This document provides a procedure for approving outline agreements in SAP. It involves entering transaction code ME35K, inputting the required release code and document number, reviewing attachment details to ensure compliance, and checking header and item overview fields to confirm correct setup of the outline agreement before approval. The approval process requires reviewing three main screens - Release Purchasing Documents, Display Contract, and Display Contract Header Data - to verify key fields and attachments match the outline agreement documents.
This document provides a procedure for approving outline agreements in SAP. It involves entering transaction code ME35K, inputting the required release code and document number, reviewing attachment details to ensure compliance, and checking header and item overview fields to confirm correct setup of the outline agreement before approval. The approval process requires reviewing three main screens - Release Purchasing Documents, Display Contract, and Display Contract Header Data - to verify key fields and attachments match the outline agreement documents.
This document provides a procedure for approving outline agreements in SAP. It involves entering transaction code ME35K, inputting the required release code and document number, reviewing attachment details to ensure compliance, and checking header and item overview fields to confirm correct setup of the outline agreement before approval. The approval process requires reviewing three main screens - Release Purchasing Documents, Display Contract, and Display Contract Header Data - to verify key fields and attachments match the outline agreement documents.
This document provides a procedure for approving outline agreements in SAP. It involves entering transaction code ME35K, inputting the required release code and document number, reviewing attachment details to ensure compliance, and checking header and item overview fields to confirm correct setup of the outline agreement before approval. The approval process requires reviewing three main screens - Release Purchasing Documents, Display Contract, and Display Contract Header Data - to verify key fields and attachments match the outline agreement documents.
Purpose Use this procedure to review and approve outline agreements.
Trigger Perform this procedure when an outline agreement is ready for your release (approval), either because you are the responsible Contract Administrator (CA release code) or you have a City Signatory role for this outline agreement.
Prerequisites There is an outline agreement awaiting your approval.
You know the outline agreement number you wish to approve.
You know your City Signatory role (release code).
Transaction Code: ME35K
Helpful Hints R/O/C column in tables represents Required, Optional, or Conditional entry.
If you don't know your Release Code, use the Matchcode button (identified below) to locate all codes available. For Contract Administrators, the code is CA.
NOTE: The term “Outline Agreement” is used when referencing what is done in SAP while the term, “Contract” is used when referencing the legal (paper) document.
Procedure
1. Enter transaction code ME35K in the Command Field (circled below) and click the Enter button (the green check mark icon). The Release (Approve) Purchasing Documents screen displays.
Release (Approve) Purchasing Documents
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2. As required, complete/review the following fields: Field R/O/C Description Release Code R A release code represents the level of authorization required. Enter the code for which you are authorized to release outline agreements.
Example: CA for Contract Administrators
Set Release R Check mark is present.
Release Prerequisite R Check mark is present.
Fulfilled
Scope of List R Must leave with the defaulted code “ALV”.
Purchasing R Must leave with the defaulted code “K”.
Document Category
Document Number R Enter the outline agreement number you wish to access and release.
Example: 30000841
3. Click the Execute button (the clock with green check mark icon). The Release Purchasing Documents with Release Code XX screen displays.
Release Purchasing Documents with Release Code XX
4. Select the desired row you wish to review by clicking the outline agreement number on the left hand side of the screen.
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5. Click the Details button (the magnifying glass icon). The Display Contract: Item XXXXX screen displays.
Display Contract: Item XXXXX
6. Click the left side of the Services for Object button (circled above). The Purchase contract 00XXXXXXXX menu displays.
Purchase contract 00XXXXXXXX
7. Click the Attachment list button (circled above). The Service: Attachment list dialog box displays. Review all attachments to ensure this contract meets all City regulations and procedures.
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Service: Attachment list
8. To review an attachment, select the desired attachment by clicking on the row (line).Click the Display button (the eyeglasses icon circled above) to open for review. The attachment displays.
Adobe Acrobat Professional file
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9. Click the Close button (the X in the upper right hand corner) to exit the document. Continue to review each attachment for compliance.
10. Click the Continue button (green check mark icon) to close the Service: Attachment list screen when done with your review of attached documents. The Purchase contract 00XXXXXXXX menu displays.
Service: Attachment list
11. Click the Close button (the X) of the Purchase contract 00XXXXXXXX menu to return to the Display Contract: Item XXXXX screen.
Display Contract: Item XXXXX
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12. Click the Overview button (circled above). The Display Contract: Item Overview screen displays.
Display Contract: Item Overview
13. Review the following fields in the Display Contract: Item Overview screen to make sure the outline agreement is setup correctly:
Field R/O/C Description
Item Category R Must be BLANK. Account Assignment R The code entered should be “U”. Category Material C If applicable, review the uniquely identified material number assigned to the item for which you will purchase under this contract. Short Text R Review the description of what is to be purchased under this contract and to ensure the description is clear.
Examples: Mental Health Provider
Pipe, PVC, 3” Diameter Elbow Bend Nob Hill Sewer Replacement Project
Target Quantity R Make sure this field is left BLANK or “0” (zero), as the value in the contract is derived from the Target Value in the Header Data screen.
Order Unit of R Review how the item or service under this contract will be Measure purchased; the unit of measure in which the material is ordered.
For Price Agreement, review the unit of measure to be
purchased. Example: EA for each or BX for box
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For Value Contract, only “USD” for U.S. Dollar should be used.
Net Price R Identifies the per unit price.
For Price Agreement, review the price per unit specified in the previous field. Example: Net Price Per EACH or BOX.
For Value Contract, only “1” should be used.
Per R Indentifies the number of units of the Order Price Unit for which the Net Price is valid. Typically, you should see “1” in this field.
NOTE: For certain orders where a conversion factor is used, the
data enter in this field will not be “1.” This is rare.
Order Price per Unit R Indicates the unit of measure for the order unit price.
For Price Agreement, you should see the unit of measure used in the Order Unit of Measure field. Example: EA for each or BX for box
For Value Contract, you should see only “USD” for U.S. Dollar used.
Material Group R You should see the five-digit code for what is purchased under this contract. A Material Group is a collection of goods or services that share common characteristics. For example, Office Supplies would be used if your contract is for pens, papers, staplers, etc.
Example: 96100 for Miscellaneous Professional Services
Plant C This is the bureau or office organization unit number. If this is a
citywide contract, it should be BLANK. Otherwise you should see the Plant Code for the bureau or office who owns this contract.
Example: PK00
SLoc (Storage C Not Common. You should see a BLANK field unless there is a Location) unique number to identify the specific storage location at which the material is stored. A plant may contain one or more storage locations.
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14. Click the Header Details button (the top hat icon) if all fields are correctly done. The Display Contract: Header Data screen displays.
Display Contract: Header Data
15. Review the following fields in the Display Contract: Header Data screen to make sure the outline agreement is setup correctly, data should match to what is in the contract and contracting documents:
Administrative Fields area:
Field R/O/C Description Validity Start R You should see the contract start date - mmddyy. SAP will default this field to the date the contract was created into SAP. Make sure this date matches the actual contract start date.
Example: 01/01/2010
Validity End R You should see the contract expiration date - mmddyy. Make sure this date matches the actual contract end date.
Example: 12/31/2010
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Terms of Delivery and Payment area Field R/O/C Description Target Value R You should see the contract value. The total value of all materials or services to be released against the outline agreement (contract). The value in this field will change when compensation is increased or decreased with executed amendments or change orders (for construction).
Example: 150,000.00
Reference Data area
NOTE: You don’t need to review this area, but do know that there may be contents in these fields.
Field R/O/C Description
Quotation Date O Vendor offer date
Your Reference R You should see the solicitation number in this field.
Also, could be used to enter an Old outline agreement (contract)
number if this new outline agreement is created due to a reassignment or the vendor had to have a new City Vendor ID number for any number of reasons.
Our Reference C City ordinance number, if one exists
Quotation O Vendor offer number, if any.
Salesperson O Vendor contact person’s name.
Telephone O Vendor contact person’s phone number.
Invoicing Party O The Vendor ID number to whom the City is sending payments.
Information area Field R/O/C Description Description R You should see a short description of the contract.
Example: Citywide Office Supplies Contract
Project Manager R You should see the name of the City Project Manager responsible for this contract.
Example: Jane Buyer
Sole Source C You should see a “Y” if this is sole source contract, an “N” if not, or just a BLANK field.
On-Call(PTE) C You should see a “Y” if this is a PTE On-Call Contract or just a BLANK field.
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Owner Cost Center R You should see the cost center of the Project Manager (PM). No charges or encumbrances will result from this.
Example: MFPU000001 for a PM within Procurement Services
Bureau R You should see the Plant code or the owner’s four-character alpha code.
Example: MFPU for OMF Procurement Services
Original Contract R You should see the original contract amount. The value in this Amount field is the same as the value in the Target Value when this is a new contract. The value in this field will never change.
Example: 150,000.00
Bureau Project No. O You should see the bureau specific project number, if applicable.
Auto Renewal O This should be left BLANK. You should see a “Y” only if there is a clause in the contract that states the contract automatically renews itself unless there is a written amendment to terminate the contract.
No. of Renewals O You should see the number of renewals allowed, based on the renewal interval stated below.
Renewal Interval O You should see the renewal interval per the No. of Renewals above.
Workers Comp. O You should see the expiration date – mmddyy.
Insurance Expiration
General Liability O You should see the expiration date – mmddyy.
Insurance Expiration
Auto Insurance O You should see the expiration date – mmddyy.
Expiration
Professional Liability O You should see the expiration date – mmddyy.
Insurance Expiration
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16. Click Back button (the green arrow icon indicated below). The Release Purchasing Documents with Release Code XX screen displays.
NOTE: If you are rejecting this outline agreement for any reason, you will need to stop here and use the “ME32K Reject an OA” procedures.
Release Purchasing Documents with Release Code XX
17. Click Release possible button (circled above) to approve. The button will change from a check mark and pencil icon to a green check mark icon.
18. Click the Exit button (yellow arrow up icon).
Result You have approved an outline agreement.
Next Steps
You are done, unless you need to reject this outline agreement. If so, you will need to use the “ME32K_Reject an OA” procedures.
