AVH Supplier

Handbook
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 Definitions

Contract Supplier The Organization

For the purposes of this handbook, you
A supplier is a third party who provides For the purposes of this handbook, this term
should understand as such any document
Goods or Services, which allow the means the companies that comprise Avianca
that binds the Organization to a third party
Organization to operate. Holdings as a whole and/or considered
(supplier) and contains their obligations. It
individually.
doesn’t matter what name you know it with:
Standard Po/ Release Po, Legal Contract,
Price Acceptance, Price Agreement, Service
Agreement, etc.
 Definitions

Contract Purchase User Area RFP

Administrator Document The area of the Request For Proposal.
A contract administrator is the role assumed Organization which
A document issued by the
by a collaborator of the Organization, which, in is the final recipient
Organization, prior to the
general terms, consists in fulfilling and of a service or good
beginning of the execution of
enforcing the conditions contained in the purchased.
the business relationship with
Contracts.
the Supplier and the
This role is fundamental for the
Organization.
Organization, because allows us to
operate efficiently and profitably.
 We centralize the
comprehensive
We guarantee the management of the
We guarantee the supply of technical contract through an Management of the relationship with the
Evaluation and
planning of the and non-technical interdisciplinary supplier
selection of suppliers
inventory, looking for material, complying team, guaranteeing
Sourcing strategy in
economic and with customs, its efficient execution
search of cost
adequate levels of logistic and within the current
optimization and
supply, to meet the international legal framework of
innovative ideas We ensure that
transport legal We ensure that all the countries where
needs of aeronautical business
norms in order to our suppliers are we operate.
maintenance in relationships with
meet the needs in subject to risk
aircraft operated by our suppliers are
time and costs of assessments prior to
Avianca. aligned with the
Avianca their engagement in
Our procurement of We attract suppliers Code of Ethics and
order to ensure
goods and services is with whom we other policies of the
transparency against
carried out through a develop strategic and Company.
money laundering
model of purchases of sustainable alliances and/or terrorist
specialized that allow us to financing. Likewise,
categories providing a connect Latin and according to the Contract
broad knowledge at America with the amounts of administration and
the time of world. negotiation, they are purchase
negotiation.
subject to financial management
Logistics and foreign evaluations
trade management measuring their
capacity to respond
in terms of the
contracted service What makes up
Inventory
management
Supply chain
our Supply Chain?
planning
 Duties of the Supplier

Keep under strict Respect in the Avoid using or

Act in good Fully comply with Ensure quality
confidentiality all the workplace fair supporting child
faith in the the conditions of the
information to which employment or forced labor
contractual negotiated or contracted
the Supplier has had practices of their
stage. contractually service and be subcontractors.
access in fulfilling its consistent with
agreed. accountable
services. human rights.
for it.
 I want to be an AVH
Supplier
What should I do?
Those persons, natural or legal, who are interested in
rendering their services or supplying the goods they distribute
or manufacture to any of the companies of Avianca Holdings
must begin the Registration Process

Supplier Right here

Registration
What stages
make up the
registration
process?

Review
Review information
Fill in the Restricted Lists Supplier
Registration Management Registration
Form of Providers Approval
Management of Request for
Supplier Registration Manager /
Providers Ethics and
Director ERP
Invitation Purchasing Compliance
Ethics and (Optional) Registration
to the Supplier
Compliance
Purchasing / (Optional) Purchasing
Registration
(Optional)
Invitation
 Status Description
Not invited A supplier who is in the directory but has not yet been invited
Which are the to fill in the registration form.
A supplier may have this status because it Self-Registered

Status or because only the Supplier Application was made.

available Invited A supplier to whom an email registration invitation was

sent but has not yet initiated the completion of the form.

in the Pending
Approval
A supplier who has already completed and send the
registration form and is in the relevant reviews and

Registration approvals by Avianca.

This status is prior to supplier registration.

Process? Pending
forwarding
A supplier to whom after sending the registration form
some additional information was requested.
Possible status Registered A supplier who completed the Registration process in Ariba and
during the therefore is registered in the ERP.
Registration Registrati A supplier whose application was rejected by Avianca during
on Denied the Registration process.
process are: In the event the supplier wants to register again, the
registration process must be completed from the
beginning.
 Contracting
Formalization*
Responsible:
Request for Supplier and
proposal or Avianca Legal
Area. Creation of
quotation A legal contract is
Supplier Self- Purchase Order /
Stages that Registration Request*

Responsible:
Responsible:
Purchasing
*The provider must
Commercial and
contractual
negotiation
needed only for
purchases /
categories that
require them
Framework
Contract
Responsible: according to the

make up
at least have initiated General Manual for
The supplier registers User Area / Contract Responsible: Responsible:
the Registration Procurement of
in the system. Administrator. Process Purchasing Goods and Services. Purchasing

our
Purchasing Generation of
Release and Delivery of the Pre-invoice Generation Billing
reconciliation of entry
process sending
purchasing
document to
good / provision
of the service
Responsible:
Responsible:
User area /
sheet
Responsible:
Responsible:
Required document:
entry sheet and
Contract User Area / vendor invoice
supplier Supplier. Administrator and Contract
Responsible: Supplier. Administrator.
User area / contract
administrator.

*Subject to approval levels of the Organization

 For billing
What do I have to consider to bill my services?

Requests for services/delivery of
goods are formalized only with
the prior issuance of the
Purchase document by the
company.
Invoices that lack the approval Billing closing dates of the
from the Organization will not be Organization must be taken into
received. Nor those invoices that account.
do not have the Purchase
document, nor the entry sheet
supporting the order from the
Organization.
 To expedite the receipt and accounting records of invoices, we are requiring suppliers:
❑ 1. Printed and legible invoices. Please do not issue invoices totally or partially handmade.
❑ 2. An invoice must be issued per purchase order, please do not group 2 or more purchase
orders on the same invoice. Otherwise, in the invoice detail please add the PO number
corresponding to that invoice line.
❑ 3. Purchase order number printed on the invoice, which will provide you with the user area for the
purchase of the good and/or service.
❑ 4. Line number (or position) and printed entry sheet. This is provided by the user area of the
purchase of the good and/or service.
❑ 5. For framework contract negotiations, indicate the RELEASE number which should be printed
on the invoice next to the PO number (Example: PO 20002 548-5).
❑ 6. If the invoice corresponds to the purchase of goods, provide quantities, description, unit price
and total price.
❑ 7. The reason of issuing the invoice must be clear, identifying whether it corresponds to the
purchase of goods and/or services (Example: purchase of a briefcase ref xxxx; warehouse
maintenance service).
❑ 8. Copy of the purchase order attached to the invoice.
❑ 9. Invoices must be filed no later than the 25th of each month (in the case of a public holiday or
weekend, it must be filed on the previous business day).
Note
• The invoice must comply with the billing requirements established in your country.
• Any difference between the invoice and purchase order (PO) will be cause for return.
If you have any doubt or question, please contact:

Remember Purchase and Payment Support soportecomprasypagos@Avianca.com

*It excludes government suppliers, utilities, fuel, airports, airport services, CGO accounts and all those suppliers

that…
that by contract or local legislation early filing is not allowed.

** In case the indicated date is a holiday in the season or weekend, it must be filed on the previous working day.
 ARE YOU LOCATED IN COLOMBIA OR
COSTA RICA?
AUGUST 2018
From the date we will start issuing and
receiving electronic invoices.
How should you proceed?
1. You must send the electronic invoice to:
Colombia: recepcion.facturas-bog-av@avianca.com
Costa Rica: recepción.facturascr@avianca.com
2. In the subject of the email you must include
the number of the purchase order
3. Attach the XML format with its
corresponding digital format in PDF
Important!
• You must generate an invoice for each
purchase order.
• You should NOT use this email for
concerns about other topics, as they will
NOT be addressed. Receipt dates are
maintained in accordance with AVH
Remember •
policies.
Our technological supplier will provide you
that… with access to your portal so that you can
consult the invoices issued.
YOU ARE LOCATED IN A COUNTRY
OTHER THAN COLOMBIA OR COSTA
RICA?
You must complete the filing process of
the physical invoice in the current points.
How should you proceed?
1. The purchase order number, line
number and entry sheet must be in a
visible and clear place, by hand or pre-
printed.
2. If applicable, provide next to the PO the
No. of Releases (example: PO20002548-
5)
3. The purchase order must be printed
and attached to the invoice.
Important!
• Invoices can only be filed in authorized
offices in the Administrative Center of
Avianca.
• The invoice must comply with
invoicing requirements established in
Art. 617 of the tax statute.
• Failure to comply with the above
parameters will be cause for return.
 What is
an
RFP?
It is a formal document with which the Organization may
request the submission of proposals for procurement
of goods and services.

These standardized documents include business,

technical and contract conditions according to which the
Organization requires to acquire a good or service; the
Annexes to the Document contain business and
technical conditions, while the draft of the contract
attached to each request contains
contract conditions.
What selection criteria
will be taken into
account?
All proposals will be evaluated based on
critical factors for the Organization, jointly
established between the Purchasing area
and the User area; these critical factors may
include, but are not limited to, economic and
technical factors, among others.
When will I be asked
to sign a contract?

A legal contract must be in place for

recurring purchases over USD
$300,000, calculated with the TRM at
the closing of the negotiation. Except
for Purchasing Categories listed in the
Purchasing Master, which in all cases
must be formalized by means of a
written legal contract.
 I have my own
Code of Ethics
Should I abide by the Code of
Ethics of AVH?

By filling in the supplier form, you are simply

declaring to know the Code of Ethics of AVH, and
that the way in which you carry out your corporate
Code of purpose is consistent with the ethical principles of
the industry; this statement does not imply you
are adhering to our Code of Ethics.
Ethics
 The contract negotiation
is already closed,

What is the
next step?
Once the content of the Contract is approved by both parties, the
signing process begins with the sending of the Contract signed by the
Supplier through the ERP, so that the Organization may begin the
processing of internal signatures.

The Organization will preferably handle digital documents to avoid

delays in the collection of signatures and protect the environment by
avoiding the printing of Contracts.
Once the Contract is formalized, the Supplier must send within ten
(10) calendar days the following policy certificates duly
adjusted to Contractual requirements.
The supplier must process the required policies prior to the signing
of the Contract by both parties.
Once the contract is signed,
Who is my point of
Contact?
Once the Contract has been signed by both parties, your
point of contact with the Organization will be the person
appointed by the Organization as Contract Administrator
or User Area, however this information appears in the
Contract in the section of notices or communications.
If I do not sign a legal document If a Legal Document is not signed, the
negotiation will be supported by any of these
What should I take documents, depending on its criticality:

into • Price acceptance with SLA

• Standard PO with SLA
• Standard PO
account?
When will I be asked
to issue Policies?

According to the specificity of the

goods and/or services supplied and
amount of the negotiation, the
Organization, in its discretion, may
request the issuance
of Policies
 If I have been
asked to issue
policies, who
advises me?
If the services will be rendered or goods will be
delivered in Colombia, the policies may be issued
through the insurance broker of the Organization.
For services that will be rendered or goods that will
be delivered outside Colombia, it will be the
responsibility of the Supplier to issue the relevant
policies fulfilling all requirements set forth by the
Organization, which will be verified.
When do I send Once the Policies have been effected, the certificate
issued by the relevant insurance company must be
the policies? sent to the Contract Administrator together with the
proof of payment.

To who? It is the responsibility of the Contract Administrator to

inform the Supplier whether or not the policies
effected are in accordance with the provisions of the
Contract.
My payments
are delayed,
who do I notify?

Your first point of communication

regarding the obligations arising from the
Contract will be the person appointed by
the Organization as Contract
Administrator or User Area, who will be
in charge of channeling your request
with the respective area.
 Penalties were established,

will they be charged

automatically?
No. For the collection of penalties and notification
of any evidenced breach, the Contract
Administrator, on behalf of the Organization, shall
follow a pre-established procedure in which the
Supplier's right to defense is guaranteed.

For this purpose, the Contract Administrator shall

first send a written notification to the Supplier, by
means of which he/she informs the Supplier of
the breach and term to rectify it.
My contract has already The formalization of the end of a contract is carried out through the signing of
the following Certificates, which in every case can be integrated in a single
been executed, document:

How do I 1 Certificate of
Completion
2 Certificate of final
settlement
formalize the
termination?
 What are these
Certificates
for?
The general purpose is to set forth the
conditions in which the Contract was
executed, that the parties declare there are
no outstanding obligations incumbent upon
each of them, and to establish the
mechanisms for the payment of outstanding
obligations.
I need a commercial
certification, who do I
request it from?
Commercial certifications must be
requested following the instructions that
appear in the following link:

Right here
 I need a certificate of taxes withheld,
where do I request it?

Requests for tax certificates (withholding at source of: VAT or similar taxes, municipal and
income taxes) must be made to:

gencertificados.subavh@avianca.com
 Yes. A Supplier Performance Evaluation will be conducted
Will my performance annually by the Supplier Management, in which the Contract
Administrator will be consulted regarding:
be tracked during
Contract execution? - Fulfillment of schedule and agreed quantities.
- Compliance with technical specifications.
- Response capacity.
- Technical Support.
- Added value.
- Risks.