MEMORANDUM

TO :
Procurement Department

Finance Department

FROM :
Audit Department

SUBJECT : COMPLIANCE IN PROCESSING PURCHASE ORDER

AND SUPPLIER’S BILLING

DATE : April 20, 2023

It has come to the attention of the Management that the existing policy on processing material
requests prescribed by the company is not strictly followed.

It is the primary responsibility of the Procurement Department to ensure that the procedures set
by the company in processing material requests including the processing of suppliers’ billing and
issuance of Purchase Orders are being followed so that the final outcome as desired will not be
hampered in any respect.

In view of this, the Procurement Department is strictly advised to comply with the required
requirements in processing the material requests from issuing purchase orders to processing
supplier’s billing.

Here are the documents needed as mandated in the Procedures Manual.

1. Material Requisition Slip (MRS)

– Signed by the requesting person, Materials Coordinator, and Project Manager, with
approved signed of MLR or BSR (General Manager/s)

2. Canvassing Form (CF)

– with two or more comparative suppliers and with the approved signed of MLR or BSR
(General Manager/s)

3. Copy of formal quotations from at least three (3) Suppliers

4. Purchase Order (PO)

– with complete attachment and approved signed of MLR or BSR (General Manager/s)

For processing suppliers’ billing, the following documents are necessarily attached together with
the approved Purchase Order (PO);

 Original copy of Sales Invoice (SI)

 Original Copy of Delivery Receipt (DR)
 Billing Summary (BS)
Please also take note that erasures in important documents such as Purchase Orders, Sales
invoices, and Delivery Receipts are highly discouraged.
With this matter, the Finance Department is hereby directed to strictly monitor the compliance of
all submitted purchased orders and suppliers’ billing.

This is to ascertain that all purchases have been authorized with properly supported documents
and to eliminate fraudulent acts on the company’s fund and its procurement process.

Every department should be aware that a failure to comply with the policy, including any
arrangements that are put in place under it, will be investigated and may lead to disciplinary
action being taken.

For information, guidance, and strict compliance.

Noted by:

General Manager