2.0 Business Process

General Information

To build a purchasing report, it is important to understand the main structuring data implemented in SPRINT.

The below information is aimed to help you.

Segment Management is a strategic process for managing the purchase of goods and services. It aligns business goals and customer requirements with supply market capability and maximizes long-term value for the organization.

The purpose of the new Global Purchasing Segmentation project is to classify our purchases and related sources, to ensure the integration of data into a single reference matrix and to transfer the information to all the tools accordingly. This will be achieved by using a 3-level hierarchy consisting of Domain, Segment and Material Group. The Domain and Segment hierarchy is designed to be common and unique forsuppliers and items (goods and services). Suppliers are assigned to one segment according to preponderant spend. Items (goods and services) are assigned to one Material Group based on the category of purchase.

Once the target model was defined, the segmentation was reviewed with and agreed upon by the Domain networks, and validated at the end of 2013. All updates introduced since this date have been revalidated by purchasing, general ledger and tax.

For more information  : GPS SITE

PRS Supplier Code

PRS is one dedicated SAP environment (based on PF1) which aim is to unify some structural information as segmentation, suppliers… :

• STEP 1

If you want to analyze only CAPEX spend : please select CAPEX in the CAPEX flag field available in the prompt :  

• STEP 2

If you want to analyze the split between CAPEX and OPEX, please let the field blank in the prompt and launch the query with the different criteria needed.

In the query :

Drag and drop the CAPEX flag available as a dimension:  

• STEP 3

How to read the results ?

•  CAPEX comes always from the WBS element and here is equal to 49 263 136€
• Billing concerns only purchase to sell and has to be considered as CAPEX : 1 741 933€
• OPEX comes from both the OPEX related to projects (10 757 346€) and the OPEX without project s(3 221 3030 162€) = 3 232 060 508€

By default, SPRINT includes the A, B and C class suppliers and the not assigned class suppliers at vendor and/or creditor level in the prompt : 

But, the Solvay Internal Suppliers are excluded by default.To include them, select the Creditor and Vendor class “G” and launch the query :

Exchange rate

In some SPRINT queries, we can use the field “Target currency” to select the currency we want to have in our report.

SPRINT exchange rate is based on CAR3 which is the Cumulated monthly mean :

Formula :

MMC = (MM1 + MM2 + MM3 + ... + MMn)/n

Related articles

BW - Exchange rates

GPS Site

Queries

The below diagram shows the main queries and processes associated with this application

Queries Overview

SPEND Analysis Query

For buyers, this query provides a clear vision of the commitments (Purchase orders), accruals (Receipts) and Spend (Invoices) for a chosen period.

Consignment Flow

Solvay Consignment process :

PO follow up Analysis Query

Solvay Consignment process :

Payment terms Analysis Query

Where does the payment terms in purchase order come from?

Where does the payment terms in invoice come from?

Payment terms management flow

Non Conformance Analysis Query

xxxx

Material & Contract Query

xxxx

SRM7 Query

xxxx

Supplier Code Cross Table

xxxx

3.0 Application Feature Overview

4.0 Functional Specification

4.1 General Data/Calculations 

This section approaches the concepts/definitions that will be used in all the reports and required to understand the data from the reports.

SPEND Analysis Query

• Consignment Flow

Consignment - PO Follow Up query :

Consignment - Spend query versus PO Follow Up query :

Dimensions

PO follow up Analysis Query

• Prompt

• STEP 1

In the prompt, complete the period "Calendar Month/Year"

It will provide you all the PO, Receipts and Invoices posted in SAP during this selected period.

• STEP 2

The field "Event Type" has to be completed by chosing :

• Purchase Order

• Goods Receipt

• Invoice Receipt

• This Event type is linked to the chosen period.

• Ex : we choose 2 - Invoice Receipt.

• In the report, if we take the dimension "calendar day", it will give the exact day of the Invoice posting in SAP.

• You can also enter directly a PO number, or a SAP Contract number to track its document flow.

Dimensions

The dimensions are very detailed.

All information related to the Purchase Request, the PO, the Invoice, the SAP Contract, the InfoRecord and the vendor (including partner functions) are available.

Payment terms Analysis Query

• Prompt

• STEP 1

In this prompt, we can select more accounting fields, such as the Net Due Date, the Clearing Date, the Accounting document

To be able to link a domain and a segment to the spend, a specific rule has been implemented in SPRINT : the Spend Assignment rule.

 Contract number to track its document flow.

Non Conformance Analysis Query

Prompt

• STEP 1

The selection of the period of Non-Conformance analysis is mandatory.

You can select several values such as the domain, segment or material group but also the coordinator or the author of the notifications.

An analysis by gravity level is also available

Dimensions

Prompt

You can select :

A chosen material if you want to analyze its sourcing (link material/plant)
A chosen document to view its details
A chosen supplier if you want to analyze his related documents

• STEP 1

By default, the system gives you only the documents still valid in SAP :

ex : you will see only SAP Contracts, Scheduling Agreements and Purchase info records still valid today on November the 7th, 2016 with a validity period ending in the future.

Dimensions

The dimensions give all details of the Vendor and all available documents :

•Sap Contracts
•Scheduling Agreements
•Purchase Info Record

SRM7 Query

Prompt

You can make an analysis either by :

• Stakeholders : Requestor, Approver

• Vendors

• WBS Elements

The following time axis can be selected (day/month/year) :

• Creation Date

• Approval Date Start

• Approval Date End

• Change Date of document

Dimensions

A default template is available with all shoping cart workflow information.

Moreover, other information can be added as dimension

Supplier Code Cross Table

Prompt

Dimensions

Dimensions give few information as this query is only a cross table :

4.2 Process Detail 

4.2.1.  Report/Process Definition 

This section represents the process with detail information for the application.

SPRINT new application architecture

SPEND Analysis Query

The Spend Assignment Rule

To be able to link a domain and a segment to the spend, a specific rule has been implemented in SPRINT : the Spend Assignment rule.

Indicators

• STEP 1

Double click on"Measures" to find all indicators available.

• STEP 2

Total Invoiced Value (FI) : Default KPI

FI Spend (based on the Invoice posting date) in target currency (including total Joint Ventures spend) with the split of spend with or without PO.

Total Invoiced Value (FIxJV) 
FI Spend  in target currency with the percentage of consolidated Joint Venture (purchasing perimeter).

Total Value of tax (target currency)
Only used by Credit Management team.

But end users can also add the following KPIs :
Total Invoiced Value (FI) (Document currency)
FI Spend in document currency (including total Joint Ventures spend) with the split of spend with or without PO.

Total Invoiced Value (FIxJV) (Document currency)
FI Spend in document currency with the percentage of consolidated JV (purchasing perimeter).

Total Value of tax (Document currency)

Only used by Credit Management team.

Total Invoiced Value (FI) (Company currency) 

FI Spend in internal currency (including total Joint Ventures spend) with the split of spend with or without PO.

 
Total Invoiced  Value (FIxJV) (Company currency) 
FI Spend in company currency with the percentage of consolidated JV (purchasing perimeter).
Total Value of tax (Company Currency)
Only used by Credit Management team.

Each indicator provides also a display of the split of the Spend with and without Purchase Order by clicking on 

How the Spend indicators are calculated ?

The dimension “Consolidation method” allows you to know how the JV is consolidated

Global Integration = Full consolidated

Solvay consolidates the legal entity at 100%

Proportional integration = Proportionately consolidated

Solvay consolidates the legal entity at the % indicates for P&L and Balance Sheet (payables).

Equity Method = Equity method.

Solvay consolidates only the legal entity result in the last part of the P&L at the % in the file.  No integration at Balance sheet (payables) thus 0% at spend level.

The others methods:

Sold 0%, Not fully consolidate 0%, Not equity method 0%,Not assigned 0%

Are not taken in account and checked with the financial file.

Only merged method is taking also at 100%.

PO follow up Analysis Query

Indicators

• STEP 1

MANDATORY - 

In the report, you need to filter on the same period than the chosen period in the prompt

 Put "Calendar Month" as a dimension & Right Click on it.

 By default, the system selects old invoicing dates (even if the chosen period in the prompt was Jan.2016>Oct.2016).

 Deselect the old invoicing dates and keep the period running from Jan.2016 to Oct.2016.

• STEP 2 - Orders & Receipts

• Ordered Qty 
  Quantity from the SAP purchase order
• Ordered value
  Amount from the SAP purchase order
• Average Ordered value :
  Purchase Order price unit
  
• Receipt Qty :
  Received quantities (from SAP Goods Receipts)
  
• Receipt value :
  Goods receipt amount
  
• Average Receipt Value :
  Receipt Price Unit

STEP 3 - Consignment Consumption

This is when the stock property transfer is done between the supplier and Solvay :

• Transfer in Solvay stock location or

• Direct Consumption

Consignment

See Consignment flow

SPRINT gives you the quantity and the related amount consumed.

• STEP 4 - Invoices

Each column can be opened by clicking on 

• Total Invoiced Qty :
  It is the Total Invoiced quantity from SAP Invoice document + the SAP invoiced quantities from consignment (which is a specific flow).
• Invoiced Consignment Qty :
  SAP Invoiced quantities from Consignment flow.
• Invoiced Qty :
  SAP invoiced quantities (all flows except Consignment).
• Invoiced Delivery Cost :
  SAP invoiced transportation costs.
• Subsequent Qty :
  Debit or Credit note quantities.
• Subsequent Delivery Cost Qty :
  Debit or Credit note quantities related to transportation. 

Payment terms Analysis Query

Indicators

PAYMENT TERMS FROM MASTERDATA :

• Vendor Payment Terms (PUR) in day
  Payments terms from SAP Supplier Masterdata (purchasing view) translated in days
  
  
• Vendor LFM2 Payment Terms in day
  Alternative Payments terms from SAP Supplier Masterdata (by division) translated in days

• Creditor Payment Terms (Co) in days
  Payments terms from SAP Supplier Masterdata (company view) translated in days

PAYMENT TERMS FROM DOCUMENTS:

• Contract Payment Terms in days
  Payment terms from SAP Contracts translated in days
• Purchase Order Payment Terms (weighted) in days
  Payment terms from SAP Purchase Orders translated in days
• Invoice Payment Terms (weighted) in days
  Payment terms from SAP Invoices translated in days

ACCOUNTING INFORMATION :

• Net Due Date - Clearing Date
  It is the Net Due Date minus the Matching Date (payment)
• Total Invoiced Value (FI) (EUR)
  FI Spend in euro including Joint Ventures
• Total Invoiced Value (FI) (Ocurr)
  FI Spend in invoicing currency including Joint Ventures
• Total Invoiced Value (FI) (Icurr)
  FI Spend in company currency  including Joint Ventures
  
  

The objective of these indicators is to compare the different payment terms from SAP masterdata and documents in Solvay 3 legacies (RCS Rhodia, Solvay PF1 and Acetow RHO) :

PAYMENT TERMS DEFINITION :

1. Vendor Payment terms (PUR) are always linked to a Purchasing Organization : 
    Then, a same supplier can have different payment terms according to Solvay different Purchasing Organizations
   
   
2. Creditor Payment Terms (Co) are always linked to a Company: 
    Then a same supplier can have different payment terms according to Solvay different companies
   
   
3. Vendor Payment Terms (LFM2) are linked to a plant :
    Then a same supplier can have different payment terms according to Solvay different  plants
   
   
4. If  Vendor Payment Terms (PUR), 'Vendor Payment Terms (LFM2) and  PO Payment terms are not assigned and if there is no Vendor of PO :
   Then it is a flow without Purchase Orders (Direct Invoice)
   Therefore Creditor Payment terms (Co) and Invoice Payment terms are completed with the payment terms
   
   
5. If SAP Contract Payment terms are not assigned :
   Then no SAP contracts exist
   
   
6. If Invoice Payment Terms are not assigned
   Then no Invoice payments terms exist, the payment has been done manually by the accounting department 
   
   
7. Payment terms can be modified manually at PO level, Contract level and also Invoice level
   Then payment terms can be different sometimes

HOW TO COMPARE PAYMENT TERMS ?

1. Compare the SAP Contract Payment terms with the PO Payment terms :
   They should be the same unless backoffice changed it in the Purchase Order
   
   
2. If there is no contract, the PO Payment terms should come from the Vendor Payment Terms (LFM2) linked to the Plant if mentioned in the masterdata (optional) :
   Then PO Payment terms should be the same than Vendor Payment terms (LFM2) unless backoffice changed it in the Purchase Order
   
   
3. If there is no contract, no Vendor Payment Terms (LFM2) then the PO Payment terms will come from the Vendor Payment Terms (PUR) linked to the Purchasing Organization :
   Then PO Payment terms should be the same than Vendor Payment terms (PUR) unless backoffice changed it in the Purchase Order
   
   
4. Compare the Invoice Payment terms with the PO Payment terms :
   
   They should be the same except :

• if the accounting department changes it in the invoice

• if the accounting department makes manual payment using a specific field ("base date") when invoice payment terms are not assigned

Non Conformance Analysis Query

Indicators

• STEP 1

Double click to Measures to find all indicators available :

• Total Notifications items
  Number of notifications created
  

• Closed Notifications items :
  Number of notifications closed (with a completion date)

• % of closed  notifications :
  Number of closed notifications divided by the total  number of notifications

• Notifications open after 2 months :
  Number of notifications still open after 2 months.
  This indicator is based on the creation date of the notification ("Date created record") and the notification status (must be different from the "notification completed“)

• % of Notifications open after 2 months:
  Number  of Notifications still open after 2 months divided by the total number of notifications

• Treatment time (in days) :
  Number of days of treament for each notification.
  Calculation done once the notification closed

• Financial Impact  :
  Amount recorded manually in QM (free text)
  « -1 » means  «financial impact to be confirmed later »

• Demerit : 
  The demerit is based on the following gravity levels:
  G1=1; G2=10; G3=50; g4=100

• Average Demerit
  Total Demerit level divided by the total number of notifications

Material & Contract Query

Indicators

The result of the report gives all documents with the expiration date and all the amount details for each document.

INDICATOR1

PURCHASE INFORECORDS

For Purchase Inforecords, SPRINT shows you PIR net price and PIR Unit quantity.

SPRINT :

Here the PIR info in SAP :

SPRINT is also able to give you the PIR Scales quantities  :

It allows to display the different ranges of prices according to bought quantities.

SPRINT :

Here the same values in SAP :

INDICATOR2

OUTLINE AGREEMENTS :

• Outline agreement is a long term purchasing agreement with vendor containing terms and conditions regarding the material that is supplied by vendor.

• Outline agreement are valid up to certain period of time and cover a certain predefined quantity or value.

Outline agreement is of following two types.

• SAP Contract

• Scheduling Agreement

In the SAP Contracts field, you can find SAP contracts numbers (ranging with 47xxxxxx) and also Scheduling Agreements (ranging with 55xxxxxx) :

SAP CONTRACTS :

SAP Contract Target Value :

This indicator takes into account the value of the SAP Contracts and the Scheduling  Agreements.This indicator comes from SAP  IT tables.

SAP Contract Target Qty (1)

This indicator takes into account the targeted quantities from the SAP Contracts.

SAP Contract Net Price : (2)

This indicator takes into account the unit price from the SAP Contracts. 

SAP Contract Unit Quantity : (3)

It specifies how many units of the puchase order price unit the price is valid for.

SPRINT :

The information coming from SAP :

SAP SCHEDULING AGREEMENTS

Scheduling agreement is a long term outline agreement between vendor and ordering party over a predefined material or service which are procured on predetermined dates over a framework of time.

Scheduling Agreement Value :

This is the total amount by item : net price X the target quantity (scheduling agreement quantity)

Scheduling Agreement Quantity (target quantity) ;

Total quantity, agreed with the vendor, that can be released or scheduled against the Scheduling agreement

SPRINT :

SAP Scheduling Agreements :

SOURCING

Number of different sources (SAP contract, Purchasing Inforecord, Scheduling Agreements) for a material in a selected plant.

Go to Measures (Indicators) and deselect all.

Select only "Nb of Sourcing"

Go to Rows and put the following dimensions

STEP 3

The report considers that we have two sourcing as we have :

One SAP Contract n 4700002086 (for vendor 54238 BRENNTAG) (1)

 One vendor 56237 NOVACID (2)

A Source list flag exists also for Vendor BRENNTAG (Source List Flag is equal to YES).(3)

It means that in SAP, we consider this source of supply as priority.

SPRINT :

Same information than in SAP :

SRM7 Query

Indicators

By default, all indicators are available in the report in number of days :

Lead Time request : this is the approval lead time based on the request date (Approval date end minus Approval request date).

Lead time transferred date: this is the approval lead time based on a transfer of validation ( Approval date end minus the Approval transferred date).

Lead Time conditional : if no transfer of validation is done, the Lead Time conditional is equal to the Lead Time request.

Lead time date: 

1) if no transfer of validation is done, then this indicator shows the duration of the approval process based on the beginning of the approval workflow (Approval Date end minus the Approval date start).

2) In case of transfer of validation : the indicator shows the duration of the approval process based on the date of transfer (Approval date end minus Approval transferred date).

Supplier Code Cross Table

Indicators

This query doesn’t provide indicators as its aim is to display Creditor/Vendor codes :

5.0 Non-functional Descriptions 

5.1 Usability

Usability is about the ease with which a User can learn to start using the solution and the ease with which they can use the system.  In addition to ease of learning and ease of use, usability also includes areas such as ease of recall, error avoidance and handling, accessibility among others e.g., 99% of metadata entry Users who have use the Maintenance Dashboard should be able to change filters, extract etc., when required.  Maintenance data will be centrally stored in the Google Cloud platform, which will be available to other applications e.g., and Dashboards if needed.

5.2 Regulatory Compliance

Software systems must comply with legal and regulatory e.g., GDPR requirements, this can change depending on country, organisation industry and / or region.  The software systems must be secure from unauthorized access.  The Maintenance Dashboard will comply with Solvay’s regulations and compliance e.g., access only granted to authorized Users.

5.3 Security

Security refers to essential aspects that assure a solution and its components will be protected against unauthorized access or malware attacks.  Important considerations related to security aspects of a system are User authentication, User authorization or User access privileges, data theft, malware attacks, data encryption, and maintaining audit trails, e.g., only Users with administrator access shall be able to create new accounts and assign data access privileges to the new accounts e.g.,

• All data will be encrypted in the dashboard
• Only authorised Users / Administrative Users will be able to access data.
• Maintenance data will be split between either SCO or ECO, and Users will only have authority to one Entity data.

5.4 Performance

Performance defines how fast a software system or a particular section of it responds to certain User actions under a certain workload.  In most cases, this metric explains how long a User must wait before the target operation happens e.g., the page renders, a transaction is processed, etc., given the overall number of Users now.  Performance requirements may describe background processes invisible to Users, e.g., backup and speed of data transfers. 

5.5 Reliability

Reliability is the ability of a solution or its component to perform its required functions without failure under predefined conditions for a specified time / period.  Reliability can possibly be specified in terms of average time system runs before failure occurs, percentage of operations completed successfully within a time / period, maximum acceptable failure probability, or number of failures within a period.  Reliability aspects are in reference to (but not limited to) evaluation of the system to be considered as reliable, classification of reliability defining failures vs. regular failures, and the impact of failure on business operations.  The Maintenance Dashboard will display data from the previous refresh of data.   

5.6 Scalability

Scalability refers to the degree to which a solution can evolve to handle increased amounts of work.  The increased amount of work could be in terms of the user base, transactions, data, network traffic, or other factors e.g., the system should be able to handle an additional load of a maximum of 5,000 Users every month for the next 6 months without any noticeable performance impacts.  

5.7 Compatibility

Interoperability is the degree to which the solution is compatible with other components.  It is a measure of how effectively the system interoperates with other software systems and how easily it integrates with external hardware devices.

Interoperability aspects to be discussed during elicitation are in reference to (but not limited to) software systems to be interfaced with along with data / messages to be exchanged and any standard data formats, hardware components to be integrated with, and any standard communication protocols to be followed e.g., Order Management system will push the order file into a secured file transfer protocol server from where it will be loaded into the system through a daily job.  To guarantee between Google Cloud platform and SAP BW Queries e.g., BW_QRY_MVPMOR01_0002, Solvay has introduced a new tool called Xtract (Xtract).

5.8 Availability

Availability is the degree to which the solution is operable and accessible when required. It is a measure of time during which the system is fully operational e.g., available for use and sometimes included as a Service Level Agreement (SLA) considering its criticality to the business, e.g., the system shall be at least 99% available on weekdays between 09:00 to 18:30 Central European Time (CET).

5.9 Refresh of the Data

Frequency, data, and time of the data refresh in the data product.