requisition, purchase order and invoice management policy
TRANSCRIPT
Policy No.:
Requisition, Purchase Order and Invoice Management
Policy Directive
Version No.: V3.0 Approval date: 7/7/2021
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Contents 1. Policy Statement ................................................................................................................. 3
2. Roles and Responsibilities .................................................................................................. 3
2.1 Business units and health sites responsibilities: ....................................................... 3
2.1.1 Requisitioner ............................................................................................................. 3
2.1.2 Certifier/Reviewer ...................................................................................................... 4
2.1.3 Approver (Oracle and Basware) ............................................................................... 4
2.2 Suppliers ................................................................................................................... 5
2.3 Department for Premier and Cabinet, SSSA ............................................................ 5
2.4 Purchasing (PSCM) .................................................................................................. 5
3. Policy Requirements ........................................................................................................... 6
4. Detail ................................................................................................................................... 7
4.1 Non-Catalogue Requisition Management ................................................................. 7
4.2 Purchase Order Management ................................................................................... 7
4.3 Standing Purchase Orders ........................................................................................ 8
4.4 Invoice Management ................................................................................................. 8
4.5 Payment of Creditor’s Accounts ................................................................................ 9
4.5.1 Obligation to Make Payments on Time ..................................................................... 9
4.5.2 Advance Payments ................................................................................................. 10
4.6 Process for Urgent Invoice Payment Requests ...................................................... 10
4.7 Early Payment Discounts ........................................................................................ 10
4.8 Invoice Exceeds Purchase Order Value ................................................................. 10
4.9 Disputed Invoices .................................................................................................... 10
4.10 Retrospective Purchase Orders .............................................................................. 10
4.11 Low Value Purchases (<$2,200 GST inclusive) ..................................................... 11
4.11.1 Alternative Payment Methods ................................................................................. 11
4.12 Systems ................................................................................................................... 12
4.13 Approvals ................................................................................................................ 12
4.14 Exemption Scope .................................................................................................... 12
4.15 Exemption Process ................................................................................................. 13
5. Implementation & Monitoring ............................................................................................. 13
5.1 Reporting to the Department of Treasury and Finance .......................................... 13
6. National Safety and Quality Health Service Standards ..................................................... 13
7. Definitions .......................................................................................................................... 13
8. Associated Policy Directives / Policy Guidelines and Resources ..................................... 14
9. Appendix 1 – Approved Exemption List ............................................................................ 15
10. Document Ownership & History ........................................................................................ 16
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Requisition, Purchase Order and Invoice Management Policy Directive
1. Policy Statement This policy directive is to support consistent and appropriate practices and controls for the creation and processing of requisitions, purchase orders and payment of invoices relating to the purchase of goods and services. This policy directive applies to the use of the Oracle Corporate System (Oracle) and the SA Health Invoice Processing Solution (Basware). Application of the policy contributes to effective business management and compliance with the Public Finance and Audit Act 1987, Treasurer’s Instructions 18 (Procurement) and State Records Act 1997. This Policy supersedes all existing requisitioning and purchase order policies. This Policy excludes the purchase of goods/services using an SA Government purchase card. This Policy excludes non-invoice payments such as employee and non-employee reimbursements or refunds which are form-based approvals. Refer to the Department of Premier and Cabinet (DPC) Invoice Processing Quick Guide, issued by Shared Services.
2. Roles and Responsibilities
2.1 Business units and health sites responsibilities:
2.1.1 Requisitioner
The Requisitioner is a role within Oracle and is responsible for:
• Raising a requisition in Oracle with sufficient information, and with appropriate approvals to enable Procurement and Supply Chain Management (PSCM) to create a purchase order including attaching approved documentation or screen shots of PCMS approvals, and/or supplier quotes to the requisition.
• Choosing the correct method of purchasing the goods or services required, i.e. either internal catalogue, non-catalogue or external catalogue
• If completing a non-catalogue requisition, reviewing the Oracle catalogue to ensure the product being ordered is not listed.
• Ensuring the appropriate procurement process documentation has been completed (e.g. Simple Procurement Plan via the PCMS).
• Ensuring that if the non-catalogue requisition and subsequent purchase order (PO) relates to a contract, that the Procurement and Contract Management System (PCMS) contract record number (SAH reference) is noted on the PO to facilitate compliance with contracted terms and conditions, noting some agreements stipulate ‘pay on invoice’.
• Ensuring all additional charges for supply of goods/services are noted on the requisition (for example, freight, minimum invoice value charges).
• Monitoring open orders (including standing orders) to ensure they are followed up and closed in a timely manner. (Refer to the Managing Open Orders in Oracle – Quick Reference Guide)
• Ensuring the correct Purchasing Category is chosen that relates to the goods/services being purchased and the relevant Responsibility Index (RI) and
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General Ledger account code (Oracle Chart of Accounts) are used when creating a non-catalogue requisition.
• Receipting the goods/services in the Oracle system to demonstrate they have been delivered in accordance with the original order.
• Where purchasing without a purchase order, ensuring that it is in line with the approved Purchase Order Exemption List (refer Appendix 1) or where conditions described in Section 4.11 – Low Value Purchases are met.
• Ensuring any invoices sent with goods are forwarded to Shared Services SA for processing.
• Resolution of queries in a timely manner.
2.1.2 Certifier/Reviewer
The Certifier / Reviewer is a role within Basware and is responsible for:
• Checking that the details on the invoice match the data in Basware and processing in a timely manner to facilitate account payment on time.
• Ensuring appropriate procurement approvals were obtained prior to ordering when goods/services valued below $2,200 (GST inclusive) are being purchased without a purchase order.
• Confirming that the goods and/or services have been physically received and then receipted in Oracle.
• If the invoice is to be paid manually, ensure the correct coding is applied to the invoice including Responsibility Index and General Ledger codes (Oracle Chart of Accounts).
• For non-purchase order invoices, or invoices with a matching variance that require manual coding, ensure the correct coding (Responsibility Index and account number - Oracle Chart of Accounts) is applied to the invoice within the Basware coding grid.
• Resolving any Basware queries in a timely manner.
• Where invoices are received directly, immediately forward the invoice to Shared Services SA for processing.
• Correcting any purchase order mismatch or other non-compliance issues as advised by Shared Services SA. Where the invoice exceeds the tolerance level, certify and approve the variation in Basware (where appropriate).
2.1.3 Approver (Oracle and Basware)
The Approver (Oracle and Basware) is responsible for:
• Approving requisitions only once they have confirmed that adequate budget is available to pay for the goods and/or services about to be ordered
• Confirming the accuracy of the purchase details on the requisition or invoice.
• Approving requisitions, and invoices as per their delegated authority (refer to Section 4.13 Approvals).
• Managing approvals of invoices in a timely manner to facilitate account payment on time.
• Managing disputed invoices appropriately and ensuring they do not get treated as late payments.
• Confirming the code allocation aligns with the business unit budget allocation.
• Ensuring all policy requirements have been met. For example: o CE approval for consultancy/ contractor engagements. o Simple procurement requirements. o All Workforce Health and Safety requirements have been checked.
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2.2 Suppliers
Suppliers are responsible for:
• Providing reliable and accurate information on the goods/services.
• Notifying the contact listed on the purchase order of any identified discrepancy between the purchase order and what can be supplied prior to delivery.
• Delivering/performing the goods/services/works in accordance with the purchase order and associated terms and conditions provided.
• Issuing a tax compliant invoice which reflects the requirements of the purchase order, for example valid purchase order number and correct bill-to information.
2.3 Department for Premier and Cabinet, SSSA Responsibilities for the Department for Premier and Cabinet, SSSA are outlined in the Accounts Payable - Service Design and Operating Level Responsibilities and Accounts Payable - Procurement Systems Delivery - Service Design and Operating Level Responsibilities.
2.4 Purchasing (PSCM)
Purchasing (PSCM) are responsible for:
• Following up of open non-catalogue purchase orders with requisitioners and action as required.
• Closing those Purchase Orders that have been receipted in Oracle but not matched against the receipt for payment after 90 days.
• Reviewing requisitions submitted by Business Units in line with the following checks:
o Vendor is recorded in Oracle or if the Vendor is not in system then sending Vendor a New Vendor Request and managing creation of the new Vendor in Oracle.
o Authorised procurement plans and purchase recommendations are attached; and/or
▪ PCMS SAHXXXX-XXXX contract reference number is provided for requisitions raised for existing contracts; and/or
▪ PCMS SAHXXXX-XXXX contract reference number and screen shot of approvals page from PCMS is provided for requisitions raised for new contracts.
o Confirm that there is the approved briefing granting the authority to enter into a contract stored in PCMS or attached to the requisition for all executed agreements.
o Quote is attached if required. o Compliance with local sourcing requirements. o Review of pricing and sourcing improved quotes where opportunity
arises. o Review the catalogue for non-catalogue requests if it is suspected that
the item is a catalogued product.
• Creating purchase order in Oracle.
• Forwarding completed purchase order to vendor.
• Receiving and addressing first queries regarding a purchase order except for on-line stationery orders.
• Liaising with the requisitioner to resolve queries.
• Providing a report detailing goods receipted but not yet paid for at the conclusion of each financial year for inclusion in the financial statements.
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3. Policy Requirements All sites are required to use requisitions and purchase orders except if the item is listed in the approved Purchase Order Exemption List (refer Appendix 1) or where conditions described in Section 4.11 – Low Value Purchases are met. Requisitions and purchase orders must be created, managed and approved in Oracle. The use of requisitions and purchase orders ensures:
• Mutual and clear understanding between the transacting parties of the particulars of the goods/services ordered, cost, quantity, delivery instructions and terms and conditions of purchase and payment
• Effective financial and procurement authorisations
• Compliance with the Treasurer’s Instructions
• Compliance with procurement Policies, Guidelines and Fact Sheets
• Compliance with contractual terms and conditions
• Best practice procure to pay processes, incorporating continuous improvement to maximise efficiency and potential cost savings
• Prompt payment of supplier invoices and improved, collaborative supplier relationships
• Improved capability to accurately report SA Health’s financial position, including accrual and commitment information.
• The collection of information (such as purchasing trends) which allows SA Health to make better decisions through improved planning and budgeting, and the development of refined sourcing strategies for procurement activities.
• Reduction in the likelihood of inappropriate or fraudulent procurement activities taking place
• The variances are highlighted between the approved requisition for goods/services and what is invoiced by the supplier (for example price, product or quantity variances).
• Facilitate 3-way matching between purchase order, goods receipt note and invoice
Requisitions, purchase orders and invoices must only be approved by the appropriate delegate. They must only be approved if the associated procurement processes have been undertaken in compliance with SA Health procurement policies. The originator of the requisition cannot approve their own requisition. Purchases for similar goods or services should be aggregated in volumes that meet both immediate and future requirements and should occur at the most appropriate level of SA Health, for example at the business unit level or across multiple business units. This requires effective forward procurement planning to inform the aggregation process, reduce the time and effort in undertaking multiple procurements and in seeking multiple approvals. Forward planning also achieves financial savings by utilising greater economies of scale, for example, by purchasing six units in a single procurement rather than multiple purchases over a twelve month period. An aggregation strategy should also be considered where forward procurement planning has not been undertaken and where the total accumulated value of individual procurements undertaken over a period of time exceeds the individual approver’s delegated authority, indicating that additional approvals may be required. Nevertheless, in all cases, purchases are not to be split to circumvent (or be perceived to circumvent) procurement policy requirements, for example, in order to avoid obtaining a larger
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number of quotes from suppliers, undertaking an open invitation to supply process or seeking higher level procurement approvals.
4. Detail
4.1 Non-Catalogue Requisition Management
Requisitions must be created in Oracle. Oracle will then automatically progress the requisition through the approvals process to the appropriate delegate for approval within the system. The delegate must be satisfied that the relevant procurement and financial approvals have been obtained and that the goods and/or services have been budgeted and determined as fit for purpose before approving requisitions. Once approved, the requisition will progress to Purchasing. The requisition must be reviewed to confirm that the correct procurement process has been followed and there is evidence of the required procurement and financial approvals either by checking PCMS or viewing the attachments to the requisition. Only if the correct approvals have been obtained, can a requisition be converted into an Oracle purchase order and issued to the supplier. In instances of only a purchase order being issued rather than an executed agreement, the financial authority granting approval to enter into a contract is the act of the appropriate delegate approving the respective requisition in Oracle. Requisitions must be provided with a meaningful description and contain as much information as possible to enable Purchasing to source and the Supplier to deliver the required product. Oracle identifies mandatory information required on a requisition, which may vary depending on the type of requisition i.e. Catalogue, External Catalogue, Non-Catalogue. The Oracle Requisitioner User Guide on the Oracle Assist website provides detailed information on completing a requisition. Requisitions requiring further information or changes to be made will be returned to the requisitioner immediately by Purchasing to have the necessary changes made and the updated requisition will be required to be re-submitted.
4.2 Purchase Order Management
Purchase orders must be raised for the purchase of all goods and/or services except those listed within the Exemption List at Appendix 1 or where conditions as described in Section 4.11 – Low Value Purchases are met. Purchase orders may be required for approved exemptions and items described in section 4.11 at the request of the supplier or as a result of Local Health Network requirements. Purchase orders must be created in Oracle and provided to the supplier who will issue an invoice for the goods and/or services. Purchasing are responsible for creating and issuing purchase orders to suppliers only from an approved requisition, including the creation of purchase orders for progress payments under an existing contract, where required by the contract terms and conditions. Purchasing will follow up purchase orders un-receipted at the end of the month, one month in arrears. Purchase orders receipted that do not have an invoice matched and paid against the receipt will have the entry reversed and the purchase order closed after 90 days.
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4.3 Standing Purchase Orders
A Standing Order can be used where regular deliveries or regular payments will be made against it (for example, perishable food items, temporary staff services engagements or long term service contracts for equipment). A standing order can be structured as either a dollar value amount or a quantity of goods or services. Purchasing will review open Standing Orders at the end of each financial year. A standing order should not be used to circumvent the need to complete requisitions as required for goods and services.
4.4 Invoice Management
An invoice is a commercial document issued for payment by a Supplier for goods/services supplied against a purchase order and should contain:
• The words ‘Tax Invoice’
• A unique reference number
• Purchase order number (if relevant)
• The date the document is issued
• Identity and ABN of the seller
• Identity and ABN of the recipient
• Date the product and/or service was sent/delivered
• Description of the product and/or service
• Identification of what is a taxable supply
• Unit price and total amount charged
• GST payable
• Credit terms
• Payment terms (SA Government payment terms are 30 days from receipt of a correctly rendered invoice by the agency or Shared Services and not in dispute).
Further information on tax invoice requirements can be found in the SA Health Policy ‘GST and Business Transaction Guidance’. Suppliers are requested to send all invoices directly to Shared Services SA (SSSA) at [email protected]. SSSA will scan and compliance check the invoice prior to work-flowing it (within Basware) to the business unit for actioning if required. For purchase order related invoices, supplier to invoice in accordance with the “Bill To” information on the purchase order, quote the purchase order number prominently, and include SA Health’s contact officer on the invoice. For non-purchase order related invoices, supplier to ensure the invoice is addressed to the correct SA Health contact officer, and detail the trading entity, business unit and complete address. For example: Format Example Example Attention: SA Health Contract Officer Attention: Bill Smith Trading Entity Northern Adelaide Local Health Network Site Name and Business Unit Name Modbury Hospital – Radiology SSSA email or GPO Box Email: [email protected]
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Please note that iPharmacy invoices are not to be forwarded to SSSA either by the Supplier or SA Health staff. These invoices are processed outside of the Basware Invoice Management System, and are therefore required to be sent with the goods to the delivery location or as specified on the purchase order. Should a business unit receive an invoice direct from a supplier, the business unit, where possible, must identify if the invoice has been provided to SSSA for processing. If the invoice has not, it must be forwarded to SSSA in pdf format immediately ([email protected]). When emailing invoices:
• Scan in black and white to reduce file size
• Total size of the email should not exceed 20MB in size
• One (1) invoice per attachment
• Ensure the invoice to be paid is the first page of the attachment
• No more than five (5) attachments per email. At the time the goods and/or services are delivered/rendered, the goods and/or services must be receipted by the requisitioner in Oracle. SSSA will then match the invoice to the receipt, and the invoice will be released for payment. For purchase order exempt invoices the certification and approval process is managed electronically through Basware. Short payment of an invoice is not permitted. If an invoice is issued in error, the requisitioner must contact the supplier for a credit note/new invoice. Credit notes received from a supplier must be forwarded to SSSA for processing via email to [email protected].
4.5 Payment of Creditor’s Accounts
All staff involved with the payment of invoices must comply with the SA Health Payment of Creditor's Accounts Policy Directive.
4.5.1 Obligation to Make Payments on Time
SA Health must comply with Treasurer’s Instruction 11 – Payment of Creditor’s Accounts (TI 11). This means paying accounts on or before time. That is, generally within 30 calendar days of receipt by SA Health unless there are provisions within contracts that state otherwise. If undisputed accounts are not paid on or before time an interest penalty charge may be payable to the respective supplier. This is subject to certain criteria. The main criteria for determining whether interest is paid include that the overdue invoice:
• has a value of $1 million (GST exclusive) or less
• was issued by a business which is incorporated under the Corporations Act 2001 (Cwth) or an individual whose principal place of residence is situated in Australia
• is correctly rendered (e.g. GST compliant, appropriately addressed, etc.) and is not disputed by SA Health, and
• the amount of interest to be paid is $10 or more. Interest payments on applicable overdue accounts will be processed automatically by SSSA and the Remittance Advice will show the interest paid as a separate line item. The interest charge is passed on to the business unit.
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For comprehensive information regarding SA Health’s responsibilities under the legislation, including Frequently Asked Questions, refer to the My Invoice website and Treasurer’s Instruction 11 – Payment of Creditor’s Accounts.
4.5.2 Advance Payments
Payments must not be made in advance for goods not yet received or services not yet rendered unless certain criteria is met in accordance with Treasurer’s Instruction 11 – Payment of Creditor’s Accounts.
4.6 Process for Urgent Invoice Payment Requests Urgent invoice payments may be requested through SSSA, however urgent requests incur a large fee. The fee is reviewed and updated annually. The fee is charged directly to the LHN, SAAS, or the department, and is not budgeted for. Anyone requesting urgent payment must be able to justify the decision to use this method of payment. Requests for urgent payments must be submitted to SSSA on the Accounts Payable Request for Urgent Payment Form and approved by a delegate with the appropriate level of financial delegation. Contact SSSA for details www.sharedservices.sa.gov.au.
4.7 Early Payment Discounts
In accordance with Treasurer’s Instruction 11 Payment of Creditors Accounts (TI 11) where a commercial discount is offered by a creditor for payment within a specified period, payment should be made within the period specified. Business units must ensure that any invoices forwarded for approval of early payment discounts are processed as soon as possible.
4.8 Invoice Exceeds Purchase Order Value Where the variance exceeds the set tolerance applied by Shared Services SA, the invoice will be flowed back to the Oracle requisitioner for review, and if accepted, the variance is approved in Basware. Where the variance is not accepted, it is preferred that the invoice is cancelled and a new invoice issued from the supplier. If this is not possible, a credit for the variance amount must be requested from the Supplier. Any replacement invoices or credit notes are to be forwarded to Shared Services SA. Further information on the certification and approval process can be found in the Quick Reference Guides on the Shared Services website.
4.9 Disputed Invoices
Disputed invoices must have the dispute flag switched on and be locked by switching on the locked flag within Basware with a note in Basware identifying the reasons why further time is required to process the invoice.
The Shared Services SA Disputed Invoice Process must be followed.
4.10 Retrospective Purchase Orders Where a purchase order is required under this policy, they are to be created prior to the receipt of the goods/services.
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The exceptions to this requirement are implantable devices and consignment stock where devices and stock are used based on patient outcomes and then invoiced.
4.11 Low Value Purchases (<$2,200 GST inclusive)
While purchase orders are expected for the purchase of all goods and services including low value purchases, there may be limited circumstances for low value items where it is more efficient for business units to purchase low value goods and services directly from the supplier and pay on receipt of invoice. As such, it is not mandatory that purchases valued below $2,200 (GST inclusive) require the creation of a requisition or purchase order with the exception of the purchase of agency staff, where a Purchase Order should be generated for the term of the engagement. Where a purchase order is not issued, business units may purchase items directly from the supplier.
Prior to such purchases, procurement approval and the financial authority must be obtained from the appropriate delegate. The person who has organised the purchase of the goods and/or services without a Purchase Order being issued cannot approve their own non purchase order invoice. When purchasing directly from a supplier, the business unit is responsible for determining minimum quantities, freight costs, delivery locations and receiving arrangements, as well as resolving any queries that may arise regarding the purchase including purchase order follow up. Business units must take care that new products are not purchased without prior approval from the SA Health Product Standardisation Committee. Product advice can be obtained by contacting PSCM Purchasing on 8425 9200 (option 1) or via email: Health:PSCM – Purchasing. The invoice for these purchases will be work-flowed to the business unit via Basware for certification and approval. Care must be taken to ensure the appropriate contact and business unit is provided when ordering to ensure the subsequent invoice can be correctly work-flowed and approved in Basware. Where the contact person named on the invoice or delivery advice (cart note) is not available to acknowledge receipt of the goods, the person receiving the goods must notify the contact person of the delivery as soon as possible. This will enable them to certify the invoice for payment in Basware.
4.11.1 Alternative Payment Methods Alternatively, SA Health purchase cards are intended as a means of efficient procurement and payment of accounts within SA Health agencies for low value purchases. Business unit managers can seek approval for the use of SA Health purchase cards. Refer to the SA Health Purchase Card Policy Directive for further information.
Purchasing staff will not be issued with purchase cards. Purchases made using a SA Health purchase card are listed as approved exemptions, refer Appendix 1, and do not require the creation of a purchase order.
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4.12 Systems Basware is used by Shared Services SA (SSSA) to automate the flow of accounts payable invoices between SSSA and business units, and is used to process:
• Purchase Order related invoices
• Non-Purchase order related invoices
• Non-invoices (for example employee reimbursements) - out of Policy scope.
Oracle is used for:
• Requisitioning
• Purchase orders
• Receipting
• Invoice payments.
4.13 Approvals Requisitions, purchase orders, and invoices must be approved by SA Heath delegates holding the appropriate delegation to enter into a contract, and/or approve requisitions and payments. Employees acting in positions with delegated authorisation/s may only use those authorisation/s during the acting period.
Appropriate authorisations include:
• Approval of requisitions
• Authority to issue a Purchase Order subject to the approved financial and procurement authorities
• Authority to Make Adjustment to Invoices
• Payment authorisation within own approved budget allocations (subject to limitation for specific items, for example consultants)
• Authority to approve requisitions or payments for approved Contracts between the Minister for Health and Wellbeing and/or a LHN and/or SAAS and another party (subject to payment authorities for specific items)
It is the responsibility of both the requisitioner and approver to ensure that they have met all authorisation and policy requirements prior to approving a transaction, including financial and procurement requirements. Departmental delegated authorisations are reflected in the SA Health Governance and Delegations System (GADS). Sub-delegations from the Chief Executive, SA Health, to the CEOs are also reflected in GADS. LHN delegations are reflected in the respective LHN Financial Authorisation Schedules. Review and approval of an invoice is segregated into two roles:
• Certifier / Reviewer – Refer to 2.1.2 for Roles and Responsibilities.
• Approver – Refer to 2.1.3 for Roles and Responsibilities. Approvals must be given in a timely manner. Basware will escalate un-actioned invoices after 6 days. Oracle will escalate approval of a requisition to the approver’s manager if not approved by the approver within 48 hours.
4.14 Exemption Scope
The Approved Exemption List is available at Appendix 1. The List takes in to careful consideration the nature and risk of making a purchase without formal purchase order documentation and approvals.
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4.15 Exemption Process
An exemption to any aspect of this Policy can only be sought via written request by a
Level 1 or 2 delegate to the Office of the Executive Director, Procurement and Supply
Chain Management, SA Health via email [email protected] and must provide
sufficient details supporting the request and risk mitigation / controls to enable a
considered determination by the Executive Director, Procurement and Supply Chain
Management.
The Executive Director, Procurement and Supply Chain Management is authorised to
approve or reject an exemption request.
5. Implementation & Monitoring
Compliance with this policy is to be measured by the relevant approval authority in approving the requisition, purchase order, and invoice.
Further evaluation is undertaken through the:
• Annual Corporate Credit Card review
• Annual Instrument of Delegation Audit
• SSSA audits
• Internal audits
• Financial Management Compliance Program
• Attorney General’s Financial Statement Audit. The identification and assessment of risks associated with procurement is undertaken in accordance with the SA Health Risk Management Policy and Framework.
5.1 Reporting to the Department of Treasury and Finance Refer to the SA Health Payment of Creditor's Accounts Policy Directive, section 4.2 for reporting requirements by Corporate Finance Services, Finance and Corporate Services.
6. National Safety and Quality Health Service Standards N/A
7. Definitions
In the context of this document:
• Oracle means Oracle Corporate System – is used to create requisitions work-flow requisitions for approval receipt purchase orders and pay supplier invoices
• Basware means - SA Health Invoice Processing Solution– is used to work-flow invoices to business units for certification and approval
• Shared Services SA means – the branch within the Department of Treasury and Finance that processes invoices and other financial functions for SA Health
• Purchasing means - the area within Procurement and Supply Chain management that manage purchase orders
• Purchase Order means – a commercial document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services
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• Requisition – is an electronic document used to describe the goods/services required, the quantity required and the time frame for delivery of goods/services, and includes the authorisation to proceed with the purchase
• Invoice means - the document provided to allow payment for goods and/or services
• Business Unit means – a unit within SA Health
• Health Site means – a site administered by SA Health
• PCMS mean – Procurement and Contract Management System
Invoice Definition and Work Flow Processes There are three main types of Accounts Payable transactions:
• Purchase Order (PO) related invoices: a supplier will invoice SA Health for goods and/or services ordered on a PO. These invoices are matched to Oracle PO receipts. They will be work-flowed to the Requisitioner for certification if:
o The invoice cannot be matched to a receipt o There is a variation between the receipt and invoice amounts (outside of SA
Health approved tolerance)
• Non PO invoices: supplier invoices which do not relate to a PO. These invoices will be work-flowed to the person or business group identified on the invoice for certification.
• Non invoices: claim forms such as employee and non-employee reimbursements. Non invoices will be work-flowed back to either the authorising delegate if the details provided on the form are incomplete or incorrect.
8. Associated Policy Directives / Policy Guidelines and Resources
The following documents are either referenced or related to this document: Whole of Government – Compliance – www.legislation.sa.gov.au Treasurers Instructions 18 (Procurement) State Records Act 1997 Public Finance and Audit Act 1987 Treasurer’s Instructions Whole of Government – Policy and Guidelines PSSA Across Government, Multi-Agency and Panels Guideline Acquisition Plan Template Purchase Recommendation Template SA Health – http://inside.sahealth.sa.gov.au SA Health Payment of Creditors Accounts Policy Directive Governance and Delegations System Simple Acquisition Plan Template Simple Purchase Recommendation Template Other Guidelines Oracle Assist Quick Reference Guides and Forms, including the SA Health Invoice Processing Solution (Basware) http://in.health.sa.gov.au/OracleAssist/Home.aspx Shared Services SA http://myinvoice.sharedservices.sa.gov.au/ Shared Services SA - Invoice Processing Solution Enhancement 01 – SA Health – October 2013 – Implementation of a Disputed Invoice Process GST and Business Transactions Guidance
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9. Appendix 1 – Approved Exemption List
Exemption Description
Employee and non-employee reimbursements, petty cash re-imbursements and recoups
Travel booked through the on-line system from QBT Pty Ltd
Workcover payments including settlements
Fringe Benefit Tax (FBT) payments
Local Health Networks and SA Ambulance Service Cash Calls
Utility Payments i.e. Electricity, Water, Gas, Telephone
Procurement and Contracts Management System (PCMS) transactions
Purchases made using an SA Health Purchase Card
Urgent clinical purchases being goods or services required for patient treatment the same
day or within 24 hours or have an OHS&W impact requiring urgent attention
iPharmacy purchases
Payments between SA Government Agencies
Payments against an established contract where payment terms are defined as pay on
invoice
Emergency after-hours repairs required to infrastructure necessary to maintain provision
of services
Alternate processing arrangements, approved on a case by case basis due to Business to
Business processes for new or existing contracts
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10. Document Ownership & History
Approval Date
Version Who approved New / Revised Version
Reason for Change
7/7/2021 V3.0 Deputy Chief Executive, Corporate and System Support Services
Amendments related to the new SA Government Procurement Policy Framework, including Treasurer’s Instruction 18 Procurement.
4/09/2020 V.2.4 Executive Director, Procurement and Supply Chain Management
Minor amendments providing guidance in relation to the aggregation of purchases and the use of forward procurement planning.
22/08/2019 V.2.3 Executive Director, Procurement and Supply Chain Management
Minor amendments documenting current operations + new section 4.4.
03/05/2018 V.2.2 Executive Director, Procurement and Supply Chain Management
Extension of review date.
21/12/2016 V.2.1 Executive Director, Procurement and Supply Chain Management
Incorporating minor changes.
16/11/2016 V.2 Executive Director, Procurement and Supply Chain Management
Incorporating internal consultation changes.
17/09/2015 V.1.1 Executive Director, Procurement and Supply Chain Management
Removed reference to OPS / Basware transitioned sites to reflect completion of OPS/Basware implementation.
03/07/2014 V.1 Portfolio Executive PE Approved version.
Document developed by: Procurement and Supply Chain Management
Corporate and System Support Services
File / Objective No.: 2019-08423 A1610978
Next review due: 01/07/2021
Policy history: Is this a new Policy Directive (V1)? N
Does this Policy Directive amend or update an existing Policy
Directive version? Y
If so, which version? V.2.4
Does this Policy Directive replace another Policy Directive with a
different title? N
ISBN No.: 978-1-76083-405-0