Back
Procure to Pay Policy and Guidelines

Principle:

The objective is to ensure smooth functioning of operations and to empower the stakeholders in utilizing the budgets with ease through a simple and efficient process without compromising on financial and operating discipline.

Categorization of Assisted Purchases and Unassisted Purchases:

The departments/functions in collaboration with CF team have identified a list of activities as Assisted Purchases and Unassisted Purchases which is available with the function heads or the SPOC of that respective depts.

Assisted Purchase are those spends where initiation of such activities would start with the budget owner and will be assisted by the procurement function in the end to end procure to pay process.

Unassisted Purchase are those spends where the budget owners are empowered to spend based on approved budgets/set standards and submit invoice to accounts payable team for payments.

Process:

All proposed goods and services categorized under Assisted Purchases can be requested using the Purchase Requisition Form. The procurement team in collaboration with the budget owner will execute end to end procurement cycle.

The procurement team would check budget approvals for the requisitions and involve in the end to end vendor selection process covering vendor identification, vendor evaluation, vendor negotiation and vendor onboarding. Thereafter, purchase orders will be issued to the finalised vendors.

For all Unassisted Purchases, the user function is empowered to spend based on predefined guidelines and set budgets and approvals.

Adequate care will need to be taken by the user function prior to giving a commitment to the vendor. Under no circumstances should the vendor be penalized on account of any internal matters. The user will need to submit invoices for settlement through the Payment Requisition Form to accounts payable team.

Guidelines: Purchase Requisition

  1. All assisted purchases will go through rigours end to end procurement process.
  2. To deal with only GST registered vendors.
  3. Due diligence for new vendors to be done before transacting.
  4. There can be no parties introduced to act as vendors which would result in conflict of interest.
  5. Online purchases to be done with the use of respective entity procurement credit cards and through corporate login only.
  6. Staff who have resigned/serving notice period are not allowed to make commitment to vendors.
  7. Payment terms would be minimum 30 days from date of receipt of invoice.
  8. Emergency or adhoc purchases will be executed with min of one day SLA and will be sourced from existing suppliers only.
  9. All regular and routine purchases will be executed with min of 3 days SLA.
  10. All other purchases apart from the above mentioned will be executed with min of 5 to 7 days SLA.
  11. All invoices should be certified by user team post goods received and services availed.
  12. Preferred vendors / New vendors if not empaneled in the system, should be first registered using the following link (http://vendor.tallysolutions.com/vendor-on-board-form/)

Guidelines: Payment Requisition

Payment Policy – Policy and Guidelines

The Payable Team will ensure all the payments to vendors or employees based on the requisitions made along with the respective supporting documents. The process will be faster and smoother when all the related inputs or documents are provided as required in the payment requisition form. In order to make the organization a tax compliant and ensure the correctness of the payments certain guidelines are recommended to the users. This will help to process the payments at a faster pace and help in increasing the vendor or employee satisfaction.

Guidelines for Payment Requisitions

  1. Payment Request for each spend with a specific budget id/activity need to be requested through a separate payment requisition. Don’t combine multiple payment request with different budget ids/activity names
  2. Ensure that vendor to whom the payment is requested through this payment requisition should be onboarded using the vendor registration form. Either requestor can fill the details or a link (copy from the link from PR form) can be shared with the vendor to fill the details. Registration is mandatory as we need Bank Details and tax related information to make the payment
  3. All the required/mandatory details are to be filled to ensure the speed and error free payments either to vendors or employees by selecting proper options under payment required section
  4. The Invoice details are mandatory for making the payment. The payment process will be initiated after receipt of physical copy of the invoice by payable team. The physical copy of the invoice is mandatory when GST is involved in the invoice/bill for which payment is requested
  5. Ensure that physical copies of bills should reach HO within 7 days of Payment Requisition submission in the system.
  6. To process the payments, the raised Payment Requisition should be approved by the respective functional approval and physical copy of invoice receipt to be marked in the system
  7. Generally, all the valid approved payment requisitions are processed within 3 working days after receipt of physical copy of invoice or as per the payment terms agreed for such payments

Requestor/User Responsibilities

  1. All the details should be filled correctly and follow the guidelines as specified
  2. The Vendor selected should be GST registered vendors with full details as required for making payments and ensuring the compliance aspects
  3. The GST registration details of vendor and Tally should be clearly visible on the invoice and the soft copy should be clean and neat with budget id written on it (for cross verification)
  4. Invoice/bill is mandatory for any payments to be made. In case, if no invoice/bill is available for petty expenses like housekeeping, puja etc., please upload the self-attested indent form for making the payment with details.
  5. In case of petty expenses if multiple nature, write one budget id against budget id column and write respective budget id in self-attested indent form against respective expense

For more details or clarifications, please write to accountspayable@tallysolutions.com

 

Corporate Finance Responsibilities:

  1. For Assisted Purchases, the procurement team would ensure the deal is sufficiently evaluated in terms of the quality, price, delivery and payment terms in concurrence with the user function to ensure the product meets the standards set.
  2. For Unassisted Purchases, accounts payable team would audit internally to ensure the user functions have adhered to the budgets and standards guidelines.
  3. Cases with discrepancies/exceptions would be identified/highlighted and corrective actions to be taken.