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Created on August 08, 2014

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Table of content

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Table of content1 SAP Oil & Gas (IS-Oil Downstream)1.1 Integration of SAP Oil & Gas with SAP CRM1.2 Cross-Application Components1.3 HPM - Hydrocarbon Product Management1.4 TDP Tariffs, Duties and Permits1.5 EXG - Exchanges1.6 TD - Transportation and Distribution1.7 MAP Marketing Accounting and Pricing1.8 MCOE - Marketing Contracts and Order Entry1.9 MRN - Marketing Retail Network1.10 BDRP - Bulk Distribution Requirements Planning

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SAP Oil & Gas (IS-Oil Downstream)

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Integration of SAP Oil & Gas with SAP CRM

PurposeThis component allows you to use certain industry-specific functions for the oil industry consistently in SAP Customer Relationship Management (CRM) andSAP Oil & Gas (as the back-end system). It also ensures the integration of excise tax handling for quantity contracts and sales orders.

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

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

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1.2 Cross-Application Components !--a11y-->

1.3 HPM - Hydrocarbon Product Management

PurposeThe component encompasses:

The Silo Management System, which provides functionality for managing physical inventories in tanks by creating tank dips in the R/3 System, andcomparing those inventories at any time with the book stocks. In that way, gains and losses can always be determined, and goods movements can bemonitored.A flexible Quantity Conversion Interface (QCI) that converts volumes, masses and energy at ambient conditions (temperature, pressure, vapor pressure,

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calorific value, density) into volumes, masses and energy values at standard conditions. In addition, the Quantity Conversion Interface calculates densityand heating value at standard conditions.External programs for calculating complex oil volume correction factors (c-code routines of the American Petroleum Institute, customer-designed programs)and natural gas compression factors (c-code routines of the American Gas Association, customer-designed programs) can be integrated with the QCI.

The tracking of two-step plant-to-plant transfers, with a determination of profit and loss, and automatic posting of differences.An extension of inventory management and of the material documents, so that there are several units of measure. As part of that, several standardizedquantities can be entered in documents, and inventories for those units of measure can be updated.

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1.4 TDP Tariffs, Duties and Permits

PurposeThis component provides functionality for calculating and posting excise duty for dutiable goods. Excise duty is determined when a goods movement occurs, andis based on the quantity of material moved.This component covers:

Excise duty processing within the sales and purchase cycleExcise duty processing for inner-company goods movements (excise duty calculation for material that is moved between two plants with various tax rates).Excise duty for production ordersCalculation and posting of excise duty liabilities and claims for goods movements of dutiable material.The use of several excise duty rates for a materialThe revaluation of inventories after excise duty rate changesLicenses for excise duty (ED) reductions and exemptionsSplit inventory management of the ED portion and the net price of a materialA data pool for creating reports

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1.5 EXG - Exchanges

PurposeThis component contains functions for managing exchange agreements between companies in the oil and gas industry - the exchange of products at variouslocations. To support the management of exchange business transactions, you can:

Create an exchange agreementCreate quantity schedules for planning and monitoring material quantitiesBalance differences in value of exchanged materials using feesSettle claims and liabilities against one another (netting)Exchange unlike products, and balance the logical inventory that results (logical inventory adjustment)Create exchange statements that reflect the current status of your exchange activities in a specific periodCreate additional evaluations with respect to your exchange activities (for example, creating a list of all goods receipts and goods issues within an exchangeagreement).

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1.6 TD - Transportation and Distribution

PurposeThe Transportation and Distribution (TD) application area covers the logistics activities related to:

Delivery of product from a delivering plant to a customerTransfer of product between two company-owned locationsReceipt of purchased product from a vendor

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

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A separate menu exists for the TD application area. You can access this menu by choosing Logistics Sales and Distribution Bulk transportation .

FeaturesThe following organizational units are used to support oil industry processes. These are also data retention levels in the system.Transportation Planning PointThe transportation planning point represents a group of employees responsible for planning transportation. A transportation planning point can cover one or manyshipping points. Transportation planning points are independent of the other organizational units in the Logistics module.Intransit Storage LocationYou use intransit storage locations to represent product which is being transported on a vehicle as part of a shipment. By defining intransit storage locations, youcan manage and control stock after it has left the loading plant and while intransit.During loading, the product is transferred from the loading plant to the intransit storage location. From that point on and until the product is delivery confirmed, thecontrol and ownership of the product remains with the delivering plant. Subsequent transactions in TD involving a shipment results in an update of the intransitstorage location. As a result, you can track product while intransit and account for gains or losses that occur between loading confirmation and deliveryconfirmation.You define intransit storage locations in Customizing for Industry Solution Oil&Gas (Downstream) by choosing TD (Transportation and Distribution) TD BulkShipment Intransit Stock . The definition of intransit storage locations is dependent on the plant and intransit posting group.Use of Intransit Storage Location in Sales CycleIn the standard document flow for sales in the Sales and Distribution (SD) module, stock movements take place with reference to a delivery through the generationof a goods issue document. In this case, the customer takes ownership of the stock as soon as it leaves the delivering plant, on execution of the goods issue.In order to track the stock at the point after leaving the delivering plant and prior to arrival at the customer, TD introduces the concept of the intransit storagelocation. In this case a transfer is used to move the stock from the delivering plant to the vehicle during load confirmation. The stock loaded on the vehicle thenexists in the intransit storage location. This can be shown through the Stock Overview report.Use of Intransit Storage Location in Purchasing CycleIn the standard Purchasing process for the Material Management (MM) module, a purchase order is created, after which a shipping notification can be created tocontrol the delivery of the goods. When the goods are received, a goods receipt is posted in the receiving plant.With TD, the goods receipt is posted in the intransit storage location which represents the stock of the vehicle that is loaded. The stock remains in the intransitstorage location until a transfer to the actual receiving plant is initiated during the delivery confirmation step.Fixed Intransit Storage Locations for ShipmentsYou can define how the system is to determine the intransit storage location for a shipment. For example, you can determine that the system is to use the locationentered in the delivery, reservation, or stock transfer order as the intransit storage location for the shipment.You do this in Customizing for Industry Solution Oil&Gas (Downstream) by choosing TD (Transportation and Distribution) TD Bulk Shipment IntransitStock Determine intransit storage location/cost centre and selecting the required indicator in the FixedSt.Loc (fixed in-transit store location) field. The followingselections can be made to determine the intransit storage location for a shipment:blank (allow different intransit storage locations):If you do not select an indicator, multiple intransit storage locations per material/plant are allowed. In this case, the shipment uses the intransit storage locationdefined in Customizing. However, in the case of load-relevant reservations or inbound deliveries the system uses the intransit storage location from the relevantdocument.1 (use loading storage location as intransit if possible):If you choose the 1 indicator, the system allows different storage locations but, whenever possible, uses the sending storage location at loading. During loading,the system uses the loading storage location as the intransit storage location. The system does not use the sending storage location in the case of rebrands or load-relevant reservations, because in those cases the intransit storage location is the receiving storage location of the reservation.This setting can only be used, if you select the Bypass Intransit Storage Location checkbox in Customizing for the Bulk Shipment Type. Without this setting inthe Bulk Shipment Type, the system determines the intransit storage location as if the fixed in-transit store location field was left blank (see above).X (use only intransit storage location from Customizing):When you select this indicator, the system uses the intransit storage location defined in Customizing for the intransit storage location/cost centre. Duringscheduling, the system checks to make sure that the storage location entered in the underlying document matches the one defined in Customizing.Intransit Plant

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When shipping large quantities of product over long distances such as in pipeline and marine shipments, it can be necessary to maintain a segregated overviewof the intransit stock. This can be done by representing the vehicle as a separate plant, known as an intransit plant. It is possible to allocate all vehicles to asingle intransit plant or, alternatively, to set up a separate intransit plant for each vehicle.The intransit plant can consist of multiple storage locations for product tracking purposes as it moves along its route.The allocation of the intransit plant is specified in the underlying documents that are assigned to the shipment.

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

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MAP Marketing Accounting and Pricing

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

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

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MCOE Marketing, Contracts, and Order Entry

PurposeThe Marketing, Contracts, and Order Entry component meets the requirements of the oil industry in the areas of fast order entry and contract processing.Customer order processing and contract processing have been enhanced with the following functions:

Automatic determination of organizational data Display and defaulting of items from the last order Determination of a sequence of up to five preferred delivery plants for the delivery of the goods Release of non-delivered quantities of a contract call-off Restrictions for deviations from the contract conditions Redetermination of the item type during order entry

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Features

Fast Order EntryIn this process the manual determination of data is minimized as much as possible by having the system automatically determine fields for the order. Forexample, the selection of a supply plant and storage location can be automatically determined and the sales area can be defaulted from the customer. The ship-toparty can be entered as the ordering party and the system automatically finds the appropriate sold-to party.In the system, you can access fast order entry by choosing IS-Oil on the Create Sales Order: Initial Screen. You can also set up the order type in Customizingto default to fast order entry.For fast order entry, you must enter the following data:

Sales order type Customer Material Order quantity Purchase order number (dependent on configuration)

The following default data is used for fast order entry:

Fast order entry: Origin of the default data:Partner function Default value can be defined in Customizing for the order typeSales organization Default value is copied from the customer masterDistribution channel Default value is copied from the customer masterDivision Default value is copied from the customer masterPlant Default value can be set up by using automatic plant determination or by copying it from

one of the following: Customer-material record, if one exists Customer master record (ship-to party) Material master record

Item Category Item category determinationContact person Default value is copied from the customer master record

Fields in the Call Off Order Restrictions screen box Contract restrictions are determined in the contractFields in the Excise duty screen Default values from the Excise duty screen can also be entered in the customer

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

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1.9 MRN - Marketing Retail Network

PurposeA company may carry out its business operations at a large number of different locations. Each of these business locations has its own story to tell in terms ofperformance and profitability. For oil companies, the business location is typically the service station, but may include depots and non-fuel sales outlets.This component provides functions for managing business locations such as service stations, depots and terminals. With these functions you can manage salesdata, data on vendors, dealers, supply contracts, plant maintenance, and so on.The system allows you to enter and integrate all relevant data on business locations, independent of the geographic location, in a virtual database. In this way,MRN supports a multitude of functions, from delivery planning to profitability analysis.

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1.10 BDRP - Bulk Distribution Requirements Planning

PurposeOne of the building blocks of effective supply chain management in the oil and gas industry is the accurate modeling of controls and constraints that affect thehandling of bulk materials.This application area contains the functions used to optimize planning in petroleum product distribution. It supports the active management of customer inventoryby a vendor inventory (VMI: vendor-managed inventory). The vendor can use it to pre-plan replenishment deliveries to a customer.

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