Purchase Process :

The site engineer prepares a material indent and the DGM at the site approves the same. The details are entered in the SAP. SAP creates a purchase requisition (PR) and a P.R No. gets generated. The PR can be viewed by the purchase department. On the basis of this purchase requisition, the purchase department prepares an enquiry. Quotations are called for from the vendors already supplying material to some other group company. If a new vendor is to be selected then vendor assessment is done and a vendor code has to be created in SAP. The process for calling for quotations & rates comparison is carried out by Purchase Officers. The vendor offering best rates and terms is accepted and approved by DGM. A purchase order is made by the purchase department in SAP. The system generates purchase order number (P.O. No.)

The PO has the following details: Vendor name, P.R.No., Material description, Quantity, Rate, Date of delivery and Terms & Conditions with respect to payment terms, price basis, price validity, quantity variations, warranty/guaranty, penalty for delay in supply, mode of measurement & general. After the preparation of the purchase order, it gets approved in SAP by the DGM. Purchase Order copy (Soft/ Hard) is sent to the Vendor. Once the material is received at the gate (site) the security stamps at the back of the delivery challan/invoice which is received along with the material. It gives details of gate entry no., date and time of entry and the vehicle no. of the vehicle delivering the material. Store keeper signs the challan/ invoice as an acknowledgement of material receipt.

The stores personnel checks the material received (quality check). The quality of the material received is checked on a test check basis. Once the materials are accepted, a GRN is prepared in SAP on the same day by the Stores Officer. The system generates the GRN No. The process of making a GRN is known as MIGO in SAP. When GRN is made the following entry is passed in the system: * Stock / Bldg RM A/c Dr. *GR/IR Material A/c Cr. The following details are entered: P.O. No., Document Date, Delivery Note no., Posting Date, Vehicle No., Material, Quantity, Storage Location, Unloading Point & Goods Recipient. A material issue note (hard copy) is also prepared for issuing the required quantity of material to the contractor/ site. The above details are also entered in the material issue note which is signed by the receiver i.e. the contractors representative, the Stores In-charge and the Engineer In-charge. The goods (like Cement, Steel, Fly Ash, etc) when received are taken to the weigh bridge to verify the weight. The weigh bridge slip shows the gross and the net weight. The weigh bridge slip along with the other documents (invoice, GRN etc) is sent to the accounts department. After the MIGO entry is done at the stores (i.e.; preparing the GRN in SAP) the inventory module in SAP gets updated. The documents such as invoice, DC & weigh bridge slip (if applicable) are collated and sent to the accounts department. The accounts officer verifies the documents i.e.; PO against invoice and GRN. The MIRO entry is passed in the system. The MIRO entry gives effect to the party a/c. The following entry is passed when MIRO is done: * GR/IR A/c Dr. *To Party A/c Cr.

The following details are entered into the system. Document Date, Reference No., Posting Date, Company Code, Fiscal Year, Bill Amount. The system cross verifies the quantity from GRN and the rates and tax structure from PO.