Contract Reassignment ME31K / ME32K / ME33K / ME35K

Purpose
Use this procedure when a new outline agreement is needed to replace an existing outline agreement
where payments have been made to the original Contractor.

Trigger
SAP does not allow changes to the vendor ID number in an outline agreement. And, once an outline
agreement number has been issued, that number cannot be reissued to another vendor ID (even if the
vendor ID belongs to the same entity). One of these two scenarios will trigger the use of this procedure:

A. Contractor A assigns their contract to Contractor B; or

B. Contractor A has a NEW vendor ID number created in SAP (could be because they have a NEW
tax identification number).

Prerequisites

You may need to review the procedure for attaching documents to an outline agreement.
The vendor exists in SAP (Vendor Master via MK03 or XK03).
You have documentation to authorize the assignment (such as the letter from the current contractor
requesting the reassignment, the signed contracting document, etc.). Follow your reassignment
procedures.
You have the logistical data to complete the transition from the old contract to the new contract (i.e., cut-
off date, balance on contract, etc.)
You have the original contract/outline agreement number.

Transaction Codes: ME31K / ME32K / ME33K / ME35K

Helpful Hints

Here are the outline agreement types and the document numbering conventions:
30XXXXXX = VC (Value Contract)
CPA (Community Partner Agreement)
IGA (Intergovernmental Agreement)
LSA (Lease Agreement (City pays))
31XXXXXX = PA (Price Agreement)
32XXXXXX = GA (Grant Agreement)
33XXXXXX = NVC (Non-Value Contract)

R/O/C column in tables represents Required, Optional, or Conditional entry.

Use transaction code ME33K to attach scanned contract (signed by Vendor, if routed electronically for
City Signatory) and pertinent documents.
If this is a citywide agreement, do not enter a Plant code.

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.

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Procedure

1. Create a NEW (replacement) outline agreement in SAP via transaction code ME31K for the New
Contractor.

2. Enter transaction code ME31K (Create Contract) in the Command Field (identified below) and
click the Enter button (the green check mark icon). The Create Contract: Initial Screen displays.

Create Contract: Initial Screen

3. As required, complete/review the following fields:

Field R/O/C Description

Vendor R Enter the NEW Vendor ID number.

Example: 1XXXXX (should start with one(1))

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 Agreement Type R Select the classification that determines the agreement usage. It
should be the same as the OLD outline agreement.

Example: PA for Price Agreement

Agreement Date R DO NOT CHANGE. This field defaults to todays date. This is
the date this outline agreement is created in SAP.

Agreement NA LEAVE BLANK. SAP will generate an outline agreement number

when you click the Save button.

Purchasing R Enter COP1 as there is only one code for the City of Portland.
Organization A Purchasing Organization is an organizational unit that procures
materials and services, negotiates conditions of purchase with
vendors, and bears responsibility for such transactions.

Example: COP1

Purchasing Group R A buyer or group of buyers who are responsible for certain
purchasing activities. Internally responsible for procuring a
material or a class of materials.

Example: P99 for a PTE contract

NOTE: For fields under the heading Default Data for Items, enter data here only if you have
multiple lines in the contract where the information is repeated, such as a Price Agreement where
you have various prices for various items to be purchased under this contract. Otherwise, leave
these fields blank and enter your data when you get to the Item Overview screen. If you need these
fields, these are the common three fields to complete.

Field R/O/C Description

Acct Assignment Cat O Enter an account assignment category, U. This code is
commonly used for outline agreements. An Account Assignment
Category identifies specific settlement receiver types such as
cost centers, internal orders, work orders, asset accounts, or
project WBS elements.

Example: U for unknown

Plant O Select the bureau or office organization unit number.

Example: PK00 for Parks

Material Group O Enter the five-digit code for what youre buying 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: 61500 for general Office Supplies

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4. Click the Enter button (the green check mark icon). The Create Contract: Header Data screen
displays.

Create Contract: Header Data

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5. As required, complete/review the following Administrative Fields:

NOTE: There may be some differences between creating a new outline agreement and creating an
outline agreement to replace an existing one.

Field R/O/C Description

Validity Start R Enter the contract start date for this contract reassignment -
mmddyy. NOTE: SAP will default to todays date for this field. It
should be changed to match the date specified on your
Assignment or Amendment document.

Example: 010110 for January 1, 2010

Validity End R Enter the contract expiration date - mmddyy.

Example: 123110 for December 31, 2010

As required, complete/review the following Terms of Delivery and Payment fields

Field R/O/C Description
Payt Terms R Enter the payment term stated in the contract. The Citys default
(Payment Terms) payment term is net 30 days. This means that invoices are paid
about 30 days from the invoice date of an accurate invoice.

Example: Z030 for Net 30 (no discounts)

Targ. Val. R Enter the balance left from the OLD outline agreement. For
(Target Value) example, if your original contract amount is $100,000 and youve
spent $52,000, then the amount for the NEW outline agreement
is $48,000.

Example: 48000 for $48,000

Incoterms C Depending on your contract language, you may need to specify

(International the freight term in these fields.
Commerce Terms)
Example of first field: FOB for freight/free on board
Example of second field: Destination to define the transfer of
ownership

As required, complete/review the following Reference Data fields

Field R/O/C Description
Quotation Date O Vendor offer date

Your Reference R Enter the old outline agreement (contract)

Example: 30000011

Our Reference C If City Ordinance exists for this contract, City Ordinance Number
must be entered here.
Quotation C Vendor offer number, if any.

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 Salesperson O Vendor contact persons name.

Telephone O Vendor contact persons phone number.

Invoicing Party O The Vendor ID number to whom the City is sending payments.

As required, complete/review the following Information fields:

Field R/O/C Description
Description R Enter a short description of the contract, such as the title of the
contract.

Example: Citywide Office Supplies Contract

Project Manager R Enter name of the City Project Manager responsible for this
contract.

Example: Jane Buyer

Sole Source R Enter Y if sole source or N if not.

On-Call(PTE) C Enter Y if this is a PTE On-Call Contract, otherwise LEAVE

BLANK.

Owner Cost Center R Enter the cost center of the Project Manager (PM). NOTE: No
charges or encumbrances will result from this.

Example: MFPU000001 for a PM within Procurement Services

Bureau O Enter the Plant code, the owner cost centers four-character
alpha code, or LEAVE BLANK.

Example: MFPU for OMF Procurement Services

Original Contract R Enter the original contract amount. The value in this field is the
Amount same as the value in the Target Value when this is a new
contract. NOTE: The value in this field will never change.

Example: 150000 for $150,000

Bureau Project No. C Enter the bureau specific project number, if applicable.

Auto Renewal R Enter 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. Otherwise, enter N.

No. of Renewals C Enter the number of renewals allowed, based on the renewal
interval stated below.

Renewal Interval C Enter the renewal interval per the No. of Renewals above.

Workers Comp. C If required in contract, enter the expiration date mmddyy.

Insurance Expiration

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 General Liability C If required in contract, enter the expiration date mmddyy.
Insurance Expiration

Auto Insurance C If required in contract, enter the expiration date mmddyy.

Expiration

Professional Liability C If required in contract, enter the expiration date mmddyy.

Insurance Expiration

City Signatory R You must select City Signatory numeric code 08 for your NEW
outline agreement.

6. Click the Enter button (the green check mark icon). The Create Contract: Item Overview screen
displays.

Create Contract: Item Overview (shown using the default fields for the Account Assignment and Plant)

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 7. As required, complete/review the following fields:

Field R/O/C Description

I R LEAVE BLANK. This field defines how the procurement of a
(Item Category) material or service item is controlled. Blank equals Standard.

A R Enter an account assignment category, U. This code is

(Account Assignment commonly used for outline agreements. An Account Assignment
Category) Category identifies specific settlement receiver types such as
cost centers, internal orders, work orders, asset accounts, or
project WBS elements.

Example: U for unknown. All outline agreements should use

this code.

Material C If applicable, enter the uniquely identified material number

assigned to the item for which you will purchase under this
contract.

Short Text R Enter the description of what to be purchased under this contract.

Example: A&E services for the Directors Park

Targ. Qty R LEAVE BLANK, as the value in the contract is derived from the
(Target Quantity) Target Value in the Header Data screen.

OUn R Specifies the unit of measure in which the material is ordered.

(Order Unit of
Measure) For Price Agreement, enter the unit of measure to be purchased.
Example: EA for each or BX for box or USD for U.S. Dollar

For Value Contract, enter only USD for U.S. Dollar.

Net Price R Identifies the Per price unit.

For Price Agreement, enter the price per unit specified in the
previous field. Example: Net Price Per EACH or BOX.

For Value Contract, enter only 1.

Per R Indentifies the number of units of the purchase order price unit
for which the Net Price is valid. Typically, enter 1 here.

For certain orders where a conversion factor is used, the data

enter in this field will not be 1. This is rare.

OPU R Indicates the unit of measure for the order unit price. This data
(Order Price per Unit) must match the data entered in the Order Unit of Measure field.

For Price Agreement, enter the unit of measure used in the Order
Unit of Measure field. Example: EA for each or BX for box

For Value Contract, enter USD for U.S. Dollar only.

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 Mat. Grp R Enter the five-digit code for what youre buying under this
(Material Group) 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: 61500 for general Office Supplies

Plnt R Enter your Plant (bureau or office organization unit number) if the
(Plant) contract is Plant specific. LEAVE BLANK if you intend to allow
other bureaus to use this contract, such as a citywide contract.

Example: PK00 for Parks

SLoc (Storage C Not Common. LEAVE BLANK unless you have a unique number
Location) to identify the specific storage location at which the material is
stored. A plant may contain one or more storage locations.

D O This should be blank. If you wish to delete a particular line item,

(Deletion Flag) you will need to highlight the entire line, and then follow this
menu path: Edit Delete (or click the trashcan icon). If you
havent saved this outline agreement, that line item disappears.
If you see a Delete (trashcan) icon, you are viewing this outline
agreement in display or change mode.

Texts O This is normally blank. If you would like to add text to this line
item, you will need to highlight the entire line, and then follow this
menu path: Item Texts Text Overview (or click the
paper and pencil icon). Once a text has been added, you will
see a Display text icon in this field.

8. Click the Enter button (the green check mark icon) to validate the data entered. Correct issues, if
any.

9. Attach all pertinent reassignment documents (anything the Auditors Office requires). If you need
instructions for this action, please refer to the ME33K Attach Documents to an OA.

10. Click the Save button (disk icon).

11. SAP system will return the message, [Outline Agreement Type] created under the number
3XXXXXXX. Write down this number for your reference.

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12. Close the OLD outline agreement in SAP via transaction code ME32K (Change Contract).
From the Easy Access Screen, enter ME32K in the Command Field (identified below) and click the
Enter button (the green check mark icon). The Change Contract: Initial Screen displays.

Change Contract: Initial Screen

13. Enter the Outline Agreement number you want to change, and click the Header Details button
(identified above). A warning message window will pop up stating: Releases already effected are
liable to be reset. Click the Continue button (identified below). The Change Contract: Header
Details screen displays.

Warning window

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14. Enter the Outline Agreement number you want to change, and click the Header Details button
(identified above). The Change Contract: Header Details screen displays.

Change Contract: Header Details screen

15. As required, change the following Administrative Fields:

Field R/O/C Description

Validity End R Enter the date when this contract will expire and will be replaced
by the New outline agreement (contract) - mmddyy.

Example: 123110 for December 31, 2010

As required, change the following Terms of Delivery and Payment fields

Field R/O/C Description
Target Value R Change the information in this field to the amount that has been
encumbered in your DPOs referencing this contract. For
example, if the original contract amount is $100,000 and you
spent $47,000 and youre still expecting to spend another $5,000
before the assignment is effective (or as dictated by the
reassignment document), then the amount for the Target Value
for this OLD outline agreement is $52,000.

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 Example: 52000 for $52,000

NOTE: If your contract was for $100,000 and you encumbered

$100,000 in your DPO referencing this contract. However, you
only spent $52,000 under the DPO, you will need to ask your
Buyer to reduce the DPO amount to $52,000 in order for the
balance of $48,000 to be unencumbered and then have the
original requisition closed.

As required, change the following Information fields

Field R/O/C Description
Description R Enter the following message in the front area, Do Not Use -
See #12345678 (the NEW Outline Agreement Number).

Example: Do Not Use - See #30000123 [the NEW #]

NOTE: Before performing actions under this step #14, Contract Administrators should check the
encumbrance situation to ensure that a DPO has been issued to cover the balance needed to pay all
invoices from the OLD Contractor.

NOTE: Double check encumbrances (e.g., DPOs) to make sure the amount spent and encumbered
do not exceed the Target Value of the OLD outline agreement. For example, if the amount in the
OLD outline agreement is $52,000, then the total of all DPOs referencing this OLD outline agreement
does not exceed $52,000.

16. Click the Item Overview button (identified below). NOTE: You will need to click the Enter button (the
green check mark) once or twice, as you will get a caution message about past contract date.

Item Overview and Enter buttons

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17. The Change Contract: Item Overview screen displays.

Change Contract: Item Overview

18. Highlight the line(s) by clicking as identified above, and then click the Delete button (trash can icon).

19. Click the Save button (the disk icon). The system returns the message, [outline agreement type]
00XXXXXXXX changed at the bottom of the screen.

20. Click the Exit button (yellow arrow up icon).

Result
You created a new outline agreement to replace an existing outline agreement, which you documented
and deleted.

Next Steps

For NEW Outline Agreement:

You may need to come back to this outline agreement and complete the skipped fields (e.g. insurance
info) using the Transaction Code ME32K (Change Contract). When all fields are completed and
attachments uploaded, you will need to use Transaction Code ME35K to release this outline agreement
as a Contract Administrator (CA). SAP will put this into the queue for the Auditors Office to review the
changes, and release and record.

For OLD Outline Agreement:

No additional actions are needed.

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