1 OBJECTIVE AND SCOPE

1.1 Objective of this Procedure

This document describes the full procedure related to contract and PIR maintenance in SAP WP1 system. It’s a revised version from previous working instructions (Work Instruction - PUR - SAP - 02 & PIR Maintenance).
For Technology Solutions, requests can be performed by buyers and planners from each plant and for Composite Materials PIRs, Source Lists and Contracts can be modified and created by site Buyers (Strategic RM buyers. Planners can not (and should not) make changes themselves, but turn to buyers or us for that. 
All requests are sent to Data Operations team via FreshDesk 

1.2 Scope

Under Riga SBS Data Operations scope is the management of Contracts, PIRs and Source Lists for all Technology Solutions and Composite plants.

1.3 Abbreviations

1.4 Roles and responsibilities

Prior to submitting a new Contract/PIR/SL request, it is the requester’s responsibility to ensure the contract/PIR/SL does not exist in SAP already, so no duplicates are created in the system. If the contract/PIR/SL was not found, a request should be submitted to Data Operations for its set up in SAP. A second search in the system is performed by the Data Operations team to ensure no duplicates are created.

2 STANDARD OPERATING PROCEDURE DESCRIPTION

Purchase Info Record (PIR) is a method of managing the purchase price. An alternate management method is a contract. When a contract exists, then the PIR should not be used for the same material. A new PIR is created when a purchase from a new material/supplier combination is needed. Within the PIR there is another unique combination named Purchasing Org. Data, formed by the combination of the Purchasing Org., Info Category and Plant Code. If one of those elements is changed, this results in a new record within the PIR. In the PIR’s General View the global fields are available. These fields determine the information common to all plants using the material/supplier combination. The PIR’s maintenance is the responsibility of the Buyer. Any information missing in the ZERS form (approved by the Buyer) and necessary in the PIR should be completed by them.

2.1 Creation of PIR (Purchase Info Record) in WP1

PIRs are created when we have STO,  consignment PO or a subcontracting contract.

We have 4 types of PIR: 

• Standard - Specifies that the info record is used only in connection with standard purchase orders. This is the most ordinary PIR type and is the one used for STO.

• Subcontracting - Specifies that the info record is used only in connection with subcontract orders.

• Pipeline - Specifies that the info record is used specifically for pipeline withdrawals.

• Consignment - Specifies that the info record is only used in the case of consignment withdrawals.

2.1.1 Requirements for new PIR

In order to create new PIR we will need the following information:

• Vendor

• Plant

• Price

• Purchase organization (list can be found on Appendix 4)
• Incoterms

Note! If you have a request with more than one PIR to be created/updated, add the TAG in Freshdesk with the number of PIRs created/updated.

2.1.2 Creating PIR

Purchasing Organization

2.1.2.1 Adding Scale

When in conditions we are able to add Scales related to the price of the material. 

Some items we can have discounts when we buy in a higher quantity.

2.1.2.2 STO PIRs

For Stock Transfer Orders we have 2 types:

• Intra STO's: Trading between plants on the same company code. Only Source List is required (Skip to section 2.2. Source list creation)
• Inter STO': Trading between company codes. PIR and Source List are required 

When creating a STO (Stock Transfer) PIR, we need to delete the condition in order to the correct price reflect for the item. 

NOTE: ALL STO PIRs ARE CREATED FOR PURCHASING ORGANIZATION 3200, NO NEED TO UPDATE THE “VALID TO” IN THIS CASE.

After saving the new PIR, go back to the conditions and follow the procedure below:

2.1.2.3 Adding Freight condition

Note! The list below are those that will print on a PO output sent to a supplier. 

2.1.3 Change PIR

2.1.4 Delete PIR

Important!

PIR’s created for plants [WP1] not maintained by Data Operations Riga [Industrial Supplies]:

• Freshdesk ticket for other Data Operations team should be created.
  • Data Operations Curitiba;
  • Data Operations Lisbon;
  • Data Operations Bangkok; 

PIR’s created for purchasing organisation [WP1] 3012; 3020; 3028; 3004 [Industrial Supplies]:

• Created / Inactivated by Data Operations Riga team.
  • Site Buyers or Store Room Owner in charge must be informed of any inactivation’s and creations of new PIR’s in case of Duplicate accounts/Tax ID changes.

PIR’s created for other Purchasing Organizations [WP1]:

• Maintained by Site Buyers’s and/or Data Operations Riga [Raw Materials] for Technology Solutions & Composite Materials.
  • The buyers/planners should be informed on the inactivation

PIR's created in PF1_020 are maintained locally, buyers should be contacted based on this list.

2.1.5 Re-activating a supressed PIR

Requests to re-activate PIR that is marked for deletion can be received.

2.2 Source List

A source list is needed every time a new contract is created, a new line is added in an existing contract or when a PIR is created.

We have 2 options on how to create/update source list

1st option:

2.2.1 Creating Source List

2nd option:

2.2.2 Deleting Source List

2.3 Creation of contract

2.3.1 Prerequisites

A contract is created in WP1 when:

• Some special negotiation was made with the vendor, for example, some specific material is paid with better terms than it is already set up on Vendor Master Data.
• For subcontracting/standard when the delivery address should be defaulted as a drop ship address of another supplier/subcontractor
• When the currency needs to be different then the vendor master
• For a separate Goods Supplier vendor number

NOTE: THIS IS NOT A STANDARD PROCESS AND SHOULD BE PERFORMED ONLY WHEN NO OTHER OPTION IS AVAILABLE.

2.3.2 Checking for duplicates

2.3.3 Creating a contract

2.3.4 Adding new item in an existing contract

2.3.5 Changing items in an existing contract

2.3.6 Changing Target value in an existing contract

2.3.7 Deleting item in an existing contract

2.4 Quota Management

Procedure available in the link below:
WP1 - Quotas Management 
Quotas management - Print Screen

Appendix - Approved Requesters - Technology Solutions

• Direct Procurement PIR (Raw Material and Packaging) and Third party: Only Buyers. In case there is a request from planner add the buyer once you update the price/create the PIR.
  • Packaging NA: Stephane Labelle / Matt Kalat
• Intercompany PIRs: Buyers or Planners
• Plant 7008 Willow Island - 8359 is shared between Technology Solutions and Novecare
  • List of approvers for Novecare
• Plant code 8536 -7008 / Allchem Service Houston & 8553 -7008 / South Coast Houston.
  • Requests can be accepted from Vincent Cifelli

The full list can be found here.

NOTE: Requests from Finance team related to Kemira Water Solutions vendor,  can be accepted without further approval. The supplier sends to Finance the summary billing invoice which is reviewed and Finance decides which prices to use as planned for the next period. The Buyers are not involved, since the type of operation with Kemira is tolling and not purchases.

Appendix - Approved Requesters - Composite Materials 

Strategic buyers (Raw Material Buyer) and Site buyers are trained to create PIR's, Contracts and Source List as Riga Data Operations team, they are the owners of this data/process. Planners can also request PIR creation, since they can either turn to the Strategic buyers (Raw Material Buyer) and Site buyers or to Data Operations team. For Source List creation no approval is required.

The full list can be found here (Note: this is only a guidance file).

Note! Planners can ask without buyer's approval: Planned delivery lead time; vendor material number; text changes

Note! The table below should be used only for ZERS - Industrial Supplies, for full table of approvers check the link

Appendix - Additional Definitions

CONSIGNMENT 

A form of business in which a vendor (external supplier) maintains a stock of materials at a customer (purchaser) site. The vendor retains ownership of the materials until they are withdrawn from the consignment stores. Payment for consignment stock is required only when the material is withdrawn for use. For this reason, the vendor is informed of withdrawals of consignment stock on a regular basis.

SUBCONTRACTING

An instruction to a supplier (subcontractor) to manufacture an ordered part, material or assembly using specified "materials to be provided" (free-issue materials).  A subcontract order contains a maximum of one order item for the ordered material, service, or work, and one or more "material to be provided" items for materials that the ordered makes available to the subcontractor, without charge, for processing.

Appendix  - Q&A

In this link we have a Q&A where we can find the most common questions and answers regarding this activity.

Appendix  - Embargo check in Purchase Order

If the following message appears, trade.control@solvay.com team should be contacted.

Appendix  - ARIBA Project

Once a vendor in enrolled in the ARIBA project the following set up will be created in SAP

• Vendor Master: Search Term 2  → Contains ARIBA
• Purchasing Organization / Plant Level → Confirmation Control Key field contains one of the values: Z017; Z018 or Z019
• PIR or Contracts →  Confirmation Control Key field contains one of the values: Z017; Z018 or Z019

When these criteria are matched, it means the supplier is working with Solvay using the Ariba Platform, receiving Purchase Orders and sending Invoices.

If we already have the above information at Vendor Level and Contracts / PIR, all new creation will assume the code by default that cannot be removed, unless the request comes from the Ariba Team.
All new PIR / Contracts will take the default Control Key from Purchasing / Plant Level.

Appendix - Table of Incoterms