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Brunei Shell Petroleum Company Sendirian Berhad

S
C
M

ACTIVITY BSP-13.06.P.002

WRITE-ON - OFF

This document describes the procedure for


write-on and write-off for Companys
Consumables and Equipment

Approved by : SCM, Nigel Cotterill


Document Owner : SCM/1, Mohd Suwarso
Document Custodian : SCM/14, Shukri

REV 1.1
DOCUMENT CONTROL
DOCUMENT TYPE DOCUMENT OWNER SECURITY CLASSIFICATION
Activity Description SCM/1 Confidential
DOCUMENT AUTHOR APPROVED BY
REFERENCE
BSP 13.06 SCM/14, Shukri SCM
KEY WORDS Document Custodian
Supplement to BSC Supply Chain Guideline SCM/14

This document has a maximum validity of five years from the last revision date. Within
this period it must be assessed for relevance and re-validated in accordance with the
Document Control Procedure
Suggestions for further improvement in this document should be sent to the Document Custodian,
SCM/14.
REVISION RECORD
REV REVISION DESCRIPTION DATE
0.1 First Issue (Draft) Feb 2006
1.0 First Revision Mar 2006
1.1 Second Revision June 2009
To update procedure to reflect current process
and Organisation.
Roles and responsibilities including
terminologies are defined and align to global EP
process.
Incorporating the simplified write off/on form in
the procedure.
Process flows are revised to enhance
understanding.

DISTRIBUTION CONTROL
The target readership is:
All SCM Staff
All Relevant STL staff
All PMC (Project materials Coordinators) and MCO ( Material Coordinators)
All contract holders
All Department Heads and Managers
Functional Advisers - HSE, LGL, FAC, and TA (Technical Authority).
The document owner is responsible for distribution control. The original electronic version is stored in
LiveLink and accessible via BSP OnLine web site. Paper copies are only controlled if they are
physically stamped Controlled Hard Copy and signed by the related remote location document
receiver (see Section 2.6 of Document Control Procedure)
NOTICE AND WARNING
Copyright 2006, Brunei Shell Petroleum Company Sendirian Berhad
This document is the property of Brunei Shell Petroleum Company Sendirian Berhad (BSP), Seria
KB 3534, Negara Brunei Darussalam. Circulation is restricted to BSP and, where a business
requirement exists, to its designated associates, contractors and consultants. It must not be copied
or used for any other purpose other than which it is supplied, without the expressed written
authority of BSP.
Except where provided for purposes of contractual requirements, BSP disclaims any responsibility
or liability for any use or misuse of the document by any person and makes no warranty as to the
accuracy or suitability of the information to any third party. Any misuse of the document is
redressable by BSP.
WRITE ON OFF PROCEDURE

TABLE OF CONTENTS
CHAPTER 1 INTRODUCTION ................................................................................. 4
1.1 Purpose 4
1.2 General Description 4
1.3 Scope 4
1.4 Terminology 4
1.5 Other References and related links 5
CHAPTER 2 RESPONSIBILITIES AND RISK CONTROL ........................................ 6
CHAPTER 3 ACTIVITY DESCRIPTION ................................................................... 9
3.0 General 9
3. 1 Routing and Action 9
3.2 ROUTING AND CONTROL OF WRITE-ON/OFF DOCUMENTS 9
3.3 FOLLOW-UP 9
3.4 REGISTRATION OF WRITE-ON/OFF DOCUMENTS 10
CHAPTER 4 PROCESS FLOW ............................................................................... 11
4.1 Surplus & Non Move Stock & Deteriorated Stock 11
4.2 Non Stock Direct Charge / Project 11
4.3 Proposal for Asset Write off and Disposal - Fixed Asset and Movables 12
CHAPTER 5 RISKS AND CONTROLS ................................................................... 15
APPENDIX1 - WRITE OFF FORMSTOCK AND (NON STOCK ITEMSPROJECT
SURPLUS/DIRECT CHARGE) .......................................................................... 16
APPENDIX 2 WRITE OFF FOR FIXED AND MOVABLE ASSETS ........................................ 17
APPENDIX 3 WRITE ON FORMSTOCK AND (NON STOCK-PROJECT SURPLUS/..............
DIRECT CHARGE) ............................................................................................ 18

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WRITE ON OFF PROCEDURE

CHAPTER 1 INTRODUCTION
1.1 Purpose
This document applies to all STL, SCM, Asset Focal point personnel, Asset Holders and
Department Head including Project Material Coordinators (PMC) and Material Coordinators
(MCO) responsible for processing and action of Write-offs/ons.

1.2 General Description


The Procedure outlines all those circumstances under which Proposals for Asset Write-off
and Disposal, Write-offs and Write-ons are used; it describes for each which party is
responsible for raising the Write-off/on and how it should be subsequently routed for
screening, approval, authorisation and action.

1.3 Scope
The role of Supply Chain Management (SCM) is to take due care of the Companys
requirements for materials, equipment and related services.

The focus of this chapter is on the management and disposal of all categories of surplus
such as general stock materials, direct charge materials and project stock, as well as
capitalized assets such as movables.

1.4 Terminology
Key terminology in this document is either defined on its first occurrence or takes the
common definition provided in the:
Management System Glossary (BSP-02-Guideline-003)
Terminology specific to this document is given in the table below:

Terminology Descriptions

Asset Owner The party held accountable for the use of the item in question.
Usually the Asset Manager
Asset Holders The Postholder defined in the BSP Asset Holder list as being
responsible for a particular item or area of BSP property. In this
document the term is used also to describe the persons formally
appointed to represent them at any asset, elsewhere referred to
as the Asset Custodian.
PMC/MCO Project Material Coordinator or Material Coordinators
MOA Manual of A document recording the commercial and financial authorities
Authorities delegated by the Managing Director to positions within the
Company.
Write-off Write-off - an authorized financial adjustment to support the
removal of an item of stock or piece of equipment from
Companys records, for example as a result of loss, damage,
deterioration or obsolescence.
Write-on Write-on - an authorized financial adjustment to support the
addition of an item of stock or piece of equipment into
Companys records.
Disposal Disposal - physical removal of surplus/scrap materials or assets
from the Companys premises upon transfer of ownership to a
Purchaser or Scrap Contractor with the aim of recovering costs
through sales to a third party.
SAP Enterprise Resource Planning system used by BSP to monitor
movements of materials and equipment.

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WRITE ON OFF PROCEDURE

Terminology Descriptions

MRV Material Return Voucher, a form to be used by the Line


department /STL for raising return materials via SCM/14 to STL
Dept.
Cataloguing The process that ensures the unique identification of a specific
material and that material standardisation is maintained.
MCR (Material Also known as Inventory or Stock Proposal form, it is the
Catalogue Request ) mechanism to request the establishment of a new Material Master
also known as CRF or amendments to existing Material Master records.
(Catalogue Request
Form)
MRP (Material A process that uses bill of material data, inventory data and Work
Requirements Orders to calculate requirements for materials. It makes
Planning) recommendations to release replenishment orders for material.
Repairable Items Items which are not consumed upon use, but can be repaired to
an as new, or usable condition i.e. valves, pumps, motors,
instrumentation etc.
Surplus Materials which have no foreseeable use in the companys/
projects operations or which will not be used within a reasonable
period of time.
Salvage material Refers to use materials (general stock or project material)
recovered from Company operations through maintenance, plant
modification or dismantlement, which can be reconditioned
economically and for which there is a safe possible future use.
Scrap material Scrap material is discarded material with some discovery value of
which is usually disposed of without further treatment other than
claiming and handling.
Third Party Held Materials that belong to the company, but are held at third party
Materials premises

1.5 Other References and related links


Refer to related links in concjuction with this procedure :

BSP13.03-P-002 - Receive Goods Procedure


BSP13.03.P.003 - Inspect Goods Procedure
BSP 13.04-P-005 - Store Goods Procedures
BSP-13.03-P-007 - Recycle/Return Goods
BSP-13.03-P014 - Moveable Procedure
BSP 13.03.07-W-010 - Fixed Assets & Movable Write Off
BSP-13.03 -Procedure-008 Disposal of Goods
Procedure BSP-13.06.P.001 - Sales of Company Assets & Stock/Scrap
MCR - Material Catalogue Request Form
Write Off Form - Fixed and Movable Asset
Write Off Form for Stock, Project and Direct Charge Materials
Write On Form for Stock, Project and Direct Charge Materials

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WRITE ON OFF PROCEDURE

CHAPTER 2 RESPONSIBILITIES AND RISK CONTROL

Designation Who Role Responsibilities


Carries out day to day
inventory analysis, dead
inventory reviews, executes
the MRP run and takes
Stock Analyst/ Analyses, reviews, updates purchasing action for inventory
MRP SCM/2/3/4/ inventory records and material
5 Buyers
Controller approves inventory proposals Regular review of non-move
stock especially those
unmoved over last 4 years.
Raised Write Off for obsolete
/surplus stock items
SCM/2 - (Production, Maintenance
& Logistics) To screen and approve write
SCM/3 - ( Projects) off/on only for stock items after
Supply Chain
liasing with their buyers before
Leaders SCM/4 - (IT, Seismic and other final authorisation by MOA(
Services) Manual Of Authority)
SCM/5 - (Wells Engineering)
To implement inventory stock
check plan as per procedure
Executes inventory physical
To raise write off/on SAP
Stock Checker SCM/141/ count and reconciles the
movement type 701/702.
SCM/141x differences against SAP
To keep record of all Write-
On/Off on file up to 6 years.
Responsible for managing the
disposal process in a timely
manner
BSP Disposal SCM/142 Executes the disposal of
Focal Point surplus material Maximises the return on
disposals by Sale by Tender
and ensure all documentation
filed for audit trail purposes
Responsible for managing the
BSP Head of SCM/14 Manages inventory at BSP BSPs inventory and ensuring
Inventory Level KPIs are met including
disposals

Process owner for storage and


accountable for Warehouse
storage.
Inwards inspection.
Quarantine allocation of
STL/2, Manage the receiving, storing noncompliant materials.
Warehouse STL/42, and preservation of stock Receiving process (SAP).
Manager , HML/13, materials. Supervisor of Appropriate storage of
TSW/4 warehouse staff (persons). materials by.
Tracking of materials by Bin
Location.
Preservation of materials to
ensure serviceability.
Issuing of materials on
demand (SAP).

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WRITE ON OFF PROCEDURE

Designation Who Role Responsibilities


STL/2, Manage the receiving, Allocate personnel to support
Warehouse STL/42, storing and preservation of the stock check process.
Manager , HML/13, stock materials. Supervisor Investigation of stock check
(Cont) TSW/4 of warehouse staff discrepancies with SCM/14
(persons). staff.
Receiving and issuing of
Person responsible to carry materials on demand process
out the tasks as directed by (SAP)
the Warehouse Manager.
Regular monitoring of stocks
Warehouse
in warehouse.
Person,
STL,HML,TS Raise Write Off/On for stock
W, Storemen items to be repaired, modified
and Yard staff or assemble.
Raise Write Off/On for
deteriorated stock items suing
write off form and ensure
tracking of the forms and
getting necessary approval
STL Focal services to
Process Write Off/On in SAP
STL Customer process warehouse SAP
upon receiving the authority
Service Unit STL/2121 transactions e.g Good Issue,
documents using SAP
(CSU) MRVs, write off/on SAP
movement 551/552.
transaction etc
Manages responsibilities, Ensuring Inspects all incoming
Materials
functions and processes of (new and return) stocks.
Inspection &
STL/22 inspections and preservation
QC
of BSP materials under their Preservation of materials to
Supervisor ensure serviceability
direct control or by request.
Regular review of non-move
PMCs project stock.
PMC Project Project Material
Material delegated Coordinate activities between
Coordinators as appointed
Coordinators by their Project Engineers, Asset
by their Department Head
respective Holders and Buyers.
or Assets to manage
User Raise and proposed for Write
material coordination for
Department Off obsolete or surplus
their respective projects
project stock, which not
foresee to be used in future.
Proposed for Write On and
stock proposal for non-stock
project materials including
raising MCR forms( Material
Catalogue Request)
coordinating with Technical
Authority such as SEN and
OPM Department.

Ensuring screening of Coordinate activities between


SEN materials specifications Project Engineers, Asset
Technical are corrects and meeting Holders and Buyers for
Department
Authorities BSP standards reviewing materials.

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WRITE ON OFF PROCEDURE

Designation Who Role Responsibilities


Coordinate activities between
Ensuring screening of Project Engineers, Asset
materials criticalities Holders and Buyers for
OPM
Technical against business needs reviewing materials.
Department
Authorities and/or ensuring material Carry out audits on
preservations are taken such as BSP warehouse
place in BSP. and yards and provide
recommendation to STL.
STL Focal services to
Process Write Off/On in SAP
STL Customer process warehouse SAP
upon receiving the authority
Service Unit STL/2121 transactions e.g Good Issue,
documents using SAP
(CSU) MRVs, write off/on SAP
movement 551/552.
transaction etc
Manages responsibilities, Ensuring Inspects all incoming
Materials
functions and processes of (new and return) stocks.
Inspection &
STL/22 inspections and preservation
QC
of BSP materials under their Preservation of materials to
Supervisor ensure serviceability
direct control or by request.
Completion of Catalogue
Request Form (CRF) for
additions or amendments to
material catalogue
User Xops Dept
Department Consumer of inventory Proposes inventory levels
Xen Dept
Maintenance materials i.e. Project Creates work order demand in
Manager, Project/Discipline SAP for reservation of
Operations Engineer, etc. materials
Drilling
Assess, decide and raise as
necessary on action on
surplus materials from his/her
project
Screen and Approves the
Asset write-off of movable/fixed
Manage BSP Assets within asset proposal under his/her
Asset Holders Holder or
their respective Department . custodian and accountable
Department
Head for ensuring asset are
physically checked prior to
sale/disposal process before
final authorities by MOA.

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WRITE ON OFF PROCEDURE

CHAPTER 3 ACTIVITY DESCRIPTION


3.0 General
This document sets out the requirement of Supply Chain Management (SCM) Department in
respect of the identification, utilization, Write On-Off and disposal of surplus and scrap
materials. The need to identify and control surplus is to optimise the Company's financial and
operational position by avoiding, postponing or reducing expenditure by using surplus
material (wherever possible), reducing costs of storage and increasing cash flow by selling
unwanted materials.

The range of circumstances under which Write-offs are raised are numerous and do not
always involve the physical write-off of material. For example, if a stock check of a particular
item reveals a negative stock check difference of one piece, a Write-off may be raised to
write-off the piece from the inventory record (and stock account).

Materials / equipment from the various categories and which are obsolete/surplus to the
Companys requirement, but have a marketable value, shall be Written off and disposed of by
Sale by Tender. SCM/142 is responsible for the administration of the disposal activity and
shall invite interested parties to bid for the goods. STL/21 is responsible for the materials
physical handling, disposal and operations processes whereas STL/22 is responsible for the
physical handling and disposal materials inspection and Quality Control of the incoming
goods for disposal.

3. 1 Routing and Action


Once approved and authorised; the Write-on and the materials are sent to the appropriate
warehouse.STL/2121 (relevant STL Storemen/Yardmen) shall sign the Write-on to
acknowledge receipt and send the Write-on to STL/2121 (CSU) for SAP processing and
filing.

3.2 ROUTING AND CONTROL OF WRITE-ON/OFF DOCUMENTS


The Write-off/on originator is responsible for routing the document in accordance with this
procedure and for monitoring the process through to completion. Using the Write-on/off form,
originators shall prepare one original plus two copies of each prior to routing for
authorisation; the originator shall retain one copy on file, and for follow-up should the
authorisation process appear to be stalled. Other parties on the routing may keep a copy of
the document for their own records.
Write-off originators shall prepare a routing slip for each Write-off. Where a group of Write-
offs/ons having the same routing are raised simultaneously, these shall be inserted in a file
under cover of one routing slip. In this case, the originator must make note (on the routing
slip) of the number of documents in the file.

Occasionally, authorisers/approvers of Write-off/ons may decide to re-route the document (to


obtain additional clarification or justification, for example). In this event, they must assume
responsibility for following up the reply or action and advising the originator accordingly.
All approved and actioned Write-offs/ons for stock items must be sent to following focal
point:-
SCM/141 : Inventory Stock Audit Supervisor

3.3 FOLLOW-UP
Relevant Buyers/PMC, STL staff or Asset Focal Point (who raises the write-on/off) shall
retain one copy of the authorised Write-off/on (prior to despatch to the appropriate store)
until the Write-off/on has been processed in SAP. They shall follow-up all Write-off/ons which
have been pending processing (SAP) for more than one month. They shall also maintain an
ongoing record of all related follow-up actions and Write-off/on status.

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WRITE ON OFF PROCEDURE

3.4 REGISTRATION OF WRITE-ON/OFF DOCUMENTS

All Write-offs/ons are assigned a registration number prior to input to SAP by various parties
as follows:
The initiator for the write-on/off namely SCM/141, Asset Focal Point, PMC, Buyers,
STL/2121/223/22 shall allocate a registration number for materials and equipment
write-off/ons before circulating for approval. Initiator shall only dispose of the copy of
the write-on/off once he/she has received the original copy of the write-on/off and
confirms that the document has been entered and processed in SAP.
STL/21 shall assign a registration number for other unnumbered Write-offs/ons sent
for operational actions after approval.
Registration clerks shall note the registration number, date of registration and SAP
group for each document.
Apart from write off/on arising for stockcheck differences which SCM/14 responsible
to process in SAP, keep copy and filing, the rest are normally processed in SAP by
STL/2121(CSU KB) or Muara STL/401 whereas they shall keep and file the
documents for audit trail.

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WRITE ON OFF PROCEDURE

CHAPTER 4 PROCESS FLOW

4.1 Surplus & Non Move Stock & Deteriorated Stock

4.2 Non Stock Direct Charge / Project

SCM/14 head of
I

Line Department

STL/2121 CSU/

Store/Yardmen)
=Initiate/raise

Snr warehouse
=Processing

Inventory/142-
STL 401 -SAP
t

Supply Chain
Asset Holder

SCM/2/3/4/5
(Warehouse
PMC/ Asset

Buyer, CFP
e

Processing
Dept Head

Authorities
Holder/PE

Manual of
Technical
STL/212x
=Screen and agreed =Action

STL/2/21
m

Authority
Lead
SCM

sale
N = Authorise
o

4.1 Surplus and Non Move/obselete


Stock
Deteriorated /damaged stock

1 For Surplus/Non Moved/Obselete


stock - Buyer / PMC - Raise Write off
For deteriorated Stock - STL/212x
(Store/yardmen can raise)

2 Screen and agreed

3 Authorised by MOA

4 For stocks - Send original write off to :


- STL/2121- CSU KB / Muara -STL/401
for SAP processing. CSU keep original
for filing.

Inform and send phocophies of


5
approved write off (Signed Off) to the
relevant STL Storemen / Yard
Supervisor for disposal action either for
scrap/sale. One copy to SCM/142. STL/221

6 Disposal Action

Sale by Tender processing


7

4.2 Non Stock - Direct Charge/Project

1 PMC /User Dept/Project Engineer -


Raise Write off

2 Screen and agreed by Asset Holder


Dept Head

Authorised by MOA
3

PMC/Us er/PE to i nform and s end


4 photocophies of approved write off to
the relevant STL Storemen / Yard
Supervisor for disposal action either for
scrap/sale.
Send Original approved write off to
SCM/142 for filing
STL/221

5 Disposal Action

Sale by Tender processing


6

Note :
Manual Of Authorities,
MD - Full Authority
TD/AD with FD - Max B$250k/Line item
SCM - Max B$100k/Line item
SCM/1 - Max B$10 k/Line item

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WRITE ON OFF PROCEDURE

4.3 Proposal for Asset Write off and Disposal - Fixed Asset and Movables

Others/Technical
SCM/14 head of
I

Line Department

STL/2121 CSU/

Store/Yardmen)
=Initiate/raise

Snr warehouse
=Processing

Inventory/142-
STL 401 -SAP
t

Supply Chain
Asset Holder

SCM/2/3/4/5
(Warehouse

Authorities -
PMC/ Asset

Buyer, CFP
e

Processing

OPM,SEN,
Dept Head

Holder/PE

Manual of
STL/212x
=Screen and agreed =Action

STL/2/21
m

Authority
Lead
SCM

sale
N = Authorise
o

4.3 Proposal for Asset Write off and


Disposal - Fixed Asset and
Movables

1 Raise and sign the proposal by Asset


holder

2 Screen and agreed by Asset Holder Fixed asset


Department Head
Movable asset

3 STL/222 update the status of Movable STL/222


items >B$20k only in SAP system.

FAC/11
4 FAC/11 update SAP Asset number
and enter Depreciation/net book Value SCM
/142

Screen and determine method of


5 disposal either for sale, scrap, donate
or dump.
SCM

6 Screen and agreed by SCM

7 Authorised by MOA Movable asset

Final updates status in SAP : STL/222


8 FAC
For Movable Asset >B$20k only - STL/
/114
222
Fixed asset
For Fixed Asset only - FAC/114

I nit iat or/ raiser t o inf orm and send STL/221


9 photocophies of approved write off
( S i g n e d Of f ) t o S TL / 2 2 1 / 2 2 1 1 f o r
disposal action either for scrap/sale. If for sale by Tender
One copy to SCM/142.
For Scrap
STL/221
10 For Scrap, disposal action is direct via
STL/221
If for Sale by Tender processing via -
11 SCM/142. For material collection by the
buyer, physical handling shall be
handed over to STL/221. If materials
are sold onsite, them STL storemen/
Yardmen are responsible for disposal
action. Movable asset
Fixed asset STL/221

Sign Certificate of disposal :


12
For Movable Asset only - STL/221
For Fixed Asset only - Asset Holder STL/221
Department Head

STL/222
13 Retains copy of approved Write off for
filing/records :
For Movable Assets - STL/222
For Fixed Assets - Asset Holder Focal
Point

Note :
Manual Of Authorities,
MD - Full Authority
TD/AD with FD - Max B$250k/Line item
SCM - Max B$100k/Line item
SCM/1 - Max B$10 k/Line item

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WRITE ON OFF PROCEDURE

4.4 Project Close Out Surplus project materials

4.4 A - Transfer to new projects


4.4 B - Write off for non stock materials of no foreseeable use
4.4 C - Propose non stock material for stock of foreseeable use
4.4 D - Standard stock refer to STL return process using MRV

SCM/14 head of
I

Line Department

STL/2121 CSU/

Store/Yardmen)
=Initiate/raise

Snr warehouse
=Processing

Inventory/142-
STL 401 -SAP
t

Supply Chain
Asset Holder

SCM/2/3/4/5
(Warehouse
PMC/ Asset

Buyer, CFP
e

Processing
Dept Head

Authorities
Holder/PE

Manual of
Technical
STL/212x
=Screen and agreed =Action

STL/2/21
m

Authority
Lead
SCM

sale
N = Authorise
o

Surplus Project Material


Project Close Out

4.4 A - Transfer to new projects

1 PMC or Project Engineer raise write


off and write on

Screen and agreed by old Project


2 Engineers Dept head

3 Authorised by - old Project Engineer to


New Project Engineer

PMC/PE send approved write off and


4 wri te o n to S TL /2 1 2 x (S to re m e n /
Yardmen)
STL/221x
STL/212x carry out physical project to
5 project transfer including relocation
and retagging of materials.

STL/212x shall sign the documents


6 and indicate the transfer has taken
place and send them to STL/2121(STL
CSU) for update in SAP.

STL 212x as appropriate and New


7 Project Engineer must have copies of
the write off and write on for file and
records.

4.4 B - Non Stock - Direct Charge/


Project surplus proposed for write
off.
PMC /User Dept/Project Engineer -
1 Raise Write off. STL may raise this if
PMC/PE are no longer traceable by
offering surplus listing to all Users in
BSp prior to write off.
2
Screen and agreed by Asset Holder
Dept Head
3
Authorised by MOA

4 PMC /User Dept/Project Engineer -


inform and send photocophies of
approved write off to the relevant STL
Storemen / Yard Supervisor for disposal
action either for scrap/sale.
Send Original approved write off to
SCM/142 for filing STL/221

5 Disposal Action

6 Sale by Tender processing

Continue on next page/sheet for 4.4 C

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WRITE ON OFF PROCEDURE

4.4 Project Close Out Surplus project materials Cont

4.4 C - Propose non stock material for stock of foreseeable use Cont

SCM/14 head of
I

Line Department

STL/2121 CSU/

Store/Yardmen)
=Initiate/raise

Snr warehouse
=Processing

Inventory/142-
STL 401 -SAP
t

Supply Chain
Asset Holder

SCM/2/3/4/5

OPM & SEN


(Warehouse
PMC/ Asset

Buyer, CFP
e

Processing
Dept Head

Authorities
Holder/PE

Manual of
Technical
STL/212x
=Screen and agreed =Action

STL/2/21
m

Authority
Lead
SCM

sale
N = Authorise
o

4.4 C - Surplus Project Material


Project Close Out

A. Project Surplus non stock material


proposed for stock.
B.New Stock proposal
C. Project Surplus Stock items - see
STL MRV - return process

1 SCO/26 or as relevant prepare the


surplus list

If material are foreseen to be used in


2 future and business critical - PMC or
Project Engineer may raise MCR -
Material Catalogue Request

3 Screen and agreed by Asset holder /


Project Engineer

PMC/PE liase with OPM/1 to


4 determine business criticalities and
requirement

PMC/PE liase with SEN Dept. to


5 prepare the full specification. SEN
Dept review specification are to BSP
standards.

6 SCM buyers raise write on

Screen and agreed by SCM/2/3/4/5


7

8 Authorised by - MOA

9 Inform the relevant STL inspector for STL/2232


inspection prior to stock

10 Inform the relevant STLStoremen /


Yard Supervisor for storage action

11 Inform and send approved write on to


STL CSU for SAP processing and
filing.

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WRITE ON OFF PROCEDURE

CHAPTER 5 RISKS AND CONTROLS


The following table identifies the key exposures and the controls in place aimed at
preventing the exposure occurring and hence minimising the risk.

KEY EXPOSURE CONTROL MECHANISM CONTROL VERIFICATION


DESCRIPTION
Surplus stock Regular inventory review o MRP run on a quarterly
by SCM/2/3/4/5 Buyers basis for own commodity
and CFP-Category Focal groups
Point o Regular SIMC report
generated by SCM/14

Stock Check Differences Recording All Written- Approved Write-On/Off


Off/On stock centrally via Documents kept in file for
SCM/141 6 years from date of
processing

Untraceable Asset, o Report kept centrally o Annual verification of


Movable and Stock with FAC/114 for asset physical records versus
write-off inventory by the Asset
o Report kept centrally with Focal Point, Movable
STL/22 for movable Focal Point and SCM/141
write-off o All records to be kept for
o Report kept centrally with a period of 6 years
SCM/141 for stock write-
off

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WRITE ON OFF PROCEDURE

APPENDIX 1-WRITE OFF FORMSTOCK AND (NON STOCK ITEMSPROJECT SURPLUS/DIRECT CHARGE)

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WRITE ON OFF PROCEDURE

APPENDIX 2 WRITE OFF FOR FIXED AND MOVABLE ASSETS

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WRITE ON OFF PROCEDURE

APPENDIX 3 WRITE ON FORMSTOCK AND (NON STOCK-PROJECT SURPLUS/DIRECT CHARGE)

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