Purchase Document Management Course 2 Training Presentation for Supply Chain Platform: Rolls-Royce June 2013

1 Purchase Orders – View and Respond Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Purchase Orders – What’s the Same A purchase order includes specific item(s) or service(s) to be purchased, with the request dates and quantities represented in the order. Find purchase orders from the My Workspace page Search for a purchase order Structure of the purchase order (header and line items) Review details of a purchase order Take action on a purchase order (select lines and accept etc.) 2 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

3 Purchase Order States Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Supplier Actions for Purchase Orders A new purchase order is loaded into SCP-RR in a New state, with all of its line items in a New state. The supplier can change a New purchase order to these states: a.Accepted – Supplier agrees to the complete request from Rolls-Royce. b.Acknowledged with Exceptions – Supplier responds with a counter proposal (i.e. a different promise date or quantity). c.Rejected – Supplier does not want to fulfill the order request (i.e. an incorrect part number). 4 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Rolls-Royce/System Actions for Purchase Orders Rolls-Royce can change an order to these states by sending a change order to SCP-RR: a.Cancelled – Rolls-Royce wants to cancel an order line or entire purchase order b.Closed – Rolls-Royce wants to close an order line or entire purchase order c.Updated – Rolls-Royce has made a change other than cancel or close Order lines move to an Archived state when they have been in a ‘Cancelled’, ‘Closed’ or ‘Rejected’ state for more than 60 days. A supplier cannot create invoices (where applicable) against order lines in these states: –Cancelled –Closed –Rejected 5 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Order States: Compare SCP-RR to Current Platform Current PlatformSCP-RR (New) New New ChangeUpdated Processing Accepted Acknowledged with Exceptions Rejected (Historical Document Manager)Archived Deleted Closed/CompletedClosed Cancelled 6 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

7 Basic Order Process – Key Features Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Purchase Order Details Page 8 There is still a header section that includes data that applies to the entire order, and lines in the bottom section that represent the items to be purchased. The ‘Schedule States’ determine the ‘Order State’ at the header. Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

(Optional) Print Order 9 The ‘Full Print’ version has been modified with an improved layout. The ‘Summary Print’ version now includes the supplier response and other key data to process an order. Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Print Multiple Purchase Orders 10 Go to Order Management  Purchase Order  Print Orders. Enter search criteria to locate the orders to be printed – then click Search. On the list page, select the orders to print and click Full Print. Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Print Orders – Open or Save the File 11 From the print buttons (details page) or ‘Print Orders’ workflow, you will see a Job List pop-up. Click on the ‘Refresh’ icon in the top right corner until the Status is ‘Completed’. Then click on the File Name. In the pop-up window, select to open or save the file. Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

12 Respond to Purchase Orders Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Locate New/Updated Orders Go to My Workspace to easily locate new and updated orders that need to be processed. In the ‘Order Summary’ section, make sure that the drop down list is set to Purchase Orders. 13 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Purchase Orders – List Page Each row on the list page represents a line from a purchase order. The order lines can be processed directly on the list page. Or click on an order number link to go that order’s details. Use the ‘configurator’ icon to change the layout of the page. 14 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Select the line(s) to be accepted, and then click Accept. Note: If any data fields are modified for a line, but the line is ‘Accepted’, then the system assumes Rolls-Royce’s request was acceptable and will overwrite the changed data back to match the request from Rolls-Royce. Accept an Order Line 15 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Response Is Sent Automatically There is no longer a ‘Send’ button. An order response is sent to Rolls-Royce automatically when the line’s state moves to ‘Accepted’, ‘Acknowledged with Exceptions’ or ‘Rejected’. 16 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Status Update on My Workspace 17 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Batch Processing – Accept Orders A supplier with many routine orders can select most of them from a list, ‘batch accept’ them and then address the purchase orders that require more attention. Always complete actions (Accept, Acknowledge with Exceptions, or Reject) for the items on THIS page before working on the NEXT page. Changes to the current page are lost if the action was not completed. 18 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Supplier Message – Required If Cannot ‘Accept’ 19 This used to be called ‘Note to Buyer’ and serves the same purpose. Click the Supplier Message link to open a pop-up window and create a message >‘Create’ = there is currently no message >‘View’ = a message was entered for this order (can be modified) Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Supplier Message The ‘Supplier Message’ field is required for any order line that is not accepted. Basic punctuation characters can be used, but avoid using special letters/characters. The maximum character limit is Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Acknowledge with Exceptions – from List Page 21 Order lines can be processed with ‘Acknowledge with Exceptions’ from a list page Make sure the ‘Supplier Message’ is populated FOR THE FIRST ROW OF THAT ORDER. Note: If a row has ‘None’ in the Supplier Message field, you must enter a Supplier Message and apply ‘Acknowledge with Exceptions’ to the first row listed for that order at the same time. Otherwise, click into the details page and only process the subsequent line. Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Acknowledge with Exceptions – Split Quantity 22 It is possible to divide up the request quantity into multiple deliveries – but the total of the promise quantities should equal the request quantity. Note: It is recommended to go to an order details page (not the list page) to use ‘Add Promises’. Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Acknowledge with Exceptions – Add Promises 23 Select one order line and click Add Promises Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Example – Add Promise to Split Quantity 24 Select the number of rows (promises) that need to be added for the request. Enter ‘Promise Delivery Date’ and ‘Promise Qty’ information Click the link to create a ‘Supplier Message’ Then click Save The combined promise quantities must equal the request quantity. Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

‘Acknowledge with Exceptions’ with Two Promises 25 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Purchase Order Changes 26 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Purchase Order Changes If you responded to a purchase order with ‘Acknowledge with Exceptions’, Rolls-Royce will receive your response automatically and be able to review it. If your exceptions are agreeable to Rolls-Royce, a purchase order change (POC) should be issued by Rolls-Royce. A POC may also be issued for a business change to an order, or to correct an error on the purchase order. You can respond to a POC with ‘Accept’, ‘Reject’ or ‘Acknowledge with Exceptions’. 27 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Multiple POC Revisions It is possible for Rolls-Royce to send one or more POCs to an order before you have responded to it. You will always see the latest information on the purchase order. If you HAVE responded to the order, your responses are retained. You then have the option to update against your own response (and based on the changes on the POC). 28 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Purchase Order Changes 29 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Purchase Order Changes 30 On the order list page and order details pages, selected data fields that have been updated are highlighted in yellow. These fields are ‘Revision’, ‘Delivery Date’, ‘Request Qty’ and ‘Unit Price’. Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Purchase Order Changes - Highlighting 31 On the order details page, the previous value is also shown for the ‘Delivery Date’, ‘Request Qty’ and ‘Unit Price’. Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Purchase Order Changes – Full Print 32 The ‘Full Print’ version of the order shows with red asterisks all of the fields that changed. It compares the current version to the last order version that had a supplier response. If there is no supplier response yet, it compares the original order to the current version. Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

View History of Changes 33 In addition to the full print, a broader tracking of the order’s changes can be found with the ‘View History’ functionality in SCP-RR. The ‘View All History’ link at the top of the order tracks changes for the entire order. The ‘View History’ button at the bottom tracks changes for one line that is selected. Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Sample – View History 34 In the ‘View History’ pop-up window, the left columns show the date and user that made a change to the order - this tracks changes by the supplier, Rolls-Royce and the system. The columns on the right show which field was changed, the old value and the new value. Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Closed or Cancelled Orders 35 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Closing an Order 36 Order lines can be “Closed” by a purchase order change from Rolls-Royce. If a line is moved to ‘Closed’, it can no longer be invoiced in SCP-RR. Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Cancelled Orders Cancelled lines will trigger an notification to the supplier. Cancelled lines are shown in red strikethrough font in SCP-RR. If the entire order is cancelled, the ‘Order State’ moves to cancelled as well. No supplier response is required for cancelled lines. (ProcurePass suppliers – see next slide.) 37 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Cancelled Orders – By Using Quantity of Zero If Rolls-Royce expects written confirmation through SCP-RR that an order line was cancelled, the order line will have a quantity of zero and the state will be ‘Updated’ instead of ‘Cancelled’. The supplier should accept the updated order. Shipments and Invoices cannot be created for order lines with a quantity of zero. 38 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Order Buttons Are Missing… For purchase orders, ‘Cancelled’, ‘Archived’ and ‘Closed’ are end states. This means that when any lines have moved to these states, some of the action buttons are no longer available. Use the filter feature to only display ‘New’ or ‘Updated’ lines to respond to those lines. You can also filter to ‘Accepted’ or ‘Acknowledged with Exceptions’ lines to create invoices for lines. 39 Open the ‘State’ dropdown list Click on the state to filter to those lines Click the Filter button Open the ‘State’ dropdown list Click on the state to filter to those lines Click the Filter button Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

40 Outline Agreements – View and Accept Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Schedule Agreements = Outline Agreements in SCP-RR The business process that has been used by Rolls-Royce for schedule agreements is now being managed in SCP-RR as ‘Outline Agreements’ An ‘Outline Agreement’ is an agreement for the purchase of an item over time. Go to ‘Outline Agreement’ on the navigation tree. On My Workspace in the Order Summary section, make sure ‘Outline Agreement’ is selected from the drop down list. 41 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Benefits of Outline Agreements in SCP-RR ‘Schedule agreement’ documents from Rolls-Royce are attached for review It is easy to search and find an outline agreement Your response and any Rolls-Royce changes are tracked in SCP-RR Rolls-Royce also has access through SCP-RR to the same information Notifications are provided >Reminding suppliers to respond >Reminding Rolls-Royce that an agreement will expire 42 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Business Process 1.Outline Agreement: Rolls-Royce publishes outline agreements to their suppliers, with the schedule agreement attached. 2.Outline Agreement Response: Suppliers must respond within 14 calendar days 3.Outline Agreement Changes: Rolls-Royce may publish changes or cancellations to previously published outline agreements. Suppliers are typically expected to respond. Outline Agreement Responses Outline Agreement Rolls-Royce Supplier 1 2 Outline Agreement Changes or Cancellations 3 43 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Actions for Outline Agreements New – outline agreements are loaded into SCP-RR in a New state, with all line items in a New state. Accepted - Suppliers may only accept outline agreements. Other responses, such as ‘Reject’ should be done outside of SCP-RR. Updated – this is a state change by Rolls-Royce, to indicate a change to the outline agreement. Cancelled – Rolls-Royce can move an outline agreement line to the ‘Cancelled’ state. The supplier is expected to respond. Closed – Rolls-Royce can move an outline agreement line to the ‘Closed’ state. Archived – any outline agreement line that has been ‘Accepted’ or ‘Closed’ and has not been updated in 120 days will move the ‘Archived’ state. 44 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

View Outline Agreements 45 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Outline Agreement Structure The outline agreement has information at two levels: >Header >Agreement line items Each line item represents an item to be purchased. It does not provide the release schedule for the item, that is handled through a separate ‘release’ process. Outline Agreement Line Item Header Line Item An outline agreement defines the agreement for an item to be procured from a supplier. It usually contains the start and end date for the agreement, total quantity and the price. 46 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

View Outline Agreements Outline Agreements are listed on My Workspace, or by going directly to the summary page On the navigation tree, go to Order Management  Outline Agreement  Summary Click the number link for ‘New’ or ‘Updated’ to work through agreements that need responses 47 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

View List of Outline Agreement Lines The lines can be ‘Accepted’ from this page, or click on an Order Number link to view details. 48 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

View Outline Agreement Details The header section provides some general information related to the agreement. The agreement lines in the bottom section show details on the items ordered, the price and the validity dates for each item. (Tip: Click on the configurator icon to reformat the page.) 49 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

View Attachment to Outline Agreement For most of the outline agreements, Rolls-Royce will attach their standard ‘schedule agreement’ form to the SCP-RR outline agreement. To view the Rolls-Royce agreement, click the paperclip icon next to the Attachment field. 50 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Print Attachments Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Respond to Outline Agreements 52 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Respond to an Outline Agreement You will receive an alert when you have new outline agreements in SCP-RR. A response is expected within 14 calendar days of the ‘Order Created’ date. To accept the outline agreement, select all of the rows and click Accept. 53 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

An ‘Accepted’ Outline Agreement Once an outline agreement has been accepted, the ‘Order State’ and the ‘Line States’ will change to Accepted. The response is automatically sent back to Rolls-Royce. 54 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Supplier Message – Currently Not Used IMPORTANT: The ‘Supplier Message’ field is currently not visible in Rolls-Royce’s system. To modify an outline agreement, contact the buyer outside of SCP-RR. 55 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Outline Agreement Changes If Rolls-Royce needs to change an outline agreement, the status will be changed to Updated in SCP-RR. Updated outline agreements should be ‘Accepted’ just like ‘New’ agreements. 56 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Outline Agreement Alerts The ‘Supply Network Exceptions’ section in the top right corner of the My workspace page is a quick way to locate outline agreements that require attention. Click on a number link to go to a list page of new, expiring or cancelled agreements etc. 57 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Locate a Specific Outline Agreement If you receive an alert that an outline agreement was cancelled, use My Workspace or the Summary page to quickly view ‘Cancelled’ agreements. Also, the search fields in the top of the Summary page can be helpful to locate an archived outline agreement. Enter search criteria and then click on the ‘Archived’ link at the bottom. 58 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Shipments and Invoices for Outline Agreements For shipments and invoices against outline agreements, you should follow the same process that you use with Rolls-Royce today (not through SCP-RR). If you also receive purchase orders in SCP-RR, then you may be expected to ship or invoice against them in SCP-RR. For all business processes, Rolls-Royce will determine and communicate which process workflows should be handled in SCP-RR. 59 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

View Goods Receipts 60 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Checking Receipt Status in SCP-RR Rolls-Royce publishes the status of goods receipts to SCP-RR on a regular basis. You can quickly see a summary of recent activity by going to the My Workspace (a dashboard view of information). Or you can use SCP-RR to check the status of a specific transaction with Rolls-Royce. A summary of data can also be downloaded from SCP-RR for your use. The information is ‘view only’. Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential 61

Goods Receipt - States Received – goods receipts are loaded into SCP-RR in a ‘Received’ state, with all line items in a ‘Received’ state. Archived – a receipt automatically moves to the ‘Archived’ state in SCP-RR if it has not been modified in 120 days. Other states not being used: Received - Referenced – only used by Rolls-Royce Marine. Cancelled – currently not used. 62 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Locate Goods Receipts Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential To view goods receipts, go to My Workspace on the left navigation tree Scroll down to the Receipt Summary section Click on the number link for the Received row 63

View Goods Receipt Details Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential The list page shows each item that was received (indicated by Part Number) over the last 120 days. By scrolling to the right, you can see the ‘Receipt Date’ and ‘Receipt Qty’ for each item 64

View Goods Receipt Details (Continued) Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential For additional reference information, you can scroll all the way to the right and see the ‘Supplier Item Number’, ‘Order Number’, ‘Packing Slip Number’ and ‘ERP Doc Number’. To see even more details, click on the Receipt Number link in the second column. This directs you to the Receipt details page. 65

Download Goods Receipts for Reference From the list page, it is easy to download the Goods Receipt information in an Excel format From the ‘Received’ link on My Workspace, go to the list page Click the Download Receipts button (this selects across all pages) Click Next and then select to ‘Open’ or ‘Save’ the file 66 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Example of Download (from List Page) 67 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential Since the data was downloaded from the Internet, you might need to click the “Enable Editing’ button at the top of the Excel sheet before you can edit the Excel data.

You can modify the layout of the download file – i.e. data fields to include and in what order. After clicking the ‘Download’ button, you will see the Select Document Type pop-up Use the drop down for ‘Download Settings’ to select Create My Setting… Note: Once a setting is saved, it will appear on this list in the future and can be reused. Modify the Download Format 68 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential Use left/right arrows to move data fields to the ‘Download Fields’ box Use up/down arrows to edit the order across the Excel spreadsheet Then determine the sort order When finished, enter a name for the saved setting, click Save As and then Update.

Locate a Receipt by Searching Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential 69

End: Purchase Document Management 70 Copyright 2013 Exostar LLC. All Rights Reserved. Proprietary and Confidential