SOP Number: DEB/SOP/001

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Dominant SOP

SOP Number: DEB/SOP/MKT/001

Version: 1.0
DOMINANT ENTERPRISE BERHAD Date: January 2016

STANDARD OPERATING PROCEDURE

SOP No DEB/SOP/001 Effective Date: 01/01/2020

Version No. &
1.0 & Jan 2020
Date
Superseded
Version Number NA
and Date

Written by Alan Yong Wui Kin Signature/Date

Review by Signature/Date

Approved by Signature/Date

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Dominant SOP

Document History SOP Number: DEB/SOP/MKT/001

Version: 1.0
Version Date: January 2016
Effective date Authorship Summary of changes
number
1.0 01/01/2020 Alan Yong New Standard Operating Procedure (SOP)

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Table of Contents SOP Number: DEB/SOP/MKT/001

Version: 1.0
Section Procedures Page No. Department
Date: January 2016
1 Target a Potential Customer 5 MKT
2 Open a New Debtor Account 6 MKT/ACC
3 Changes/Alteration of Debtor’s Data in Accounting System 8 MKT/ACC
5 Cash Sales Account

PAGE
1. Procedures
Section 1 - Target a Potential Customer…………………………………………………………………………….5
Section 2 - Open a New Debtor Account……………………………………………………………………………5
Section 3 - Cash Sales Account…………………………………………………………………………………………..7
Section 4 - Changes/Alteration of Debtor’s Data in Accounting System……………………………..8
Section 5 - Sales Preparation……………………………………………………………………………………………..11
Section 6 - Process a Sales Order
Section 7 - Outgoing Stock

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Abbreviation SOP Number: DEB/SOP/MKT/001

Version: 1.0
ACC Branch Accounts Department Date: January 2016
C.B.D Cash Before Delivery
CIA Customer Information Alteration Application Form
COF Customer Order Form
CRC Credit Control Department
DEL Delivery Department
IAD Internal Audit Department
MKT Marketing Department
P&L Purchase & Logistics Department
P/O Purchase Order
RF1 CTOS Request Form

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Dominant SOP

1. Procedures SOP Number: DEB/SOP/MKT/001

Section 1 - Target a Potential Customer Version: 1.0
1. MKT shall search for new customers by expanding the area of sales. Date: January 2016

2. MKT shall search for new customers through: (suggestion only)

a. Trade associations;
b. Professional associations;
c. Person from related industries;
d. Associate company;
e. Existing Customer;
f. Magazines, newspaper, exhibitions etc.

3. MKT shall target potential customers.

4. MKT shall find out potential customers' information through related industry associates.

5. MKT shall obtain new customer's company profile, if possible.

6. MKT shall submit RF1 to CRC for company background search.

7. MKT shall study the corporate history of potential customers.

8. MKT shall also consider the potential customers' size, paid up capital, consumption volume,
markets & suppliers etc.

9. MKT shall build up personal relationships with potential customers.

10.MKT shall follow up initial contacts with potential customers by regular visits.

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1. Procedures SOP Number: DEB/SOP/MKT/001

Section 2 - How to Open a New Debtor Account Version: 1.0
1. MKT shall generate RF1 through SAP System for CTOS search. Date: January 2016

2. MKT shall attach RF1 with customer’s name card, if available.

3. MKT shall ensure RF1 is with accurate running number from RF1 Master List.

4. MKT shall submit the RF1 to HEAD or any other person authorized by HEAD for approval of
CTOS search.

5. If the RF1 is approved for CTOS search, MKT shall submit/email the RF1 to CRC for further
action.

6. CRC shall perform the CTOS search and reply to MKT within 3 working days after receiving the
approved RF1.

7. In urgent cases, MKT shall obtain verbal approval from HEAD or any other person authorized
by HEAD and request CRC to perform immediate CTOS search without RF1 but RF1 must be
submitted within 2 days. CRC shall call the approver to confirm such approval.

8. CRC shall send the CTOS report to HEAD and highlight any special issue for HEAD's
consideration.

9. HEAD or any other person authorized by HEAD shall study the business history of the potential
customer.

10.HEAD's or any other person authorized by HEAD’s is required to approve new debtor accounts
by stating the credit limit and credit terms and sign on RF1.

11.Credit limit above RM 150,000 need to be approved by Group Director in-charged of that
particular branch.

12.Any customer with legal case history (including I/C match case, name match only case and
cases that are settled and withdrawn), trade reference, and company paid up capital below
RM 10,000 must get approval from Group Director in-charged of that particular branch.
(Please refer to Table 1: RF1/CIA Authorization Table)

13.Once HEAD gives approval, RF1 shall be passed to ACC for open new debtor account and ACC
shall file the RF1 into RF1/CIA File.

14.CTOS report shall valid for 6 months period only. If new customer account is inactive within 6
months from the date of CTOS report, new search (through CIA) shall be conducted if an order
is obtained from this customer.
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15.ACC shall convert the new debtor account based on the data on RF1 and record down the
SOP Number: DEB/SOP/MKT/001
debtor code and date of opening on RF1. Version: 1.0
Date: January 2016
16.ACC shall ensure the details on RF1 is accurate and complete and match to SAP Business
Partner Data.

17.A copy of completed RF1 shall be sent to CRC to update CRC RF1 File.

18.If a customer which already open account in one branch, and need to open another account in
other branch or other related company under Dominant Group, MKT shall prepare the RF1 for
account opening, it is HEAD’s decision to re-search the customer or not before submit the RF1
to CRC.

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1. Procedures SOP Number: DEB/SOP/MKT/001

Section 3 - Research/Changes/Alteration of Debtor’s Data in Accounting System Version: 1.0
Date:
1. Only ACC is authorized to alter a customer's information in the accounting January 2016
system.

2. MKT shall fill up CIA for HEAD’s approval before any alteration can be made in the accounting
system by ACC.

3. MKT shall ensure CIA is with accurate running number from CIA Master List.

4. CIA shall be used for the changes of:

a. Existing customer research;
b. Credit limit;
c. Credit term;
d. Customer’s name;
e. Company address;
f. Contact person's name;
g. Contact numbers;
h. Sales agent's name;
i. SST number.

5. MKT shall state the reason(s) for proposed changes in limit and term on CIA for HEAD’s
consideration.

6. MKT shall also state whether such changes is temporary (must specify the period ended,
always ended on the last day of the month) or permanent.

7. Credit limit above RM 150,000 (including combined limit) need to be approved by the Group
Director in-charged for that particular branch.

8. CIA for customer with legal case history (including I/C match case, name match only case and
cases that are settled and withdrawn), trade reference, and company paid up capital below
RM 10,000 must get approval from Group Director in-charged of that particular branch.
(Please refer to Table 1: RF1/CIA Authorization Table)

9. MKT shall request customer who had changed their name, address and/or contact numbers to
write us a written notification.

10.The sales agent who pass the customer account shall fill up CIA for change of sales agent and
state the effective date of transfer, which shall be the 1st day of the month.

11.All CIA approved by HEAD shall be passed to ACC for the alteration and CRC for verification.

12.In the event on change of address, CRC shall issue Confirmation of Changes to both new and
old address by normal post.
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13.In the event on change of contact number(s), CRC shall call the customer through both the
SOP Number: DEB/SOP/MKT/001
new and old numbers. Version: 1.0
Date: January 2016
14.ACC shall file the original copy of approved CIA into the RF1/CIA File and always keep on the
front page.

15.ACC shall send a copy of complete RF1 to CRC to update the CIA File.

Table 1: RF1/CIA Authorization Table

Criteria Authorised & Approval Limit HEAD GD

Credit Limit Below RM150,000 √ NA
(individual &
RM 150,000 & Above √ √
combined)
No √ NA
Legal Case Issue
Summons/Court Case/Trade Reference √ √
Paid Up Capital RM 10,000 & Below √ √
Issue RM 10,001 & Above √ NA

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Dominant SOP

1. Procedures SOP Number: DEB/SOP/MKT/001

Section 4 - Cash Sales Account Version: 1.0
Date: January 2016
1. Cash Sales Account is mean for walk-in customer with solid cash payment.

2. There should be only one Cash Sales Account for each branch. The sales agent for this account
is “Office”. “NO” Cash Sales Account is allowed to open for MKT.

3. HEAD is authorized to approve Cash Sales Order with cheque payment not exceeding RM
2,000.

4. For Cash Sales Order with cheque payment exceeding RM 2,000, no delivery is allowed before
the cheque is cleared unless approval obtained from Group Director in-charged of that
particular branch.

5. Debtor account should be opened for all customers found by MKT although the customer is
paying solid cash. Debtor account with C.B.D term should be opened for customer who is
making solid cash payment upon placing order or goods deliver after cheque clearance. Such
debtor account can be opened with HEAD’s approval and prior to performing CTOS search or
without performing CTOS search.

6. For debtor account opened prior to performing CTOS search, RF1 should be filled up and get
HEAD’s approval to open C.B.D. term account, then ACC open the debtor account, after that
submit the completed RF1 to CRC for CTOS search and update RF1 File.

7. For debtor account opened without performing CTOS search, RF1 should be filled up and get
HEAD’s approval to open C.B.D. term account without performing CTOS search, then ACC
open the debtor account, after that submit the completed RF1 to CRC for updating RF1 File.

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SOP Number: DEB/SOP/MKT/001

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Date: January 2016

Table 1: RF1/CIA Authorization Table

Table 2: Authority Chart-As at 1st January 2016

Branch Group Director HEAD Branch HEAD

CBJB Lai Yin Hong Lai Yin Hong
BPJB Lai Yin Hong Lai Yin Hong
KGKK Lai Yin Hong Raymond Lau
CBMR Chan Han Ching Chan Han Ching
Danny Owee
BPMR Chan Han Ching Chan Han Ching
CBKN Tey Giok Ling Calvin Foong
KGKC Francis Yeo Francis Yeo
KGSB Francis Yeo Lee Yan Hui
ITKL Chin Soon Kong Chin Soon Kong
ITKT Chin Soon Kong Chin Soon Kong
ECSB Chin Soon Kong Chin Soon Kong
ITKB Chin Soon Kong Lee Guan Seng
ITIP Chai Soon Too Chin Soon Kong Choong Moi Soon
ITBW Heng Yik Poh Heng Yik Poh
ECBW Heng Yik Poh Heng Yik Poh
JRKL Wong Ming Wong Ming
JRBW Heng Yik Poh Heng Yik Poh

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Dominant SOP

SOP Number: DEB/SOP/MKT/001

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Section 5 – Preparation of Sales
Date: January 2016
1. MKT shall be required to have good product knowledge by:
a. Referring to catalogues;
b. Examining the products which are available (whether in store or otherwise);
c. Fully understand the different product specifications/grades/sizes/thicknesses;
d. Learn to identify different product specifications/grades/sizes/thicknesses; and
e. Understand the acceptable product quality requirements for every customer.

2. MKT shall understand our Company's market position, product demand and supply.

3. MKT shall be aware of current market trends especially market demand and prices.

4. MKT shall be able to estimate the market's potential and forecast future market trends.

5. MKT shall be aware of the presence of competitors and their market positions in the
industry.

6. MKT shall be aware of threats from the existing and potential competitors.

7. MKT shall maintain and update a product's price list.

8. MKT shall determine the products' price structures for different customers.

9. MKT shall identify our most competitive products which can be supplied to the customers.

10.MKT shall be aware of the expiry dates and availability of approved products under CJ5A
for CJ5 customer.

11.MKT shall maintain good relationships with potential and/or existing customers by
regular visits.

12.MKT shall introduce products to customers to suit their needs and satisfy their
requirements.

13.MKT shall handle and respond to customers' enquiries and complaints in an urgent
manner.

14.MKT shall try to promote products that are available in the store especially slow moving
stock.

15.MKT shall contact DEL to confirm and ensure that stock is available. If stock is not
available, obtain the arrival date of the relevant stock from P&L.

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SOP Number: DEB/SOP/MKT/001

16.MKT shall prepare quotations upon request by customers. Version: 1.0
17.Every quotation shall clearly indicate the full specification of the products including:
Date: January 2016
a. Reference no. (must be in sequence);
b. Validity period of the quotation or “Price quoted is subject to change without prior
notice”;
c. Grade of the product;
d. Unit price;
e. Minimum quantity;
f. Term of payment; and
g. Term of delivery.

18.A quotation shall be jointly signed by the sales agent and HEAD / MKT HEAD or
authorized personnel by HEAD.

19.MKT shall maintain a Quotation Running Record Master List and file the Quotation in the
Quotation File.

20.Quotation must be filed by customers’ name in an alphabetical order.

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SOP Number: DEB/SOP/MKT/001

Version: 1.0
Section 6 - Process a Sales Order Date: January 2016
1. MKT shall request P/O from customer, on which item description, quantity and unit price
shall be stated clearly.

2. If an order is made without P/O, MKT shall fill up the customer representative’s name
and contact number on COF and DEL shall call the customer to confirm their order.

3. MKT shall check the availability of stock with DEL.

4. If DEL received call from customer for enquiry on goods availability, DEL shall request
customer to refer MKT.

5. If stock is not available, MKT shall raise with P&L to order the goods.

6. P&L shall confirm the date of arrival of goods to DEL.

7. DEL shall then inform MKT of the date of arrival of the goods.

8. MKT shall then inform the customer the date of delivery and re-confirm the order.

9. After confirm the customer P/O, MKT shall fill up COF in duplicate copy (DEL & STORE
copy) with the following details:
a. Buyer reference;
b. Description and quantity;
c. Stock Code;
d. Unit price on DEL Copy;
e. Date, place and term of delivery;

10.MKT can request DEL to prepare COF on behalf of them but they are still required to sign
on COF to confirm the data.

11.If the delivery is not from our warehouse, MKT shall only need to fill up a copy of DEL COF
with unit price and then pass to DEL for delivery arrangement.

12.MKT shall attach the COF with P/O (if available) and submit to DEL.

13.After received the COF from MKT, DEL shall keep the DEL copy and pass the STORE copy
(without price) to STORE.

14.STORE shall arrange the goods according to the details in COF.

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15.If the stock item stated in COF is insufficient or inexistence, STORE shall inform DEL and
SOP Number: DEB/SOP/MKT/001
DEL shall inform MKT immediately for further clarification. If change of stock is needed,
Version: 1.0
MKT/DEL shall amend both COF (DEL & STORE copy) and pass back Date: January 2016 to
the revised COF
STORE for stock preparation.

16.STORE shall only sign on the STORE COF which contain with correct stock code and
quantity during outgoing delivery.

17.STORE shall sign on COF for every outgoing delivery from own warehouse only.

18.STORE shall then return the COF to DEL after the arrangement goods.

19.Any amendment on COF shall be counter-signed by MKT as to confirm the new

amendment.

20.DEL shall issue D/O according to COF after cross-checked to both COF.

21.The D/O shall be issued in 5 copies which:

a. 1st-White copy to customer;
b. 2nd-Red copy to INV Running File;
c. 3rd-Blue copy to Debtor File;
d. 4th-Green copy to Transporter; and
e. 5th-Yellow to D/O Running File.

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SOP Number: DEB/SOP/MKT/001

Section 7 - Outgoing Stock Version: 1.0
Date: January
1. All COF shall be issued in duplicate copy for delivery from own warehouse 2016
and attached
with P/O, if available.

2. DEL shall arrange for transportation of goods to customer.

3. Except for HEAD and DEL, no one else is authorized to interfere with the transportation
and delivery of goods.

4. DEL shall keep the DEL COF and pass the STORE COF (without price) STORE.

5. STORE shall arrange the goods according to the details in COF.

6. 1 COF can be used against more than 1 D/O, depends on delivery. In such case, the COF
shall be photocopied and attached to each related D/O, all related D/Os’ No. shall be
recorded in the COF.

7. D/O shall be issued to existing customer from the Debtor File Maintenance in the
Accounting System. Cash Sales D/O can only be issued for the following:
a. D/O value less than RM15,000 ; or
b. Solid cash received from customer and approval granted by Group Director in-charged.

8. The D/O issued must be neat and clean. No liquid or corrector is allowed to be used on
D/O.

9. Any necessary amendment to be made on D/O must be chopped & signed by DEL;
amendments shall not be more than two. Customer shall be requested to chop & sign
beside the amendment, if possible.

10. DEL and STORE shall cross-check the goods in term of quantity and grade before loading.

11.DEL shall sign on the D/O after cross-checking the goods.

12.STORE shall sign on D/O after loading.

13.DEL shall ensure Transporter state down their name, I/C number and sign on Transporter
column.

14.For goods delivery from own warehouse, all copies of D/O shall be passed to transporter
to sign in the transporter column on the D/O for each collection.

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15.Yellow copy of D/O will be retained by DEL to be filed into D/O Running File and the rest
SOP Number: DEB/SOP/MKT/001
of the copies shall be passed to customer by the transporter for signature and company
Version: 1.0
stamping upon receiving the goods. Date: January 2016
16.All copies of D/O except for yellow copy shall be signed and stamped by our customers as
per the name appeared on the D/O.

17.If the goods are delivered to third party, the D/O can be stamped by third party if the
customer P/O has mentioned the details of third party.

18.The white D/O shall be given to and kept by the customer as customer's copy.

19.The green D/O shall be given to and kept by the Transporter.

20.The red and blue copy of the D/O shall be returned to DEL by Transporter.

21.DEL shall file yellow copy of D/O in the D/O Running File.

22.DEL shall pass the COF and the remaining copies of the D/O to ACC for INV preparation.

23.MKT shall follow up with DEL until the goods are delivered to customer.

24.If the goods are direct delivery from port or supplier’s factory, DEL shall fax the D/O to
Transporter and request them to pass the D/O for customer chop and sign and send back
to DEL.

25.
26.
1.
2.

1.
2.
3.
4.
5.
6.
1.
1.
2.
1.

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SOP Number: DEB/SOP/MKT/001

Version: 1.0
Date: January 2016

Section 5 – Debtor Monitoring

2. Upon received updated copy of RF1 and CIA from ACC, CRC shall ensure the customer
with credit limit of RM 100,000 and above must be monitored in CTOS Monitoring System.
Any exception shall be approved by Group Director in-charged of that particular branch.

3. HEAD shall determine which customer account they wish to monitor under CTOS
Monitoring System.

4. CRC shall send out the Monitoring List to every branch by half yearly and HEAD shall
review the Monitoring List and submit to CRC for revision before 31st Jul and 31st Jan of
every year.

5. It is also HEAD authority to review the Monitoring List when necessary.

6. HEAD shall fill up the MF2 for following purpose:

a. Addition of new customer to CTOS Monitoring System ;
b. Removal of existing customer from CTOS Monitoring System.

7. Group Director and HEAD shall sign on the MF2 as approval and send to CRC for further
action.

8. CRC shall update the CTOS Monitoring System according to the approved MF2.

9. CRC shall maintain the CTOS Monitoring File and keep it updated.

10.It may has same customer is monitored by different branches and it is CRC responsible to
ensure no repeated customer is monitored in different CTOS account and any deletion of
combined monitored customer must be approved together by the particular branches.

11.Once any monitoring report is received from CTOS, CRC shall request the current credit
term and limit and outstanding balance from the branch.

12.CRC shall send the monitoring report with current information to Group Director and
HEAD and highlight any point of concern from monitoring report.

13.MKT shall issue the CIA to change the customer’s credit term and limit to CBD/RM 1
immediately after CTOS monitoring report received from CRC.

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SOP Number: DEB/SOP/MKT/001

14.MKT shall obtain GD approval If want to remain the customer’s credit term and limit
Version: 1.0 or
issue the new CIA to revert back the credit term and limit from CBD/RM
Date: 1.
January 2016

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SOP Number: DEB/SOP/MKT/001

Version: 1.0
Date: January 2016

1. If

8. CRC shall ensure all debtors with credit limit RM 100,000 and above must be
monitored under CTOS system; any exception must be approved by Group
Director in-charged of that particular branch.

1. CRC shall ensure CIA for increase credit limit to RM 150,000 and above is monitored,
any exception must be approved by Group Director in-charged of that particular
branch, and indicate in the CIA “Not to monitor this debtor”.

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