Programme and Operations
Policies and Procedures
Search
icon-language English icon-global Locations
Policy Areas

Programme and Project Management

Crisis Response

Financial Resources Management

Human Resources Management

Procurement

Partnerships

Administrative Services

Accountability

Information and Communications Technology

Security

Acquisition and Maintenance (Plant and Property)

Acquisition and Maintenance (Leasehold Improvements)

Acquisition and Maintenance (Furniture and Equipment)

Accounts Receivable

Accounts Payable

Accountability System Policy

Abandonment of Post

Receipt of Goods, Services and Works

1
Step

Raise PO to acquire the goods, services and works.
Responsible Party
Template/Guideline
Explanatory Notes

For non-PO invoice, offices are not required to enter a receipt date in Quantum, however, the offices are required to make sure the payment are processed in the correct accounting period.

2
Step

Deliver goods, render services and perform the works.
 
Responsible Party

Supplier

Template/Guideline
Explanatory Notes

Shipment of the goods according to the contract and INCOTERMS 2020. Render the services and perform the works according to the contract.

Ensure all the relevant supporting documents are provided to the buyer.

Liaise with the Buyer on contract management issues (if delivery is not according to the procurement contract).

3
Step

Delivery of goods.
 
Responsible Party

Shipment Carrier (If applicable)

Template/Guideline
Explanatory Notes

Physical delivery of the goods to the specified location.

4
Step

Certify the receipt of the shipment and inspect goods.
Responsible Party

Shipment Carrier (If applicable)

Template/Guideline
Explanatory Notes

Certify the receipt of the shipment. Proceed with the delivery to UNDP and forward the supporting documentation such as delivery note, bill of landing, shipping bills, insurance papers to UNDP.
 

5
Step

Physically receive the goods, services and works.
Responsible Party
Template/Guideline
Explanatory Notes

Buyers exercise their procurement role on behalf of Project Managers and other clients. To achieve segregation of duties, the Buyer must not perform the receipts of goods, services or works in the Quantum.

6
Step

Review supporting documentation.
Responsible Party
Template/Guideline
Explanatory Notes

Review supporting documentation such as GRN, shipping documents, custom clearance, insurance etc. Follow up with both the Supplier and Shipment Carrier if necessary.

7
Step

Notify requester, project manager and finance.
Responsible Party
Template/Guideline
Explanatory Notes

Notify the requester/project manager about the shipment, so that the requester knows when to expect the physical receipt of the goods.
Forward the invoice and payment information to finance unit for payment to the Supplier.

8
Step

Enter a receipt in Quantum to record event when goods and services are received by UNDP in accordance with the terms and condition set out in the contract or PO. 
Responsible Party

Project Manager

Template/Guideline
Explanatory Notes

Managers may delegate this function to other project staff. Where the volumes are significant, this delegation should be in writing and should be copied to the Operations Manager, so that the Finance unit is aware of the delegation.

The office has two options for receipting in Quantum:

  • The Project Managers (or his/her designate) documents receipt on the Goods Received Note (GRN), and forwards the GRN to the Finance unit to record, in Quantum, receipt of goods, services or works.
  • Project Manager (or designate) directly record receipt of goods, services and works in Quantum after verifying.

It is important that the receipts be entered promptly in Quantum when the goods and services are actually received. It is mandatory to enter receipts in Quantum within 48 hours of actual receipt of goods and services, so that the expense and asset recognition is done correctly in accordance with UNDP accounting policy.

When UNDP procures "services", receipts must be entered in Quantum on the date when services are a properly rendered according to the contract and accepted. For services such as individual contracts (IC), it is important to enter receipts when actual deliverables are achieved against milestones, if any, defined in the contract, e.g. submission of reports, assessments, certain number of hours etc. If the contract runs for a longer period of time, but several deliverables or payments are agreed upon, then receipts occur at each deliverable. For instance, for a six-month IC with monthly payments for which a PO has been raised, a portion equivalent to the monthly payment needs to be received each month before the payment of the IC. 

Prompt receipt of goods in Quantum also determines when to capitalize an item (for capital assets) and also facilitates evaluation of supplier performances. 

Careful attention to Incoterms under which goods are being procured is required, as this will also dictate the date when the receipts are to be entered in Quantum. For example, if the goods are being procured under FOB-shipping point basis, then the risk of losses during the shipping is transferred to UNDP as soon as the supplier hands over the goods to the shipper. Thus, the "receipt date" on which the goods are deemed to be received by UNDP will be the date when goods were handed over to the shipper. A receipt must be entered in Quantum immediately even though the actual goods have not arrived at the destination. However, a physical verification of such goods on actual arrival must be carried out, recorded and supporting documents uploaded to the Quantum procurement receipt application. 

Construction works (collectively, "Works") need to be received/recorded at the stage when milestones, according to the contract, are completed and accepted by the UNDP as part of the regular project monitoring activities.

Refer to the policy in regard to the receipt date for different Incoterm.

INCOTERMS 2020

International Commercial Terms

9
Step

Create partial receipts in Quantum.
Responsible Party

Project Manager

Template/Guideline
Explanatory Notes

Partial receipts can be created in Quantum when the goods and services are being delivered progressively rather than all at once.

10
Step

Forward the receipt and shipping information to the Buyer for reference if everything is in order.
Responsible Party
Template/Guideline
Explanatory Notes

If the inspection shows any reason for complaint, the contract management sub-process is activated (liaison with Buyer, Supplier, shipment carrier and insurance company, as required).

UNDP-supported Guarantees Procedures

1
Step
Guarantee Origination:  CO identifies opportunity to use guarantee, conducts initial diagnostic, drafts concept note and initiates country risk assessment, consulting with the GPN and Guarantees Project Team as required, and submits proposal for review.
Responsible Party

CO in consultation with GPN & Guarantees Project Team

Template/Guideline
Explanatory Notes
Guarantees Project Team is a dedicated project team established to support the initial phases of roll out of the guarantees policy.

2
Step
Review guarantee proposal, including the diagnostic, evidence of positive impact and country risk assessment. Approve or request CO to revise and resubmit.
Responsible Party

Finance Sector Hub &GPN

Template/Guideline
Explanatory Notes

3
Step
Conducts financial and programmatic structuring of the guarantee, including appropriate exit strategy, pricing based on credit risk assessment of the lending portfolio and cost recovery, consulting with the Guarantees Project Team and GPN as required. Guarantees Project Team reviews the guarantee structure, including proposed pricing and cost recovery, and requests CO to modify if necessary
Responsible Party
Template/Guideline
Explanatory Notes

​

4
Step
Initiate identification, screening (including initial due diligence and credit risk assessment), selection and engaging of lender(s) and guarantee issuer in consultation with Guarantees Project Team and BMS/OFM Treasury.
Responsible Party

CO in consultation with Guarantees Project Team & BMS/OFRM Treasury

Template/Guideline
Explanatory Notes

5
Step
Conduct solicitation process for guarantee issuer. Provide advice, review and clearance for lender(s) selection. Provide advice on due diligence and credit risk assessments, as required. Initiate formal agreement process with guarantee issuer.
Responsible Party

BMS/OFRM Treasury

Template/Guideline
Explanatory Notes

6
Step
Conduct initial due diligence and credit risk assessment of lender(s) and guarantee issuer, consulting with Treasury as required. Assess if OK to proceed with guarantee. If not OK, reject guarantee proposal and notify CO.
Responsible Party

Guarantees Project Team

Template/Guideline
Explanatory Notes
Due diligence on borrowers is conducted by lender(s). 

7
Step
Modify financial and programmatic structuring, if necessary, in consultation with Guarantees Project Team and GPN, and submit guarantee documentation (agreements) for review. 
Responsible Party
Template/Guideline
Explanatory Notes

8
Step
Review guarantee arrangement, advise on legal and other issues/risks of the guarantee, and approve or reject the guarantee arrangement. For exceptional cases, Treasury escalates the guarantee to the Credit Risk Committee and CFO for review.
Responsible Party
Template/Guideline
Explanatory Notes
Refer to paragraph 49 for examples of cases that must be escalated to the Credit Risk Committee for review and approval.

9
Step
Credit Risk Committee and CFO review exceptional cases and approve/reject or escalate to Enterprise Risk Management (ERM) committee for final decision. 
Responsible Party

Credit Risk Committee & CFO, followed by ERM Committee

Template/Guideline
Explanatory Notes
Credit Risk Committee will be advised and supported by the Guarantees Project Team

10
Step
If guarantee agreement is cleared, record the guarantee and assign guarantee funds to the escrow account
Responsible Party

Treasury,

BMS/GSSU and BMS/OFRM Treasury

Template/Guideline
Explanatory Notes

11
Step
Conduct ongoing programmatic and financial monitoring, reporting and oversight of guarantees.
Responsible Party

CO, GPN, Finance Sector Hub, Guarantees Project Team, BMS/OFRM Treasury, Credit Risk Committee, ERM Committee

Template/Guideline
Explanatory Notes
Includes providing donor reporting and refunds where required by financing agreements.

Framework of Accountability for Security

1
Step

Provide guidance to UNDP managers and personnel on key UNSMS/UNDP security responsibilities
 
Responsible Party

Programme and Project Managers UNDP, UNV, UNCDF,

Security Focal Point,

Resident Representative

Template/Guideline

UNDP Security Framework of Accountability (FoA) Explainer

Explanatory Notes

All to familiarize themselves with security responsibilities inherent to their respective roles.
 
Subscribe to