vendor meet - 8th feb 2010 : piping centre, chennai
TRANSCRIPT
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
OBJECTIVEOBJECTIVEBHEL has grown very large and is committed to fulfill delivery commitments to Various Projects on a fast track.Turn Over increased by 85% from 2007-2008 to 2009-2010, and expected grow in similar scale.
This meet is planned to appreciate the preparedness required by the partnering Vendors, understand the need of delivering faster for meeting various project schedules.
Customers expect short time deliveries apart from meeting Quality requirements.
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
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2007-08 2008-09 2009-10B 2010-11P 2011-12 P
Physical Turnover Growth
MTs
YEAR
PHYSICAL TURNOVER GROWTH
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
YEAR
FINANCIAL TURNOVER GROWTH
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
PURCHASE POLICYPURCHASE POLICY
BHEL is Governed by Very strong Purchase Policy, and Vigilance Guidelines paving way for -
Transparency
Equal Opportunity for participation
Efficient Vendor management
Defined Rules for Delegation of Power
Classification of Purchases and Rules to be followed
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
Purchase ProcessPurchase ProcessIndent
Enquiry
Clarifications and Confirmations - MOU
Opening Technical BID
Clarifications and confirmations
Opening of Price Bid Reverse Auction
Negotiation
OrderingVendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
INITIATIVESINITIATIVESIn order to meet the Deliveries to More Projects in a short time, BHEL has revamped and introduced new strategies in Purchase processes
Rate contracts for Majority of Items-e.g. Fittings, Cut To size items, Tie rods, Insulation Clamps, Control Valves, Ball Valves, Thermowells etc., introduced
Action taken for Stocking of Items consumed in large quantum - e.g. Hanger Forgings
Bunching and BULK ordering of systems -e.g. PRDS, Dosing Pump, Control Valves
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
INITIATIVESINITIATIVESBuying finished Products instead of Raw materials - e.g. Welded Fittings, Adoptors, Pipe Cap with Drain Stub, IBR Piping, LP Piping etc.
Standardizing items - e.g. Fully threaded Tie Rods with 3000 mm long, Insulation Clamps and Lugs, Pipe Cap with drain stub etc., Stubs and components
MOU with Vendors for Techno Commercial conditions - for Fittings, Pipes, Insulation, Aluminium Sheets to reduce cycle timeVendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
INITIATIVESINITIATIVES
Pricing with FOR destination to Project sites saving the delays due to Transporters.
Price finalization by Reverse Auction - eliminating negotiation Time and resulting in reduction of time for releasing Purchase orders.
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
VENDOR EMPANELMENTVENDOR EMPANELMENT
Requirements of additional / New vendors is hosted in web site
Applications are received and scrutinized
Evaluation team visits vendor works
After evaluation Vendors meeting the guide lines only will be empanelled.
After successful completion of trial order Vendor is taken to Permanent status
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
Vendor Management SystemVendor Management System
To achieve the desired speed and fulfill the Delivery commitments, BHEL is equipped with a Strong Vendor Management System
The Objectives are to have :
A wide base of Capable Vendors
Transparency
Healthy Competition
Sustained Performance
Timely delivery to sitesVendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
VENDOR PERFORMANCEVENDOR PERFORMANCE
Only vendors meeting the Delivery requirements and Good perfomance can be considered for sending enquiry.
Non-responding vendors or Vendors not agreeable to BHEL requirements need not be considered.
Vendors quoting consistently very high prices also need not be considered for sending enquiry.Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
Vendor Management SystemVendor Management System
Vendor Directory (PMD) is a dynamic one
Vendors are empanelled by an approved sound procedure for enlisting or delisting
Vendors are evaluated in a systematic way
Vendor Performance is monitored for the sustained Quality and Delivery
Sending of enquiries can be limited to only Performing Vendors
Non-responding Vendors for three or more enquiries can be put on Hold or delisted
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
Specific requirements for Foreign Vendors
Specific requirements for Foreign Vendors
Documents , Invoice, BL, Packing List, Test Certificates shall be submitted as a full set.
Advance scanned copy of the same by Email to be furnished for preparation before receiving the items avoiding delay - GR, Costing, Import License
Documents avoiding following discrepancies:
- Incorrect P.O. and Sl.No.
- Incorrect material specification, Melt No.
- Non compliance to drawing : e.g. Stub not welded whereas drawing calls for
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
Specific requirements for Foreign VendorsSpecific requirements for Foreign Vendors
To meet project schedules shorter deliveries are required (3 to 4 months)
Develop capacity to source raw materials to meet the above requirement
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
SUBMISSION OF OFFERSSUBMISSION OF OFFERS
Offers shall be made in accordance with Enquiry in two parts wherever asked for.
Confirmation shall be furnished for acceptance of All the conditions as per enquiry like Delivery time, payment terms, submission of Bank Guarantee etc. very clearly.
Offers shall be submitted on time as per Tender.
Price details shall be indicated legibly without any overwriting etc.
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
CHECK LIST FOR INDIGENOUS RATE CONTRACTSCHECK LIST FOR INDIGENOUS RATE CONTRACTS
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
CHECK LIST FOR FOREIGN RATE CONTRACTSCHECK LIST FOR FOREIGN RATE CONTRACTS
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
CHECK LIST FOR FOREIGN RATE CONTRACTSCHECK LIST FOR FOREIGN RATE CONTRACTS
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
PROBLEMS NOTICED IN BIDS SUBMITTED PROBLEMS NOTICED IN BIDS SUBMITTED
Non submission of signed checklist of acceptance of the Technical conditions - Deviating dimensions, Material Grade, Size
Technical deviations
Deviating delivery requirement: e.g. indicating 3-6 months against 3 months called for
Non acceptance of payment terms.
Non acceptance for Reverse Auction
Non confirmation of acceptance of BHEL Quality requirements
Non enclosure of Un-priced price formats/Check list
Non enclosure of Quality plans and data sheetsVendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
PURCHASE ORDERPURCHASE ORDER
Acknowledge PO immediately on receipt and understand the requirements thoroughly. Any discrepancy or issues to be taken up immediately.
Submit Schedule for completion of the P.O. – This is required for monitoring
Before dispatch all amendments are to be obtained
Ensure meeting Drawing and technical requirements
Carry out inspection as per the TDC / Quality Plans indicated in PO.
Get POs validated by verifying with latest amendments through VISVendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
Technical Spec accepted but deviation sought after ordering: e.g. Painting Scheme
Delivery Date not maintained – Extension sought
Production schedule not furnished and no commitement made for delivery
Inspection Calls not raised
Not attending review meetings
PURCHASE ORDERPURCHASE ORDER
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
PACKING, DESPATCH AND DOCUMENTATION
PACKING, DESPATCH AND DOCUMENTATION
Follow despatch instructions clearly.
Proper Cleaning, Painting and Identification marking by Punching and Stenciling Melt No., Work order and DU clearly.
Pack neatly in Boxes / Crates with Identification marks and melt No. visible clearly from outside the Box / Crate.
Prepare Legible and Clear Packing list with details of P.O. and Sl.No. with DU No., Specification, Melt No. and firmly attach a copy on the outside of the packing in a water proof cover
Follow-up despatches to ensure delivery to correct sites
Submit Despatch documents immediately – Invoice, Excise Gate Pass, acknowledged packing List and LR
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
PACKING, DESPATCH AND DOCUMENTATION
PACKING, DESPATCH AND DOCUMENTATION
Feed Pump commissioning support
Despatching Insulation requirements of multiple customers leading to MDCC apportionment problems
Wrong LRs – e.g., Despatching and Addressing LR as self
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
POST COMPLETION ACTIVITYPOST COMPLETION ACTIVITY
Attending to site complaints – Control valve damage / malfunction
Extending Timely commissioning Support--- Boiler feed Pumps
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
VENDOR INFORMATION SYSTEMVENDOR INFORMATION SYSTEM
Using VISTRY Web Site DAILY will enable -
Updated P.O. date can be seen and downloaded
Commitment can be posted
Dispatch Challan can be generated resulting in ERROR FREE DOCUMENTATION
Despatch Details will get uploaded automatically
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
EXPECTATIONSEXPECTATIONS
Short Delivery time commensurating with present site requirements
Bulk Production
Direct Documents to save time
Correct Test Certificates
Progress reporting
Good Product Quality
Competitive Price
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
QUALITY ASPECTS IN VENDOR MANAGEMENTQUALITY ASPECTS IN VENDOR MANAGEMENT
VENDORS ARE REGISTERED &
BROUGHT INTO VENDOR DIRECTORY
WITH DUE WEIGHTAGE TO QUALITY.
CONTINUANCE IN VENDOR DIRECTORY
IS BASED ON VENDOR RATING – GOOD
SCORE ON QUALITY ASPECTS VITAL
FOR CONTINUANCE.
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
GENERAL REQUIREMENTSGENERAL REQUIREMENTSCompliance to tender specification at initial bid.
No Undisclosed deviation during technical bid.
Fulfilling QP/TDG/TDC requirements and Inspection stages .
Coordination for CUSTOMER/NTPC/TPIA, for inspection.
Meticulous compliance to timely & error-free Call letters
Obtaining MDCCs /Customer clearances.
MDCC to be obtained cust-number-wise
Discrepancy free test Certificates in time.
Separate NDT test reports required . Statement / Declaration of conformity w.r.t, NDT is not acceptable.
Melt Number correlation – a must.
Forwarding TCs to BHEL well in-advance of material receipt for quick processing.
Type tests to be validated once in 5 years.Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
SPECIFIC ISSUES SPECIFIC ISSUES
COLOUR CODING TO BE METICULOUSLY FOLLOWED
PMI AT RECEIPT & DISPATCH STAGE
PUNCHING OF PGMA, DU,WO AT EXIT STAGE DURING PMI TO AVOID MIXUP
NDT CERTIFICATES TO BE SEPERATELY ISSUED (MERE STATEMENT OF CONFORMITY NOT ACCEPTABLE)
INDIVDUAL IBR TC FOR EACH PO SL NO REQUIRED (CLUBBING OF VARIOUS ITEMS, & ISSUANCE OF COMMON IBR TC TO BE AVOIDED)
BRANCH WELDING FOR TEE REALIZATION – NOT ACCEPTABLE
REQUIREMENT MAINLY SEAMLESS . WELDED FITTING ONLY IF SPECIFICALLY CALLED FOR.
BURST TEST - REPORT A MUST FOR QUALIFICATION
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
SPECIFIC ISSUESSPECIFIC ISSUES
RAW MATERIAL TO BE SOURCED FROM APPROVED VENDOR LIST ONLY. (Eg of problem faced: SILCOTUB,PETROTUB)
PHYSICAL CORRELATION OF MELT NO & TC TO BE ENSURED.
CHECK TEST ON SAMPLE TO BE DONE. SAMPLE TO BE AUTHENTICATED BY BHEL INSPECTION PERSONNEL.
CALL RAISAL FOR NTPC & OBTAINING MDCC FOR STAGES AND FINAL , IN LINE WITH QP – VENDOR’S RESPONSIBILTY.
FITTINGS IF SOURCED OUT ENSURE TCs AS PER TDC/QP
DUE CARE FOR PAINTING & IDENTIFICATION
FOR IBR SYSTEM, WHEREVER THICK>12.5MM, 100% UT WITH 5% NOTCH REQUIRED. Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
K Values – once in a year per type (sample authenticated by customer & BHEL)
Mesh Dimension should be as per Specification (Spec is 0.71 and offered is 0.56)
MDCC to be obtained cust no wise with correct weight.
SPECIFIC ISSUESSPECIFIC ISSUES
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
SPECIFIC ISSUESSPECIFIC ISSUES
Type test if already done to be enclosed with Bid ( eg : POD)
Any internal document referred in QP to be furnished.
Actuator Cyclic Tests Details Not Provided
Actuator inspection by Customer at Sub Vendor Works Not taken care
Painting as per spec not complied with
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
Non submission of Documents on Time
Documents with incomplete details and not meeting specification
Pickling and Passivation
Dynamic Balancing of Agitator not taken care
Painting not meeting customer specification
Incomplete Inspection records like non submission of NDT reports
WPS and PQR not submitted with QP
SPECIFIC ISSUESSPECIFIC ISSUES
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
Compliance to tender at initial bid itself
Material TCs ,HT Charts, Ref Doc not enclosed
When weld is involved QP to include WPS, PQR & NDE requirements.
DPT on Machined surface not complied with
CV Test report not provided
Hydro Test not offered for witness as per QP
QP to cover sub delivered actuators also.
Painting not as per Customer specification
SPECIFIC ISSUESSPECIFIC ISSUES
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
Material TCs not provided
Witnessing of Hydro Test not offered
RT of Castings
Dynamic Balancing
NDT Procedures
Inspection of Sub Vendor items
Painting
Noise Level
Performance testing for all points
SPECIFIC ISSUESSPECIFIC ISSUES
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
Standard Meter Run shall be 2.85 M for OD >150mm. Else 1.35 M.
Sizing of Condensing pot as per ISO. Checks for Condensing pot to be included in QP
Calibration Test results to include Flow equation and report deviation from Theoretical values.
WPS & PQR to be made available to visiting Inspector
For P91 - Heat treatment facility to be put up by vendor
SPECIFIC ISSUESSPECIFIC ISSUES
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
Only SLSR and Temp ratings as per specn only
FM & BASEEFA TR from country of origin required. TR to include specifically all temperature ratings as called for.
Separate QP for PDP, Power Transformer and Cables.
Accessories like Connectors, RTDs etc to be covered in main QP. Enclosure test to be given as type test.
Controller of Explosives /India, TC for offered model as type test report.
All type tests to be validated once in 5 years.
SPECIFIC ISSUESSPECIFIC ISSUES
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
IBR certificates for Tubes, Fittings & Valve inside Rack.
Layout of instruments within rack
a) Ease of operation & Maintenance
b) Aesthetics
Makes of items as per approved list.
SPECIFIC ISSUESSPECIFIC ISSUES
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
GENERAL INFORMATIONGENERAL INFORMATION
YEAR COMPLETED WT
COMPLETED
DUS
2007-08 13397 30632
2008-09 15996 22067
YEAR TARGET COMPLETED WT
2009-10 14000 7282
CURRENT STATUS
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
POINTS FOR DISCUSSIONPOINTS FOR DISCUSSION
1) Purchase Order
2) Submission of Bills
3) Shipping
4) General Points
1) Purchase Order
2) Submission of Bills
3) Shipping
4) General PointsVendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
PURCHASE ORDERPURCHASE ORDER
To ensure / confirm the Rate indicated against each PO serial number is as per Rate Contract.
To ensure that Amendments, if any are obtained before despatch.
Painting Scheme should be as per relevant QP only.
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
SUBMISSION OF BILLSSUBMISSION OF BILLS
To raise the bills as per PO and GMS
after completion of PO with relevant
documents like LR copy, Packing list,
Inspection Report, Delivery Challan,
etc. in 3 sets (1 set original and 2
set copies).
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
SHIPPINGSHIPPING
All markings shall be done with Hard Punching and Stenciling by Paint legibly. Permanent marker pen should not be used.
All small bore pipes (up to NB 50) shall be bundled (WO, DU wise) for easy unloading and identification of items.
Dus of each WO be separated with a wooden separator for easy identification and unloading. This will avoid holding of vehicle at shipping.
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
All small components be packed in wooden boxes (WO wise).
Packing List should be kept inside and also out side of each box.
To ensure CHP / COC are obtained for NTPC items before despatch.
SHIPPINGSHIPPING
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
To ensure the quantities as per the DCs are loaded before the vehicle leaves vendor works.
The representatives shall leave shipping only after identifying all the DUs unloaded and DC acknowledgement.
SHIPPINGSHIPPING
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
The following feedbacks / observation of
shipping should be taken care.
a. WO and project name mismatch (written as well as punched details).
b. Details like length and number of pieces
relating to particular DU shall be clearly mentioned on the job.
c. DC’s to reflect actual unit and Qty as PO.
SHIPPINGSHIPPING
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
GENERAL POINTSGENERAL POINTS
Vendor performance will be evaluated based on the delivery, quality, response, documentation, etc. and the loading will be based performance only.
Review meeting on production commitments will be conducted during the first week of every month.
Separate LRs should be obtained for each WO.
For despatches to Trichy Shipping, IR copy along with other despatch documents should be sent along with Transporter to avoid delay in unloading .
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
GENERAL POINTSGENERAL POINTS
For NTPC projects ,MDCC should be obtained WO wise. We need - 2 sets of original MDCCs immediately after despatch.
For All Projects we need :
- Additional Copy of ED Gate Pass
- Additional Copy of LR (clear copy).
Proper link up of LR, ED Gate Pass and Packing Slip should be established.
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
GENERAL POINTSGENERAL POINTS
Inspection Call Request should be given one week in advance with details of items ready for inspection (Project, WO no., PO No., PGMA, Item description, Quantity, Weight, etc.).
Road Permit Form requirement should be furnished along with monthly despatch plan.
For each Road Permit, utilisation statement indicating Projects name, PO No., LR no., Name of Transporter, Excise Invoice no., etc should be furnished every month.
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
GENERAL POINTSGENERAL POINTS
Original IBR documents should be submitted for IBR items for processing Invoices.
To ensure scanned copy of despatch documents viz. LR, EDGP, Packing List, etc. are sent to BHEL immediately up on despatch.
At the end of every month, statement indicating PO / Project wise despatch details be provided for reconciliation.
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
SUBMISSION OF INVOICESSUBMISSION OF INVOICES
All the invoices should be routed through the Purchase Department and not be submitted directly to Finance.
All the required documents in accordance with PO should be enclosed with invoice and should come in a single set with covering letter.
Example, suppose the PO terms is: “Bills in triplicate with Excise invoice cum Delivery Challan and Inspection Report, Lorry Way Bill”, all the documents should be submitted as per the term.
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
There should be the “proper invoicing”
of supplies taking the following into consideration:
Payment TermsPO serial no.Input Tax implicationNo. of invoices to be submittedMaterial CodeQuantity and unit rateDate implication
INVOICINGINVOICING
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
PAYMENT TERMSPAYMENT TERMS
If the Payment term is 100% after the acceptance (DTS cases) by BHEL commercial engineer’s certificate is required.
If the term is 90% / 10% (DTS), separate invoices should be submitted; for 10% bills, certificate from the Commercial Engineer is required.
For 10% bills, the document date should be the date of certificate by the commercial engineer not the date of invoice.
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
INPUT TAX IMPLICATIONINPUT TAX IMPLICATION
EXCISE DUTY CENVATTABLE: Material delivered to stores, Trichy.NON CENVATTABLE: Material directly delivered to Site. (DTS) Export Incentives- Mega Power Project & Captive ConsumptionInvoicing with ED - (Reimbursement of Excise Duty)Invoicing without ED- (Terminal Excise Duty) Other than Incentives- Other than Mega Power Project and Captive consumptionCST: Inter State SaleIf delivered to Stores: Our company, as a registered dealer, will issue ‘C’ Forms each quarter on the basis of requisition from the supplier.If delivered Direct to Site: Same as above, but ‘E1’ Form is required from the suppliers against ‘C’ Form.
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
VAT: Intra State SaleVATTABLE: If delivered to Trichy Stores and sites of the registered states
Tamil Nadu VAT- Delivered to Trichy stores & sites in TamilNadu.Other state VAT- Delivered to the sites of Registered states which includes the following-
West Bengal TIN19675372040 Maharastra TIN27060300130V Andhra Pradesh TIN28061908732 Chattisgarh TIN22204202882 Punjab TIN3802058147 Madhya Pradesh TIN23573600001.
NON VATTABLE: If delivered to sites of non- registered states.
NOTES: The time limit for claiming VAT credit is end of Accounting year or 3 months from the date of invoice, whichever is later.
Hence the vattable invoices up to March of the previous year, should be submitted before March, so as to enable us to take credit for VAT, otherwise those amount will be recovered from the supplier.
INPUT TAX IMPLICATIONINPUT TAX IMPLICATION
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
No. of invoices to be submittedNo. of invoices to be submitted
Original for BuyerExtra Copy, if required or as per PO terms
Photocopy of the aboveFor instance, if the PO indicates, “Three copies of INVOICE with original signature to be submitted.”, the same should be submitted.
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
DATE IMPLICATIONDATE IMPLICATION
Invoice Date: Invoice Date should be mentioned correctly as it has direct impact on the tax rate.
LR No. and Date: LR no. and LR date must be mentioned in the invoices correctly, which will enable us to check the applicability of LD provision.
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
BANK GUARANTEEBANK GUARANTEE
All the Bank Guarantee should come through the Purchase department; not from the suppliers directly.
All the Bank Guarantees should be followed by the confirmation from the relevant bankers.
Requisition for getting back the expired Bank Guarantees should be given through Purchase department.
All the expired BG will be collected by the suppliers from the purchase department, not from finance.
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
CLAIMING FOR FREIGHTCLAIMING FOR FREIGHT
For the claiming of the freight ;the original money receipt should be enclosed with the invoice.
Freight bills should be invoiced in accordance with the rate contract and it should be duly certified by the authorized person in purchase.
Service Tax upon Freight will be paid only on the submission of proof of payment .
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
AMENDMENT AMENDMENT
The amendment for the PO
delivery date extension must
be reflected before the date
of processing bills.
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
FOREIGN VENDORSFOREIGN VENDORS
BG should be furnished by the vendors as per the format furnished by BHEL – Purchase before commencement of supplies.
LC’s opened based on the request of the vendors are not being utilised fully. Materials should be shipped before the shipment date.
Delivery date extension should be sought before commencement of despatches.
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai
FOREIGN VENDORSFOREIGN VENDORS
Supplies under different PO’s should not be clubbed and claimed in one single invoice.Original and copies of the invoice should be readable and clear. Documents should reach for our bankers for bankers atleast 7 days prior to the arrival of vessel at our port.
Vendor Meet - 8th Feb 2010 : Piping Centre, ChennaiVendor Meet - 8th Feb 2010 : Piping Centre, Chennai