SmartPlant Materials How to Create a Price Agreement

Version 2007.2 (6.2.3) November 2006 / May 2007 DMAR1-PE-200098A

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Table of Contents

Table of Contents

Preface .................................................................................................................................4

Overview .............................................................................................................................5

Creating Price Agreements: A Workflow .......................................................................6 Target Role ......................................................................................................................... 6 Session Goal ....................................................................................................................... 6 Workflow Prerequisites ...................................................................................................... 6 Budget Hours: Concept Transfer to Users .......................................................................... 6

Detailed Workflow .............................................................................................................7 Create a Price Agreement ................................................................................................... 7 Applying Prices from a Price Agreement into a Purchase Order ........................................ 8

SmartPlant Materials How to Create a Price Agreement 3

Preface

Preface This document is a user’s guide for SmartPlant® Materials 2007.2 (6.2.3).

It describes the process for creating a price agreement.

Send documentation comments or suggestions to PPMdoc@intergraph.com.

Note

• The following name changes are taking effect in this version of the software: "MARIAN" is changing to "SmartPlant Materials" and "MLCL" is changing to "SmartPlant Reference Data".

4 SmartPlant Materials How to Create a Price Agreement

Overview

Overview This document describes how to create a price agreement.

In SmartPlant Materials, a price agreement is used to fix a price between the company working with SmartPlant Materials and a supplier of specific articles (idents) for a certain period of time.

Since the work process behind a price agreement is similar to the one used for the creation of blanket orders (B.O.s), the differences between these two options for pricing in front of purchase orders are listed below:

Price Agreement Blanket Order

If created in the product group, available for all related projects.

Always available for a single project.

Not based on a requisition or BOM data. As long as the B.O. is not created manually, it is based on requisitions.

No direct link to inquiry cycles. Inquiry cycle is integrated.

Only line item prices can be transferred to a later P.O.

Prices and other cost and attachments can be transferred to a later P.O.

The price agreement can be easily used to speed up the purchasing process. It allows saving inquiry cost and time for bulk materials, which can be bought easily again and again through the same supplier. It is also possible to create several price agreements for the same material.

How to create a price agreementHow to create a price agreement

Create price type

Create price agreementCreate price agreement

Insert price agreement items and assign prices

Create order from price agreementCreate order from price agreement

Create requisitionsfor Purchase Create POCreate PO Apply prices from

price agreement

SmartPlant Materials How to Create a Price Agreement 5

Creating Price Agreements: A Workflow

Creating Price Agreements: A Workflow The goal of this document is to explain the specific tasks and best practices for the creation of price agreements.

Target Role The target audience for this document is home-office-based SmartPlant Materials administrators, procurement super users and buyers.

Session Goal This session will enable users to understand the process concept for price agreements and how to create them.

Workflow Prerequisites This document assumes that the SmartPlant Materials introduction and overview session has been completed. The SmartPlant Materials procurement basics should be understood.

Budget Hours: Concept Transfer to Users It will take between 2 to 3 hours to train users in this workflow.

6 SmartPlant Materials How to Create a Price Agreement

Detailed Workflow

Detailed Workflow

Create a Price Agreement The price agreement is created on the basis of a known supplier, a known ident list, and a known price list. It does not matter where the list of idents originates. Even if a SmartPlant Materials inquiry cycle has been performed, there is no procedure that would transfer the prices from the inquiry into the price agreement area.

To create a price agreement, a price type has to be created in screen AS.10.01 (Menu Others). A price type is basically the name of a price agreement. This can be used to define different price agreements for the same supplier.

The price type, supplier code, currency, price agreement number and start/end date for validity can also be inserted in screen AS.10.01.

SmartPlant Materials How to Create a Price Agreement 7

Detailed Workflow

The AS.10.02 Price Data screen also allows to insert price list items as group, part, commodity code, and ident, and to assign prices.

Since there is no approval procedure available for price agreements, the inserted prices are directly available for use in procurement. An approval procedure is not foreseen, because the purchase order, which will later receive prices from the price agreement, will be approved in any case.

Applying Prices from a Price Agreement into a Purchase Order

After a price agreement is available, it can be used with any kind of purchase order (manual or based on a requisition). In the following example, the requisition PIPING-FLG&FITT-NO-SPLIT-0001 is used to create a purchase order.

8 SmartPlant Materials How to Create a Price Agreement

Detailed Workflow

In the next step, the supplier is assigned to the purchase order. To be able to later work with a price agreement, a supplier has to be chosen, for which a price agreement has been created.

SmartPlant Materials How to Create a Price Agreement 9

Detailed Workflow

After the purchase order is created, screen P.5.001 offers on the first tab page the “Apply Prices” button.

In the screen P.50.07, window 9, prices can be taken over to the actual P.O. from various sources. Selecting the source “Price Agreement” and pressing the “Continue” button opens the following screen:

In screen P.50.07, window 12, all price agreements for this supplier can be viewed and selected. SmartPlant Materials does not filter the price agreements based on the valid start/end dates. It is left up to the user whether a selected price agreement has valid dates or not.

10 SmartPlant Materials How to Create a Price Agreement

Detailed Workflow

After pressing the “apply prices” button, the prices are populated from the price agreement to all P.O. line items, where SmartPlant Materials finds matching ident codes.

Those P.O. line items not having an ident code available in the price agreement are not affected. This means that it is theoretically possible to apply prices from several price agreements with a supplier into one purchase order. It must be emphasized that if an Ident code exists in more than one price agreement, the last applied price will stay on the P.O. line item level.

SmartPlant Materials How to Create a Price Agreement 11