SAP Oil & Gas (IS-Oil Downstream)

PDF download from SAP Help Portal:

http://help.sap.com
Created on August 08, 2014

The documentation may have changed since you downloaded the PDF. You can always find the latest information on SAP Help Portal.

Note
This PDF document contains the selected topic and its subtopics (max. 150) in the selected structure. Subtopics from other structures are not included.

2014 SAP SE or an SAP affiliate company. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose
without the express permission of SAP SE. The information contained herein may be changed without prior notice. Some software products marketed by SAP SE
and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by
SAP SE and its affiliated companies ("SAP Group") for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be
liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express
warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. SAP and other
SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE in Germany and other
countries. Please see www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices.

Table of content

PUBLIC
2014 SAP SE or an SAP affiliate company. All rights reserved.

Page 1 of 8

Table of content
1 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

PUBLIC
2014 SAP SE or an SAP affiliate company. All rights reserved.

Page 2 of 8

!--a11y-->

SAP Oil & Gas (IS-Oil Downstream)

!--a11y-->

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 Oil & 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:
Licenses are not covered by the scope of the integration with SAP CRM .
The tax-relevant oil content is not supported when processing data in SAP CRM .

!--a11y-->

1.2 Cross-Application Components

!--a11y-->

1.3 HPM - Hydrocarbon Product Management

Purpose
The component encompasses:
The Silo Management System, which provides functionality for managing physical 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,

PUBLIC
2014 SAP SE or an SAP affiliate company. All rights reserved.

Page 3 of 8

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.

!--a11y-->

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 excise 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

!--a11y-->

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).

!--a11y-->

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.

PUBLIC
2014 SAP SE or an SAP affiliate company. All rights reserved.

Page 4 of 8

A separate menu exists for the TD application 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&Gas (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&Gas (Downstream) by choosing TD (Transportation and Distribution) TD Bulk Shipment Intransit
Stock Determine intransit 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 loadrelevant 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 Bypass 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

PUBLIC
2014 SAP SE or an SAP affiliate company. All rights reserved.

Page 5 of 8

When shipping large quantities of product over long distances such as in pipeline 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 are
integrated so that TD supports multiple units of measure within the same transaction. Temperature and density are important factors in the loading, and delivery
process.
!--a11y-->

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 pricing
Cumulative contract call-off pricing
Customer price lists
Default pricing dates
Head office and branch level pricing
Location flexible pricing using the differential reference code (DRC)
Time pricing
Gross and net volume pricing
Formula and average pricing
Differential invoicing
Origin, destination, and external data in the sales and purchasing cycle
Conditional exclusion (highest prices)
Alternative pricing date at invoicing
External quotation invoice
Five-decimal pricing
Additional material data in an invoice

!--a11y-->

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

PUBLIC
2014 SAP SE or an SAP affiliate company. All rights reserved.

Page 6 of 8

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-to
party 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

Fields in the Call Off Order Restrictions screen box

Contract restrictions are determined 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

!--a11y-->

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 typically the service station, but may include 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 sales
data, 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.

PUBLIC
2014 SAP SE or an SAP affiliate company. All rights reserved.

Page 7 of 8

!--a11y-->

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.

PUBLIC
2014 SAP SE or an SAP affiliate company. All rights reserved.

Page 8 of 8