IS Oil Exchanges

PRAVEEN KUMAR DHANKAR

Contents
Table of Contents
SECTION 1A: MASTER DATA.........................................................................................2
1.1 Customer Master Data.......................................................................................... 2
1.2 Vendor Master Data...............................................................................................7

SECTION 2: EXCHANGES...............................................................................................8
2.1 Buy and Sell Exchanges.......................................................................................9
2.2 Borrow and Loan Exchanges............................................................................13
2.3 Terminalling Exchanges.....................................................................................14

SECTION 3: PURCHASE PROCESS.............................................................................15

3.1
3.2
3.3
3.4

Create Contract / Agreement...........................................................................15

Create Purchase Call Of....................................................................................19
Goods Receipt........................................................................................................ 21
Create Invoice Receipt........................................................................................ 23

SECTION 4: SALES PROCESS.....................................................................................25

4.1
4.2
4.3
4.4

Sales Contract........................................................................................................ 25
Sales Call Of.......................................................................................................... 28
Delivery.................................................................................................................... 30
Invoice Creation.................................................................................................... 32

SECTION 5: NETTING PROCSS.................................................................................34

5.1 Financial Based Netting.....................................................................................34
5.1.1 Create Netting Selection............................................................................................................ 35
5.1.2 Create Netting Document.......................................................................................................... 38
5.2 Movement Based Netting..................................................................................40
5.2.1 Create Movement based Netting Document..............................................................................41
5.2.2 Change Movement based Netting Document............................................................................43
5.2.3 Execute Batch Input.................................................................................................................. 45

SECTION 6: LOGICAL INVENTORY.............................................................................48

6.1 Financial Adjustments........................................................................................ 49
6.2 Quantity Adjustments......................................................................................... 49

SECTION 7: CONFIGURATION.....................................................................................50
7.1
7.2
7.3
7.4
7.5
7.6
7.7

Define Number Ranges.......................................................................................50

Define Exchange Types.......................................................................................50
Define Fee Account Assignment Conditions..............................................53
Define Account Assignment.............................................................................54
Quantity Schedule and Breakdown Indicator............................................55
Exits for Netting.................................................................................................... 55
Output and Forms Assignment for Netting Statements........................56

Section 1a: Master Data

1.1 Customer Master Data
Transaction Code: XD01
Screenshot for the above Process:

Press Enter or the Tick Button

Transaction Code XD01

after typing in the

On the Initial Screen fill the Account Group; this is mandatory to classify
the customers according to a particular set or with same sales activities.
Fill in all the Sales Area Data:
Update the following Required (R), Optional (O), and Conditional fields (C),
as needed:
Field

R/O/C

Description/Action

Account Group

Account Group has to be selected as per nature of

customer

Customer Code

External Customer Code Name required for specific

groups

Company Code

Required to maintain accounting data for customer

Field
Sales
Organization

R/O/C
O

Description/Action
Maintain Sales Area

Distribution
Channel
Division

(A)

Customer General Data: Address TAB

Update the following Required (R), Optional (O), and Conditional fields (C),
as needed:
Field

R/O/
C

Description/Action

Title

Select from the Drop list

Name 1

Name 2

Write full Name of the party not more than 35

Character in First Row. If Name exceeds more
than 35 Character write in 2nd Row.

Search Item
Search Term 1/2

Write any name by which you want to use search

for party. For Example you may write initial of
partys Name.

Street /House No.

Write street in First box and House No. in 2 nd Box.

Postal code/ City

Write PIN no. in First Box and City in next Box.

Country

Write code from the drop down list.

Region

Write State code from the drop down list.

Time Zone

Please enter Time Zone.

Transportation Zone

Please fill in from the drop down List.

PO Box of Customer

Street Address

PO Box Address
PO Box

Communication
Language

Select English

Telephone

Write Phone No. of the shop.

Mobile Phone

Write Mobile Phone of the sop/Owner

Fax

Write Fax No if any

E-mail

Write Fax No if any

When you click on the button following screen will appear

(A)

Customer General Data: Control Data TAB

Update the following Required (R), Optional (O), and Conditional fields
(C), as needed:
Field
Vendor

R/O/C
C

Description/Action
Vendor Code from the drop down list; if customer is
also a vendor in certain cases.

Tax Information
Tax Number 1

Enter Tax number

Tax Number 2

Enter Tax number

Sales /Purchase
Tax

Please tick the Box.

Vat Reg. No.

Write VAT Registration No, of the customer. Enter

others Button if more Tax details required filling.

Tax Jurisdiction

It defines to which tax authorities you must pay

your taxes. It is always the city to which the goods
are supplied.

Determines whether the company is liable to

value-added tax (VAT).

After maintaining all the General Data; click on the

Company Code Data

(A)

Customer Company Code Data: Account Management TAB

Update the following Required (R), Optional (O), and Conditional fields (C),
as needed:
Field

R/O/
C

Description/Action

Reconciliation
Account

The reconciliation account in G/L accounting is the

account which is updated parallel to the sub ledger
account for normal postings (for example, invoice or
payment). Select from the list.

Previous Account
No.

Previous Number of Customer existing in the

organization

After maintaining all the Company Code Data; click on

the Sales Area Data

(B)

Customer Sales Area Data: Sales TAB

Update the following Required (R), Optional (O), and Conditional fields
(C), as needed:
Field

R/O/C

Description/Action

Currency

Currency in Sales Order for Sales. Select from the

list

Customer
price
procedure

Pricing procedure determines the type and

sequence of conditions that the system uses for
pricing. Select from menu
(C)

Customer Sales Area Data: Shipping TAB

Update the following Required (R), Optional (O), and Conditional fields
(C), as needed:

Field

R/O/C

Shipping conditions
(C)

Description/Action
General shipping strategy for the delivery of
goods

Customer Sales Area Data: Shipping TAB

Update the following Required (R), Optional (O), and Conditional fields
(C), as needed:
Field

R/O/
C

Description/Action

Inco terms

Trade terms with the customer

Term of Payment

Terms of payment for Delivery

Account assignment
group

Account Assignment for Revenue Posting

Tax Classification

Required entries for all Taxes for customer

Account Assignment is very important as to Revenue Account

Posting entries determination:
Tax classification is critical as to determine the rate of taxes
customer is liable while creating sales order.
(C)

Customer Sales Area Data: Partner Functions TAB

Update the following Required (R), Optional (O), and Conditional fields
(C), as needed:
SAP by default assign All 4 partner function to the customer. In case any party has
different ship to party function or bill to party function you may add provided
customer is created in the master.
Field

R/O/
C

Description/Action

Sold to Party

Bill to Party

Default Value
Default Value

Payer

Default Value

Ship to Party

Default Value

1.2 Vendor Master Data

Create Vendor As usual and then Link Customer to Vendor as
follows
Transaction Code: XK02
Screenshot for the above Process:

Enter the Vendor Number and Control Check Box and Press Enter

Field
Trading Partner

R/O/
C
R

Description/Action
Customer Master to be Assigned

Section 2: Exchanges
Transaction Code: O3A1
An exchange agreement is made between two oil companies (exchange
partners), when the companies would like to exchange product at different
locations. The exchange agreement consists of the exchange header and the
assigned sales contracts and purchase contracts.

Menu
Path

T-Code

Logistics
Exchanges

Exchange
Operations
Exchange
Agreements
Create
exchange
agreement

Enter Exchange Type, Exchange Partner

Field
R/O/
Description/Action
C
Exchange Type
Exchange Partner

Type of Exchange

Vendor Number;assigned to Sales

Customer( this code caries according to the
assignment with the customer

2.1 Buy and Sell Exchanges

Press Enter after maintaining all the required exchange data

Field
Exchange Type

R/O/
C
R

Description/Action
Buy/sell exchange Material and Taxes are
Billed
Borrow and Loan Material and Taxes are
Not Billed
Terminalling Fees is Billed

Evergreen Type

Regular Start Date and Close Date is

Mandatory (Quantity called off @ Regular
Periods from Contracts)
Unlimited - Start Date and Close Date is
Optional
(Unlimited Quantity Called off from Contracts)
None Start Date is Mandatory
(Quantity Called off from Contracts - Fixed)

Exchange Partner
Posting Rules
Netting Indicator

Appl Fee
BI (Breakdown
Indicator
Quantity)
SI (Split Indicator
Quantity)

S/B Indicator
Sub/base product

VAT

Vendor Number;assigned to Sales Customer

External - Material / Taxes / Fees Invoiced

O
O

O
O

Internal - Material / Taxes / Fees NOT Invoiced

This indicator determines whether the
customer invoices and the invoice receipt
documents are blocked for the netting
program.
When this indicator is set, at least one fee has
to be assigned to either a sales or a purchase
contract.
The breakdown indicator is used in the
quantity schedule to define the length of a
breakdown period for call-offs against a
contract.
The quantity schedule is split into various
schedule lines according to the scheduling
indicator, which determines whether the
schedule is weekly, monthly or based on
another unit of time.
This is a pricing routine invoked when goods
movements are posted for this exchange and
there are sub/ base product relationships.
In this field, you can enter a user exit, which is
used to check if the base product assignment
is correct (given that the exchange is subproduct/base product-relevant).
Indicates the intention to pay value-added tax

Additional
Own

O
O

on the estimated product, material is posted

internally and not invoiced by the vendor
(Borrow/Loan Exchange).
User exit for displaying additional data from
SD and MM documents in the exchange
transaction.
When you select the ownership check
indicator, the system marks the underlying
exchange agreement as a terminalling
agreement

After clicking SAVE button; if the date of the agreement is in past

will show you the warning; just click Enter and go ahead. A new box
will appear on the same page as below:

If the User has already created contract with VA41; before

creating exchange then; click on the Assignment button
following screen appears:

Click Enter or tick button

Following is the Checklist for the correct assignment; otherwise
system will issue an error message and will not let the user assign
the contracts to the exchanges
1. Contract Valid From Date must be same as Exchange starting date
2. Contract must NOT be assigned to any other Exchange
3. Contract Customer must be assigned to the Exchange Vendor Partner

If the User has NOT created contract with VA41; before creating
exchange then;
Click on the Create Contract Button
for VA41 and ME31K

and screen appears

This is the same screen of the contract T Code VA41 or ME31K. The
rest of the data to be input and the contract creation process is in the below
section of the Purchase and Sales Contract.

2.2 Borrow and Loan Exchanges

2.3 Terminal ling Exchanges

Section 3: Purchase
Process
3.1 Create Contract / Agreement
Transaction Code: ME31K
A contract is a long-term agreement with a vendor that is fulfilled by
requesting material in the form of a call-off, up to a specific quantity or a
specific value.
With this process, you can:

Create a new purchase contract and assign it to an exchange

agreement
Assign a purchase contract which already exists to an exchange
agreement

Menu
Path

T-Code

Logistics Exchanges Exchange Operations

Exchange Receipts Contract

Click on the Create Contract Button

appears of ME31K:

following screen

Enter the required Header data in the Following Screen and Press
Enter to populate item data

Click on Save and following Screen Appears

Press Save to maintain the purchase contract in the Exchange

Agreement

3.2 Create Purchase Call Of

Transaction Code: ME21N
A purchase order is a formal request to a vendor to supply specific goods or services
under specified conditions. A call-off is an order that references a purchase contract.
You can use this process to create a call-off.
For information on how the Enjoy purchase order is integrated in the exchange data
flow, see
Enjoy purchase order. For information on the interface and functions of the Enjoy
purchase order, see the help area within the application, which you can show or
hide.
Process Flow
You create a call-off order with reference to the purchase contract.
You enter the order quantity and the delivery date.
You can edit the quantity schedule and the fees at item level.
You decide whether or not order items are relevant for split invoicing.
At this point, you can send the order to your vendor.
Menu Path:

Menu

Logistics

Exchanges

Exchange

Operations

Exchange Receipts Purchase Call of

Path

T-Code

Field
Purchase Order
Type
Quantity
Exchange Partner
Net Price / Fees

Netting Indicator
@ Item level

R/O/
C
R

Description/Action
Type of Purchase Order Assigned to Contract

Quantity to be recevied from the vendor for

the period

Vendor Number;assigned to Sales Customer

Condtions relaetd to the Pricing and Fees for

the Purchase Call off

This indicator determines whether the

customer invoices and the invoice receipt
documents are blocked for the netting
program.

3.3 Goods Receipt

Transaction Code: MIGO
This process allows you to enter all the relevant data on the receipt of product that
is delivered from a vendor based on a purchase order.
Process Flow
You define a purchase order as a reference document for the goods receipt and copy
the delivered items into the goods receipt. The link to the exchange agreement is
established when a goods receipt for an order is entered.
You determine and enter the actual quantities of the material delivered.
You post the goods receipt.
The system updates the stocks.
Result
In the Exchanges area, a goods receipt is always referenced to a purchase order.
That establishes a link to the exchange agreement.
When a goods receipt is posted, the system creates a material document and an
accounting document.
The following data from the exchange agreement is copied from the purchase order
into the material document, which serves as proof of the goods movement:
Exchange number
Netting blocking indicator
Sub-product/base product relevance indicator
As with the purchase contract and the call-off, the system displays this data on the
screen for each item.
The accounting document contains the line items required for the movement. The
line items are posted to FI (Financial Accounting) accounts.

Menu
Path

T-Code

Logistics Exchanges Exchange Operations

Exchange Receipts Goods Receipt

Create Goods Receipt: Initial screen

Material Document Posted

Accounting Document Posted

3.4 Create Invoice Receipt

Transaction Code: MIRO
Logistics Invoice Verification is part of Materials Management (MM). It is situated at
the end of the logistics supply chain that includes Purchasing, Inventory
Management, and Invoice Verification. It is in Logistics Invoice Verification that
invoices are verified in terms of their content, prices and arithmetic. When the
invoice is posted, the invoice data is saved in the system. The system updates the
data saved in the invoice documents in Materials Management and Financial
Accounting.

Menu
Path

T-Code

Logistics Exchanges Exchange Operations

Exchange Receipts Logistics Invoice
verification

Enter: Document Date & Posting Date and select Movement Type.

Follow on Accounting Document

Make sure that the FI Document line item has the Exchange Number
and Block Updated

Section 4: Sales Process

4.1 Sales Contract
Transaction Code: VA41
A quantity contract is an agreement that your customer will order a certain
quantity of a service from you during a specified period. The contract
contains basic quantity and price information but no schedule of specific
delivery dates and quantities. The customer fulfills a contract by placing
sales orders against it. These sales orders are known as release orders (or
call-offs).
You can specify in the contract which other partners in addition to the sold-to
party are authorized to release against the contract. When you create a
release order, you refer to the relevant contract, and the system
automatically updates the released quantities in the contract.
This transaction is used to create a Contract for various product sales.
It includes data such as contract type, product division, plant, storage
location, quantity, unit of measurement, sold party, ship to party, contract
validity etc.

Menu
Path

Logistics Exchanges Exchange Operations

Exchange
Deliveries
Create
Contract

T-Code

Enter Contract
Division.
Field

Type,

Contract Type
Sales Organization
Distribution
Channel
Division
Field

Sales

R/O/
C

Distribution

Channel

Description/Action

Type of Contract(For Gas sales it is ZNCQCairn Gas Quat.Cont.)

Sales organization responsible for sale to

customer

Channel

Product Division

R/O/C Description/Action

Sold-to party

Ship to Party

Organization,

Sold to party will be updated itself; as it is

linked to vendor in exchange and will be
picked form the Customer Vendor
Relationship in the Masters
R

Maintain the ship to party; maintain different

code if shipping address is different from sold to
party

PO Number

Provided by the Customer

PO Date

PO Date

Validity From & To

Date

Quantity Contract Validity From Date will

also be updated;
Enter the Quantity Valid to Date

and

Maintain the required Contract Item data:

Field
Material

R/O/C Description/Action
R

Material Code to be sold to customer

Target Quantity for the Complete Contract

Validity

Plant

Delivering Plant

Storage Location

Mandatory to enter the Storage location for the

required Gas

Shipping Point

Shipping Point within the Plant

Payment Terms

Payments terms with the customer

Profit Center / WBS

Profit Center is updated form material master

Target Quantity

After Maintaining the Material & Target Quantity along with the Price
Conditions Save and following Screen will appear

The Screen will go back to the Exchanges Screen

SAVE the Exchange

4.2 Sales Call Of

Transaction Code: VA01
With this process, you can create and process customer orders with reference to a
contract. Through the assignment of the contract to an exchange agreement, a link
is also established between the call-off and the exchange agreement.
Process Flow
You create a contract call-off with reference to a quantity contract.
You enter the individual order items, or you change the order items and order
quantities that were copied from the quantity contract by the system.
You can maintain the quantity schedule, the fees, and a base product and terms of
payment for invoicing cycles for every item.
You save the order.
Result

Because the contract is assigned to an exchange agreement and the contract calloff references the contract, the following data is copied from the exchange
agreement into the call-off:
Exchange number
The netting blocking indicator
Sub-product/base product relevance indicator
Value-added tax indicator for internally-posted material
Base product
Base location

Menu
Path

Logistics Exchanges Exchange Operations

Exchange Deliveries Create Sales
Call Of

T-Code

Create Sales Call of wrt to Contract

Enter Header and Item Data

4.3 Delivery

Transaction Code: VL01N

You can create and process deliveries with this process.
Process Flow
You choose a shipping point.
You create a delivery with reference to a call-off. The system creates the link to the
exchange agreement via the order (call-off).
You carry out picking.
You post the goods issue.
Result
In Exchanges, a delivery is carried out with reference to a contract call-off and is
thus also linked to the exchange agreement.
The following exchange agreement data is copied from the contract call-off into the
delivery:
Exchange number
The netting blocking indicator
Sub-product/base product relevance indicator
Base product
A material document and an accounting document are created for the goods issue.
All of the postings that are made for the goods movement are listed in the
accounting document.

Menu
Path

Logistics Exchanges Exchange Operations

Exchange Deliveries Delivery

T-Code

Outbound Delivery creation with respected to Sales Call

of

Material Document with Exchange Number

4.4 Invoice Creation

Transaction Code: VF01
Umbrella term for invoices, credit memos, debit memos, pro forma invoices
and cancellation documents. The billing document is created with reference
to a preceding document, in order to create an invoice or a credit memo, for
example.

When creating a billing document, the billing data is forwarded to Financial

Accounting.
Billing documents can be created:
With reference to a sales order
With reference to a delivery

Can be referred to an entire document, individual items or partial quantities

of items.
Can create billing documents in the following ways:
By having the system process a billing due list automatically as a
background task
By processing manually from a work list
By creating a billing document explicitly

Menu
Path

Logistics Exchanges Exchange Operations

Exchange Deliveries Billing

TCode

On the Initial Screen Enter the Following:

Field
R/O/
Description/Action
C
Billing Type
Billing Date
Delivery
/ Sales
Order Number

Billing type for the kind of process involved

Billing Date to bill to the customer

Delivery number

Accounting Document Posted with Netting Indicator and

Exchange Number

Section 5: Netting Procss

5.1 Financial Based Netting

In an exchange, in which for example, fees, taxes, or material are billed to the
exchange partner, it is normal business practice to collect the bills (billing
documents) into one billing document and then settle up with the exchange partner,
rather than billing each goods movement to the exchange partner separately.
Netting consists of two areas:
Posting payables or receivables
Offsetting payables and receivables
Posting Payables or Receivables
If netting has been agreed on (by the exchange partners), the system posts the
receivables to the exchange partner customer account during the creation of a
billing document. The receivables posted to the exchange partner are then blocked
for collection.
If a goods receipt has taken place, the system posts the payables to the exchange
partner customer account during invoice verification. The payables are blocked for
payment.
Ofsetting Payables and Receivables
When netting has been selected, the system creates a link between the customer
account and the vendor account for a specific exchange partner. The items relevant
to netting in those accounts are then offset. The difference is then a single open
item, which is charged to the exchange partner or which has to be paid to the
exchange partner.

5.1.1 Create Netting Selection

Menu
Path

Logistics Exchanges Exchange Operations

Netting Financial Based Netting Netting
Selection

TCode

Click on Selection Criteria to Select the Options.

Initial List does not Show Exchange Number which is mandatory to list the
documents for Netting. SAP Incident opened for this has the reply below:

SAP Incident Raised FI Based Netting is not

supported anymore
{The message has been taken over from Patrick. I continued to analyses the issue
and here are the findings. The entries that you see in the selection screen O54X,
O54Y and O54Z are basically picked from the table T021R. We observed that the
entries for Exchange number are missing in this table. Please try to maintain the
entries first.
For the entries in T021R, we have the below entries in our internal system.
EVENT
SELPS FELDN
SELKK
05
OIEXGNUM
SELKD
08
OIEXGNUM
You can use the customizing transaction O7F4 and maintain the entries for Account
type "D Customers" and "K Vendors" Then try to recreate Netting cycle selection
with O54X and then perform the netting process.
As we already mentioned earlier, we would like to bring to your notice that SAP does
not recommend the usage of financial based Netting for several years now.
Kindly note this. Hope this response helps you to take the next steps successfully.
Regards,
Hema
SAP Oil & Gas Downstream SAP SE, Germany
Following Screen will appear: Exchange Number is mandatory to select here. If not
visible then add with above steps listed with 07F4 Transaction

Click on the Tick Button: Enter the Exchange Number and Period for the Selection
criterion and SAVE

SAVE

Following Screen will appear

5.1.2 Create Netting Document

Menu
Path

Logistics Exchanges Exchange Operations

Netting Financial Based Netting Netting
Document

TCode

Initial Screen

Execute

Following Screen will appear with the Netting Document. This will
have the Balance after the Vendor Payables and Customer
Receivables.

Right Now this is Not supported by SAP anymore

so Netting Process is shown in Movement based
netting

For the Balance and BTCI follow the Process provided in Movement
Based Netting after Netting Document created on Page : -

5.2 Movement Based Netting

Like basic netting, movements-based netting collects receivables and payables in
an exchange and offsets them against each other.
The difference between movements based netting and the standard netting is the
method by which the system selects the documents to be settled: based on goods
movements that refer to the exchange agreement.
The system calculates the netting balance as a sum of the receivables and
payables. You either bill the balance to your exchange partner, or you pay the
amount.
You can create a statement (printout) for the movements-based netting document,
and you can send it to your exchange partner. Your exchange partner can then
check the statement. If your exchange partner reports any changes to you, you can
then still change the movements-based netting document, so long as you have not
created a batch-input session. When the batch input session is run, the accounts are
cleared and difference postings are carried out.

Process Flow
You agree to an exchange with movements-based netting with your exchange
partner.
You create invoices for your exchange partner. The receivables with respect to your
exchange partner are blocked for collection.
You receive billing documents from your exchange partner and post them in the
invoice verification. The payables with respect to your exchange partner are blocked
for payment.
You create the netting document along with information on the exchange partner
and the netting document type.
You determine the selection criteria (for example, exchange number, exchange
type, material, etc.).
In addition, you can define, whether the netting default:
Is to take LIA documents into account
Should take into account pure financial balancing transactions
Should take into account goods movements without financial postings
Should calculate balances for each base product and each exchange number
You create the netting proposal.
The system defaults a list of open items for netting. You check the default list and
choose the corresponding document numbers that you want to be included in
netting.
You post the netting document either:
1. Without batch-input, that is, your accounts and the accounts of your
exchange partner will not be settled yet, or
2. With batch-input. By starting a batch-input session, your receivables and
payables with respect to your exchange partner are offset (account
settlement, difference posting).

5.2.1 Create Movement based Netting Document

Menu
Path

Logistics Exchanges Exchange Operations

Netting Movement Based Netting Netting
Document

TCode

Initial Screen

Press Enter
Enter the Following Data

Field
Exchange Type
Period
Indicators

R/O/
C

Description/Action

Number of Excahnge

Month to Select the Movement Document for

Netting

Movment W/0 Financial If Billing not done

LIA If material Internal

ALV

List Documents

Click on Netting Proposal

Now the Deliverers and Receipt are taken into account and Net balance is
proposed for the same. SAVE
5.2.2 Change Movement based Netting Document

Menu
Path

Logistics Exchanges Exchange Operations

Netting Movement Based Netting Netting
Document

TCode

Initial Screen : Enter the Netting Document Created

Click on the SAVE and Create BTCI

Status Message Displayed with Batch Input NT**********

created

5.2.3 Execute Batch Input

TCode

Select the Required Batch Input and Click on Process

Check the Log :

1. All Customer Open Item Cleared with FI Document Posted

2. All Vendor Open Item Cleared with FI Document Posted
3. New Single Open Item Created for the Required (Customer /
Vendor ) as per Netting Receivables or Payables

TCode

FBL1N or FBL5N
Check in Vendor Balances or Customer Balances for the Open Item
cleared and posted for the month and Company Code

Section 6: Logical Inventory

Transaction Code: O3AI

The LIA serves the purpose of settling an exchange agreement with internal
material settlements. In internal material settlements, the material is not billed to
the partner, but rather the quantity of material is internally posted. The internal
material settlement results in a "logical inventory adjustment" being posted for
each goods movement for the material. The logical inventory for a material means
the material quantity, which, due to exchange movements that took place, exists as
payables or receivables with respect to the exchange partner. Logical inventory can
be settled using an LIA, in which settlement is in material quantities.
It is also possible to settle the difference between delivered and received material
with a payment. Open quantities can also be transferred to another exchange
agreement, which has the effect that the items in the first exchange agreement are
settled and the exchange agreement can be closed.

Menu
Path

Logistics Exchanges Exchange Operations

Logical Inventory Adjustments Create LIA

TCode

For Exchange Agreements: Borrow and Loan or Material is

internally posted without Invoicing
6.1 Financial Adjustments

6.2 Quantity Adjustments

SAVE

Section 7: Configuration
7.1 Define Number Ranges

7.2 Define Exchange Types

Field
Exchange Type

R/O/C
R

Description/Action
None - No evergreen contract. The quantity
you enter in the contracts is the quantity
which can be called off in total.
Regular - Regular evergreen contract. The
quantity you enter in the contract is the
quantity which can be called off per period.
Periods are defined in the quantity
schedule.
Unlimited - Unlimited evergreen contract. A
quantity in the contract has to be entered,
but is not taken into account for control
purposes. Unlimited quantity can be called
off.

Exchange Partner

Posting Rules

Vendor
Number;assigned
to
Sales
Customer( this code caries according to the
assignment with the customer
Material / Taxes / Fees
There are 2 types of posting rules for fees:
External
The fee is invoiced
Internal
The fee is not invoiced, but is written to an
internal account.

Netting Indicator

Appl Fee
BI
(Breakdown
Indicator

Quantity)

This indicator determines whether the

customer invoices and the invoice receipt
documents are blocked for the netting
program.
When this indicator is set, at least one fee
has to be assigned to either a sales or a
purchase contract.
The breakdown indicator is used in the
quantity schedule to define the length of
a breakdown period for call-offs against a
contract.
The breakdown indicator of a contract
scheduling line is used as a default at the
time of the creation of the quantity
schedule for a call-off. The relevant
contract scheduling line will be selected
according to the delivery date.
*
D
M
Q

T
W
SI (Split Indicator
Quantity)

How to split quantity in quantity schedule

Definition
The quantity schedule is split into various
schedule lines according to the scheduling
indicator, which determines whether the
schedule is weekly, monthly or based on
another unit of time.
The split indicator in this field indicates
whether the individual quantities are
assigned to equal periods or based on
workdays.
Assigning the quantity by workdays:
This is dependent on how many workdays
there are per
No split, assignment of the given qty.
equally to periods:

S/B Indicator

Sub product/ base product relevance

indicator
Definition
This is a pricing routine invoked when
goods movements are posted for this
exchange
and
there
are
product
relationships.
It is used to determine the value of the
material posting.
Further notes
The two possible routines delivered take
advantage of the price reference plant
functionality.
The sub/base product indicator is copied
into items on all sales and purchasing
contracts.
1
Real plant valuatn.
2
Ref. plant valuation
101 TO Terminalling

Sub/base product

Sub/base product user exit routine

Definition
In this field, you can enter a user exit,
which is used to check if the base product
assignment is correct (given that the
exchange is sub-product/base productrelevant).
For example, you can check if the base
product assignments to sub-products are

consistent within an exchange agreement.

1
Single contract
2
All contracts
101 TO Terminalling
VAT

Indicates the intention to pay value-added

tax on the estimated product value within
an exchange agreement, under which the
material is posted internally and not
invoiced by the vendor (Borrow/Loan
Exchange).

Additional

User exit for displaying additional data from

SD and MM documents in the exchange
transaction.

Own

Ownership check indicator

Ownership checking
This
indicator
identifies
revenue
terminalling agreements.
Use
When you select the ownership check
indicator, the system marks the underlying
exchange agreement as a terminalling
agreement for third-party throughput (the
owners of terminals allow their partners to
store products in them). These types of
agreements are also referred to as TO Terminalling for Others.
For terminalling agreements, the system
does not update the valuation of the logical
inventory
when
processing
goods
movements
or
logical
inventory
adjustments.

Description

7.3 Define Fee Account Assignment

Conditions

7.4 Define Account Assignment

1.
2.
3.
4.

For Fee Internal and External

For Tax External
For Material Internal
4. For Netting (Vendor / Customer / Balance)

7.5 Quantity Schedule and Breakdown

Indicator

7.6 Exits for Netting

7.7 Output and Forms Assignment for Netting

Statements