PROCUREMENT PROCESS

Procurement involves acquiring the goods and services that enable an organization to operate . In the
private sector, procurement is viewed as a strategic function working to improve the
organizations profitability.  Procurement is seen as helping to streamline processes, reduce raw
material prices and costs, and identifying better sources of supply. 
Apo Agua Infrastractura used the Procure to Pay Process (P2P) Cycle. P2P, is the process of
obtaining the raw materials needed for manufacturing a product or providing a service, and
making payment for these.
The purpose for this process is to :
o To ensure timely and accurate processing and recording of payables based on valid and
complete supporting documents.
o To ensure that all purchases are valid and obtained from the list of accredited suppliers.
o To ensure proper planning by observance of procedure lead time in accordance to set
KPIs.

This procedure shall cover the processes commencing from the accomplishment of the PR to the
supplier’s acknowledgement of the PO up the receipt of invoice package and up to the approval of
the corresponding accounts payable voucher.
 6.0 PROCEDURE DETAILS

ACTIVITY FLOW PERSON/S PROCEDURE DETAILS KPI

RESPONSIBLE
Department 6.1 Department Representative analyzes the As necessary
Start
Representative situation and checks the request.
6.1.1 If emergency request, go to
Analyzes the situation Emergency PR and PO
and checks the request
Procedure (Refer to APR-SMW-
02-02 Procedure on Emergency
Purchases) then proceed to PN
Emergency 6.2.
request? 6.1.2 Else, go to PN 6.2.

6.2 Department Representative accomplishes

Yes 1 day
the PR.
Department
No 6.2.1 If request are materials,
Emergency Representative supplies, equipment or spare
Purchases
parts, Department
Accomplishes PR after
checking the available Representative adds the Central
stocks on-hand Warehouse SH to the list of
PR
A recommending approvers in
Oracle.
Routes PR for approval
6.2.2 If request is computer and
peripherals, add the IT DH to the
Reviews the request list of recommending approvers
in Oracle.
6.2.3 Else, go to PN 6.3. (Refer to
No Approved? APR-A001 Appendix on
Financial Levels of Authority).
No 1 day
6.3 Department Representative routes the
Inputs reason for
Department manual PR for Non-AAII transactions or
Yes disapproval submits the PR via ERP system for AAII
Representative
Receives the approved B transactions.
PR for assessment
6.4 Approver reviews the request. If there are 2 days
Approver
available stocks, request will be processed
via MO.
Accurate?
6.4.1 If approved, go to PN 6.5.
6.4.2 Else, inputs reason for
Yes disapproval. End of process.
1 day
6.5 Procurement Specialist receives the
Procurement
Bid required? No approved PR to check the accuracy of
Specialist details.
A 6.5.1 If accurate, go to PN 6.5.2, else
Yes
go to PN 6.2 to advise the
Department Representative to
C

C
 Sends RFQ to suppliers
RFQ

Receives the bid and

encodes the quote in the
Oracle Quotations function
effect the corrections.
A
Prepares the QAR and 6.5.2 If for bidding, go to PN 6.6, else
routes to the approvers go to PN 6.8.
QAR
For inventory
6.6 Procurement Specialist secures list of
Reviews the submitted quotes Procurement items: 6
suppliers from the Procurement SH/SMW
Specialist DH for the RFQ distribution. days;
For stock-
Approved? 6.7 Procurement Specialist receives the item: 8 days;
No For indent
supplier’s bid and encodes the quote in
Procurement
Yes the Quotations functionality of Oracle. items: 15
Specialist
Prepares and issues days;
PO/POCR PO 6.8 Procurement Specialist prepares the QAR*
POCR Procurement and routes to the approver. For minor
Specialist *QAR may be prepared even before the
Routes PO for approval
services
receipt of the PR provided that the End
(fabrication,
user submits the accomplished Request
Reviews the request for Advance Canvassing form (Refer to repairs, etc.):
APR-SMW-02 Policy on Requisition to 15 days;
Order). For special
Disapproved?
projects
6.9 Approver reviews the submitted quotes. (planned
Approver 6.9.1 If approved, go to PN 6.10. purchases,
Yes
Else, go to 6.8. major
Rejects PO and apply the
corresponding rectification
repairs, etc.):
No 6.10 Procurement Specialist prepares and
Procurement 30 days (PN
issues the PO or POCR (if there are
Prints the PO and sends to Specialist 6.6-6.13)
changes to the original PO).
the winning bidder

Procurement 6.11 Procurement Specialist sends the PO to

Acknowledges the receipt the approver. For local
Specialist
of the PO inventory
items: 7
Monitors the timeliness of Approver 6.12 Approver reviews the request.
the deliveries days; For MB
6.12.1 If disapproved, Approver rejects
B the PO to apply the stock-items:
corresponding rectification on 7 days; For
End the same PO. Then, go to PN TW stock-
6.10. Else, go to PN 6.13. items: 14
days; For
Procurement 6.13 Procurement Specialist prints the PO and indent items:
Specialist sends to the winning bidder and issues 7 days upon
NLB to the losing bidder, as appropriate. Customs
Supplier Clearance;
6.14 Supplier acknowledges the PO and abides
For minor
by the Terms and Conditions printed at
the back of the PO. services and
special
6.15 Procurement Specialist monitors the projects: as
Procurement
timeliness of the delivery of goods and per promised
Specialist
payment to suppliers. date (for
End of Process. 6.14-6.15)