SOP4 - Purchase Orders

BUKHATIR GROUP

Strength through Diversity

Group Policy and Procedure

Group Supply Chain (GSC)

Purchase Orders

Issue, Amendments, GRN & Three-Way Match

Document No: P-POL-005

Copyright © 2026 Bukhatir Group

Revision Control

This document is issued under the authority of Bukhatir Group and applies when carrying out the activities described. Revisions may be issued as necessary under the authority of the Group Head of Procurement. Revision history is recorded below with every revised policy.

Revision History

Revision Sign-Off

Distribution List

1. Purpose & Objective

This SOP defines the process for issuing, amending and closing Purchase Orders (POs) in the Bukhatir Group Oracle system. Standard Terms and Conditions (T&Cs) are auto-selected within Oracle when raising a PO and do not require manual selection.

2. Scope

Applies to all POs raised by the Group. The PO is the formal, auditable instrument authorising a supplier to deliver goods or services.

3. Change-Order Control

4. Goods Receipt Note (GRN) & Three-Way Match

Payment shall only be released after a mandatory, system-enforced three-way match of PO, GRN and Invoice:

1. PO: raised, approved and dispatched to the supplier via Oracle.

2. GRN: recorded in Oracle upon physical receipt, confirming quantity, quality and condition.

3. Invoice: received, matched against PO line items and GRN quantities.

Any mismatch shall hold payment until investigated and resolved. Tolerances (e.g. ±2% value, ±5% quantity) are defined in the Oracle configuration.

5. Split-PO Prohibition

6. Detailed Procedure

4. Upon award, BU Procurement raises the PO in Oracle (T&Cs are auto-applied by the system).

5. The PO is routed for approval per DOA within Oracle.

6. Approved POs are issued to the supplier.

Input Tax Credit (ITC) Compliance — FTA Decision No. 13 of 2026

Effective 1 October 2026, each Purchase Order issued must comply with the supply verification requirements under FTA Decision No. 13 of 2026 and P-POL-032.

• Before issuing a PO, verify that the supplier has a valid ITC Supplier Verification (Form F-ITC-01) on file, renewed within the past 12 months.

• For each PO, complete the Supply ITC Verification Checklist (Form F-ITC-02) to confirm the supply meets general assessment, payment conditions, and supply circumstance requirements.

• POs must specify electronic payment as the default method. Cash payment is permitted only with documented commercial justification and within applicable tax thresholds.

• Verify that the goods or services ordered fall within the supplier's ordinary activity and commercial license scope.

• Where the supplier acts as an intermediary, ensure the PO documents the commercial justification for the intermediary's role.

Reference Forms

Form F-PO-01 — Purchase Order Amendment Form

Form F-GRN-01 — Goods Received Note (GRN)

7. On delivery, the Receiver records the GRN in Oracle.

8. Supplier submits the invoice; Oracle performs the three-way match.

9. Any amendments require a formal PO change order through the same approval chain.

• Form F-ITC-01 — Supplier ITC Verification Checklist

• Form F-ITC-02 — Supply ITC Verification Checklist

7. Flowchart

Figure 7: Purchase Order Workflow

8. Definitions & Acronyms