Finance-Part 5

Question 1

Procurement and Accounts Payable cycle.

Answer 1

1. Requisition request: Product/Service is required
2. PO Creation/Approval: Creation/Validation/Dispatch
3. Goods & Service Reception
4. Vendor Invoice Processing (i.e. AP – Accounts Payable)

Question 2

Vendor Management

Answer 2

• Supply SLB with what we need when we need it to avoid down time
• All districts can use a limited number of suppliers for leverage pricing
• Vendor management is being able to determine which vendors we use, and how much we spend with each vendor.

Question 3

Procurement Cycle

Answer 3

1. Requirement to Purchase
2. Sourcing - Bid/Quote
3. Purchase Order
4. Goods Reception
5. Payment

Question 4

What are PO’s?

Answer 4

Purchase orders: Requisition form for purchasing items or services.

Question 5

What is SWPS?

Answer 5

products and services, where we can find the catalogs, and prices agreed by suppliers.

Question 6

Manual PO’s

Answer 6

No manual POs, we use P-card if we cannot create a PO.

Question 7

Legal Customs requirements

Answer 7

• All shipments between countries must go through SLB Customs department
• Tariffs & Taxes
• Bans on some goods

Question 8

Temporary import vs. nationalization

Answer 8

Temporary: Loan out of goods to be returned to original country of origin

Nationalization: Transfer of goods to remain in destination country

Question 9

Rationale behind customs strategy

Answer 9

• Proper classification
• Valuation
• Country of Origin (Manufacture)
• Record Keeping
• Temporary imports: Require adherence to strict rules regarding product eligibility and post import movement