Iog320 en 46C

IOG320 SAP Oil & Gas Exchange Business
SAP Oil & Gas

Exchange Business
SAP AG 2001
n R/3 System
n Release IS-OIL 4.6C
n Collection 21
n January 2002
n Material number: 50050262
© SAP AG IOG320 Preface-1

Copyright
Copyright 2001 SAP AG. 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 AG. The information contained herein may be changed
without prior notice.
All rights reserved.
SAP AG 2001
Trademarks:
n Some software products marketed by SAP AG and its distributors contain proprietary software
components of other software vendors.
n Microsoft®, WINDOWS®, NT®, EXCEL®, Word®, PowerPoint® and SQL Server® are registered
trademarks of Microsoft Corporation.
n IBM®, DB2®, OS/2®, DB2/6000®, Parallel Sysplex®, MVS/ESA®, RS/6000®, AIX®, S/390®,
AS/400®, OS/390®, and OS/400® are registered trademarks of IBM Corporation.
n ORACLE® is a registered trademark of ORACLE Corporation.
n INFORMIX®-OnLine for SAP and INFORMIX® Dynamic ServerTM are registered trademarks of
Informix Software Incorporated.
n UNIX®, X/Open®, OSF/1®, and Motif® are registered trademarks of the Open Group.
n HTML, DHTML, XML, XHTML are trademarks or registered trademarks of W3C®, World Wide
Web Consortium, Massachusetts Institute of Technology.
n JAVA® is a registered trademark of Sun Microsystems, Inc.
n JAVASCRIPT® is a registered trademark of Sun Microsystems, Inc., used under license for
technology invented and implemented by Netscape.
n SAP, SAP Logo, R/2, RIVA, R/3, ABAP, SAP ArchiveLink, SAP Business Workflow, WebFlow,
SAP EarlyWatch, BAPI, SAPPHIRE, Management Cockpit, mySAP.com Logo and mySAP.com
are trademarks or registered trademarks of SAP AG in Germany and in several other countries all
over the world. All other products mentioned are trademarks or registered trademarks of their
respective companies.

mySAP.com Oil & Gas
Level 2 Level 3
LO510 3 days
Inventory
Management
LO020 4 days LO515 3 days

Processes in
Procurement Invoice Verification
IOG150 5 days
Oil & Gas
Industry Supply Chain LO620 3 days
LO150 5 days
Pricing
Processes in Sales
and Distribution
IOG320 2 days
Oil & Gas Exchanges
Business
IOG130 3 days IOG330 3 days

Oil & Gas Exploration & Bulk Transportation
Production & Shipment Costing
IOG350 3 days
Service Station
Retailing
SAP AG 2001

Course Prerequisites
l Essential:
n IOG 150 – Oil&Gas Supply Chain
n Good Knowledge of Sales and Purchasing
l Recommended:
n Oil&Gas Business Knowledge
n LO510 – Inventory Management
n LO515 – Invoice Verification
n LO620 – Pricing
SAP AG 2001

Target Group
l Audience:
n Project team members and leaders responsible for
implementing basic functions in the Exchange Module
l Duration: 2 days
SAP AG 2001
Notes to the user

n The training materials are not teach-yourself programs. They complement the course
instructor's explanations. On the sheets, there is space for you to write down additional
information.

Course Overview
Contents:
l Goals
l Objectives
l Content
l Overview Diagram
SAP AG 2001
© SAP AG IOG320 1-1

Course Goals
This course will allow you to:
l Deepen your understanding of exchange

functionality in the R/3 System.
l Acquire the necessary knowledge to set up key
system configuration for exchange processing.
SAP AG 2001

Course Objectives
At the conclusion of this course, you will be able to:
l Describe exchange business scenarios.

l Define the benefits of Exchange Agreements.
l Perform R/3 transactions which support typical
exchange business processes.
l Setup configuration for different types of exchange
business processes.
SAP AG 2001

Course Content
Preface
Unit 1 Course Overview Unit 7 Purchase Assignment
Unit 2 Business Background Unit 8 Sub/Base Relationship
Unit 3 Exchange Agreement Setup Unit 9 Split Condition Processing
Unit 4 Daily Business Flow Unit 10 Exchange Reports
Unit 5 Logical Inventory Unit 11 Other Features
Unit 6 Settlement Unit 12 Conclusion
Any exercises and solutions are at the end of the respective unit
SAP AG 2001

Course Overview Diagram
Unit 01
Course
Course overview
overview
Business
Business
Conclusion
Conclusion
background
background
Exchange
Exchange agreement
agreement
Other
Other features
features
setup
setup
Exchange
Exchange reports
reports Daily
Daily business
business flow
flow
Split
Split condition
condition
Logical
Logical inventory
inventory
processing
processing
Sub/base
Sub/base
Settlement
Settlement
relationship
relationship
Purchase
Purchase assignment
assignment
SAP AG 2001

Business Background
Contents:
l Discussion of business reasons for exchange
SAP AG 2001

Business Background: Unit Objectives
At the conclusion of this unit, you will be able to:
l Describe the business reasons for exchange

processing
SAP AG 2001

Course
Course overview
overview
Unit 02
Business
Business
Conclusion
Conclusion
background
background
Exchange
Exchange agreement
agreement
Other
Other features
features
setup
setup
Exchange
Exchange reports
reports Daily
Daily business
business flow
flow
Split
Split condition
condition
Logical
Logical inventory
inventory
processing
processing
Sub/base
Sub/base
Settlement
Settlement
relationship
relationship
Purchase
Purchase assignment
assignment
SAP AG 2001

Why Exchange?
l To expand into marketing areas where a company does

not have infrastructure.
l To exploit excess capacity where a company does have
the infrastructure.
l To minimize transportation costs.
SAP AG 2001
n There are many reasons for entering into an exchange agreement.

n Essentially, the basic reasons are:
To expand into marketing areas where the company does not have enough infrastructure to cope
with demand for their product.
To exploit excess capacity in a region where a company does have the infrastructure.
To minimize transportation costs.

Exchange Scenario
Co. 1 Co. 2
SAP AG 2001
n In the above illustration, company 1 operates in one region of the country. They are able to produce
the product and easily transport it to their customers in that region.
n Company 2 also markets in the same region as company 1. High transportation costs or restricted
access to transportation (e.g. limited pipeline allocation) are good reasons for company 2 to enter
into an exchange agreement with company1.
n A company may have excess capacity. Not only are they unable to meet the market demands of their
own customers, but also the needs of the exchange partner.

Business Background: Unit Summary
You are now able to:
l Describe the business reasons for exchange

processing
SAP AG 2001

Exchange Agreement Setup
Contents:
l Exchange Agreement Overview

l Exchange Agreement Header
l Evergreen Contracts
SAP AG 2001

Exchange Agreement Setup: Unit Objectives
l Create an Exchange Agreement Header

l Define the two types of evergreen contracts
SAP AG 2001

CourseOverview
CourseOverview
Business
Business
Conclusion
Conclusion
Background
Background
Unit 03
Exchange
Exchange
Other
Other Features
Features
Agreement
Agreement Setup
Setup
Exchange
Exchange Reports
Reports Daily
Daily Business
Business Flow
Flow
Split
Split Condition
Condition
Logical
Logical Inventory
Inventory
Processing
Processing
Sub/Base
Sub/Base
Settlement
Settlement
Relationship
Relationship
Purchase
Purchase Assignment
Assignment
SAP AG 2001

Exchange Agreement Setup (I)
Exchange
Exchange Agreement
Agreement Header
Header
Receipts
Receipts Deliveries
Deliveries
Balance
Settlement
Settlement
SAP AG 2001
n The basic business process flow for exchange process is shown on this slide:
The exchange agreement header is where the exchange partner is identified and where certain
controls about the exchange type are defined. Sales and purchase contracts are assigned to the
exchange agreement header and define the particulars about which products are exchanged and
which fees apply to each product movement.
Exchange receipts and exchange deliveries represent actual product movements against the
exchange. Exchange receipts are recorded in the Materials Management (MM) module. Exchange
receipts are recorded in the Sales & Distribution (SD) module.
In a borrow/loan exchange, the system tracks the balance of product owed or owing against the
exchange.
Finally, settlement represents the process of paying for fees, taxes and/or product on a periodic
basis, usually monthly.

Exchange Agreement Setup (II)
Exchange
Purchase contracts Agreement Sales contracts
(vendor master) Linked (customer master)
Receipts
Receipts Deliveries
Deliveries
Balance
Settlement
Settlement
SAP AG 2001
n The standard system has been enhanced to provide exchange functionality. The MM module has
been enhanced to record exchange receipts, while the SD module has been enhanced to record
exchange deliveries.
n The MM module utilizes a vendor master record and the SD module utilizes a customer master
record. For exchange purposes, the vendor and customer are the same exchange partner. Therefore,
the vendor master record is cross referenced with the customer master record. And the customer
master record is cross referenced with the vendor master record.
n This link is a one-time set-up and is required for exchange functionality to work.

Exchange Agreement Setup (III)
Control
Control data
data
Administrative
Administrative data
data
Exchange
Exchange header
header
Posting
Posting rules
rules
Sales Fees
Fees
contract
Purchase Quantity
contract Quantity schedule
schedule
Item
Item
Materials
Materials
SAP AG 2001
n The exchange header data is made up of general information for each exchange agreement as well as
the corresponding detailed information.
n You have to choose if you want to use an evergreen type (it determines how quantities are handled in
contracts, e.g.the quantity that you can call off in total, the quantity that you can call off per period,
or unlimited).
n You choose internal or external posting rules: With internal postings and material, taxes and/or fees
are posted to internal accounts. With external posting and material, any taxes and/or fees are charged
to the exchange partner.
n You also enter control data such us sub/base-, quantity schedule- and netting indicators.

Evergreen Contracts
Evergreen is a long-term exchange

contract with no fixed end date and
no fixed quantity. There are two
types of Evergreen Contracts:
l Partners can lift as
d
ite en much product as ar n
li m re they require - no gul ree
Un verg act Re verg act
E ntr quantity schedule E ntr
Co is used Co
l A quantity per
period is defined -
quantity schedule
must be used
SAP AG 2001
n Evergreen is a long term exchange contract without a fixed end date. The agreement is ongoing and
gets renegotiated on a regular basis. The partners then decide if the evergreen is valid for another
period or if the evergreen is closed.
n We distinguish between unlimited and regular evergreens. With unlimited evergreen, there is no
quantity defined. The exchange partners can lift as much product as they require and for any period
of time. Therefore no quantity schedule is used in that case.
n It differs from a regular evergreen because for regular evergreens, a quantity schedule is used to
define the quantity of the product for exchange.

Evergreen Contracts - Dates
Start date
Copy into sales &
January February
purchase contracts March April
MT WT F S S MT WT F S S MT WT F S S MT WT F S S
Closing date
May June • Copy into contracts
July August
MT WT F S S MT WT F S S •
M T W T FNo
S further
S M call-offs
T WT F S S
Review date • Further movements
Mandatory for regular
end date quantity
schedule
September October November December
MT WT F S S MT WT F S S MT WT F S S MT WT F S S
SAP AG 2001
For both the regular and the unlimited evergreen, you can specify:
n A start date. This marks the start date of the agreement and is copied into the related sales and
purchase contracts.
n A review date. For regular evergreens, this date is copied into the quantity schedules of the related
sales and purchase contracts. Whenever this date is changed, the related quantity schedules are
adjusted automatically.
n A closing date. When filled, this date is copied into the related sales and purchase contracts and
prevents any call-offs or movements being posted under this agreement.
n While the start date is mandatory for both evergreen types, the review date is only required for the
regular evergreens. The closing date is optional.

Evergreen Contracts - Regular
Contract item Quantity schedule
Exchange Period 1 1000 L

agreement
1000 L Period 2 1000 L
Review date Period 3 1000 L
Period n 1000 L
Quantity
per period
SAP AG 2001
n In contrast to unlimited evergreens, regular evergreen contracts contain a quantity schedule.

n In this quantity schedule, you control the quantity which is allowed to be delivered or received per
period.
n You specify the period on the agreement header. This period can be a day, a week, 10 days or a
month.
n You specify the quantities on the related sales and purchase contracts.
n A flexible message handling system enables you to specify if deliveries or receipts exceeding the
quantity schedule should be allowed or not.

Exchange Agreement Setup - Exercise
l Cross reference customer and vendor master

records
l Create exchange contract header
l Assign purchase and sale contracts
SAP AG 2001

Agreement Setup: Unit Summary
l Create an Exchange Agreement Header

l Define the two types of evergreen contracts
SAP AG 2001

Exercises
Unit: Exchanges
Topic: Exchange Agreement Setup
At the conclusion of this exercise, you will be able to:

• Create exchange agreements
• Explain posting rules, administrative & control data
• Assign purchase and sales contracts to the exchange agreement
AOIL uses exchange agreements with an oil industry partner in order to

exchange product. AOIL uses exchange contracts to buy product from the
oil industry partner and to sell product to the partner. AOIL uses quantity
schedules for the planning and monitoring of material quantities.
3-1 Set up an exchange agreement with your oil industry partner.

3-1-1 In order to create an exchange agreement, you will want to check whether a
link between the vendor and the customer master record exists. Check the
master data for CUST02-## and VEND02-##.
____________________________________________________________
3-1-2 Create an exchange agreement (the “regular evergreen type”) with your
partner.
Exchange type: Borrow/Loan regular
Exchange partner no.: VEND02-##
Exchange number: [ ] (internal number range)
Partner reference: []

3-1-3 What purpose do the following default values in the Posting Rules screen
area have?
Material: ___________________________________________
Fees: ___________________________________________
Taxes: ___________________________________________
What purpose do the following values in the Control data screen area have?
Quantity schedule breakdown: ________________________________
Quantity schedule split: __________________________________
Apply fee check: __________________________________
Netting active: __________________________________
Enter the following data for your exchange agreement.:
Netting cycle: Netted exchange
Closing date or review date: (End of the year)
Save the exchange agreement and make a note of the document number.
____________________________________________________________
3-1-4 Where do you specify the default values for the fields above?
____________________________________________________________
____________________________________________________________
3-1-5 What is the difference between "unlimited" and "regular" exchange
agreements?
____________________________________________________________
____________________________________________________________
____________________________________________________________

3-2 In order to be able to enter material, quantity and fee details, assign sales and
purchase contracts to the exchange agreement.
3-2-1 Create a sales contract for the exchange agreement (from the Exchanges
Operations menu).
Contract type: CQ (Quantity contract)
Sales area: AESO/A1/A1
Material: REGULAR-##
Target quantity: 100000 GAL
Do not save the data yet.
3-2-2 For location and handling costs, you will have to assign location (LOCN)
and handling fees (HAND) to the sales contract.
What are the default values for?
LOCN: __________________________________
HAND: __________________________________
Assign the fees, but do not save the data yet.
3-2-3 Check the quantity schedule. What is the quantity assigned per month?
____________________________________________________________
____________________________________________________________
Save the contract and make a note of the document number.
____________________________________________________________
3-2-4 Create a purchase contract for the exchange agreement.
Agreement type: MK (Quantity contract)
Agreement date: (Today’s date)
Purchasing organization: APUR
Purchasing group: APU
Plant: AP02
Storage location: A2L1
3-2-5 Maintain handling and location fees. What are the default values for the
appropriate conditions?
LOCN:__________________________________
HAND:__________________________________
___________________________________________________________

Solutions
Unit: Exchanges
Topic: Exchange Agreement Set-up

3-1-1 In order to create an exchange agreement, check whether a link between the
vendor and the customer master record exists.
Choose Logistics → Exchanges → Master Data → Customer → Display
Enter your customer.
Customer: CUST02-##
Select the Control data tab. In the Control data view, you can see the link to
VEND02-##.
Choose Logistics → Exchanges → Master Data → Vendor → Display
Enter your vendor.
Vendor: VEND02-##
Select the Control view and choose Enter. In the Control view, you can see
the link to CUST02-##.
3-1-2 Create an exchange agreement (the “regular evergreen” type) with your
partner.
Choose Logistics → Exchanges→ Exchange operations → Create exchange
agreement
Exchange partner No.: VEND02-##
Exchange number: [ ] (internal number range)
Choose Header (F5) to go to the Create Exchange Agreement Header
screen.
3-1-3 In the Posting rules area of the screen, the following values are already
selected:
Material - internal, which means the material is posted to internal accounts
and not invoiced to the exchange partner.
Fees and taxes – external, which means with external posting, any taxes
and/or fees are charged to the exchange partner.
The following values are defaulted in the Control data area of the screen:
The quantity schedule breakdown indicator is Monthly, which means the
duration of a breakdown period is a month.

The quantity schedule split indicator is Assign whole quantity to every
period, which means the whole quantity from the corresponding contract(s)
is assigned to every period (in this case, per month).
Apply fee check is selected, which means at least one fee has to be assigned
for each sales contract and for each purchase contract. This is checked when
a contract is created.
Netting active is selected, which means that external postings are carried out
but the open amounts are blocked for collection purposes or for payment. At
the end of a period, the receivables and payables are compared and only the
differential amount is calculated for billing purposes.
This also means you have to enter the Netting cycle as Netted Exchange,
which is copied to assigned contracts.
Enter a Closing date for the exchange agreement (the end of the year).
You could also enter a Review date, which means that a review of the
exchange agreement should be considered after that date. If it is a "regular"
evergreen exchange, the review date is used as the end date for the quantity
schedule, as long as no closing date is known.
Save the exchange agreement.
3-1-4 In Customizing, you specify the default values for each exchange type under
the following path:
Choose Tools→ Accelerated SAP → Customizing → Edit Project → Goto
→ SAP Reference IMG→ Industry Solution Oil & Gas (Downstream) →
EXG (Exchanges) → Transactions → Define exchange types
3-1-5 The exchange type Borrow/Loan unlimited has no quantity breakdown, no
quantity schedule, and therefore no quantity split. Unlimited delivery is
possible, you do not need to enter a closing or review date.
A Borrow/Loan regular only allows assignment of the whole quantity per
period. The breakdown period is variable, and you have to enter a review or
closing date.

3-2 In order to enter material, quantity and fee details, assign sales and purchase
contracts to the exchange agreement.
3-2-1 Create a sales contract for the exchange agreement .(You can immediately
create a contract from the Change exchange agreement: Contract
assignments screen on which you stay when you have saved your exchange
agreement):
Choose Logistics → Exchanges → Exchange operations → Exchange
Agreements → Change exchange agreement
Note: It is necessary to use this path to assign the contract to the exchange
agreement
Exchange number: (Exchange number from 3-1-3)
Choose: Sales Contracts tab.
With the Sales contracts tab selected, choose: Edit → Create new document
or choose Document Create in the lower part of the Sales contracts tab.
Enter the following data:
Sales organization: AESO
Distribution channel: A1
Division: A1
Choose Enter. CUST02-## is defaulted from the exchange agreement
header.
Target quantity: 100000
The unit of measure, GAL, will be defaulted when you choose Enter.
Do not save your data yet.
3-2-2 To capture location and handling costs you assign location (LOCN) and
handling fees (HAND) to the sales contract by selecting the item and
choosing Goto → Item → Additional Functions → Fee processing or press
the Fees button at the bottom of the screen.
Enter the condition types HAND and LOCN in the CnTy field, and choose
Enter. The system displays the default values.
Return to the overview screen. Do not save your data yet.
3-2-3 Check the quantity schedule by selecting the item again and choosing
Quantity schedule.
The entire quantity of 100000 GAL, or approximately 378500 L15, which is
the quantity in the base unit of measure, is assigned to each period as a
scheduled quantity.
Called-off quantities are zero.
Go back to the overview screen and save your quantity contract.

3-2-4 To create a purchase contract for the exchange agreement, choose the
Purchase contracts tab on the Contract Assignments screen.
Note: It is necessary to use this path to assign the contract to the exchange
agreement.
Choose Edit → Create new document
Or choose Document Create in the lower part of the Purchase Contracts
tab.
The vendor is defaulted and cannot be changed manually, because of the
assignment to the exchange agreement. Enter the following data:
Plant: AP02
Choose Enter. On the screen that follows, enter your material and the target
quantity:
The unit of measure, GAL, will be defaulted when you choose Enter.
Select the item and choose:
Item → Additional functions → Fee processing
Or select Fees- (Ctrl+Shift+F11). Enter the condition types HAND and
LOCN and choose Enter. The system displays the default values.
Return (F3) to the overview screen.
3-2-5 Check the quantity schedule by selecting the item again and choosing
Quantity schedule (MK).
The entire quantity of 100000 GAL, or approximately 378500 L15, which
is the quantity in the base unit of measure, is assigned to each period as the
scheduled quantity.
Called-off and intended quantities are zero.
Go back (F3) to the overview screen and save your quantity contract.

Daily Business Flow
Contents:
l Exchange deliveries
l Exchange receipts
SAP AG 2001

Daily Business Flow: Unit Objectives
l Process exchange deliveries and receipts

l Understand related accounting entries
SAP AG 2001

Course
Course overview
overview
Business
Business
Conclusion
Conclusion
background
background
Exchange
Exchange
Other
Other features
features
agreement
agreement setup
setup
Unit 04
Daily
Daily business
business
Exchange
Exchange reports
reports
flow
flow
Split
Split condition
condition
Logical
Logical inventory
inventory
processing
processing
Sub/base
Sub/base
Settlement
Settlement
relationship
relationship
Purchase
Purchase assignment
assignment
SAP AG 2001

Daily Business Flow - Exchange Delivery
Exchange
Exchange Agreement
Agreement Header
Header
Receipts
Receipts Deliveries
Deliveries
Balance
Settlement
Settlement
SAP AG 2001
n Exchange deliveries are processed within the sales and distribution (SD) module.
n Exchange deliveries are the movement of product from your own inventory to an exchange partner
or an exchange partner’s customer.

Exchange Delivery - Document View
Copy/recalculation of
Contract fees
Update of quantities in
QS in contract/call-off
Call-off
Update exchange
balance
Delivery Post accounting
doc.
Goods
issue
Invoice
SAP AG 2001
n You assign sales contracts to the exchange agreement, allowing management of exchange deliveries.
n The customer (exchange partner) fulfills the contract by placing orders from this contract (call-offs
or release orders). When you create a call-off, you make a reference to the corresponding contract
and the system automatically updates the called-off quantity in the contract.
n The breakdown period is to be copied from the quantity schedule to the contract call-off, depending
on the delivery data entered. Fees for the individual items are also copied from the contract to the
call-off.
n A delivery is carried out with reference to a call-off and is thus also linked to the exchange
agreement. The goods issue has to be posted.
n Depending on the type of outline agreement (thus depending on the exchange type) the exchange
partner is only charged for fees and taxes. If netting is provided in the exchange agreement, the
invoice is blocked and offset in subsequent netting.
n The illustration above shows the flow of documents in the R/3 System and indicates the points in the
process where the quantity schedule is updated, fees are repriced, exchange balance updated and
accounting documents recorded.

Goods Issue - Buy/Sell Agreement
Purchase contract
Exchange
Exchange Sales contract
Agreement
Agreement
General
General ledger:
ledger: Delivery
Sales call-off
Buy/Sell Agreement: Delivery

Credit: PHYSICAL INVENTORY ( - )
Goods issue
Debit: COST OF GOODS SOLD ( + )
Billing
SAP AG 2001
n Accounting documents are recorded automatically at goods movement. Therefore for exchange
deliveries, an accounting document is reported at goods issue, which is then posted to inventory
accounts.
n Since physical inventory is being reduced, it is credited. In a buy/sell exchange, the value of the
product is settled in cash, therefore the offsetting entry is posted to cost of goods sold.

Goods Issue - Borrow/Loan Agreement
Purchase contract
Exchange
Agreement
Agreement
General
General ledger:
ledger: Delivery
Sales call-off
Borrow/loan agreement: Delivery
Credit: PHYSICAL INVENTORY ( - ) Goods issue
Debit: LOGICAL INVENTORY (+)
Billing
SAP AG 2001
n Accounting documents are recorded automatically at goods movement. Therefore for exchange
deliveries, an accounting document is recorded at goods issue, which is then posted to inventory
accounts.
n Since physical inventory is being reduced, it is credited. In a borrow/loan exchange, the value of the
product is not settled in cash, therefore the offsetting entry is posted to logical inventory.

Billing - Buy/Sell Agreement
Purchase contract
Exchange
Agreement
Agreement
General
General ledger:
ledger: Delivery
Sales call-off
Buy/sell agreement: Delivery
Credit: REVENUE- Product (-)
Goods issue
Credit: REVENUE- Fees (-)
Billing
Debit: CUSTOMER (+)
SAP AG 2001
n The billing document creates the first accounting entry and records fees and excise taxes. Tax entries
are not shown in the above illustration for simplicity.
n Revenue for product, fees and/or excise taxes are recorded. A corresponding receivable is established
on the exchange customer account number.

Billing - Borrow/Loan Agreement
Purchase contract
Exchange
Agreement
Agreement
General
General Ledger:
Ledger: Delivery
Sales call-off
Borrow/Loan agreement:
Delivery
Credit: REVENUE - Fees (-) Goods Issue
Debit: CUSTOMER (+)
Billing
SAP AG 2001
n The accounting entry for a borrow/loan exchange does not include an entry for product value. The
product value is not settled monthly on a borrow/loan exchange. Instead, the product volume and
value is recorded to logical inventory and will be settled at the end of the exchange.

Daily Business Flow - Exchange Receipt
Exchange
Exchange agreement
agreement header
header
Receipts
Receipts Deliveries
Deliveries
Balance
Settlement
Settlement
SAP AG 2001
n Exchange receipts are processed within the materials management (MM) module.
n Exchange receipts are the movement of a productfrom your exchange partner into your own
inventory or that of your customer.

Exchange Receipt - Document View
Copy/recalculation of
fees
Contract
Update of quantities in
QS in contract/call-off
Call-off
Update exchange balance
Goods
Post accounting
receipt
doc.
Invoice
verification
SAP AG 2001
n You assign purchase contracts to the exchange agreement, allowing management of exchange
receipts. Call-offs are created with reference to the purchase contract. Some of the data from the
exchange header is copied into the call-off (e.g. number of the exchange agreement, netting-blocking
indicator etc.). As with the purchase contract, this data is displayed on the detail screen for each item.
n There is a quantity schedule for each item; the breakdown is copied from the purchase contract. The
breakdown period in the quantity schedule is based on the delivery date. The fees for the individual
items are also copied from the purchase contract to the call-off..
n When a goods receipt is posted, the system creates a material document and an accounting
document. In the material document, which serves as proof of a goods movement, specific data from
the exchange agreement is copied into the purchase order. Parallel to the material document, the
system creates an accounting document which contains the accruals from the fee postings, among
other things.
n Invoice verification is carried out during invoice receipt on the basis of the data previously created
during the goods receipt. During verification of a goods receipt-related invoice, each single goods
receipt is settled individually. However, open items which still have to be settled may also be
selected with reference to an exchange agreement.
n You can settle goods receipts with ERS (Evaluated Receipt Settlement) within exchange agreements
directly, without having first received an invoice. The evaluated receipt settlement automatically
creates invoice verification documents according to previously-set criteria.

Goods Receipt - Buy/Sell Agreement
Purchase contract
Exchange
Agreement
Agreement
General
General ledger:
ledger:
Receipt
Purchase call-off
Buy/sell agreement:
Goods receipt Credit: GR/IR - Product (-)
Debit : PHYSICAL INVENTORY ( + )
Invoice verification Credit: GR/IR - Fees (-)
Debit: EXCHANGE FEES (+)
SAP AG 2001
n An exchange receipt increases your physical stock. The accounting entry is therefore a debit to
physical inventory and a credit to the GR/IR (goods receipt/invoice receipt) account.
n At goods movement, an accounting entry is also made for fees. Remember that fees for exchange
deliveries are posted at billing.

Goods Receipt - Borrow/Loan Agreement
Purchase contract
Exchange
Agreement
Agreement
General
General ledger:
ledger:
Receipt
Purchase call-off
Borrow/loan agreement:
Goods receipt Credit: LOGICAL INVENTORY ( - )
Debit: PHYSICAL INVENTORY ( + )
Invoice verification Credit: GR/IR - Fees (-)
Debit: EXCHANGE FEES (+)
SAP AG 2001
n In the case of a borrow/loan exchange, the offsetting entry to physical inventory is a posting to
logical inventory. This is because in a borrow/loan exchange, the balance of product owed or owing
is recorded to logical inventory.

Invoice Verification - Buy/Sell Agreement
Purchase contract
Exchange
Agreement
Agreement
Receipt General
General ledger:
ledger:
Purchase call-off
Goods receipt
Buy/sell agreement:
Invoice verification Credit: VENDOR (-)

Debit: GR/IR - Product (+)
Debit: GR/IR - Fees (+)
SAP AG 2001
n As you can see, the GR/IR (goods receipt/invoice receipt) accounts will clear to zero. They are
simply clearing accounts used to carry the value of fees or product to the invoice verification step.
n The offsetting entry is an accounts payable entry made to the exchange vendor.

Invoice Verification - Borrow/Loan Agreement
Purchase contract
Exchange
Agreement
Agreement
Receipt General
General ledger:
ledger:
Purchase call-off
Goods receipt
Credit: VENDOR (-)
Invoice verification
Debit: GR/IR Account (+)
SAP AG 2001
n In the case of the borrow/loan exchange, there is no entry for the product value. Again, this is the
case because the value of the product was charged to logical inventory at goods receipt, and not to
the GR/IR account.

Daily Business Flow - Exercise
l Create exchange delivery

l Create exchange receipt
SAP AG 2001

Daily Business Flow: Unit Summary
l Process exchange deliveries

l Process exchange receipts
SAP AG 2001

Exercises
Unit: Exchanges
Topic: Business Flow – Receipts & Deliveries

• Complete the exchanges business flow with call-offs (“lifts”) from
purchase and sales contracts.
• Create invoice verification and billing documents manually for
exchanges transactions.
• Understand how to configure fee repricing.
AOIL’s exchange partner requests product to be delivered from AOIL

under the exchange agreement. At another location, AOIL buys product
from its exchange partner under this exchange agreement.
4-1 A customer, CUST03-##, of AOIL' s exchange partner requests product from

AOIL' s exchange partner. AOIL' s exchange partner delivers product from AOIL' s
plant. Record the lift of a specific quantity of product from the sales contract.
4-1-1 Create a call-off with reference to the sales contract (from exercise 3-2-3).
Select the contract by selecting ‘O’ in the search help.
Exchange number: (From exercise 3-1-3)
Ship-to party: CUST03-##
Order type: OR
Quantity: 20000 GAL
Save the order and make a note of the document number.
____________________________________________________________
4-1-2 Create the delivery and post the goods issue.
Shipping point: ASH1
Post the goods issue and make a note of the delivery document number.
____________________________________________________________
4-1-3 Review the accounting document for the goods issue. Which of the account
postings is specific to a borrow/loan movement?
____________________________________________________________

4-2 You receive two exchange receipt tickets to process. Therefore, you want to call off
a certain quantity of product from the purchase contract for the first ticket. Then
repeat the process for the second ticket.
4-2-1 Create a purchase order with reference to the purchase contract (from
exercise 3-2-5).
Be aware to reference the contract by entering the correct number in the
outline agreement field on line item level.
Quantity: 10000 GAL
Save the purchase order and make a note of the document number.
____________________________________________________________
4-2-2 Create a goods receipt for the purchase order from 4-2-1. Use transaction
MIGO to process the goods receipt.
Save the goods receipt and make a note of the document number.
____________________________________________________________
4-2-3 Create a purchase order with reference to the purchase contract (from
exercise 3-2-5).
Be aware to reference the contract by entering the correct number in the
outline agreement field on line item level.
Quantity: 5000 GAL
____________________________________________________________
4-2-4 Create a goods receipt for the purchase order from 4-2-3.
____________________________________________________________
4-3 Due to the fact that the handling condition has changed for your material, it is now
necessary to adjust the valid handling fee rates.
4-3-1 Adjust the sales fee rate for your exchange partner.
Condition type: HAND
Plant AP01
Fee rate: 0,12 USD / GAL
4-3-2 Adjust the purchase fee rate for your exchange partner.
Vendor: VEND02-##

4-4 At the end of the month, you want to settle (balance) the exchange transactions. In
order to view the condition details, you use manual invoice verification and billing
(which is not possible using the ERS and the billing due list - which is described in
unit 6).
4-4-1 Carry out a manual invoice verification for the purchase order.
Invoice date (Today’s date)
Posting date: (Today's date)
Company code AOIL
Currency USD
Exchange number: (Exchange number from 3-1-3)
Amount: 0 (will be calculated later)
Calculate tax:
Invoice filter: Fees
Reference document category: Purchase order/scheduling agreement
What material price is calculated by the system, and why?
____________________________________________________________
____________________________________________________________
Do not post the invoice verification yet.
4-4-2 Include all fees for your exchange agreement in the invoice verification.
What is the rate for the handling fee?
____________________________________________________________
____________________________________________________________
Post the invoice verification and make a note of the document number.
____________________________________________________________
4-4-3 Review the accounting document for the invoice verification. What kind of
posting would you have expected if this was a buy/sell agreement?
____________________________________________________________
____________________________________________________________
4-4-4 Bill the delivery.
Delivery: (Delivery number from 4-1-2)
What does the billing amount consist of?
____________________________________________________________
____________________________________________________________
What is the rate for the handling fee?
____________________________________________________________
____________________________________________________________
Post the invoice and make a note of the document number.
____________________________________________________________

4-4-5 Review the accounting document for the invoice you have just created. How
do you set up the system so that both handling and location fee amount are
posted to the same revenue account?
____________________________________________________________
____________________________________________________________
____________________________________________________________
4-4-6 How do you configure the system when you want to redetermine fee rates or
when you want to only copy the fee rates during billing and invoice
verification?
____________________________________________________________
____________________________________________________________

Solutions
Unit: Exchanges
Topic: Business Flow – Receipts & Deliveries
4-1 Deliver product to your exchange partner’s customer.

4-1-1 To create a call-off with reference to the contract, proceed as follows:
Choose Logistics → Exchanges → Exchange Operations → Exchange
deliveries → Sales call-off → Create sales call-off.
Order type: OR
It is important to choose Create with reference (F8) to create a sales order
with reference to the sales contract that you created before.
Select the contract tab on the Create with Reference dialog box. Enter the
contract number from exercise 3-2-3 and choose Copy
(Note: You can find the contract by selecting ‘Sales itm.per Exchange
(Partner/Sorg/ExgT/ExgNo/Mat./Plnt.)’ in the search help. Enter exchange
number from exercise 3-1-3).
Select the Ship-to party CUST03-## from the selection window.
Enter the call-off quantity:
Order quantity: 20000 GAL (Overwrite the proposed quantity)
Familiarize yourself with the data in the overview screen, and save the call-
off.
4-1-2 Create the delivery and the subsequent goods issue for the call-off:
deliveries → Delivery → Create.
Selection date: (Today’s date)
Order: (Order number from 4-1-1)
Typically, this data is defaulted by the system. Select Enter.
Select the Picking tab and enter the storage location: A1L1.
Choose Edit → Post goods issue (or choose Post goods issue)

4-1-3 Display the accounting document for the goods issue.
First display the document flow for the delivery:
From the Create Delivery screen, choose Outbound delivery → Display.
The system defaults the delivery number which you have just created.
Choose Environment → Document flow.
In the document flow, the system lists all documents which relate to the
delivery, which are the contract, order, and goods issue document. Position
the cursor on the goods issue and choose Display document. In case a pop-
up window appears, choose the correct fiscal year.
Now you see the material document for the goods issue. To display the
accounting document, choose Accounting docs.
Here you see that the material value is posted on the inventory account Exg
mat int rec, which represents the value of the logical inventory together with
the Exg mat int payb account. For a buy/sell agreement, the system would
post to a cost of goods sold account instead.
4-2 Process two exchange receipt tickets.

4-2-1 To create the purchase call-off, choose:
Logistics → Exchanges → Exchange Operations → Exchange receipts →
Purchase call-off → Create purchase call-off (ME21N).
Choose Standard PO.
On item entry level go to the Outline agreement column and enter the
contract number from 3-2-5. If you do not know the number, youcan use the
F4-Help to search for the reference contract: Use search help O: Purch. item
per exchange and enter your exchange number from 3-1-3. Be sure the
Purch. doc. category is “K” for contract. Press Enter.
The data from the purchase contract will be defaulted on line item level.
Another possibility to create the reference to the contract is to have the
document overview on on the left side of the screen, display valid contracts
via the selection variant, and choose the drag and drop functionality to
move the contract number into the shopping basket (field left of standard
PO on the upper left of the screen).
Enter the call-off quantity under PO quantity:
Quantity: 10000 GAL
Check possible information messages and choose Enter.
Save the purchase order.

4-2-2 Create a goods receipt for the purchase order:
receipts → Goods receipt → Create/display goods receipt (MIGO).
Choose Goods receipt and Purchase Order in the first two fields.
In the third field, enter the number of the purchase order you created in
exercise 4-2-1 (you can also use the search help “O” again to find the
number, in this case you search for a document of category “F”).
Choose Enter.
On the lower part of the screen (Detail data view) check on the “Wk” tab
that you use movement type 101 (Goods receipt for purchase order to
warehouse).
Check the other tab strips for further data.
Mark the Item OK flag.
Save the goods receipt. You can either choose Save or Post.
4-2-3 To create the purchase call-off, choose:
Logistics → Exchanges → Exchange Operations → Exchange receipts
Choose Standard PO.
contract number from 3-2-5. If you do not know the number, you can use
the F4-Help to search for the reference contract: Use search help O: Purch.
item per exchange and enter your exchange number from 3-1-3. Be sure the
Purch. doc. category is “K” for contract. Choose Enter.
Enter the call-off quantity under PO quantity:
Quantity: 5000 GAL
Check possible information messages and press enter.

4-2-4 Create a goods receipt for the purchase order:
receipts → Goods receipt → Create/display goods receipt (MIGO).
Choose Goods receipt and Purchase Order in the first two fields.
In the third field, enter the number of the purchase order you created in
exercise 4-2-1 (you can also use the search help “O” again to find the
number, in this case you search for a document of category “F” ).
Choose Enter.
On the lower part of the screen (Detail data view) check on the “Wk” tab
that you use movement type 101 (Goods receipt for purchase order to
warehouse).
Check the other tab strips for further data.
Mark the Item OK flag.
Save the goods receipt. You can either choose Save or Post.
4-3 Adjust the valid handling fee rates.

4-3-1 In order to adjust the sales handling fee rate, choose:
Logistics → Exchanges → Master data → Conditions → Sales fees →
Change
Choose Enter, and select the Plant/Material key combination on the
following screen.
Plant: AP01
Choose Execute. Change the fee rate from 0,09USD/GAL to:
Choose Condition → Save.
4-3-2 To adjust the purchase fee rate, choose:
Logistics → Exchanges → Master data → Conditions → Purchase fees
→ Change
Choose Enter, and enter the selection data:
Vendor: VEND02-##
Choose Execute. Change the fee rate to:
Choose Condition → Save.

4-4 Settle (balance) the exchange transactions.
4-4-1 To carry out a manual invoice verification, choose:
Logistics → Exchanges → Exchange operations → Exchange receipts →
Logistics invoice verification → Enter invoice.
Company code: AOIL
Invoice date (Today’s date)
Posting date: (Today’s date)
Reference: (Leave blank)
Amount: 0 (will be calculated later)
Currency: USD
Calculate tax: X
Invoice Filter: Fees
Reference document category: Purchase order/scheduling agreement
Enter purchase order number from step 4-2-1. Choose Enter.
In the upper right hand corner of the screen is the document Balance field.
Enter the value shown in this field into the Amount field and choose Enter.
Now the balance is zero.
4-4-2 Press Simulate. The system displays the proposed account postings. Select
Post.
4-4-3 To review the accounting document for the invoice verification, choose:
Invoice document → Display.
Choose Follow-on documents. You see that the system has posted only the
fee amount to the vendor account, but no material price. Also, you can see
that the system has posted an additional amount to the Handling fee expense
account. This amount origins from the fee rate adjustment, because during
the goods receipt, the system posted a lesser amount to the Handling fee
expense account, as you have increased the handling fee rate in the
meantime.
In case of a buy/sell agreement the system would also have posted the
material price.
4-4-4 To bill the delivery, choose
Logistics → Exchanges → Exchange operations → Exchange deliveries
→ Billing → Create billing document
Delivery: (Delivery number from 4-1-2)
Choose Edit → Execute.
To see what the billing amount consist of, select the item and choose Goto
→ Item → Item conditions. Only highlighted lines (Condition value) are
taken into consideration for the billing amount, the others are only
statistical.
The billing amount consists of the fees total FEET, the metropolitan
indicator QDRM (with a negative amount), and the federal excise tax EFET.
The gross price is set to statistical (doubleclick on the gross price to see the
statistical flag on the Item data view), so we do not charge our exchange
partner for the material. This is correct, as the exchange agreement is a
borrow and loan agreement.
To post the invoice, go back to the overview screen and choose Billing
document → Save. Stay on this screen.

4-4-5 To review the accounting document for the invoice you have just created,
choose Billing document → Display. If the system does not default the
billing document number, enter the invoice number from 4-4-4. Choose
Accounting, and select the accounting document on the following screen.
If you want the system to post both fee amounts to the same account, you
can specify the same account key for both of the fee conditions in
customizing:
Industry Solution Oil & Gas (Downstream) → EXG → Fee Account
Assignment → Maintain sales fee account assignment
For the combination Sales Organization/Fee condition/Application, you
specify the account policy and the posting key, by which the system
determines the account for the invoice postings.
4-4-6 To configure the system to redetermine or only copy fee rates, enter
customizing and choose
Industry Solution Oil & Gas (Downstream) → EXG (Exchanges) → Fee
Handling → Copy Rules for Documents.
In here, you can specify whether the system should redetermine or just copy
fee rates, and whether these rates are editable, when creating:
- A purchase order with reference to an exchange contract
(Define copy rules for purchase)
- A goods receipt with reference to an exchange order
(Define copy rules for goods receipt)
- An invoice verification for an exchange order
(Define copy rules for invoice receipt)
- A sales order with reference to an exchange contract
(Define copy rules for sales documents)
- An invoice with reference to an exchange delivery
(Define copy rules for billing documents)

Logical Inventory
Contents:
l Logical inventory overview

l Logical inventory adjustments
l Accounting entries
SAP AG 2001

Logical Inventory: Unit Objectives
l Define logical inventory

l Process delivery adjustment
l Process receipt adjustment
l Process negotiated payment
l Understand accounting entries
SAP AG 2001

Course
Course overview
overview
Business
Business
Conclusion
Conclusion
background
background
Exchange
Exchange
Other
Other features
features
agreement
agreement setup
setup
Daily
Daily business
business
Exchange
Exchange reports
reports
flow
flow
Unit 05
Split
Split condition
condition
Logical
Logical inventory
inventory
processing
processing
Sub/base
Sub/base
Settlement
Settlement
relationship
relationship
Purchase
Purchase assignment
assignment
SAP AG 2001

Logical Inventory (I)
Receipts
Deliveries
Balance
Balance of
of material
material quantities
quantities
owed
owed / owing against a borrow // loan
/ owing against a borrow loan exchange
exchange
SAP AG 2001
n When exchange balances are built up against "pure" exchanges, for financial accounting purposes, it
is usual to value the assets and liabilities associated with the goods movements, as if they were actual
inventory. 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.
n The system records and tracks the value of the inventory at the prevailing inventory carrying price
when the material movement was created.
n 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".

Logical Inventory (II)
Volumetric balance:
Volumetric balance:
Exchange balance
Exchange balance table
table S036
S036
Financial balance:
Financial balance:
Material internal
Material internal payable
payable // receivable
receivable accounts
accounts
Valuation strategy:
Valuation strategy:
Logical inventory
Logical inventory valuation
valuation segment
segment OIA07
OIA07
SAP AG 2001
n The logical inventory reflects the receipts and deliveries that are posted under a borrow and loan
exchange agreement.
n In the system, the logical inventory is represented by:
the volumetric balance, which is stored in the exchange balance table S036
the financial balance, stored in the material internal payable and receivable accounts
n A moving average price for the exchange balance is maintained in table OIA07 and is used to derive
the gain/loss posting when logical inventory is revalued.

Logical Inventory Adjustments
Exchange
Exchange Agreement
Agreement Header
Header
Receipts Deliveries
Receipt D Delivery
R
adjustment adjustment
Balance
Negotiated Negotiated
payment:
payable $ payment:
receivable $
Settlement
Settlement
SAP AG 2001
n The system allows you to make adjustments to logical inventory.

Book deliveries and book receipts are used to adjust the VOLUME of the exchange balance.
Negotiated payments record payables and/or receivables in the system. They do not affect the
exchange balance. For example, a negotiated payment may be used to post an additional payable
amount in order to offset an inaccurate fee rate used during the previous month.

Logical Inventory Adjustment - Delivery Adjustment
1 Receipt Delivery
BEFORE
11,000 L15 10,000 L15
Delivery
adjustment
1,000 L15
Receipt Delivery
2 AFTER
AFTER 11,000 L15 11,000 L15
SAP AG 2001
n The logical inventory adjustment transaction allows the oil company to adjust the logical inventory
that they have recorded against an exchange partner.
n It is possible to settle the difference (imbalance) between delivered and received material, by means
of a payment. Open quantities can also be moved to another exchange agreement, which results in
items in the first exchange agreement being settled before the exchange agreement can then be
concluded.
n No physical movement is involved, only a logical inventory movement.
n The LIA transaction allows the oil company to record the change of ownership of a specified
quantity of one product to the ownership of a specified quantity of another product. Note that it does
not necessarily have to be a different product.
n When the LIA logical inventory accounts are updated, so too is the exchange balance.

Delivery Adjustment - Account Posting
Purchase contract
Exchange
Agreement
Agreement
General
General ledger:
ledger:
Debit: LOGICAL INVENTORY (+) Delivery

Credit: EXG BALANCING ACCT ( - ) adjustment
SAP AG 2001
n As you can see, a delivery adjustment does NOT affect physical inventory.
n Delivery/Receipt adjustments should NOT be used to record an actual product movement.

Receipt Adjustment - Account Posting
Purchase contract
Exchange
Agreement
Agreement
General
General ledger:
ledger:
Receipt Credi: LOGICAL INVENTORY (-)

adjustment Debi: EXG BALANCING ACCT ( + )
SAP AG 2001
n As you can see, a receipt adjustment does NOT affect physical inventory.
n Delivery/Receipt adjustments should NOT be used to record an actual product movement.

Negotiated Payment - Account Posting
Purchase contract
Exchange
Agreement
Agreement
Credit: vendor
Debit: exg bal acct.
Payable Receivable
Debit: customer
Credit: exg bal acct.
SAP AG 2001
n Negotiated payments establish entries in either accounts receivable or accounts payable.

Logical Inventory - Exercise
l Create delivery adjustment

l Create receipt adjustment
l Create negotiated payment
SAP AG 2001

Logical Inventory: Unit Summary
l Define logical inventory

l Process delivery adjustment
l Process receipt adjustment
l Process negotiated payment
l Understand accounting entries
SAP AG 2001

Exercises
Unit: Logical Inventory

Topic: The logical inventory and adjustments

• Use the exchange balance report to obtain an overview of your receipts
and deliveries that are linked to the exchange agreement.
• Carry out a logical inventory adjustment
AOIL checks the volume balance of the exchange transactions. As AOIL

agreed with its exchange partner to adjust any imbalances financially at
the end of the month, AOIL uses a logical inventory adjustment (LIA) to
adjust the balance and post a negotiated payment, and that is done in one
step.
5-1 Use R/3 reporting tools to examine what happened within your exchange agreement
so far, and adjust the balance.
5-1-1 What does logical inventory mean?
____________________________________________________________
____________________________________________________________
____________________________________________________________
5-1-2 Display the exchange balance report in order to check lifts and receipts and
the resulting exchange balance.
Application: 03 (Inventory controlling)
Evaluation structure: ZFEXCHBL (Exchange balance)
Evaluation: EXGB (Exchange balance report)
Exchange no.: (From 3-1-3)
Make a note of the exchange balance (lift – receipts) for the “Regular”
material:
____________________________________________________________
5-1-3 What options do you have for settling the imbalance between delivered
material and received material?
____________________________________________________________
____________________________________________________________

5-1-4 Carry out a logical inventory adjustment with a book delivery and a
negotiated payment.
Balance adjustments:
Type: Delivery
CoCd: AOIL
Exg.No: (Exchange agreement from 3-1-3)
Plant: AP01
Base prod: REGULAR-##
Quantity: (Exg. balance from 5-1-2)
UoM: L15
Text: To settle exchange balance
ExgT: B/LR
Negotiated Payments:
Type: Receivable
CoCd: AOIL
Amount: 5000
Currency: USD
Sales org: AESO
Cycle: 1
Text: To settle exchange balance -
Negotiated Payment
Save the LIA document and make a note of the document number.
____________________________________________________________
5-1-5 Check the accounting documents for the LIA document. Which material
price did the system use for the postings?
____________________________________________________________
Where do you specify which material price the system should use?
____________________________________________________________
____________________________________________________________
5-1-6 What is the exchange balance now?
____________________________________________________________

Solutions
Unit: Logical Inventory

Topic: The logical inventory and adjustments
5-1-1 The logical inventory is the accumulation of all movements of an internally-

posting (borrow-loan) exchange.
This means that whenever you post a movement that belongs to a borrow
and loan exchange agreement, the system updates quantity and value in the
logical inventory valuation segment accordingly.
5-1-2 To display the exchange balance report, choose:
Logistics → Exchanges → Exchange operations → Reporting →
Exchange balance
As this report uses a Logistics Information System (LIS) structure, you have
to enter the following data:
Application: 03 (Inventory Controlling)
Evaluation structure: ZFEXCHBL (Exchange balance)
Evaluation: EXGB (Exchange balance report)
Exchange no.: (From 3-1-3)
The report shows the accumulated quantities for each product/plant/period
combination. The row Base prod no (which is row ***) will be explained in
unit 8. For our material, you find the balance in the column Bal (Lifts-Recs)
of the row Regular 95.
5-1-3 To settle the imbalance, you use the logical inventory adjustment (LIA)
transaction. With this transaction you can post either a:
- Delivery adjustment, which increases the delivered quantity in the
logical inventory, or a
- Receipt adjustment, which increases the received quantity in the logical
inventory.
With both of these options, you can also enter negative quantities to
decrease the delivered / received quantity in the logical inventory.

5-1-4 To carry out a logical inventory adjustment, choose:
Logistics → Exchanges → Exchange operations → Logical inventory
adjustments→ Create LIA
Enter the exchange partner number (VEND02-xx) and LIA-exg # required
(this data is usually defaulted). The document and posting date should be
today’s date.
Balance adjustments:
Type: Delivery
CoCd: AOIL
ExgNo: (exchange agreement from 3-1-3)
Plant: AP01
Base prod: REGULAR-##
Quantity: (Exg. balance from 5-1-2.
Note: Enter a negative quantity)
UoM: L15
Text: To settle exchange balance.
ExgT: B/LR
Negotiated payments
Type: Receivable
CoCd: AOIL
Amount: 5000
Currency: USD
Sales Organization: AESO
Cycle: 1
Text: To settle balance.
To save the LIA document, choose LIA → Save.
5-1-5 To review the accounting document for the LIA document, choose:
LIA → Display.
Enter the LIA document number from 5-1-4.
From here, you choose Acctg. doc. to display the accounting document.
The system has posted the material value to the Exg mat int rec account, so
divide this value by the quantity to determine the material price that the
system took for the LIA.
In Customizing, you can specify which material price the system should
take, under the following path:
Industry Solution Oil & Gas (Downstream) → EXG (Exchanges) →
Maintain company code control
On the following screen, you find the current price determination logic for
your company code AOIL on the field LPI. If you place the cursor on this
field and choose F4, you see a list of user exits containing different kind of
price determination logic, to which you may add your own logic if you
want.
5-1-6 Execute the exchange balance report again (see 5-1-2). The balance has
been decreased by the volume which you have entered in 5-1-4, so if you
have entered the old balance (lifts – receipts), the balance should now be
zero.

Settlement
Contents:
l Movements based netting
l Exchange statement summary
l Exchange statement detail
SAP AG 2001

Settlement: Unit Objectives
l Create movements based netting document

l Create exchange statement summary report
l Create exchange statement detail report
SAP AG 2001

Course
Course overview
overview
Business
Business
Conclusion
Conclusion
background
background
Exchange
Exchange
Other
Other features
features
agreement
agreement setup
setup
Daily
Daily business
business
Exchange
Exchange reports
reports
flow
flow
Split
Split condition
condition
Logical
Logical inventory
inventory
processing
processing
Sub/base
Sub/base Unit 06
Settlement
Settlement
relationship
relationship
Purchase
Purchase assignment
assignment
SAP AG 2001

Settlement
Exchange
Exchange Agreement
Agreement Header
Header
Receipts
Receipts Deliveries
Deliveries
Balance
Settlement:
• Netting
• Exchange statement
• Reconciliation
SAP AG 2001
n In the settlement phase, various processes are carried out:

Netting is the process of clearing the payables and receivables that have built up during the given
period and then establishing a net payable or net receivable amount.
The exchange statement is used to report the exchange activity recorded during the month. It
shows both volumes and money.
Reconciliation is the process whereby differences between exchange partner’s statements are
identified and resolved. In an exchange, both partners are attempting to maintain records for the
same movements. In theory, their statements should be identical. However, due to timing
differences, errors and omissions, the statements often do not match.

Settlement - Movements Based Netting
Goods Goods Book Invoice Neg.

Billing
issue receipt del/rec receipt paymt.
Movements
Financial
database Netting database
selection
Summary Detail
report report
Clear
Clear
Netting Netting Payables
Payables
Document Receivable
BTCI Receivable
SAP AG 2001
n Movement based netting collects receivables and payables in an exchange and offsets them against
each other.
n Goods movements which reference the exchange agreement are used as the selection method for
choosing the documents.
n The system calculates the netting balance as a sum of the receivables and payables. You either bill
the balance to your exchange partner, or your company pays the amount.
n You can create a statement (printout) for the movement 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 still change the movement based netting document, as
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.
n For the printout it is necessary to maintain an address for your sales organization.

Settlement - Exchange Statement Summary Report
Exchange Statement Summary Report

------------------------------------------------------------------------------------------------------------------------------
In account with: American Oil Company Date: 11/24/1998
Exchanges Accounting Statement Currency: USD
EXCHANGE Customer US Selection Range:
Ford Lane 3221 From Month: 11/1998
WALLDORF CA 83312 To Month: 11/1998
USA
Exchange Contract Number: 156
Your Reference: AV EXG-1
Report Capt’ns Material MOD Qty Cond Type Desc Rate Amount
Movement Sub Tot Period Due You-
Due Us+
BASE PRODUCT = UN90H0-MO UG6 UG6 UG6
OPENING BALANCE: 0.000
CURRENT MONTH RECEIPTS:
AP04 UN87H0-MO 01 8,000.000
Location fees 0.05 USD/1UGL 400.00-
Handling fee 0.10 USD/1UGL 800.00-
Prod. Diff. (F&A) 0.07- USD/1UG6 280.00
Total of Location AP04 8,000.000
TOTAL RECEIPTS: 8,000.000 920.00-
CURRENT MONTH DELIVERIES:
APO5 UN87H0-MO 02 7,000.000-
Location fees 0.05 USD/1UGL 350.00
Handling fee 0.10 USD/1UGL 700.00
Prod. Diff. (F&A) 0.07- USD/1UG6 210.00-
Total of Location AP05 7,000.000-
TOTAL DELIVERIES: 7,000.000- 830.00
LOGICAL INVENTORY ADJUSTMENTS:
CURRENT MONTH BOOK RECEIPTS:
TOTAL RECEIPTS
CURRENT MONTH BOOK DELIVERIES:
APO5 UN87H0-MO 1,000.000
PLANT TOTAL-AP05 1,000.000
TOTAL DELIVERIES 1,000.000
LIA BASEPROD TOTAL 1,000.000
CLOSING BALANCE 2,000.000
PURE FINANCIAL ADJUSTMENTS:
SUMMARY Net Due Us 830.00
Net Due You 920.00-
Pure Financial Adjustments 0.00
Net Due Us(+) You(-) 90.00-
SAP AG 2001
n This is a sample exchange statement summary report.

It shows summarized volumes and money for exchange related movements.

Settlement - Exchange Statement Detail Report
Exchange Statement Detail Activity Report Date: 11/24/1998
In account with: American Oil Company Statement Currency: USD

Exchanges Accounting Dept Selection Range:
EXCHANGE Customer US From month: 11/1998
Ford Lane 3221 To month: 11/1998
WALLDORF, CA 83312
USA
Exchange Contract Number: 156

Your Reference: AV EXG-1
Report Capt’ns Material SubProduct RefNumber Trans MOD Quantity
BASE PRODUCT = UN90H0-MO EXG 90 OCTANE MAT. UG6 UG6 UG6

OPENING BALANCE: 0.000
CURRENT MONTH RECEIPTS:
AP04 50003396 UN87H0-MO 11/24/1998 01 4,000.000
AP04 50003396 UN90H0-MO 11/24/1998 01 4,000.000
Total of Location AP04 8,000.000
Total Receipts 8,000.000
CURRENT MONTH DELIVERIES:
AP05 49013369 UN87H0-MO 11/20/1998 02 3,000.000-
AP05 49013369 UN90H0-MO 11/20/1998 02 4,000.000-
Total of Location AP05 7,000.000-
Total Deliveries 7,000.000-
LOGICAL INVENTORY ADJUSTMENTS:
BOOK DELIVERIES
AP05 UN87H0-MO 11/17/1998 1,000.000
Total Plant 1,000.000
TOTAL DELIVERIES 1,000.000
LIA BASEPROD TOTAL 1,000.000
CLOSING BALANCE 2,000.000
SAP AG 2001
n This is a sample exchange statement detail report.

It shows individual movement details for exchange related movements.

Settlement - Exercise
l Create netting document

l Print exchange statement summary/detail reports
l Execute BTCI clearing
SAP AG 2001

Settlement: Unit Summary
l Create movements based netting document

l Create exchange statement summary report
l Create exchange statement detail report
SAP AG 2001

Exercises
Unit: Exchanges
Topic: Settlement

• Create a movement-based netting document and check the output on
the screen.
AOIL does not invoice its exchange partner after each individual
movement, but settles the exchange agreement periodically. AOIL wants
to offset the receivables and payables collected in the exchange
agreements against each other.
AOIL can create a netting statement (printout) for the movements-based
netting document, and can send it to its exchange partner. AOIL' s
exchange partner can then check the statement. If its exchange partner
reports any changes to AOIL, the movements-based netting document can
still be changed, as long as AOIL has not created a batch-input session.
When the batch-input session is run, the accounts are cleared and
difference postings are carried out.
6-1 Create a movements-based netting document, examine the netting proposal and
check the output on the screen.
6-1-1 Create the netting document:
Exchange partner number: VEND02-##
Netting document type: OINF (Movm.Netting - Fees)
Currency: USD
From month: (01, current year)
To month: (Current month, current year)
Select Netting proposal, and examine all the items.
Go back to the selection criteria screen and save the netting document
(choose Save and Create BTCI), and make a note of the document number
and the batch input session.
____________________________________________________________

6-1-2 Display the exchange statement summary (output type: NTS1) - and the
detail activity report (output type: NTD1) on the screen.
Note: Enter P131 as the printer name.
Examine the difference between those two reports.
____________________________________________________________
____________________________________________________________
6-1-3 Clear the accounts by running the BTCI session.
Session name: (From step 6-1-1)
Run the BTCI session either in the normal processing mode or in
background mode.

Solutions
Unit: Exchanges
Topic: Settlement
6-1-1 To create the netting document, choose:

Logistics → Exchanges → Exchange operations → Netting →
Movements based netting → Create netting document
Netting document type: OINF (Movm.Netting - Fees)
Choose Enter. On the following screen, you enter the currency to use later
in the statement, and the criteria by which the system selects the items for
netting:
Currency: USD
From exchange number: (Exchange number from 3-1-3)
To month: (Current month and year)
Select Netting proposal: you see a list of the deliveries, receipts, and LIA
documents that you posted under this exchange agreement so far, and the
related accounting documents. From here you can display the movement
and accounting documents by positioning the cursor on the specific line and
choosing Movement doc. or FI document respectively. Movements without
financial documents are also included in the netting document. A selecting
or deselecting of items results in an include or exclude of the specific item
in the subsequent netting process.
To save the netting document and post the batch input (BTCI) session,
choose Back → Save and create BTCI. The batch input session can now be
started to clear the accounts for the transactions that are included in the
netting process.

6-1-2 To display the exchange statement summary, choose:
Netting document → Display
Enter the netting document number from 6-1-1, and choose:
Netting document → Issue output to → Screen
Enter output type NTS1 and choose Execute. Change the printer name to
P131, and confirm the printing information by choosing Execute again.
The resulting output is an example of an exchange statement, which
contains accumulated data about the transactions you are about to net. The
exchange statement is sent to your exchange partner. For better viewing,
choose Goto → List Display.
To display the detail activity report on the screen, repeat 6-1-2 but use
output type NTD1 instead of NTS1. This report contains relevant details
about each transaction which is included in the netting document.
6-1-3 To clear the accounts by executing the BTCI session, proceed as follows:
choose:
System → Services → Batch input → Sessions
You see the batch input session, which you start by positioning the cursor
on the session and choose Session → Process session.
On the following popup, choose one of three different Run modes, which
you can use to run the batch input transactions in foreground or in
background. If you choose Process/foreground, just choose Enter until you
have processed the batch input session completely.

Purchase Assignment
Contents:
l Purchase assignment overview
l Price reference plant overview
l Configuration
SAP AG 2001

Purchase Assignment: Unit Objectives
l Describe the business need for purchase assignments

l Describe the business need for price reference plants
l Understand the impact of price reference plants on
accounting entries
l Perform an exchange purchase assignment against a
customer sale
SAP AG 2001

Course
Course overview
overview
Business
Business
Conclusion
Conclusion
background
background
Exchange
Exchange
Other
Other features
features
agreement
agreement setup
setup
Daily
Daily business
business
Exchange
Exchange reports
reports
flow
flow
Split
Split condition
condition
Logical
Logical inventory
inventory
processing
processing
Sub/base
Sub/base
Settlement
Settlement
relationship
relationship
Unit 07
Purchase
Purchase assignment
assignment
SAP AG 2001

Purchase Assignment Scenario (I)
Purchase
contract
WOIL Exchange
Exchange partner
agreement
Order
WOIL customer
SAP AG 2001
n When the product used in a sale is purchased directly from a third party, purchase assignment
functionality automates the recording of these purchase documents when the user records the
customer sale documents in the SAP System.
n Therefore when the product for a customer sale is supplied from an exchange partner’s terminal, you
assign an exchange purchase contract item to the delivery document of the customer sale process.
n In the first step of the process, you record a sales order in the SAP system as shown in the above
slide.

Purchase Assignment Scenario (II)
Purchase
contract
WOIL Exchange
Exchange partner
ENNT
T
agreement
ME
NNM
SIIGG
ASSS
SEE A
HAAS
RCCH
PPUUR
Order
WOIL customer
Delivery
SAP AG 2001
n In the second step of the purchase assignment process, a delivery is created and the exchange
purchase contract line item is assigned to the delivery.
n When the delivery is saved, the quantity to be delivered appears as intended quantity in the quantity
schedule of the purchase contract.

Purchase Assignment Scenario (III)
Logical
Goods Purchase
Goods receipt
receipt goods flow
contract
WOIL Exchange
Exchange partner
agreement
Physical
goods flow
Order
WOIL customer
Delivery
Goods
Goods issue
issue
SAP AG 2001
n In the third step of the purchase assignment process, the goods issue is posted, which triggers the
system to automatically post the purchase call-off and the exchange related goods receipt.
n Quantity schedule functionality is not required for purchase assignment. However, when quantity
schedules are used, the system updates the quantity schedule in the following way:
n When you create the delivery and assign the quantity to be delivered to an exchange purchase
contract, the quantity to be delivered appears as an intended quantity in the quantity schedule.
n As soon as the goods issue is posted (and the system automatically creates the purchase order and the
following goods receipt), the delivered quantity is listed in the quantity schedule as a goods receipt
quantity.

Purchase Assignment - Document view
Purchase
Sales
contract
delivery note
Item
Purchase
Purchase assignment
assignment
•• Exchange
Exchange contract
contract items
items
•• Non-exchange
Non-exchange contract
contract items
items
Purchase
call-off
Goods
issue
Purchase
Purchase assignment
assignment postings
postings Goods
receipt
•• Post
Post purchase
purchase call
call off
off
•• Post goods receipt
Post goods receipt
SAP AG 2001
n It is possible to assign the delivery to either a purchase contract or to a purchase order. As soon as
the goods issue is posted, an automatic goods receipt is created for the purchase order or, if assigned
to a contract, a purchase call-off is posted before the automatic goods receipt is carried out.
n Purchase assignment functionality is also available for non-exchange contracts.

Price Reference Plant - Overview (I)
11 Prior to pickup at exchange

partner’s location
Exchange
plant
Exchange
plant
Reg
$0
00 Stock
Stock
SAP AG 2001
n When posting a goods receipt under a borrow and loan agreement, the system usually takes the price
from the receiving plant in order to valuate the material received.
n For plants which are only used for purchase assignments, there may be no stock existing.
n In the material master, you can assign so-called price reference plants to each plant. When there is no
stock available at the receiving plant, the system will then take the price from the assigned price
reference plant in order to valuate the material received.
n By setting the so-called price reference valuation plant flag in customizing, you can specify that the
system should take the price from the price reference plant, even if there is stock available at the
receiving plant.
n The slide (above) is the first of three slides which represent the recording of an exchange receipt at a
partner’s terminal. This receipt will be followed by a sale to your customer, from this terminal. In
this illustration, your customer has arrived at your exchange partner’s terminal to pull a load of 8,000
UG6 of regular gasoline. In your SAP System, you have defined your exchange partner’s terminal as
a plant. Since none of the physical stock at this terminal is your stock, there is no inventory of
material recorded in your SAP System at this plant.

Price Reference Plant - Overview (II)
22 Record Exchange Receipt at

exchange partner’s location
General
General ledger:
ledger:
Exchange Debit: PHYSICAL INVENTORY $8,000

plant
Credit: LOGICAL INVENTORY $8,000
Reg Price
$1.00/gal ref. plant Reg
$1.00/gal
8,000
8,000 gal.
gal. Stock
Stock
SAP AG 2001
n The first step is to record the exchange receipt. At SAP, this process involves creating the purchase
order and goods receipt documents. Configuration has been set to value the product on the purchase
order with the value maintained for that same material in the price reference plant. In other words,
the value of Regular at the price reference plant is $1.00. Therefore, the posting of the exchange
receipt of Regular at the exchange plant is valued based on $1.00.

Price Reference Plant - Overview (III)
33 Record Customer Sale from

Regular (8,000 gal)
Exchange General
General ledger:
ledger:
plant
Credit: PHYSICAL INVENTORY $8,000

Reg Debit: COST OF GOODS SOLD $8,000
$1.00/gal
00 gal.
gal. stock
stock
SAP AG 2001
n The last step in the process is to record the sale of Regular to your customer. The accounting entry
for the sale to your customer is a credit (decrease) of physical inventory of Regular and a debit
(increase) to a cost of goods sold account. The value (cost) of the Regular being sold to your
customer, you will remember, was derived from the value of Regular at the price reference plant.
n Therefore, the value at the price reference plant not only determines the valuation on exchange
receipt postings, but is also responsible for the value of the posting to the cost of goods sold account
associated with the customer sale, following the exchange receipt.

Purchase Assignment - Exercise
l Create sale to customer

l Perform purchase assignment
SAP AG 2001

Purchase Assignment: Unit Summary
l Describe the business need for purchase

assignments
l Describe the business need for price reference plants
l Understand the impact of price reference plants on
accounting entries
l Perform a exchange purchase assignment against a
customer sale
SAP AG 2001

Exercises
Unit: Purchase Assignment

Topic: Exchange Agreements with Purchase Assignments

• Assign deliveries to exchange purchase contracts
• Understand how to configure purchase assignments
AOIL "lifts" product from the exchange partner’s location and delivers
that product to its own service station.
7-1 A service station calls you to order a specific quantity of product, which is to be
delivered from your exchange partner’s location. That means that you create an
order and assign the subsequent delivery to the purchase contract that is connected
to an exchange agreement.
Note: This is not a sale from you to your exchange partner, but to your own
customer.
7-1-1 Create a sales order for the service station (no reference to a contract).
Order type: OR
Sales area AESO/A1/A1
Quantity: 12000 GAL
Plant: AP02
Save the sales order and make a note of the document number.
____________________________________________________________
7-1-2 Create the delivery for the sales order. Assign the purchase contract from
Exercise 3-2-5 to the delivery. Do not post the goods issue yet.
Purchase document number: (Number from 3-2-5)
Item: 10
Assigned quantity: 12000 GAL
Save the delivery (do not post the goods issue yet!) and make a note of the
document number.
____________________________________________________________

7-1-3 Display the quantity schedule of the purchase contract.
Note: Starting from the purchase assignment screen of the delivery, you can
go directly to the purchase contract.
What affect did the purchase assignment have on the quantity schedule?
____________________________________________________________
7-1-4 Open another R/3 session and post the goods issue for the delivery from
exercise 7-1-2. Go back to the quantity schedule of the purchase contract
and refresh the quantity schedule view. What has changed?
____________________________________________________________
____________________________________________________________
7-1-5 Review the goods receipt that was created by the system.
Note: From the purchase assignment screen of the delivery, you can go
directly to the material document of the goods receipt.
Which movement type was used by the system? How do you specify your
own movement type for the system to use here?
____________________________________________________________
____________________________________________________________
7-2 How do you set up the system so that the purchase contract is automatically
assigned during delivery creation?
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________

Solutions
Unit: Purchase Assignment

Topic: Exchange Agreements with Purchase Assignments
7-1-1 To create a sales order for your customer, to whom product is to be

delivered from your exchange partner’s location, choose:
Logistics → Sales and Distribution → Sales → Order → Create
Enter OR as the order type and choose Enter. On the next screen, enter:
Order quantity: 12000 GAL
Plant: AP02
Choose Enter and select sales area: AESO/A1/A1 from the subsequent
dialog box (if the sales area has not yet been defaulted), and save the order.
Note: You can also choose Sales Document → Deliver from the order entry
screen to save the order and go directly to the delivery create screen.
7-1-2 To create the delivery for the sales order, choose:
Logistics → Sales and Distribution → Shipping and Transportation →
Outbound Delivery → Create → Single Document → With Reference to
Sales Order
Enter the following shipping data:
Selection date: (Today’s date)
Choose Enter. On the following overview screen, enter the storage location
A2L1 (if not defaulted on line item level) and choose the Purchase
assignment on the bottom of the screen or select the item and choose Goto
→ Item → Purchase Assignment.
In the Purchase Assignment-tab, enter:
Purchase document number: (Contract number from 3-2-5)
Item: 10
Assigned quantity: 12000
Choose Enter, confirm the information message.
Save the delivery (do not post the goods issue yet) and make a note of the
document number.

7-1-3 To display the quantity schedule of the purchase contract, choose:
Logistics → Exchanges → Exchange operations → Exchange agreements
→ Display exchange agreement.
Enter the agreement number from 3-1-3, then select Enter. Select the
Purchase Contracts tab. Double-click the purchase contract number, select
the item and choose Quantity Schedule.
As you will see, the delivery quantity (12000 GAL = 44317 L15) from
exercise 7-1-2 is assigned as an intended quantity (meaning: not yet called-
off) within the quantity schedule of the assigned purchase contract. The
value in the Unit field is the base unit of measure.
7-1-4 Open another R/3 session, choose System → Create session.
On the next session, choose Logistics → Exchanges → Exchange
operations → Exchange deliveries → Delivery → Change delivery
The system defaults the delivery from exercise 7-1-2. Choose Post goods
issue.
Go back to the Purchasing Contract Quantity Schedule screen and choose
Refresh. The previously intended quantity is now added to the called-off
quantity. The system automatically posted a goods receipt on the purchase
side for the goods issue that you posted for the delivery.
Choose Environment → Document flow contract to display the purchase
order (12000 gal) that the system has automatically posted. Stay on this
screen for the next step.
Note: The system handles the goods flow as if it would be a "real" goods
flow. Keep in mind that it is actually a "logical" goods flow and the product
was delivered from your exchange partner’s location.
7-1-5 To review the goods receipt, select the purchase order from the Release
Order Docu. for Contract ..’ screen and choose Environment → Display
document to display the purchase order, then select the Purchase order
history tab-strip on the item details view on the lowe part of the screen. On
the following screen, click on the material document number to branch to
the material document.
(Or go directly from the purchase assignment screen of the delivery using
Environment → Document flow to the material document of the goods
receipt.)
In field Movement Type, you see that the system used the movement type
101 – goods receipt for this goods receipt.
To specify your own movement type for the system to use here, go to
customizing and choose Industry Solution Oil & Gas (Downstream) →
EXG → Purchase Assignment → Define item categories for deliveries.
Choose the details for the standard item category TAN.
In the Exchange assignment data section, you can enter the movement type
which the system should use for the goods receipt in the field Movement
type.

7-2 In the Purchase assign. exit field on the same customizing screen as above in 7-
1-5, you can select your own user exit routine to determine a purchase contract,
which the system then assigns automatically to the delivery item with the
specific item category.

Sub/Base Product Relationships
Contents:
l Sub/base product Overview
l Price reference plant
l Account posting review
SAP AG 2001

Sub/Base Product Relationships: Unit Objectives
l Describe the business purpose of sub product and

base product relationships
l Understand the influence of price reference plant
on sub product/base product accounting entries
SAP AG 2001

Course
Course overview
overview
Business
Business
Conclusion
Conclusion
background
background
Exchange
Exchange
Other
Other features
features
agreement
agreement setup
setup
Daily
Daily business
business
Exchange
Exchange reports
reports
flow
flow
Split
Split condition
condition
Logical
Logical inventory
inventory
processing
processing
Unit 08
Sub/base
Sub/base
Settlement
Settlement
relationship
relationship
Purchase
Purchase assignment
assignment
SAP AG 2001

Sub/Base Product Relationships
Product Deliveries Receipts
Sub-product = Super 8,000 6,000
Sub-product = Mid-grade -0- 5,000
Sub-product = Regular 3,000 1,000
Base product = Regular 11,000 12,000
SAP AG 2001
n Even though there are many differenct products exchanged, it is usually the case that exchange
partners agree to track the exchange balance of a single product. This simplifies accounting for the
exchange balance. The product in which the exchange balance is tracked, is referred to as the base
product. The actual product delivered or received is referred to as the sub product. Differences in
value between the base product and the sub product are usually settled between the exchange
partners by using product differential fees.
n In the above example, the exchange partners are exchanging three products, but tracking the
exchange balance in the base product of ‘regular’ gasoline.

Sub/Base Relationships - Exchange Receipt (I)
11 Prior to pickup at exchange

partner’s location
Exchange
plant
Reg Sup
Base prod Sub prod
00 stock
stock
SAP AG 2001
n The valuation of inventory postings on exchange movements is configurable in the SAP System and
relies on a feature referred to as the price reference plant. The price reference plant can be an actual
plant where physical stocks are maintained of the various materials exchanged. An example could be
your refinery plant. Or the price reference plant can be a virtual plant (sometimes called a paper
plant) where there are no physical stocks of material maintained.
n The slide (above) is the first of five slides which represent the recording of an exchange receipt at an
exchange partner’s terminal. This receipt will be followed by a sale to your customer from this
terminal.
n In this illustration, your customer has arrived at your exchange partner’s terminal to pull a load of
8,000 UG6 of Super gasoline. In your SAP System, you have defined your exchange partner’s
terminal as a plant. Since none of the physical stock at this terminal is your stock, there is no
inventory of material recorded in your SAP System at this plant. Additionally, for all materials that
are to be exchanged, you have also defined a price reference plant.

Sub/Base Relationships - Exchange Receipt (II)
22 Record exchange receipt at

Exchange Price
Exchange
plant ref. plant
Plant
Reg Sup
Reg Sup
$1.00/gal $1.25/gal
$1.25/gal
Base prod Sub prod Base prod Sub prod
8,000
8,000 gal.
gal. stock
stock >> 00 gal.
gal. stock
stock
SAP AG 2001
n The first step is to record the exchange receipt. This process in the SAP System includes creating the
purchase order and goods receipt documents. Configuration has been set to value each product on the
purchase order with the value maintained for that same material in the price reference plant. In other
words, the value of Super at the price reference plant is $1.25. Therefore, the posting of the exchange
receipt of Super at the exchange plant is valued based on $1.25.

Sub/Base Relationships - Exchange Receipt (III)
33 Record customer sale from

exchange partner’s Location
SUPER (8,000 gal)
Exchange
plant
Reg Sup
$1.25/gal
Base prod Sub prod
00 gal.
gal. stock
stock
SAP AG 2001
n To complete the transaction, when the sale to the customer is posted in the SAP System, the physical
inventory of Super that has just been created is relieved. Following the exchange purchase order and
goods receipt of product from your exchange partner, you must record a sales order, delivery and
goods issue to your customer. This sale of Super is recorded against the same plant and storage
location used for recording the exchange receipt. Therefore, the inventory volume is drawn down to
zero.

Sub/Base Relationships - Exchange Receipt (IV)
Purchase contract
Exchange
Agreement
Agreement
General
General ledger:
ledger:
Receipt
Purchase call-off
Goods receipt Debit: PHYSICAL INVENTORY $10,000
Credit: LOGICAL INVENTORY $ 8,000
Credit: Sub/Base Gain/Loss $ 2,000
Invoice verification
Price
Price
ref.
ref. plant
plant
Reg Sup
$1.00/gal $1.25/gal
Base Sub
SAP AG 2001
n The accounting entry recorded at goods receipt reflects values from the price reference plant. Since a
product is being added to inventory, a debit (increase) to physical inventory is recorded. Since the
actual product being loaded is Super, the value assigned to this accounting entry is the corresponding
value for Super that is maintained at the price reference plant.
n The offsetting entry to the physical inventory posting is to logical inventory. Remember that the
logical inventory is being tracked in the Base product of Regular. Therefore, the valuation of the
posting to logical inventory is derived from the value of Regular gasoline maintained at the price
reference plant. The value of Regular gasoline at the price reference plant is $1.00 per UG6.
n Differences between the value of the sub product (Super) and the value of the base product (Regular)
are posted to sub/base gain/loss account.

Sub/Base Relationships - Exchange Receipt (V)
SUPER (8,000 gal)
General
General ledger:
ledger:
Customer sale
Sales call-off
Delivery/goods Credit: PHYSICAL INVENTORY $1.25

issue
Debit: Cost of Goods Sold $1.25
Billing
Exchange
x
Price
plant
ref. plant
Reg Sup Reg Sup

$0 $1.25 $1.00 $1.25
Base Sub Base Sub
SAP AG 2001
n The accounting entry for the sale to your customer is a credit (decrease) of physical inventory of
Super and a debit (increase) to a cost of goods sold account. The value (cost) of the Super being sold
to your customer, you will remember, was derived from the value placed on the exchange purchase
order. The value on the exchange purchase order was pulled from the value of Super at the price
reference plant.
n Therefore, the price reference plant value not only controls the valuation on exchange receipt
postings, but is also responsible for the value of the posting to the cost of goods sold account
associated with the customer sale following the exchange receipt.

Price Reference Plant - Exchange Receipt (I)
Physical
IMG plant AP04
Sub product setting
Sup
Plnt Exg. Val. $1.40/gal
AP04 Sub prod
AP05
Reg
$1.09/gal
Base prod Borrow/loan agreement:
Debit: PHYSICAL INVENTORY $1.32
<
Exchange header
Credit: LOGICAL INVENTORY $1.05
Base product setting Price ref.
Credit: sub/base gain/loss $0.27
Control data
plant AP01
S/B prod.ind. Ref. plant valuation Sup

$1.32/gal
Sub prod
Reg
$1.05/gal
Base prod
SAP AG 2001
n Separate settings exist for controlling the valuation of the sub product and the base product.
n It is ONLY with exchange receipts, that you can derive the valuation of the sub product from either
the current physical inventory value (e.g. Plant AP04 = $1.40) or from the value maintained in the
price reference plant (e.g. AP01 = $1.32). When the flag is set in the IMG, the cost is derived from
the price reference plant. When the flag is not set, the cost is derived from the physical plant.
n On exchange receipts, the valuation of the Base Product can also be derived either from the current
physical inventory value (e.g. Plant AP04 = $1.09) or from the value maintained in the price
reference plant (e.g. AP01 = $1.05).

Price Reference Plant - Exchange Receipt (II)
IMG
Physical
Sub product setting plant AP04
Plnt Exg. Val.
AP04 Sup
AP05 $1.40/gal
Reg
$1.09/gal
Debit: PHYSICAL INVENTORY $1.40
Exchange header
base product setting
Credit: sub/base gain/loss $0.31
Price ref.
Control data
plant AP01
S/B prod.ind. Real plant valuatn.
Sup
$1.32/gal
Reg
$1.05/gal
SAP AG 2001
n In the above example, the settings have been changed from the slide on the previous page.
n Valuation for sub- and base product is derived from the physical plant.

Price Reference Plant - Exchange Receipt (III)
IMG
Physical
sub product setting plant AP04
Plnt Exg. Val.
AP04 Sup
AP05 $1.40
Reg
$1.09 Borrow/loan agreement:
Exchange header <Debit: PHYSICAL INVENTORY $1.40
base product setting
Price ref. Credit: sub/base gain/loss $0.35
Control data
plant AP01
S/B prod.ind. Ref. plant valuation
Sup
$1.32
Reg
$1.05
SAP AG 2001
n In the above example, valuation for the sub product is derived from the physical plant and valuation
for the base product is derived from the price reference plant.

Sub/Base Relationships - Exchange Delivery (I)
11 Prior to exchange delivery

from your terminal
Your
terminal
Reg Sup
$.99/gal $1.19/gal
Base prod Sub prod
50,000
50,000 gal
gal Stock
Stock -- Sup
Sup
40,000
40,000 gal Stock -- Reg
gal Stock Reg
SAP AG 2001
n Now let’s go to a different scenario - an exchange delivery. In this scenario, your exchange partner’s
customer arrives at your terminal to pull the product. You have two tanks (one each) of Regular and
Super gasoline with the volumes and values indicated above. In this example, you have configured
the system to ALWAYS value exchange related postings with material values derived from the price
reference plant.

Sub/Base Relationships - Exchange Delivery (II)
22 Exchange delivery
from your terminal
SUPER (8,000 gal)
Your Assigned price

terminal ref. plant
Reg Sup
$.99/gal $1.19/gal Reg Sup
$1.00/gal $1.25/gal
Base prod Sub prod Base prod Sub prod
42,000
42,000 gal
gal Stock
Stock -- Sup
Sup >> 00 Stock
Stock -- Sup
Sup
40,000
40,000 gal Stock -- Reg
gal Stock Reg >> 00 Stock
Stock -- Reg
Reg
SAP AG 2001
n Your exchange partner’s customer loads 8,000 gal of Super gasoline. The recordings required in the
SAP system to reflect this event are an exchange related sales order, and a delivery and goods issue.

Sub/Base Relationships - Exchange Delivery (III)
Purchase contract
Exchange
Agreement
Agreement
General
General ledger:
ledger: Delivery
Sales call-off
Delivery
Credit: PHYSICAL INVENTORY $9,520 Goods issue
Debit: LOGICAL INVENTORY $8,000
Debit: sub/base gain/loss $1,520 Billing
Exchange Price
plant ref. plant
Reg Sup
$.99/gal Reg Sup
$1.19/gal
$1.00/gal $1.25/gal
SAP AG 2001
n The resulting accounting document reflects a credit (decrease) to physical inventory and a debit
(increase) to logical inventory. The physical inventory is always relieved using the value of the
physical inventory and not the value from the price reference plant. If your company is using a
moving average price to value your inventory, then this value reflects the various purchase and
transportation costs incurred in order to get product into that terminal.
n Instead of the offsetting entry being recorded to a cost of goods sold account as would be done on a
regular sale, the offsetting entry is recorded to logical inventory. Therefore, the value of the logical
inventory account posting is derived from the value of the base product at the price reference plant.
Again, the difference is posted to the sub/base gain/loss account.
n Note, with the configuration set to always value logical inventory from the price reference plant, it is
possible to have a gain/loss posting on exchange deliveries even if the base product and the sub
product are the same product. This is because the moving average price at the physical plant may be
different from the value maintained for the same material at the price reference plant. The price at the
physical plant is constantly changing because it is based on actual purchase prices and transportation
costs incurred to bring the product into inventory. However, the value of the same material at the
price reference plant is revalued periodically according to market prices. Configuration can be set at
the plant level to value the logical inventory at the physical inventory price. In this case, there would
be no gain/loss posting.

Sub/Base Product Relationships - Exercise
l Create posting with sub/base products

l Review account postings
SAP AG 2001

Sub/Base Product: Unit Summary
l Describe the business purpose of sub product and

base product relationships
l Understand the influence of price reference plant on
sub product/base product accounting entries
SAP AG 2001

Exercises
Unit: Sub/Base Relationship

Topic: Exchange Agreements with Base Products

• Create exchange agreements with sub/base relationships
• Explain changes to account postings when using base products
AOIL exchanges different materials with the exchange partner. To handle

this kind of exchange of unlike products, AOIL uses sub/base
relationships.

As before, this agreement should have an unlimited validity period with a review at
the end of the year. It should include the exchange of a specific quantity of material
per month. This time, the exchange agreement should include a sub/base
relationship to handle the exchange of unlike products.
8-1-1 Use the regular evergreen type to create the exchange agreement.
Exchange partner no.: VEND02-##
Exchange number: [ ] (Internal number range)
Administrative data:
Exchange status: Open
Evergreen type: Regular
Notice period: []
Starting date: (Today's date)
Closing date or review date: (End of the year)
Control data:
S/B prod.ind.: Ref. plant valuation
S/B prod.check: Single contract
Base location: (blank)
Netting cycle: Netted Exchange

8-1-2 What does the S/B prod. ind. indicator mean? What options exist for finding
information on this indicator?
____________________________________________________________
____________________________________________________________
____________________________________________________________
Save the exchange agreement and make a note of the document number.
____________________________________________________________
8-1-3 Create a sales contract for the exchange agreement (from the exchange
agreement menu) to enter material, base material, quantity, and fee details.
Material: SUPER-##
Base material: REGULAR-##
Target quantity: 100 000 GAL
8-1-4 For the product differential cost, you will have to assign differential fees
(PDFA) to the sales contract.
How is the differential fee rate determined?
_________________________________________________________
_________________________________________________________
_________________________________________________________
8-1-5 Create a purchase contract for the exchange agreement.
Plant: AP02
Material: SUPER-##
8-1-6 Assign product differential fees (fee type PDFA) to the purchase contract
item.
_________________________________________________________

8-2 Your partner calls you to deliver SUPER-## under the exchange agreement that
you have created.
8-2-1 Create a sales call-off with reference to the sales contract created in exercise
8-1-4. If you want, find the contract number using a matchcode for the
material or exchange number (matchcode object: O).
Order type: OR
Quantity: 20000 GAL
Save the order and make a note of the document number.
____________________________________________________________
8-2-2 Create the delivery for the order.
Post a goods issue and make a note of the delivery document number.
____________________________________________________________
8-2-3 Review the accounting document for the goods issue. What is the difference
between this posting and the posting that does not relate to base products?
____________________________________________________________
____________________________________________________________
What price did the system determine for the logical inventory posting, and
where would you go in Customizing to have the system determine a
different price?
____________________________________________________________
____________________________________________________________
____________________________________________________________
8-2-4 Where do you specify price reference plants for a material?
____________________________________________________________
____________________________________________________________

Solutions
Unit: Sub/Base Relationship

Topic: Exchange Agreements with Base Products
8-1-1 Create the exchange agreement as follows:

agreements → Create exchange agreements
Exchange partner No.: VEND02-##
Exchange number: [ ] (Internal number range)
Administrative data:
Exchange status: Open
Evergreen type: Regular
Notice period: (Blank)
Starting date: (Today's date)
Closing date or Review date: (End of the year)
Control data:
S/B prod.ind: Ref. plant valuation (see 'Note' below)
S/B prod. check: Single contract (see 'Note' below)
Base Location: (Blank)
QS breakdown: Monthly
QS split: Assign whole quantity to every period
Netting cycle: Netted Exchange
Apply fee check: X
VAT on int. mat. (Blank)
Netting active: X
Posting rules:
Material: Internal
Fees: External
Taxes: External
Note: The setting in the S/B prod. ind. field indicates that you intend to use
Sub/Base relationships in this agreement.

8-1-2 To display the meaning of the S/B prod. ind. indicator, position the cursor
on this field and choose F1. A short explanation is displayed stating that this
indicator specifies a routine which determines the value of the base product
during goods movements. From which options can you choose at this point?
Two different user exit routines exist:
- Real plant valuatn., which means that the system first tries to determine
the price from the physical plant for the BASE product valuation. If this
is not possible (because there is zero stock at this plant), the system
takes the price from the price reference plant that is specified in the
valuation segment of the material master for the base product.
- Ref. plant valuation, which means that the system always takes the price
from the price reference plant for the BASE product valuation.
You can also specify your own valuation routine here.
Save the exchange agreement.
8-1-3 To create the sales contract,
agreements → Change exchange agreements
Enter exchange agreement number from step 8-1-2.
Select the Sales Contracts tab, then choose Create Contract.
Contract type: CQ
Sales organization: AESO
Distribution channel: A1
Division: A1
Material: SUPER-##
Base Material: REGULAR-##
8-1-4 To assign differential fees to the sales contract, select the line item and
choose Fees.
Enter PDFA.
The system determines the differential fee rate using a formula. You can
view this formula by choosing the button immediately to the left of PDFA
(magnifying glass with '
+').
Back out (F3) of the formula screen and save the contract. Make a note of
the document number.

8-1-5 To create a purchase contract:
agreements → Change exchange agreements
Enter exchange agreement number from step 8-1-2.
Select the Purchase Contracts tab, then choose Create Contract.
Agreement type: MK
Agreement date: (Today's date)
Purch. organization: APUR
Plant: AP02
Material: SUPER-##
8-1-6 To assign product differential fees to the purchase contract item, select the
line item and choose Fees.
Enter PDFA.
8-2
8-2-1 To create the sales call-off:
deliveries → Sales call-off → Create sales call-off
Order type: OR
It is important to choose Create with reference.
Select the contract tab on the Create with reference (F8) dialog box. Enter
the contract number from exercise 8-1-2 and choose Copy.
(Note: You can find the contract by selecting 'Sales itm.per Exchange
(Partner/Sorg/ExgT/ExgNo/Mat./Plnt.)' in the search help. Enter exchange
number from exercise 8-1-2.
Select the Ship-To party CUST03-## from the selection window.
Enter call-off quantity (order quantity): 20000 GAL:
Familiarize yourself with the data in the overview screen, and save the call-
off (or choose Sales document → Deliver).

8-2-2 Create the delivery and the subsequent goods issue for the call-off:
deliveries → Delivery → Create
Selection date: (Today's date)
Typically, this data is defaulted by the system. Select Enter.
Select the Picking tab and enter the storage location: A1L1.
Choose Edit → Post goods issue
8-2-3 To review the accounting document for the goods issue,
Choose Outbound delivery → Display.
Then choose Environment → Document flow
Select the GD goods issue:delvy 4900000### line and choose Display
document.
Then choose Accounting docs…
What is the difference between this posting and the posting without using
base products?
In contrast to the accounting document from section 4-1-3, the system has
posted the value of the sub product (which is SUPER-##) to the Inventory
account, but the value of the base product (which is REGULAR-##) to the
Exg mat int rec account (which is the logical inventory account). This is
correct, as the base product is the product for which the system keeps the
exchange balance for this agreement.
As specified in the S/B prod.ind. field in the exchange agreement header, the
system took the base product price from the price reference plant for the
logical inventory posting.
You can find the respective table within the IMG under:
Industry Solution Oil&Gas (Downstream) → EXG (Exchanges) → Price
reference plants → Assign price reference plants (Table OIAMP)
8-2-4 To see which price reference plant is maintained for the base material,
choose:
Logistics → Materials management → Material master → Material →
Display → Display current
Enter base product REGULAR-## as the material, then choose Goto → Org.
levels, select Accounting view, and enter the plant AP01 which we used for
the goods issue here. On the following Display Material: Accounting
screen, you find the assigned price reference plant by choosing Price ref..
Please note that this price reference plant should always have stock at hand,
so that the system can always determine a price here. If necessary, you can
specify a sequence of price reference plants here through which the system
can go if one or more of the plants in this sequence do not contain any stock
for the base material.

Split Invoicing
Contents:
l Sales and Distribution
n Split billing overview
n Condition type
n Billing type
l Materials Management
n Split invoice verification overview
n Condition type
n Evaluated receipt settlement
l Netting
SAP AG 2001

Split Invoicing: Unit Objectives

l Describe the business reason for split billing, split
invoice verification and split netting
l Understand the system configuration for split
condition processing
SAP AG 2001

Course
Course overview
overview
Business
Business
Conclusion
Conclusion
background
background
Exchange
Exchange
Other
Other features
features
agreement
agreement setup
setup
Daily
Daily business
business
Exchange
Exchange reports
reports
flow
flow
Unit 09
Split
Split condition
condition
Logical
Logical inventory
inventory
processing
processing
Sub/base
Sub/base
Settlement
Settlement
relationship
relationship
Purchase
Purchase assignment
assignment
SAP AG 2001

Split Invoicing - SD Billing
Invoice
Taxes
ry
Delive ues
r odu ct val Invoice
P
Fees Fees
Taxes
Invoice
Product
values
Up to 9 invoice cycles
Assign invoice cycle to a condition type
Assign invoice cycles to billing type
SAP AG 2001
n Split invoicing can be used for both exchange and non-exchange deliveries.
n With sales split invoice processing, it is possible to create up to nine different invoices for one
exchange delivery, for example for
a tax invoice
an invoice for the related fees
an invoice for the product values for buy/sell exchange deliveries.

Condition Type Configuration
Contract
Contract
Customizing
Invoice cycle product
1 1 PR00 Product
Invoice cycle fees 2 2 LOCN Fees
Invoice cycle taxes 33 33 EFET Tax
Call-Off
Call-Off
1 PR00 Product
2 LOCN Fees
33 EFET Tax
SAP AG 2001
n In customizing, you assign invoice cycles to each condition type.

n The system will copy the invoice cycles to the related documents, and to the invoice.

Billing Type Assignment
Delivery
- PR00 11
- LOCN 22
- EFET 33
Invoice cycles 1 2 3 4 5 6 7 8 9
Bill Type OINF x x Product &

fees
Bill Type OINT x x x x x x x Taxes
Summary: x x x x x x x x x
SAP AG 2001
n For each billing type, you specify which invoice cycles the system should process during billing.
n You assign these invoice cycles to the billing types in customizing.
n For each delivery, the system keeps track of the invoice cycles which have been processed.
n The invoicing is complete when the system has processed all nine invoice cycles.

Split Invoicing - MM Invoice Verification
Invoice
Product
rder
ur chase o lue
P ct va
Produ
Invoice
Fees
Fees
e tax
Excis Invoice
Excise
Tax
• Up to 9 invoice cycles
• Assign invoice cycle to a condition type
• Set split invoice indicator on tax condition types
• Assign invoice cycles to invoice verification filter type
SAP AG 2001
n Split invoicing for MM invoice verification can also be used to process both exchange and non-
exchange receipts.
n With split invoice processing, it is possible to create up to nine different invoices for one exchange
receipt, for example for
a tax invoice
an invoice for the related fees
an invoice for the product values of buy/sell exchange receipts

Split IV Setting
FI Documents
Purchase Order
Condition types Product PB00

Split IV
Product 11 PB00
Tax 33 EFET x
(del cost) Tax EFET
(del cost)
Fees 22 x
LOCN
Fees LOCN
SAP AG 2001
n Tax condition types are marked as split conditions by setting the Split IV indicator.
n The system copies the Split IV indicator into the related documents where it can still be changed.
n Fee and tax condition types have an invoice cycle assigned to them.

Invoice Filter Type Assignment
Basic filter invoice Optional invoice

Invoice filter types verification cycle filter
SAP AG 2001
n For each invoice filter type, you specify which invoice cycles the system should process during
invoice verification.
n You assign the invoice cycles to the invoice filter types in customizing.

Logistics Invoice Verification Online
Single screen transaction
Selection of
configured invoice
filter types
Optional selection
by exchange no.
Access to fee
condition details
SAP AG 2001
n You can also process invoice verification individually.

n Each invoice is processed manually online by selecting an invoice filter type.

Logistics Invoice Verification Background
Invoice amount &

item references are
entered online
Verification is
processed in
background
(RMBABG00)
Unmatched
invoices can be
resolved manually
from work list
SAP AG 2001
n One method of processing invoice verification is to process in background mode. In this process,
only the invoice amount and item references are entered online.
n Invoice verification is processed in the background.
n Users then only have to process invoices which they were unable to post the background processing.
n This method is much faster than the process whereby the processor must enter both the debit and
credit amounts on two screens and ensure they balance before posting. With background processing,
the system is able to post all invoices which balance.

Evaluated Receipt Settlement (ERS) with the
Logistics Invoice Verification
Goods
Goods receipt Goods Additional select options
receipt receipt
• Exchange number
• Exchange items only?
• Invoice filter type (FEE, MAT, TAX)
• Invoice posting date
ERS selection
Invoice generation
• Post invoice for receipts
• Post credit memo for reversals
Invoice • Inclusive product values
Receipt • Incl. split excise taxes as delivery costs
• Inclusive exchange fees
SAP AG 2001
n In the evaluated receipt settlement (ERS), you enter various selection criteria.
n Invoice filter types are also specified. This controls which condition types are processed during
invoice verification. Invoice filter types are maintained in customizing.

Split Invoicing - Netting
Sales order Purchase order

Product value 11 Product value 11
Fees 22 Fees 22
Excise tax 33 Excise tax 33
Bill. type B Inv. filter B

Bill. type A 33 Inv. filter A 33
11 22 11 22
11 Product & fee 11 Product & fee

22 invoice 22 invoice
11 Netting -
22 Product & fees
33 Tax invoice 33 Tax invoice
33 Netting -
Taxes
SAP AG 2001
n Once invoice cycles have been used to post separate accounting documents for product, fees and
taxes, it is then possible to create separate netting documents as well.
n In the same way as for billing types and invoice verification filters, you assign an invoice cycle
number(s) to the netting document type.
n The system then clears only the selected conditions in the split netting process.

Split Invoice Processing - Exercise
l Split billing
l Split invoice verification
l Split netting
SAP AG 2001

Split Invoicing: Unit Summary
l Describe the business reason for split billing,

split invoice verification and split netting
l Understand the system configuration for split
condition processing
SAP AG 2001

Exercises
Unit: Split Condition Processing

Topic: Split settlement of exchange transactions

• Split conditions during billing and invoice verification
• Carry out netting separately for various kind of conditions
• Understand where and how to configure the split process
AOIL carries out netting separately: for taxes twice a month, and for fees
and material prices once at the end of the month. As a preparation, AOIL
produces separate invoices and invoice verifications, which are then
processed in netting.
9-1 To make sure that the system is configured correctly for splitting conditions during
billing, review the condition data in the sales contract.
9-1-1 Review the sales contract.
Contract: (Number from 8-1-4)
Which invoice cycles are assigned to the following condition types?
DRC0 (gross price) ____________________________________
QDRM (metropol. ind) ____________________________________
EFET (federal excise tax) ____________________________________
PDFA (differential fee) ____________________________________
Where do you specify the default invoice cycles for the conditions?
____________________________________________________________
____________________________________________________________
9-1-2 Which invoice cycles are billed by the system when the following billing
types are used:
OIFT (invoice - taxes) _________________________________________
OIFF (invoice fees & material) ___________________________________

9-2 At the end of the month, you use split invoicing to produce separate invoices for
taxes, and fees and material prices. The invoices will then be netted separately in a
later step.
9-2-1 Process the billing due list for taxes
Billing data:
Billing type F2
Options tab –
Exchange data:
Exchange number: (Number from 8-1-1)
Default data:
Billing type: OIFT (invoice - taxes)
Main selection tab - Documents to be selected
Delivery related:
Make a note of the billing document number
____________________________________________________________
9-2-2 Review the invoice. Check the fee details and the pricing data, and
determine the conditions which are processed by the billing type OIFT.
____________________________________________________________
9-2-3 Process the billing due list for fees and material costs:
Billing data
Billing type F2
Main selection tab
Documents to be selected:
Delivery-related:
Options tab
Exchange data:
Default data:
Billing type: OIFF (invoice fees, and mat.)
Make a note of the billing document number
____________________________________________________________
9-2-4 Review the invoice. Check the fee details and the pricing data, and
determine the conditions which are processed by the billing type OIFF.
____________________________________________________________
____________________________________________________________

9-3 Within the subsequent receipt processing phase, you make sure that the system is
configured correctly for splitting conditions during invoice verification.
9-3-1 Create a purchase order with reference to the purchase contract from
exercise 8-1-6.
Purchase order type: Standard PO
Quantity: 10000 GAL
9-3-2 Check that the Split IV flag is set in the item details (that is necessary when
you want to use split invoice verification). Where in the system do you
define the default setting for the flag (that is, set or not set)?
____________________________________________________________
____________________________________________________________
9-3-3 In pricing, check which condition is flagged as a split condition.
____________________________________________________________
____________________________________________________________
9-3-4 Create a goods receipt for the purchase order from 9-3-3.
____________________________________________________________
9-4 You are now going to bill the created goods receipt. As you have agreed with your
partner to do netting, you do not receive any invoice from your partner at this point.
You will therefore use ERS (evaluated receipt settlement) to create the related
accounting documents.
9-4-1 Process ERS for fees and prices.
Exchange agreement number: (Number from 8-1-1, do not leave
blank)
Invoice filter: FEE
Test: run (blank)
9-4-2 Which conditions have been processed during the ERS run?
____________________________________________________________
9-4-3 Process ERS for taxes.
blank)
Invoice filter: TAX
Test run (blank)
9-4-4 Which conditions have been processed during the ERS run?
____________________________________________________________

9-5 Now that the financial documents are prepared, you carry out netting separately for
taxes, and fees and material prices.
9-5-1 Carry out netting for taxes.
Netting document type: OINT (Movm.netting - taxes)
Currency: USD
From exchange number: (Number from 8-1-1)
Select Netting proposal and examine all items.
Go back to the Selection Criteria screen and save the netting document
(including the BTCI session). Make a note of the document number.
____________________________________________________________
9-5-2 Display the exchange statement summary (output type: NTS1, printer P131)
on the screen. What kind of conditions are included in the netting
document?
____________________________________________________________
____________________________________________________________
9-5-3 Carry out netting for fees and other costs.
Netting document type: OINF (Movm. Netting - Fees)
Currency: USD
Go back to the selection criteria screen and save the netting document (and
create BTCI). Make a note of the document number.
____________________________________________________________
9-5-4 Display the exchange statement summary (output type: NTS1, printer P131)
on the screen. What kind of conditions are included in this netting
document?
____________________________________________________________
____________________________________________________________
9-5-5 What options do you have to adjust the exchange statement to your
requirements?
____________________________________________________________
____________________________________________________________
____________________________________________________________

Solutions
Unit: Split Condition Processing

Topic: Split settlement of exchange transactions
9-1-1 To review the sales contract, choose:

Logistics → Exchanges → Exchange operations → Exchange deliveries
→ Contract → Display contract
Contract: (Number from 8-1-4)
Select the item, then choose Goto → Item → Conditions (or just choose
Item conditions) to enter the list of pricing conditions.
For each condition, you find the assigned invoice cycle on the Condition
detail screen, which you can enter by double-clicking on the specific
condition. The result should be the following:
DRC0 (Gross Price): 9
QDRM (Metropol. ind): 9
EFET (Federal excise tax): 2
For the fee condition PDFA, go back to the Display Qty contract: ...
Overview screen, select the item and choose Fee detail to go to the Fee
overview screen. Here you enter the condition detail screen by double-
clicking PDFA. The assigned invoice cycle should be:
PDFA (Differential fee): 1
You specify the default invoice cycles for the conditions in the condition
type view in Customizing:
Choose Industry Solution Oil & Gas (Downstream) → EXG → Split
Invoicing/Split Netting → SD Split Invoicing → Maintain sales price
conditions
On the Conditions: Condition Types screen, select the specific condition
type (such as EFET) and choose Goto → Details. In the Control data 1
section, you find the invoice cycle default.

9-1-2 In Customizing, you can specify for each billing type which invoice cycles
the system processes during billing:
Choose Industry Solution Oil & Gas (Downstream) → EXG → Split
Invoicing/Split Netting → SD Split Invoicing → Maintain billing and
netting document types
On the Billing: Document Types Overview screen, double-click on the
specific billing type (such as OINF). In the Split invoicing indicator section
(on the bottom of the screen), you should find the following:
OIFT (taxes.): 2_3_4_5_6_7_8
OIFF (fees&mat.): 1_9
According to this setup, you can see that the system will process the federal
excise tax condition EFET with billing type OIFT and the other conditions
with billing type OIFF.
9-2-1 To process the billing due list for taxes, choose:
Logistics → Exchanges → Exchange operations → Exchange
deliveries→ Billing → Billing due list
Enter the following data for the item selection (ensure you enter the billing
type OIFT in the correct section Default data on the Options tab):
Billing data
Billing data from: (blank) to: (Today's date)
Billing type: F2 to: (blank)
SD document: (blank)
Main selection tab
Documents to be selected:
Delivery related:
Options tab
Exchange data:
Mark the exchange items box.
Default data:
Billing type: OIFT (invoice - taxes)
Choose Billing document → Display billing list to display the list of items
that are included in this billing process. Choose Billing document → Save
to process the items. Make a note of the billing document number

9-2-2 To review the invoice, choose:
Logistics → Exchanges → Exchange operations → Exchange delivery →
Billing → Display billing document.
Enter the billing document number from 9-2-1, then choose Billing items.
Select the item and choose Item Pricing condtn or select the item and
choose Goto → Item → Item conditions to enter the Pricing screen.
EFET is the only condition that the system has processed in the billing due
list. This is because condition type EFET is assigned to invoice cycle 2 and,
therefore, processed by billing type OIFT (cycles 2-8).
9-2-3 To process billing due list for fees and material costs, proceed as described
in section 9-2-1, but this time using a different billing type:
Billing document data
Billing type: OIFF (invoice - fees, and mat.)
9-2-4 To review invoice, proceed as described in section 9-2-2. Check the tab-
strips Conditions and Fees. Fee conditions PDFA and QDRM are the only
conditions which the system has processed in the billing due list. This is
because these condition types are assigned invoice cycles 1 and 9
respectively and, therefore, processed by billing type OIFF (cycles 1 and 9).
9-3-1 To create the purchase order, choose:
Choose Standard PO.
contract number from 8-1-4. If you do not know the number, you can use
the F4-Help to search for the reference contract: Use search help O: Purch.
item per exchange and enter your exchange number from 8-1-2. Be sure the
Purch. doc. category is “K” for contract. Choose Enter.
Another possibility to create the reference to the contract is to have the
Document overview on on the left side of the screen, display valid contracts
using the selection variant, and choose the drag and drop function to move
the contract number into the shopping basket (field left of standard PO on
the upper left of the screen).
Quantity 10000 GAL
9-3-2 You find the Split IV flag on the item details view on the lower part of the
screen: Choose the Invoice tab. This flag must be set if you want to use split
The flag is defaulted from the vendor master.

9-3-3 Choose the Conditions tab on the Item details view of the Create Purchase
Order screen, then select condition EFET and choose Condition details
(magnifying glass) to go to the Condition detail screen. In the Control data
section, you find the flag Split IV. This flag must be set for each condition
that you want to split from the material price and the fee conditions during
In this scenario, only the federal excise tax condition EFET should be
flagged as split condition.
9-3-4 To create the goods receipt, choose:
Goods receipt → Create/display goods receipt (MIGO)
In the first two field select Goods receipt and Purchase Order, in the third
one enter the number of the purchase order from 9-3-3 (you can use the
search help ‘O’, if you do not remember the number).
Press Enter and check the defaulted data.
Flag the Item OK box on the bottom of the screen. Save the goods receipt
(or choose Post).
9-4-1 To process ERS for fees and prices, choose
Logistics → Exchanges → Exchange operations → Exchange receipts →
Logistics Invoice verification→ Execute ERS
Enter the following data for the item selection.
Exchange agreement number: (Number from 8-1-1,do not leave blank)
Invoice filter: FEE
Posting date invoice: (Today's date)
Test run (blank)
Stay on the ERS screen.
9-4-2 When selecting the invoice document (click on the number), you can see
that only one item for exchange fees (condition PDFA) exists (on the item
view on the lower part of the screen). You can also check the several header
data tabs and, by choosing follow-on documents, have a look at the
accounting.
9-4-3 To process ERS for taxes, proceed as in 9-4-1, but this time using the
following selection:
blank)
Invoice filter: TAX
Posting date invoice: (Today's date)
Test run: (blank)
9-4-4 Like in 9-4-2, you see that the system has processed only federal excise tax
condition EFET in this ERS run.

9-5-1 To perform Netting for taxes, choose:
Logistics → Exchanges → Exchange operations → Netting →
Movements based netting → Create netting documents
Netting document type: OINT (Movm.Netting - Taxes)
Currency: USD
You can see the assigned invoice cycles 2-8 for netting document type
OINT.
Go back and choose Save and create BTCI.
9-5-2 To display the exchange statement summary, choose Netting document →
Display.
Enter the netting document from 9-5-1 and choose Netting document →
Issue output to → Screen.
Enter output type NTS1 and choose Execute, change the printer name to
P131 and confirm the printing information by choosing Execute again.
Repeat steps 9-5-2 using output type NTD1 to see the detail report.
Only taxes (federal excise tax) are listed.
9-5-3 To perform Netting for fees and other costs, proceed as described in section
9-5-1, this time with the following selection data:
Netting document type: OINF (Movm. Netting - Fees)
Currency: USD
You can see the assigned invoice cycles 1 and 9 for netting document type
OINF.
9-5-4 To display the exchange statement summary (output type NTS1) on the
screen, proceed as described in section 9-5-2. This time, only the fees and
the Metropolitan indicator are included in this netting document.

9-5-5 To adjust the exchange statement to your requirements, you can restrict
document selections based on:
• Exchange number
• Exchange type
• Material group
• Material number
• Base product number
• Plant
• Data range
Additionally, indicators are available to select:
LIA incl. ind.: Set this indicator if you want LIAs (logical inventory
adjustments) to be included in the netting request.
PFA incl. ind.: Set this indicator if you want PFAs (pure financial
adjustments) to be included in netting.
Movmnt.w/o financials: Set this indicator if you want movements
without financials (FI postings) to be included in movements-based
netting. That means, if a movement took place in the requested period,
but the financials are not yet posted, the movement nevertheless will be
included in the movements-based netting document.
Balance indicator: Set this indicator to report balances for base
products which had no movements for the period.

Exchange Reports
Contents:
l Exchange balance report

l Exchange abstract report
l Other exchange reports
SAP AG 2001

Exchange Reports: Unit Objectives
l Generate an exchange balance report

l Produce an exchange abstract report
l Understand the uses of various other exchange
reports
SAP AG 2001

Course
Course overview
overview
Business
Business
Conclusion
Conclusion
background
background
Exchange
Exchange
Other
Other features
features
agreement
agreement setup
setup
Unit 10
Daily
Daily business
business
Exchange
Exchange reports
reports
flow
flow
Split
Split condition
condition
Logical
Logical inventory
inventory
processing
processing
Sub/base
Sub/base
Settlement
Settlement
relationship
relationship
Purchase
Purchase assignment
assignment
SAP AG 2001

Exchange Reports - Exchange Balance
Exchange Balance Report Time: 15:54:35 Date: 21.03.1999
Characteristics
Characteristics Deliveries
Deliveries Exg.
Exg. Receipt
Receipt Bal(Lifts-Recs)
Bal(Lifts-Recs)
******
****** Exg.
Exg. Partner
Partner 12,000.00
12,000.00 L15
L15 11,000.00
11,000.00 L15
L15 1000.00
1000.00 L15
L15
***** Vendor01 12,000.00 L15 11,000.00 L15 1000.00 L15
**** 35 12,000.00 L15 11,000.00 L15 1000.00 L15
*** Base prod 01 2,000.00 L15 2000.00 L15

** Plant GP01 2,000.00 L15 2000.00 L15
* Regular95 2,000.00 L15 2000.00 L15
02.1999 500.00 L15 500.00 L15
Updated
Updated at:
at: Deliveries
Deliveries Receipts
Receipts Exchange
Exchange balance
balance
SAP AG 2001
n The user is able to report total deliveries, receipts and balances against exchange agreements and to
summarize this information by material, exchange type, exchange partner, exchange number and
location.
n This functionality is used mainly across pure exchange types where it enables the user to track the
logical inventory balance in real-time and on-line.
n All material movements and LIA transactions which are assigned to an exchange agreement and
correspond to the selection criteria can be listed. The list is sorted according to:
- Exchange partner
- Number of the exchange agreement
- Material
- Plant
- Month
n The total amount of material movements and LIA transactions is displayed for each level; the lifts
and receipts are listed in two separate columns and the difference between the two is listed in an
additional column.
n The system only updates the exchange balance when the goods receipts / goods issues are exchange-
related.

Exchange Reports - Exchange Abstract
Exchange
agreements
Contract
Purchase fees
Sales
contracts contracts
Abstract
Abstract
Exchange header
Sales contract
Purchase contract Repricing
contract fees
Contract display
SAP AG 2001
n The exchange abstract is a report of all the pertinent information about the exchange agreement
header and related sales and purchase contracts.
n A fee pricing date can be specified in the selection screen. All fees displayed in the report are only
those which are effective on the date entered for fee pricing.
n Functionality is provided, allowing the user to reprice contract fees to a new fee repricing date.

Exchange Reports - Other Reports
Other reports
l Customer balance
l Vendor balance
l Exchange transactions
l Exchange entitlements
l Exchange movements
SAP AG 2001
n Exchange functionality within R/3 provides a number of useful reports.

The customer balance report provides direct access to the exchange customer account balance in
FI.
The vendor balance report provides direct access to the exchange vendor account balance in FI.
Exchange transactions and exchange movements reports allow 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 a product is defined as the open quantity against an
exchange nomination. For example, the open purchase call-off 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.

Exchange Reports: Unit Summary
l Generate an exchange balance report

l Produce an exchange abstract report
l Understand the uses of various other exchange
reports
SAP AG 2001

Other Features
Contents:
l Logical inventory revaluation overview
l Bill of material
l Archive of exchange data
SAP AG 2001

Other Features: Unit Objectives
l Perform revaluation of logical inventory

l Understand revaluation accounting entries
l Understand the impact of BOM on exchange
transactions
l Understand key configuration for BOM
l Describe the business need for archive of
exchange balances
SAP AG 2001

Course
Course overview
overview
Business
Business
Conclusion
Conclusion
background
background
Unit 11
Exchange
Exchange
Other
Other features
features
agreement
agreement setup
setup
Daily
Daily business
business
Exchange
Exchange reports
reports
flow
flow
Split
Split condition
condition
Logical
Logical inventory
inventory
processing
processing
Sub/base
Sub/base
Settlement
Settlement
relationship
relationship
Purchase
Purchase assignment
assignment
SAP AG 2001

Logical Inventory Revaluation (I)
OIA07
Transaction physical inv. Qty Value M.A.P.

value
1) Goods issue = 1,000L $1.05/L 1,000L $1,050 $1.05/L
2) Return = 500L $1.06/L 500L $ 520 $1.04/L
LIA
3) Book rec. = 200L n/a 300L $ 312 $1.04/L
4) Goods issue = 2,500L $1.10/L 2,800L $3,062 $1.0936/L
SAP AG 2001
n The system tracks the moving average price of the logical inventory balances at the company, plant
and product level.
n This strategy is illustrated above and ensures that the integrity between the logical inventory quantity
balance and the logical inventory financial balance in the system is always maintained. In other
words, if all of the quantity balance were cleared, then the financial value held in the system would
be zero.
n This strategy ensures that IS-Oil can handle both standard priced and moving average priced
physical inventory valuation strategies.

Logical Inventory Revaluation (II)
OIA07 General
General Ledger
Ledger
Qty Value M.A.P.
2,800L $3,062 $1.0936
CR: Logical inventory $262

DR: Revaluation $262
gain/loss
MR21
$1.00
OIA07
Qty Value M.A.P.
2,800L $2,800 $1.0000
SAP AG 2001
n IS-Oil functionality incorporates an enhanced price change transaction, which can be invoked as
required, in order to post a new inventory carrying price for logical inventory within a particular
plant.
n The effect of posting a revaluation of logical inventory is illustrated above. The logical inventory
carrying price is changed from 1.0936 USD/L to 1.0 USD/L. 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.
n In this case the difference is:
(Old price X Quantity) - (New price X quantity) = $3,062 - $2,800 = $262.
n This difference is recorded as a loss during the revaluation process.

Bill of Material (I)
Exchange
BOM Material - fees, exg data, QS BOM header
sales contract
BOM component
BOM Material - fees, exg data, QS
Call off
Component 1
order
Component 2
BOM Material - Fees, exg data Update logical

Delivery inventory
Component 1
(OIA07, S036)
Component 2
Goods Component 1 - exg data

Update physical
issue Component 2 - exg data inventory
(MBEW)
Invoice BOM material - fees, exg data
SAP AG 2001
n Exchange functionality integrates with bill of material functionality in the SAP System.
n In the exchange related sales contract in the above diagram, the BoM header material is recorded.
n During the call-off, the BoM splits into its component parts. At goods issue, you notice the logical
inventory is updated with the header material while the physical inventory is updated with the
components. For example, when delivering 100 gallons of a mid-grade gasoline which comprises of
60% regular and 40% super, the exchange balance is updated with a delivery of 100 gallons of mid-
grade, while physical inventory for regular and super are reduced by 60 gallons and 40 gallons
respectively.

Bill of Material (II)
Configuration
l Definition of sales item category as Oil BOM

Invoice for BOM header
Goods issue for components
l Assignment of sales item categories

BOM header BOM component item category
SD Master Data BOM
l Maintain BOM structure for header material

Assign all components
SAP AG 2001
n BOM functionality requires a special item category to define as an Oil BOM.

n Additionally, the BOM structure must be maintained for the header material to which all component
materials are assigned.

Archive Exchange Balance
S036
Data
Archive management
(SARA)
Archive
Object
MC_S036 Delete
Reload
Archive S036 Exchange

balance
Data sum record
SAP AG 2001
n Exchange functionality incorporates an archiving strategy to efficiently manage exchange data. The
number of exchange movements within S036 continues to grow over time.
n After a period of time, it may be prudent to archive a portion of the exchange data.
n Functionality is available to archive a portion of the exchange history and substitute an exchange
balance summary record in its place.
n If necessary, archived records can be reloaded into the system at any time.

Other Features - Exercise
l Revalue logical inventory
SAP AG 2001

Other Features: Unit Summary

l Perform revaluation of logical inventory
l Understand revaluation accounting entries
l Understand the impact of BOM on exchange
transactions
l Understand key configuration for BOM
l Describe the business need for archive of
exchange balances
SAP AG 2001
© SAP AG IOG320 11-10

Exercises
Unit: Other Features

Topic: Material Revaluation

• Revalue the base product at the price reference plant.
• Understand the impact of base product revaluation on subsequent
exchange related goods movements.
In order to adjust the inventory value to the current market price, AOIL
revalues both the physical and the logical inventory.
11-1 Due to changed market prices, you will have to revalue the inventory for
REGULAR-##.
11-1-1 In the accounting view of the material master, check the moving average
price of the base material that you used in unit 8.
Plant: AP04
Check that this is the price that the system used for the goods issue posting in
8-2-2.
11-1-2 Adjust the value of both the physical and the logical inventory to the stock
market price.
Plant: AP04
New price: 0,54 USD / 1 KG
CIP: 2 (Revalue logical inventory using new phys.
inventory price)
© SAP AG IOG320 11-11

11-1-3 Post another delivery for the sales contract from exercise 8-1-4.
Call-off data:
Order type: OR
Quantity: 10 000 GAL
Delivery data:
Post the goods issue and make a note of the delivery document number.
____________________________________________________________
11-1-4 Check the price for the goods issue postings. Which price did the system use
for the “internal receivables” posting in the accounting document?
____________________________________________________________
© SAP AG IOG320 11-12

Solutions
Unit: Other Features

Topic: Material revaluation
11-1-1 To check the moving average price of the base material that you have used in
unit 8, choose:
Logistics → Materials management → Material master → Material →
Display → Display current
Enter Material REGULAR-##, select Accounting, then enter Plant AP04.
In the field Price control, the value V indicates that the system uses moving
average price valuation for this material in plant AP04. In the field
Mov.avg.price, you can see the current material price, which should be the
same as the system used for the goods issue posting in 8-2-2.
11-1-2 To adjust the value of the physical and the logical inventory to the stock
market price, choose:
Logistics → Exchanges → Exchange operations → Logical inventory
adjustments → Revaluation of logical inventory
Enter:
Company code: AOIL
Plant: AP04
Choose Enter. On the following Price change – Overview screen, enter:
New price: 0,54 USD / 1 KG
CIP: 2 (Revalue logical inventory using new phys.
inventory price)
Choose Price change → Save to post the new price.
© SAP AG IOG320 11-13

11-1-3 Create an exchange sales order.
deliveries → Sales call-off → Create sales call-off
Order type: OR
Choose Create with ref.
Select the Contract tab and enter the contract number from 8-1-4.
Select Ship-to party: CUST03-##. Acknowledge any warnings.
Quantity: 10 000 GAL
Save the call-off or go directly to Sales Document → Deliver, otherwise.
Create the delivery:
deliveries → Delivery → Create delivery
Selection date: (Today's date)
Order: (Order number created above)
Choose Enter.
Select the Picking tab and enter:
Storage location: A1L1 (should be defaulted)
Choose Edit → Post goods issue or choose Post goods issue.
11-1-4 To check the price for the goods issue postings, choose Outbound delivery
→ Display.
Then choose Environment → Document flow.
Select the GD goods issue: delvy 4900000### line and choose Display
document.
Then choose Accounting docs....Compared to the goods issue from exercise
8-2-2 the system used the new price.
You can also check the change of the physical and logical inventory value by
selecting transaction MR21 (Price Change) and selecting Display document.
Review the two items (PC – Price Change, OC – Revaluation of Logical
Inventory) and the accounting documents.
© SAP AG IOG320 11-14

Conclusion
CourseOverview
CourseOverview
Unit 12 Business
Conclusion Business
Conclusion
Background
Background
Exchange
Exchange
Other
Other Features
Features
Agreement
Agreement Setup
Setup
Daily
Daily Business
Business
Exchange
Exchange Reports
Reports
Flow
Flow
Split
Split Condition
Condition
Logical
Logical Inventory
Inventory
Processing
Processing
Sub/Base
Sub/Base
Settlement
Settlement
Relationship
Relationship
Purchase
Purchase Assignment
Assignment
SAP AG 2001

Course Objectives
l Describe exchange business scenarios.

l Define the benefits of Exchange Agreements.
l Perform R/3 transactions which support typical
exchange business processes.
l Setup configuration for different types of exchange
business processes.
SAP AG 2001

Recommended Follow-up Activities
l Read on-line documentation

l Read IMG documentation
l Read release notes
l Obtain/Review Knowledge Product CD
SAP AG 2001

Iog320 en 46C

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Iog320 en 46C

Uploaded by

Copyright:

Available Formats

IOG320 SAP Oil & Gas Exchange Business

SAP Oil & Gas

© SAP AG IOG320 Preface-1

Copyright 2001 SAP AG. All rights reserved.

All rights reserved.

© SAP AG IOG320 Preface-2

LO020 4 days LO515 3 days

IOG130 3 days IOG330 3 days

© SAP AG IOG320 Preface-3

© SAP AG IOG320 Preface-4

Notes to the user

© SAP AG IOG320 Preface-5

© SAP AG IOG320 1-1

This course will allow you to:

l Deepen your understanding of exchange

© SAP AG IOG320 1-2

At the conclusion of this course, you will be able to:

l Describe exchange business scenarios.

© SAP AG IOG320 1-3

Unit 1 Course Overview Unit 7 Purchase Assignment

Unit 2 Business Background Unit 8 Sub/Base Relationship

Unit 3 Exchange Agreement Setup Unit 9 Split Condition Processing

Unit 4 Daily Business Flow Unit 10 Exchange Reports

Unit 5 Logical Inventory Unit 11 Other Features

Unit 6 Settlement Unit 12 Conclusion

© SAP AG IOG320 1-4

© SAP AG IOG320 1-5

© SAP AG IOG320 2-1

At the conclusion of this unit, you will be able to:

l Describe the business reasons for exchange

© SAP AG IOG320 2-2

© SAP AG IOG320 2-3

l To expand into marketing areas where a company does

n There are many reasons for entering into an exchange agreement.

© SAP AG IOG320 2-4

© SAP AG IOG320 2-5

You are now able to:

l Describe the business reasons for exchange

© SAP AG IOG320 2-6

l Exchange Agreement Overview

© SAP AG IOG320 3-1

At the conclusion of this unit, you will be able to:

l Create an Exchange Agreement Header

© SAP AG IOG320 3-2

© SAP AG IOG320 3-3

© SAP AG IOG320 3-4

(vendor master) Linked (customer master)

© SAP AG IOG320 3-5

© SAP AG IOG320 3-6

Evergreen is a long-term exchange

© SAP AG IOG320 3-7

© SAP AG IOG320 3-8

Contract item Quantity schedule

Exchange Period 1 1000 L

n In contrast to unlimited evergreens, regular evergreen contracts contain a quantity schedule.

© SAP AG IOG320 3-9

l Cross reference customer and vendor master

© SAP AG IOG320 3-10

You are now able to:

l Create an Exchange Agreement Header

© SAP AG IOG320 3-11

At the conclusion of this exercise, you will be able to:

AOIL uses exchange agreements with an oil industry partner in order to