1 OBJECTIVE AND SCOPE

1.1. Objective of this Procedure

This document describes the full procedure related to contract and PIR maintenance in SAP PE1 system. It’s a revised version from previous working instructions (Work Instruction - PUR - SAP - 02)

Requests can be performed by buyers and planners from each plant.

All requests are sent to Data Operations team via FreshDesk.

1.2. Scope

Under Riga SBS Data Operations’ scope is the management of Contracts and PIRs for all plants.

1.3. Abbreviations

Abbr.	Description
SBS	Solvay Business Services
HSE	Health, Safety and Environment
DG	Dangerous goods
MRP	Material Resource Planning
UoM	Units of Measure
PIR	Purchasing Info Record
STO	Stock Transfer Order

1.4. Roles and responsibilities

Prior to submitting a new Contract/PIR request, it is the requester’s responsibility to ensure the contract/PIR does not exist in SAP already, so no duplicates are created in the system. If the contract/PIR 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

Below you can see when we can define what information is needed depending on the Purchase Type.

Purchase type	Contract	PIR	Source List
Standard	✔️		✔️
Stock Transfer		✔️	✔️
Consignment		✔️ (Consignment)	✔️
Subcontracting	✔️	✔️ (Subcontracting)	✔️

2.1. Creation of contract in PE1

2.1.1. Prerequisites

Requester should provide:

Vendor code
Material number
Price
Unit of Measure (price and order)
Target Value
Currency
Plant

Note! If you have a request with more than one Contract to be created, add the TAG in Freshdesk with the number of Contracts created.

2.1.2. Checking for duplicates

#	Main activities	Tips / Best practices	Key points
1	Enter transaction ME33K	T-code can be entered directly in Command field. T-code can be saved in Favorites.
2	Press multiple choice button to receive pop-up window with search options for material master	you can also press F4

#	Main activities	Tips / Best practices	Key points
3	Select Purchasing Documents per vendor	T-code can be entered directly in Command field. T-code can be saved in Favorites.
4	Add vendor		Information provided in the request
5	Purchasing Document Category		Always K
6	Order Type		Always ZDK2
7	Press enter	If no values return, you can proceed with the creation

#	Main activities	Tips / Best practices	Key points
8	Enter on contracts that show up	We have one contract by plant. In case it’s not the plant requested, proceed with contract creation, otherwise add item to the existing contract.

2.1.3. Creating a contract

#	Main activities	Tips / Best practices	Key points
9	Enter transaction ME31K	T-code can be entered directly in Command field. T-code can be saved in Favorites.
10	Vendor	Note! If the the vendor# provided is related to a Cytec company, go back to the requester to confirm if the vendor requested is out of PE1 scope and should be handled as an external vendor. Example: Vendor 89405 Cytec Engineered Materials Ltd which belongs to Company code 7771 in WP1	Information provided in the request
11	Agreement type		Always ZDK2
12	Purchasing Organization		Always CP01
13	Purchasing Group		Plant buyer code
14	Plant		Information provided in the request
15	Press enter

#	Main activities	Tips / Best practices	Key points
16	Validity end	Contracts are created in a 5 years period, last day before final Solstice Migration	Always 31.12.2023
17	Target Value	If not informed, contact buyer to confirm correct value	Information provided in the request
		NOTE: In the header you can also set up some different information other than the one in vendor master data, such as different payment term, incoterms, etc. (this information will be the one selected when PO is created)
18	Press Item Overview

#	Main activities	Tips / Best practices	Key points
19	Item Category		If informed, otherwise blank Options: Blank: Standard K: Consignment L: Subcontracting S: Third party T: Text
20	Account Assignment Category		if material starts with 7 should be populated with U, Otherwise Blank
21	Material		As informed
22	Order Unit	If not populated, it will get from Material Master
23	Net Price	NOTE: Price can only be added with 2 decimal characters, in case price informed is as example $1.012 USD/EA > net price would be $10.12 and per will be 10	As informed
24	Per		As informed
25	Order Unit Price		As informed
26	Press enter	Once item is added we need to check the texts related to quality or additional information required for the item.

#	Main activities	Tips / Best practices	Key points
27	Select material line
28	Environment > Material	this way we access the material information

#	Main activities	Tips / Best practices	Key points
29	Click on to open the menu
30	Select the option Quality Management	this way we access the material information

#

Main activities

Tips / Best practices

Key points

31

Check Certificate type information

If Certificate type is “Blank” no text needs to be maintained

If Certificate type is:

E21 the following text should be maintained:

"Goods supplied against this purchase order must be in compliance with the COC"

E31 the following text should be maintained:

"CoA is required with every shipment against this purchase order"

32

Go Back to contract

#	Main activities	Tips / Best practices	Key points
33	Select item line
34	select item texts

#	Main activities	Tips / Best practices	Key points
35	Double click on COA Instruction	if it’s not in the main screen, press Page Down

#	Main activities	Tips / Best practices	Key points
36	Paste the correct text
37	Return	NOTE: Other types of text that can be added as example: Item Additional Information, Material PO Text

#	Main activities	Tips / Best practices	Key points
38	Select item line	Additional information as Vendor Material number can be added
39	select Details

#	Main activities	Tips / Best practices	Key points
40	Vendor Material number		Add information as requested
41	Save it	After the contract is created, source list should be created

NOTE: After Contract is created, a source list needs to be created and contract should be released.

We have 3 levels of blocks depending on the target value as below:

Level 1 (D1 Block) - $0.00 to $250,000 – Buyers (Procurement/Sourcing Associate)
Level 2 (D2 Block) - $250,001 to $1,000,000 – Procurement Managers (Procurement/Sourcing Associate & Procurement Manager)
Level 3 (D3 Block) - $1,000,001 to unlimited – Procurement Directors and VP of Procurement (Procurement/Sourcing Associate & Global Procurement Director & Global Procurement VP)

List of release responsible is on Appendix 2.

To check, what release level a contract requires, use transaction Display Contract (ME33K) or Change Contract (ME32K). Click Release Strategy button to see, on which levels contract has been released and on which levels it needs to be released to be valid.

2.1.4. Adding new item in an existing contract

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

#	Main activities	Tips / Best practices	Key points
42	Go to transaction ME32K	T-code can be entered directly in Command field. T-code can be saved in Favorites.
43	Add contract number

#	Main activities	Tips / Best practices	Key points
44	Material number	Find the first blank line Follow the same procedure as step 19 to 26	Add information as requested

#	Main activities	Tips / Best practices	Key points
45	Select material line
46	Environment > Material	this way we access the material information

#	Main activities	Tips / Best practices	Key points
47	Click on to open the menu
48	Select the option Quality Management	this way we access the material information

#

Main activities

Tips / Best practices

Key points

49

Check Certificate type information

If Certificate type is “Blank” no text needs to be maintained

If Certificate type is

E21 the following text should be maintained:

Goods supplied against this purchase order must be in compliance with the COC

E31 the following text should be maintained:

CoA is required with every shipment against this purchase order

50

Go Back to contract

#	Main activities	Tips / Best practices	Key points
51	Select item line
52	select item texts

#	Main activities	Tips / Best practices	Key points
53	Double click on COA Instruction	if it’s not in the main screen, press Page Down

#	Main activities	Tips / Best practices	Key points
54	Paste the correct text
55		NOTE: Other types of text that can be added as example: Item Additional Information, Material PO Text
56	Return

#	Main activities	Tips / Best practices	Key points
57	Select item line	Additional information as Vendor Material number can be added
58	select Details

#	Main activities	Tips / Best practices	Key points
59	Vendor Material number		Add information as requested
60	Save it	After item is added, source list should be created

2.1.5. Changing items in an existing contract

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

#	Main activities	Tips / Best practices	Key points
61	Go to transaction ME32K	T-code can be entered directly in Command field. T-code can be saved in Favorites.
62	Add contract number
63	Press enter

#	Main activities	Tips / Best practices	Key points
64	Select line that needs to be changed	T-code can be entered directly in Command field. T-code can be saved in Favorites.
65	Click on conditions

#	Main activities	Tips / Best practices	Key points
66	Single click on the valid period
67	New with reference

#	Main activities	Tips / Best practices	Key points
68	Amount		Information provided
69	Save it	Note: Additional information can be changed also (texts)

2.1.6. Changing Target value in an existing contract

#	Main activities	Tips / Best practices	Key points
70	Go to transaction ME32K	T-code can be entered directly in Command field. T-code can be saved in Favorites.
71	Add contract number
72	Select Header Details

#	Main activities	Tips / Best practices	Key points
73	Change to Target value to the information provided	After Target value, contract needs to be released again by the responsible party
74	Save it

2.1.7. Deleting item in an existing contract

#	Main activities	Tips / Best practices	Key points
75	Go to transaction ME32K	T-code can be entered directly in Command field. T-code can be saved in Favorites.
76	Add contract number
77	Press enter

#	Main activities	Tips / Best practices	Key points
78	Select Line(s) you want to delete
79	Click on “Delete”
80	Save it

#	Main activities	Tips / Best practices	Key points
81	After deleting all lines go to header
82	Change Validity end to the past
83	Save it

2.2. Creation of PIR (Purchase Info Record) in PE1

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 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.

2.2.1. Requirements for new PIR

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

Vendor
Plant
Price
Purchasing Organization - Always CP01

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

2.2.2. Creating PIR

#	Main activities	Tips / Best practices	Key points
84	Enter transaction ME11	T-code can be entered directly in Command field. T-code can be saved in Favorites.
85	Vendor		Information provided in the request
	Material		As informed
86	Purchasing Organization		Always CP01
87	Plant		Information provided in the request
88	PIR category		If not informed choose Standard
89	Press enter

#	Main activities	Tips / Best practices	Key points
90	Go to Purch. Org data 1	Nothing to be filled here

#	Main activities	Tips / Best practices	Key points
91	Standard quantity		If not informed, use 1
92	Minimum quantity		If not informed, leave it blank
93	Tolerance Underdl/Overdl.		Change only if requested
94	Conf. Control		For external Purchases - Z004 For internal purchases (STO) - leave it blank
95	Price	If external purchase, this field becomes mandatory. If internal purchase, field doesn’t show up	Fill with the price informed.
96	Save it	Once PIR is created, you need to create a source list

2.2.3. Change PIR

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

#	Main activities	Tips / Best practices	Key points
97	Enter transaction ME12	T-code can be entered directly in Command field. T-code can be saved in Favorites.
98	Vendor		Information provided in the request
99	Material		As informed
100	Purchasing Organization		Always CP01
101	Plant		Information provided in the request
102	PIR category		If not informed choose Standard
103	Press enter

#	Main activities	Tips / Best practices	Key points
104	Go to Conditions

#	Main activities	Tips / Best practices	Key points
105	Single click on the valid period
106	New with reference

#	Main activities	Tips / Best practices	Key points
107	Amount		As informed
108	Per		As informed
109	Price Unit of measure		As informed
110	Save it

2.2.4. Delete PIR

#	Main activities	Tips / Best practices	Key points
111	Enter transaction ME12	T-code can be entered directly in Command field. T-code can be saved in Favorites.
112	Vendor		Information provided in the request
113	Material		As informed
114	Purchasing Organization		Always CP01
115	Plant		Information provided in the request
116	PIR category		If not informed choose Standard
117	Press enter

#	Main activities	Tips / Best practices	Key points
118	Go to Conditions

#	Main activities	Tips / Best practices	Key points
119	Select Valid period

#	Main activities	Tips / Best practices	Key points
120	Vadid to		Always a date in the past
121	Go Back

#	Main activities	Tips / Best practices	Key points
122	Go to Extras > Deletion flags

#	Main activities	Tips / Best practices	Key points
123	Complete info record	If you need to block all PIR data
124	Purch. Org Data	If you need to block a specific Plant/P.Org data
125	Save it

2.3. 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.

2.3.1. Creating Source List

#	Main activities	Tips / Best practices	Key points
126	Enter transaction ME01	T-code can be entered directly in Command field. T-code can be saved in Favorites.
127	Material		As informed
128	Plant		As informed
129	Press enter

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

1st option:

#	Main activities	Tips / Best practices	Key points
130	Click on generate records

#	Main activities	Tips / Best practices	Key points
131	Press enter or click on confirm

#	Main activities	Tips / Best practices	Key points
132	Select “Not changed”
133	Press enter or click on confirm

#	Main activities	Tips / Best practices	Key points
134	Select duplicated lines or irrelevant information and delete
135	MRP Relevant		Always 1
136	Save it

2nd option:

#	Main activities	Tips / Best practices	Key points
137	Valid from		Today’s date
138	Valid to		If contract - validity to from contract If PIR or STO - 31.12.2999
139	Purchasing Organization		Always CP01
140	Purchasing Plant	Ony for STO	Add Shipping from plant (source plant)
141	Contract	For external Purchase	Add contract created
142	Item	For external Purchase	Add line from contract related to the item
143	MRP Relevant	If there are several sources, we should verify with Buyer, which source needs to be marked as MRP relevant.	Always 1
144	Save it

2.4. Quota Arrangement

Purchasing (MM-PUR)

A mechanism enabling the system to compute which source of supply to assign to a requirement for a material. The quota arrangement facilitates the determination of the applicable sources of supply for a purchase requisition at a certain time. Setting quotas permits the automatic apportionment of a total material requirement over a period to different sources. A quota arrangement consists of quota arrangement records identifying the source (such as a vendor or an internal plant), the validity period, and the quota.

Master Data (SCM-APO-MD)

Percentage specifying which proportion of the required quantity of product is to be procured from a source of supply (incoming quota arrangement) or supplied to a location (outgoing quota arrangement). Quota arrangements can be defined as either version-dependent or model-dependent, and as either product-dependent or product-independent. Quota arrangements are defined for a certain area of validity. Incoming quota arrangements can be defined for the following source of supply types:

Locations (transportation lanes)
External procurement relationships
In-house production (production process models, iPPE access objects, or production data structures)

Outgoing quota arrangements can only be created for locations.

Supplier Relationship Management (SRM)

An algorithm with which the system determines the sources of supply for a purchase requisition. The quota arrangement defines percentages according to which the system assigns purchase contracts as a source of supply. By setting quotas, you can automatically distribute the purchase requisitions for the duration of a validity time period to different sources.

2.4.1. Quota Arrangement creation

#	Main activities	Tips / Best practices	Key points
141	Enter transaction MEQ1	T-code can be entered directly in Command field. T-code can be saved in Favorites.
142	Material		As informed
143	Plant		As informed
144	Press enter

#	Main activities	Tips / Best practices	Key points
145	Valid to		As informed
146	Click on item

#	Main activities	Tips / Best practices	Key points
147	Procurement Type	Normally value is ”F”	As informed
148	Special Procurement Type	Normally value is ”U”	As informed
149	Vendor	Vendor code for shipping from plant (Source plant)	As informed
150	Procurement Plant	Shipping from plant (Source plant)	As informed
151	Quota is fine as default	Normally value is ”100”	As informed
152	Save it

2.4.2. Quota Arrangement deletion

Data Operations > SAP IM Contract and PIR Maintenance > image2020-8-12_17-54-5.png

Main activities	Tips / Best practices	Key points
Enter transaction MEQ1	T-code can be entered directly in Command field. T-code can be saved in Favorites.
Material		As informed
Plant		As informed
Press enter

Data Operations > SAP IM Contract and PIR Maintenance > image2020-8-12_17-55-2.png

Main activities	Tips / Best practices	Key points
Select the line		Click on

Data Operations > SAP IM Contract and PIR Maintenance > image2020-8-12_17-57-47.png

Main activities	Tips / Best practices	Key points
Remove the Quota		The field should be blank
Save the change

Appendix 1 - Approved Requesters

Plant	Buyer	Planner
Heanor (2010) Manchester (2020)	Ammar Alsalih	Graham Hill (2010) Ben Woodcock (2010) Amanda Brown (2020) James Taylor (2010/2020)
Keighley (2050)	Marie Woodhouse	Melanie Greenfield
Tulsa (2015)	Clint Baker	Patti Cline
Mondovi (2045) Logind (2085)	Davide Mina	Gilberto Barale, Elena Vinai
Santa Fe Springs (2040)	Tracy Ng Jennifer Dominguez	Tracy Ng Jennifer Dominguez
Toulouse (2035) Eurocenter (2100)	Claire Thomas	Laetitia Villemeney Adeline Gourc Alison Gal

Appendix 2 - Contract Release

Releases per plant	D1	D2	D3
Heanor (2010) Manchester (2020)	Ammar Alsalih	Ammar Alsalih	Jean-Pierre Demeunynck
Tulsa (2015)	Clint Baker	Ammar Alsalih
Keighley (2050)	Marie Woodhouse	Tracy Ng
Mondovi (2085) Logind (2085)	Gilberto Barale
Santa Fe Springs (2040)	Tracy Ng Jennifer Dominguez
Toulouse (2035) Eurocenter (2100)	Claire Thomas

Appendix 3 - Most common errors and stoppers

Appendix 3.1 - Block-Allow BOM/Costing

In case of the above error, advise requestor that Data Steward should be contacted to remove the block.

Appendix 3.2 - No QM info record exists for material

If Quality Info Record (QIR) is missing, requestor should contact quality department to set up the QIR.

Appendix 3.3 - Define QM Procurement Key

Quality view and material master are not fully maintained. Advise to contact Quality department to set up QM procurement key for material.

Appendix 3.4 - Not possible to assign a source of supply

a. Check ME03 for a source availability (Is that who you want to buy from?) and contact SBS Procurement for any changes.

b. Check your delivery period (is the source extended to that year/month/day?)

c. If desired supplier is not in source list, review Special Procurement Key (SPK) for accuracy.

i. SPK is found in MM03 --> MRP2 tab

ii. STO SPK = Letter + Number

iii. External Proc SPK = blank

iv. Consignment = 30

v. Subcontracting = 10

d. Make sure your Item category on the PR reflect your procurement type (STO; Subcon; Consignment; Standard)

i. If it is automatically assigned and is incorrect, investigate SPK and contact Data Steward if it is incorrect.

e. If the Source list is maintained correctly, check if the contract is released. ME33K → Green flag

Extremely rare - regenerate the PR by re-running MRP after the source list was created

Appendix 3.5 - STO PR has blank price field

Price is taken from Material Master, Costing 2 tab. If the Standard price is 0 in material master, contact data steward

Appendix 3.6 - Following mandatory roles missing in partner maintenance: PI

When the system presents the message bellow, please note that the missing role should be added to this contract.

In order to check all the partners for the vendor:

Please access transaction XK03
Populate the vendor number
Populate the purchase organization: always CP01
Mark the checkbox for "partner functions"

Data Operations > SAP IM Contract and PIR Maintenance > image2019-9-4_15-39-42.png

Check each roll assigned to the main vendor and go to ME31K transaction for the contract creation

Data Operations > SAP IM Contract and PIR Maintenance > image2019-9-4_15-40-55.png

Once all the information is populated, assigned the missing role for the contract by following the steps bellow:

Select the line
Click on the button

Data Operations > SAP IM Contract and PIR Maintenance > image2019-9-5_14-3-37.png

Double click on the first line

Data Operations > SAP IM Contract and PIR Maintenance > image2019-9-5_14-4-42.png

Assign the missing role by adding the function and the vendor number

Data Operations > SAP IM Contract and PIR Maintenance > image2019-9-5_14-5-46.png

Press enter an return to contract in order to finish the set up

Appendix 4 - 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 orderer makes available to the subcontractor, without charge, for processing.

Appendix 5 - Q&A

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