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)

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

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
Purchasing Organization

2.1.2 Creating PIR

#	Main activities	Tips / Best practices	Key points
1	Enter transaction ME11	T-code can be entered directly in Command field. T-code can be saved in Favorites.
2	Vendor		Information provided in the request
3	Material		As informed
4	Purchasing Organization	Information may change depending on the plant region/type of order	if not informed, you can find here.
5	Plant		Information provided in the request
6	PIR category		If not informed choose Standard
7	Press enter

#	Main activities	Tips / Best practices	Key points
8	Enter Vendor Material Number		Optional info
9	Enter Salesperson		Optional info
10	Enter Telephone		Optional info
11	Enter Order Unit		Change if requested
12	Go to Purchasing Organization Data 1 view	Pressing Enter will move you to Purch. Org. Data 1

#

Main activities

Tips / Best practices

Key points

13

Enter Planned Delivery Time

Pre-populated - pulled from Material master data

Use 5 as default value in cases when Planned Delivery Time is not indicated by requestor

14

Enter Standard Quantity

Always 1 if no special requests

15

Enter Tax Code

Check location of plant and Vendor

Plant Country	Local Tax	Import Tax
Australia	C”	D”
Brazil	GO* May have more than one option	GO
Canada	LY	AS
Chile	LR	LQ
China	LC	JP
EU	TT	DE
Korea	IE
Mexico	NK	NF
Netherlands	TT	TS
Peru	MM	ML
USA	LN	AS

16

Enter Net Price

As requested

17

Incoterms 1 and 2

Add if requested, otherwise keep it blank

18

Confirmation Control Key (CCK)

Check Incoterms

If Incoterms are COL - always Z003, (exception if going from Kemira to Kemira’s plant 8543 then blank).

For Brazil Plants, CCK is always Z016

19

Go to Conditions view

#

Main activities

Tips / Best practices

Key points

20

Update the validity period

The validity period is to be extended to the end of the current year

21

Click on (save)

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.

#	Main activities	Tips / Best practices	Key points
22	Select the price line
23	Click on Scale

#	Main activities	Tips / Best practices	Key points
24	Add the scale quantity
25	Add price for new quantity
26	Save it

2.1.2.2 STO PIRs

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:

#	Main activities	Tips / Best practices	Key points
27	Select Price line
28	Delete		Confirm deletion
29	Save it		As informed

2.1.3. Change PIR

#	Main activities	Tips / Best practices	Key points
30	Enter transaction ME1M	T-code can be entered directly in Command field. T-code can be saved in Favorites.
31	Vendor		If informed, otherwise keep it blank
32	Material		As informed
33	Purchasing Organization		If informed, otherwise keep it blank
34	Plant		If informed, otherwise keep it blank
35	Click on

#	Main activities	Tips / Best practices	Key points
36	Select PIR
37	Press Change Info Record

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

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

#	Main activities	Tips / Best practices	Key points
41	Validity From		As informed, other wise current date
42	Valid to		if not informed, end of current year
43	Amount		As informed
44	Per		As informed
45	Price Unit of measure		As informed
46	Save it

2.1.4. Delete PIR

#	Main activities	Tips / Best practices	Key points
47	Enter transaction ME12 or ME1M as on Change	T-code can be entered directly in Command field. T-code can be saved in Favorites.
48	Vendor		Information provided in the request
49	Material		As informed
50	Purchasing Organization		As informed
51	Plant		As informed
52	PIR category		If not informed choose Standard
53	Press enter

#	Main activities	Tips / Best practices	Key points
54	Purchasing Group		E00
55	Extras > Deletion Flags	Shift + F12

#	Main activities	Tips / Best practices	Key points
56	Complete info record		Flag if Full PIR should be deleted
57	Purch. Org. Data		Flag if only plant/p. Org data should be deleted.
58	Go to Conditions

#	Main activities	Tips / Best practices	Key points
59	Double click on the valid period

#	Main activities	Tips / Best practices	Key points
60	Validity To		Date in the past
61	Save it

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.

2.2.1. Creating Source List

#	Main activities	Tips / Best practices	Key points
62	Enter transaction ME01	T-code can be entered directly in Command field. T-code can be saved in Favorites.
63	Material		As informed
64	Plant		As informed
65	Press enter

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

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

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

#	Main activities	Tips / Best practices	Key points
70	Save it

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.

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

2.3.2 Checking for duplicates

#	Main activities	Tips / Best practices	Key points
71	Enter transaction ME33K	T-code can be entered directly in Command field. T-code can be saved in Favorites.
72	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
73	Select Purchasing Documents per vendor	T-code can be entered directly in Command field. T-code can be saved in Favorites.
74	Add vendor		Information provided in the request
75	Purchasing Document Category		Always K
76	Press enter	If no values return, you can proceed with the creation

#	Main activities	Tips / Best practices	Key points
77	Enter on contracts that shows 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.

2.3.3 Creating a contract

#	Main activities	Tips / Best practices	Key points
78	Enter transaction ME31K	T-code can be entered directly in Command field. T-code can be saved in Favorites.
79	Vendor		Information provided in the request
80	Agreement type		MK - Quantity contract WK - Value Contract
81	Purchasing Organization		Always CP01
82	Purchasing Group		Plant buyer code
83	Plant		Information provided in the request
84	Press enter

#	Main activities	Tips / Best practices	Key points
85	Validity end		As requested
86	Target Value		Optional info
87		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)
88	Press Item Overview

#	Main activities	Tips / Best practices	Key points
89	Material		As informed
90	Target Quantity		Mandatory for MK contracts
91	Order Unit	If not populated, it will get from Material Master
92	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
93	Per		As informed
94	Order Unit Price		As informed
95	Save it	After the contract is created, source list should be created

2.3.4 Adding new item in an existing contract

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

#	Main activities	Tips / Best practices	Key points
98	Material number	Find the first blank line Follow the same procedure as step XX to XX	Add information as requested
99	Save it

2.3.5 Changing items in an existing contract

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

#	Main activities	Tips / Best practices	Key points
103	Select line that needs to be changed	T-code can be entered directly in Command field. T-code can be saved in Favorites.
104	Click on 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		Information provided
108	Save it	Note: Additional information can be changed also (texts)

2.3.6 Changing Target value in an existing contract

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

#	Main activities	Tips / Best practices	Key points
112	Change to Target value to the information provided
113	Save it

2.3.7 Deleting item in an existing contract

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

#	Main activities	Tips / Best practices	Key points
117	Select Line(s) you want to delete
118	click on “Delete”
119	Save it

#	Main activities	Tips / Best practices	Key points
120	After deleting all lines go to header
121	Change Validity end to the past
122	Save it

ATTACHMENTS

ATTACHMENT 1. Approved Requesters

Approvers and requesters are Buyers and Planners.

The full list can be found here.

ATTACHMENT 2. 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.

ATTACHMENT 3. Q&A

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

ATTACHMENT 4. Purchasing Organizations

Domain	Europe	North America	Latin America	APAC
1 - General Expenses	3001	3009	3017	3025
2 - Packaging	3002	3010	3018	3026
3 - Energy	3003	3011	3019	3027
4 - Industrial Supplies	3004	3012	3020	3028
5 - IT & Telecom	3001	3009	3017	3025
6 - Raw Materials	3006	3014	3022	3030
7 - Industrial Services	3007	3015	3023	3031
8 - Transport/Logistics	3008	3016	3024	3032
9 - Inter-Company	3200
10 - Third Party	3100	3101	3102	3103