Procter & Gamble Raw & Pkg Material Carrier Procedures

Procter & Gamble is in the process of making the transition to a new integrated business software, (SAP) which requires additional data on our freight invoices for raw and packing materials. At this time, finished product shipments from our plants to warehouses or customers will not be affected by this transition. The overall transition to this new software will take place over an extended period of 12 months.

Background

A new freight reconciliation process has been established as part of our migration to the SAP software. In order to validate freight charges, we will use data compiled at the time of delivery and match it to the freight invoice. There are two major changes in this reconciliation process versus our current approach:

1. The freight invoices will be matched to a goods receipt prior to payment, where in our current process, they are paid and then reconciled at our plants.
2. In addition to the current data fields you submit on your invoice, we must now have the purchase order number , some times referred to a schedule agreement number, to complete the match process.

All invoices will continue to be sent to Commercial Traffic in Cleveland, Ohio, who will remains our freight payment vendor, except for special service invoices that are explained below.

Request of our carriers – Please read carefully!

Begin immediately to submit all purchase order numbers that are received on the bill of lading from our material suppliers. For invoices presented in paper form, begin providing the purchase order number clearly marked on your freight invoice.

For invoices submitted electronically, begin collecting this data from the bill of lading and transmit to us in the N9 segment with a PO qualifier. (Note: this does not replace the bill of lading number contained in the N9 segment, but is in addition to it.) More detailed instructions are available to you in your P&G EDI Implementation Guide under the section 210 Inbound.

The purchase order number (schedule agreement number) has a unique format that will help you with identification. It is 10 numeric characters and begins with the digit 4 or 5. Unfortunately, this format will only exist for those plants that have converted to the new SAP software. You will therefore encounter purchase order numbers with other formats for the plants that not transitioned. Please begin to send all purchase order numbers, regardless of their format, as part of your invoices.

Accessorial Charges – New Information – Please read carefully

Attached is an updated list of all the accessorial codes currently being used for Procter & Gamble. The list includes the accessorial code, description, line haul or service PO and where the bill should be sent. Any accessorial code that can be billed to Commercial Traffic, can be added to the bill for the line haul delivery. All other accessorial bills must be billed separately and addressed to either the site where the services occurred, Attention Freight SPOC or to your transportation purchaser. Commercial Traffic cannot process these accessorials with the pre approval provided by these

We will begin monitoring your compliance with this request in mid-March and provide you with feedback on any gaps in the data. If you need further clarification or support for issues relating to EDI, contact Pat Crossty at 513-774-1258. For general information regarding the overall process please contact Dawn Kennedy at 513 774-1574 or the undersigned at 513-774-1970.

Sincerely,
Charles R. Feldman
Inbound Distribution Manager