The Kroger Co. Ariba Purchase OrdersandInvoicing rules andrequirements

The Kroger Co. has implemented a procurement system named ePRO that will be used for the purchasing of store expense and equipment items. The Ariba Supplier Network will be used by The Kroger Co. to send purchase orders and to receive invoices from suppliers. However, it is very important to understand that this does not replace our current transmission method for our Warehouse Operations or Facility Maintenance (Viryanet). If youshouldhaveanyquestions regardingthistransitionand whois impacted,.

Thisdocumentwillclearlydefineourtypesofpurchaseordersthatwillbesentthroughthe AribaSNas wellastherequirementsforE-InvoicingviatheAribaSN.E-Invoicingwillonlybeusedforcertainpurchase ordertypes,so itis veryimportantthat suppliersfullyunderstandthisdocument.

Purchase Orders

Foreachof thesetypes,Krogerwillbesending:

  • Neworders
  • Change/ Cancelorders
  • Non–Catalogor AdHocitems
  • Orderswithattachments

***Everysuppliermustbeabletosupporteachoneoftheseordertypes.***

ForallpurchaseordersreceivedthroughtheAribaN Network,Krogeris requiringallsupplierstoprovide theOrderConfirmationandAdvancedShipNoticetransactions.Thesemaybesentelectronically usingtheAribasupportedConfirmationRequestandShipNoticeRequestcXMLorgeneratedmanuallyviasuppliersaccountonAribaSN.

***ThesamplePO presentedbelowis justasample.Thereareothervariationsof Purchaseordersthat Krogerwillbesending.Forinstance,KrogerwillalsobesendingMultiShipTo locationorders.Forthese particularorders,thelinelevelinformationwillcontaintheshipto informationandothernecessary informationassociatedtoeachlineitem.It isimportantforsupplierstorecognizetheseordersandtopay closeattentiontothelinelevelinformation.

SampleCapitalPurchaseOrderHeaderLevelInformation

A:PurchaseOrder#-Thismustbe identifiedonallinvoices.

B: Comments – Comments will either be at the header or line level. Comments may inform suppliers of any special instructions concerning the order.

C: Other Information:

  • Requestor–Nameof personwhorequestedtheorder.Phonenumberofpersonwho requestedtheorder.If supplierhas questionsregardingtheorder,theyare instructedto callthispersonatthephonenumberlistedbelow.
  • RequestorPhoneNumber–Phonenumberofpersonwhorequestedtheorder. Department–Krogerdepartmentthislineitem is associatedwith.
  • Facility–Krogerlocationof this lineitem.
  • AssetLocation–Krogerassetlocationcodeforthisitem.
  • ProcurementSpecialist–CorporateBuyerassociatedtothislineitem. ProcurementSpecialistPhoneNumber–Phone#forCorporateBuyer.

D: Ship to Address–Addresswheretheorderwillbeshipped. Thisinformationcanbeattheheader levelorthelinelevelinformation.

E: Bill To–TheBillToiswheretheinvoicemustbesent,unlesstheinvoiceisbeingsubmitted electronicallyvia AribaSN.

F: Deliver To– Thisfieldcontainsthe delivertoinformation. Itmaybeaperson’sname,storedepartmentorotherinformationthatshouldbe includedontheshippinginformation

Sample PurchaseOrderLineLevelInformation

A:Line Items–Line items / line # contains the Supplier Part ID, (information comes from catalog or non-catalog item), Quantity ordered, Unit of Measure, Description of item, Ship to Arrive Date, and price for the line item.

  • Ship to Arrive Date: This is the date the item must arrive at the destination and not earlier. If Ship to Arrive date is blank, please ship items at the standard rate without any expedited shipping charges.

B:Other Information:

  • Requestor–Nameof personwhorequestedtheorder. If supplierhas questionsregardingtheorder,theyare instructedto callthispersonatthephonenumberlistedbelow.
  • RequestorPhoneNumber–Phonenumberofpersonwhorequestedtheorder.
  • Department–Krogerdepartmentthislineitem is associatedwith.
  • AssetLocation–Krogerassetlocationcodeforthisitem.
  • ProcurementSpecialist–CorporateBuyerassociatedtothislineitem.
  • ProcurementSpecialistPhoneNumber–Phone#forCorporateBuyer.
  • PRNo:-Purchaserequisitionnumberthatis associatedtotheorder#.

Electronic Invoicing

Electronicinvoicesmustbe sentvia AribaNetworkforallPurchaseOrders.Thisportionofthedocumentwillexplain thedetailsoftherulesandrequirementsforsubmittinginvoicesthroughtheAribaSN.

TheAribaSNwillrejectinvoicesunderthefollowingconditions:

  • Invoicesthatdonotmeetthedefinedspecificationsoraremissingrequireddataelements.
  • InvoicesgreaterthantheNetworksupportedfilesizeof 4MBorcontaininggreaterthan1,000 lineitems.
  • Invoicesthatfailto validateagainsttheDocumentTypeDefinition(DTD).

Inadditiontotheabovenetworkvalidationrules,invoiceswillalsorejectontheAribaSNunderthe followingcriteria.

  • Invoiceswithtaxorshippingspecifiedatthelinelevel;Krogerrequirestaxandshippingatthe header/summarylevel
  • InvoiceswhichdonothavetheShipFromaddressesattheHeaderlevel
  • Non-POinvoices
  • PCard/CreditCardorders
  • Back-datedinvoicesolderthan1 daypriortoinvoicepostdate
  • Re-useof invoicenumbers
  • Invoiceswithachangeincurrencyforunitprice
  • ChangeinUnitPrice
  • ChangeinUnitofMeasure(UOM)
  • Quantitieson invoiceexceedsthoseonpurchaseorders
  • Lineitem subtotalsoninvoicesexceedthoseonpurchaseorders
  • Invoicenetamountsexceedinvoicesubtotal
  • Additionalline itemsontheinvoicegreaterthanoriginalPO
  • Changeinpartnumber
  • InvoiceswithachangeinShipTofrom what was onthePO
  • InvoiceswithachangeinBillToInfofrom whatwasonthePO
  • HeaderlevelCreditMemoandDebitMemo
  • Invoicemissinglineitem description
  • Invoicemissingbill-toaddress
  • Invoicemissingremit-toaddress

TaxRequirements

All Kroger Ariba purchases/invoices are to be processed through The Kroger Co. procurement company named “KPS, LLC” EIN 35-2476494. All purchases by KPS, LLC are made for resale and will therefore be exempt from Sales Tax. Under this process KPS, LLC will collect applicable sales tax from The Kroger Co. and its subsidiaries upon charging the companies for purchases through the procurement company.

RemitTo AddressInformation

Remit-ToAddressis requiredon all invoices.

ShippingAddress

Ship-toandShip-fromaddressinformationis requiredonall invoices.

*Shiptocodes willbesentonthePurchaseOrderattheheaderlevelor lineitem level.

ShippingAmount

Ashippingamountis requiredattheheaderlevel

Theshippingamountshouldbe zeroifnoactualchargesaretobe incurred

SpecialHandling

  • Krogerwillnotacceptspecialhandlingcharges.ThesechargesshouldbeincludedintheShippingAmount.

AribaSNInvoiceStatusUpdates

Supplierswillbeabletocheckthestatusoftheelectronicinvoices.Krogerwillsendthefollowing standardstatusupdates:

  • Processing–Theinvoicehasbeenreceivedby Kroger,buthasnotyetbeenapprovedor rejected.
  • Approved(orReconciled)–allamountsintheinvoicehavebeenmatchedagainst amountsinthepurchaseorder.
  • Rejected–Theinvoicefailedtoreconcile.Krogeris rejectingtheinvoice.TheCommentselementshouldcontaintextexplainingwhytheinvoice wasrejected,andtheactionsthesuppliershouldtake.Supplierscanviewcommentsexplainingwhytheinvoice was rejectedbyaccessingtheinvoicefrom theirAribaSNOutboxandclickingontheHistorytab.Supplierscanalsoconfiguretheiraccounttoreceiveinvoicestatusnotificationsvia emailontheManageProfile>EmailNotificationspageoftheiraccount.Supplierscanresubmitacorrectedinvoiceusinganewinvoicenumber.
  • Paid–Theinvoicehasbeenpaidby Kroger.

The Kroger Co. Ariba Purchase Order and Invoicing RulesUpdated September 23, 2014

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