REQUISITION TO PURCHASE TRAINING JUNE 2024 TRAINING AGENDA 2 • Safety Share– 2 min • Purchase Requisition Process – 15 min • Creation • Account Assignment & Attachments • Approval • Canceling a Requisition • PR-PO Tips – 5 min • NIR – New Item Request – 10 min • CIR – Change Item Request – 5 min • Vendor Add and Change Requests - 15 min • Key Contacts – 2 min • Q&A – 5 min • Appendix S AF E TY S HARE – TO R N AD OE S TORNADO SAFETY REMINDERS Tornadoes are a serious threat for many areas across the country. In an average year, about 1,000 tornados are reported in the United States, according to NOAA. It is important to know about tornadoes and what to do both at home and work if there is one. 1 Understand the difference between a tornado watch and tornado warning 2 Pick a safe room (usually in a low floor, preferably a basement if you have one) in your home where it is safe to go during a tornado 3 At work, know how your employer will inform you that tornado conditions could be in the area 4 At work, know where the tornado shelter is, whether onside or offsite 3 Source Purchase Requisition Over view A Requestor can be anyone in O-I who has a purchasing requirement. Requistioner is person who is creating the PR. Requestors need to contact the Purchase Requisitioner and provide the following details: • Materials and/or services needed and description • Ex. Material # 51007942, Material description: HEC, FREON, CYL 43.13 KG • Quantity required in UOM • Ex. EA, PAA, Pcs • Delivery date • Vendor # • Cost center & GL account # As a Purchase Requisitioner, you are responsible for creating and updating the purchase requisition in SAP. Requisitions can be created either Manually or Automatically: • Manually – A purchase requisitioner goes into SAP and inputs the details of what is required • Automatically – The purchase requisition is initiated via MRP run based on material master parameters and requirements set-up in SAP. 4 Purchase Requisition Creation T-code- (ME51n). Header & Item Overview: • Purchase requisitions are characterized by Document Type. Descriptions are included to help requisitioners choose the appropriate document type based on their specific situation 5 Series PR 4 Series PR 3 Series PR 2 Series PR Purchasing Groups & Material group: • Material group is the grouping of materials and services having some common characteristics and belonging to the same purchasing family. • Material groups are defined in the family table in the embedded document: 5 Mandatory Fields in Item Overview Item Number Short text Account Assignment Category Quantity Ordering UOM Plant Price GLCC Recipiant Requsted by Purchasing group Purchasing Org Material group Account Assignment & Attachments Account Assignment Tab : This tab derives how the PO is to be charged, that is which accounts (GL account, cost center) need to be charged when the incoming invoice or goods receipt are posted. Attachments: Quotation or any other awarding email can be added for further reference by clicking Service for object >create >create attachments. 6 PR Approval • • • • T-Code : ME53N To check the status of the PR approval workflow, navigate to PR header > Release strategy tab. You can also identify the approver name through workflow>workflow overview. Once the PR is completely released, it will automatically go to the appropriate buyer’s queue for PO creation. PR’s less than 10K will go for Auto PO release. 7 Canceling a Requisition • T-Code ME52N • Select the line to be canceled & then click on the Bin • 8 Include cancel reason in header note for the future reference. and press delete. PR to PO Tips • Requestor should select correct PR type based on their requirement as NA buyers are currently receiving 7 series (ZCA) PR and 5 series (ZFO) which are for Non store items. • 7 Series PR (ZCA) should not be used for any PR creation as this PR type does not have PR release strategy. • 5 Series PR (ZFO) should be used only for Service PR’s. If GRN is needed for service PO's then item category tab should be empty. If GRN is not needed for Service PO's then Item category tab "B" should be mentioned • To prevent automatic purchase order creation, it is important not to include any vendor code when adding add-ons to purchase requisitions (PRs). • Example Scenario : PR 4000630539 was raised as an add on PR to the existing PO. But requestor raised this PR 4000630539 with desired vendor code and also the total PR value is also less than 10K USD. New auto PO got created for this PR and PO triggered to vendor in daily auto run. 9 NEW ITEM REQUEST – NIR NIR (New Item Request) is used to create a material code & extend a material code. T-Code IW51 for New Item request, Extend material, Massive creation. Notification Type: ZI NEW MATERIAL: Mandatory fields to be filled & uploaded in the NIR request • Manufacturer name • Part Number • Base Unit, PO Unit of measure • Material Group Item Cost Unit • MRP Type, Monthly use • ROP and Max Unit • Reorder Point • Material Description & Quotation EXTEND MATERIAL: This option is selected to extend a material from one plant to another plant location. Enter all the mandatory fields as mentioned above. Attach available quotation in the NIR by selecting Service for Object >create>create attachments. Quotation is Mandatory for NIR. MASSIVE NIR PROCESS: When creating more than one material, complete the Excel template file for massive Material Data Creation with all mandatory fields and attach quotation. Excel template embedded here for reference: 10 CHANGE ITEM REQUEST – CIR CIR (Change Item Request) is used to do changes in a material code T-Code IW51 Notification Type: ZC Mandatory fields to be filled & uploaded in the CIR request • Region • Country • SAP Vendor Number & SAP Material Number • UOM • Price • Currency type • Monthly Use • Reorder Point & Max Stock • Lead time IMPORTANT: As it is a request for ROP and max stock, those fields are very important and always the unit of measure for them must be the same Base Unit that the materials has assigned. COMMENTS: Place in comments everything we should know to make the change as if the rounding value should be changed as well. Alternate way : Service now request can be raised for Change in material by sending mail to O-I.Procurement.AM@gbs.O-I.com 11 Vendor Creation Vendor creation refers to the process of setting up a new vendor in SAP. • This process involves gathering relevant vendor information, such as legal entity name, address, contact details, tax identification numbers, bank account information, and any specific contractual terms or agreements. The following information is required to raise a ticket in service now to create a vendor: 1. Vendor External form 2. W9 for US vendor / W8 for Foreign vendor 3. Sourcing statement in case of Foreign vendor 4. Bank Letter / Void Cheque 5. Industry sector 6. Payment Terms 7. Company code 8. Vendor add Justification 9. Forecast Yearly spend 10. Carrier profile (In case of Transport vendor) 11. Within Canada registration HST/GST No. is mandatory. Link to raise ticket in service now: Global Vendor Request - O-I Service Portal (service-now.com) Requestor can also send an email to ProcOps help desk - o-i.procurement.am@gbs.o-i.com 12 Vendor Changes Vendor Update • Any change of an existing vendor such as email address, bank account, payment terms or contact number requires a vendor update • Specific Requirements for email, bank or payment term changes: • Email update or Bank update - Request should be received from the existing ID’s of SAP. • Payment term – Procurement approval or latest version of signed contract is required. Vendor Reactivation • This is the process of reactivating the inactive vendors which are already existing in our database and follow the new vendor creation procedure. Vendor Extension • This is the process of extending an existing active vendor from one purchasing organization to another purchasing organization. • Only one extension per vendor code can be included in one single Service Now ticket • If within country extension, no supporting document is required, share the details to procops team to process the request. For other countries Tax document like mandatory Requestor Country Extend country Documents Required Vendor Inactivation • This is the process of inactivating a vendor code from SAP. • All open POs, PRs, and Invoices must be closed before a vendor can be inactivated. 13 US CA CA US Brazil US Other Foreign vendor US US US W8 W8 & Sourcing statement CNPJ/ W8 & Sourcing statement W8 & Sourcing statement No document required Key Contacts Proc Ops (North America): All buyers have been restructured by commodity per the listing below: Accounts Payable (North America): Helpdesk ID for America : O-I.Procurement.AM@gbs.O-I.com is always The 1st point of contact. 1st Level : Hemanth Kumar : Hemanth.Kumar.G@o-i.com Purchasing Description Buyer Buyer Name Group 1 Raw Materials A Navaneeth 2 Energy A Navaneeth 3 Packaging B Loki 4 Transport/WH A Navaneeth 5 Moulds C Ismail 6 PRO C/D Ismail 7 Services F Venkatesh B 8 MRO D/E Kishore 9 Resort-Repack B Loki 10 CORP F VENKATESH B 11 Capital C Ismail Mail ID n.c.krishnan@accenture.com n.c.krishnan@accenture.com l.pandiya.kumar@accenture.com n.c.krishnan@accenture.com s.ismail@accenture.com s.ismail@accenture.com venkatesh.ganesan@o-i.com kishore.narasimhan@o-i.com l.pandiya.kumar@accenture.com venkatesh.ganesan@o-i.com s.ismail@accenture.com If we don’t receive any response, then we can reach out to 1st level. ESCALATION LEVEL: 1st Level : Divya Vengatesh – Divya.Vengatesh@o-i.com 2nd Level : Chetan Maddala – Chetan.Maddala@o-i.com 3rd Level : Pankaj Adiyodi – Pankaj.Adiyodi@o-i.com 14 2nd Level : Manjula : Manjula.Devi@o-i.com GBS Escalation Matrix link : Escalation Matrix (sharepoint.com) Q&A 15 APPENDIX 16 Reference Documents • MRO/PRO Workflow User’s Guide 17
