Project:Sandbox

Procedure

CONTENTS


 * 1) PURPOSE..................................................................................................................................4
 * 2) SCOPE ......................................................................................................................................4

3.0 TERMS AND DEFINITIONS..........................................................................................................4

4.0 REFERENCES .............................................................................................................................4

5.0 PROCEDURE DETAILS ................................................................................................................4

6.0 ROLES AND RESPONSIBILITIES ...................................................................................................6

7.0 MONITORING AND REVIEW ......................................................................................................7

APPENDIX 1....................................................................................................................................8 

APPENDIX 2....................................................................................................................................9 

1. PURPOSE

The purpose of this procedure is to establish the structure and requirements for the GT Drilling Purchase Order and Procurement System

2. SCOPE

The scope for this procedure is to ensure that all purchases are:


 * Able to be tracked
 * Payment of creditors are conducted within the trading terms
 * Materials are received in a serviceable condition
 * Authority and sign off levels are set.

3. TERMS AND DEFINITIONS

GT Drilling – Refers to GT Drilling Australia Pty Ltd / GT Plant and Equipment Hire Pty Ltd 

PO – Purchase order

Tracking of PO – Documented trail of Purchase Order

Supplier /Creditor – Any organisation or person that supplies materials / services to GT Drilling, however this will exclude employees

 Material Request form – Request Form for items to be purchased (to be filled out so a PO can be raised)

4. REFERENCES 

GT Drilling Australia Quality Management System – (QA:PRO:0001:R2)

5. PROCEDURE DETAILS

Purchase Order System 

Request of Materials

For material to be purchased within GT Drilling a Material Request Form (ADM:FRM:0001:R1) must be raised.

The form will: provide compliance with the GT Drilling QMS for purchase of materials.

The aim of the form is as follows:


 * Provide supplier with an accurate description of the material required - technical/non technical information
 * Ensure that only qualified staff place orders
 * Purchasing compliance to GT Drilling QMS
 * Provide a means of tracking of PO to personnel whom requested material

Sign Off on Request Form 

Each request must be approved prior to goods being ordered; only personal with the authority to sign can approve a purchase order.

See Appendix 2 for approval levels

Purchase Order raised

A purchase order must be raised and sent to supplier. The numbering system on a purchase order will provide a means of tracking / cross referencing to incoming invoices.

A purchase order will only be raised by the accounts payable department or person authorised to do so. The purchase order number will logged in a ledger with cross reference to goods requested for the purpose of tracking.

GT Drilling Purchase Order will provide:


 * GT Drilling details to supplier
 * Purchase Order Number
 * Purchase Order Date
 * Date materials required
 * Supplier Details
 * Delivery Details
 * Description of materials
 * Quantity of materials required
 * Cost of item
 * Total cost of PO
 * Contact details of person requesting purchase
 * Means of Tracking / cross reference to invoices received
 * Purchase order conditions (trading terms)

Urgent requirement of goods 

An “Urgent Requirement of Materials” system is in-place to provide the purchase of goods without a formal PO – this method will only be available to authorised personal.

The system will be set up with an agreed value depending on position held within the company

The “Urgent Requirement of Materials” system will require the formal paperwork to follow on the next available working day.

For this system to operate the supplies will have to agree to supply materials without a formal purchase order.

 

Materials received 

Upon receiving materials a delivery docket should be obtained and forwarded to the Accounts payable department for processing.

Materials should be inspected to ensure that they are in accordance with materials ordered. If materials are found to be non-conforming arrangements for return must be made.

   Delivery docket 

Most Suppliers Delivery dockets provide a means of: 


 * Checking suppliers details
 * Checking quantity issued
 * Cross reference to PO number

Personal receiving materials must:


 * Check that quantity stated on delivery docket matches quantity issued.
 * Inspect material for non-conformances
 * Sign delivery docket
 * Forward delivery docket to Account Payable

Invoice received / PO Close Out 

Upon receiving invoice the accounts payable department will:


 * Cross reference invoice to PO and ensure materials have been received by the signed material delivery docket.
 * If no signed delivery docket available accounts payable department must contact project supervisor for confirmation of materials received – this will require a signature on a copy of the invoice by project supervisor or an e-mail confirming payment Ok
 * If the invoice has an invalid PO accounts payable must contact supplier and have it reissued with correct PO
 * Payment can be made within trading terms of supply
 * Once payment is made PO is to be closed out.

6. ROLES AND RESPONSIBILITIES 

Personal ordering material


 * Must be authorised
 * Correctly fill out Materials Request Form (ADM:FRM:0001:R1)
 * Process materials request form

Personal receiving materials


 * Inspect materials
 * Ensure quantity is correct
 * Sign delivery docket
 * Process docket – forward docket to appropriate personal

Accounts Payable


 * Raise PO
 * Cross reference Invoice to PO
 * Make payment of invoice within trading term
 * Close out PO

GT – Authority to Sign


 * Person with authority to sign off on invoicing /material request form

Urgent Requirements of Materials


 * Only approved personal to conduct
 * Formal paperwork to follow next available working day

7. MONITORING AND REVIEW 

GT Drilling management system will be monitored and reviewed with internal audits annually.

Appendix 1 

Appendix 2

CURRENT GT DRILLING AUSTRALIA AUTHORISATION OF PAYMENT