Is Oil Downstream

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SAP Oil & Gas (IS-Oil Downstream)PDF download from SAP Help Portal:

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Created on July 18, 2014

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Table of content1 SAP Oil & Gas (IS-Oil Downstream)

1.1 Integration of SAP Oil & Gas with SAP CRM

1.2 Cross-Application Components

1.3 HPM - Hydrocarbon Product Management

1.4 TDP Tariffs, Duties and Permits

1.5 EXG - Exchanges

1.6 TD - Transportation and Distribution

1.7 MAP Marketing Accounting and Pricing

1.8 MCOE - Marketing Contracts and Order Entry

1.9 MRN - Marketing Retail Network

1.10 BDRP - Bulk Distribution Requirements Planning


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SAP Oil & Gas (IS-Oil Downstream)

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Integration of SAP Oil & Gas with SAP CRM

Purpose

This component allows you to use certain industry-specific functions for the oil industry consistently in SAP Customer Relationship Management (CRM) and

SAP O il & Gas (as the back -end system). It also ensures the integration of excise tax handling for quantity contracts and sales orders.

Implementation Considerations

If, in sales, you want to use additional functions in SAP CRM aswell as those in SAP Oil & Gas , you must activate this component.

Constraints

The following functions are not supported:

Licensesare not covered by the scope of the integration with SAP CRM .

The tax-relevant oil contentis not supported when process ing data in SAP CRM .

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1.2 Cross-Application Components

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1.3 HPM - Hydrocarbon Product Management

Purpose

The component encompasses:

The Silo Management System, which provides functionality for managing phys ical inventories in tanks by creating tank dips in the R/3 System, and

comparing those inventories at any time with the book stocks. In that way, gains and losses can always be determined, and goods movements can be

monitored.

A flexible Quantity Conversion Interface (QCI) that converts volumes, masses and energy at ambient conditions (temperature, pressure, vapor pressure,


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calorific value, density) into volumes, masses and energy values at standard conditions. In addition, the Quantity Conversion Interface calculates density

and heating value at standard conditions.

External programs for calculating complex oil volume correction factors (c-code routines of the American Petroleum Institute, customer-designed programs)

and natural gas compression factors (c-code routines of the American Gas Association, customer-designed programs) can be integrated with the QCI.

The tracking of two-step plant-to-plant transfers, with a determination of profit and loss, and automatic posting of differences.

An extension of inventory management and of the material documents, so that there are several units of measure. As part of that, several standardized

quantities can be entered in documents, and inventories for those units of measure can be updated.

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1.4 TDP Tariffs, Duties and Permits

Purpose

This component provides functionality for calculating and posting excise duty for dutiable goods. Excise duty is determined when a goods movement occurs, and

is based on the quantity of material moved.

This component covers:

Excise duty processing within the sales and purchase cycle

Excise duty processing for inner-company goods movements (excise duty calculation for material that is moved between two plants with various tax rates).

Excise duty for production orders

Calculation and posting of excise duty liabilities and claims for goods movements of dutiable material.

The use of several excise duty rates for a material

The revaluation of inventories after excise duty rate changes

Licenses for exc ise duty (ED) reductions and exemptions

Split inventory management of the ED portion and the net price of a material

A data pool for creating reports

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1.5 EXG - Exchanges

Purpose

This component contains functions for managing exchange agreements between companies in the oil and gas industry - the exchange of products at various

locations. To support the management of exchange business transactions, you can:

Create an exchange agreement

Create quantity schedules for planning and monitoring material quantities

Balance differences in value of exchanged materials using fees

Settle claims and liabilities against one another (netting)

Exchange unlike products, and balance the logical inventory that results (logical inventory adjustment)

Create exchange statements that reflect the current status of your exchange activities in a specific period

Create additional evaluations with respect to your exchange activities (for example, creating a list of all goods receipts and goods issues within an exchange

agreement).

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1.6 TD - Transportation and Distribution

Purpose

The Transportation and Distribution (TD) application area covers the logistics activities related to:Delivery of product from a delivering plant to a customer

Transfer of product between two company-owned locations

Receipt of purchased product from a vendor

These activities are carried out across the processes of scheduling, load confirmation, and delivery confirmation.


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A separate menu exists for the TD app lication area. You can access this menu by choosing Logistics

Sales and Distribution Bulk transportation .

Features

The following organizational units are used to support oil industry processes. These are also data retention levels in the system.

Transportation Planning Point

The transportation planning point represents a group of employees responsible for planning transportation. A transportation planning point can cover one or many

shipping points. Transportation planning points are independent of the other organizational units in the Logistics module.

Intransit Storage Location

You use intransit storage locations to represent product which is being transported on a vehicle as part of a shipment. By defining intransit storage locations, you

can manage and control stock after it has left the loading plant and while intransit.

During loading, the product is transferred from the loading plant to the intransit storage location. From that point on and until the product is delivery confirmed, the

control and ownership of the product remains with the delivering plant. Subsequent transactions in TD involving a shipment results in an update of the intransit

storage location. As a result, you can track product while intransit and account for gains or losses that occur between loading confirmation and delivery

confirmation.

You define intransit storage locations in Customizing for Industry Solution Oil&G as (Downstream) by choosing TD (Transportation and Distribution) TD Bulk

Shipment Intransit Stock . The definition of intransit storage locations is dependent on the plant and intransit posting group.

Use of Intransit Storage Location in Sales Cycle

In the standard document flow for sales in the Sales and Distribution (SD) module, stock movements take place with reference to a delivery through the generation

of a goods issue document. In this case, the customer takes ownership of the stock as soon as it leaves the delivering plant, on execution of the goods issue.

In order to track the stock at the point after leaving the delivering plant and prior to arrival at the customer, TD introduces the concept of the intransit storage

location. In this case a transfer is used to move the stock from the delivering plant to the vehicle during load confirmation. The stock loaded on the vehicle then

exists in the intransit storage location. This can be shown through the Stock Overview report.

Use of Intransit Storage Location in Purchasing Cycle

In the standard Purchasing process for the Material Management (MM) module, a purchase order is created, after which a shipping notification can be created to

control the delivery of the goods. When the goods are received, a goods receipt is posted in the receiving plant.

With TD, the goods receipt is posted in the intransit storage location which represents the stock of the vehicle that is loaded. The stock remains in the intransit

storage location until a transfer to the actual receiving plant is initiated during the delivery confirmation step.

Fixed Intransit Storage Locations for Shipments

You can define how the system is to determine the intransit storage location for a shipment. For example, you can determine that the system is to use the location

entered in the delivery, reservation, or stock transfer order as the intransit storage location for the shipment.

You do this in Customizing for Industry Solution Oil&G as (Downstream) by choosing TD (Transportation and Distribution) TD Bulk Shipment Intransit

Stock Determine intransi t storage location/cost centre and selecting the required indicator in the FixedSt.Loc (fixed in-transit store location) field. The following

selections can be made to determine the intransit storage location for a shipment:

blank (allow different intransit storage locations):

If you do not select an indicator, multiple intransit storage locations per material/plant are allowed. In this case, the shipment uses the intransit storage location

defined in Customizing. However, in the case of load-relevant reservations or inbound deliveries the system uses the intransit storage location from the relevant

document.

1 (use loading storage location as intransit if possible):

If you choose the 1 indicator, the system allows different storage locations but, whenever possible, uses the sending storage location at loading. During loading,

the system uses the loading storage location as the intransit storage location. The system does not use the sending storage location in the case of rebrands or load-

relevant reservations, because in those cases the intransit storage location is the receiving storage location of the reservation.

This setting can only be used, if you select the Byp ass Intransit Storage Location checkbox in Customizing for the Bulk Shipment Type. Without this setting in

the Bulk Shipment Type, the system determines the intransit storage location as if the fixed in-transit store location field was left blank (see above).

X (use only intransit storage location from Customizing):

When you select this indicator, the system uses the intransit storage location defined in Customizing for the intransit storage location/cost centre. During

scheduling, the system checks to make sure that the storage location entered in the underlying document matches the one defined in Customizing.

Intransit Plant


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When shipp ing large quantities of product over long distances such as in pip eline and marine shipments, it can be necessary to maintain a segregated overview

of the intransit stock. This can be done by representing the vehicle as a separate plant, known as an intransit plant. It is possible to allocate all vehicles to a

single intransit plant or, alternatively, to set up a separate intransit plant for each vehicle.

The intransit plant can consist of multiple storage locations for product tracking purposes as it moves along its route.

The allocation of the intransit plant is specified in the underlying documents that are assigned to the shipment.

Integration

The Hydrocarbon Product Management (HPM) application area supports the calculation of standard volumes using temperatures and densities. TD and HPM areintegrated so that TD supports multiple units of measure within the same transaction. Temperature and density are important factors in the loading, and delivery

process.

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MAP Marketing Accounting and Pricing

Purpose

The Marketing Accounting and Pricing (MAP) component is enhanced with additional functions required for the downstream oil business.

Features

Contract pric ing

Cumulative contract call-off pric ing

Customer price lists

Default pric ing dates

Head office and branch level pricing

Location flexib le pricing using the differential reference code (DRC)

Time pricing

Gross and net volume pricing

Formula and average pricing

D ifferential invoicing

Origin, destination, and external data in the sales and purchasing cycle

Conditional exclusion (highest prices)

Alternative pric ing date at invoicing

External quotation invoice

Five-decimal pricing

Additional material data in an invoice

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MCOE Marketing, Contracts, and Order Entry

Purpose

The Marketing, Contracts, and Order Entry component meets the requirements of the oil industry in the areas of fast order entry and contract processing.

Customer order processing and contract processing have been enhanced with the following functions:

Automatic determination of organizational data

Display and defaulting of items from the last order

Determination of a sequence of up to five preferred delivery plants for the delivery of the goods

Release of non-delivered quantities of a contract call-off

Restrictions for deviations from the contract conditions

Redetermination of the item type during order entry


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Features

Fast Order Entry

In this process the manual determination of data is minimized as much as possible by having the system automatically determine fields for the order. For

example, the selection of a supply plant and storage location can be automatically determined and the sales area can be defaulted from the customer. The ship-toparty can be entered as the ordering party and the system automatically finds the appropriate sold-to party.

In the system, you can access fast order entry by choosing IS-Oil on the Create Sales Order: Initial Screen. You can also set up the order type in Customizing

to default to fast order entry.

For fast order entry, you must enter the following data:

Sales order type

Customer

Material

Order quantity

Purchase order number (dependent on configuration)

The following default data is used for fast order entry:

Fast order entry: Origin of the default data:

Partner function Default value can be defined in Customizing for the order type

Sales organization Default value is copied from the customer master

Distribution channel Default value is copied from the customer master

Division Default value is copied from the customer master

Plant Default value can be set up by using automatic plant determination or by copying it from

one of the following:

Customer-material record, if one exists

Customer master record (ship-to party)

Material master record

Item Category Item category determination

Contact person Default value is copied from the customer master record

Fi elds in the C all Off O rder Restrictions screen box Contract restrictions are determ ined in the contract

Fields in the Excise duty screen Default values from the Excise duty screen can also be entered in the customer

master

Last Order Default value is the last order number of the specified sold-to/ship-to combination

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1.9 MRN - Marketing Retail Network

Purpose

A company may carry out its business operations at a large number of different locations. Each of these business locations has its own story to tell in terms of

performance and profitability. For oil companies, the business location is typ ically the service station, but may inc lude depots and non-fuel sales outlets.

This component provides functions for managing business locations such as service stations, depots and terminals. With these functions you can manage salesdata, data on vendors, dealers, supply contracts, plant maintenance, and so on.

The system allows you to enter and integrate all relevant data on business locations, independent of the geographic location, in a virtual database. In this way,

MRN supports a multitude of functions, from delivery planning to profitability analysis.


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1.10 BDRP - Bulk Distribution Requirements Planning

Purpose

One of the building blocks of effective supply chain management in the oil and gas industry is the accurate modeling of controls and constraints that affect the

handling of bulk materials.

This application area contains the functions used to optimize planning in petroleum product distribution. It supports the active management of customer inventory

by a vendor inventory (VMI: vendor-managed inventory). The vendor can use it to pre-plan replenishment deliveries to a customer.


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