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

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
SL	Source lists

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)

2.1.2 Creating PIR

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

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

Data Operations > SAP WP1 Contract & PIR Maintenance > image2020-3-26_17-24-49.png

Main activities

Tips / Best practices

Key points

Enter Planned Delivery Time

If pre-populated with a value lower than 5 days, update to 5 days

Enter Purchasing group

For PIR/SL/Contract creations we have to look for RM Buyers

Composite Materials: Should be the buyer’s group, can be checked in the file

For US based STOs (where receiving plant is US based such as Rock Hill or Piedmont) - FJ0
For GB/UK based STOs (where receiving plant is EU based, for example GB, Wrexham, K&N Bonded and Non Bonded) - FH0

Note! For packaging materials the purchasing group is defined based on the material group. In order to determine the correct code, refer to tabs: EU (Europe) Packaging or NA (North America Packaging, based on the plant location for which PIR is created.

Enter Standard Quantity

Always 1 if no special requests

Enter Tax Code

Check location of plant and Vendor

Other countries

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
Korea	IE
Mexico	NK	NF
Peru	MM	ML
USA	LN	AS

Europe

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Import procedure

Applicable for European plants only (Please refer to table above)

If the plant that you are creating the PIR is in the same country of the supplier, no import procedure is required.
If the plant that you are creating the PIR is in different country of the supplier then import procedure is required based on vendor's location

Enter Net Price

As requested

Incoterms 1 and 2

Technology Solutions: Add if requested, otherwise keep it blank

Composite Materials: Mandatory, if not provided go back to the requester.
For STO's (p. org 3200) if not provided by the requester use as default DAP DESTINATION

Confirmation Control Key (CCK)

Check Incoterms

Composite Materials: this field is applicable for US plants only

Technology Solutions: 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

Composite Materials: If it is an import (Tax code AS) then Z004 , if domestic (Tax code LN) and Incoterms are COL then Z003

GR-Bsd IV

Always checked

Ackn. rqd

Always checked

Go to Conditions view

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#	Main activities	Tips / Best practices	Key points
20	Update the validity period		Technology Solutions: The validity period to be used is 31.12.2025 Composite Materials: The validity period to be used is 31.12.9999
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
Select the price line
Click on Scale

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

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:

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

2.1.2.3 Adding Freight condition

Data Operations > SAP WP1 Contract & PIR Maintenance > image2020-3-12_14-38-10.png

Main activities	Tips / Best practices	Key points
Condition type		FRB1
Price		As informed
Currency		As informed

2.1.3 Change PIR

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

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

Main activities	Tips / Best practices	Key points
Go to Conditions

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

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

2.1.4 Delete PIR

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

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

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

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

Main activities	Tips / Best practices	Key points
Validity To		Date in the past
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
Enter transaction ME01	T-code can be entered directly in Command field. T-code can be saved in Favorites.
Material		As informed
Plant		As informed
Press enter

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

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

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

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

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

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

Main activities	Tips / Best practices	Key points
Material		As informed
Target Quantity		Mandatory for MK contracts
Order Unit	If not populated, it will get from Material Master
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
Per		As informed
Order Unit Price		As informed
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
Go to transaction ME32K	T-code can be entered directly in Command field. T-code can be saved in Favorites.
Add contract number

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

2.3.5 Changing items in an existing contract

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

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

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

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

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

2.3.7 Deleting item in an existing contract

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

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

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

Appendix - Approved Requesters - Technology Solutions

Approvers and requesters are Buyers and Planners.

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)

Appendix - List of Plants - Composite Materials

Roll Out 1 for composite material direct procurement data part involves plants:

8367 - 7180 Rock Hill
8785 - 7180 Piedmont
8350 - 7771 Wrexham
8802 - 7771 K&N Non-Bonded Reading
8796 - 7771 K&N Bonded Reading
8822 - 7771 Palmetto Greenville, SC

Roll Out 2

8361 - 7180 Orange
8364 - 7180 Anaheim
8365 - 7180 Greenville, TX
8795 - 7180 ET Horn La Mirada (Wh)

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.

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Appendix - 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

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.