INTRODUCTION

Objectives and scope of this procedure

This Operating Procedure explains how to create a Recurring PO (Order Type: ZFO for WP1) and Invoicing Plan (Order Type: NB for PF1) and send to the supplier for re-occurring services to be provided at the specified date and location.

Who uses this document?

What is the nature of the need

What provisioning channel does this document concern?

User / PR creator

Approver

LPR/
buyer

PS

Goods

Services

e-catalogue

Goods managed in stock

Goods and services – spot buys

Goods on Contract

Services on Contract

Emergency cases

Urgent needs

X

Applicable to system WP1 (RCS) and PF1 (PRS).

Material groups in scope

The purchase orders in scope are related to: Industrial Services Only.

Process step described in this procedure and expected end product

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End product :

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Abbreviations

Abbr.	Description	Abbr.	Description
PR	Purchase Requisition	SC	Shopping Cart
ZFO	Framework Order	PtP	Procure to Pay
RFQ	Request for Quotation	PS	Provisioning Specialist
ACK	Acknowledgement	GR	Goods Receipt

STANDARD OPERATING PROCEDURE DESCRIPTION

Pre-requisities

In order to generate a ZFO, a proper PR must be created and available in ME57 ready for conversion.
A proper PR will consist of the following below:

Attached with the selected vendor's quotation
Correct duration and pricing being stated in the PR
Vendor code being setup and ready to be tagged to the PO

PO Creation

Please go to transaction ME57.
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#	Main activities	Key points	Tips / Best practices
1	Enter transaction ME57 by double clicking on it.

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#	Main activities	Key points	Tips / Best practices
2	Key in the SC number that is being provided to you by the requestor	By entering the SC number, it will bring us directly to the PR where all actions required to be performed on that PR can be carried out swiftly.	Usually Requestor will send PS the PR for urgent processing. Hence by entering ME57 using SC number, it will help the PS to segregate with other PR, avoiding unwanted mixing up
3	Enter the plant code	Plant code for Merlion Plant is 8245	Currently, there is only one plant in Singapore (please refer to the reference link: APAC CCs and Plant Code)
4	Check on the box for Assigned Purchase Requisitions		Sometimes the Requestor might have already assigned the vendor to the PR, and if this box is not checked, that line item will not be shown during processing and will be left unprocessed. Hence, it will be a good practice to check on the box.
5	Click on the execute button

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#	Main activities	Key points	Tips / Best practices
6	Check all textbox available		If there are too many textbox to be checked, you may goto Edit=>Select=>Select All to have all the textbox to be checked.
7	Click on the Assign Manually Button
8	Enter the Desired Vendor Code	The desired vendor is the approved vendor (by the appropriate buyer) to be used for this PO	If there is no desired vendor stated, refer back to the buyer to get the approved vendor code to be used for this PO.
9	Press "Enter" on the keyboard or click on the Assign Source of Supply Button

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After the vendor code has been assigned to the individual line item, click on the Assignments button to proceed with the next step

#	Main activities	Key points	Tips / Best practices
10	Click on the Assignments Button

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#	Main activities	Key points	Tips / Best practices
11	Double Click on the white segment so as to facilitate selection

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The Process Assisgnment textbox should appear after you have selected the PR to be processed.

#	Main activities	Key points	Tips / Best practices
12	Key in "ZFO" into the textbox
13	Click on the Continue Button	On default, the order type is "NB" which refers to PO, service orders, inter company orders, utilities purchase orders, subcontracting purchase orders	There are also other type of orders (WP1): FO – Framework Order EC – E-catalogues UB – Transfer Order ZFO – Orders for recurring services For PF1: EC – E-catalogues NB – Ad-hoc (Goods/ Services) and Limit Services (Invoicing Plan & Blanket Orders)

#	Main activities	Key points	Tips / Best practices
14	Click on the Additional Data Tab
15	Key in the start and end date for the ZFO	As this order will be auto-GRed, the start and end date has to be specific.

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#	Main activities	Key points	Tips / Best practices
16	Ensure the Purch. Org. is correct	The user should have already indicated the Purchasing Organisation during the creation of PR. Hence this information is filled up automatically. However, it will be at best practice to check on the Purch. Org.	The classification of Purch. Org. for Merlion Plant are as follows: 3025 – General Exp 3026 – Packaging 3027 – Energy 3028 – Industrial Supplies 3030 – Raw Material 3031 – Industrial Services 3032 – Transport/Logistics 3103 – Trading Third Party 3200 – Internal Group APAC Pur. Org. (WP1 & PF1)
17	Ensure the Purch. Group is correct	The user should have already indicated the Purchasing Group during the creation of PR. Hence this information is filled up automatically. However, it will be at best practice to check on the Purch. Group.	The classification of Purch. Group for Merlion Plant are as follows: GVC – NOV ML Logistics GVD – NOV ML Raw Material GVE – NOV ML Ind. Supplies GVF – NOV ML Ind. Goods GVG – NOV ML Packaging GVH – NOV ML Energy GVI – NOV ML General Expense GVJ – NOV ML Trading GVK – NOV ML Tolling
18	Enter the Company Code	The Company Code for Merlion Plant is 6062	APAC CCs and Plant Code
19	Drag the supplier icon from #19i to the trolley symbol at #19ii		For procedure of PF1 system, please refer to the appendix

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#	Main activities	Key points	Tips / Best practices
20	Click empty box beside the line item indicator to select the entire row.
21	Click on the attachment button to open for all files attached by the Requestor		Always click on the attachment button to view the quotation attached so that information provided by the supplier is aligned with the Requestor

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#	Main activities	Key points	Tips / Best practices
22	Click on the Continue Button as there is no attachment avail

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#	Main activities	Key points	Tips / Best practices
23	Click empty box beside the line item indicator to select the entire row.
24	Click on the Copy button

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#	Main activities	Key points	Tips / Best practices
25	Click on the Account Assignment tab under the item level
26	Take note of the Cost Center		Copy and paste it somewhere avail will be preferred as we will be required to key in the cost center in the later steps

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#	Main activities	Key points	Tips / Best practices
27	Remove the letter "D" under the Item Cat. column
28	Key in the same amount into the Net Price column

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#	Main activities	Key points	Tips / Best practices
29	Click on the Delete button to remove the previous lines

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As shown in the quotation, there is a 7% (GST – Goods & Services Tax) applicable for this order.
Goto Invoice Tab under item level.

#	Main activities	Key points	Tips / Best practices
30	Click on the droplist button to open the Limitation textbox
31	Enter the Reporting Country	Key in "SG" for Singapore	APAC - Tax Codes
32	Click on the Continue Button
33	Select the appropriate tax code

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#	Main activities	Key points	Tips / Best practices
34	Click on the Account Assignment Tab under the item level
35	Enter the Cost Center as per #26 for all line items.	Key in the exact same Cost Center
36	Click on the Message Button for sending out this PO to the supplier

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As in Singapore emailing PO in English is one of the most common way to place an order today, we will also be emailing our suppliers our PO too.

#	Main activities	Key points	Tips / Best practices
37	Click on the droplist button at the Output Type
38	Select the proper Output Type from the droplist	Select "ZNE1"	Output Type for PF1 and other countries
39	Click on the droplist button at the Medium
40	Select the type of Medium from the droplist	Select "Simple Mail"
41	Click on the droplist button at the Function
42	Select the type of Function from the droplist	Select "MZ"	Function Type for PF1 and other countries
43	Click on the droplist button at the Language
44	Select the type of Language from the droplist	Select "EN"

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#	Main activities	Key points	Tips / Best practices
45	Click on the Continue Button	This error message pops up due to lack of email address to send out this PO. Hence, we will key in the email address manually.	Email address can be entered into the RCS system via mn05 to prevent this textbox from popping out.

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#	Main activities	Key points	Tips / Best practices
46	Enter the message into this textbox and it will appear in the body of the email
47	Enter all parties to receive this email
48	Click on the Back Button twice to return back to the initial page	If there are other attachment required to be send to the supplier, you may follow the steps below.

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#	Action	Key points	Tips / Best practices
1	Click on the Create Attachment Button
2	Select the file required to be attached and click on the Open Button

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#	Main activities	Key points	Tips / Best practices
49	Click on the droplist button for the selection of Dispatch Time
50	Select the mode of dispatch time required	Choice no.1 is preferred as it will help to lessen the load for the network as per advised by our IT professionals.
51	Click on the Back Button to return back to the initial page

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#	Main activities	Key points	Tips / Best practices
52	Click on the Check Button to see if there is any error in the PO at #52i	If there is no error in the PO, a text message will appear at the bottom at #52ii
53	Click on the Save Button

After saving, the message of PO being created successfully will be displayed at the left bottom. The email will be sent to the respective parties stated at Step #36.

APPENDIX

INVOICING PLAN CREATION

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#	Action	Key points	Tips / Best practices
53	Go to 'Invoice' Tab and uncheck GR-based IV	This enables the invoice to be posted without the GR
54	Go to 'Delivery' Tab and uncheck Goods Receipt	This allows no Confirmation to be created inside SRM7

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#58

#	Action	Key points	Tips / Best practices
55	Click on Invoicing Plan
56	Enter 'Start Date' of the Contract
57	Enter 'End Date' of the Contract
58	Select the appropriate code (51 – represents 'Monthly on Last of Month')	This affects the date of 'Account Settlement' (the date that the invoice is to be paid)
59	Select the appropriate code (52 – represents 'Horizon 1 Year')	This affects the 'Invoice Date' (the date of the invoice)
60	Check 'In Advance'	Invoice is created in advance

REFERENCES

ATTACHMENTS

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