Professional Documents
Culture Documents
Draftv5Nov15,
Requestor
0010.41
Select Buying
Channel
Requisition
Required
CT
1
Pro-card
Pcard
Designated
Transaction
Requisition
Release
Release
Required
Buyer
0010.42
Generate
P.O.
SAP Requisition
Selected
Vendor
Vendor
Selection
Materials
113,000 P.O.
32,000 <$5k
152,000 Trans.
CT
1
Services
0010.44
Monitor
Status
Materials
Close P.O.
Services
SAP P.O.
(Fax, Auto Fax
Email)
Q
2
No Selected
Vendor
Q
1
Q
3
60-70% of Transactions
SAP MRP
Requisition
System
SAP PM
Work Order
Supplier
11
SAP
SAP
Accept /
Confirm
P.O.
Draftv5Nov15,
Settle
And Pay
Acceptance /
Confirmation
Fulfill
P.O.
P.O.
Received
Order
Receive
Material
24
Fulfilled Order
117,696 Invoices
On Time 86%
Disc Taken 76%
Note 1
Pro-card
Identify Need
Yes
Requestor
Zone
Store?
No
Yes
Storehouse
Stock?
Yes
No
BOM
Purchase?
No
20
Note 1
26
No
Procard
Item?
Yes
Material
Tracking
Required?
No
Yes
Is Material
No. Needed?
25
Maintenance
Planning
Draw From
Stores
16
Material
No. Exists?
Complete request
for material
number (J-Sheet)
No
Yes
0010.43a
Generate
Material
Requisition
Phase II
0010.4.2
Generate
P.O.
Buyer
SAP MRP
Requisition
SAP PM
Work Order
System
SAP Requisition
SAP Requisition
SAP
SAP
SAP Requisition
Supplier
Pro-card
Draftv5Nov15,
SAP
Requestor
No PO Approval
0010.41
Select Buying
Channel
0010.43
Generate
Requisition
Release
13
PO
Approval
25
5
Yes
Vendor
Selection
25
Selected
Vendor
13
Buyer:
Contact Supplier
0010.44
Monitor
Status
22
Workflow
No
No
No
No
20
SAP Requisition
Buyer
Requisition
Requires
Release?
No
Vendor
Determined?
7
17
SAP MRP
Requisition
System
SAP PM
Work Order
Supplier
Draftv5Nov15,
Yes
Workflow
Auto P.O.
Activated?
Yes
No
Create and
Process P.O.
21
P.O.
Yes
Confirmed?
Transmit
P.O.
19
8
CM
SAP
SAP P.O.
(Auto Fax
Email) 2
P.O. 14
EDI/xml
12
Confirm /
acknowledgement
Phase II
Add more
E-transactions
Accept / Confirm
P.O.
Price Yes
Change?
Over
DOA?
Contact
Requisitioner
or Manager
for Approvals
and
Update P.O.
Yes
Requestor
Close P.O.
Buyer
21
Resolve
Issues
18
Settle
And Pay
Received
Order
System
Receive
Material
SAP
Supplier
Start.
P.O.
Fulfill
P.O.
Draftv5Nov15,
Fulfilled Order
Invoice
Requestor
Define
Requirement
10
Outline
Agreement
Exists?
Approver
Involve Buyer
early in this
process
No
25
13
PO
Approval
0010.43
Generate
Requisition
Release
Contact
Buyer
13
Yes
SAP
Requisition
Vendor
Selected
SAP
Work Order
5
Buyer
3
25
System
Get more
Info
(Contract
Requester or
View w/o)
Workflow
Vendor
Selection
/OA Search
Yes
21
Requires
Release?
No
19
Transmit
P.O.
Monitor
Status P.O.
8
Vendor
DB
20
Create and
Process P.O.
CM
SAP
SAP P.O.
(Auto Fax
Email)
P.O.
(Auto-Fax
or Email)
P.O. 12
Acknowledgement
14
Supplier
Draftv5Nov15,
Accept /
Confirm
P.O.
Vendor
0010.1
Mail or email
Invoice
No
Plant Site
0010.2
Receive
Invoice &
approve for
payment
SCAN
Invoice
?
0010.3
Mail invoices
to Cleaninghouse
0010.4
Scan invoice
Yes
0010.5
Scan Invoices,
Load Queue
With images
Clearing
House
Accounts
Payable
Systems
0010.6
Index invoices
From Queue
Draftv5Nov15,
C-House
database
PO Invoice
?
No
C-House
database
SAP
Yes
0010.7 18
Park for
Approval
SAP
0010.8
Invoice posts
for payment
0010.9
Invoice enters
Workflow for
resolution
No
SAP
SAP
END
3.1.1RequisitionsforPurchaseOrders
APOmustoriginatefromarequisitionthathasbeenproperlyreviewedandapprovedbyanauthorizedperson.The
requisitionand/orPOmustbereviewedbytheapprovertoensurethattherightsupplierisdesignated,thatthequantity
oraccurateservicedescriptionislisted,andthatthereisacorrectdelivery/servicedategiven.Requisitionsmustinclude
anSAPmaterialand/orservicematerialgroupnumber.Therequisitionmustalsoincludetheappropriatetaxcodebased
ontheitemorservicebeingpurchased.POtaxcodesstartwithaPorQ.TheSAPsystemwilldeterminethe
taxabilityoftheitembasedonthematerial/servicegroupandthetaxcodeselected,alongwiththetaxingjurisdictionof
thecostcenter.Iftheapproverneedshelpdeterminingtheappropriatetaxcode,theapprovershouldcontacttheTax
Departmentforguidance.
ThefollowingaretheonlyallowablePOpurchasesthatdonotrequirearequisition:
Freight
Restockingfees
HotShotfees
Fuelsurcharges
Expeditingfees
Finishedproducts
(FinishedProductsreferstothoseitemsbeingpurchased,generallybytheSupplyChaingroupfordirectresale.ExamplesResin,Ethylene)
Feedstocks
(Feedstocksaredefinedasrawmaterialsrequiredforanindustrialprocess.Inthechemicalindustry,commonfeedstocksincludenaturalgas
liquidssuchasnaphtha,gasoil,andethane.Benzene,ethylene,propylene,andotherolefinsareexamplesoffeedstocksusedasthebuilding
blocksfortheproductionofvalueaddedpetrochemicals.Ingeneral,theproductmustbeabuildingblockforcreatinganotherproductandit
mustbechanged(reacted)intheprocess.)
Draftv5Nov15,
3.2ProcurementCard
TheProCardprovidesdelegatedpurchasingauthoritybyallowingnon
procurementpersonneltopurchasetargetedmaterialsandservices(whena
contractisinplace)foruseinthecourseofconductingcompanybusiness
withoutProcurementPersonnelsinvolvement.Thisprocessiscosteffective
forCPChembecauseordersareplaceddirectlywiththesupplierandthe
handlingofpurchaseorders,invoicesandchecksareeliminated.
ThefollowingaretheguidelinesforuseoftheProcard.Uncleartransactions
consideredfortheProCardshouldbediscussedwithGlobalProcurement
fortherequestedcommodityortheProCardAdministratorpriortopurchase.
Certain Materials (TBD)
Forfurtherdetails,consultthepolicyportalfortheProcurementCardPolices
andProceduresManual.
Draftv5Nov15,
Draftv5Nov15,
3.1.3Approvals
Appropriateapprovalsshouldbeobtainedpriortomakingcommitmentstothirdparties.APOmustbe
reviewedandapprovedbyanauthorizedpersonwhohasbeendelegatedtheappropriateauthorityasdefined
ontheDelegationsSummary(DOA)document.Allpersonnelshouldreferencetheirrespectivedelegations
summarydocumentpriortoauthorizingthePO.
PurchaseOrdersignatureislimitedtodelegatedauthorityoftheresponsiblepersonsigning.Electronically
issuingoroutputtingaPurchaseOrderconstitutesanelectronicsignature.Asignaturealsoconstitutes
approvaluptothesignersdelegatedauthority.
3.1.4ChangeOrdersorChangestoExistingOrders
TherearesituationswherechangestoPurchaseOrdersarenecessary.Iftheprojectedspend,overalllimitin
SAP,foranexistingorderorneworderexceedstheamountauthorizedontherequisition;itwillbe
necessarytonotifytherequesterforthepurposeofsecuringauthorizationtoincreasethecommittedfunding.
WhenthetotalvalueofaPurchaseOrderisbeingincreased,theProcurementapprovalrequiredisbasedon
thenewtotalcommitvalue.
Draftv5Nov15,
5.10ZoneStores
ZoneStoresarepointofusestores.Thepurposeofazonestoreistoprovideeasyaccesstohighusage
partsatornearthepointofuse.Zonestoresincreaseproductivitybyeliminatingthetraveltoandfromthe
warehouseandeliminatingsystemprocessrequirements.Therearetwoprimarytypesofzonestores:
Vendormanaged:Arepresentativefromthevendormonitorsthezonestore,entersreplenishment
ordersandinsuresthatthereplacementstockisdelivered.
Plantmanaged:Plantpersonnelprovidetheseservices.
Materialssetupinazonestoreshouldbehighvolume,lowcost.Therulesforestablishingzonestore
stockinglevelsarethesameasthoseusedtoadditemstoStores.TheplantMRFmustbeusedforapproval
eventhoughamaterialnumbermaynotberequired.Thevendorsrepresentativeforvendormanaged
inventoriesneedstofollowthesameprotocolsorprovidejustificationforstockinglevelscalculatedbyother
meansandobtainapprovalfromProcurement.
Zonestoresaretobereplenisheddirectfromthesupplier,notfromtheStorestockedmaterials.Eachzone
locationmustbeclearlymarkedfortheitemitcontainsandaccesstoZoneStoresistobelimitedasmuchas
possibletotheusersofthematerials.
StoresorProcurementmustrandomlyselectaminimumpercentageofthematerialandcountittoverifythat
thematerialquantitymatchesthepackingslip.
Draftv5Nov15,
GenerateRequisitionMaterials
Draftv5Nov15,
AutoP.O.
Draftv5Nov15,
MRPProcess
Draftv5Nov15,
RequisitionRelease
Add Workflow
approval reminders
Auto from PM
Material Return
Draftv5Nov15,
Service Return
P.O.Materials
Inform requester of who has to approve it
Add supplier
confirmation
Draftv5Nov15,
TransmitP.O.
Up to date info
Materials Return
Draftv5Nov15,
Services Return
VendorSourcing
Draftv5Nov15,
P.O.Services
Draftv5Nov15,
Draftv5Nov15,
MaterialNumberDecision
Draftv5Nov15,
TimeSheetsandWorkApproval
Draftv5Nov15,
WorkflowwithCCTS
Contractor
Performs Work
Contractor &
Owner Approve
Transactions
Auto Interface to
CMMS & Posted to
POs, WOs, & G/L
Auto Interface
To A/P
Contractor
Paid by EFT
Draftv5Nov15,
Required human
intervention