Purchase Order:A demand request (PR) initiates from Mill/Plant by purchaser, against that PRpurchase manager raises the purchase order in oracle purchasing. Once thePurchase Order gets appro ed by the authorities, mar!eting/import departmentrecei es the Performa in oice. "nsurance #ill be paid at the time of Purchase order creation. "nsurance #ill be ta!en care by $nance/Account department.%ollo#ing are the Purchaser for di&erent item categories

• Mr. 'uland A!hter raises the PO for tores pares, *yes +hemical. • Mr "sfand aar Ali / -ahid ohail raises the PO for Accessories. • Mr. unaid Am ad / yed Muhammad %arru!h raises the PO for arn. • Mr. -afar Mehmod raises the PO for +otton.

Performa Invoice:An in oice sent by seller to a buyer in ad ance of shipment or deli ery of goods. "t has a description of purchased item, quantity as #ell as other important informationli!e 0 +ode, "1+O terms, payment terms, mode of shipment, origin and destinationport, #eight, remar!s and commission agency.

• Payment 2erms3 Ad ance Payment or credit. +harge nature #ill be changed ine ery payment term.

• 0 codes3 2his is internationally recogni4ed imported item description on#hich duties and ta5es are applied but it can be changed based on countryand region.

%ollo#ing are the "1+O term #hich #ill apply on shipment.6. + % basis means that the price #ill include cost and freight but insurance #ill

be borne by the buyer.7. +"% basis means cost, insurance and freight #ill be part of in oice and buyer

#ill not pay it.8. %O' basis means that the responsibility of the seller for goods #ill last till the

seller9s port and all other charges #ill be borne by the buyer.:. ;5<%actory (mostly in case of local buying) is a term in #hich buyer bears all

the charges from the seller9s #arehouse/manufacturing facility to its#arehouse.

LC Opening:Once the proforma in oice recei ed. "mport dept. #ill contact the ban! for =+ opening/22 opening. 'an! charges the commission for opening =+/22 document. "ncase of =+/22 original document is not yet recei ed or any amendments require in=+ then ban! #ill charge the commission. =+ #ill be established by importdepartment #ith consultation by $nance department 22 #ill be ta!en care by$nance department and Payment #ill be created by $nance department. =+ #ill beclosed once the all charges are e5pense out but accounting #ill be run on monthbasis. ingle account maintained for =+ (i.e., =+ +ontrol Account). At the time of

cost update this account #ill be credit and at the time of in oice this account#ill debit.%or 22 Ad ance,

SRO:RO is statutory regulatory order, normally issued by %'R #hich create andenforce industry regulations and standards. 1+= are practicing follo#ing RO forgetting bene$ts in imports.RO>87?@hen goods are arri ed at port then some charges are applied #hich #ill berefundable after a period of time. 2hat cost #ill not become part of item cost.pinning 6 Periodic and 02* *i ision are t#o organi4ations #hich ha e RO based purchases.

2his RO is applied on Manufactured RM items, "mport ;5port items. P*+ gi en to o t. on account of ta5 and duty #hich #ill be refund after 7 years at the time of audit.RO > :B7

2his RO is applied on trading items li!e pac!ing items. P*+ gi en to o t. on account of ta5 and duty #hich #ill be refund after 7 years at the time of audit.RO > 667C

2his is RO is applied #hen RO<87? is not a ail for any reason. 2his RO gi es bene$ts on reduction of sale ta5, #ithholding ta5.Dth schedule sale ta5 ( RO > ?7?)

2his RO is applied on machinery import items.

As of no# there is no implication in system for capturing RO details. "t is manuale5cel sheet process, #hen goods arri ed on port then import department managerdecides #hich RO #ill be apply for shipment. +learing agent #ill $le the papersbehalf of 1+= in order to release goods from port.P*+ cheaques submitted against RO #hich #ill be return after 7 years. 2his #ill notbecome part of item cost.