Disposal Management

PROCTER & GAMBLE VIETNAM LTD. STANDARD OPERATION PROCEDURE Title: ASSET DISPOSAL MANAGEMENT PROCEDURE. Document no. FA - GJ - 01- 99 Page 1 of 2 Issued date: June-01-1999 Prepared by: Quach Thuy Linh Concurred by : Nguyen Thi Dieu Tran Vu Trong Tai Nguyen Quang Chi Purchasing Manager HR Manager RM Manager Approved by: Phan Quang Truc GL Manager Distribution : All departments REV. No DATE NATURE OF REVISION REVISION DUE 00 New DisposalManagement.doc QTL I-Purpose: Define a process for disposing or scrapping assets to make sure that we are able to control and account for the company’s properties exactly. II- Roles/Responsibilities: 1. Asset originator : prepares Fixed assets disposal order (FADO) or non-fixed assets disposal request and get approvals from proper management. 2. Fixed Assets Accountant (FA Accountant): provides the asset information such as fixed assets or not fixed assets, original cost, net book value,…He or she will make entries to write off it in asset book when receives approved FADO form. 3. Purchasing: seek scrap buyers or disposal contractors, provide cost of reselling based on net book value of fixed assets. 4. Human Resources : concur and recommend addresses for donation. 5. Risk management : concur on physical disposal method to make sure it is safe after physically disposed process. III- Authorization level: Level of approvals should be consistent with Delegation of Authority policies ( Expense receipt column in Authorization limits list if it is non-fixed assets). Approval of FADO should be signed by Board of Directors to comply with Vietnamese regulation. IV- Procedure: 1. Identify disposed assets and prepare request form The originator will check with FA accountant by email to clarify whether asset is fixed asset or not. - If it is fixed asset, the originator will fill in FADO form with assets’ specifications, accounting status provided by FA accountant and get authorized approval. The fixed assets regarding to production line must get approvals of TSO or Operation Manager. - If it is not fixed asset, the originator will fill in Asset disposal request and get authorized approval. Please be noted that disposal methods must be concurred by Risk Management. 2. Issue disposal request PROCTER & GAMBLE VIETNAM LTD. STANDARD OPERATION PROCEDURE Title: ASSET DISPOSAL MANAGEMENT PROCEDURE. Document no. FA - GJ - 01- 99 Page 2 of 2 Issued date: June-01-1999 Prepared by: Quach Thuy Linh Concurred by : Nguyen Thi Dieu Tran Vu Trong Tai Nguyen Quang Chi Purchasing Manager HR Manager RM Manager Approved by: Phan Quang Truc GL Manager Distribution : All departments REV. No DATE NATURE OF REVISION REVISION DUE 00 New DisposalManagement.doc QTL -The originator (if Asset disposal request) or FA accountant (if FADO form) transfers a copy of disposal request to Purchasing ( if selling), Human Resources ( if donation) or Risk management (if scrapping). - The original copy of FADO form will be kept by FA accountant in order to make entries writing off fixed asset in Asset book. 3. Physical disposition - The originator will collect sales contract from Purchasing( if selling), support documents( received voucher or receipt) from HR ( if donation) or confirmation from Risk management ( if scrapping). Then the originator will inform to FA accountant after the asset is physically disposed . - The originator is responsible for the whole disposal process and make sure the asset is already taken out of company. - AR miscellaneous accountant makes entries for collecting money from selling . This SOP will be effective from June 01 st , 1999. . fill in Asset disposal request and get authorized approval. Please be noted that disposal methods must be concurred by Risk Management. 2. Issue disposal request. REVISION DUE 00 New DisposalManagement.doc QTL -The originator (if Asset disposal request) or FA accountant (if FADO form) transfers a copy of disposal request