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XXX ERP Vendor Creation
Code Allocation & Alteration
Policy / Guideline / Framework
Standard Operating Procedures
Finance ...
Table of Contents
Sl. No.
1
2
3
4
5
6
7
8
9
10
11
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Slide Title
Introduction
Definition
New Vendor
New Vendor Form
Am...
Introduction
 This document intends to serve as the sole reference / guideline for all requests for vendor
creation /alte...
Definition
 Regulatory Compliance: Compliance with the various Central, State and Local Government
Regulations / Laws, eg...
New Vendor
•

Any user department that proposes to engage any Vendor for the first time needs to provide a
formal request ...
New Vendor Form

FOR EDUCATIONAL / REFERENCE USE © S P GUPTA, FCA

6
Amendment
•

User Departments need to intimate, in writing (or email), any changes in the details provided
during vendor c...
Activation / Deactivation
 The designated F&A personnel will Activate the Vendor Code in the ERP after creation.

 The u...
Basic Vendor Information
 Valid Business Name
 Business Type / Form
 Valid Business Address

 Complete Billing / Corre...
Basic Vendor Information
 Valid Contact Particulars
 Name (of the Authorized Representative / Contact Person)
 Designat...
Basic Vendor Information
 Credit Period
 Terms of Payment
 Delivery Terms

NOTE: The default terms of payment for will ...
Basic Vendor Information
 Permanent Account Number
 Import Export Code Number
 VAT TIN Number

 CST Number
 Tax Ident...
Basic Vendor Information
 Bank Particulars
 Name of the Bank
 Branch Name

 Branch Address
 Account Number
 Account ...
NEFT Mandate Form

FOR EDUCATIONAL / REFERENCE USE © S P GUPTA, FCA

14
Mandatory Information
 All Vendors
 Permanent Account Number (excluding Foreign Vendors with no PAN)
 Domestic Manufact...
Mandatory Information
 Other Domestic Vendors
 Service Tax Registration Number
 Micro, Small & Medium Enterprises

 MS...
Escalation Matrix
User Departments need to direct their requests (and concerns, if any) to the Designated F&A
personnel, a...
Do’s & Don’ts
 DO fill up all the compulsory fields with the relevant information in the prescribed format
 DO make sure...
Do’s & Don’ts
 DON’T provide incorrect / false information or document
 DON’T enter information in the wrong field
 DON...
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Standard Operating Procedures for Vendor Master Management in ERP

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Standard Operating Procedures / Guidelines / Framework / Policy for the activity of Vendor Code Creation / Vendor Master Management in an(y) ERP

Standard Operating Procedures for Vendor Master Management in ERP

  1. 1. XXX ERP Vendor Creation Code Allocation & Alteration Policy / Guideline / Framework Standard Operating Procedures Finance & Accounts XXX Enterprises
  2. 2. Table of Contents Sl. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 Slide Title Introduction Definition New Vendor New Vendor Form Amendment Activation / Deactivation Basic Vendor Information Bank Particulars NEFT Mandate Form Mandatory Vendor Information Escalation Matrix DO’s DON’Ts FOR EDUCATIONAL / REFERENCE USE © S P GUPTA, FCA Slide No. 3 4 5 6 7 8 9 13 14 15 17 18 19 2
  3. 3. Introduction  This document intends to serve as the sole reference / guideline for all requests for vendor creation /alteration of existing vendor information originating from any user department of XXX Enterprises.  It define the basic commercial and regulatory information / documentary requirements in the process of creation of New Vendor and allocation of Code in the XXX ERP.  It also defines the basic commercial and regulatory information / documentary requirements for the alteration of existing Vendor Information in the ERP.  It aims at removal of ambiguities and streamlining of the process of vendor creation or alteration across the organization, and simultaneously insulating the company from risks associated with non-compliance with ever-changing and stricter regulatory compliance requirements. FOR EDUCATIONAL / REFERENCE USE © S P GUPTA, FCA 3
  4. 4. Definition  Regulatory Compliance: Compliance with the various Central, State and Local Government Regulations / Laws, eg. Income Tax, Sales Tax / VAT / GST, Excise, Service Tax, etc., failing which penal action may be initiated by the respective authorities.  Vendor: Any person or business that sells goods or provides services for a fee. FOR EDUCATIONAL / REFERENCE USE © S P GUPTA, FCA 4
  5. 5. New Vendor • Any user department that proposes to engage any Vendor for the first time needs to provide a formal request for creation of the new vendor in the ERP (and the allocation of vendor code) in the specified format (Vendor Creation Form) along with copies of specified documents. • The duly completed form must be forwarded to the designated personnel in the Finance & Accounts (F&A) Department prior to entering any commercial engagement / activity / agreement with the proposed vendor. • The designated F&A personnel will issue unique vendor code for the new vendor after verifying the correctness and completeness of the details provided by the user department. FOR EDUCATIONAL / REFERENCE USE © S P GUPTA, FCA 5
  6. 6. New Vendor Form FOR EDUCATIONAL / REFERENCE USE © S P GUPTA, FCA 6
  7. 7. Amendment • User Departments need to intimate, in writing (or email), any changes in the details provided during vendor creation, at the earliest, to the designated F&A personnel, along with necessary copies / documents (where there are changes in registration details with regulatory agencies / account number with Bank) FOR EDUCATIONAL / REFERENCE USE © S P GUPTA, FCA 7
  8. 8. Activation / Deactivation  The designated F&A personnel will Activate the Vendor Code in the ERP after creation.  The user department shall intimate the dis-continuation of business by its vendor(s) to the designated F&A personnel at the earliest, who shall de-activate the vendor code in the ERP.  The designated F& A personnel may, at their discretion, for the purpose of security, deactivate Vendor Codes in which no transaction have taken place in or over two consecutive financial years. Such vendor will be treated as New Vendor and the code re-activated only on duly filled fresh application. FOR EDUCATIONAL / REFERENCE USE © S P GUPTA, FCA 8
  9. 9. Basic Vendor Information  Valid Business Name  Business Type / Form  Valid Business Address  Complete Billing / Correspondence Address  Complete Registered Business Address  Valid Phone Number (Board Line)  Valid Facsimile Number  Valid Email Address NOTE: Copies of documents should bear the Billing and registered addresses as mentioned in the form, and must be duly attested by the vendor. FOR EDUCATIONAL / REFERENCE USE © S P GUPTA, FCA 9
  10. 10. Basic Vendor Information  Valid Contact Particulars  Name (of the Authorized Representative / Contact Person)  Designation  Phone Number  Mobile Number  Email ID NOTE: The form must be duly signed by the vendor and counter-signed by the User / Purchase Department. FOR EDUCATIONAL / REFERENCE USE © S P GUPTA, FCA 10
  11. 11. Basic Vendor Information  Credit Period  Terms of Payment  Delivery Terms NOTE: The default terms of payment for will be treated as payment 30 days from date of acceptance / receipt of Invoice, whichever is later. All other terms require written authorization from Top Management, copy of which needs to be appended to the form. FOR EDUCATIONAL / REFERENCE USE © S P GUPTA, FCA 11
  12. 12. Basic Vendor Information  Permanent Account Number  Import Export Code Number  VAT TIN Number  CST Number  Tax Identification Number (if vendor outside India)  Excise Control Code Number  Service Tax Registration Number  MSME Registration Number NOTE: Copy of all applicable registration certificates are compulsorily required along with Form duly attested by Vendor. FOR EDUCATIONAL / REFERENCE USE © S P GUPTA, FCA 12
  13. 13. Basic Vendor Information  Bank Particulars  Name of the Bank  Branch Name  Branch Address  Account Number  Account Type  IFSC Code (IBAN / SWIFT Code if vendor outside India)  MICR Code (if vendor in India)  Beneficiary Bank Name (if vendor outside India) NOTE: Copy of cancelled Cheque and Bank Particulars on Business Letterhead duly certified by Bankers are compulsory for NEFT / RTGS payment. FOR EDUCATIONAL / REFERENCE USE © S P GUPTA, FCA 13
  14. 14. NEFT Mandate Form FOR EDUCATIONAL / REFERENCE USE © S P GUPTA, FCA 14
  15. 15. Mandatory Information  All Vendors  Permanent Account Number (excluding Foreign Vendors with no PAN)  Domestic Manufacturers  VAT TIN Number  CST Number  Excise Control Code Number  Domestic Dealers and Contractors  VAT TIN Number  CST Number (for Vendors located outside state) NOTE: Copy of all applicable registration certificates are compulsorily required along with Form duly attested by Vendor. FOR EDUCATIONAL / REFERENCE USE © S P GUPTA, FCA 15
  16. 16. Mandatory Information  Other Domestic Vendors  Service Tax Registration Number  Micro, Small & Medium Enterprises  MSME Registration Number  Domestic Export Oriented / Special Economic Zone Units  Import Export Code Number  Foreign Vendors  Tax Identification Number (Tax Registration Number) NOTE: Copy of all applicable registration certificates are compulsorily required along with Form duly attested by Vendor. FOR EDUCATIONAL / REFERENCE USE © S P GUPTA, FCA 16
  17. 17. Escalation Matrix User Departments need to direct their requests (and concerns, if any) to the Designated F&A personnel, after having duly complied with the requirements laid out in this document. In case of non-resolution of concerns within a reasonable time-frame, the user department may seek first level escalation, and if still not resolved within a further reasonable time, may resort to Second Level Escalation. Sl. 1. 2. 3. Level Designated F&A Personnel First Level Escalation Second Level Escalation Designation Manager – Payables Financial Controller Chief Financial Officer Name FOR EDUCATIONAL / REFERENCE USE © S P GUPTA, FCA 17
  18. 18. Do’s & Don’ts  DO fill up all the compulsory fields with the relevant information in the prescribed format  DO make sure the complete postal address is mentioned, including the valid Postal Code (Pin / Zip)  DO take care to include correct regulatory details, viz. PAN No., VAT / Service Tax / Excise Regn. Codes, etc. duly verified with the copy of such documents obtained.  DO contact the designated personnel in Finance & Accounts Department for any assistance in the matter. FOR EDUCATIONAL / REFERENCE USE © S P GUPTA, FCA 18
  19. 19. Do’s & Don’ts  DON’T provide incorrect / false information or document  DON’T enter information in the wrong field  DON’T leave compulsory fields blank  DON’T enter into any agreement / contract or raise any order without a valid vendor code  DON’T send scanned copies / soft copies of the form. FOR EDUCATIONAL / REFERENCE USE © S P GUPTA, FCA 19
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