Teradyne - Central Operations Supplier Set-up & Maintenance Purchasing

Assertions

(D)e tectiv e

Cycle Purchasing

Sub-process Objective Supplier Set-up & Supplier set-up and Maintenance maintenance related procedures and policies are properly documented.

Risk Supplier set-up and maintenance procedures may not be followed consistently, which could result in inaccurate or inappropriate Supplier master files. Related party transactions or conflict of interest situations may occur, which increase the potential for errors and irregularities. Also, the company is not necessarily getting the best value for its expenditures.

Description of Control 51050. Up to date Supplier set-up and maintenance related policies and procedures are documented and retained by Central Operations SLM department. Training Doc

Gap/Questions

Answer

(S)yst

Key Control (Yes / No)

Key Fraud Mitigating Control (Yes / No)

Com plete ness Exist ence or O Valu ccurr ation ence or Allo Righ catio ts an n d Ob ligatio Prese n ntatio n&D isclo sure

(P)re venta tive /

em/( M

)anu al Freq uency

Control Type Control Owner

Purchasing

Purchasing

Supplier Set-up & An effective process Maintenance is in place to obtain competitive pricing from Suppliers and pricing strategy is applied consistently across Suppliers and goods prior to establishing new Suppliers. Supplier Set-up & Valid Suppliers have Maintenance been accurately added to the payment processing system.

51051. There are documented policies and procedures in place surrounding the purchase process for inventory parts requiring a niche/sole source Suppliers. SBM-023

Not relevant to inventory items because we use AVL. MRO is managed through the budget process. Standard business practice that is not formally documented.

Purchases may be made 51052. A standard form (New Supplier Add Form) from unauthorized Suppliers. or the equivalent information, is required to be used for new Supplier setup prior to addition of a new Supplier master file. Information on the form includes Supplier tax codes, corporate location, etc. These requests can only be processed if submitted by a buyer or commodity manager. Electronic copies of the requests are retained in a server file for one year, and paper copies in department files, effective 12/8/03. Inappropriate or invalid Supplier master files may exist which could lead to inappropriate payments. 51053. Systemic access to add or update the Supplier Master Files within Oracle PO is limited to authorized personnel. System access restricted to PO Ter Admin, TERPO Supplier Admin

yes

Yes

Authorization

SLM

Purchasing

Supplier Set-up & Valid Suppliers have Maintenance been accurately added to the payment processing system by authorized personnel.

Yes

P D

M S

T Q

X X X

Management Review

BPIT

Control Type Legend Authorization Configuration/account mapping controls Exception reports/edit checks Interface/conversion controls Key performance indicators Management review Reconciliation Segregation of duties System access Control Occurrence Frequency Legend D - Daily W - Weekly M - Monthly Q - Quarterly S - Semi Annual A - Annually T - Transactional based

6/15/2012

Teradyne - Central Operations - Supplier Set up and Maintenance

Objective: To ensure that supplier records within Oracle AP/PO are entered accurately and completely and by authorized personnel. Assertions: Completeness, Rights & Obligations

SLM
Documented policies and procedures surrounding Supplier Set up and Maintenance (51050)(51051)

Accounts Payable

New Supplier or change to existing

Buyer/Planner or CM completes New Supplier Add SBM 109 and submits via email, paper, or fax to SLM. (51052)

Form or equivalent information required for all new suppliers.

Includes tax id information Suppliers are only added at the request of a buyer/ commodity manager. Documented requests are retained in computer or paper file for 1 year.

SLM inputs Supplier Data into Oracle (51053)

System access restricted to PO Ter Admin, TERPO Vendor Admin

Suppliers report reviewed for adds/changes by AP Manager (51005)

See BPIT AARP Subprocess

End of process