ACO_MM_TBP_12_Purchasing Process - Contract-

To Be Process

Purchasing Process Contract

V2-TBMM12 - Purchasing Process - Contract-v0

Table of content

21Document updates and validations

2Scope22.1Process scope description22.2Application architecture (global)22.3Cross references23Process33.1Core model - process flow and description33.1.1Products not integrated into BOMs but managed in stock33.2Country or customer specific - process flow and description43.2.1Country specific process Flow France44Business Rules54.1Core model Business rules54.2Country or customer specific Business Rules65Key elements of system implementation65.1Core model Key elements of system implementation65.1.1Materials not integrated into BOMs but managed in stock65.1.2Contract content75.1.3Contract printout165.2Country or customer specific Key elements of system implementation165.2.1Country specific key elements of system implementation - France165.2.2Country specific key elements of system implementation - All175.3Summary176Organizational roles and impacts187Application specific development requirements188Key volume & performance indicators189Added value for the Business and economical considerations18

1 Document updates and validations

The table below lists all modifications and updates done on the considered document. Fill in Date, Author and a summary of the documents update content, reason and/or objectives.

Updates

DateVersionAuthorComment

07/11/02V0C. HemeryDocument creation

13/10/03C. ChoubardDocument updating

The table below lists all the successful validations done on the document ; if the document was asked for validation but not validated then there is no entry in this table (status by default is OK).

Validations

DateVersionValidation Resp.Comment

2 Scope

2.1 Process scope description

This document describes the use of Contracts for Saint-Gobain Sekurit, for all countries implemented with Sekurit Avenir solution. It deals with all types of purchases which can be performed in reference to contracts, i.e. :

Products that are not included into BOMs but managed in stock,

General expense for services.

The sites concerned are all types of plants : glass plants, extrusion / encapsulation plants and service centers.

Out of scope :

Other purchasing document categories : purchase requisitions, purchase orders, scheduling agreements and request for quotations.

Transition period :

Not relevant.

2.2 Application architecture (global)

Not relevant.

Contracts only concern SAP system.

2.3 Cross references

TBPP13Supply Create deliveries requests

V2-TBMM08Supply Manage deliveries requests

TBMM09Purchasing process per material type

V2-TBMM11Purchasing process Purchase requisitions

V2-TBMM14Purchasing process - Purchase orders

3 Process

3.1 Core model - process flow and description

Definition :

A contract is a longer-term outline agreement against which materials or services are ordered according to need over a certain timeframe.

This is a reference document, containing the complete agreement conditions negotiated with a vendor, defined for a period of time.

The only products concerned by contracts are products not integrated into BOMs but managed in stock. In the following paragraphs, we will :

list the pre-requisites,

detail the process.

3.1.1 Products not integrated into BOMs but managed in stock

Perimeter : This process concerns all the products not included into BOMs but managed in stock. It concerns, for example :

Thinner,

Lubricant and Silica,

Acetylene,

Plastic separators, polystyrene protections, metallic pieces for ribbon and ribbon,

Pre-requisites to this flow (Material and Vendor) will be detailed in part 5.1.1.1.

Post-requisites to this flow (Source-list) will be detailed in part 5.1.1.1.

Step 1 : Contract management

Once all the negotiations have been closed with the vendor, the contract is created for the vendor and for one year, listing all the products included into the negotiation. It also contains all the specifications, such as delivery conditions and penalties

According to the agreement with the vendor, contracts in quantities (a total purchased quantity agreed) or in value (a total purchased amount agreed) are used.

Output :

( Printout : the contract is printed out and can be sent to the vendor. It is sent by letter to the vendor.

Responsible : Purchaser

Step 2 : Material Requirement Planning execution (MRP)

A MRP job is planned to run every day for this type of components. It compares the stocks and the forecast purchases to the requirements (reservations, safety stock, reorder point), to trigger if required a purchasing document.

In this case, the product is purchased through a purchase order, MRP creates a new purchase requisition or updates automatically an existing purchase requisition referring to the contract.

These purchase requisitions are then analysed : delivery dates and quantities are possibly adjusted manually.

Responsible : MRP results (automatic calculations) are analysed by the MRP controller / Purchaser.

The process flow continuing for purchasing validation is described in TBMM14 Purchasing process Purchase order.

Remark : using contracts is advantageous compared with info-records, but it is not compulsory.3.2 Country or customer specific - process flow and description

3.2.1 Country specific process Flow France( Specificity : use of contractsProcess concerned : Products not managed in stock General expense for servicesIt concerns purchases for general expense, for services. For example a reparation in the work-shop.

Perimeter : This process concerns all products not managed in stock in SAP, i.e. products that are not managed in quantity and not valorised in our system.

Pre-requisites to this flow will be detailed in part 5.2.1.1.

Step 1 : Contract management

Each year, a list of vendors which are regularly called by Saint-Gobain Sekurit is established. Once the negotiations are closed with these vendors, a contract is created for the vendor, with two items :

first item for service : the quantity is large and the price represents the unitary labor hour price,

second item for facilities : the quantity is large and the price is set at small value by default.

Real values for quantities and prices are updated in the purchase order in step 3.

Quantities and prices will be adjusted once the purchase order is created.

Output :

( Printout : the contract can be printed out but in this case, it is not sent to the vendor.

The contract is internally used to be a reference document for purchase orders.

Responsible : Purchaser

Step 2 : Purchase order creationWhen the vendor is called for a service and once the estimate is performed, a purchase order is created referring to the contract.

for the service, the quantity is set to 1. The price is correct.

for facilities if required, the description of facilities is added in the purchase order. Quantities and price are set to the minimum.

Real values for quantities and prices are updated in step 3.

Output :

( Printout : the purchase order is printed and can be transmitted to the vendor.

Responsible : Service demander (workshop).

Step 3 : Purchase order modification

Once the service has been performed, the purchase order is modified with the real data :

for the service, the quantity is set to the real number of labor hours.

for facilities, quantities and prices are set to the real values : real price of the provided equipment.

Output : None

( Printout : the purchase order is not printed.

Responsible : Service demander (workshop).

4 Business Rules

4.1 Core model Business rules

( Contract creation

There are two possible levels for contracts :

Contracts created at plant level. There is one contract per year, per vendor and per delivery plant, with all the products negotiated with this vendor. They concern products which are only purchased for one plant.

Global contracts which are created at a company level. There is one contract per year and per vendor, with all the products negotiated with this vendor. They concern products which are purchased for several plants within the same company, the contract negotiation is performed at a company or country level. In this case, the delivery plant is added in the purchase order.

There are two types of contracts :

if the agreement with the vendor bears on a total purchased quantity, a contract in quantity will be used,

if the agreement with the vendor bears on a total purchasing amount, a contract in value is used.

( Modifications in contracts

There are several types of modifications :

If an error was made when creating or if the agreement with the vendor is modified, it is possible to change data in a contract. It is also possible to add one or several items if the vendor supplies new products.

If a contract was already used but the purchaser decides not to purchase one or several products to this vendor, it is possible to block one or several items.

If an error was made when creating and an item cannot be used (for example wrong product code), it is possible to delete an item.

( Prices management

Purchasing prices are negotiated for one year. More than a global value or a global quantity purchased, unitary purchasing prices conditions are negotiated with the vendor.

So, contracts are declared for a one year period.

( Communication language

Whichever is the communication language with the vendor, purchasing documents are printed in the language of the purchasing company.

( Validation

Contracts are at least validated by the representative person, for example the finance manager or the plant director.

4.2 Country or customer specific Business Rules

Not relevant

5 Key elements of system implementation

5.1 Core model Key elements of system implementation

5.1.1 Materials not integrated into BOMs but managed in stock

5.1.1.1 Pre-requisites

( MaterialProducts concerned by this process are :

Material type ERSA for spare parts,

Material type HIBE for consumable parts,

Material type VERP for packing materials,

Some remaining STRA for strategic products not included into BOMs.

All data maintained in material master are detailed in TBMM02 - Material Master management.

( VendorConcerned vendors are created in the following account group :

KRED for external vendors,

STRA for strategic vendors.

All data maintained in vendor master are detailed in TBMM03 Vendor Master data.Step 1 : Contract maintenanceThe contract is created in SAP using transaction ME31K, with the following document types :

a contract in quantity (agreement between Saint-Gobain Sekurit and the vendor based on the total ordered quantity),

Document types : MK at a plant level

a contract in value (agreement between Saint-Gobain Sekurit and the vendor based on the total value)

Document types : WK at a plant level, WKZ at a company level.

Outputs :

( Printout : when creating or updating the contract, a message type ZNEU is automatically created which triggers the printout. When printed, the contract can be sent to the vendor.

Responsible : Purchaser

( Source-listThe source-list contains the previous contract number and item number references.

All data maintained in source-lists are detailed in TBMM04 - Purchasing Master Data.5.1.1.2 Steps of the process

Step 2 : Material Requirement Planning execution (MRP)

A MRP job is planned to run every week, which creates or changes automatically purchase requisitions document type NB, referring to the contract.

Responsible : MRP results (automatic calculations) are analysed by the MRP controller / Demand Forecaster.

The process flow continuing for purchasing validation is described in TBMM14 Purchasing process Purchase order.

5.1.2 Contract content

Document typesHere are the contract document types used in the Core model :

Document categoryDocument typeDescriptionRange number typeRange numberStandard / Specific

KMKQuantity contract464600000000 to 4699999999Standard

KWKValue contract464600000000 to 4699999999Standard

KWKZGlobal value contract484800000000 to 4899999999Specific

Content

Here is the list of data used in contracts :HEADER DATAFieldStatusMandatory / OptionalDescriptionChangeable data : Y/N

AgreementDisplayNumber of the outline agreement, affected by the system.

Company codeDisplayCompany, determined through the ordering plant

Purchasing groupMandatoryKey for a buyer or a group of buyers, who is/are responsible for certain purchasing activities. Y

Supplying plantOptionalDescribes the plant from which the ordered material is supplied.

In case of inter-company purchasing flow, determined automatically when the vendor number is filled in.

In case of intra-company flow, filled in.N

VendorMandatorySupplying vendor account numberN

Agreement typeMandatory MK for a quantity contract, at plant level,

WK for a value contract, at plant level,

WKZ for a value contract, at company level.N

Purchasing organizationMandatoryOrganizational unit that negotiates the general conditions of purchase for several plants or a single plant.

There is 1 purchasing organization per country.N

Administration fields

Agreement dateMandatoryCreation date of the agreementN

Item number intervalMandatoryDetermines the size of the steps between the default item numbers.Y

Item interval for sub-itemsNot used in SGSOptionalCurrently not used

Validity start

Validity endStart of validity period. Default value : creation date

End of validity periodY

LanguageMandatoryDefault value : brought from the vendor master. Changeable when creating the contract.

Not used for printout : printouts are currently performed in the purchasing company language.N

Indicator : goods receipt messageNot used in SGSOptionalIndicator specifying that the system is to issue an appropriate message to the buyer following each goods receipt in respect of this purchase order.

Terms of delivery and payment

Payment termsOptionalKey for defining payment terms composed of cash discount percentages and payment periods.

Only Required for External Vendors

Brought from the vendor master.Y

Payment in 1OptionalNumber of days, determined through the previous payment terms key.Y

Percentage for first cash discountOptionalCash discount percentage rate applied to the shortest payment terms, determined through the previous payment terms key.Y

Payment in 2OptionalNumber of days, determined through the previous payment terms key.Y

Percentage for second cash discountOptionalCash discount percentage rate applied to the shortest payment terms, determined through the previous payment terms key.Y

Payment in 3OptionalNumber of days, determined through the previous payment terms key.Y

Target valueNot used in SGSOptionalTotal value of all materials to be released against the agreement.

CurrencyMandatoryDefault value = Order currencyY

Exchange rateMandatoryFactor for the conversion of a foreign currency into local currency. Calculated automatically if order currency is different from the local currency.Y

Indicator: fixing of exchange rateNot used in SGSOptionalDetermines that the exchange rate calculated or entered in the purchasing document is fixed.

Incoterm

Part 1

Part 2OptionalIncoterms specify certain internationally recognised procedures that the shipper and the receiving party must follow for the shipping transaction to be successfully completed.

Additional information for the primary Incoterm : provides details of the port from which the delivery leaves.Y

Reference data

Quotation dateNot used in SGSOptionalDate on which the vendor submitted the quotation

Quotation Not used in SGSOptionalNumber of vendor's quotation

Your referenceOptionalCustomer's or vendor's internal referenceY

Sales personOptionalResponsible salesperson at vendor's office

Brought from vendor masterY

Our referenceNot used in SGSOptionalYour company's internal reference number or code.

Usable if our requirements are transmitted to vendors via EDI (Electronic Data Interchange) messages.

Supplying vendorOptionalIf the vendor from whom the goods are ordered is not the actual supplier, you can enter the account number of the supplying vendor here. Y

Invoicing partyOptionalThis number denotes the vendor invoicing the ordered material or services rendered

Determined through partner function PI Invoice presented byY

Taxes

Country of sales tax ID numberOptionalSpecifies the key for the country of the VAT registration number

Determined through the company or the purchasing organization.Y

Text overview

Release order textOptionalFree text - PrintedY

Header textOptionalFree text - PrintedY

Header noteOptionalFree text Not printedY

Pricing typesOptionalFree text - PrintedY

DeadlinesOptionalFree text - PrintedY

Terms of deliveryOptionalFree text - PrintedY

Shipping instructionsOptionalFree text - PrintedY

Terms of paymentOptionalFree text - PrintedY

WarrantiesOptionalFree text - PrintedY

Penalty for breach of contractOptionalFree text - PrintedY

GuaranteesOptionalFree text - PrintedY

Contract riders (clauses)OptionalFree text - PrintedY

AssetOptionalFree text - PrintedY

Other contractual stipulationsOptionalFree text - PrintedY

DeliveryOptionalFree text - PrintedY

Vendor memo (general)OptionalFree text - Not printedY

Vendor memo (Purch. Org.)OptionalFree text - Not printedY

Vendor address

Title

Name

Search terms

Street / House number

Postal code / City

CountryMandatoryBrought from vendor master data.

Printing rule : this address is printed, except :

if a different supplying vendor is declared in Header / Details view,

if a different Ordering Address vendor is declared in Partner functions view (partner function OA).Y

Language

Telephone

FaxMandatoryBrought from vendor master data.Y

Conditions

Net value currencyDisplayOrder currency

Net valueDisplayCalculated : sum of the items conditions

Condition types :

PB00 or PBXX, depending on the items condition types,

SKTO for discounts. In Germany, discounts are taken into account when receiving the goods, in the other countries, they are taken into account when posting the invoice. (Customized by FI for payment conditions).

Statistics

Created onDisplayCreation date

Created byDisplayUser who created the document

Last itemDisplayNumber of the current last item of the agreement

PartnersThey are brought from vendor master

Ordering addressOptionalNumber of vendor account responsible for the orderY

VendorMandatoryNumber of vendor accountY

Delivering plantOptionalNumber of vendor account responsible for the delivery

Used in case of intra-company flowY

Invoice presented byOptionalNumber of vendor account responsible for the invoiceY

Messages

Message typeOptionalTwo message types are managed :

ZNEU, for a printout. Triggered automatically.

XNEU, for an idoc creation. Triggered only for logistics and if the receiving plant works with CIM+.Y

Import

Mode of transport (when goods cross border)OptionalIdentifies the mode of transport (for example: road, rail, or sea) by which the goods cross a border during export or import. Set to 3. Brought from vendor master.Y

ITEM DATAFieldStatusMandatory / OptionalDescriptionChangeable data : Y / N

Agreement itemMandatoryItem in the agreement

Given by SAPN

Item categoryOptionalKey defining how the procurement of a material or service item is controlled. Categories used :

Blank for standard

K for consignment

L for sub-contracting

U for stock transfer (document type LU)N

Account assignment categoryOptionalKey specifying whether accounting for an item is to be effected via an auxiliary account. Are used :

U for unknown (Rule 1)Y

Material numberMandatoryPurchased material number.N

Material descriptionMandatoryMaterial short text, brought from material master in the language of the vendorY

Material groupDisplayKey that you use to group together several materials or services with the same attributes.

Brought from material master.

PlantOptionalPlant which should receive the ordered goodsN

Storage locationOptionalStorage location which should receive the ordered goodsY

Quantity and price

Target quantityOptionalTotal quantity, agreed with the vendor.

This quantity is not blocking if passed in SAP.Y

Order unitMandatoryUnit of measure in which the material is ordered. It is copied from material master data.N

Net order priceMandatoryPurchasing price :

Brought from the purchase info-record if it exists,

Or filled in manually.Y

Equals

Denominator for conversion

Order UoM

Numerator for conversionMandatoryConversion of order unit into base unit.

To convert a quantity, whose unit of measure is not the same as the base unit of measure, into the base unit of measure, the system requires a quotient : Quantity (in alternative unit of measure) = quotient x quantity (in base unit)Y

Indicator: update info recordOptionalIndicator that determines

whether the purchasing info record for this vendor and material is to refer to this PO item, and

whether the item is to be valid for the entire purchasing organization or just for the plant. Y

Other data

Reminder 1

Reminder 2

Reminder 3OptionalNumber of days representing the time interval at which reminders or urging letters / messages are to be issued to the vendor. The basis for the reminder intervals is the delivery date or deadline for submission of quotations. Reminding levels should be set out in ascending order of time.

There are copied from the material master, or from the purchase info-record if it exists.Y

Confirmation control keyNot used in SGSDisplayKey that determines which confirmation categories are expected for a PO item (e.g. order acknowledgment, shipping notification).

Acknowledgment numberNot used in SGSOptionalNumber of the vendor's order acknowledgment.

Indicator : acknowledgment requiredNot used in SGSDetermines whether the purchasing document (purchase order, outline agreement, etc.) is to be acknowledged by the vendor.

Requirement tracking numberOptionalNumber that facilitates the monitoring of the procurement of required materials or services.Y

Vendor material numberOptionalMaterial number used by the vendor.

Brought from purchase info-record.Y

Estimated price indicatorNot used in SGSIf you do not know the exact net price of a material, you can indicate that the price is an estimated price. In consequence, a greater price variance is tolerated during invoice verification than would be the case in the event of an exact net price.

Print price indicatorOptionalDetermines whether or not the price is to be included in the purchase order printout. Currently causes troubles with Appic printouts if not flagged.

Flagged by defaultY

GR / IR control

Under-delivery toleranceOptionalPercentage up to which an under-delivery of this item will be accepted.

It is copied from material master.Y

Over-delivery toleranceOptionalPercentage up to which an over-delivery of this item will be accepted.

It is copied from material master.Y

Unlimited over-delivery delivery allowed flagOptionalIndicator that specifies whether unlimited over-delivery can be accepted.

It is copied from material master.Y

Tax codeOptionalThe tax code represents a tax category which must be taken into consideration when making a tax return to the tax authorities. Tax codes are unique per country. The tax rate calculation rules and further features are stored in a table for each tax code.

Filled in.Y

Shipping instructionsNot used in SGSKey for the relevant shipping instructions. Key denoting the packaging and shipping instructions issued to the vendor.

Quality inspection indicatorAutomatically positionedIndicator that specifies whether the material is subject to quality inspection, and whether a goods receipt is posted to stock in quality inspection.

Automatically positioned from material master.

Delivery completed indicatorAutomatically positionedIndicator showing that the purchase order item is to be regarded as closed.

Automatically positioned if positioned during the goods receipt.

Final invoice indicatorAutomatically positionedIndicates that the last invoice from a vendor has been received for an item and/or that no further invoice is expected.

Automatically positioned if positioned during the invoice verification.

Delivery completed indicatorAutomatically positionedIf this indicator is set, no further deliveries can be generated for the item.

Automatically positioned from once the delivery created, if it is decided to create only one delivery.

GRDisplayGoods receipt indicator

GR non-valNot used in SGSDisplayIndicator specifying that the goods receipt for this item is not to be valorized.

IROptionalSpecifies whether the purchase order item involves an invoice receipt.

Default flaggedN

GR base-IVOptionalIndicator specifying that provision has been made for GR-based invoice verification for a purchase order item or invoice item. FlaggedN

ERSNot used in SGSOptionalEvaluated receipt settlement (ERS)

Brought from vendor master.

Account assignmentsOnly available if purchased is performed for a non stocked material (cost center or order)

G / L account numberOptionalG/L account in a chart of accountsY

Company codeDisplayCompany code responsible for these account assignments

Business areaOptionalBusiness area responsible for analysis, determined automaticallyY

Cost centerOptionalIf Account assignment category KY

OrderOptionalIf Account assignment category FY

WBS elementNot used in SGSOptionalWork Breakdown Structure Element

Unloading pointOptionalPoint at which the material is to be unloaded (for example dock 1)Y

Goods recipientOptionalRecipient for whom the material or the service is destinedY

More indicatorOptionalWhen you select this field, all account assignments are shown in a dialog box.Y

Conditions

Condition typeDisplayThe following condition types are used, independently of the product family :

price = PB00 if brought from a purchase info-record or PBXX if set manually

FRB1 for Freight (in value)

RA01 for Discount % on gross price

RB00 for Discount (value)

GRWR for Statistical value = transport value in % between the border and the delivery point, used for Intrastat declaration.

The four last condition types are either set in the info-record, or set manually in the purchasing document.

Remark : if the purchasing price is changed in the info-record, the price in the contract is not automatically updated. Price should be also manually changed in the contract item.Y

RateMandatory= Net priceY

Net value currencyMandatoryOrder currencyY

Net valueMandatoryCalculated : sum of the items conditionsY

Text overview

Item textOptionalFree text Not printedY

Info record PO textOptionalFree text Printed

Brought from Purchase info-recordY

Material PO textOptionalFree text Printed (replaces material short text)

Brought from material masterY

Delivery textOptionalFree text PrintedY

Info record noteOptionalFree text Not printedY

Statistics / General

Info recordDisplayInfo-record number if it exists for the vendor / material / purchasing organization / plant.N

RequisitionDisplayPurchase requisition number and item number if the agreement was created referring to this requisition.N

AgreementDisplayAgreement number and item number if the agreement was created referring to this outline agreement.N

RFQDisplayRequest for quotation number and item number if the agreement was created referring to this RFQ.N

Last changed onDisplayLast item modification date

Statistics / PO history

TableDisplayList of purchase orders declared in the system referring to the contract.

Statistics / Changes

TableDisplayList of modifications made on this contract :

User who performed the modification

Date and hour of the modification

Transaction used

Object modified, with the old and the new value.

Delivery Address

Delivery addressMandatoryAll coordinates of the receiving plant. Brought from plant customizingY

TaxesNot used in SGSTaxes data

Additional dataNot used in SGSData brought from material master or purchase info-record.

ImportThe following data are optional (purchasing document can be saved) but if missing, they will block the intrastat declaration necessary when the vendor is european.

Commodity Code / Import Code No.OptionalOfficial (8 digit) key corresponding to the EC harmonised system for the description and coding of merchandise.

The commodity code is used for statistical purposes and must be declared to the authorities for various foreign trade transactions, both import and export transactions.

Brought from material master.Y

Manufacturer numberOptional= Vendor numberY

Country of originOptionalCountry code of the main (default) plant producing the material. This information is required for the declarations regarding goods receipts/exports and goods dispatches / imports which are made to the authorities.

Brought from info-record if it exists or from material master.Y

Region of originOptionalDescribes more precisely the origin of goods. Used in Germany (land), Belgium and France (department).

Brought from info-record if it exists or from material master.Y

Export / Import procedureOptionalFor business transactions within the European Community (EC), the export/import procedure code is part of the information that you submit in monthly reports to Intrastat and is of statistical interest only. Filled in.

Values to be used are defined per country.Y

Business transaction typeOptionalClassifies the type of business transaction which is performed. Determined through customizing.Y

Rule 1 : When the Account assignment category is unknown in the contract (for non stocked materials), its value is set to U. Then, when creating the purchase order, it is compulsory to :

replace the Account assignment category value to K (on cost center) or F (on internal order),

and complete the account assignment data : G/L account, cost center or internal order.5.1.3 Contract printout

Printout principle : when creating or changing a purchasing document, a message type ZNEU is created and saved. This message triggers an extraction program to run, to set the purchase order data into a file. This file is sent to APPIC which sets the layout.

Data printed out are, to summarise :

the vendor co-ordinates (name, address, payment conditions)

all the texts included into the contract (manual or SAP standard texts),

the delivery and invoicing addresses,

the detail of each item (product code and description, quantity, unitary price and item price)

a sub-total per page,

a total.

For the automatic creation of message type ZNEU, master data are maintained by the CDC, using the menu path :

Logistics ( Materials management ( Purchasing

Master data ( Messages ( Outline agreement

It is maintained with the following access sequence :

Condition : Document type + Purchasing group

Condition : Document type + Purchasing organisation

Condition : Document type

For details on the contract output, please refer to TBMM22 Document Outputs and TBMM23 Document Forms.

There are also two tables maintained by the CDC : ZCORR and ZCOND tables.

ZCOND table enables to define, per message type, which ones are concerned by reminders,

ZCORR table enables to define, per document category / document type / company code / purchasing group the rules for printing or faxing. By default, a purchase order is printed out.

5.2 Country or customer specific Key elements of system implementation

5.2.1 Country specific key elements of system implementation - France( Specificity : material typesProcess concerned : Materials not integrated into BOMs but managed in stock

A special material type is used in France for spare parts (material type ROH), because of a problem encountered during the roll-out in 1998.

( Specificity : use of contractsProcess concerned : Products not managed in stock General expense for services5.2.1.1 Pre-requisites

( MaterialProducts concerned by this process are in material type NLAG for non-stock material. They are coded as generic products, with a code starting with GExxx.

All data maintained in material master are detailed in TBMM02 - Material Master management.

( VendorConcerned vendors are created in the following account group :

KRED for external vendors.

All data maintained in vendor master are detailed in TBMM03 Vendor Master data.

5.2.1.2 Steps of the process

Step 1 : Contract maintenance

Each year, a contract is created in SAP using transaction ME31K, with document type MK, with two items :

first item for service : the quantity is large and the price represents the unitary labor hour price,

second item for facilities : the quantity is large and the price is set at the minimum.

Output :

( Printout : the contract can be printed out but in this case, it is not sent to the vendor.

The contract is internally used to be a reference document for purchase orders.

Responsible : Purchaser

Step 2 : Purchase order creationWhen the vendor is called for a service, a purchase order is created referring to the contract using transaction ME21 in SAP. The purchase order is created with document type P for Provision of services.

for the service, the quantity is set to 1. The price is correct.

for facilities if required, the description of facilities is added in the purchase order. Quantities and price are set to the minimum.

Output :

( Printout : the purchase order is printed and can be transmitted to the vendor.

Responsible : Service demander (workshop).

Step 3 : Purchase order modification

Using transaction ME22, once the service has been performed, the purchase order is modified with the real data :

for the service, the quantity is set to the real number of labor hours.

for facilities, quantities and prices are set to the real values : real price of the provided equipment.

Output : None

( Printout : the purchase order is not printed.

Responsible : Service demander (workshop).

5.2.2 Country specific key elements of system implementation - All( Specificity : old document types

The following document type was created but is no longer used :

Document categoryDocument typeDescriptionRange number typeRange numberStandard / Specific

KMKZGlobal quantity contract484800000000 to 4899999999Specific

5.3 Summary

ActionTransac. / dataComments

Pre-requisitesMM03

XK03

ME03Display material master

Display vendor

Display Source-list

ContractME31KContract creation

Purchase orderME21Purchase order creation

IMMM023Purchasing document types and number ranges.

6 Organizational roles and impacts

Use of contracts is still heterogeneous between countries implemented with Sekurit Avenir V2. Currently, only Germany uses contracts for stocked materials. This procedure could also be applied by other countries.

7 Application specific development requirements

( For printout: page setup is not performed in SAP but in an external application, Appic.

So, when a ZNEU message is created in the contract, it triggers a data extraction which is sent to Appic. The extraction program is

ZMFMM010_CONTRAT for the contract.

Specifications of the extraction program are under S:\Core Solution\Development\aig_aid_aigd\Mm\ MM_010_AIGD_Purchase order_YMM_PORD.

A program was developed to perform mass updates of purchasing prices in contracts : program ZEPR0003.

Specifications for this program are under ABAP team responsibility.

8 Key volume & performance indicators

9 Added value for the Business and economical considerations

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