Material

1. Business Requirement Presently in ONGC, the receipt and refund and forfeit of Tender Fee and EMD and Security Deposit is entered in a register manually. This information is maintained with details like tender number, vendor name, date of receipt, amount received and mode of payment etc. These are ONGC specific transactions and there is no standard process in SAP to maintain and track the above activities and hence needs to be developed in system. The objective of this development is to maintain all the above activities in SAP so that receipt/refund/forfeit activities can be tracked and action regarding expiring bank guarantees can be initiated. This program will be further extended to FI for posting the respective transactions of Incoming/ Outgoing payment/ Bank guarantee. Based on the information captured by MM, FI documents will be parked by MM for receipt and refund of EMD/SD/Tender fee. These documents will physically be moved to finance and will be posted by “Cash & Bank Section”. In case of Bank guarantees, noted items are posted by MM. 2. Process details There are three major areas of transactions vis-à-vis Tender Fee, Earnest Money Deposits and Security Deposit. First two areas “TF” & “EMD” are performed with reference to Tender (Request for Quotation) and last one “SD” is performed with reference to either Supply order or Contract. Followings are details of transactions performed in these areas - Tender Fee – Tender Fee is received by tender selling agency at the time of tender selling. This transaction is required to be recorded in system, so that these collected tender fee instruments will be submitted to Finance for encashment. Features of Tender Fee – • Receipt of Tender Fee • Change in receipt • Delete Tender Fee documents • Refund Tender Fee • Display of Tender Fee receipt / refund • Parking of document for FI posting for Receipt and Refund • Instrument Types used are – Banker’s Cheque, Casher’s Cheque, Demand Draft, Indian Postal Order • Tender Fee is only collected for Tender (Request for Quotation) Earnest Money Deposit Earnest Money Deposit is received by Dealing Officer at the time of tender opening. This transaction is required to be recorded in system, so that these collected EMD instruments will be submitted to Finance for encashment / tracking & safe custody. Features of EMD – • EMD Receipts • Change in receipt • Delete EMD documents • Refund EMD • Forfeit of EMD • Conversion of EMD to SD • Display of EMD receipts / refund / Forfeit • Parking of Document for Receipts • Instrument Types used are – Banker’s Cheque, Casher’s Cheque, Demand Draft, Bank Guarantee , Letter of Credit • EMD is collected only for Tender (Request for Quotation) Security Deposit Security Deposit is received by Dealing Officer at the time of placing supply order. This transaction is required to be recorded in system, so that these collected SD instruments will be submitted to Finance for encashment / tracking & safe custody Features of SD – • SD Receipts • Change in receipt • Delete SD documents • Refund SD • Forfeit of SD • Display of SD receipts • Parking of Document Receipts • Conversion of EMD to SD • Instrument Types used are – Banker’s Cheque, Casher’s Cheque, Demand Draft & Bank Guarantee • SD is collected only for PO and Contract 3. Instrument Features • Demand Draft (DD) - Received Demand Draft will be submitted (documents will be parked) to Finance for encashment. FI will post the document after encashment / at the time of encashment. Expiry date / Validity tracking of DD are required along with details of Bank. • Indian Postal Order (IPO) – Received IPO will be submitted to Finance for encashment. FI will Park & Post the document at the time of encashment. Expiry date / Validity tracking of IPO are required along with details. • Banker’s Cheque (BCH)/ Cashier’s Cheque (CCH) – Received BCH / CCH will be submitted (documents will be parked) to Finance for encashment. FI will post the document after encashment / at the time of encashment. Expiry date / Validity tracking of BCH / CCH are required along with details of Bank. • Bank Guarantee (BG) –After receiving BG, Purchase Dept will obtain BG confirmation from Bank. After receiving positive confirmation, the same will be submitted to Finance Dept for safe custody and tracking. Further, for any changes in BG, Purchasing dept will submit “Request for Amendment” to Supplier / Bank. After getting clearance of amendment, the same will be updated in system. All the amendments are required to be tracked. BGs can be invoked by FI as per business need (after request from Buyer) • Letter of Credit (LC) – Received Letter of Credits will be submitted to Finance Dept for safe custody and tracking. LCs can be invoked by FI as per business need (after request from Buyer)