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. | 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
| |
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 | ||
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 | 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 | ||
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
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 |
Main activities | Tips / Best practices | Key points |
Select the line | Click on |
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 | ||
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"
Check each roll assigned to the main vendor and go to ME31K transaction for the contract creation
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
- Double click on the first line
- Assign the missing role by adding the function and the vendor number
- 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.