采购流程范本英文版.doc

1 INTRODUCTION
1.1 Scope
1.1.1 Purpose
The purpose of this procedure is to define the steps and to formalize the process of non-purchase payment .
2 TERMINOLOGY
2.1 Non-purchase payment
Any cash-out from ALHZ for businesses, should be separated to purchase payment and non-purchase payment. (Purchase payment was defined in procedure C-AP-24-0-4 <<Purchase Payment>>.) Non-purchase payment is the payment which is not mandatory to be underlying with an existing purchase order issued by the company. This kind of payment could be paid by only being justified by invoices or other qualified evidences.
Non-purchase payment includes the advance or reimbursement to employee and the direct payment to supplier.
2.2 Reimbursement
ALHZ employee pays himself for expenses related to the ALHZ business operation. After employee provides the original evidence to AF Dept. (the evidence must meet the requirement of laws and regulations), the employee can ask ALHZ to refund the equal amount to the employee.
2.3 Direct Payment
Any payment from ALHZ to a third party without basing on an existing Purchase Order.
Normally, all the payment for business reasons should be basing on a prepared purchase order. But for some special cases, to prepare a PO or go through the supplier qualification is not worthwhile, or unfeasible. It could go through the direct payment process.
Direct payment could be only made following an exhaustive list (C-FRM-24-0-29). All the payments excluded from that list must follow the purchase payment procedure.
2.4 Advance
Money borrowed by employee from ALHZ.
2.5 Invoice
A kind of Official document which is issued by the seller to the buyer for justifying the business and requesting the payment.
2.6 Receipt
A kind of document which is issued by the seller to the buyer for detailing the business contents.
2.7 Fapiao
A special type of invoice which is mandatory used in Chinese businesses. The formatted Fapiao is printed by Tax Bureau. Companies must buy blank Fapiao from tax bureau and issue it following the tax laws. The consumption of Fapiao is strictly monitored by the tax bureau. And it is the unique justification of certifying the authenticity of the business in Chinese commercial practices. .
Issuing Fapiao is tax-payable mandatory and obtaining Fapiao is tax-deductible. All the legal Fapiao are stamped by a red chop of tax-bureau which looks like follows.

XX省XX市

2.8 Official Receipt
A special receipt which is popularly used in Chinese businesses, which is issued by the receiver to the payer, can certify the authenticity of cash transferring. It is also a payment notice from the receiver to the payer.
Official Receipt is formatted and printed and monitored by relative authorities.
Companies must buy blank tax receipts from tax bureau and subject to the inspection by the bureau.
Other Non-for-profit organizations and government departments are using official receipt for their business instead of Fapiao.

3 FLOWCHART OF ALHZ PAYMENT
4 DESCRIPTION
4.1 Advance from Company
4.1.1 General Rules
a. The advance from ALHZ is applicable for those cases which need to be paid urgent before the company get the original evidences, such as Fapiao or invoices.
b. Employee requesting advance needs to fill the Advance request. The Advance request should be validated and signed by the authorized managers according to C-AP-0-0-4 <<ALHZ Limitations and Delegations of Power>>.
c. In principle, the payment shall be made by bank remittance except some urgent requests. The payment made by petty cash must be below a certain threshold, which are RMB1,000, or USD 500, or EUR 500. Any special case which requests petty cash above the threshold should be approved up to the AFIS Director.
d. The payment falls on every 8th and 23rd. Any urgent request must inform AF dept. in advance. AF needs time to prepare the cash and payment with the bank.
· Urgent RMB can be paid within maximum 2 working days after AF was informed;
· Urgent Foreign Currency can be paid within maximum 4 working days after AF was informed;
f. The advance must be returned or offset within a reasonable term. AF accounting team is responsible for reminding the borrower to clear the balance when the advance is due. Under a condition of the previous advance being overdue for a long time, it is possible for AF to refuse its borrower to borrow again. And it is also possible for AF to inform HR Dept. to deduct the residual balance from the borrower’s salary.
g. It is the borrower’s responsibility to well-plan the advances. If the borrower returns more than 40% of his(her) foreign currency advances, AF has the right to reimburse him(her) basing on an unfavorable exchange rate.
h. The advance borrower must be ALHZ employees with official employment contract. Any temporary employee, rental employee cannot request the advance as a borrower. Under special cases with department manager’s approval, the employee on probation can request the advance with the max limitation up to accumulative RMB 2,500yuan.
i. In principle, the advance must be applied for business reason. Any application for personal reason, such as advance for salary, must be approved by the General Manager of ALHZ.
j. All the advances must be cleared before each year-end closing.
4.1.2 Temporary Advance
a. Employees can request temporary advance anytime when necessary.
b. For temporary advances, the Advance Request needs to be filled (Refer to C-FRM-24-0-1) by the employee and approved by the authorized Manager.
c. The temporary advance must be cleared (returned or offset) within 2 months.
4.1.3 Mission Advance
Follow procedure C-AP-0-5-10 <<Air Liquide Hangzhou Travel Policy>>.
4.1.4 Yearly Permanent Advance
a. For those employees who need advance frequently, to avoid wasting working hours on requesting advance frequently, they can apply for yearly permanent advance.
b. For yearly permanent advances, the Advance Request needs to be filled (Refer to C-FRM-24-0-1) by the employee and approved by the authorized manager. It must be marked as “Yearly Permanent Advance”.
c. The yearly permanent advance will not be required to be cleared during the whole year until year-end. Any special requirement for keeping this advance overcrossing the year-end, must be approved by both the borrower’s department manger and the AF manager.
4.1.5 Good Practices
a. Using credit line of employees’ private credit card or Corp credit card will get more benefit and be more convenient than using cash. Advances should be better requested when really necessary.
b. For ALHZ employee, if possible, to use credit card of UnionPay is cheaper than to use the credit card of Visa or Master.
4.2 Reimbursement
4.2.1 General Rules
a. Any reimbursement payment must be justified by a paper C-FRM-24-0-3 <<Reimbursement sheet>>, which is validated and signed by authorized manager as per C-AP-0-0-4 <<ALHZ Limitations and Delegations of Power>>.
b. Reimbursement sheet must be submitted to AF with 2 months upon expenditure occurrence.
c. Payment date
· The payment falls on every 8th and 23rd. The deadline for cross-check is every 1st and 16th. The requests handed over to AF before 1st will be paid on 8th. The requests handed over to AF before 16th will be paid on 23rd. Postponed at holidays.
· Employees or his (her) delegatee shall register the request in a table prepared by accounting team when they hand over the requests to AF. The purpose is to avoid the risk of loss and the registration date is used to determine the payment date.
d. The AP-Employee Accountant will audit the reimbursement sheet and return those unqualified requests to the people who hand over them.
4.2.2 Rules of Reimbursement
a. The reimbursement is applicable for refunding the expenditure that the employees have already paid by using their own money. For example, the travel expenses, small-amount procurement in oral contract, etc.
b. The reimbursement claiming should be basing on the filled and signed reimbursement sheet.
c. If the reimbursement includes foreign currency, and it needs to be converted to RMB, it will be calculated according to the bank intermediate exchange rate of the accounting date.
d. All the reimbursement shall be paid by RMB for Chinese employee. But for foreign expatriates, the reimbursement could be paid by foreign currency together with his(her) salary at the end of month.
e. Original evidences of reimbursement sheet:
· Any domestic expenditure must be justified by Fapiao.
· In principle, any expenditure abroad must be justified by invoice or receipt.
· Fapiao of gifts to customer, or of meals to host customer, must contain the indication of the customers’ or agencies’ name. All the gifts or hosts which are offered to customers or agencies must comply with the Air Liquide Group Bluebook << Code Anti-Corruption >>.
· In general, manual Fapiao is always the copy page of carbon paper, it must be duplicated. Any Fapiao which is written directly by pen is null.
· All the evident documents, including Fapiao, invoices, etc. must be pasted on the back of reimbursement sheet, cannot use stapler.
f. Determining the payment amount
· If no limitation, the amount equals the sum of all the Fapiao or invoices.
· If there is a limitation, AF will pay the lesser amount of Fapiao or invoices and the amount of limitation
g. Means of payment
· In principle, the reimbursement sheet should be paid by bank remittance. Special case with special approval from AFIS Director can be paid by petty cash.
· For some intra-city direct payment, cheque could be used as a payment method.
h. To avoid the inefficiency of approval workload, the reimbursement request shall be twice per month in maximum. In principle, the threshold of reimbursement sheet shall be RMB 200 at least.
4.2.3 Type of reimbursement
a. General Reimbursement
For General reimbursement, the Expense Reimbursement Sheet needs to be filled (Refer to C-FRM-24-0-3) by the employee and approved by the authorized manager.
b. Mission Reimbursement
Follow C-AP-0-5-10 <<Air Liquide Hangzhou Travel Policy>>.
c. Site Works Reimbursement
· For field Engineers working in project sites, follow C-AP-0-5-6 and C-AP-0-5-8.
· For Short-term assignment to project sites, follow Inter-Memo HR06(04).
· For relocation to manufacturing rented sites (i.e. Anji Workshop and Deqing Workshop), follow Inter-Memo HR08(05) <<The Policy of Entitlement Payment for Relocation to Manufacturing Site Work (Anji Workshop and Deqing Workshop)>> and Inter-Memo HR08(06) << Detailed rules of the Policy of Entitlement Payment for Relocation to Manufacturing Site Work (Anji workshop and Deqing Workshop) and supplementary Explanation>>.
d. Medical Reimbursement
· For medical reimbursement, the Medical Reimbursement Sheet needs to be filled (Refer to C-FRM-24-0-5) by the employee. Then the company doctor will inspect the medical Fapiao attached. It shall be approved by the GS Manager finally.
· The calculation and limitation of medical reimbursement please refer to ALHZ internal memo HR96(04) <<Regulation on Reimbursement of Medical Care Expenses>> and HR 06(02) << Supplementary Regulation on Reimbursement of Medical Care Expenses>>.
· For glasses expense reimbursement, the Medical Reimbursement Sheet needs to be filled (Refer to C-FRM-24-0-5) by the employee. It shall attach the glasses Fapiao and the eyes inspection report, then finally be approved by GS Manager.
· The calculation and limitation of glasses expense reimbursement please refer to ALHZ internal memo HR96(07) <<A Notice for the Reimbursement of Spectacles Expenses>>.
4.3 Direct Payment
4.3.1 General Rules
a. The direct payment is applicable for paying the expenditure that is not necessary for purchase order. Those payments must be included in the prepared exhaustive list (C-FRM-24-0-29). Any payment to supplier which is out of that scope should go through the procurement procedure.
For direct payment, the payment request is the C-FRM-24-0-30 <<Direct payment request>>.
b. All the suppliers of direct payment must be already qualified and existing in the ERP system.
c. The direct payment claiming should be basing on the filled and signed direct payment request.
d. Any domestic expenditure must be justified by Fapiao or other qualified documents.
e. In principle, any expenditure abroad must be justified by invoice.
f. The payment falls on every 8th and 23rd. The deadline for cross-check is every 1st and 16th. The requests handed over to AF before 1st will be paid on 8th. The requests handed over to AF before 16th will be paid on 23rd. Postponed at holidays.
g. Direct payment is forbidden to be paid to employees’ personal bank account or by petty cash.
4.3.2 Bank Information Management
a. The management of suppliers’ information is under RMQS department except for the bank information of all suppliers.
b. AF accounting team is responsible for managing the input and update of bank information of all suppliers for direct payments. And the responsible person of this function must not be involved in any jobs of AP accounting and Treasury.
c. AF accounting team updates suppliers’ bank information after receiving the requisition sheet from the RMQS department.
4.3.3 Good Practice
a. For small amount payment, it’s better to get the Fapiao first and then request the payment.
b. For intra-city payment, using cheque is more secured and convenient than using bank transfer or petty cash.
4.4 Accounting Requirement
a. Accounting team of AF Dept. will make the journal voucher based on the original non-purchase payment request.
b. Expenses accountant is responsible for making the voucher, and the chief accountant or his/her delegatee will perform the cross-check.
c. The claimer can only get petty cash reimbursement after signing on the voucher.
d. All the journal vouchers must be bound to books and be archived. The archival term is at least 10 years.
e. To meet the requirement of law and government audit, all the accounting journal vouchers and original evidence must be recorded at least in one Chinese language. When there is a meaning conflict between different languages, it’s mandatory to follow the Chinese meaning.
f. Except for those foreign expatriates, it’s default that all Chinese staff’s signature is Chinese word. Whatever the signature is chosen by staff, it’s prohibited to change frequently as long as it is determined.

采购程序

5 INTRODUCTION
5.1 Scope
5.1.1 Purpose
The purpose of this procedure is to describe the process of procurement activities. The goal is to procure quality materials, equipment and service from qualified sources with pricing at or below the established budget and delivered on time.
5.1.2 Scope of Application
5.1.3 Specific Requirements
Not applicable

6 PROJECT PROCUREMENT
Pr