NNPC Limited Issue Purchase Order PDF

NNPC Limited SCM Processes and Procedures 14.0 Issue Purchase Order This process is designed to provide guidance and ensure compliance with NNPC Limited’s purchasing policies and procedures. Objectives The objective of Issue Purchase Order is to ensure: • • Requirements and pricing are formalized,...

NNPC Limited SCM Processes and Procedures 14.0 Issue Purchase Order This process is designed to provide guidance and ensure compliance with NNPC Limited’s purchasing policies and procedures. Objectives The objective of Issue Purchase Order is to ensure: • • Requirements and pricing are formalized, and to serve as legally binding documentation of the goods/services that were ordered. Compliance to the terms and conditions of the approved contract. 14.1 Issue Purchase Order Policies S/N Description 1. Purchase Order It shall be used to procure goods and services for NNPC Limited. All purchases of goods and services from vendors are to be preceded by the issuance of an official Purchase Order. Using a Purchase Order to initiate purchases provides the means to ensure that transactions are covered by a proper contract. A properly completed Purchase Order is a legally binding contract and shall be treated accordingly. 2. Authority to Purchase The Purchasing Department is the authorized department to place an order directly with a vendor. Any purchase by NNPC Limited staff members without the prior consent of the Purchasing Department shall be the sole responsibility of the person making the unauthorized purchase. Depending on the circumstances, the staff member making unauthorized purchases may be subject to disciplinary action 3. Delegation of Requisition Authority As detailed in the delegation of authority (DOA) and delegation of financial authority (DFA) manuals, all purchase requisition requests shall be treated according to the corresponding approval limits and thresholds for 112 NNPC Limited SCM Processes and Procedures 14.1 Issue Purchase Order Policies S/N Description budgetary control purposes at NNPC Limited and its subsidiaries (where applicable). 14.2 S/N Issue Purchase Order Procedures Responsible Party Description Job Aid Upon acceptance on NNPC Limited drawn contract by selected vendor OR review and acceptance of 3rd Party drawn contract by NNPC Limited 1. SCM (N-5/6) Issue Purchase Order to selected vendor. ERP / PO Template 2. Vendor Review the details of the Purchase Order and communicate acceptance. PO Template If there are concerns about the Purchase Order, the vendor may seek amendment. 3. SCM (N-5/6) Maintain record of the Purchase Order for audit purposes PO Register 4. Vendor Deliver products or services and send invoice 5. SCM (N-5/6) Perform a 3-way matching to confirm that the PO number and order details (quantities and prices of the goods and services ordered) match up on the Purchase Order, Invoice, and Packing Slip. PO / PR/Waybi ll/Gate pass/ packing list 6. SCM (N-5/6) Carry out Goods Receipt procedure into block stock ERP Go to Process Payment 113 NNPC Limited SCM Processes and Procedures 14.3 Issue Purchase Order Input & Output Documents Document Description Type Frequency Source Recipient 1. Accepted Contract Input As required Vendor SCM (N-3/4) 2. Purchase Order Output As required SCM 5/6) 3. Invoice Input S/N 14.4 Issue Purchase Indicators Order S/N Performance Measure As required Key (N- Vendor Vendor CIP Performance Basis of Measurement Timeframe Target 1. Timeliness of PO issuance Latest date for completion of the issuance after contract acceptance As required 3 days 2. Accuracy of the PO Number of material errors, omissions, and misrepresentations in the PO As required Zero error 3. Purchase alignment Percentage Compliance with Purchase Order details As required 100% Order 114 NNPC Limited SCM Processes and Procedures 115