2.16 | Payment Policy

2.16.1 | Scope

The scope of this policy cover payment processes which are managed and implemented at Sampoerna University, as follows:

• Payment for Procurement using Purchase Order (PO)
• Cash Advance and Settlement of Cash Advance
• Reimbursement for cash spent by Employee
• Payment using Corporate Credit Card.
• Payment using petty cash.

2.16.2 | Definition

• Payment for Purchase Order: Payment to Vendor for Procurement of goods and/or services using a purchase order (PO).
• Payment for Internal PO: Payment for PO issued by Procurement without having Vendor’s confirmation.
• Cash Advance: is a fund provided to employees for unusual purposes. Based on utilization, a cash advance can be categorized as:

• • Business Travel Allowance is a fund given to employees for business travel allowance purposes.
  • Operational Cash Advance: is a fund to be paid to employees in fulfilling the company’s operational cost.

• Settlement of Cash Advance: this is a report regarding cash advance usage given to the Employee.
• Reimbursement: is repayment of Employee’s money which Employee has spent to pay goods or services related to work.
• Debit Note Is a debt notice document to Parent, Student, or Donor issued by Finance & Accounting Department or Bursary.
• Credit Note Is a notice document of debt reduction to Parent or Student issued by Finance & Accounting Department or Bursary.

2.16.3 | Principles in Payment Process

The implementation of the payment process must constantly support the creation of a smooth, secure, efficient, and reliable payment system by accentuating the fulfilment of sound prudential principles and risk management, as well as by always considering the needs of the University and the fulfilment of Users’ and Donors’ needs. Any payment transaction shall be approved under the applicable DOA.

(a) Payment for invoice of Procurement

that uses PO is conducted based on the result of conformity verification to procurement transactions document, as follows:

• Official Purchase Order Document issued by Procurement, which is PO
• Delivery Note for Goods or “Bernita Acara Serah Terima/Services Completion Report (BAST)” for services which has been agreed by requestor and PORE.
• Original Invoice issued by Vendor.
• Tax invoice issued by Vendor: Tax invoice of Taxable Entrepreneur for VAT (Value Added Tax) Purpose.
• Copy of legal agreement for procurement transaction, which requires legal agreement.
• DGT Form and Certificate of Domicile (COD) for Overseas Tax Payer (If Any)
• Payment can proceed if all documents above are received by Finance Department and delivery note or BAST, and PORE is matched to the invoice.

The finance and Accounting Department reserves the right to reject or return incomplete and/or inaccurate invoice documents to Vendor. The Finance & Accounting Department will conduct verification against documents completeness and PO Receipt (PORE) in the financial system. The Finance & Accounting Department is entitled to reject and/ or return the incomplete invoicing document to the User or GA/ Procurement based on the PORE creator.

(b) Direct Payment Without PO to Non – Vendor
A transaction using direct payment without PO to non – Vendor is implemented to the type of transaction as follows:

• Payment to the student, such as a grant to the student. This payment will proceed under an agreement with the students, and if any deviation will be requested for approval from the Head of Finance.
• Payment to parents, such as discount or school fee refund. These payments will proceed after the credit note is released from Bursary.
• Payment for the facilitator

Direct payment without PO to non – Vendor are will using reimbursement module in the financial system. User should submit complete invoicing documents to Finance & Accounting Department, which consist of original and proposal/ request document for direct payment.

2.16.4 | Operational Cash Advance Payment

The use of Operational cash Advance is allowed in the situation as follows:

1. An operational cash advance is needed to procure goods and or services in certain situations. Procurement with PO is considered ineffective, caused by constraints such as; working location that causes limited access to Procurement, delivery, and other constraints.
2. An operational cash advance is needed for payment related to equipment procurement and/or operating expenses for research activities funded by Donor.
3. Operational cash advance only paid or given to Employee

2.16.5 | Business Travel Cash Advance Payment

The request for a business travel allowance should be submitted through the TAF module, which the HR Department has managed. Procedure request of business travel allowance refers to Travel Policies.

2.16.6 | Settlement of Cash Advance

An employee who receives an operational cash advance and business travel cash advance is mandatory to settle the received cash advance within certain maximum calendar days after receiving the fund. If an Employee fails to settle cash advance within certain maximum calendar days since the fund received, the system will automatically block Employee’s access to propose new cash advance request. Access to propose cash advance will be granted if respective Employee has settled the last cash advance.

2.16.7 | Sanction

The sanction will be applied to Employees who fail to settle operational cash advance or business travel within the agreed timeline, as follows:

• The finance & Accounting Department will inform the HR Department and the related Head of department or business unit to take necessary action.
• The Employee responsible for the cash advance must be the Employee who receives the cash advance. Violation of this stipulation will impact to sanction according to the applicable company regulation.

2.16.8 | Reimbursement

1. The Employee can purchase goods with a reimbursement if payment is urgent, and there is no possibility to wait for the payment from the Finance department.
2. Request for Reimbursement.
3. Before purchasing with personal money, the Employee must obtain written approval from an authorized officer within the respective Department or Business Unit according to the applicable DOA.
4. Request for reimbursement is addressed to Finance & Accounting Department.
5. The Employee is mandatory to attach evidence of authorized officer approval and purchase receipt when requesting reimbursement.
6. The requestor’s name is the employee’s name who conducts the purchasing.
7. The finance & Accounting Department can reject the request for reimbursement if the request for reimbursement does not attach approval of the authorized officer according to the applicable DOA before the purchase.