0207_050 by jakianur

VIEWS: 4 PAGES: 12

									Saudi Aramco 7180 (5/89)
                                                                                    G.I. NUMBER              Approved
                                                                                                   207.050
 SAUDI ARABIAN OIL COMPANY (Saudi Aramco)
 GENERAL INSTRUCTION MANUAL                                                         ISSUE DATE        REPLACES
 ISSUING ORG.     ACCOUNTING, POLICY, METHODS & SYSTEMS DEPT.                          09/13/1995        05/04/1993
 SUBJECT:         FORM SA 630- CAPITAL ASSETS CHANGE                                APPROVAL          PAGE NUMBER
                  AUTHORIZATION                                                           YMO            1   OF   12


         CONTENT:
         This instruction outlines the use, preparation, processing, and routing of Form 630, Capital Assets Change
         Authorization. The text includes:

                  1.        Glossary
                  2.        Use of Form 630
                  3.        Responsibility for Preparation
                  4.        Preparation of Form 630
                  5.        Approvals
                  6.        Receipt Action
                  7.        Review of Capital Assets in Reclamation
                  8.        Routing of Form 630

                            Attachment I- Form 630
                            Attachment II- Final Distribution of Form 630

         1.0      GLOSSARY:
                  1.1      ABBREVIATIONS AND ACRONYMS

                            AI             Accounting Instruction
                            AM&WPYD        Al-Midra and West Pipe Yard Division, NASD
                            BI             Budget Item
                            DASD           Dhahran Area Storehouse Department
                            CEO            Chief Executive Officer
                            ER             Expenditure Request
                            EXCOM          Executive Committee of the Company
                            FAU            Fixed Assets Accounting Unit/FAWIP
                            FAWIP          Fixed Assets & Work-In-Progress Accounting Department
                            GI             General Instruction
                            MCD            Materials Control Department
                            MI             Materials Instruction
                            MSD            Materials Standardization Division/MCD
                            MSO            Materials Supply Organization
                            P&RD           Preservation & Reclamation Division, DASD
                            R&DCU          Returns & Documents Control Unit, P&RD
                            SAMS           Saudi Aramco Material System
                            SU             Sales Unit/SO
                            SO             Storehouse Operations

                  1.2      GENERAL INSTRUCTION



* CHANGE                   ** ADDITION            NEW INSTRUCTION            COMPLETE REVISION X             12
Saudi Aramco 7180 (5/89)
                                                                                            G.I. NUMBER               Approved
                                                                                                          207.050
 SAUDI ARABIAN OIL COMPANY (Saudi Aramco)
 GENERAL INSTRUCTION MANUAL                                                                 ISSUE DATE         REPLACES
 ISSUING ORG.     ACCOUNTING, POLICY, METHODS & SYSTEMS DEPT.                                  09/13/1995         05/04/1993
 SUBJECT:         FORM SA 630- CAPITAL ASSETS CHANGE                                        APPROVAL           PAGE NUMBER
                  AUTHORIZATION                                                                   YMO             2   OF   12


                            207.060          Physical Inventory of Fixed Assets


                  1.3      MATERIAL INSTRUCTIONS

                            355.310          Standby Equipment - SAMS Class 19
                            365.600          Storing & Disposing of Capitalized Plant and Equipment
                            399.600          Saudi Aramco Trade-In Sales of Capital Plant and Equipment

                  1.4      ACCOUNTING INSTRUCTIONS

                            206              Accounting For Disposition of Capital Assets
                            208              Accounting For Auction Materials & Equipment
                            320              Accounting For Trade-In Sales.

         2.0      USE OF FORM 630:
                  Form 630 is the basic document for notifying and approving changes in assignment of responsibility
                  for capital assets.

                  Proponents wishing to dispose of office furniture and equipment should, by referring the items to the
                  Office Services Department, determine if there is a corporate need for such items prior to disposal.

                  The following types of action will be recorded on SA-630:

                  2.1      DISPOSAL FOR FINANCIAL CONSIDERATION

                           When capital assets are considered saleable by the SU/SO.
                           2.1.1 Includes assets sold to outsiders. (Surplus to known Company requirements).
                           2.1.2   Includes trade-in of old Capital assets (see MI 399.600 and AI 320).
                           2.1.3   Financial consideration is defined as receipt of money or equivalent which, under the cir-
                                   cumstances and from the viewpoint of good business standards, represents a reasonable
                                   monetary realization.

                  2.2      CAPITAL ASSETS PLACED IN CUSTODY OF THE P&RD/DASD

                           2.2.1   Includes assets held for storage and protection only. The assets have potential future use
                                   to the organization requesting storage.
                           2.2.2   Includes assets held for storage and eventual transfer. The assets have potential future
                                   use within Saudi Aramco.
                           2.2.3   Includes assets held for disposal to Reclamation for salvage or scrapping. The assets


* CHANGE                    ** ADDITION             NEW INSTRUCTION                 COMPLETE REVISION X               12
Saudi Aramco 7180 (5/89)
                                                                                            G.I. NUMBER               Approved
                                                                                                          207.050
 SAUDI ARABIAN OIL COMPANY (Saudi Aramco)
 GENERAL INSTRUCTION MANUAL                                                                 ISSUE DATE         REPLACES
 ISSUING ORG.     ACCOUNTING, POLICY, METHODS & SYSTEMS DEPT.                                  09/13/1995         05/04/1993
 SUBJECT:         FORM SA 630- CAPITAL ASSETS CHANGE                                        APPROVAL           PAGE NUMBER
                  AUTHORIZATION                                                                   YMO             3   OF   12


                                   have no potential future use and are not considered saleable by SU/SO. Refer to Para-
                                   graph 2.5 below.



                  2.3      CAPITAL ASSETS TRANSFER FROM ONE DEPARTMENT OR LOCATION TO
                           ANOTHER

                           2.3.1   For standby equipment refer to MI 355.310.

                  2.4      CAPITAL ASSETS RETIREMENT IN PLACE

                           This action represents a retirement, from the financial records only, of assets which can no
                           longer be economically used in Company operations. The assets are taken out of service with no
                           intent to subsequently abandon or dispose of them and they remain in the proponent's custody
                           and control. For more detail about retirement, refer to AI 206.
                            2.4.1 A memo asset record will remain in the Fixed Asset Accounting System and will show
                                    on the perpetual inventory program reports until the time of disposal.
                           2.4.2   Any subsequent decision to abandon or dispose of retired assets (other than for financial
                                   consideration) is to be considered a disposal without financial consideration. The ap-
                                   proval authority required is based upon the net book value of the asset at the time of re-
                                   tirement. The proponent organization must prepare a Form 630 specifying the plant,
                                   equipment or buildings involved, and Form 630 numbers used when the asset was re-
                                   tired. FAWIP will obtain any higher approval authority signatures required for the pro-
                                   posed action.
                           2.4.3   A subsequent decision to sell retired assets must follow the approval procedure for dis-
                                   posals for financial consideration. Refer to Para. 5.
                           2.4.4   Cannibalizing an asset is treated as a normal retirement for approval authority purposes.
                                   However, the book value of the cannibalized asset is charged to the proponent operating
                                   expense account as direct charge materials instead of depreciation expense.

                  2.5      DISPOSAL WITHOUT FINANCIAL CONSIDERATION

                           2.5.1   All proposed actions resulting in abandonment, demolishing, giving away, or otherwise
                                   disposing of Company capital assets without financial consideration when the net book
                                   value of any one disposition is $100,000 or more (regardless of net salvage value) re-
                                   quires approval of the Board of Directors or EXCOM. Such approval is also required
                                   when the net book value of any one disposition is under $100,000 if the net salvage value
                                   is not nominal. The President & CEO has the authority to decide what could reasonably
                                   be considered as nominal under the circumstances. For practical purposes 'nominal' is
                                   regarded as assets having net salvage value of $1000 or less.
                           2.5.2   The President & CEO and each Executive Vice President has authority to abandon, de-
                                   molish, give away, or otherwise dispose of Company capital assets without financial
                                   consideration provided the asset has only nominal or no net salvage value to the Compa-


* CHANGE                    ** ADDITION             NEW INSTRUCTION                 COMPLETE REVISION X               12
Saudi Aramco 7180 (5/89)
                                                                                             G.I. NUMBER               Approved
                                                                                                           207.050
 SAUDI ARABIAN OIL COMPANY (Saudi Aramco)
 GENERAL INSTRUCTION MANUAL                                                                  ISSUE DATE        REPLACES
 ISSUING ORG.     ACCOUNTING, POLICY, METHODS & SYSTEMS DEPT.                                   09/13/1995        05/04/1993
 SUBJECT:         FORM SA 630- CAPITAL ASSETS CHANGE                                         APPROVAL          PAGE NUMBER
                  AUTHORIZATION                                                                    YMO             4   OF   12


                                   ny and the net book value of the asset does not exceed $100,000 at the time of disposi-
                                   tion.
                           2.5.3   When it is demonstrably in Saudi Aramco's best interests, e.g., site clearance, the capital
                                   assets may be given to an outside person or agency in return for removal and disposal.
                                   Based upon the net salvage value concept, this is not considered a disposal for financial
                                   consideration, i.e., estimated Saudi Aramco costs of removal and disposal equals, or ex-
                                   ceeds, potential proceeds.
                           2.5.4   This categorization includes assets lost or missing, due to known or unknown causes.

         3.0      RESPONSIBILITY FOR PREPARATION:
                  The capital asset custodian is responsible for the preparation of Form 630. After releasing the asset, he
                  should also ensure, by monitoring the relevant asset records, that the transfer or disposal has been
                  correctly recorded to reflect his release of that asset. For more details, refer to G.I. 207.060.

         4.0      PREPARATION OF FORM 630:
                  Preparation of Form 630 (Attachment I) is explained below. There is no R&DCU and SU involvement
                  for a direct transfer between user departments or retirements in place and steps relative to their
                  functions may be ignored in such cases. The following blocks are to be filled in by:

                  4.1      The Originator prepares Form 630 and submits to R&DCU to decide a disposal action (see MI
                           365.600). The originator then prepares another separate Form 630 according to the different
                           disposal actions R&DCU advises (see 4.2 below). Assets with the same recommended disposal
                           action can be put on the same Form 630. The following letters "A" through "Q" can be cross-
                           referenced to the sample Form 630 (Attachment I).

                            A       Is self-explanatory but see also 4.2.A.
                            C       Shows the originator's name, department, division, location, Saudi Aramco box
                                    number, telephone number, and date of preparation.
                            D       Shows the present department, organization code and location of the capital assets and
                                    the new department, and location.
                            F       Explains the reason for action requested. Clarifies the type of change action required
                                    above. Indicates whether item(s) will be replaced by new or similar asset, stating the
                                    job order number. When the asset retirement, disposal, or sale is related to asset safety
                                    risk, unsuitability factors, inherent defects, etc., this fact must be clearly stated.
                                    Should the action requested cancel or replace a previous action, this must be clearly
                                    stated, and the previous Form 630 control number referenced.
                            G       Shows BI/ER number if disposal of the asset is specifically indicated in an approved
                                    expenditure request.
                             H      Shows completed asset description.           Includes model and serial numbers,
                                    manufacturer's name, size, capacity, dimensions, accounting plant number, and


* CHANGE                   ** ADDITION              NEW INSTRUCTION                  COMPLETE REVISION X               12
Saudi Aramco 7180 (5/89)
                                                                                           G.I. NUMBER               Approved
                                                                                                         207.050
 SAUDI ARABIAN OIL COMPANY (Saudi Aramco)
 GENERAL INSTRUCTION MANUAL                                                                ISSUE DATE         REPLACES
 ISSUING ORG.     ACCOUNTING, POLICY, METHODS & SYSTEMS DEPT.                                 09/13/1995         05/04/1993
 SUBJECT:         FORM SA 630- CAPITAL ASSETS CHANGE                                       APPROVAL           PAGE NUMBER
                  AUTHORIZATION                                                                  YMO             5   OF   12


                                    engineering plant number as applicable. Indicates physical factors, whether asset is
                                    operable or not and whether or not all components are in place.
                                    For items approved for retirement, disposal, or sale it indicates if a subsequent onward
                                    transfer (if any) to a potential Saudi Aramco user is authorized or not - items are not
                                    transferable without this approval.
                            J       The originator secures signature approvals up to Department Manager level (the
                                    normal level of transfer approval required). See paragraph 5.2 regarding subsequent
                                    approvals.
                            K       If appropriate, insert R&DCU supplied reference.
                            P       When an asset is transferred directly to another user, the originator must obtain the
                                    signature, telephone number, date, job title, and organization code of the person
                                    receiving the transferred item on behalf of his organization and the engineering plant
                                    number where the asset will be located.
                            Q       When an asset is moved to Reclamation or the sales location for storage, sale, transfer,
                                    or other disposal, the originator will obtain the signature, date, telephone number, and
                                    job title of the person receiving the item on behalf of his organization.

                  4.2      R&DCU/P&RD

                            A       After reviewing asset details provided by the originator (on all actions except direct
                                    inter-departmental transfers, retirements-in-place, and trade-in sales) R&DCU
                                    recommends, after liaison with SU, whether items can be sold and moved to a sales
                                    location, sold in place, abandoned, disposed of to Reclamation for salvage or scrap; or
                                    transferred to Reclamation for storage or transfer to another user.
                            I       Reviews the description and physical condition of the items and may add any
                                    information to the Form 630 that they consider appropriate.
                            K       Assigns a reference number for internal control purposes and informs the originator.
                            M       Signs each Form 630 in the space provided.

                  4.3      SU/SO

                            E       Reviews every Form 630 (except retirements in place, storage and direct transfers) for
                                    confirmation of recommended disposal action as per para. 8.1.2 and signs each form
                                    in the space provided.


                  4.4      FAU/FAWIP

                            B       Assigns and places control numbers on Form 630.
                            L       Completes the blocks requiring cost and other financial data (those marked "To Be
                                    Filled In by Accounting").
                            N       Routes Form 630 to appropriate approval authorities to obtain signatures. See
                                    paragraph 5.2.


* CHANGE                   ** ADDITION             NEW INSTRUCTION                 COMPLETE REVISION X               12
Saudi Aramco 7180 (5/89)
                                                                                             G.I. NUMBER               Approved
                                                                                                           207.050
 SAUDI ARABIAN OIL COMPANY (Saudi Aramco)
 GENERAL INSTRUCTION MANUAL                                                                  ISSUE DATE        REPLACES
 ISSUING ORG.     ACCOUNTING, POLICY, METHODS & SYSTEMS DEPT.                                   09/13/1995         05/04/1993
 SUBJECT:         FORM SA 630- CAPITAL ASSETS CHANGE                                         APPROVAL          PAGE NUMBER
                  AUTHORIZATION                                                                    YMO             6   OF   12


         5.0      APPROVALS:
                  Approvals on Form 630 with respect to any single item are based on book cost (retirement) or book
                  value (disposal for financial/without financial consideration), as appropriate, in accordance with the
                  Automated Approval Authority System. The authority required for multiple items (resulting from a
                  disposal without financial consideration, retirement-in-place, or sale) which is regarded as a single
                  action is based on the book cost or book value of the total action, rather than the individual items or
                  components.

                  5.1      The originator obtains his Division/Department head approval, see paragraph 4.1(J).

                  5.2      FAWIP obtains any higher approval authority signatures (up to Chief Executive level)
                           necessary for sale, retirement, or disposal without financial consideration of the asset in
                           accordance with the Automated Approval Authority System by routing Form 630 to appropriate
                           approval authority, see paragraph 4.4 (N).

                  5.3      A proposal to dispose of capital assets without financial consideration that requires the approval
                           of the Board of Directors or EXCOM is developed by the custodian department or organization.
                           The proposal is submitted to the Management Committee by the custodian's Business Line Head
                           who acts as the proponent. After review by the Management Committee the proposal is
                           submitted to the Board of Directors or EXCOM for their review and approval. See paragraph
                           2.5.

                  5.4      The physical disposal of capital assets for financial consideration is the responsibility of the SU
                           (as is the sale of former capital assets as scrap).

                  5.5      Additional approval is not required when an ER specifies that the disposal of existing capital
                           asset is included within the scope of the ER, provided the authority for the ER is at least
                           equivalent to that required by the Automated Approval Authority System. The ER should state
                           the value of the disposal if it is without financial consideration and the Net Book value exceeds
                           $100,000.

                  5.6      Subsequent cancellation of an approved action requires the same approval level as was required
                           when the initial action was approved. When retirement or disposal actions were approved by
                           the Board of Directors or EXCOM, FAWIP will be notified of the cancellation by letter.



                           NOTE: See the provision of paragraph 4.1 (H) regarding onward transfer of retirement,
                                disposal, or sale of assets. Items designated as non-transferable are subject to the above
                                guidelines.




* CHANGE                    ** ADDITION              NEW INSTRUCTION                 COMPLETE REVISION X               12
Saudi Aramco 7180 (5/89)
                                                                                           G.I. NUMBER               Approved
                                                                                                         207.050
 SAUDI ARABIAN OIL COMPANY (Saudi Aramco)
 GENERAL INSTRUCTION MANUAL                                                                ISSUE DATE         REPLACES
 ISSUING ORG.     ACCOUNTING, POLICY, METHODS & SYSTEMS DEPT.                                 09/13/1995         05/04/1993
 SUBJECT:         FORM SA 630- CAPITAL ASSETS CHANGE                                       APPROVAL           PAGE NUMBER
                  AUTHORIZATION                                                                    YMO           7   OF   12


                  5.7      The reinstatement of asset records previously written-off as lost or unlocated but now found is
                           subject to the original custodian manager approval only. For more detail about reinstatement of
                           capital assets, refer to AI 206.

         6.0      ECEIPT ACTION:
                  The originator is responsible for implementing capital assets changes when the approved Form 630 is
                  returned to him. He will obtain a dated signature in the appropriate block titled "Equipment For Direct
                  Transfer Only" or "Equipment For Storage/Transfer/Sale/Reclamation" from the recipient or custodian
                  to whom the items have been transferred. The receiver's job title, date of receipt, and telephone
                  number should be shown and include the organization code and engineering plant number for direct
                  transfers.

                  6.1      For capital assets moved to a sales location, the SU is responsible for notifying FAU of receipt
                           of assets for auction and later the final disposition (See AI 208).

                  6.2      For capital assets moved to Reclamation, the R&DCU is responsible for returning the completed
                           Form 630 to FAU indicating the appropriate action taken.

                  6.3      Receipt of capital asset into the auction, reclamation, or storage yards and the return of Form
                           630 for direct transfer should be accomplished within 90 days of the Form being received by the
                           originator from FAU with the proper approval actions completed.

                  6.4      If FAU does not receive notification that the action is complete by the end of the 90 day period,
                           they will initiate follow-up procedures as follows:

                           6.4.1   First follow-up to originator, copy to the custodian Manager.
                           6.4.2   If no response received by the end of 30 days after the first follow-up, send second fol-
                                   low-up to the custodian Manager, copy to the General Manager or Vice President.
                           6.4.3   If no response received by the end of 30 days after the second follow-up, send third fol-
                                   low-up to the General Manager or Vice President.

                                   NOTE: FAU will not follow-up on Form 630 when the item is not included in the
                                         Fixed Assets records.

         7.0      REVIEW OF CAPITAL ASSETS HELD BY P&RD FOR STORAGE OR
                  TRANSFER, OR BY THE SALES UNIT FOR SALE:
                  7.1      P&RD provides FAU with a quarterly list of capital assets held in Reclamation's custody as
                           authorized by approved Forms 630.



* CHANGE                   ** ADDITION              NEW INSTRUCTION                 COMPLETE REVISION X              12
Saudi Aramco 7180 (5/89)
                                                                                             G.I. NUMBER               Approved
                                                                                                           207.050
 SAUDI ARABIAN OIL COMPANY (Saudi Aramco)
 GENERAL INSTRUCTION MANUAL                                                                  ISSUE DATE        REPLACES
 ISSUING ORG.     ACCOUNTING, POLICY, METHODS & SYSTEMS DEPT.                                   09/13/1995         05/04/1993
 SUBJECT:         FORM SA 630- CAPITAL ASSETS CHANGE                                         APPROVAL          PAGE NUMBER
                  AUTHORIZATION                                                                    YMO             8   OF   12


                  7.2      If assets are marked for storage or transfer development on the Form 630, the assets are only
                           stored by Reclamation for 12 months unless the originator of the form requests an extension of
                           the storage facilities before the initial 12 month period has expired. For more details, refer to
                           M.I. 365.600.

                  7.3      Subject to paragraph 4.1 (H) of this Instruction, if a capital asset held in the Auction Yard is
                           required by Saudi Aramco user, the SU prepares an additional Form 630 referencing the original
                           Form 630, obtains the Sales Agent's signature and the new proponent's signature, and sends the
                           receipted Form 630 to FAU to amend the Fixed Assets records.

                  7.4      If a capital asset held in the Auction Yard for sales development purposes cannot be sold, the
                           originator is requested to prepare a new Form 630 for scrapping (disposal without financial
                           consideration) in accordance with the terms of this Instruction. The new Form 630 must be
                           referenced with the control number of the "For Sale" Form 630.

         8.0      ROUTING OF FORM 630:
                  8.1      For all capital assets changes apart from direct transfers, retirements, and trade-in sales, the
                           routing Form 630 is as follows:

                           8.1.1   Originator prepares Form 630 and forwards to R&DCU.
                           8.1.2   R&DCU visits the site to determine the physical condition of the asset and, after liaison
                                   with the SU, advises originator of disposal action by entering the disposal recommenda-
                                   tion in the 'Remarks' block.

                  8.2      Originator prepares additional Form 630 (if necessary) according to the directions of R&DCU,
                           obtains proponent approval, R&DCU reference number and signed approval, detaches bottom
                           (white copy), and disposes of the rest of the set as follows:

                           8.2.1   For retirement in place, direct transfer, or trade-in sales, forwards to FAU;
                           8.2.2   For all other disposal actions forwards to R&DCU for verification and, if necessary,
                                   transmission to SU.

                  8.3      If "For Sale", the SU annotates the Form 630 appropriately and includes the date and type of
                           proposed sale.

                           8.3.1   SU retains a photo copy for record purposes and forwards the Form 630 to FAU.

                  8.4      FAU reviews the Form 630 for completeness of required information and returns the Form 630
                           to the originator if the required information is incomplete. If the required information is
                           complete:

                           8.4.1   FAU assigns control number and logs in control register.


* CHANGE                   ** ADDITION              NEW INSTRUCTION                  COMPLETE REVISION X               12
Saudi Aramco 7180 (5/89)
                                                                                              G.I. NUMBER               Approved
                                                                                                            207.050
 SAUDI ARABIAN OIL COMPANY (Saudi Aramco)
 GENERAL INSTRUCTION MANUAL                                                                   ISSUE DATE         REPLACES
 ISSUING ORG.     ACCOUNTING, POLICY, METHODS & SYSTEMS DEPT.                                    09/13/1995         05/04/1993
 SUBJECT:         FORM SA 630- CAPITAL ASSETS CHANGE                                          APPROVAL           PAGE NUMBER
                  AUTHORIZATION                                                                     YMO             9   OF     12


                           8.4.2   FAU inserts accounting data. Where the asset is to be sold, the book value will be cal-
                                   culated as of the date of the proposed sale. Where installation and foundation costs are
                                   recorded, the book value of these will be calculated as of the Form 630 date. These val-
                                   ues will be recorded separately on the Form 630.
                           8.4.3   FAU indicates whether foundation and installation costs are to be retired.
                           8.4.4   FAU routes any Form 630 that requires additional approval authority and obtains the
                                   necessary signature (See Para 5.2 of this Instruction).
                           8.4.5   FAU retains blue copy for follow up action.
                           8.4.6   For sale or disposals, FAU sends original + 4 copies (green, pink, yellow, and gold) of
                                   Form 630 to the MSD/MCD who reviews within 4-6 weeks the equipment for possible
                                   effect on spare part stock holdings in SAMS (e.g. if spare parts are held in SAMS for a
                                   particular piece of asset and the asset is sold, then the spare parts are excess). MSD/MCD
                                   sends the original + 3 copies (green, pink, and yellow) of Form 630 to the Originator.
                           8.4.7   For sales other than trade-in sales, FAU sends photo copy of Form 630 to the SU.
                           8.4.8   For trade-in sales, FAU sends the original and remaining copies of Form 630 to the SU.
                           8.4.9   For sales in place, FAU keeps pink copy and forwards original and green copies to SU.
                                   FAU records change of custodian in asset records at this point. Yellow copy is sent to
                                   originator with a covering memo.

                  8.5      For capital assets designated for Reclamation or sale (other than trade-in sales and sales in
                           place), the originator forwards the asset as per Form 630 with the original and three copies
                           (green, pink and yellow) to:

                           8.5.1   The nearest Reclamation Yard when items are to be stored, transferred, salvaged, or
                                   scrapped.
                           8.5.2   The Auction Yard when items are to be sold. (if sold-in-place Form 630 is sent to SU)

                  8.6      The Receiving Function of the nearest Reclamation Yard/Auction Yard:

                           8.6.1   Returns the yellow copy of Form 630 to the originator to confirm receipt of the asset.
                           8.6.2   Sends the pink copy of Form 630 to the FAU in case of sales action only. In case of
                                   scrapping the asset, the original copy of Form 630 is sent to FAU on receipt of capital
                                   assets for reclamation (scrapping) by P&RD.
                           8.6.3    Files the green copy of Form 630.
                           8.6.4   Temporarily files the original copy of Form 630 and sends it to FAU upon completion of
                                   the disposal action (Sales action only).

                  8.7      For direct transfers, the asset is physically transferred to the new location and the originator:



* CHANGE                   ** ADDITION               NEW INSTRUCTION                  COMPLETE REVISION X               12
Saudi Aramco 7180 (5/89)
                                                                                           G.I. NUMBER              Approved
                                                                                                         207.050
 SAUDI ARABIAN OIL COMPANY (Saudi Aramco)
 GENERAL INSTRUCTION MANUAL                                                                ISSUE DATE        REPLACES
 ISSUING ORG.     ACCOUNTING, POLICY, METHODS & SYSTEMS DEPT.                                 09/13/1995        05/04/1993
 SUBJECT:         FORM SA 630- CAPITAL ASSETS CHANGE                                       APPROVAL          PAGE NUMBER
                  AUTHORIZATION                                                                  YMO           10   OF   12


                           8.7.1   Obtains the receiver's signature and relevant details on Form 630 and retains the yellow
                                   copy. Gives green copy to the new user.
                           8.7.2   Forwards the remaining copies to the FAU.

                  8.8      FAU, upon final disposition, receives the original Form 630 from P&RD/SU or originator and
                           records the necessary accounting entries. The original Form 630 for sales action is accompanied
                           by Form 2949 "Sales Agreement".

         Approved:Manager ,Accounting Policy, Methods & Systems Department
         CNM:W/C #M350




* CHANGE                   ** ADDITION              NEW INSTRUCTION                COMPLETE REVISION X              12
Saudi Aramco 7180 (5/89)
                                                                      G.I. NUMBER             Approved
                                                                                    207.050
 SAUDI ARABIAN OIL COMPANY (Saudi Aramco)
 GENERAL INSTRUCTION MANUAL                                           ISSUE DATE       REPLACES
 ISSUING ORG.     ACCOUNTING, POLICY, METHODS & SYSTEMS DEPT.            09/13/1995       05/04/1993
 SUBJECT:         FORM SA 630- CAPITAL ASSETS CHANGE                  APPROVAL         PAGE NUMBER
                  AUTHORIZATION                                            YMO           11   OF   12


         ATTACHMENT 1

         REFER TO SA FORM 630 (CAPITAL ASSETS CHANGE AUTHORIZATION )




* CHANGE                   ** ADDITION   NEW INSTRUCTION        COMPLETE REVISION X           12
Saudi Aramco 7180 (5/89)
                                                                                        G.I. NUMBER              Approved
                                                                                                      207.050
 SAUDI ARABIAN OIL COMPANY (Saudi Aramco)
 GENERAL INSTRUCTION MANUAL                                                             ISSUE DATE       REPLACES
 ISSUING ORG.     ACCOUNTING, POLICY, METHODS & SYSTEMS DEPT.                             09/13/1995        05/04/1993
 SUBJECT:         FORM SA 630- CAPITAL ASSETS CHANGE                                    APPROVAL         PAGE NUMBER
                  AUTHORIZATION                                                              YMO            12   OF   12


         ATTACHMENT 1

                                                   FINAL DISTRIBUTION OF FORM 630

                           I) Sale, Trade-In Sale, Disposal to Reclamation, Storage, or Transfer Via Sales Unit/P&RD
                                    White (Bottom) -            Originator detaches when Form 630 is initiated.
                                    Blue -                      FAU detaches after addition of accounting entries to
                                                                Form 630.
                                    Gold -                      MSD copy. (sale and disposal to Reclamation entries
                                                                only).
                                    Green -                     SU detaches upon receipt of asset.
                                    Pink -                      FAU upon receipt of asset by SU or Sales-in-place.
                                                                (Note: pink copy is destroyed by P&RD for scrapped or
                                                                salvaged asset).
                                    Yellow -                    Originator upon receipt of asset by SU.
                                    Original -                  FAU upon final disposition of asset by SU - files as
                                                                support to journal entry:
                                                                A.When storage period has expired and final disposal is
                                                                completed.
                                                                B.When transfer to new user is complete.
                                                                C.When asset is sold.
                                                                D.When scrap or salvage item is received by P&RD.

                           II)   Loss, Abandonment, Demolition, Giving Away, or Retirement In Place
                                   White (Bottom) -          Originator detaches when Form 630 is initiated.
                                   Blue -                    FAU detaches after addition of accounting entries to
                                                             Form 630.
                                   Gold -                    FAU forwards to Standardization.
                                   Original -                FAU files as support to journal entry.
                                   Yellow -                  Originator files on receipt from Reclamation/FAU.
                                   Any other copies -        FAU (no specific uses).

                           III) Direct Transfers
                                   White (Bottom) -           Originator detaches when Form 630 is initiated.
                                   Blue -                     FAU detaches after addition of accounting entries to
                                                              Form 630.
                                    Yellow -                  Originator files after addition of new user's signature.
                                    Green -                   New users files as record of receipt.
                                    Original -                FAU files as support to journal entry.
                                    Any Other copies -        FAU (no specific uses).




* CHANGE                   ** ADDITION            NEW INSTRUCTION               COMPLETE REVISION X              12

								
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