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SmartPlant Materials How to Manage Purchase Orders

Version 2007.1 (6.2.3) January 2007 / April 2007 DMAR1-PE-200080A-UPDATED

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Table of Contents

Table of Contents Introduction ..................................................................................................................4

Detailed Steps of Workflow PO Management...........................................................5 Creating a Purchase Order ......................................................................................5 Maintain Purchase Orders .......................................................................................8

Maintaining the PO Header Information ...................................................................... 8 Maintaining the Purchase Order Line Items ............................................................... 12 Mandatory Steps to Approve the Purchase Order ...................................................... 20 Approval of a Purchase Order .................................................................................... 22 Maintenance of a PO After Approval ......................................................................... 24

Management of Quantity Changes in Purchase Orders ........................................27 Requisition Supplements ............................................................................................ 27 Maintaining a Supplement to a Purchase Order ......................................................... 28 Maintaining a Change Order ...................................................................................... 29

Unapproving Purchase Orders ..............................................................................31 Deleting a Purchase Order ....................................................................................32

SmartPlant Materials How to Manage Purchase Orders 3

0BIntroduction

Introduction Purchase Order (PO) management means you ensure that inside a project the engineered material is ordered in time, in specification, and in budget. To fulfil these three main issues, most of the POs are created on a bid evaluation, which is described in this document.

After the first step, a PO is created. It must be issued to the supplier, and then later on, in EPC projects, the quantities, the schedules, and the qualities are normally modified. Order change management is a very critical part of PO management.

SmartPlant® Materials offers several methods to create an order:

1. Create a PO from bid evaluation. 2. Create a PO without requisition. 3. Create a PO from requisition. Creating a PO from bid evaluation is described in this document at this stage only.

4 SmartPlant Materials How to Manage Purchase Orders

1BDetailed Steps of Workflow PO Management

Detailed Steps of Workflow PO Management Creating a Purchase Order

SmartPlant Materials offers several methods to create a PO:

• Create a PO from bid evaluation. • Create a PO without requisition. • Create a PO from requisition. Creating an order from bid evaluation is described in this document at this stage only. A bid evaluation is the final result of the inquiry stage and shows the selected suppliers for the line items of an inquiry. The first step is to create a PO record corresponding to the Bid Evaluation. After this, the details are completed.

• Select the P.50.01 screen and query for the desired Inquiry Number and the supplier. There will be as many inquiry numbers as there are different suppliers.

• Select a PO record and then fill in the order type and all other

fields of interest. The Routing Method field is mandatory. However, all other fields may be inserted at a later stage.

Click the Create Order button to create the PO.



When the Create Order button is clicked, the following process occurs:

• The header and a description (if entered) for the order are saved. The currency of the order will be the one of the quote summary. The buyer of the order is the user currently logged in.

• The supplier's address for the address type used as the default for orders is assigned to the order. The address type that is the default can be seen on the A.10.25 Address Types screen (the Order Default check box). If no address can be found for this default address type, the address of the address type saved on P.30.13 Assign Bidder is assigned to the new order.

• Create all line items based on the selected quote summary. Only those details of a requisition will be placed on the new order that cannot be found on any other purchase order.

• ZR_PROCSEQ is a parameter that allows SmartPlant Materials to maintain the same line item number in the PO as in the originating requisition. • If the ZR_PROCSEQ project default is set to 'N', the system

will try to take over the position and sub position from the engineering requisition if possible. If the position and sub position cannot be taken over, the line item will be placed at the end of the order (getting the next highest position available). This processing becomes necessary if a requisition line has been split on a quote or if more than one requisition is assigned to a quote and the same position / sub position can be found on more than one requisition.

• If the ZR_PROCSEQ project default is set to 'Y', the value of the 'Proc Seq' field will be taken for the position of a line item. The 'Proc Seq' field can be maintained for every requisition line item on the R.30.07 Line Items screen (Multi Pos) and the R.30.08 Line Items screen (Single Pos), respectively. If this field does not contain a valid value (that is, the value is too large or NULL), the position will be set to the next highest position available. Sub position will always get value 1 (independent of the value of 'Proc Seq').

• Item shipments are created for all line items in the order. • All vendor data requirements (VDRs), other costs, progress

payment events, and attributes attached to the quote summary will be copied to the new order. Any attribute assigned to an order line item will also be attached to the corresponding item shipment. On the line item level, other costs will only be taken over if the cost value is not zero.

• All documents that are attached to the inquiry of the selected quote summary are taken over to the order. Also, the documents that were attached to the requisition are taken over, because they were already taken over into the inquiry.

• Total cost is calculated for each currency.



• If the order is the first one to be created for the inquiry is the basis for the selected quote summary, the 'PO Create Date' field will be set to the current date.

• Links to the milestone planning items will be created if possible. If you have decided for an automatic milestone tracking (the ZP_MS_TRCK project default is set to 'Y') and have defined a corresponding milestone label (on the P.10.63 screen, in the master table = 'M_INQUIRIES', master table date column = 'PO_CREATE_DATE'), the actual dates for the milestone planning items will be set.



Maintain Purchase Orders After the purchase order has been successfully created, the remaining details are finalized on P.50.01 screen.

Maintaining the PO Header Information On the PO header level, all data, attributes, and documents are maintained that are valid for the overall PO (that is, they apply to all line items that are on the PO).

• Deletion of an order is only possible if it has not been approved.

• ZP_SUM_CO is a parameter that selects the way of work with change orders. • If the ZP_SUM_CO project default has been set to 'N', you

can maintain purchase orders and manual purchase orders on P.50.11 and all change orders on P.50.31.

• If ZP_SUM_CO is set to 'Y' (which is not the case in this document), you can only maintain manual POs on P.50.11 and change orders of manual POs on P.50.31. For POs and their change orders, you have to work with P.50.16 Maintain Orders module. This screen will then allow you access to P.50.11 for purchase orders via Fastcall.

• The orders you can see on this screen depends on the privileges assigned: • With the 'ASSIGN BUYER' privilege, all orders of the

selected type are displayed. • With the 'BUYER' privilege, only the orders you are the

buyer of are shown. • If you have neither the 'ASSIGN BUYER' privilege nor the

'BUYER' privilege, no orders at all are available.



The next steps to performed are:

• Fill in all appropriate fields to describe the PO completely.

• Check the attached documents, VDR, and text and terms via the

Fastcall.

• Assign additional attributes to the purchase order if needed. • Assign other costs. In this case, we assign the cost for x-ray and

for packing on the header level. It is also possible to assign other additional costs on the line item level. Please note that other costs are also copied if they were assigned to the inquiry. Based on this example, the maintain phase for a PO may also be used for additional negotiations with the supplier.

• Assign PO close out activities to document that activities must

be performed and fulfilled before an order can be closed. These activities may include internal and external activities performed by several parties.



• Assign progress payment events. The payment events may be used to trigger payment at certain milestones that are defined here. Especially if a company is working with a financial system based on the payment events, a custom interface may be set up. The integration of SmartPlant Materials with a finance/cost control system is essential for project execution. The functionality for progress payment events offers the option to transfer forecast payment events for each PO into the FI/CO system. The following function/fields are available with user-friendly screens:

Process payment events can be collected in sets.

Fields to specify:

‘PP’: Percent of Payment (at a specific event) PW: Payment Week (Number of weeks between events) PredPayDate: These dates will be calculated after the PO is approved and can be updated if the contractual frame with the supplier changes or some predictions are modified.

With this function, the user has the option to transfer updated forecast payment amounts to FI/CO system.

Note: The integration to FI/CO is always customer-specific.

• On the D.50.13 Attached Pay Events screen (can be called from P.50.11), the user fills in the first Predicted Pay Date manually.



If you want to now expedite changes, set a ‘Predicted Pay Date’ on the D.50.13 screen (can be called from P.70.11 Expediter Workload via Fastcall) and click the ‘Calculate’ button. All following dates will be automatically recalculated.

These updates can then be transferred to an FI/CO System.



• All attachments may be viewed on the P.50.51 screen. All documents have a revision indicator. Via the revision indicator, SmartPlant Materials recognizes whether the latest revision is attached to the document. In this case, it is not via the revise button that the latest revision may be attached to the PO.

Maintaining the Purchase Order Line Items At the purchase order line item level, all information is maintained that is specific for each line item (for example, price, delivery date, and line item attributes like manufacturer).

Starting from the P.50.11 screen, double-click the PO number or reach the P.50.14 screen via Fastcall. On this screen, all purchase order line items are listed. All steps described for the PO header level for attached documents, VDRs, attributes, and other costs are also valid for the line items. The additional steps for the line items are described here.

Since the screen has a very large spread table, the complete set of available fields is shown now in the following table. The table shows fields on purchase order line item level.



Pos 3 6 7 9

Sub 1 1 1 1

Accepted N N N N

Item Type STD WO TAG STD WO TAG STD WO TAG STD WO TAG

Tag Number UNTAGGED UNTAGGED UNTAGGED UNTAGGED

Ident Code I3358035 I3357683 I3357713 I3357364

Commodity Code PWE49B0C4E00 PWE99B0C4E00 PWE99B0C4E00 PWE99B0C4E00

Quantity 10 100 30 10

Qty Unit EA EA EA EA

Each Each Each Each

Last Quantity 0 0 0 0

Changed Quantity 0 0 0 0

Unit Price 1 12 4 5

Extended Price 10 1200 120 50

Other Cost 0 0 0 0

5082 5082 5082 5082

Currency USD USD USD USD

Price base Q Q Q Q

Unit Weight 0 0 0 0

Total Weight 0 0 0 0

Weight Unit kg kg kg kg

Volume 0 0 0 0

Volume Unit m3 m3 m3 m3

Cubic meters Cubic meters Cubic meters Cubic meters

Dimensions

Incoterm

Delivery Place

Rev Prom

First shipment 0 0 0 0

Last shipment 0 0 0 0

Ctry of Or

Manufacturer



Catalog Number

% Dom. 0 0 0 0

Tec.Eval. Required N N N N

Tec. Accepted N N N N

Export license req. N N N N

Exp Lic Rec date

Exp Lic Number

Each item of material on an order is described here. When creating line items for POs, one item shipment will be created for each order line item as well. The PO line items cannot be manipulated later when the PO is approved. The item shipments may be deleted, replaced, or multiplied later if a supplier cannot deliver all required items or must split the quantity in multiple shipments.

Pos -- Line item number. If you insert an additional line item, the next available position will be automatically displayed in this field taking into account the setting of the ZR_RLIINC project default. You can change this value if you want.

Sub -- Sub line item number.

Accepted -- This indicator is set if the user has checked the quantity of the line item and wants it to be approved as it is. If you do not use the P.50.16 screen, the setting of this check box is not relevant. You will be allowed to approve an order independently of this indicator.

Item Type -- Name (code) for the item type.

Tag Number -- Tag number for a specific ident.

Ident Code -- Ident code for the ident placed on this line item.

Commodity Code -- The commodity code for the material on this line item.

Quantity -- Total quantity for the line item. An order line item can be associated with one or more requisition line items. If such a reference exists, this field shows the sum of the quantities for all requisition line items associated with this order line item. If more than one requisition line is assigned the background color of this field, it is set to magenta.

In this case, you cannot update the quantity here. Since the system has to track the quantities finally purchased for requisition line items, you have to alter the quantities on the requisition line item level and not on the order line item level. Otherwise, the system is not able to tell whether an engineering requisition has already been purchased completely or not. To



apply changes on the requisition line item level, you can either double-click this field or click the 'Update Quantity' button.

If an order of the 'Purchase Order' or 'Notice of Commitment’ type is approved, this quantity will be populated to the corresponding requisition line items into the corresponding field for PO quantity. Each time this field is updated, the total costs of the order must be calculated again. For performance reasons, this is not done automatically but has to be requested by the user by means of the 'Recalculate' button on the P.50.11/21/31/41 screen. The costs are also computed again when an order is approved.

Qty Unit -- The quantity unit for this line item. All units that have been defined below the 'weight', 'volume', or 'quantity' unit groups are available and valid values for this field.

Last Quantity -- This field only contains a value if the order displayed in the first block is a change order. The value represents the old quantity of this line item, that is, the quantity of the item before this change order was created. If the order is not a change order, the value 0 (zero) is shown.

Changed Quantity -- Like the 'Last Quantity' field, this field only contains a value if the order displayed in the first block is a change order. The value is the difference between the (actual) quantity and the last quantity of this line item. If the order is not a change order, the value 0 (zero) will be displayed.

Unit Price -- Unit price of the line item, including packing and discount. If the unit price is changed, the total costs of the order are not calculated immediately for performance reasons. SmartPlant Materials will compute these costs again either when clicking the 'Recalculate' button on the P.50.11/21/31/41 screen or when approving the order ('Approve' button).

Extended Price -- This field displays the extended price. If the price base is 'QTY-UNIT', the extended price is the result of the multiplication of the quantity with the unit price. If the price base is 'WEIGHT-UNIT', this field is calculated as the product of quantity, unit price, and unit weight.

When calculating the extended price, the precision that can be set for currencies on the A.10.12 Units of Measure screen will be taken into account. If, for example, the precision for a currency is set to 1, the price base is 'QTY-UNIT', the quantity is 10.25 and the unit price is 1.2345, the extended price will be 12.70 instead of 12.65. If you update the extended price, the unit price is recalculated taking the price base into account.

Other Cost -- The 'Other Cost' field shows the sum of all other costs that are attached to this line item. If the currency of an "other cost" differs from the currency of the line item, the cost value will be converted to the currency of the line item using the factor that has been stored on the P.30.45 Inquiry Exchange Rates screen. If no factor is provided by the inquiry cycle, the conversion factors of A.10.13 Unit to Unit are applied. If a factor cannot be found, a warning appears and the value 0 (zero) will be displayed in 'Other Cost'.



Currency -- This field contains the name (code) of the currency. All currencies defined on A.10.12 Units of Measure below the 'currency' unit group can be placed here. When changing the currency of a line item, the total costs must be calculated again. Please click the 'Recalculate' button on the P.50.11/21/31/41 screen in order to update the total costs. When entering a new line item on a manual purchase order (without assigned blanket order), the currency of the order header is taken over as the default. But this default can be changed.

Price Base -- The price base can be either quantity-unit or weight-unit. If the price base is weight-unit, the costs will be calculated using the unit weight and the quantity; otherwise, only using the quantity. If the value of this field is changed, the total costs of the order must be recalculated.

Unit Weight -- Supplier's suggested unit weight including packing. If the value of this field is changed and the price base of this line item is 'WEIGHT-UNIT', the 'Recalculate' button in the calling P.50.11/21/31/41 module will be enabled.

Total Weight -- This field shows the total weight calculated as the product of the quantity and the unit weight. If you update the total weight, the unit weight is recalculated. The precision you can set for a currency on the A.10.12 screen is taken into account when calculating the total weight.

Weight Unit -- The weight unit for this PO line item. All units that have been defined below the 'weight' and 'quantity' unit groups are available and valid values for this field.

Volume -- Supplier's suggested unit volume including packing.

Volume Unit -- The volume unit for this line item. All units that have been defined below the 'volume' and 'quantity' unit groups can be entered.

Dimensions -- Dimensions (X, Y, and Z) of the line item.

Incoterm -- Name (code) of the incoterm defined on P.10.34. Incoterm is a mandatory field if extended expediting is used.

Delivery Place -- Delivery place of the material.

Rev Prom -- Revised original promise date. This field is only needed and updateable for purchase and change orders.

First Ship -- The number of weeks before the first shipment. This field is only needed and updateable for blanket orders and notices of commitment.

Last Ship -- The number of weeks until the last shipment. This field is only needed and updateable for blanket orders and notices of commitment. When updating this field for a notice of commitment, the following expediting dates are recalculated:

• Prom Ship • Curr/Rev Prom Ship • Prom On Site



For the recalculation, the old and the new value of last ship are multiplied by 7 to get the number of days. The old value is subtracted; the new value is added to the date fields listed above. If the ZP_EXPDATE project default has been set to 'Y', the 'Pred On Site' field is modified accordingly, too.

Ctry of Origin -- Name (code) of the country from which this line item comes from.

Manufacturer -- Name of the manufacturer.

Catalog Number -- Manufacturer's catalog number for the item being supplied.

% Dom. Prod. -- Percent of the product that was manufactured in the U.S.

Tec Req -- Indicator whether a technical evaluation is required for this line item. This check box cannot be updated. The value of this indicator is taken over from the requisition line items that are associated with this order line item. If the order has been created based on a bid evaluation (quote summary), this indicator will always be 'No' because an order can only be created based on a quote after the technical evaluation has been completed. So in this case, a technical evaluation is not necessary because it has already been done.

If the order has been created directly from an engineering requisition, the value of this indicator is taken over from the requisition line item. If a requisition line item requires a technical evaluation, the order line item will require it, too. Thus, it is prevented that material is ordered without having been evaluated technically.

If more than one requisition line item is associated with an order line item, the order line item requires a technical evaluation if any of these requisition line items requires one. In case of a change order, a technical evaluation is never required because the material is cancelled and because it has already passed the evaluation with the previous order. If any line item of an order requires a technical evaluation, the order can only be approved after the technical evaluation complete date has been set on the order header level and the 'Tec Pass' check box has been marked for all affected line items.

Tec Pass -- Indicator whether the technical evaluation has been done for this line item. An order can only be approved if this check box has been checked in case the line item requires a technical evaluation (that is, the 'Tec Req' check box is marked). Selecting this check box can be done either manually or by clicking the 'Tec Pass' button on the P.50.11/21/31/41 screen. You need the 'TECHNICAL EVALUATION' privilege to be allowed to update this indicator.

Exp Lic Req -- Indicator whether an export license is required for this item. When updating this indicator, this check box is set accordingly on the item shipment level. (To modify the value on the item shipment level, you can use the PX.20.24 Tracking Details screen)



Exp Lic Recv -- Date the export license was received. This field is only needed and updateable for purchase and change orders.

Exp Lic Number -- Export license number.

Account Code -- Name (code) of the account code defined on A.10.30 Account Codes. The value of this field cannot be changed if you are using the account code module. Whether you are working with this module or not is defined by the 'ZJ_USE_AC' project default. If this default is set to 'N', you can apply changes to the field. Otherwise, you have to go to the J.20.02 Order Accounts screen (via Fastcall) to maintain the account code information. The Fastcall to J.20.02 is not available for blanket orders because information on account codes is only stored for purchase orders and notices of commitments (and their related change orders).

Closed -- Date the line item is available to be closed.

Engineering Requisition -- Name (code) of an engineering requisition. Together with the 'Suppl', 'RLI Pos', and 'RLI Sub' fields, this field tells you which requisition line item is associated with this order line item. If more than just one requisition line item is assigned to an order line item, these fields just show you the first requisition line item that was assigned to the order line item.

If you want to see all requisition line items, you can press the 'Update Quantity' button or double-click this field to open a second window ('Req Line Items on Orders'). To help you make out whether one or more requisition line items are assigned to an order line item, the background color of the 'Engineering Requisition' field is magenta if more than one requisition line item is assigned. Moreover, this field is used for inserting line items on a blanket order.

Suppl -- Supplement of the engineering requisition.

RLI Pos -- Line item number of an engineering requisition. The field shows the corresponding position of this order line item on the requisition.

RLI Sub -- Sub line item of an engineering requisition. In the next block of the P50.01 screen, the following fields to maintain item shipments are available.

Item Shipments -- In this block, the item shipments of an order line item are displayed. As long as the order has not been approved, you can update the fields. You cannot use this block to insert or delete item shipments. To make it easier to update more than just one item shipment at a time, a Fastcall to the P.70.21 Global PO Line Update module has been provided.

Pos -- Sequence number identifying related shipments of an order line item.

Sub -- An additional sequence number identifying split shipments of an order.

Quantity -- Quantity of the item shipment.



Prom Contract -- Date for which the supplier promises to deliver this line item. The 'PO First' field on P.50.11/P.50.21 is filled with the earliest 'Prom Contract' date of all line items. The 'PO Last' field on P.50.11/P.50.21 is filled with the latest 'Prom Contract' date of all line items. When entering a new minimum or maximum, the header information of this order will be updated accordingly. But these changes are only visible when required on P.50.11/P.50.21. When a new order is created, this date field is filled with the same value as the 'Prom Ship' field (please see below for further details).

Prom Ship -- Date the supplier promises to ship the item. When an order is created, this field is filled as follows:

• If a quote exists for this order and the 'Last Ship Date' field is filled, this date is taken over.

• If there is no quote for the order or the 'Last Ship Date’ field contains no value, the number of weeks in the 'Last Ship' field is multiplied by 7 (= number of days per week). The resulting number of days is added to the current date of the system (= creation date of the order).

For manual purchase orders, the system date is placed in this field.

If you update this field, 'Prom On Site' will also change because this date field is calculated as 'Prom Ship' + transit days of the routing method. If the ZP_EXPDATE project default has been set to 'Y', 'Pred On Site' will also change because this date field, too, is calculated as 'Prom Ship' + transit days of the routing method. If the ZP_EXPDATE project default has been set to 'N', 'Pred On Site' remains unchanged when modifying the promised ship date. As long as an order has not been approved, 'Prom Ship' and 'Curr/Rev Prom Ship' are identical. So updating 'Prom Ship' results in changing 'Curr/Rev Prom Ship'.

Req On Site -- Date on which the item is required on site. When a new item shipment is inserted (during the process of creating an order), this field is filled with the ROS date of the corresponding requisition line item.

Delv. Desig. -- Name (code) of the delivery designation. Delivery designations are maintained in the A.10.39 Delivery Designations module. Changing the delivery designation implies that the value of the routing method (next field) must be altered. Therefore, the routing method is filled automatically with the default defined on A.10.39 when selecting another delivery designation. If no default has been defined, the routing method will be set to NULL. For purchase orders, the delivery designation is taken over from the corresponding requisition line item.

Routing Method -- Name (code) of the routing method defined on P.10.53 Routing Methods. You can only enter routing methods of which the delivery designation equals the one selected in the 'Delv. Desig' field. Before approving a purchase order, the routing method must be filled. Otherwise, the approval will not be performed.

When changing the delivery designation, the routing method is automatically filled with the default routing method defined on A.10.39



Delivery Designations. If no default has been defined, the value of this field will be set to NULL. But, you can choose any other routing method of this delivery designation if necessary.

At the time item shipments are created, the routing method will be filled primarily with the routing method defined for the order header. If this routing method is not valid for the delivery designation, the default routing method defined on A.10.39 will be taken. If no default has been determined this field remains empty. If you change the routing method, the 'Pred On Site' and 'Prom On Site' dates are recalculated because of the changed number of transit days.

Attributes -- Click this button to call A.50.21 Attached Attributes directly for an item shipment. You can use this button instead of the FASTCALL.

Mandatory Steps to Approve the Purchase Order • Assign a routing method to each PO line item shipment. This

can be done either by inserting it directly into the ROUTING METHOD field or by using the P.70.21 Global Update screen.

• In this example, the Sea Transport routing method is used. The

routing method must always be understood together with the delivery designation. To insert/update or check the routing method, use the P.10.53 screen.



• In order to not force the user to insert fields like routing method line item by line item, the P.70.21 Global order line item update screen is available via Fastcall.

• Here you may enter appropriate values into any field. Then the

next block button is used to open the second window.

Click Find to search for the line items (use the “white” fields to query for line items). Click Save to populate the values from the previous screen to the line items.

By entering a value into the Pos, Commodity Code, Ident Code, or Tag Number fields and then clicking the Find button, SmartPlant Materials selects an extract of line item into the third block of the screen. If you find the correct line items in the third block, you can click the Save button. This will copy the previously defined values into the queried item shipments.



Approval of a Purchase Order After all necessary attachments and field information is inserted, the PO may be approved. SmartPlant Materials provides two approval procedures for POs.

Click the CREATE ORDER button to create the purchase order.

If the ZP_SUM_CO project default is set to 'N', this button is only enabled if you have the right (or privilege) to approve an order and if the order has not yet been approved. In this example. ZP_SUM_CO is set to ‘N’.

If the ZP_ADV_APP project default is set to 'Y', this button is enabled only if the 'Ready for Approval' check box has been checked. This enables a buyer to maintain a PO and then mark it as ready for approval. After that, a procurement manager checks the work and approves the order.

To be able to approve orders, the 'PO APPROVAL' privilege must be assigned to the user on A.20.06.04 User Privileges. Approving an order means that no more changes can be made. You can query data but not update it. The only change that is still possible is to issue and close the order, which means updating the 'Issued' and 'Closed' fields. Also, you can enter the performance score for the supplier.

There are two expediting module versions. In this document, we assume the latest version is used and recommend it because the resulting workflow is more thorough than the previous version. ZP_NEW_EXP determines which is used.

Project default ZP_NEW_EXP = 'N':

Purchase orders and their change orders can only be approved if a routing method has been selected for all item shipments. You can maintain the routing method of item shipments on the P.50.14 Line Items screen in the 'Item Shipments' block. As item shipments are not created for blanket orders, this check will not be performed for blanket orders.



• The following updates are processed on PO approval: • The total costs are calculated again (if necessary). • The 'PO Quantity' field is updated in the corresponding

requisition line items. • The order will be added to the supplier project history

(P.20.07 screen). • VDRs that are attached to the order are populated to the

item shipments of the order. The extent of this population is determined by the setting of the ZP_PO_VDR and ZP_POLIVDR project defaults. With the ZP_PO_VDR project default, you influence the population of VDRs attached on the order (header) level.

The values that are available have the following meaning:

A: The VDRs attached to the order are copied to all item shipments of the order.

FPO: VDRs are only copied to the first item shipment of the order. The first item shipment of an order is the item shipment with the lowest position/sub position of the order line item with the lowest position/sub position.

FPOLI: The VDRs of the order are copied to the first item shipment of each order line item.

N: The VDRs are not taken over to the item shipments. This is the default value if this project default has not been set.

The ZP_POLIVDR project default is used for the population of VDRs that have been attached to order line items.

The following values are possible:

A: The VDRs of an order line item are copied to all its item shipments.

F: The VDRs of an order line item are only copied to its first item shipment.

N: VDRs are not copied. In the case that this project default has not been set, this is taken as default value. The 'Approved by' and 'Approved' fields are set.



Maintenance of a PO After Approval After the approval of a PO, the responsibility is transferred from the buyer to the expeditor. The only changes that are still possible are issuing and closing the order (or NOC), which is done by updating the 'Issued' and 'Closed' fields. It is also possible to enter the performance score of this order.

• To issue a PO to the supplier, this field may be filled with the date the PO was sent to the supplier. The purchase order today is still normally sent as a paper version. In order to start a report, use the Main menu Custom item and select Reports > Purchase Order. Then enter in the field the purchase order via LOV that you want to print.

• The closing of a PO is an expeditor’s task. The P.70.41 Close

Order screen is used to manage this. There, information boxes inform you about the status of an order.

All material received -- This check box is checked if all material of the order has been received. This means that the quantity (or even more) of all item shipments has been received on site and has been posted to the inventory.

All OSDs closed -- This indicator is set if all OS&Ds belonging to the order have been closed.

All CAs checked -- This check box is checked if all closeout activities that have been assigned to the order have been marked as complete. You can check the 'Comp check box on the P.50.13 screen.

All NCRs Closed -- This check box is checked if all NCRs are closed. Open NCRs mean that there exist item shipments marked as inspectable on



P.70.55. Some of these shipments have the NCR Date field filled but no NCR Release Date yet.

Ready to Close -- This check box is checked if the other four check boxes are checked.

Close -- This button is enabled if the order itself and all its change orders have been approved and issued but not closed so far. When clicking this button, the 'PO Close Date' field is set to the current date for the order itself and all its approved change orders. If the order is based on an inquiry and this order is the last (or only) one that is based on this inquiry and is to be closed, the 'PO Closed Date' field on P.30.11 Create Inquiries is also set to the current date.

Reverse Close -- This button is active for all orders that have already been closed. If you click this button, all changes that were applied when clicking the 'Close' button in this module are turned back; that is, the date fields are reset to NULL.

• Inserting a supplier rating is normally done right before the PO

is closed. Supplier performance rating is kept for each supplier and the issued POs cross multiple projects. On the P.20.41 Supplier Performance screen, select the supplier project and then the PO to be rated.



• In the second window, insert the ratings.

• After selecting an evaluation group for each performance

criteria, assign the score for the rating. The possible values and their meaning are shown in the LOV. After entering all performance criteria, score values calculate the average score for a PO. The result of the calculation is between 0 and 1. As more of the value reaches 1, the better the rating for the supplier is. In this example, each criterion was filled with ‘5’.



Management of Quantity Changes in Purchase Orders

SmartPlant Materials handles quantity changes in purchase orders in two ways: Supplements to existing orders and Change Orders. The method in which it deals with quantity changes depends on the type of change.

• Supplements are used for positive quantity changes including additional requisition line items.

• Change Orders are used for negative quantity changes including deleting requisition line items and deleting entire Purchase Orders.

If both types appear on a new requisition supplement (for example, a new line item AND a reduction in quantities on an existing line item), then SmartPlant Materials will create both a supplement to the PO for new items and a Change Order for the reductions.

Requisition Supplements The first step when making any changes to an order is to see what changes have been made by the engineering disciplines to the original requisition. Changes to requisitions will appear as supplements on the P.30.01 Requisition Workload screen.

• Open the P.30.01 Requisition Workload screen. • Move under image.

• Check that the correct buyer has been assigned to the

requisition supplement. SmartPlant Materials will automatically assign the buyer assigned to the supplement ‘0’.

• Click the Create Supplement button to start the change order/supplement creation process.



• Once you click OK, the system will automatically move to the P.30.02 Order Creation Results screen. On this screen, the user can view the changes that have been made to individual line items in the requisition.

• Click the “Commit” button at the base of the screen to apply the changes. If you click the “Rollback” button, then the process of Supplement/Change Order creation will be stopped.

• After the “Commit” button has been clicked, the system will return to the P.30.01 screen. From here, you can use the Fastcall menu to access the required screens to check the Supplement (P.50.11 Maintain PO’s) or the Change Order (P.50.31 Maintain CO’s) as required.

Maintaining a Supplement to a Purchase Order There are two levels to consider when maintaining supplements: the Header and Line Item information.

Header Information • Select the P.50.11 screen. • Use the LOV menu to select the required PO and supplement. • Run the query to access the required supplement.

Maintaining supplement order information is done in exactly the same manner as for a normal PO. This screen is also used to approve the supplement using exactly the same process as for a normal PO.

• Once all the header level information has been amended as required, use the Fastcall menu or double-click the order number to access the P.50.14 PO Line Items screen.



Line Item Information • Once the P.50.14 PO Line Items screen is open, a user can

amend the line item information in exactly the same manner as for a normal PO. All the data that existed in the original PO will be present here for the line items on the supplement order. Pricing data can be changed, delivery dates amended, and the method of delivery changed as required. NOTE: A VERY USEFUL SCREEN TO USE IN THIS RESPECT IS THE P.50.21 GLOBAL ORDER LINE UPDATE SCREEN THAT CAN BE ACCESSED VIA THE FASTCALL MENU. THIS SCREEN IS USED TO POPULATE DATA TO MULTIPLE LINE ITEMS.

The following information is mandatory at the line item level for the supplement order: pricing information for every line item, contract delivery dates, delivery designation, and routing methods.

• If the supplement has only increased the line item quantities, then this data will be the same as for the original order. Amend it as required.

• Once all the relevant data has been added, save the records and close the screen to return to the P.50.11 screen to begin the supplement order approval process.

Maintaining a Change Order

Header Information • Open the P.50.31 Maintain CO’s screen and use LOV to select

the required Change Order. The Change Order will have the SAME sort order as the original PO, but the supplement number will be different.

• Use this screen to maintain the header level information for the Change Order and to access the line item information by double-clicking the Change Order number or using the Fastcall menu to access the P.50.14 CO Line Items screen. This screen will also be used to approve the Change Order using exactly the same process as a normal PO.

Line Item Information • On the P.50.14 screen, a user can amend the line item

information in exactly the same manner as for a normal PO. All the data that existed in the original PO will be present here for the line items on the change order. If the user is deleting items from the PO requirements in this screen, there is no need to maintain the item shipments information at the base of the screen.



• Once the line item details have been checked, save the records and close the screen to return to the P.50.31 Maintain COs screen.



Unapproving Purchase Orders Another very useful function in SmartPlant Materials is the ability to unapprove orders using the P.50.71 Reverse Approval screen. Users can only utilize the function of this screen if the systems administrator has given them access.

• In the first field, use the query functions together with the LOV menu to select the required PO, Change Order, or Supplement that you wish to unapprove. Then click the Reverse Approval button to start the reversal process. NOTE: YOU CANNOT UNAPPROVE AN ORDER IF:

• MATERIAL HAS ALREADY BEEN RECEIVED ON SITE.

• MATERIAL IS BEING USED BY THE TRAFFIC FUNCTIONS IN SMARTPLANT MATERIALS (BILL OF LADINGS CREATED AND PO LINE ITEMS ASSIGNED TO THEM).

• A CHANGE ORDER OR SUPPLEMENT EXISTS WITH A HIGHER SUPPLEMENT NUMBER.




Deleting a Purchase Order • To delete a PO, you can use the P.50.11 screen. Deleting is

only possible for POs that are not approved. Opening P.50.11, you must select the PO and then click the standard DELETE menu button.

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