Sop Finance

A. INTRODUCTION A.1.
OBJECTIVES This guidelines is to improve the internal financial process in

Baramutiara Prima( BMP) in order to o To manage payment cycle time o To enhance control on our
invoice management o To maintain mutual benefit relationship with vendors A.2. TERMINOLOGY
Requester means all units in BMP who initiate the invoice payment instruction Expense means: all
claims which will be charged to cost center. "BMP Payment Instruction Form" or BPIF is the new form
proposed to be used as the request from the requester. "PR Fund Transfer Request" or PFTR is: the
form proposed to be used every Requester need partial fund which related to 1(one approved
PR"Monitoring Fund Transferred" or MFT is: Excel file that shows movement/realization of fund
transferred related to certain PR which asked using PFTR Finance is part of Finance and accounting
which receive BPIF and invoice from Requester and perform verification and distribute for payment
approvals. SLA Service Level Agreement is the agreed maximum period to perform the process see
Process, Roles and Responsibilities in section B) Budget tracking is: the tracking of the actual numbers
vs budget approved for some GL accounts
Weekly Invoice Payment Status is: file sent by Finance to all Requester which informed list of payment
based on the BPIF submitted Umbrella Purchase Requisition is: Purchase Requisition which including
several jobs that each job has different budget needed that result to significant amount. It is usually
used for project with long term period but for the same purposes.
Supporting documents are: Original invoice and tax invoice Memo Approval; Letter infoming any
vendor data change(if available), i.e. bank account number, bank account name, etc. Supporting
calculation and details,especially for operation expense, outsourcing, "Berita Acara"! "Surat Serah
Terima Pekerjaan" for project etc Updated budget tracking(based on latest data) Delivery Order(DOy
Surat Jalan" for goods purchased; Purchase Order(PO/ Purchase Requisition(PR) for goods purchased;
Related to Umbrella PR-> request from Requester for partial fund transfer which has been approved
based on Matrix of Authorization Limit and also monitoring of fund that has been transfer to Requster.
Valid contract/ agrement("Nota Kesepakatan, Perjanjan Keja Sama", etc) for Esp. for mining
contractor: BAP/ Joint Survey(Overburden removal, Coal getting, contractual expense heavy
equipment, etc) For travelling reimbursement and cash advance settlement Employee Reimbursement
Form Original/ copy invoice from third party vendor Tax invoice(if any) - For cash advance: Travel
Authorization Form For training Training Request Form For field break allowance( Operation) Leave
Request Form For entertainment expense Nominative List
Invoice management process consists of the following stages: Stage 1: Invoice Payment Instruction
Upon receiving invoices from vendors, the requester submit BPIF( Appendix A) to Finance for
verification. Below is the roles and responsibilities of requester
INVOICE MANAGEMENT GUIDELINES Requester's Roles and Responsibilities: a) Check the accuracy of
invoices(calculation) b) Check the completeness of the supporting documents c) Check the vaidity of
the original invoices and tax invoices which are signed off by d) Check whether the expenses are as per
agreed contract( for contractual expenses) Manage vendors vendor. To set minimum amount ol claim(
Rp. 500,000) for efficiency. To explain our term of payment( 30 CD starting from the completed
document received by Requester while for medical expense, personal reimbursement and ticket
expense is 14 CD) n is expected that vendor decides proper cut off to allow enough time for checking
and processing. To inform vendor that the payment is done every Tuesday. To update vendors on
periodic bosis( using Weekly Invoice Payment Status) . To update contract agreement with the latest
valid commitment and inform al. To infom vendor that the ten of payment for invoice which claimed
more than 2. To discuss tax matters with vendors and tax BMP and help vendors to reconcile the
paynent received vs invoices outstanding nelated paries(including Finance and Accounting Department)
months from the trarsaction date is 2 months(60 days), ) Prepare BPIF Date and BPIF No. Payee name,
invoice number Invoice amount, . . Tax amount e Amount to be paid, Account name, Bank name and
account number Description/ purpose of the expense Location, . Department, . GL NolAccount.
Booked debit account. Approval distnbuton ist. Budget tracking, for CAPEX is separated using template
Appendix B) To have proper approvial from respective department Both requester and the respective
department are responsiblel accountable for all invoices requested.
INVOICE MANAGEMENT GUIDELINES Some items need to be highlighted 1. The invoices for monthly
routine expense in Head Office such as- Electricity expense, Water expense, - Rental expense-
Telephone charges Fotocopy expense- Kitchen expense Employee monthly parking expense, etc Are
claimed from General Aflairs which under department of External Relation and Human Resources(
ER&HR), 2 ER&HR venity the invoices related to hotel, accommodation and ticket expense and prepare
BPIF ER&HR first before goes to Finance account and budget tracking), then will process by Finance
reimbursement form( using the updated one) must be verified by break, travel advances, training
must bo verified first by ER&HR( for the GL Employee Reimbursement Form. Leave Request Form( for
Fiekd Break). Training Request Form are used the updated version Stago 2: Invoice Verification Invoice
verification are checking performed by Finance who verify the valid transactions claims and budget
usage from each units Finance's Roles and Responsibilities: a) To ensure the accuracy, completeness
and validity of the invoices(for the detail description for the accuracy, completeness and validity
invoice, please see point 1 above) b) To ensure that the expenses are as agreed contract( for
contractual expenses) c) To ensure the proper approval from respective department d) Check the
budget realization tracking e) Review the item in BPIF and other form Stage 3: Approval Distribution
and Payment to Vendor Finance is responsible for the approval distribution Payment is done once a
week( every Tuesday) and after that Finance will send Weekly Invoice Payment Status to all related
parties( see Appendix
Approval distribution matrix See Appendix G- Delegation of Authority C. EXCEPTION C.1. Some
transactions don't need to attached the BPIF: 1. Travelling reimbursement and cash advance
settlement 2. Cash advance 3. Training request 4. Field break allowance(Operation) 5. Upfront cash
payment request for approved PR Since there is separated form for transaction point 1-4(see Appendix
C, D, E) C.2. Upfront cash payment request for approved PR For this purpose, the Requester needs
upfront fund from Finance to execute the project services PR with not significant amount Requester
send the approved PR to Finance and inform when the funds should be transferred Umbrella PR or PR
with significant amount The Requester need to prepare below documents which will be verified by
Finance PFTR( see Appendix H) for each request that approved based on authorization matrix and
attached with the approved PR b MFT(see Appendix I) in excel file which represents the movement/
realization of fund transferred to show the balance of fund when the Requester submit next PFTR Every
request of upfront cash must attach with MFT to show the previous fund usage and balance before
asking for the new additional fund Every end of PR project, the Requester need to submit final MFT and
PR settlement send back the remaining outstanding balance to Finance C.3. For CAPEX budget tracking,
each department must submit monthly tracking for reconciliation with Accounting numbers( SLA:3
business days after closing month)

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A. INTRODUCTION A.1.

OBJECTIVES This guidelines is to improve the internal financial process in

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