Department for QC Check. QC Department Checks the material. If QC is not cleared then QC informs
purchase department. Purchase Department informs supplier about the Quality of the material and informs godown to return the stock to the
supplier.
III. Process Owner/Primary Responsibility: Purchase Department.
IV. Frequency -
As required.
V. Pre-requisite 1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Inventory Control File
Inventor Account Maintenance
PO Control File (5.24)
System Control File (36.1)
Product Line Maintenance (1.2.1)
Site Master (1.1.13)
Location Master (1.1.18)
Item Master (1.4.1)
Supplier Maintenance (2.3.1)
Work Order Control File (16.24)
VI. Process Flow
Status: Draft
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ERP Implementation for PTPEC
SL
#
1.
Activity
PC
PD
SUPP
EXFN
Business Rule
Purchase
Requisition
Parts Control prepares
Purchase Requisition
2.
Purchase
Requisition
Print
Print Purchase
Requisition.
Checked by Section
head.
Approved by Dept
Head.
3.
Approval
4.
Check
Qty/Delivery
Date with
supplier
Approval Requisition
Purchase Requisition
given to Purchase
Department.
Send Required Qty
and Required Date to
supplier by mail/fax.
5.
Price
Negotiation
6.
Proforma
Invoice
Status: Draft
Purchase department
checks whether
supplier is able to
deliver Qty at the
required date.
Purchase department
will carry out the price
negotiation with
supplier and fix the
price for the order.
Receive Proforma
Invoice from supplier
QAD Menu
Option/System
5.1.4
Purchase
Requisition
Maintenance
PreRequisite
5.24
Purchase
Order
Control
File
5.1.X
5.1.4
Purchase
Requisitio
n
5.1.16
Requisition
Approval
Maintenance
Manual
5.1.4
Purchase
Requisitio
n
Reference
Document
Imp2
Manual
Manual
PTPEC Standard Key Process Definition Guide -To-Be Model
Imp3
Page: 33 of 59
ERP Implementation for PTPEC
for preparation of order
After Receipt of
Proforma Invoice
Prepare Order
Confirmation.
7.
Order
Confirmation
8.
Order Print
Purchase Order Print.
Authorized by Unit
Head.
Original PO given to
supplier
One copy filed & copy
given to parts control
Finance Department
9.
Prepare
Payment
Requisition for
LC or
Remittance
Requisition for
TT
Payment
Requisition /
Remittance
Requisition
Print
10.
11.
Status: Draft
LC
Opening/Bank
advise
5.7
5.1.4
Purchase
Requisitio
n
5.10
Purchase
Order Print
5.7
Purchase
Order
Prepare Payment
Requisition.
5.1.X
5.7
Purchase
Order
Print LC Payment /
Remittance
Requisition.
Checked by
Department head.
Authorized by Unit
Head or Managing
Director/Finance
Director.
Send to Finance
Department
On Opening LC or
Bank Advise Finance
department will send
5.1.X
5.7
Purchase
Order
Imp4
Imp5
Manual
PTPEC Standard Key Process Definition Guide -To-Be Model
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ERP Implementation for PTPEC
the copy of opened
LC/TT to purchase
department.
Purchase Department
sends the copy of
LC/TT to Supplier.
12.
Shipping
Documents
13.
GIT Entry
14.
Receipt of
Material
15.
Unload Material
16.
GIV Entry
Status: Draft
On Receipt of LC/RR
Supplier sends
shipping documents to
EXIM Department
Exim Sends a copy of
Shipping documents to
Godown & Purchase
Department.
Purchase department
makes GIT Entry.
Receipt of stock will be
in intransit location
GL Impact
Dr GIT (Mtl + Add-on)
Cr Add-on Charges
Cr POR
On Receipt of Material
from supplier. Godown
checks packing list, bill
of lading with the
order/invoice
Verify Unloaded
Quantity with Surat
Jalan Quantity.
GIV Entry
Transfer Stocks from
Intransit to
Godown/Loc in QCPEND Status.
Manual
5.13.1
Purchase
Order
Receipts
GIVS3
GIVS4
5.7
Purchase
Order
Maintenan
ce
Manual
Manual
5.13.X
GIT Entry
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ERP Implementation for PTPEC
17.
GIV Print
18.
Verify GIV
GL Impact
Dr Stk
Cr GIT
Print GIV
Approved by
Department Head.
GIV Filed & Copy to
AP Department
And another Copy
send to Purchase
Department
Purchase Department
verifies GIV Copy with
the Order.
If any Discrepancy
informs Supplier.
5.13.2
GIV Entry
Manual
VII. Explanation of Activities
1.
2.
3.
4.
5.
6.
7.
8.
9.
Purchase Requisition will be prepared by parts control for the procurement of material
Print the purchase requisition by parts control, Requisition checked by section head and approved by department head.
Approve purchase requisition in system after getting approval from department head. Purchase Requisition send to purchase department.
Purchase Department on receipt of purchase requisition prepares purchase order attaching the purchase requisition number to the order.
Print the purchase order & approved by unit head. Original PO given to Supplier PO Copy filed and another copy given to AP Department and
Godown.
Prepare LC payment requisition attaching multiple orders to the requisition.
Print the LC payment requisition, requisition checked by department head and approved by unit head. LC Payment requisition given to finance
department.
On Opening LC Finance department will send the copy of opened LC/TT to purchase department. Purchase Department sends the copy of LC/TT to
Supplier.
Supplier on receipt of LC copy delivers the goods and sends the shipping documents to the exim department.
Status: Draft
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ERP Implementation for PTPEC
10. Exim Department sends the copy of shipping documents to the purchase department. Purchase department makes GIT entry. When Doing GIT Entry
the other add-on charges will be entered and confirm the GIT transaction. In this transaction the stocks will be received in in-transit location of the unit
with the inventory status as QC-PEND.
GL impact will
Dr GIT (Material Val + Add-on Charge)
Cr POR
Cr Add-on Charge
11. On Receipt of material Godown receives the material checks the invoice with the shipping documents. If the documents are not matching inform
purchase department.
12. If the Documents are matching then unload the material and verify the quantity unloaded with the invoice.
13. Make a GIV Entry, in this transaction the stocks will be moved from in-transit to the respective Godown location.
GL impact will
Dr Stock (Material Val + Add-on Charge)
Cr GIT
14. Print the GIV, GIV is checked by the section head and approved by department head. Copy of GIV given to purchase department.
15. Purchase Department verifies the GIV with the order quantity.
Status: Draft
PTPEC Standard Key Process Definition Guide -To-Be Model
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ERP Implementation for PTPEC
Jakarta Purchases
I. Introduction
Jakarta marketing team prepares the Purchase Requisition to procure material. Purchase Department (Sby) raises the purchase order for the
material. Original PO will be sent to the supplier the copy of PO filed in purchase department.
II. Description
Marketing team prepares the Purchase Requisition. A Copy of Purchase Requisition will be send to Purchase Department (SBY). Purchase
department (sby) prepares Purchase Order. Original PO will be given supplier. When Jakarta receives material copy of Surat Jalan will be
send to purchase department requesting for payment to the supplier. On Receipt of material, Jakarta sends the Surat Jalan Purchase
Department. Purchase Department sends the copy of Surat Jalan of Godown, Godown will verify the Surat Jalan with purchase order and
prepare GIV approved by department head.
III. Process Owner/Primary Responsibility: Purchase Department.
IV. Frequency -
As required.
V. Pre-requisite 1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Inventory Control File
Inventor Account Maintenance
PO Control File (5.24)
System Control File (36.1)
Product Line Maintenance (1.2.1)
Site Master (1.1.13)
Location Master (1.1.18)
Item Master (1.4.1)
Supplier Maintenance (2.3.1)
Work Order Control File (16.24)
VI. Process Flow
Status: Draft
PTPEC Standard Key Process Definition Guide -To-Be Model
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ERP Implementation for PTPEC
SL #
Status: Draft
Activity
MKT
PD
PPIC
GDN
Business Rule
QAD Menu
Option/System
5.1.4
Purchase
Requisition
Maintenance
PreRequisite
5.24
Purchase
Order
Control File
5.1.X
5.1.4
Purchase
Requisition
5.1.16
Approval
Requisition
5.1.4
Purchase
Requisition
Reference
Document
JP1
JP2
1.
Prepare Purchase
Requisition
Marketing team of
Jakarta prepares the
Purchase
Requisition.
2.
Print Purchase
Requisition
3.
Approval
Print Purchase
Requisition.
Checked by Section
head.
Approved by Dept
Head.
Department (SBY).
Prepare Approval
Requisition.
Purchase
Requisition given to
Purchase.
4.
Prepare Purchase
Order
Purchase
department receives
the Purchase
Requisition Prepares
Purchase Order
5.7
Purchase
Order
5.1.4
Purchase
Requisition
5.
Purchase Order Print
Print Purchase
Order
Authorized by Unit
Head.
Original PO given to
supplier
One copy filed to
Godown & Finance
Department
5.10
Purchase
Order Print
5.7
Purchase
Order
Maintenance
PTPEC Standard Key Process Definition Guide -To-Be Model
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ERP Implementation for PTPEC
6.
Material Receipt in JKT
7.
GIV
8.
GIV Print
After Material is
received in Jakarta.
Jakarta records the
Purchase
Requisition Number
in Surat Jalan and
fax the copy to the
Purchase
Department
Purchase
Department sends
the copy to Godown.
Godown receives
the Surat Jalan and
prepares GIV.
GIV Print
Manual
5.13.1
Purchase
Order
Receipts
5.7
Purchase
Order
5.13.X
GIV Print
5.13.1
Purchase
Order
Receipt
VII. Explanation of Activities
1. Purchase Requisition will be prepared by marketing team in Jakarta for the procurement of material.
2. Print the purchase requisition by marketing team (Jakarta), Requisition checked by section head and approved by department head.
3. Approve purchase requisition in system after getting approval from department head. Purchase Requisition send to purchase department
(Surabaya).
4. Purchase Department (SBY) on receipt of purchase requisition from Jakarta prepares purchase order attaching the purchase requisition number
to the order.
5. Print the purchase order & approved by unit head. Original PO given to Supplier PO Copy filed and another copy given to AP Department and
Godown.
6. After Material is received in Jakarta. Jakarta records the Purchase Requisition Number in Surat Jalan and fax the copy to the Purchase
Department (Sby). Copy of Surat Jalan given to Godown.
Status: Draft
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ERP Implementation for PTPEC
7. Godown on receipt of Surat Jalan makes a GIV Entry.
GL impact will
Dr Stock (Material Val + Add-on Charge)
Cr POR
8. GIV Print, Checked by the section head and approved by department head.
Status: Draft
PTPEC Standard Key Process Definition Guide -To-Be Model
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ERP Implementation for PTPEC
Sub-Contracting
I. Introduction
Plastic used as the raw material to make the C-Zero and PS-Case for unit 1A. Unit 5 makes PS-Case with a very less quantity, which will not
fulfill the requirement of the production so unit gives it to sub-contracts. PEC has 3 sub contractors’. One Sub contractor in Jakarta branch and
two sub contractors in surabaya.
II. Description
PEC sends raw material i.e plastic to the Sub Contractor to manufacture the C-zero and P-Case. PPIC prepares PP based on the production
plan for sub-contractor. Purchase Requisition is authorized by department head and given to purchase department. Purchase Department
prepares Purchase Order. Purchase order is authorized by unit head. Original PO is sent to supplier and copy of PO sent to Godown. Godown
prepares Delivery Order for raw material going out of PEC to sub contract. On Receipt of material Godown will unload the material and check
the unloaded quantity with order. Godown prepares GIV and prints the GIV. GIV is approved by the Department Head. QC Department
verifies the receipt report pending for QC. Godown will issue the material to QC Department for QC Check. QC Department Checks the
material. If QC is not cleared then QC informs purchase department. Purchase Department informs supplier about the Quality of the material
and informs godown to return the stock to the supplier.
III. Process Owner/Primary Responsibility: Purchase Department.
IV. Frequency -
As required.
V. Pre-requisite 1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Status: Draft
Inventory Control File
Inventor Account Maintenance
PO Control File (5.24)
System Control File (36.1)
Product Line Maintenance (1.2.1)
Site Master (1.1.13)
Location Master (1.1.18)
Item Master (1.4.1)
Supplier Maintenance (2.3.1)
Work Order Control File (16.24)
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ERP Implementation for PTPEC
VI. Process Flow
SL #
Status: Draft
Activity
PPIC
SC
PD
GDN
QC
Business Rule
QAD Menu
Option/System
Manual
PreRequisite
1.
Price Negotiation
Price is Negotiated
by purchase
department with the
Sub-Contractor
2.
Prepares Target
production report
PPIC Prepares
Target production for
each of the subcontractor monthly
Manual
3.
Purchase
Requisition
Based on the target
production for each
sub-contractor.
PPIC prepares
Purchase Requisition
5.1.4
Purchase
Requisition
5.24
Purchase
Order
Control
4.
Purchase
Requisition Print
Print Purchase
Requisition.
Checked by Section
head.
Approved by Dept
Head.
Purchase Requisition
given to Purchase
Department.
5.1.X
Purchase
Requisition
Print
5.1.4
Purchase
Requisiti
on
PTPEC Standard Key Process Definition Guide -To-Be Model
Reference
Document
SB4
SB5
SB7
Page: 43 of 59
ERP Implementation for PTPEC
Status: Draft
5.
Purchase
Requisition
Approval
Approval of Purchase
Requisition.
5.1.16
Approval
Purchase
Requisition
5.1.4
Purchase
Requisiti
on
6.
Purchase Order
Purchase
Department prepares
Purchase Order for
the conversion item
5.7
Purchase
Order
5.1.4
Purchase
Requisito
n
7.
Purchase Order
Print
Print Purchase Order
Authorized by Unit
Head.
Original PO given to
supplier
One copy filed to
Godown & Finance
Department
5.10
Purchase
Order Print
5.7
Purchase
Order
8.
Surat Jalan
Godown Prepares
Surat Jalan
Transfer Material
from Godown to sub
contract location.
5.13.X
Prepare Surat
Jalan
9.
Surat Jalan Print
Print Surat Jalan
Approved by
department head.
Sends the Raw
material to Sub
Contractor with Surat
Jalan.
5.13.X
Surat Jalan
Print
PTPEC Standard Key Process Definition Guide -To-Be Model
SB8
SB3
5.13.X
Surat
Jalan
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ERP Implementation for PTPEC
Status: Draft
10. Material Receipt
On Material Receipt
from Sub Contractor.
Godown Verifies
Surat Jalan.
Manual
11. Unload Material
Godown verifies the
unloaded quantity
with Surat Jalan
quantity.
12. QC Check
QC takes some
samples for Quality
test of the material
delivered by sub
contractor
Manual
13. QC Cleared
If QC Cleared then
QC Department
informs Godown.
Manual
14. GIV Entry
GIV Entry made by
Godown.
Receive converted
material in sub
contract location.
Do Work Order Back
flush for the Sub
Contracted item.
Consuming Plastic
and Converted item
5.13.1
Purchase
Order Receipts
18.14
RLT
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ERP Implementation for PTPEC
15. QC Failed
IF QC is not cleared
then Quality informs
purchase
department.
Purchase
Department informs
supplier.
Purchase
Department informs
Godown to return
stocks back to
supplier.
Manual
VII. Explanation of Activities
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Status: Draft
If Sub contractor requests for the revision of price purchase department will negotiate the price.
PPIC prepares Target Production for each sub contractor.
Based on the requirement PPIC prepares Purchase Requisition and sends it to purchase department.
PPIC Prints the Purchase requisition which is checked by section head and approved by department head.
After purchase requisition is being approved by department head then purchase requisition is been approved by PPIC. Purchase
Requisition is being sent to purchase department.
Purchase department on receipt of purchase requisition prepares Purchase Order.
Print the purchase order and authorized by unit head. Original PO will be given to supplier. Copy of PO filed in purchase department
and another two copies to AP Department and Godown.
On receipt of purchase order copy from purchase department Godown prepares Surat Jalan to transfer the material from Godown to
sub contract location.
Print Surat Jalan, Surat Jalan is approved by department head.
On material receipt of the converted item from sub contract, Godown verifies Surat Jalan with the order.
Godown unloads the material and verifies the unloaded quantity with the Surat Jalan.
Quality department checks the material delivered by the sub contractor.
If quality clears the QC then inform Godown.
Godown makes the GIV Entry for the unloaded material. Receive converted material in sub contract location. Do Work Order Back
flush for the Sub Contracted item. Consuming Plastic and Converted item.
If QC failed then return back the stocks to the sub contractor.
PTPEC Standard Key Process Definition Guide -To-Be Model
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ERP Implementation for PTPEC
Memo Purchase
I. Introduction
Memo Purchases will be done for the items, which are not part of inventory like Stationery, Pens Office equipments.
II. Description
Purchase department will raise the requisition for the memo purchases give the requisition to the koperasi / GSD. On Receipt of material
Purchase department prepares the purchase order. Print the purchase order and approved by unit head. Copy of Purchase order sent to
Godown for preparation of GIV. Godown prepares GIV print the GIV, which is approved by department head.
III. Process Owner/Primary Responsibility: Purchase Department.
IV. Frequency -
As required.
V. Pre-requisite 1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Inventory Control File
Inventor Account Maintenance
PO Control File (5.24)
System Control File (36.1)
Product Line Maintenance (1.2.1)
Site Master (1.1.13)
Location Master (1.1.18)
Item Master (1.4.1)
Supplier Maintenance (2.3.1)
Work Order Control File (16.24)
VI. Process Flow
SL #
1.
Status: Draft
Activity
Prepare Purchase
Requisition
PD
KOP
GDN
Business Rule
Purchase department
prepares purchase
requisition
QAD Menu
Option/System
5.1.4
Purchase
Requisition
PTPEC Standard Key Process Definition Guide -To-Be Model
PreRequisite
5.24
Purchase
Order
Control File
Reference
Document
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2.
Print Purchase
Requisition
3.
On Receipt of Material
4.
Purchase Order
5.
Print Purchase Order
6.
GIV
7.
GIV Print
Print Purchase
Requisition
Checked by section
head.
Authorized by
Department Head.
Send it to Koperasi
Purchase
Department checks
the material with the
purchase requisition.
5.1.X
5.1.4
Purchase
Requisition
Manual
GIVM1
GIVM1
Prepare purchase
order
Print Purchase
Order.
Authorized by unit
head.
Copy given to
Godown.
Godown receives the
copy of PO.
Prepares GIV.
Print GIV.
Approved by
Department Head.
VII. Explanation of Activities
1.
2.
3.
4.
5.
6.
7.
Status: Draft
Purchase Department prepares the purchase requisition for the memo items.
Print purchase requisition checked by section head and approved by department head. Send it to koperasi for the material.
Koperasi delivers the material as per the requisition along with GIV. Purchase department checks the material as per the requisition.
Purchase Department prepares purchase order for the received materials.
Print the purchase order authorized by unit head. Send the purchase order to Godown.
Godown on receipt of purchase order copy prepares GIV for the order.
Print the GIV approved by department head.
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Import Spare Parts (1B)
I. Introduction
The purchase department places import spare parts purchase orders to the supplier after receiving the request from the production engineer.
II. Description
Spare parts request will be given by production engineers. Purchase department will check the availability of spare parts with different
suppliers. Supplier will prepare the price quotation and send to purchase department. Purchase department prepares purchase requisition.
Prints the purchase requisition checked by section and approved by department head. After preparing purchase requisition prepares purchase
order. Prints the purchase order approved by unit head. On Receipt of invoice from supplier Purchase makes a GIT Entry. Godown receives
the material and verifies Order Confirmation with Packing List. Godown will unload the material and check the unloaded quantity with order.
Godown prepares GIV and prints the GIV. GIV is approved by the Department Head.
III. Process Owner/Primary Responsibility: Purchase Department.
IV. Frequency -
As required.
V. Pre-requisite 1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Inventory Control File
Inventor Account Maintenance
PO Control File (5.24)
System Control File (36.1)
Product Line Maintenance (1.2.1)
Site Master (1.1.13)
Location Master (1.1.18)
Item Master (1.4.1)
Supplier Maintenance (2.3.1)
Work Order Control File (16.24)
VI. Process Flow
Status: Draft
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SL #
Status: Draft
Activity
Eng
PD
FD
Supp
GDN
Business Rule
1.
Requisition
2.
Negotiate with Supplier
3.
Purchase Requisition
Prepare purchase
requisition.
4.
Print Purchase
Requisition
5.
Approval Purchase
Requisition
Print purchase
requisition.
Checked by section
head.
Approved by
department head.
Approval of Purchase
requisition.
6.
Prepare Purchase
Order
Prepare Purchase
Order.
7.
Print Purchase Order
Print the Purchase
Order.
Authorized by Unit
QAD Menu
Option/System
PreRequisite
Reference
Document
Production
department will
inform the purchase
department about the
requirement of the
spare parts.
Purchase
Department will
identify the supplier
and place the order.
Supplier sends the
price quotation.
Certain suppliers
include bank charges
in the price quotation.
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ERP Implementation for PTPEC
Head.
Send Original to the
supplier.
PO Copy filed and
given to Godown &
AP Department.
8.
9.
Prepare Payment
Requisition for LC or
Remittance Requisition
for TT
Payment Requisition /
Remittance Requisition
Print
10. LC Opening/Bank
advise
11. Shipping Documents
Status: Draft
Prepare Payment
Requisition/TT
Requisition.
Print LC Payment /
Remittance
Requisition.
Checked by
Department head.
Authorized by Unit
Head or Managing
Director/Finance
Director.
Send to Finance
Department
On Opening LC or
Bank Advise Finance
department will send
the copy of opened
LC/TT to purchase
department.
Purchase
Department sends
the copy of LC/TT to
Supplier.
On Receipt of LC/RR
Supplier sends
shipping documents
to EXIM Department
Exim Sends a copy
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12. GIT Entry
13. Receipt of Material
14. GIV
15. GIV Print
of Shipping
documents to
Godown & Purchase
Department.
Purchase department
makes GIT Entry.
Receipt of stock will
be in intransit
location
GL Impact
Dr GIT (Mtl + Addon)
Cr Add-on Charges
Cr POR
Purchase department
receives material
along with Invoice
checks the quantity
with the invoice.
And sends the copy
of invoice to Godown
GIV Entry.
Transfer of material
from In-transit to
Godown location.
GIV Print
Checked by section
head.
Approved by
department head
VII. Explanation of Activities
1. Production department informs the requests for the spare parts to the purchase department.
2. Purchase Department will identify the supplier and place the order. Supplier sends the price quotation. Department head verifies the
price quotation and approves to the price quotation.
3. Purchase requisition is prepared by purchase department.
Status: Draft
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4.
5.
6.
7.
8.
9.
10.
11.
12.
Purchase department prints the purchase requisition, checked by section head and approved by department head.
Approve purchase requisition in system after getting approval from department head.
Prepares purchase order attaching the purchase requisition number to the order.
Print the purchase order & approved by unit head. Original PO given to Supplier PO Copy filed and another copy given to AP
Department and Godown
Prepare LC payment requisition attaching multiple orders to the requisition.
Print the LC payment requisition, requisition checked by department head and approved by unit head. LC Payment requisition given to
finance department.
On Opening LC Finance department will send the copy of opened LC/TT to purchase department. Purchase Department sends the
copy of LC/TT to Supplier
Supplier on receipt of LC copy delivers the goods and sends the shipping documents to the exim department.
Exim Department sends the copy of shipping documents to the purchase department. Purchase department makes GIT entry. When
Doing GIT Entry the other add-on charges will be entered and confirm the GIT transaction. In this transaction the stocks will be
received in in-transit location of the unit with the inventory status as QC-PEND.
GL impact will
Dr GIT (Material Val + Add-on Charge)
Cr POR
Cr Add-on Charge
13. On Receipt of material purchase department receives the material checks the invoice with the shipping documents. Send the invoice
to the Godown.
14. Godown makes a GIV Entry in this transaction the stocks will be moved from in-transit to the respective Godown location.
GL impact will
Dr Stock (Material Val + Add-on Charge)
Cr GIT
15. Print the GIV, GIV is checked by the section head and approved by department head. Copy of GIV given to purchase department
Status: Draft
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ERP Implementation for PTPEC
Local Spare Parts (1A)
I. Introduction
There are certain spare parts, which are purchased locally. The requisition for the spare parts will be given by Parts Control Department. A
person will survey the market for the material requested by the parts control department.
II. Description
Parts Control prepares Purchase Requisition. Purchase Requisition is approved by department head and given to Purchase Department. A
person will get the Purchase Requisition and survey the market on a daily basis and purchase the material. At the end of the day person will
deliver the material to the purchase department. Purchase Department checks the material and prepares purchase order. Purchase order is
authorized by unit head. Invoice of the material is attached with the Order Pembelian. OP is authorized by the unit head
III. Process Owner/Primary Responsibility: Purchase Department.
IV. Frequency -
As required.
V. Pre-requisite 1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Inventory Control File
Inventor Account Maintenance
PO Control File (5.24)
System Control File (36.1)
Product Line Maintenance (1.2.1)
Site Master (1.1.13)
Location Master (1.1.18)
Item Master (1.4.1)
Supplier Maintenance (2.3.1)
Work Order Control File (16.24)
VI. Process Flow
SL #
Status: Draft
Activity
PC
PD
GDN
Business Rule
QAD Menu
Option/System
PTPEC Standard Key Process Definition Guide -To-Be Model
PreRequisite
Reference
Document
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ERP Implementation for PTPEC
Status: Draft
1.
Purchase Requisition
2.
Print Purchase
Requisition.
3.
Procure Material
4.
Prepare Purchase
Order
Parts Control
prepares Purchase
Requisition.
Print the purchase
requisition.
Checked by section
head.
Approved by
department head.
Given to purchase
department.
Purchase department
receives the PP.
A person dedicated
only for the
purchases of spare
parts surveys the
market and
purchases the
material and hands
the material along
with invoice to the
purchase
department.
On receipt of material
Purchase department
checks the material
and If the invoice
value is more than
25,000 Rp then
Prepare Purchase
Order else prepare
tanda terim and send
it to finance
department.
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ERP Implementation for PTPEC
5.
Print Purchase Order
6.
GIV Entry
7.
GIV Print
8.
Prepare Tanda Terim
Print purchase order.
Authorized by unit
head.
Given to parts control
and AP department
Parts control
department makes
GIV Entry.
Parts Control Prints
the GIV.
Checked by section
head.
Approved by
department head.
Purchase
Department on
receipt of GIV
prepare Tanda Terim
and send it to finance
department
VII. Explanation of Activities
1.
2.
3.
4.
5.
6.
7.
Parts control will prepare purchase requisition.
Print the purchase requisition checked by section head, and approved by department head. Purchase Requisition given to purchase department.
Purchase department receives the PP. Purchase Department procures the material requested by the parts control after surveying the market.
Purchase Department prepares the purchase order for the procured item.
Prints the purchase order purchase order authorized by unit head. A copy of purchase order given to parts control.
On receipt of purchase order from purchase department Parts control makes GIV Entry.
Parts Control Prints the GIV Checked by section head, approved by department head.
Status: Draft
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Inventory Valuation & Control
I. Introduction
In PEC inventory is valuated at the lot level for all the materials received in local or import. For the import materials received by sea Export
Warehouse will prepare GIV but the checking of stock will happen in Godown. For the materials received by air or materials received locally
Incoming will prepare GIV and checking of stock will be done in Godown.
II. Description
Unit has 3 godowns one for main material and packing material, second Godown for storing jumbo and plastic and third Godown halfes /P –
Case / Carton Box. Incoming department prepares GIV for all the items received locally and by import air and export warehouse prepares GIV
for material received by sea. All spare part items are maintained by engineering section. Materials are kept in separate location for import,
local reject and return from production in Godown.
III. Process Owner/Primary Responsibility: Godown.
IV. Process Flow
Stock Tracking / Issue to Production & Sub Contractor of materials at Gudang











Different Materials are kept in 3 different godowns.
In Godown 1 Halfes/P-Case/Carton Box materials will be stored.
In Godown 2 Plastic and jumbo materials will be stored
In Godown 3 raw materials for injection and packing materials for cassette box will be stored.
On Receipt of material the materials will be marked with the lot number supplier code and receipt date.
Production will give the requisition of material, Godown will prepare Surat Jalan for the requested materials option 3.4.X.
Print the Surat Jalan checked by section head and approved by department head and issue the material to the production based on FIFO basis.
Any Materials that is returned from production Godown makes ILT from production location to the Godown location option 3.4.1.
PPIC gives the requisition of material to transfer to the sub contractor. Godown prepares Surat Jalan and transfers the material to the sub contractor.
Godown 2 is bifurcated into two locations one for jumbo and another for plastic.
Godown maintenance stock card for the materials. Issues and receipts of the materials are also maintained in the stock card.
Stock Tracking / Issue to production for spare parts in Gudang
 Stocks for Spare parts are maintained by engineering section.
Status: Draft
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 Spare parts are bifurcated into different types of parts i.e Injection parts, Auto Assembly Parts, Slitting & Compressor Parts, Packing & Manual
Assembly Mold Part and general part. All the individual locations are again split into sub locations, which are identified by numbers.
 Engineering section will get the requisition for spare parts from production department.
 Section prepares surat pengambilan barang to issue the spare parts to the production department.
 Manual Stock card is maintained for spare parts which is updated every month end.
Lot Number for Materials
 A different Lot number assigned to materials received in PEC the format of the lot number is as below
1st LLocal, DDomestic, EExport,0Non-Material
2nd Year
3rd Month
4th – 7th Supplier Code (4 Character)
8th Running Serial Number (Specific to Month & Item Code)
1st  L/I (Local / Import)
2nd – 4th  Item Code
5th  Month Code
6th – 7th  Year Code
8th – 10th  Supplier Code
11th – 12th  No Partial shipment
Physical Verification of Materials





Unit accounting will freeze the inventory option 3.16.4 and take the location wise stock report for all the items.
Materials kept in Godown are being verified 3 months by accounting, production, purchase & PPIC.
Production department will verify the materials every month end.
For Spare parts the physical verification will happen once in 3 months.
Stock Valuation of materials
 Valuation of material will be online moving weighted average at the item and site level. Materials received by import, valuation will at the material value
and the add on cost.
 Sub contractor cost is also valuated at the item and site level
 Issue to the production is at that moments moving weighted average.
 Unit accounting will prepare stock position & Material cost actual report every month.
Status: Draft
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Reports
Stock Data  Prepared by PPIC Refer inv1
Stock Position 
Status: Draft
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