HCL Infosystems

Procure to Pay – ‘To-Be’ Process Maps

P2P ‘To-Be’ Process Maps

► Material/ Service Code Creation

► Purchase Requisition

► Vendor Selection, Registration & Creation

► Purchase Order Creation

► Goods Receipt

► Material Movement (Stock Transfer)

► Purchase Return

► Defective Material Movement

► Invoice Verification

► Payments

Page 2
Material/ Service Code Creation

Requestor to provide HSN/SAC

MDM Team to
Code (basis the vendor quotation) &
verify inputs MDM Team to input HSN/SAC
initiate new material/ service code
and validate if code against the material
request through: OK
START the material description (as per vendor’s
1. ‘Product Creation System’ - for
code already quotation)
ED only exists
2. 'Workflow for other than ED’ - for (duplicity)
all other LOBs

Not OK

MDM Team to
Requestor to create communicate the new
MDM team to create the
END Purchase Requisition basis material/service code
material/service code in SAP
code received (SAP) to the original
requestor

Page 3
Purchase Requisition

Requestor to identify the Requestor to attach Requestor to create

START material / service the quotations from branch-wise PR under
requirement the vendor (if any) decentralized model

Additional mandatory fields to be captured :

a) Place of supply (POS)

b) GSTIN of HCL's location where POS falls Creation of PR in
c) HSN/SAC code of goods / services SAP by requestor
d) Quantity
e) Required Delivery Date

Approval of PR as
Release of PR in
END per defined
SAP
authority matrix

Page 4
Vendor Selection, Registration and Creation

Understand the complete Identify potential Request for Quotation sent Negotiations and
requirement and vendors 1 to identified vendors. finalizations with potential
deliverable to classify the vendors on the basis of
START
contract type and quotations received.
identification of vendors.

Not OK

Necessary documents along with

MDM Team to Document submitted by signed “New Vendor registration form Selection of Final Vendor Comparative statement is
verify3 all buyer/requestor to MDM (NVRF) is collected from the vendor.- by the procurement team prepared to analyze the
documents team for verification Additionally copy of state wise GST Quotations received.
and obtain registration certificate and declaration
necessary form for vendor opting for composition
approvals scheme2

OK
Withholding tax rates applicable Vendor code (in blocked Auto email is sent to the Confirmation
to the vendor is confirmed from stage) is generated in SAP vendor for confirmation of the of details by Yes
taxation team and entered. details entered in SAP. vendor.

Vendor code is activated

No in SAP
Additional details to be captured as following- Required changes to be done
a. Vendor GSTIN in Vendor Code creation
b. Status of Vendor (Registered / Unregistered fields in SAP
/ under Composition scheme / SEZ)
END

• 1 While identifying potential vendors, additional considerations for vendor’s GSTIN ratings also need to be made.
• 2The declaration from vendor opting for composition scheme should state that in case the turnover during the financial year exceeds INR 50 lakhs, he shall inform the
same to HCL.
• 3 Additionally, vendor GST details to be validated

Page 5
Purchase Order Creation

Validation of PR
Inputs Vendor Is Approval for
Receipt of Yes
(Quantity/ Unit Price/ Yes Shortlisting, Vendor pricing as per
START Approved PR in
Model/ SKU/ Spec/ Negotiation & a related defined valuation
SAP Location) by Selection party rules
Procurement Team

No No
Sent back to user for
modification

Approval At the time of PO Creation* in

as per SAP, procurement team to:
Confirmation from Yes
END Sharing of approved Release of PO in defined • Enter Vendor Code of
vendor for PO selected vendor
PO with Vendor SAP authority
receipt matrix (in • Verify the details auto
SAP) populated from PR

* Mandatory Fields:
No
• Ship from address of vendor – Procurement Team
• GSTIN of vendor from place (state) of shipment – Auto populated from Vendor Procurement team
master to amend the PO, if
• GSTIN of HCL's location where POS falls – Auto Populated from PR needed
• CGST, SGST/UTGST, IGST rate and value – Automated in SAP basis the
configuration of tax master by IDT Team
• HSN/SAC code of goods / services ordered – Auto populated from material code
• Place of supply – Auto Populated from PR

Page 6
Goods Receipt

START

1.Goods received at Short Shipment, SCM Team to issue

SCM Executive Vendor
the warehouse by Create GRN entry Destroyed or Return Invoice (by Claim input credit on the
compares the
SCM Team in SAP for 100/100 Lost Shipment Resp. generating return delivery entire amount while
quantity
2.SCM Team to quantity & upload Responsi back to the vendor uploading the returns
received to
match the HSN the physical bility against the same GRN) (IDT Team)
physical
Code on invoice invoice in SAP for the quantity received
invoice/DC
from the PO short / damaged

HCL Resp.
OK

HSN Code Yes

matched Claim input credit on the Reverse input credit on the • Reverse input credit (SSC Team)
entire amount while goods lost, stolen, destroyed, for an amount equivalent to the
uploading the returns written off (SSC Team). goods received damaged/short,
(IDT Team) SCM Team to lodge insurance once credit note is received from
claim for the same (if applicable) vendor.
No • IDT team to reverse credit in returns
Note: No reversal in case vendor
provides replacement for the
Communicate the
short/damaged quantity.
mismatch to
procurement team

Procurement Team to
resolve the issue & get END
an updated invoice from
vendor

Page 7
Material Movement - Stock Transfer

COMD Team (SCM Team for Services LOB, & SCM Team processes the
Team raises STPO (Stock
Commercial Team for CD) identifies the requirement STPO and generate DC &
START Transfer Purchase Order)
of material at particular location (WH1) and checks PGI (Post Goods Issue) in
in SAP
availability of buffer stock at other warehouses (WH2) SAP

GRN of Goods at Dispatch of Goods SCM team to generate Yes

WH 1 from WH 2 Stock Transfer Note Within State
(Delivery Challan) *

No

GRN of Goods at
IDT Team to claim the input Dispatch of Goods SCM Team to generate
END WH 1 (refer detailed
tax credit in return for WH 1 from WH 2 self supply invoice*
GR process)

*E-waybill to be required if the value of the goods exceeds INR 50,000/-

Page 8
Purchase Return

Quantum and location of Product Manager to

return with reasons to prepare cost sheet with
be established by details of Input GST Approval Approval Approv
Yes Yes Yes
START Demand Planner with reversal, freight cost, & of LOB of BFC al of BU
consultation of LOB loss (if any) to be Head Head Head
Head recovered from OEM
vendor.
No No No

Stock consolidation Purchase return invoice and
for Purchase return issue delivery challan for
to be executed.by transporting the goods from
PM/DP its warehouse to vendor’s
location.
Logistic team to execute
delivery and obtain POD.
Credit Note is obtained from Vendor for goods
return containing the prescribed particulars
(Product Mgmt. – ED, Procurement – CD,
SCM – Care, Central Procurement – Services
and SI)

GST adjustment is recorded in

SAP basis credit note issued
END by the vendor.

Page 9
Movement of Defective Goods

X
Receipt of Transfer goods
defective goods at from Regional Yes Repaired at No To be No
START Regional Sent back to
Regional Warehouse to Repairable? sent for
Repair RWH
Warehouse (RWH) Regional Repair job
Centre Centre? work?

No Yes Yes A
Goods sent from Receipt of
RWH to Mother WH defective goods at Goods to be scrapped Sent RWH as
A against self-supply Mother and input credit to be good stock
invoice* (inter state Warehouse (RW) reversed
only) Goods sent for Job-work
against delivery challan*
B (intra/inter state both)

Transfer goods
from Mother Yes Repaired No Sent back to
Warehouse to Repairable? at Repair Mother
Mother Repair Centre? Warehouse Repaired
Centre Goods goods
Yes
received as received
No Yes good stock within
One year
Goods to be scrapped Sent to the X
and input credit to be warehouse as
reversed good stock B END
No
Tax invoice to
B
be issued within
SAP

*E-waybill to be required if the value of the goods exceeds INR 50,000/-

Page 10
 Invoice Verification

GR is done at the time

SSC Team to post the
Material of material receipt at
X Invoice in SAP
warehouse and
Invoice received by:
physical invoice is
 SCM Team (Material) PO Based uploaded in SAP
 SSC Team (Services)
START
 Respective user
department in case of non END
P.O based Capture invoice Invoice PO or
Services Yes
details are Pearl1 X approval Non-
(Pearl PO
Non-PO
workflow) Purcha
Non PO Based se B
Communicate to the respective user and take No PO
necessary steps for correction
Service Entry (SE) is
created and Invoice is
parked in SAP

SSC team Check the

validates the Check eligibility of Yes Check if invoice
OK applicability of No Yes
X invoice details in Invoices for Input
reverse charge
booking is within X
SAP2 tax credit 60 days from end
mechanism3 of the F.Y.

No Yes No
SSC Team to flag such
Not OK invoices in the system, if
required Approval Yes
SSC team communicates to the to be Exceptional
respective user and take necessary steps obtained approval
for correction Workflow
B

• 1Capture following additional fields - Iinvoice number and date, GSTIN of supplier, GSTIN of recipient, Taxable Value, Value and type of tax, HSN / SAC (not mandatory presently), Credit note number
and date (applicable in case of sales return or deficient supply
• 2 Additional validations required at the time of invoice verification – Place of Supply, Vendor & HCL GSTIN on invoice, HSN/SAC code.
• 3Applicability of reverse charge:
• A. in case of procurement from registered dealers : Certain Cases
• B. In case of procurement from unregistered dealers: All Cases
• Timelines for payment of GST under reverse charge: 30 days for goods/supplies & 60 days for services

Page 11
Vendor Payments

Basis inputs from business & AP team to generate a “Payment SSC Team to upload Vendor
IDT team, AP Team to select due report” . AP Team checks code and Document No in SAP
vendors for whom payment is availability of funds Yes
START
to be made on a particular from Treasury
day. Team

Necessary actions No
as per company
policy

Payments processed in batches

Other than for each HCL entity. Mode of
Full payment Final payment Yes Approval by
vendor payment and bank account
to be made to made designated
selected for payment and
authorities
payment executed in SAP

HCL to maintain additional

documentation to evidence Vendor
that payment to person other
than vendor is made on the
Full input credit
instructions from vendor. END
available

Page 12
Vendor Payments Contd. - Invoices Booked but Not
Paid within 180 days

SSC Team to generate a Payment Accounts team to IDT Team to reverse

monthly report for the outstanding Yes share the list of the input credit
START invoice-wise outstanding such transactions availed against such
for more
payments than 180 with IDT Team invoices
days

No

No action required END

SSC Team to generate a Payment Accounts team to IDT Team to avail the
monthly report for the list made after Yes share the list of input credit against
START of payments made during such transactions earlier reversed
180 days of
the month invoice with IDT Team against such invoices
booking

No

No action required END

Page 13