Agenda for Purchasing Briefing on 25th

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Agenda for Purchasing Briefing on 25th 26th
Sept 06
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SAP GeBIZ

• Purchasing Briefing by
• Office of Finance (FIN)
• 25th and 26th September 2006

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SAP GeBIZ

• What is SAP Purchasing Module?
• What is GeBIZ Enterprise System?
• When to use?
• Critical Points
• Frequently Asked Questions

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What is SAP Purchasing Module?

• SAP stands for Systems, Applications and Products
  in data processing.
• SAP Purchasing Module is one of the modules
  available in the SAP Financial System.

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When to use it?

• This module is to be used for the purposes of
• (a) creating Purchase Orders (POs) for awarded
  tenders (one-off purchase)
• (b) obtaining Goods Receipt (GR) Document Number
  for interfaced GeBIZ POs
• (c) creating asset master records

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Critical Points

• (1) Ensure correct PO Document Type is used.
• Rationale
• PO Document Type is a non-changeable field
• if the selection is incorrect
• The PO created will not reach the intended FIN
  Approving Officer for approval.
• The entire PO has to be cancelled and created
  again.

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Critical Points- (continue)

• PO Document Types

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Critical Points- (continue)

• (2) Ensure name and address of vendor selected
  are correct.
• Rationale
• Vendor, once selected, cannot be amended.
• The entire PO has to be cancelled and created
  again if the selection is incorrect.

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Critical Points- (continue)

• (3) Ensure correct tender reference number is
  being indicated under the Reference No. field
  and only 1 line is used.
• Rationale
• Facilitate verification by FIN to ensure PO
  raised is for an approved tender.
• Purchase will be delayed if incorrect tender
  reference number is used.
• PO cancellation letter will not be in order as
  the additional lines entered will be shown.

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Critical Points- (continue)

• (4) Ensure no exception message encountered
  before checking GR document number in SAP.
• Rationale
• Avoid undue delay in processing.

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Critical Points- (continue)

• (5) Ensure cost centre of asset master record
  created is correct.
• Rationale
• Avoid undue delay in PO creation in GeBIZ.

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Summary

• To recap, the following have been discussed -
• 1. Use of the SAP Purchasing Module
• - creating POs for awarded tenders (one-
• off purchase)
• - obtaining Goods Receipt (GR)
• Document Number for interfaced GeBIZ
• POs
• - creating asset master records

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Summary- (continue)

• 2. Critical Points
• Correct PO Document Type
• Correct vendor
• No exception message on GR
• Correct cost centre for asset master
• Reference No. field

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What is GeBIZ Enterprise System?

• GeBIZ stands for Government electronic Business.
• GeBIZ Enterprise System is an easy to use
  Government Intranet Application to facilitate
  procurement by public sector officers.
• The usage of this system has been extended to NTU
  even though we have been corporatised.

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When to use it?

• There are various procurement modules available
  namely -

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GeBIZ Charges

• Rates are as determined and set by Defence
  Science and Technology Agency (DSTA) for each
  Financial Year (FY)
• It is incurred once a PO number has been
  generated regardless of whether the PO has been
  interfaced successfully to SAP.
• Termination/cancellation of PO will not incur
  charges

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GeBIZ Price Plan for FY 2006/2007
Source http//intranet.gebiz.gov.sg/scripts/doc/p
rice_plan.pdf
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Critical Points

• (1) Ensure sufficient fund is set aside for GeBIZ
  charges, especially during closing of FY.
• Rationale
• POs created are subject to Admin Fee (where
  applicable) and relevant GeBIZ charges.

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Critical Points- (continue)

• (2) Ensure for period contracts, the best option
  that suit specifications and budget is being
  selected.
• Rationale
• Proper selection of options would ensure optimal
  usage of limited budget.

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Critical Points- (continue)

• (3) Ensure these 2 standard clauses are stated at
  the Instructions to Supplier field -
• (i) Please note that the University does not
  accept
• e-invoice
• (ii) Payment Terms Within 30 days upon receipt
  of
• invoice subject to successful
  commissioning
• Rationale
• Avoid payment dispute with suppliers.

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Critical Points- (continue)

• (4) Ensure Complete PO function is carried out
  only when Goods Receipt has been done.
• Rationale
• Once this function has been done, no further
  action can be taken on this PO.

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Critical Points- (continue)

• (5) Ensure maximum of 15 assets per PO line item.
  If more than 15 assets are to be purchased, split
  the quantity in the Invitation to Quote (ITQ) to
  different line item.
• Rationale
• This is a system constraint of the financial
  interface to SAP.

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Critical Points- (continue)

• (6) Ensure that account assignment (i.e. K for
  cost centre buy, P for project buy and A for
  asset buy) is being selected correctly.
• Rationale
• Incorrect account assignment will lead to PO
  failing financial interface.

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Critical Points- (continue)

• (7) Ensure that correct Goods Acceptance Officer
  (GAO) is being assigned to perform GR.
• Rationale
• Incorrect assignment of GAO will create
  unnecessary administrative work.

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Critical Points- (continue)

• (8) Ensure Close PO function is used only when
  a PO cannot be concluded naturally.
• Rationale
• Close PO will lead to exception messages that
  may not be resolved.

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Critical Points-(continue)

• (9) Ensure specified details for PO are in place
  before seeking approval.
• Rationale
• PO with incorrect details may have to be
  cancelled.
• Time is wasted
• Additional costs incurred for GeBIZ charges.

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Critical Points- (continue)

• (10) Ensure GeBIZ e-test is passed before
  applying for GeBIZ user account.
• Rationale
• Stipulated requirement for using GeBIZ.

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Critical Points- (continue)

• (11) Ensure there are no outstanding GeBIZ
  charges when closing Research Account.
• Rationale
• Payment of GeBIZ charges is delayed as user have
  to suggest an alternate account chargeable.

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Critical Points- (continue)

• (12) Ensure for Research Accounts with pre-fix
  M46 and M47, the G/L for GeBIZ charge is not
  705000 (Equipment vote).
• Rationale
• Per AStar instruction as these accounts are
  sponsored by AStar.

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Critical Points- (continue)

• (13) Ensure when staff member having a GeBIZ
  account has resigned/transferred, his outstanding
  documents (GR/POs/ITQs etc) are being re-assigned
  to another staff member
• Rationale
• Proper handling over will avoid unnecessary delay
  in processing outstanding work.

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Frequently Asked Questions

• How to apply/terminate Account?
• Download application form from Staff Forms and
  Procedures folder and send duly endorsed form by
  Approving Officer to FIN.

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Frequently Asked Questions -(continue)

• How to reset Password?
• For SAP

For GeBIZ
Mr. Pang Ghee Keong gkpang_at_ntu.edu.sg 6316-8875
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Frequently Asked Questions -(continue)

• Where to get help on using the systems?
• For SAP
• Refer to SAP Purchasing System Manual and FAQs
  that are available in FIN Homepage
  (www.ntu.edu.sg/finance) and Staff Forms and
  Procedures folder.

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Frequently Asked Questions -(continue)

• For GeBIZ
• Attend GeBIZ courses held at Civil Service
  College (http//www.cscollege.gov.sg/).
• Refer to various manuals that are available in
  FIN Homepage (www.ntu.edu.sg/finance) and Staff
  Forms and Procedures folder.

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Frequently Asked Questions -(continue)

• Refer to on-line user guides that are available
  in GeBIZ intranet website (http//intranet.gebiz.g
  ov.sg/).
• Call GeBIZ Service Centre at 6274 5717 (Tel),
  6274 1321 (Fax), gebiz_at_d-s-t-a.gov.sg (e-mail).
• Contact FIN Purchasing Section at x5144 or x5790.

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Summary

• To recap, the following have been discussed -
• 1. What is GeBIZ Enterprise System?
• 2. Information on GeBIZ Charges
• 3. Critical Points
• 4. Frequently Asked Questions
• How to apply/terminate Account?
• How to reset password?
• How to use the systems?

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Procurement Process
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Overview of Purchasing Process

• Procurement Principles
• Prior To Purchase
• Purchasing Procedure
• Small Value Purchase
• Quotation
• Tender
• Cases to Share

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Procurement Principles

• The Purchasing Procedure Manual outlines the
  University Procurement principles, policies and
  procedures to be followed by all
  Schools/Departments/Centres (Users).
• The principles governing the University
  Procurement are as follows-
• Transparency
• Value for Money
• Open and Fair Competition

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Prior to Purchase

• Pre-Procurement Approval for any purchases must
  be obtained from, Chairs of Schools, Heads of
  Departments and Directors of Centres.

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Prior to Purchase (Continue)

• Additional Approving Authority for the following
  4 categories-

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Purchasing Procedures

• All procurement shall be made through GeBIZ.
• Exceptions-
• Small Value Purchase.
• Sole Supplier that is not a GeBIZ Trading Partner
  (GTP).

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Purchasing Procedures (Continue)

• Suppliers need to be registered as GeBIZ Trading
  Partners to respond to our Invitation to Quote or
  Tender.
• For non-GTPs both local and overseas, it is
  recommended to invite them to sign up as a GTP.
• www.gebiz.gov.sg
• With effect from 1 April 2005 , all GeBIZ Trading
  Partners (GTPs) will enjoy the use of one
  Authorised Representative (AR) user account
  free-of-charge.

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Purchasing Procedures (Continue)
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Purchasing Procedures (Continue)
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Purchasing Procedures (Continue)

• Users shall base on the Estimated Procurement
  Value (EPV), exclusive of GST to select the
  Procurement Procedure.
• Small Value Purchase (EPV not exceeding 3,000).
• Quotation (EPV above 3,000 but not exceeding
  70,000).
• Tender (EPV exceeding 70,000).

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Purchasing Procedures (Continue)

• Request for Proposal (RFP)
• RFP can be applied in instances when-
• Tendering procedures do not result in responsive
  bids
• Not industry practice to tender out the items in
  question
• RFP should be conducted by Open Tender with-
• Clear requirement statement
• Fair and effective competition

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Purchasing Procedures (Continue)

• Procurement exempted from adherence to the
  Purchasing Procedures-
• A) Subscriptions for local or overseas journals,
• magazines and periodicals.
• B) Supply of water.
• C) Supply of piped gas.
• D) Supply of basic postal services.
• E) Supply of cable vision services.
• F) Services for diversion of the suppliers listed
  in
• (B) to (E) above, where term contractors have
• been appointed by the service providers.

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Small Value Purchase

• EPV not exceeding 3,000.
• Where price is known by-
• Previous Purchase.
• Posted prices by suppliers, media or other
  sources eg. past purchases, flyers and internet.
• Where price is unknown, minimum of 2 quotes are
  required.
• PO is required for asset purchase of unit price
  2,000 and above.

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Quotation

• EPV above 3,000 and not exceeding 70,000.
• Open Quotation is the default mode of inviting
  quotations.
• Limited Quotation
• Only selected suppliers are invited to quote.

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Quotation (Continue)

• Conditions-
• Sole supplier and no alternative.
• Additional deliveries by original supplier (for
  parts replacement, extension of existing
  supplies, maintain service quality level).

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Quotation (Continue)

• Extreme urgency.
• Unforeseen and urgent events
• Prototypes or a first product or service.
• Public Interest to limit competition eg. printing
  of degree scrolls, examination scripts.

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Quotation (Continue)

• Invitation to Quote should have the following
  attributes-
• Clear scope of the Intended Procurement.
• Closing date and time (must be on a working day).
• Reasonable time period for response (minimum 3
  working days).
• Approval from Quotation Approving Authority (QAA)
  is required if quotation opening period is less
  than 3 working days.

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Quotation (Continue)

• Quotation Reference Numbers shall be assigned.
• Recommendation
• Quotations received shall be evaluated and
  recommended for award to QAA based on-
• Most advantageous to the University
• Lowest priced of acceptable quality
• Meet requirements within required delivery period

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Quotation (Continue)

• QAA can approve the recommendation if Actual
  Procurement Value (APV), does not exceed 80,000
  exclusive of GST.
• Quotations should be voided and fresh tender
  invited for APV exceeding 80,000.

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Purchasing Procedures (Continue)
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Tender

• EPV above 70,000
• Types of Tender
• Open Tender
• Open to all GTPs
• Selective Tender
• Open to shortlisted GTPs only
• Normally used in complex procurement requiring
  sophisticated and high level know-how,
  capabilities and related experiences

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Tender (Continue)

• Limited Tender
• Open to a few GTPs
• Open to a single GTP/supplier
• Before proceeding, ensure that the procurement
  falls under one of the specified conditions
  (please refer to Purchasing Procedures Manual
  Section 16.1). Otherwise approval from
  President, through FIN, needs to be sought

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Tender Process

• Step 1 decide on the template for the Invitation
  to Tender (ITT)

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Tender Process (Continue)

• Step 2 prepare the ITT
• For expenditure tenders, unit price is submitted
  electronically while other documents are
  submitted in hardcopy into tender box at FIN.
• Date of tender publication shall be on a Friday
  (if this happens to be a Public Holiday, then it
  shall be one day before, that is, Thursday)
• Date of tender closing shall also be on a Friday
  (if this happens to be a Public Holiday, then it
  shall be on the following Monday), 4 pm
• Exception For revenue tender, the entire
  submission is
• manual and will close on the following
  Monday at 11 am

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Tender Process (Continue)

• date of tender opening shall be on a Monday (if
  this happens to be a Public Holiday, then it
  shall be on Tuesday), 11 am at FIN
• Exception for limited tender to a single
  GTP/supplier, tender opening is by respective
  School/Department/Centre so time for tender
  opening is decided by users but must be opened by
  at least 2 persons of Division 1 status
• minimum tender notice period is 2 weeks, if there
  is site briefing/showround, tender notice period
  must be at least 2 weeks from site
  briefing/showround

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Tender Process (Continue)

• Step 3 Request for Invitation of Tenders Form
• Complete the Form
• Obtain endorsement from Chair of School/Head of
  Department/Director of Centre
• Obtain additional approval from Acting
  Provost/CITS/FPM/CCO, where applicable

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Tender Process (Continue)

• Step 4 Submission to FIN
• endorsed Request for Invitation of Tenders Form
  and final ITT (2 sets) to be received by FIN at
  least 1 week before the tender publication date
• input Tender Notice in GeBIZ at least 1 week
  before the tender publication date

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Tender Process (Continue)

• upload map of FIN at SS1-01-04 Guide On How To
  Proceed to FIN at SS1-01-04 for reference by GTP
  for all tender publication.
• Exception For limited tender to a single
  GTP/supplier, submission of hardcopy documents is
  to School/Department/Centre
• password protect or convert ITT into pdf format
  to prevent unknown modification

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Tender Process (Continue)

• Step 5 Tender is published
• Make sure prospective supplier must be registered
  as a GTP in order to participate in our tender
• Exception-
• (1) tenderer who is participating in revenue
  tender
• whereby submission is fully manual
• (2) limited tender to a single supplier whereby
  sole
• supplier refuses to register as a GTP. If
  so,
• document relevant correspondences on this to
  be
• kept for record and submission will be fully
  manual

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Tender Process (Continue)

• Step 6 Tender opening
• be punctual for tender opening at FIN SS1-01-04
  as this is an established stipulation in
  Purchasing Procedures Manual
• for limited tender to a single supplier,
  School/Department/Centre shall open the tender.
  If bid is submitted electronically, users to
  print the Tender Schedule from GeBIZ

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Tender Process (Continue)

• Tender Opening Committee shall endorse on all
  pages of the Form of Tender and quotation
  schedules
• if tenderer submits electronic bid but did not
  submit the required hardcopy documents, user to
  check GeBIZ system on whether the submission was
  via softcopy. Evaluation will be based on these
  information

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Tender Process (Continue)

• Step 7 evaluate tender
• Check that Form of Tender (all pages) and
  quotation schedules have been endorsed by all
  Tender Opening Committee members. If any
  signature is missing, contact FIN to arrange for
  the necessary.
• Check for any counter-proposals eg. payment
  terms. If it is acceptable, then provide strong
  justifications in Tender Evaluation Report. If
  not acceptable, obtain written compliance.
• Obtain written clarification from GTP/supplier if
  there is discrepancy in pricing schedule. Where
  a genuine computation error arises, indicate
  details in the Tender Evaluation Report.

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Tender Process (Continue)

• Where a need to revise specifications after
  tender was closed, users can invoke a two-stage
  tender.
• Operational processes-
• send a letter to FIN at least 1 week before the
  proposed invitation date through Chair of
  School/Head of Department/Director of Centre
• To inform reason of the decision, shortlisted
  tenderers and how shortlisting is done.
• Attach original set of revised Tender Document
  with the words Two-stage tender in the tender
  description.

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Tender Process (Continue)

• Notes for 2-stage tender -
• (1) invitation date need not be a Friday
• (2) closing date is to be on a Monday, 11am.
• (3) reasonable tender notice period (at least 1
  week) for
• shortlisted tenderers to submit the
  proposals
• (4) there is no need to input GeBIZ Tender Notice
• (5) tender proposal shall be deposited into the
  relevant
• tender box
• (6) invitation letter and ITT can be sent through
  email
• on the same day, preferably under bcc
  function for
• confidentiality reason

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Tender Process (Continue)

• Step 8 Prepare Tender Executive Summary (TES)
  and Tender Evaluation Report (TER) and submit to
  FIN

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Tender
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Tender
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Tender Process (Continue)

• Important notes for TER-
• indicate whether price is fair and the basis for
  this conclusion, eg. in comparison with past
  procurement, prevailing market prices, etc
• number of complete sets of TES and TER is based
  on APV for award cases
• number of complete sets of TES and TER is based
  on EPV for no award cases
• recommendation shall be in accordance with
  specified Evaluation Criteria. If other
  considerations are necessary, these should be
  specified in the ITT in the first instance

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Tender Process (Continue)

• Step 9 User to create PO once approval is
  granted by TAA
• Create PO in SAP for one-off purchase
• Create PO in GeBIZ for period contracts

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Purchasing Procedures (Continue)
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Tender Process Milestone
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Tender Process Milestone (Continue)
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Summary

• Comply with purchasing procedures to be in line
  with procurement principles
• Transparency
• Value for money
• Open and fair competition
• Proper planning for efficiency in procurement

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Enquiries

• Further enquiries-
• Procurement Related Matters Finance
• Alvin Ext 5796 angbh_at_ntu.edu.sg
• Cindy Ext 4790 clcheong_at_ntu.edu.sg
• Yew Wah Ext 5056 ywlim_at_ntu.edu.sg
• Catherine Ext 5147 chchew_at_ntu.edu.sg

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Purchasing Briefing

• QUESTIONS ANSWERS