SAP Oil Chapter 1
Short Description
SAP Oil Chapter 1...
Description
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([FKDQJHV(;*DVSDUWRI ,62LO'RZQVWUHDP +LJK/HYHO6XPPDU\ The objective of the Exchanges function category within R/3 IS-Oil Downstream is to build on the functionality within the Core SAP R/3 product to enable the processing and management of exchange agreements between oil companies involved in downstream activities. The IS-Oil System provides: q
Support for a company using SAP-System R/3 to exchange products with another company to their mutual benefit.
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Capability for maintenance of exchange inventory positions. It is possible to monitor the exchange position for a product, agreement or exchange partner. It is possible to view the balance to-date for each agreement and to view the movement details that have affected that balance.
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Pricing is enhanced to handle exchange fees and to allow fees to be maintained or revalued at all stages in the sales or purchasing process flows.
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Capability to have invoicing at specified intervals and to net those A/R and A/P invoices for: m Exchange fees Product value m Excise taxes and VAT m
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Management of global quantities and prices on an annual contract while allowing monitoring of exchange position and volumes on a periodic (e.g. monthly) basis.
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Exchanges and swaps for like and unlike products and location.
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Integration into the Transportation and Distribution functionality as of release 1.0D.
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Checks and controls over product lifting entitlements.
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Capability to produce an exchange statement detailing the exchange activity for a period.
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Capability to assign a base product to individual items (subproducts) in an exchange to allow the exchange to be monitored at the base product level.
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.H\)XQFWLRQ%HQHILWV The integration of Exchanges functionality within the Core SAP System allows the oil company to manage exchange balances on a timely and accurate basis by ensuring data integrity, through one time data entry, between Exchanges and Inventory Management, Financial Accounting, Order and Delivery Tracking and Invoicing. The specific benefits of the Exchanges functionality are:
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Online tracking of Logical Inventory Balances for pure exchanges - by automatically updating the logical inventory balance whenever a movement is posted against an exchange and providing online transactional display, the system allows the user to view and manage exchange positions from a quantity viewpoint.
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Online automation and integration of exchange accounting provides the foundation for allowing the oil company to monitor and manage the profitability of its exchange business on a timely basis.
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Lifting controls at the sales and purchase outline agreement level within an exchange contract allow the credit exposure to a particular exchange partner to be accurately managed. These controls are in addition to the financial credit limit checks which could also be enforced.
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By providing flexibility in terms of the range of types of fees and differentials through the use of price condition techniques and by providing current exchange balances, the system allows the oil company to be responsive to market forces in terms of the deals it can negotiate and manage with exchange partners.
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Valuation and revaluation of logical inventory enables the system to automatically manage the financial accounting aspects of “pure” exchanges. The system is therefore able to account for “Logical Inventory Adjustments”, logical inventory clearances and to capture the financial implication, loss or gain, associated with these transactions.
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.H\)XQFWLRQ%HQHILWV The integration of Exchanges functionality within the Core SAP System allows the oil company to manage exchange balances on a timely and accurate basis by ensuring data integrity, through one time data entry, between Exchanges and Inventory Management, Financial Accounting, Order and Delivery Tracking and Invoicing. The specific benefits of the Exchanges functionality are:
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Online tracking of Logical Inventory Balances for pure exchanges - by automatically updating the logical inventory balance whenever a movement is posted against an exchange and providing online transactional display, the system allows the user to view and manage exchange positions from a quantity viewpoint.
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Online automation and integration of exchange accounting provides the foundation for allowing the oil company to monitor and manage the profitability of its exchange business on a timely basis.
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Lifting controls at the sales and purchase outline agreement level within an exchange contract allow the credit exposure to a particular exchange partner to be accurately managed. These controls are in addition to the financial credit limit checks which could also be enforced.
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By providing flexibility in terms of the range of types of fees and differentials through the use of price condition techniques and by providing current exchange balances, the system allows the oil company to be responsive to market forces in terms of the deals it can negotiate and manage with exchange partners.
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Valuation and revaluation of logical inventory enables the system to automatically manage the financial accounting aspects of “pure” exchanges. The system is therefore able to account for “Logical Inventory Adjustments”, logical inventory clearances and to capture the financial implication, loss or gain, associated with these transactions.
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.H\,62LO)XQFWLRQV6XSSRUWHGE\WKH 5,62LO'RZQVWUHDP(;*&RPSRQHQW An exchange agreement is represented within IS-Oil Downstream by the assignment of SAP R/3 sales and purchase outline agreements under an exchange header. This is illustrated in the figure below.
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Note that: q
Oil company 1 is a SAP IS-Oil user with an exchange partner; oil company 2
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It has entitlement to lift product at the oil company 2 location Y
The following Exchange functionality is provided by the Exchanges category within R/3 IS-Oil Downstream System:
&UHDWLRQ0DLQWHQDQFHRI([FKDQJH$JUHHPHQWV Within the oil industry an exchange is an agreement between oil companies to allow lifting of product at one time and location in exchange for entitlement to lift product at another time and location.
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R/3 IS-Oil Downstream supports the linking of entitlements to lift product from an exchange partner (purchase agreement) and entitlements of the exchange partner to lift product from the oil company (sales agreements) under an exchange agreement. It is possible to define lifting and receipt entitlements at multiple locations within the same exchange agreement. It is also possible to define multiple agreements at the same physical location. For this reason, R/3 IS-Oil Downstream offers the possibility to explicitly state, or to select via a pop up window, which purchase agreement should be used to supply product to an external customer.
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Definition of fee types and rates - Within Exchanges, many different types of fees are encountered. The R/3 IS-Oil Downstream component incorporates price condition techniques into the definition of fee types. This allows the user, or system configurer, to define the combination of circumstances (e.g. method of delivery, location, exchange type etc.) upon which the fee rate will depend for a particular fee type.
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The system also allows the user to define the fee rate for each combination of circumstances encountered and provides the option to propose new values for fees, based on up-to-date condition record values. The effective date range for each fee is user definable. Assignment of fees to exchange agreements - The fees are assigned to the individual entitlements to lift product, i.e. within the line items of the individual sales and purchase agreements assigned to the exchange contract.
This level of granularity allows maximum flexibility in terms of fee assignment within an exchange contract.
/LIWLQJ&RQWUROVDQG&KHFNV Controls by contract - Within a particular exchange agreement, it is common to schedule the volumetric entitlement to lift product, especially on the exchange partner side, into periodic quantities.
For this reason, a Quantity Schedule is created at the level of the line items within the sales and purchase agreements. This enables the user to schedule the entitlement quantity into freely definable periods (usually monthly) over the length of the agreement. This control is invoked when attempting to create call-offs (nominations) against the purchase or sales agreement.
4XDQWLWDWLYH7UDFNLQJRI([FKDQJH%DODQFH R/3 IS-Oil Downstream tracks exchange balances by product, exchange receipts minus exchange deliveries, at the individual exchange agreement level. The exchange balance is updated real-time and is available on-line. This functionality is integrated with the standard SAP R/3 System material movement transactions and is therefore seamless to the user.
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)LQDQFLDO0DQDJHPHQWRI([FKDQJH$JUHHPHQW Accounting for Fees - The user can specify by exchange type whether fees should be invoiced, or netted, independently of how the material price should be treated. In the oil industry, it is common to invoice for fees and not to invoice for material cost, i.e. a “pure” exchange where fees are invoiced.
When invoice matching for purchase agreements, the system allows the user to match fees both at the summary level and at the individual fee line item level and automatically posts any matching differences back to the appropriate account as gains or losses. Accounting for Materials - As with fee accounting, the user can specify by exchange type whether the material cost should be invoiced, netted, or neither (a pure exchange). In the case of non-invoiced exchanges, the exchange balance is treated as “logical” inventory. Accounting for Taxes - It is common practice in the oil industry to invoice and be invoiced for excise taxes receivable and payable due to movements against exchange agreements even in the case of pure exchanges where the material cost is not invoiced. R/3 IS-Oil Downstream therefore allows the user to define for pure exchanges whether the excise duty payable or receivable will be invoiced.
/RDG%DODQFLQJ As of release 1.0D the R/3 IS-Oil Downstream component allows the user to assign a purchase contract or call-off for the supply of product against a customer order. The purchase contract or call-off can be explicitly assigned when the delivery note is scheduled (as described above).
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If the contract is not explicitly assigned, then the system displays a list of available contracts when the delivery note is loaded (issued to the customer). This transaction automatically ensures that the quantity called-off and received against the selected purchase contract is equal to the quantity issued against the customer delivery.
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([FKDQJH$JUHHPHQW1HWWLQJ It is common for oil companies not to invoice an exchange partner after each individual movement against a particular exchange. Such exchange types may be netted, i.e settled periodically. R/3 IS-Oil Downstream allows the user to define for an exchange type whether or not the exchange should be netted. Periodically the payables and receivables can then be netted and only the net balance posted to the exchange partner account. This can then be invoiced or paid as required.
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9DOXDWLRQRI/RJLFDO,QYHQWRU\ When exchange balances are built up against “pure” exchanges, it is usual to value the assets and liabilities associated with the goods movements as if they were actual inventory for financial accounting purposes. The reasoning behind this is that the payable or receivable in the case of pure exchanges is a quantity of product and not a financial amount. Under R/3 IS-Oil Downstream the system records and tracks the value of logical inventory at the prevailing inventory carrying price when the material movement was created. The system ensures that the integrity between the quantity balance owed or owing, i.e. the quantity of logical inventory, and the financial value of the logical inventory is always maintained. If no own inventory is carried at a location, the receivable and payable volumes can be valued at the current value at a “reference plant”, which is normally a nearby plant at which you hold inventory. The system supports both standard priced and moving average priced inventory valuation strategies.
5HYDOXDWLRQRI/RJLFDO,QYHQWRU\ Oil companies often value physical inventory using a standard cost that represents the calculated production cost. However, this production cost is recalculated on some periodic basis. It is therefore a requirement that the oil company can change the inventory carrying price of their physical inventory. If logical inventory is to be valued as if it were physical inventory, then the carrying cost of the logical inventory may also need to be changed. IS-Oil functionality allows the user to change the inventory carrying value of the logical inventory and automatically records the loss/or gain from revaluation to P&L.
/RJLFDO,QYHQWRU\$GMXVWPHQWV Oil companies manage their logical inventory balances by periodically posting exchanges of a quantity of product owed for a quantity of product owing. A negotiated payment or receivable may or may not be included in the transaction. It is also possible to balance an exchange in which different products have been exchanged against different volumes, e.g. 100,000 barrels of regular unleaded for 80,000 barrels of premium unleaded. The system supports this type of transaction both at the exchange agreement level and across exchange agreements for an exchange partner. The system automatically updates the logical inventory balance and captures the resulting loss/or gain on the transaction.
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6XE3URGXFW%DVH3URGXFW)XQFWLRQV A base product can be assigned to each delivered product (sub product) within an exchange agreement. In this case the exchange balance is updated for the base product, and the base product price is used for the logical inventory posting as well.
5HSRUWLQJDJDLQVW([FKDQJHV The following reporting capabilities are included within the exchanges functionality under R/3 IS-Oil Downstream: Exchange Statement - The exchange statement is a document that can be generated and sent to the oil company’s exchange partner. It summarizes the exchange activity for a period, listing movements, financial transactions and exchange adjustments. It is a tool to aid in the reconciliation of an exchange with the partner. Exchange Balance - The user is able to report total liftings, receipts and balances against exchange agreements and to summarize this data by material, exchange type, exchange partner, exchange number and location. This functionality is mainly used across pure exchange types where it enables the user to track the logical inventory balance real-time and on-line. Exchange Movements - The system allows the user to display all physical movements of product against exchange agreements for a particular material. The list of movements displayed may be selected by several parameters including location, exchange type, exchange partner and method of delivery. Exchange Entitlement - Entitlement to lift product is defined as the open quantity against an exchange nomination, i.e. the open purchase call-off
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quantity for purchase agreements assigned to exchange contracts. The system allows the user to narrow the search of exchange entitlements for a particular product by location, exchange partner, method of delivery and exchange type. Matchcodes - Several matchcodes have been provided that can be used to select based on exchange related criteria, for instance: q
Purchasing/Sales contracts
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Purchasing/Sales call-offs
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Netting documents
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Delivery and goods movements
.H\,62LO)XQFWLRQV6HUYHGE\WKH&RUH56\VWHP This section summarizes the relevant functionality supported by the Core R/3 System. q
Creation of Exchange Partners
An exchange partner is represented by the linking of a customer and vendor account. q
Creation of Contract Outline Agreements
The creation of sales and purchase outline agreements is a capability of the standard system. This functionality is enhanced to allow the inclusion of fees, differentials and lifting controls. In addition to the basic outline agreement and order handling functionality, the Core R/3 System has the following capabilities within the exchanges area: q
Incorporation of Price Condition Techniques within Purchasing
The inclusion of price condition techniques within both purchasing and sales allows R/3 IS-Oil Downstream to use these techniques to define fees, and differentials, within exchange agreements. This base capability is enhanced to allow the user to specify the fee types to use within the line items of the purchase or sales outline agreement. Repricing functionality has been enhanced, particularly on the purchasing side, to allow fee values to be recalculated at each stage in the delivery/ receipt process.
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'HWDLOHG'HVFULSWLRQRI%XVLQHVV)XQFWLRQV6XSSRUWHG E\WKH5,62LO'RZQVWUHDP(;*&RPSRQHQW 2YHUYLHZRI([FKDQJH+DQGOLQJ This section describes the overall conceptual framework for the proposed R/3 IS-Oil Downstream component for handling exchange agreements. The section builds on the simple exchange business scenario introduced in the previous section and intends to set the functionality identified in this section in the wider context of the system functions as used in exchange handling. The section then describes the specific exchange functionality introduced in the previous section in greater detail.
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Exchange agreements are represented and handled by the assignment of sales and purchase outline agreements, allowing management of exchange deliveries and exchange receipts respectively to an exchange header. 00
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The system functions (see figure 1-9) that form a typical exchanges business cycle are: q
Create Exchange Agreement Header
In system terms, an exchange agreement header is a document linking one or more purchase contracts with one or more sales contracts. The process of exchange header creation is detailed in the section “Create Exchange Agreement Header”.
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Create Contracts (Outline Agreements) Create Sales Contacts - Agreements to supply specified amount(s) of product(s) within a specified delivery schedule. When an exchange related sales contract is created, the following can also be specified: m
Fees and differentials that apply to exchange deliveries (see also “Handling and Definition of Fees and Differentials”).
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Lifting controls that apply to the exchange deliveries at the contract level (see also “Lifting Controls and Checks”).
Create Purchase Contracts - Agreements to receive specified amount(s) of product(s) within a specified schedule.
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Define fees and differentials that apply to exchange receipts (see section “Handling and Definition of Fees and Differentials”)
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Define lifting controls that apply to the exchange receipts (see section “Lifting Controls and Checks”).
Create Call-offs Create Sales Call-off - This is the process of creating an actual sales order against the sales outline agreement (sales contract). The fees and differentials applying to the call-off are copied from the contract.
In order to schedule the deliveries into periodic quantities, it is possible at this stage to create further lifting controls for the deliveries against this call-off. Create Purchase Call-off - This is the process of creating an actual purchase order against the purchase outline agreement (purchase contract). The fees and differentials applying to the call-off are defaulted from the contract.
In order to schedule the deliveries into periodic quantities, it is possible at this stage to create further lifting controls for the deliveries against this call-off. q
Sales Flow
Create delivery notes. The delivery note indicates to the system: m Order item/product to be delivered
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Date to be delivered
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Location from which the delivery is made, i.e. the SAP delivering plant/ store location
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Quantity to be delivered - at this point quantities are checked to see that they do not violate contract or scheduled quantities.
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Post confirmed delivered quantity/create goods issue. m
Change the delivery note quantity to the confirmed delivered quantity.
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Create goods issue for the delivery note. This generates the required inventory accounting entries automatically.
Accounting for exchanges is detailed in the section “Financial Management of Exchange Agreement”. Create invoice (for invoiced partners). This process posts the invoice to the customer account and generates an entry in a file ready for printing. When using a billing due list, additional exchange-specific selection criteria are available to specify the range of documents relevant for invoicing. q
Purchase Flow Receive Goods - The following two scenarios are relevant to exchanges in this area: 1. Post Goods Receipt - In the simple case where oil company 1 takes ownership of the goods at the exchange partner location. 2. Perform load balancing - Where the purchase call-off is used to fill a sales delivery (to one of oil company 1’s customers) from the exchange partner location (as of Release 1.0D). Post Invoice Receipt (for invoicing partners) - This process posts the payable to the partners’ vendor accounts ready for standard system payments processing. At this time, the accrual generated at the time of posting a goods receipt is cleared.
For automatic creation of invoice verification documents, the Evaluated Receipt Settlement (ERS) process has been enhanced to handle exchangerelated transactions. ERS with Exchanges includes:
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Handling fees and repricing those fees
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Selecting goods receipt documents by exchange number or a range of exchange numbers
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Collecting invoice items by exchange number
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Split invoice verification
Netting
Where an exchange is flagged for netting, all the sales and purchasing invoices will be flagged as blocked for payment. The netting process allows those payables and receivables to be reviewed, selected or deselected and then cleared. The difference between the sum of values of the payables and the sum of the values of the receivables is posted as a single entry to either payables or receivables as appropriate. In movements-based netting, the system uses goods movements which reference the exchange agreement as the selection method for collecting receivables and payables.
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The exchange agreement header provides a framework to link one or more sales contracts with one or more purchase contracts (see figure above). When creating the exchange header the user must specify the type of exchange agreement that is being created. The system holds default parameters for the exchange type but these may be overridden by the user when the exchange header is created. The parameters identified at this stage are: q
The posting rules for the material - This is explained in the section “Financial Management of Exchange Agreement”
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The posting rules for the fees - see section “Financial Management of Exchange Agreement”
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The posting rules for the taxes
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Whether or not netting is performed and the Netting cycle - see section “Netting”
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The breakdown proposal for the quantity schedule
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Sub product to base product edit rules
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VAT on internally posted movements indicator
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Partner reference
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General purpose text
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Base location (for example specifying a point on a pipeline from which exchange differentials are calculated)
The posting rules for fees and materials determine how to accrue for payables on goods receipt and how to account for receivables on goods issue. The reason for this flexibility is that it is anticipated that an installation would use different accounting entries depending on whether the exchange movement is expected to be invoiced or merely carried forward as in a pure exchange. The separate posting rules for fees and materials allow them to be treated differently for accounting purposes where for example fees are expected to be invoiced and materials carried forward. In order to allow exchange header creation, a new transaction has been created. During creation of the exchange, the above entries are specified. The exchange agreement number may be numbered by the system (internally numbered), or numbered by the user (externally numbered). It is possible to assign sales and purchase contracts to an exchange header in two ways: q
Branch directly to the create sales and purchase contract transactions from the create/maintain exchange header transaction.
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Assign existing contracts to the exchange header from the maintain sales and purchase contracts transactions.
In either case, the system cross references the sales and purchase agreements to the exchange header by copying the exchange number and type into the
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sales and purchase agreements and prompts the user to specify any additional data required by an exchange. Moreover, it is possible to create an exchange agreement with reference to an already existing one. Sales and purchase contracts assigned to the referenced exchange agreement can also be selected for copying.
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+DQGOLQJDQG'HILQLWLRQRI)HHVDQG'LIIHUHQWLDOV IS-Oil supports the payment or collection of fees and differentials in addition to the value or quantity of product identified in the exchange.
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Definition of Fee Categories
A fee category is defined by the creation of a price condition record type. This enables the parameters upon which the fee rate depends to be defined when configuring the system. The existing Core System capabilities surrounding pricing condition records are retained. These are not detailed here but may be summarized as: q
Condition tables - Key structures for access of the fee condition records may be defined during configuration.
For example, it is possible to configure by specifying a price condition structure with these parameters in the key, a fee type that depends upon: m
Delivering location
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Exchange type
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Method of delivery
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Access sequences - If required, the oil company may define that a fee category has more than one key structure. In this case, it is necessary to define which should be used in preference.
For example, an individual fee may be defined within a key structure of: Location/Method of delivery/Exchange type
However, if the rate for this key is not found, then the company may wish to define that a generic rate for location/method of delivery should be used. Definition of Fee Rates
Within a fee type, the user is able to create condition records that specify the fee rate for the determining parameters and data range. This is illustrated by the figure below:
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Accounting for Fees
Accounting for fees is explained in greater detail in the section “Financial Management of Exchange Agreements”. Sales Side
On the sales side it is necessary to specify the fee revenue account to be used when invoicing or netting for the fees following exchange pickups by our exchange partner. It is possible to specify the fee revenue account to be used at the fee type level. Purchasing side
On the purchasing side, it is necessary to define whether a particular fee type is expensed or included in inventory on goods receipt. This is explained in more detail in the accounting section. It is possible to specify the accounting policy whether to expense or include the fee amount in inventory and the account to be used, if the fee is to be expensed, at the fee type level.
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Assigning Fees and Differentials to Exchange Agreements
The fees and differentials to be used are specified within the line items of the sales and purchase contracts that are assigned to a particular exchange agreement. This is illustrated by the figure below. When creating or assigning a sales or purchase outline agreement under an exchange agreement, the user is taken into a fee definition screen. The fees and differentials to be invoked when posting movements against the outline agreement must be specified. The system displays the currently applicable rates. Depending on configuration options the rates will be copied into subsequent documents with or without repricing. Again, depending on configuration options, the user may have the option to override these rates manually. IS-Oil supports the payment or collection of fees and differentials in addition to the value or quantity of product identified in the exchange. A series of indicators, called invoicing cycles, makes it possible to allocate different payment terms to the various pricing conditions (taxes, fees, etc.).
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/LIWLQJ&RQWUROVDQG&KHFNV Lifting Controls by Contract
The standard purchase and sales contract creation and amendment transactions were enhanced to allow the user to enter a “Quantity Schedule” whenever a contract is assigned to an exchange. The result of a typical sales contract creation transaction is shown in the figure above.
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The Quantity Schedule allows the user to schedule the sales or purchase outline agreement into periodic (usually monthly) parts. The breakdown is proposed from the exchange type but this default may be overridden by the user. In addition, the user may modify the scheduling periods manually as required. System calculated breakdown indicators are: q
Daily
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Weekly
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Monthly
If any of these parameters are chosen, then the system pro-rates the contract item quantity across the proposed periods. The system allows the user to
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amend the scheduled quantities for each period for the validity of the contract. The system performs various checks when a quantity schedule is created: q
Check that the total scheduled quantity is not greater than the contract quantity
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If the scheduled quantity is less than the contract quantity, then the user is warned
The scheduling periods must fall within the validity period of the contract The scheduled quantity in any period is the maximum permissible call-off quantity for the contract in the period. If the user attempts to call-off more than the permitted quantity in any scheduling period, then the system issues a warning message. However, the call-off may still be created. q
In addition to the quantity schedule checks, it is possible to specify whether it is permitted to over call-off against the contract item total quantity. Update of the Contract Quantity Schedule
The contract quantity schedules are updated whenever a call-off is created. The call-off quantity schedule is updated automatically when a delivery note or a goods receipt is posted. Lifting Controls in the Call-off
In similar fashion to that created in the contract, it is also possible to create a quantity schedule to schedule a call-off quantity into periodic quantities. The creation and validation are the same as for the creation of a quantity schedule within the contract. However, the call-off quantity schedule is validated to ensure that it falls wholly within a contract scheduling period, i.e. it is not possible to create a call-off schedule that crosses more than one contract scheduling control period. Clearly then, the delivery schedule for the call-off has to use a smaller period than the corresponding contract schedule. It is possible in the contract schedule to specify a proposed breakdown indicator for the call-off(s) (i.e. daily, weekly, monthly). If this has been specified, then the system automatically proposes a call-off schedule broken down into periods of this length and falling within the validity period of the relevant contract line. This can be overridden by the user if required. Update of the Call-off
The sales call-off quantity schedule is updated when a delivery note is created against the call-off. If the delivery note quantity is subsequently changed, the system does not update the call off quantity schedule. The purchase call-off quantity schedule is updated when the goods receipt is created. In addition, for purchase call-offs, the intended (from delivery note) field is updated when the call-off is assigned to the supply of a delivery note (see “Load Balancing/Rescheduling”). The quantity is transferred to the received field when a goods receipt is created against the purchase call-offs.
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Schedule Checking
The entitlement checking and schedule updating process relevant to delivery note creation is shown in the figure below. Clearly schedule checking only applies to call-offs where a quantity schedule is created. The system locates the call-off scheduling period corresponding to the requested delivery date and verifies that the requested delivery quantity is less than or equal to the available quantity for the period. If the requested quantity is greater than that available for the period then: The system will react in the way the user customized the quantity schedule message. There can be either no reaction, a warning or an error. The possibility to customize the System’s reaction applies to all respective messages of the quantity schedule for sales and purchase. Please see the update of the QS in the following figure. That is as well when the System checks the quantity of the QS.
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4XDQWLWDWLYH7UDFNLQJRI([FKDQJH%DODQFH The system keeps track of the exchange balance within a specific database (S036) that is updated whenever one of the following system events occurs: q
Goods receipt against an exchange agreement - for the actual received quantity
q
Goods issue against an exchange agreement - for the confirmed delivered quantity
q
Posting of a Logical Inventory Adjustment transaction
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The system therefore only updates the exchange balance when the physical movement of goods has occurred and the confirmed movement quantity is known, or when the logical inventory balance is updated within the Logical Inventory Adjustment transaction.
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The key to this database segment, which defines the lowest level at which the exchange balance is tracked, is: Client/Period/Material Group/Material/Plant/Exchange Partner/Exchange Type/Exchange Agreement Number/Base Product This allows the user to view the exchange balance at any higher level by summarizing the information held at this level (see “Reporting against Exchanges”). The update of S036 following goods issue is illustrated by the figure below.
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For each exchange agreement created in R/3 IS-OIL Downstream, financial accounting is governed by the posting rules defined for the fees, materials and taxes. These rules determine how to accrue for payables on goods receipt and how to account for receivables on goods issue. There are four key factors that can affect the type of postings that are made for an exchange: 1. Material posting rules - Internal/External 2. Fee posting rules - Internal/External 3. Fee accounting policy 4. Excise duty posting rules The default account processing with respect to the above is determined for each exchange type, but may be overridden by the user at the time of exchange header creation.
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q
The posting rules for the fees and material indicate whether to use the standard accounts for posting the receipts and deliveries of product (and therefore invoicing the exchange partner and being invoiced), or whether to use internal payables/internal receivables accounts. In this case it is a Borrow/Loan exchange agreement, so invoices are not created.
q
The separate posting rules for fees and materials allow them to be treated differently for accounting purposes. For example, in the oil industry it is common for fees to be invoiced (posted externally) and materials carried forward (posted internally) as in the case of a pure exchange.
q
If material is posted internally the excise duty posting rules can be either specified as posted externally (Invoice for Excise Duty is created) or internally (no invoice is created for Excise Duty).
q
The accounting policy for fees defined against purchase agreements within an exchange allows the user to define whether the fee should be expensed or included in inventory at the time of posting the goods receipt.
In the figure below a business scenario is shown for the following posting rules: q
Material internal
q
Fees external
q
Excise Duty external
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Accounting for Material
The user can specify in an exchange agreement whether material cost should be invoiced, or posted internally (not invoiced). In the case of non invoiced materials the exchange balance (quantity which is moved between the exchange partners) is treated as logical inventory and posted on internal accounts receivables and internal accounts payables. Sales Agreement (Goods Issue)
The goods issue automatically creates financial accounting entries to record the diminution of stock. 1. The product is expected to be invoiced - Standard accounting entries are posted. 2. The product is expected not to be invoiced - the internal receivables accounts is used as offset to the inventory account. 3. The product is expected to be netted. Create Financial Accounting Entries
The financial postings that occur in the goods issue stage for each of the above scenarios is indicated below. The key points to note are: q
The postings to the internal receivables account are not cleared by invoice issue or netting. The balance on the internal receivables account may be cleared down by, for example, a Logical Inventory Adjustment posting.
q
Where invoicing is expected to occur, the goods issue merely transfers the stock value from the inventory account (balance sheet) to the consumption account (P&L). No posting is made at this stage to recognize the exchange partner liability. This posting is made by the invoice processing function.
Financial Postings q
q
Product to be invoiced m
Credit - Stock (inventory account)
m
Debit - Cost of Goods Sold
Product not to be invoiced m
Credit - Stock (inventory account)
m
Debit - Internal Receivables account
Purchasing Agreement (Goods receipt)
The accounting entries on goods receipt: 1. To reflect the increase in inventory 2. To accrue for the liability to the supplier
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Create Financial Accounting Entries
The receipt of goods automatically triggers the required general ledger postings, however it is important to note the following: q
The inventory account for a particular material is automatically inferred from the material master details.
q
Material to be invoiced (externally posted)
q
m
Debit - Inventory account
m
Credit - GR/NI (Goods received/not invoiced) material clearing account (to be cleared by invoice receipt processing)
Material not to be invoiced (internally posted) m
Debit - Inventory account
m
Credit - Material Internal Payables account
Accounting for Fees
Within an exchange agreement, the user specifies whether fees should be invoiced or posted internally. These fee posting rules are independent of accounting for materials. The user can specify by fee type whether fees should be expensed or included in inventory for the purchase side and which revenue account is applicable in the sales side. Sales Agreement (Goods Issue)
The purpose of posting the goods issue is to record the actual quantity of product delivered to the customer. This process automatically triggers the required general ledger postings to reflect the issue of stock. Create Financial Accounting entries
The key points to note about posting fees during a goods issue are: q
There are no fee postings on goods issue unless the fees are internally posted, i.e. are not invoiced. If the fees are internally posted, then the system generates a fee posting to the fee internal receivables account and an offset to the appropriate fee revenue accounts.
q
The postings to the fee internal receivables account are not cleared by invoice issuing or netting.
q
The fee revenue account may be specified for each fee type.
Financial postings
Under R/3 IS-Oil Downstream, there are three scenarios to reflect the posting of fees during a goods issue: q
Fees to be invoiced (externally posted) m
q
Nothing done at time of goods issue, fee revenue account is posted by invoice processing
Fees not to be invoiced (internally posted) m
Credit - Fee Revenue accounts
m
Debit - Fee Internal Receivable account
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Purchasing Agreement (Goods receipt)
The purpose of posting the goods receipt is to record the actual value of product received from the supplier. This process automatically triggers the required general ledger postings to reflect the receipt of stock. The fee accounting policy is determined for each type and determines whether the fee is to be expensed or included in stock at time of posting the goods receipt. Note that the system therefore allows, within the same purchase order line item, that some fees should be expensed and some included in the inventory carrying cost. Create Financial Accounting entries
Under R/3 IS-Oil Downstream, these are the postings of fees during a goods receipt: q
q
Fee to be invoiced (externally posted) m
Debit - Stock or Fee expense account (depends on whether fee is to be expensed or included in stock at time of posting the goods receipt)
m
Credit - Fee clearing account (fees to be cleared by invoice receipt processing)
Fee not to be invoiced (internally posted) m
Debit - Stock or fee expense (depends on whether fee is to be expensed or included in stock at time of posting the goods receipt).
m
Credit - Fee Internal Payables account.
Invoice Verification
During invoice verification the system allows the user to edit fees both at the summary level and at the individual fee line item level and automatically posts any matching differences back to the appropriate account as gains or losses. When an invoice is received (detailing fees) and the fees don’t match the posted fees receivable (fees clearing account) then the user is able to specify the clearing amount against each fee in the line item. Accounting for Taxes (In a Pure Exchange)
It is common practice in the oil industry, in the case of pure exchanges where the material cost will not be invoiced for the excise duty taxes due to movements against exchange agreements to be invoiced since they have to be given to the government. R/3 IS-Oil Downstream allows the user to define, for pure exchanges, whether excise duty is invoiced or (like the material costs) posted internally. See the chapter on TDP for more detail on excise duty handling.
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Create Financial Accounting Entries
The receipt and issue of goods automatically triggers the required general ledger postings to account for the above scenarios as follows: q
Internally posted duty on goods receipt (on pure exchange where material is also posted internally) m m m
q
m m m
Debit - Inventory account Debit - Excise Duty Credit - GR/NI (excise duty value) Credit - Material Internal Payables account (material amount)
Internally posted duty on goods issue m m m
q
Credit - Material Internal Payables (material amount + excise duty amount)
Externally posted duty on goods receipt m
q
Debit - Inventory account Debit - Excise Duty Inventory
Credit - Inventory Credit - Excise Duty Inventory Debit - Material Internal Receivables (material amount + excise duty amount)
Externally posted duty on goods issue m m m m
Credit - Stock Credit - Excise Duty Inventory Debit - Excise Duty Cost of Goods Sold (excise duty amount) Debit - Material Internal Receivables (material amount)
Invoice/Invoice verification for excise duty
Where excise duty is externally posted the following accounting entries are made: Invoice issue: q
Credit - Excise Duty Revenue
q
Debit - Exchange partner account
Invoice receipt: q
Debit - GR/NI
q
Credit - Exchange partner account
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The purpose of load balancing is to cope with the business scenario where it is desired to use an existing purchase contract/call-off to fulfill a customer order. The business scenario is illustrated below:
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Two variations of the illustrated scenario are envisaged: q
IS-Oil Transportation and Distribution functionality is used. Typically this is where the delivery is carried by a truck that is under our control e.g. one of our own or an independent carrier employed by us. Exchange loading integrates the exchange functionality into the delivery creation, the shipment scheduling and the load confirmation processes, so that what is loaded onto the vehicle is the quantity receipted under the exchange.
q
Without IS-Oil Transportation and Distribution functionality (i.e. using standard Core Delivery processing). Typically this is where the delivery is carried out by a vehicle that is not under our control, for example the customer picks up the product. Exchange loading integrates the exchange functionality into the delivery creation and the goods issue processes, so that what is issued to the customer is the quantity receipted under the exchange.
The details of transportation processing are discussed more fully in the chapter on Transportation and Distribution.
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Assignment of Exchange Contract
The exchange can be assigned to the customer delivery note in two places: q
When creating or changing the delivery note an assignment of one or more exchange contracts/call-offs can be made to the delivery item. This assignment causes the quantity schedule of the contract/call-off to be updated with the intended delivery quantity. This ensures that the required quantity of product is reserved against the total available for call-off against the purchase contract/call-off.
q
When scheduling a delivery to a shipment (TD only) an assignment can be made or modified. This updates the quantity schedule in the same manner as per creating or changing the delivery note directly.
There are two methods of assigning the exchange: q
A user exit will allow user written code to automatically choose the exchange depending on criteria from the delivery note item. If the IS-Oil user has specific strategies for determining which exchange is relevant in certain circumstances (for example Exchange call-off 12345 is only to be used for product issued from plant ABCD during June 1997) than this can be programmed.
q
The exchange contract/call-off can be explicitly specified via a popup window. If no user exit exists or no applicable strategy can be determined then the exchange can be manually specified or changed.
The system will check that there is sufficient availability against the exchange quantity schedule which ever method is used. Loading or Goods Issue At load confirmation (TD relevant) or goods issue (non-TD) the quantity that is loaded onto the vehicle or issued out to the customer is confirmed. However before this happens that quantity needs to be received from the exchange partner. To do this the system performs the following functions: q
Checks the exchange assignment. If the date of the delivery has changed or the quantity has increased the exchange assignment may no longer be valid.
q
Amends the delivery note quantity to the entered loading/goods issue quantity.
q
If a purchasing contract has been assigned then a call-off is created.
q
Updates the quantity schedule of both the purchase call-off and the contract as appropriate.
q
Posts the goods receipt against the purchase call-off.
q
Posts the loaded quantity into in-transit (TD relevant) or against the delivery note for invoicing (non-TD).
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IS-Oil functionality allows multiple invoices to be generated from a single delivery for different pricing components. For example fees can be invoiced separately from taxes, and importantly the fee invoices can have different payment terms than the tax invoices. This functionality is not restricted to exchanges but is available for all sales transactions. An invoicing cycle can be assigned to pricing conditions and a billing type can be assigned to process one or more invoicing cycles. So for example all exchange fee condition types can be assigned invoice cycle 1 and all tax condition types assigned to invoice cycle 2. At the customer material level or on the sales documents the payment term can be set for each invoicing cycle. In addition user exits allow user written code to set the payment term if specific criteria exist, such as the rules for US taxes, and also allow the netting cycle indicator to be set, so for example fee invoices could be netted but tax invoices billed. The flow of processing for split invoicing is:
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q
(Customisation of condition types and billing types to set invoicing cycles.)
q
Order taking: Payment terms for each invoicing cycle may default in from Customer Material Info records or may be manually set. Invoicing cycle on price conditions may be manually overridden.
q
Delivery processing (no change).
q
First invoicing run: Only the pricing conditions with the invoicing cycle(s) matching those on the billing type used for the invoicing are processed. The other pricing conditions are calculated but set to “statistical”.
q
Profitability (COPA) updated with full invoice item quantity but only value for first cycles.
q
Delivery status and document flow refelct the cycles processed.
q
For subsequent invoicing runs, the processing is the same except profitability is only updated for value (and not quantity).
q
When all invoicing cycles have been run the delivery status is then set to “complete”.
Split invoice verification is also supported on the MM-side as of Release 1.0D. With split invoice verification, you can calculate the freight costs and excise duties separate from the material value and the fees for a goods receipt, and you can provide different terms of payment each time.
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1HWWLQJ Netting functionality allows payables and receivables for an exchange partner to be summed up and subtracted from each other. So instead of invoicing the exchange partner for each outward movement and receiving an invoice from them for each inward movement and then processing all those payments, only one either payable or receivable open posting need to be processed.
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The user specifies when creating an exchange agreement whether sales and purchases with the exchange partner are to be netted or invoiced. The netting functionality consists of four areas of functionality: q
Financial Netting Process - Periodic clearing of the payables/receivables (netting) to generate a single open item for the balance
q
Specification of netting criteria
q
Blocking the invoices for automatic payment
q
Selecting the payable/receivable items for netting
Specification of Netting Criteria
The payment blocking indicator is used to block invoices for payment and enhanced by IS-Oil to indicate that these invoices are to be netted. Different values can be used as blocking indicators to specifiy different netting criteria. This is flexible and can be specified by exchange partner. For example blocking indicator “A” may be used to specifiy that all B/L exchange type transactions dated between the 16 th of the previous month and the 15 th of the current month are netted together for exchange partner ABCD. Blocking the Invoices for Automatic Payments
The netting indicator (or payment blocking indicator) is set in the exchange header and defaults into the sales and in the exchange header and defaults into the sales and purchasing documents. Depending on customising, it may be changed or removed in these documents, if required. Within the split invoicing functionality there is a user exit that also allows the indicator to be set depending on criteria relevant to the invoicing cycle. For example, this allows fees to be netted but taxes to be invoiced/paid. Selecting the Payable/Receivable Items for Netting
Before the payable and receivable items are netted it is possible to review the documents and deselect anything that is not to be netted in this run. This allows items that are in dispute (i.e. not agreed with your exchange partner) to be netted later or manually processed. Netting of Payables and Receivables
The result of the financial netting process is shown in the figure below. The purpose of this functionality is to periodically, e.g. monthly, net off the payables and receivables for an exchange partner and post a single document to represent the difference.
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The key aspects of the financial netting functionality are: q
The netting process reads the netting relevant payables and receivables for the exchange partner.
q
This balancing document can be processed as a normal payable or receivable, i.e. by payment/collection processing, or left on the account to be carried forward and netted off against future transactions.
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As of Release 1.0D, the collection of receivables and payables in an exchange for netting can be carried out based on the actual exchange-related goods movements which took place. Instead of financial documents being selected, the financial values that are to be offset against each other are derived from goods movements which have been selected by the exchange partners to be included in netting.
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9DOXDWLRQRI/RJLFDO,QYHQWRU\ Logical inventory balances are updated whenever one of the following system events occurs: q
Goods receipt against a pure exchange agreement - for the actual received quantity
q
Goods issue against a pure exchange agreement - for the confirmed delivered quantity
q
Posting of a Logical Inventory Adjustment transaction
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The financial value of the logical inventory balance is held in a new database (OIA7) which is keyed by Company Code/Plant/Material and contains the quantity, value and moving average price of the logical inventory. q
Material internal receivables - For physical goods issues, the quantity of logical inventory owed to us by our exchange partner is valued at the prevailing physical inventory carrying price, regardless of any pricing details in the exchange sales contract.
q
Material internal payables - For physical goods receipts, again the quantity of logical inventory owed by us to our exchange partner is valued at the prevailing physical inventory carrying price or at the price of the material at a specified reference plant (a reference plant is commonly used when no inventory is normally held at the receiving plant).
This valuation strategy recognizes that logical inventory represents a quantity of product, and not a financial amount, owed or owing and therefore should be valued as if it were physical inventory.
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Moving Average Price
The system tracks the moving average price of the logical inventory balances at the company, plant, product level. This strategy is illustrated by the figure below and ensures that the integrity between the system held logical inventory quantity balance and the logical inventory financial balance is always maintained, i.e. if all of the quantity balance were cleared, then the system held financial value would be zero. The strategy ensures that IS-Oil can handle both standard priced and moving average priced physical inventory valuation strategies.
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Revaluation of Logical Inventory
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IS-Oil functionality incorporates an enhanced price change transaction that can be invoked as required to post a new inventory carrying price for logical inventory within a particular plant. The effect of posting a revaluation of logical inventory is illustrated by figure 20. In the above example, the logical inventory carrying price is changed to 1.00 USD/lt. The difference between the logical inventory value at the old carrying price and that at the new carrying price is calculated by the system and posted to a P&L account. In this case the difference is: (Old price x quantity) - (New price x quantity) = 3,062 - 2,800 = 262 This is recorded as a loss on revaluation. Sub/Base Product Handling
IS-Oil functionality offers the flexibility of creating an exchange agreement containing multiple products referencing a single base product. This is used for example with exchanges of gasolines with different octane levels but for ease of monitoring, reconciliation and valuation all transactions are based upon a mid grade gasoline.
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When sub/base product functionality is used the logical inventory is updated in terms of the base product. For example if an exchange contract contains the following products: -
UN87H0
87 octane gasoline
-
UN90H0
90 octane gasoline
-
UN93H0
93 octane gasoline
all referencing UN90H0 as a base, an issue or receipt for either UN87H0 or UN93H0 will update the logical inventory for UN90H0. The value posted to logical inventory will be based upon the inventory carrying price for UN90H0 and the difference between that and the material’s normal inventory carrying price is posted as a loss/gain. All reporting is centered upon the base product with the sub product generally only being reported as additional information.
/RJLFDO,QYHQWRU\$GMXVWPHQWV The Logical Inventory Adjustment transaction allows the oil company to adjust the logical inventory they have recorded against an exchange partner. Typically this is to record the swap of the ownership of a specified quantity of one product for the ownership of a specified quantity of another product or to correct a movement that was incorrectly posted against an exchange, or to transfer the balance from an expired exchange agreement to a new exchange agreement. The adjustment may or may not include a monetary payment. No physical product movement is involved in the settlement only a logical inventory movement.
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The product(s) to be balanced result from unequal or incorrect call-offs on sales and purchase contracts, assigned to pure exchanges only, at one or more locations. This means the internal payables and receivables logical inventory accounts are used for the exchange contracts to control valuation of product logical inventory. The three components of a Logical Inventory Adjustment are: q
A specified quantity of an over-received product(s) to be swapped in
q
A specified quantity of an over-delivered product(s) to be swapped out
q
A monetary payment (issue or receipt)
Usually, at least two of the three components would be defined for a Logical Inventory Adjustment, although the system allows any combination of the above. The logical inventory effect of posting a Logical Inventory Adjustment is illustrated by the figure below.
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Specifications to be Made in the Logical Inventory Adjustment Transaction
The user specifies the exchange partner with whom the Logical Inventory Adjustment is being made on entry to the Logical Inventory Adjustment transaction. For each over-received product to be swapped out and each over-delivered product to be swapped in, the user must specify: q
The location at which the posting should be made
q
The exchange type against which the Logical Inventory Adjustment should be posted
q
The product to be swapped
q
The quantity to be swapped
In addition, the user has the option of specifying the exchange agreement number against which the Logical Inventory Adjustment clearance should be posted. If this is not specified, then the Logical Inventory Adjustment clearance is posted at the summary level for the exchange partner.
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Quantity Posting Made By the Logical Inventory Adjustment Transaction
When entry is complete the exchange product quantity balances are updated. This is illustrated by the figure below. The entry for an over-delivered product has the effect of reducing the delivered quantity rather than increasing the received quantity. Conversely the entry for an over-received product has the effect of reducing the received quantity rather than increasing the delivered quantity. If the user attempts to swap in more product than has been received or swap out more than has been delivered, the system issues a warning. The user may choose to ignore this warning and post the Logical Inventory Adjustment in any case. Financial Postings Made By the Logical Inventory Adjustment Transaction The financial postings made by the Logical Inventory Adjustment transaction are illustrated by the figure below. The logical stock valuation is updated on each product’s valuation record (see section “Valuation of Logical Inventory”). For over-delivered products the internal receivable account is credited. For over-received products the internal payable account is debited. The offset is to a P&L account called “Exchange Balance” representing the gain/loss on the Logical Inventory Adjustment. The negotiated payment details, if entered, causes an invoice posting either to payables or receivables, in order to request a payment by ourselves or the exchange partner. For an invoiced payment request to the exchange partner the customer account is debited. For an invoiced payment request from the exchange partner the vendor account is credited. In either case the offset account is again the P&L “Exchange Balance” account. If the negotiated payment is a receivable an invoice document can be generated that contains details of the adjustments made and the value that is owed by the exchange partner. This document can then be sent to the exchange partner.
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The exchange statement is a document or series of documents used to report the activities of an exchange over a certain period. Typically the exchange statement is sent to the exchange partner and forms the basis for the periodic reconciliation of the exchange. It will contain information such as: q
the details of the movements (issues and receipts): material, plant, quantity, data, document no., etc.
q
the financial information relevant to the exchange partner for these movements: fees, differentials, etc.
q
adjustments: LIAs
q
opening and closing balances
q
net amount owed or owing for the period
It is highly customisable so that the amount of information sent to the exchange partner can be controlled and formatted as required. For the same data different formats and levels of information can be output. So it is possible to send a summarised version of the exchange statement to the exchange partner but generated a detailed version for internal use.
5HSRUWLQJ$JDLQVW([FKDQJHV Display Exchange Balance
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The system strategy for quantitative tracking of exchange balances is explained in the section “Quantitative Tracking of Exchange Balance”. The
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exchange balance display transaction enables the user to display the S036 segments held at the exchange agreement level and therefore to summarize up to higher levels of detail. The key to this database segment, which defines the lowest level at which the exchange balance is tracked, is: Client/Period/Material Group/Material/Plant/Exchange Partner/ Exchange Type/ Exchange Agreement Number/Base Product
This allows the user to view the exchange balance at any higher level by summarizing the information held at this level. The Logistics Information System (LIS) is used for reporting purposes. This is a flexible, customisable reporting system that allows the exchange balance details (i.e. lifts, receipts and balances) to be reported and summarised by any combination of the key fields. Display Exchange Movements
The display exchange movements transaction allows the user to display all exchange related movements. In SAP terms, the deal related movements are: q
Goods Issue
q
Goods Receipt
q
Logical Inventory Adjustment
The user is able to narrow the range of selected movements by specification of one or more of the following selection criteria: q
Material Number (or matchcode)
q
Plant
q
Exchange type
q
Movement type
q
Range of posting dates
q
Exchange Partner
Display Exchange Entitlement
The exchange entitlement transaction supports the IS-Oil user in finding open entitlements. An entitlement to lift product from an exchange partner is represented by the open quantity against a purchase call-off. For each calloff, the open entitlement is defined by: Exchange entitlement = Scheduled quantity - Intended quantity - Received Quantity where, Scheduled Quantity = Maximum quantity available in any scheduling control period (see section “Lifting Controls and Checks”) Intended Quantity = The quantity reserved due to assignment of the call-off to a customer order (see section “Load Balancing”)
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Received Quantity = The quantity already received against the call-off
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The user can narrow the range of the call-offs selected by entering one or more of the following selection criteria: q
Product
q
Plant
q
Exchange Partner
q
Exchange type
q
Method of delivery
The system displays the open entitlement on all exchange related purchase call-offs that meet the entered selection criteria. It is also possible to drill down on a particular call-off to display the underlying scheduling quantity schedules (see section “Lifting Controls and Checks”).
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*ORVVDU\RI([FKDQJH6SHFLILF7HUPV 3XUH([FKDQJH A pure exchange is one where the liability incurred due to a receipt of product from an exchange partner, or the asset acquired due to the delivery of product to an exchange partner, is a quantity of product owed or owing and not a financial amount. The assumption is that over time the quantities owed and owing balance although periodic or ad hoc settlements against this type of exchange are possible. The implication is that “pure” exchanges are managed with respect to the quantity of product owed or owing due to physical or logical movements against the exchange agreement.
1RQ3XUH([FKDQJH A non pure exchange is one where the financial amount owed or owing due to an exchange receipt or delivery is to be paid or netted. For this reason, the quantity balance against this type of exchange is not be cleared down over time. The implication is that non “pure” exchanges are managed with respect to the financial value owed or owing due to physical movements against the exchange agreement. This type of exchange may be netted or invoiced.
1HWWHG([FKDQJH A netted exchange is a non pure exchange within which an oil company periodically invoices only the net balance owed or owing due to the movements against the exchange as opposed to invoicing for each individual movement.
%RUURZ/RDQ([FKDQJH In a borrow/loan exchange, materials are only posted internally, they are not invoiced to the partner. A logical inventory is set up. Excise duty and fees incurring with the material movements will generally be invoiced. A borrow/loan exchange is also known as a “pure” exchange.
)HH&DWHJRU\ This is a broad grouping of similar types of fees. The fee category corresponds to an SAP price condition record type and therefore allows the user to define the key parameters on which the fee rate should depend, e.g. individual fees depends upon method of delivery, exchange type, and delivery location.
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