Non-Purchase Order (PO) Purchases

Transcription

1 Standard Operating Specification TEC FEB 16 Rev P Non-Purchase Order (PO) Purchases 1. PURPOSE The purpose of this procedure is to define those expenditures permitted without a formal purchase orders for purchases made after February 1, Revisions H and later of this procedure are effective for purchases made after October 1, SCOPE 2.1. Content A TE Connectivity (TE) purchase order (PO) is required for any expenditure for goods and services. A PO provides TE documentation of specifications, requirements, quantities, approvals, terms and conditions, warranties, and authorization to pay vendors. However, there are some business transactions where the PO process is not appropriate. The preferred method of Non-PO Purchasing is the Corporate Procurement Card (P-Card), when possible, and in those regions where the P- Card is available. If a P-Card cannot be used, then this procedure outlines the purchases and payment process for such expenditures hereafter referred to as Non-PO Purchases Application This procedure applies to TE and its subsidiaries, affiliates and units worldwide, and the content of this procedure applies only to TE sites and entities using SAP PR2 for both purchasing and payment to suppliers TE Connectivity family of companies All Rights Reserved Indicates Change NOTE TE sites and entities not using SAP PR2 for purchasing but who are using SAP PR2 for payment to suppliers are addressed in the Appendix at the end of this procedure. Legal commodity codes to and including are not covered by this procedure. Non- PO purchases and related payments for these commodities are handled directly between TE Legal and their suppliers. 3. REFERENCES The following documents constitute a part of this document to the extent specified herein. Unless otherwise specified, the latest issue of the document applies Documents TEC Contract Administration Policy TEC One-Time Vendor Use Standard Operating Procedure TEC-1006 Approval of Suppliers Quality Specification 3.2. Additional Reference Delegation of Authority 4. DEFINITIONS For the purpose of this document the following terms are defined. Non-PO Purchase Payment of supplier invoices with no TE PO number that are properly approved per the TE Delegation SUPERSEDED of Authority (DOA). Finance Non-PO Vendor A supplier owned by TE finance for which Non-PO purchases are approved. Requisitioner A person authorized by the cost center, business unit or segment to request the expense and confirm the receipt of the goods or services. NOT the LATEST REVISION 1 of 5 *Trademark. TE Connectivity, TE connectivity (logo), and TE (logo) are trademarks. Other logos, product, and/or company names may be trademarks of their respective owners.

2 Order Identifier Number For Non-PO invoices and in the absence of a PO number, the Order Identifier Number is used to identify the TE supplier number and the purchase requisition (PR) number; or the TE supplier number and TE contract number; or the TE supplier number, requisitioner name, and cost center. Example of an Order Identifier Number where a Purchase Requisition Number is Used: Supplier Number / PR # Example of an Order Identifier Number where a Contract Number is Used: Supplier Number / Contract # 3456 Example of an Order Identifier Number where a Purchase Requisition Number or Contract Number is NOT Used: Supplier # / Requisitioner John Doe / Cost Center 7654 One-Time Vendor Reference TEC One-Time Vendor Use Standard Operating Procedure. 5. RESPONSIBILITIES 5.1. Global Indirect Procurement Organization is responsible for oversight and administration of this procedure and identifying approved Non-PO commodity codes Requisitioners are responsible to determine whether a PO is required for the commodity being purchased. If the commodity is authorized and purchased as Non-PO, the requisitioner is responsible for any burdens of proof such as, goods received or service completed in accordance with the agreed specifications. Additionally, all Non-PO invoices must include the Order Identifier Number as described in section 4 of this document. Requisitioners must also instruct suppliers to send all non-po invoices directly to Non-PO Accounts Payable for processing. Invoices received by Non-PO Accounts Payable without an Order Identifier Number and that cannot be identified may be rejected and returned to the supplier for proper identification Accounts Payable verifies that the appropriate approval authority signed the Non-PO purchase invoice prior to payment. Legal Entity Controllers are responsible to assign approvers for Non-PO invoices. Approvers must ensure that the TE Global or applicable Business Unit specific DOA is followed and approved by the authorized person(s). Prior to payment, Accounts Payable verifies that the Non-PO purchase invoice is approved by the designated person(s). 6. REQUIREMENTS NOTE A supplier must be set-up and exist in SAP prior to delivering goods, performing services, or submitting invoices for payment, unless the payment qualifies as a one-time vendor payment (reference Global Quality Specification TEC-1006). If a supplier number does not exist for the Non-PO purchase, the requisitioner will work with Procurement to complete an SSU request and create the supplier prior to delivering goods or performing services Non-PO purchases are only permitted per the guidelines outlined in this procedure When creating new suppliers using SSU, the requester must refer to TEC-1006 for specific guidelines Requisitioners must instruct suppliers of Non-PO purchases to include the Order Identifier Number in the PO number field of the invoice. Non-PO purchases for finance-approved commodity codes in Table I do not require an Order identifier Number. 7. COMMODITY CODES AUTHORIZED AS NON-PO PURCHASES 7.1. Non-PO purchases are permitted for the commodity codes listed in Tables I and II. Rev P 2 of 5

3 7.2. All Indirect service purchases require at least one of the following: (1) a properly executed contract for the purchase to be authorized as Non-PO (refer to TEC Contract Administration for the contract approval process); (2) a binding agreement or letter of intent; (3) an approved purchase requisition; or (4) a purchase via an authorized TE P-Card. The following require a properly executed contract binding agreement or letter of intent for the purchase to be authorized as Non-PO: - Rents - Temporary Employee Agency Services - Auditing Fees - Leased Vehicles Automobiles / Fleet / Equipment - Insurance Payments - Recruiting Fees - Purchasing Card Company Payments - Regional or Local Voice / Data - Group Meetings Record Storage - Travel and Procurement Cards 7.3. Table I identifies the Finance-approved commodity codes for Non-PO Purchases Table II identifies additional Procurement-approved commodity codes for Non-PO Purchases beyond those described in section 7.2 of this document. TABLE I Finance Approved Non-PO s Leased and Rented Buildings XX Non Purchasing Expenditures XX Payroll Obligations XX Taxes and Government Fees XX Customs Brokers XX Royalties/Commissions/Refunds XX Contract Employee (1099) XX Resale Purchases by a Sales Org XX XX XX XX XX XX XX XX XX XX XX XX Sponsorships/Charitable Contributions Legal Settlements Restructuring Costs Tyco International Transactions Bank Financial Transactions Bank Letters of Credit Bank Account Transfer 1 Time Item Not Negotiated Petty Cash Refunds issued via A/P Refunds to Customers via A/P Customer Sponsored Events Special Note Must Use SSU to create the vendor In-scope of BPM/Securimate Must Use SSU to create the vendor In-scope of BPM/Securimate Rev P 3 of 5

4 TABLE II Procurement Approved Non-PO s (PO's Are Also Allowed) Fleet Management Relocation Fuel for Fleet Vehicles Corporate Services Leased Vehicles Auditing Services Shuttle Service/Rail Banking Services Transportation Equipment, General Dues / Subscriptions Outside Association / Publication Brand Media Marketing Consulting / Surveys / Studies Public Relations Services Investor Relations Direct Marketing Tax Services Market Research Engineering Services Dues, Subscriptions, Industry Standards Trade Show Services Travel Event Management Services Trash Disposal/Recycling Channel Sales Marketing Mailroom Operations (Does not include courier or postal services) Sponsorships 80* Freight & Logistics Services Marketing and Sales Other 81* 3PL Warehousing Human Resources 82* FREIGHT & EXPRESS SERVICES (customer) Employment Recruiting 83* Utility Services Healthcare / Benefits Rev P 4 of 5

5 APPENDIX For those TE sites and entities who do not purchase through SAP PR2 but whose invoices are paid through SAP PR2, the following require a properly executed contract, binding agreement, or letter of intent for the purchase to be authorized as Non-PO: - Rents - Temporary Employee Agency Services - Auditing Fees - Leased Vehicles Automobiles / Fleet / Equipment - Insurance Payments - Recruiting Fees - Purchasing Card Company Payments - Regional or Local Voice / Data - Group Meetings Record Storage - Travel and Procurement Cards Additional commodities listed in Table II are also approved as Non-PO. An Order Identifier Number and authorized signature per the appropriate DOA are required. Rev P 5 of 5