Table of contents
1. Objective and Scope
1.1 Objective of this Procedure
1.2 Scope
2. Reference Documents
3. Definitions
4. Roles & responsibilities
5. General Operational Procedure
5.1 Description of transactions
5.1.1 Transaction MM01
5.1.2 Transaction MM02 and MM03
5.1.3 Transaction MM06
5.1.4 Transaction ME11 and ME12
5.2 Requirements for material creation
5.2.1 Searching for an existing material in RCS
5.3 Material Creation (ZERS, ZUNB, and ZHIB)
5.3.1 View 'Basic Data 1'
5.3.2 View 'Basic Data 2' - NAM only
5.3.3 View 'Purchasing'
5.3.4 View 'Foreign[ trade import' - LAM only|#_6b3bjx5uzb7i]
5.3.5 View 'Purchase order text' - LAM only
5.3.6 View 'MRP 1'
5.3.7 View 'MRP 2'
5.3.8 View 'MRP 3'
5.3.9 View 'MRP 4'
5.3.10 View 'Plant Data / stor. 1'
5.3.11 View 'Plant data / Stor. 2'
5.3.11 View 'Accounting 1'
5.3.12 View 'Accounting 2'
5.4 Creating additional accounting views - ZN/ZR
5.4.1 Enabling different types of valuation.
5.4.2 Creating 'ZN' view
5.4.2 Creating 'ZR' view



1. Objective and Scope

1.1 Objective of this Procedure

This document will explain how Material Master Records should be managed by Data Controllers, responsible for LAM and NAM Scope. It will define the main rules and best practices that should be applied to have the highest level of compliance with Syensqo Group rules and attend to our internal customer needs. It includes Master Records creation and modification.

1.2 Scope

This procedure applies to all Industrial Supplies Material in LAM and/or NAM Region. It also specifies the role of the Data Controller, inside the process of Material Master Data for Industrial supplies (ZERS), Stocked and not valuated (ZUNB), and General Supplies (ZHIB). Concerning all NAM and LAM regions. Using the SAP System WP1_400 (RCS).

2. Reference Documents

N/A

3. Definitions

Abbreviation

Description

SBS

Syensqo Business Services

LAM

Latin America

NAM

North America

PO

Purchase Orders

PIR

Price Info Record

CFOP

CÓDIGO FISCAL DE OPERAÇÕES E PRESTAÇÕES

NCM

Nomenclatura Comum do MERCOSUL


4. Roles & responsibilities

Requester

The requesters are responsible for collecting all necessary information from third parties to request creations or changes. These requests should be sent by the Self-Service Tool to access the Freshdesk Tool.

Before submitting a new request, it is the requester's responsibility to ensure the material does not exist in SAP already, so no duplicates are created in the system. If the material was not found, the ZERS form must be filled and submitted for the Buyer's review and approval. Once the authorization is obtained, the form and approval must be sent to the Data Operations team.

Requests for material creation can be performed by the Stockroom Coordinator or the Buyer, in this case, the request is auto-approved, as the Buyer is responsible for reviewing and approving the requests.

Data Controller

The Data Team is responsible for double-checking the requests received to grant data compliance.

The process regarding the Material Master Data process should be managed in the WP1 system.

Requests are received by the team, who will check if the form was filled correctly and if the required approval was obtained. A second search in the system is performed by the team, to ensure no duplicates are created.

It is under Data's responsibility to check whether all the required information to set up a material account was provided.

Once the request is completely processed, the Master Data Team has to inform the requester (authorized agent) of the completion of their request by email.

5. General Operational Procedure

5.1 Description of transactions

5.1.1 Transaction MM01

This is the transaction for material creation, where we can create a new Material code.
More information on section 5.3.

01 – Select Views: Click on this to select the views to be created.
02 – Org. Levels: Click on this to select the Organizational levels to be created, such as plant, storeroom, etc.
03 – Data: Click on this to start creating the items without selecting additional information (Basic Data only) select the views to be created.
04 – Material: If you already have a material code and you need to create it for other plants you need to add the code here to avoid material duplication
05 – Industry sector: We need to choose the industry sector related to the material, in our case, it will always be the Chemical Industry.
06 – Material Type: We need to select here the material type of our creation. In our case we will choose the options below:

07 – Material: In this field, we can select a material to copy the information.

5.1.2 Transaction MM02 and MM03

Both transactions are very similar. The main difference between them is that MM02 is used to modify data and MM03 is used only to display data.

08 – Select View(s): Click on this to select the views to be checked/changed.
09 – Org. Levels: Click on this to select the Organizational levels to check/change.
10 – Data: Click on this to check/change general data.
11 – Material: code that you want to work on.

5.1.3 Transaction MM06

This transaction is used to flag a material for deletion in a general view or a specific view.For more information, check section 5.7.

12 – Material: Fill in the Material number you want to flag or unflag for deletion.
13 – Plant / Stor. Location: Fill with the location info you want to flag or unflag for deletion.
14 – Valuation Type: Fill with the Valuation Type you want to flag or unflag for deletion.
15 – Sales Org: Fill with the Sales Organization you want to flag or unflag for deletion.
16 – Distr. Channel/ Warehouse No./ Storage Type: Fill with the storage info you want to flag or unflag for deletion.
17 – Change Number: Fill with a Material code you want to copy the information from

5.2 Requirements for material creation

All mandatory information in the form, approval, and documentation must be provided by the requester. D&A Team will perform some quality checks to insert the most accurate data in the SAP system.
The Data Controller will double-check for duplicates before completing the request and communicate with the requester if any data is missing, confused, or duplicated.
Requests for material creation can be performed by the Stockroom Coordinator or the Buyer, in this case, the request is auto-approved, as the Buyer is responsible for reviewing and approving the requests. For the LAM region, we don't need the buyer's approval.
The standard form used for material creation and modification is called the ZERS form and contains all the information necessary to create the material and also add the MRP, storage, purchasing, and accounting views; the recent version is based on a google sheet document (LAM e NAM).

5.2.1 Searching for an existing material in RCS

You can search for existing material by using transaction MM03.

21 – On material, just select the field by clicking on it and the "matchbox" will appear, click on it or just press the shortcut button "F4".
In the next window, we will be able to perform our checks. To search for an existing material we normally perform searches in the tab Material by Material type, plant, and long text (you can choose different parameters, depending on the information you have).

22 – Material type: you need to add here the material type that you are creating i.e. ZERS.
23 – Plant: Normally this is filled just if you want to restrict your search to a plant. We left this field blank to search for all items available to all plants
24 – Material Description: add the main part of material names with Use * between words to search a range of words. For example, V*LV will bring as result from the words VALVE and abbreviation VLV
25 – Material Long text: here you can perform the check-in of the long texts created for materials
26 – Language key: add the language you want to search. As standard we use EN
If the material has been found, it means the request may be duplicated, so contact the requester for verification. Inform the RCS material number and description for reference. If the material was not found, continue the material creation.

5.3 Material Creation (ZERS, ZUNB, and ZHIB)

Remove special characters like, and so on from the short description of the materials in the file.
Go to SAP transaction MM01

27 – Material: If you already have a material code and you need to create it for other plants you need to add the code here to avoid material duplication, for new materials leave it blank;
28 – Industry sector: By default, "Chemical Industry";
29 – Material Type: We need to select here the material type of our creation; in our case, we will choose one of the options below, informed on the original form:

30 – Material: In this field, we can select a material to copy the information from
To continue you can press enter or select field "Select View(s)"

29 - Select the following fields:


Note! You can choose to add these views as default by clicking on 31 (default setting). Every time you enter again it will be selected
30 - Press enter again or click to proceed and choose the plant and storage location

32 – Plant: add the plant requested
33 – Sort. Location: add the storage location requested
34 – Copy from: if you are copying one material, you can add the information in those fields to copy the information to the new record
35 – Press enter again or click the checkmark to proceed with the material creation

5.3.1 View 'Basic Data 1'


36 – Material: Alphanumeric key uniquely identifying the material. – information created automatically
37 – Material Description - Text containing up to 40 characters that describe the material in more detail.
38 – Base Unit of measure - Unit of measure in which stocks of the material are managed. The system converts all the quantities you enter in other units of measure (alternative units of measure) to the base unit of measure. – The base UOM should be the smallest unit possible. For example, if the material is requested by case, the base UOM should be each and the alternate UOM should be the case.
Check this file for the corresponding conversion from Portuguese to English the unit of measure in tab "Unidades de Medida" Data Operations - MASTER FILE LAM
39 – Material Group: Key that you use to group several materials or services with the same attributes, and to assign them to a particular material group. (DSF in the form)
40 – Division: A way of grouping materials, products, or services. The system uses divisions to determine the sales areas and the business areas for a material, product, or service. As default the information needs to be filled as:

53 – GR Processing Time: Number of workdays required after receiving the material for inspection and placement into storage - As standard, we add 1 (insert another number only if the requester provides information different from 1).
54 – Critical Part: Specifies whether the material is a critical part, that is, a particularly important part - This needs to be flagged if the information is provided in the form.
55 – Source list: Specifies if the material needs a source list. If NAM, always flags it. If LAM, don't flag it.
55.1 – Post to Insp Stock: Specifies if the material needs to pass a quality inspection before entering the stock. It can be visual or more accurate. It is necessary to avoid stock divergences and delivering the wrong material. Only for Brazil.











IF NAM
Go to section 5.3.6 (MRP1)
IF LAM
Go to next section 5.3.4.

5.3.4 View 'Foreign trade import' - LAM only


LAM ONLY
56 – Control code: for LAM, it's the NCM (Nomenclatura Comum do Mercosul), always informed by the requester. When replying to the email, we need to inform the tax team about the NCM you have added, so please copy:


57 – Mat. CFOP category: This is the CFOP category of material. - as Standard, we fill with 0
IF LAM
Go to next section 5.3.5 (Purchase Order text (LAM only))
IF NAM
Go to section 5.3.6 (MRP1)

5.3.5 View 'Purchase order text' - LAM only


LAM ONLY
58 – Here you will add the information that will appear in the PO text (long text) including Inspection level and Lack/Risk;
59 – Click to create in additional languages: use English, Portuguese and Brazillian Portuguese – to add this information we need to click on the file button (For LAM vendors, this field should contain the inspection level and risk of lack of material - informed on the form).


5.3.6 View 'MRP 1'


60 – Base Unit of Measure: Information copied from General Data
61 – MRP Type: Key that determines whether and how the material is planned. Information provided in the ZERS Form.
62 – Reorder Point: If the stock falls below this quantity, the system flags the material for requirements planning by creating a planning file entry. (Note: depending on the MRP Type, this field becomes mandatory to proceed)

63 – Planning time fence: The planning time fence specifies a period within which no automatic changes are to be made to the master plan.

64 – MRP Controller: Specifies the number of the MRP controller or group of MRP controllers responsible for material planning for the material. Information provided in the ZERS Form.
65 – Lot Size: Key that determines which lot-sizing procedure the system uses within materials planning to calculate the quantity to be procured or produced.



66 – Maximum stock level: Quantity of the material in this plant that may not be exceeded (Note: depending on Lot Size, this field becomes mandatory)

5.3.7 View 'MRP 2'


67 – Prod. stor. Location: In the case of a material produced in-house, this is the key to the storage location that is copied to the planned order, production order, or run schedule quantity.

68 – Storage loc. for EP: Key of the storage location that is proposed in the purchase requisition in materials planning for subsequent storage of the material. In the case of a material procured externally, this storage location is proposed in the planned order in materials planning
NAM: Information provided in the ZERS form
LAM: Information provided in the ZERS form
69 – Planned Deliv. Time: Number of calendar days needed to obtain the material or service if it is procured externally. Information provided in the ZERS form
70 – GR Processing Time: Information copied from "Purchasing"
71 – SchedMargin key: Key that the system uses to determine the floats required for scheduling an order. Always fill it with "000".
72 – Safety Stock: Specifies the quantity whose purpose is to satisfy the unexpectedly high demand in the coverage period. The risk of shortfalls is reduced by having a safety stock – Information provided in the ZERS Form, if not leave it blank;

5.3.8 View 'MRP 3'


73 – Availability check: This field is related to availability that the system will analyze to check the stock. Always fill it with "02".

5.3.9 View 'MRP 4'

No actions to be performed on this view, just pass through it to enable the fields.

5.3.10 View 'Plant Data / stor. 1'


74 – Storage Bin: Identifies the storage bin within a storage location where the material is stored.


5.3.11 View 'Plant data / Stor. 2'


75 – Profit Center: Key which together with the controlling area uniquely identifies a profit center.Information will always be informed in the ZERS Form

5.3.11 View 'Accounting 1'

For NAM

76 – Valuation Class: Default value for the valuation class for valuated stocks of this material. Always Z120.
77 – Moving Price: Material's price – add the price informed in the x1000
78 – Price Unit: Number of units to which the price refers. – Always 1000
79 – Standard Price: Standard price of the material – Same information as Moving Price
For LAM

80 – Valuation Class: Default value for the valuation class for valuated stocks of this material.
ZERS - Z120 for consumption items, Z160 for industrialization
ZHIB – Z170 for all materials, except if it's requested to use Z175
81 – Price Unit: Price of the material. – add the price informed in the x1000
82 – Per Price unit: Number of units to which the price refers. – Always 1000

5.3.12 View 'Accounting 2'

For NAM: no actions to be performed on this view, just pass through it to enable the fields.
For LAM:

83 – Material usage: This indicator shows the intended usage of a particular material in inventory. – use code 1 for Industrialization or 2 for Consumption (the type of material provided on the form)
84 – Material origin: This indicator shows whether the products were produced inside Brazil or were imported. If the goods were imported, it also indicates whether they were imported directly by the company or not. – information provided on the form with the codes below:
Origin of material:



85 – When complete, save the material.

5.4 Creating additional accounting views - ZN/ZR


This procedure applies to LAM materials, in the Paulinia plant (Brazil). If the requester informs that the material is recoverable (this information should be placed on the form) we have to create the views ZN/ZR that are the split accounting view.


5.4.1 Enabling different types of valuation.

Enter in transaction MM02, choose the 'Accounting 1' view.

86 – Enter with material number;
87 – Press enter, select 'Accounting 1';
88 – Click on the checkmark;

89 – Add Plant code (7525 if Paulinia);
90 –Click on the checkmark or press enter;

91 – Valuation Category: Determines whether stocks of the material are valuated together or separately. – We need to fill out this with a "Z" to allow us to create ZN/ZR views
Save it.

5.4.2 Creating 'ZN' view

Now go to transaction MM01, to create the new valuation types.

92 – Enter Material code you want to create the ZR/ZN;
93 – Material copy from: use the same material;
94 – Press enter and then select views 'Accounting 1' and 'Accounting 2';
95 – Click the checkmark;

96 – Plant: code 7525 in organizational levels;
97 – Copy from: use the same plant code;
98 – Valuation type: choose ZN (Price related to new item);
99 – Click the checkmark;

100 – Price Unit: Price of the material. – add the price informed in the x1000
101 – Per Price unit: Number of units to which the price refers. – Always 1000
As we copied the information from the material without the split view, the fields are already completed. For more information, check section 5.3.11.
On tab 'Accounting 2':

Fields 'Material usage' and 'Material origin' should be filled as the reference material, since we copied the information the fields should be already populated. If needed, check section 5.3.12 for more information.
Save it.

5.4.2 Creating 'ZR' view


102 – Enter Material code you want to create the ZR/ZN;
103 – Material copy from: use the same material;
104 – Press enter and then select views 'Accounting 1' and 'Accounting 2';
105 – Click the checkmark;

106 – Plant: code 7525 in organizational levels;
107 – Copy from: use the same plant code;
108 – Valuation type: choose ZR (Price related to recoverable);
109 – Click the checkmark;

110 – Price Unit: Price of the material: always 10.00
111 – Per Price unit: Number of units to which the price refers. – Always 1000
As we copied the information from the material without the split view, the fields are already completed, pay attention to change the price to 10,00
On tab accounting 2

Fields 'Material usage' and 'Material origin' should be filled as the reference material, since we copied the information the fields should be already populated. If needed, check section 5.3.12 for more information.